Marketing strategy of British Airways

1304 words (5 pages) Essay

14th Jul 2017 Marketing Reference this

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British Airways (BA), has a weakness in winning over customer loyalty, they lack in their marketing strategy. This weakness has to be address by the organisation. Despite the fact, its growth through globalisation and the increase in travellers needs, the marketing campaigns were ineffective in the growth of the company. British Airways has a great infrastructure but they need a boost in their marketing strategy to gain more customers and their loyalty.

The company needs a huge investment for their strategic management in the future which will lead for better growth for the company.  BA has to keep its goal aligned with the intensive of the growing market trends to match with the customers and the market demands. In comparison to Virgin Atlantic has attracted a huge amount of customer both nationally and internationally. Virgin Atlantic has gained its competitive advantages over British Airways. The main reason for this is because of their proactive attitude and keeping an eagle eye for the new marketing trends and global advertising which leads to an increase its advertisement effectiveness, worldwide. After analysing Virgin Atlantic strength, British Airways has to revised its marketing strategy and turn its weakness into strengths to gain competitive advantage.

There is a great opportunity for British Airways, has it got the official airline for the London Olympic, 2012. They won this position for the London Olympic, 2012 from Virgin Atlantic Airlines. Hence this move from British Airways might open new doors for opportunity worldwide. There might be a price battle in the market with B.A; companies like Legacy Carriers might keep its prices low during the games, with a low profit margin. Hence taking some part of the market share from British Airways.

Social And Environmental Responsibility

British Airways has been improving its standard on their environmental performance by reducing the impact of it’s on the local and global environment. Hence it is considered as their strengths. There are putting more emphasis on the aircraft noise and emissions around the airports and local area. They also focus on the severe effect of carbon dioxide and other environment effects.

In 2005, Sir Richard Branson has announced that he would be running his airline on cellulose ethanol plant fuel, which would be generating through plant waste. Hence, it will be called the Future Fuel for the planet. The importance about this fuel is an environment friendly product. ” (Cheap Flights News, Undated)

Bad Publicity

Bad publicity an always be a threat to an organisational brand image and its reputation. Both the airlines were charged with price fixing scandal over fuel, which lead to an ineffective decision by the management. Both the companies have faced bad publicity through an advertisement campaigning to 8 million customers, in regards to claiming the money back. (Telegraph.co.uk, 2008)

Both airlines’ pilot resulted positive in alcohol, where as British Airways has implemented on 6th November, 2007, they won’t be allowing passenger to carry surf boards in their plane, but Virgin Atlantic did vice versa (Personnel Today, 2007). It had a negative impact for British Airways; the surf community across the world has being criticizing on this decision made by British Airways. These decision may break BA’s creditability and brand image in the market, bring the company stake holder at risk. (Surfing Waves News, Undated)

Due to the meltdown of the economy in 2008 and high fuel prices has bought threats to the companies. Other concerns like high aviation tax, terrorism threats, health issues, etc are major concern for both the Airlines.

British Airways Emphasizing On Its Team

The mission statement of British Airways “To be the undisputed leader in world travel” their strategy mainly relies on good leadership which directs them to be an effective management, through good communication, team work and collaboration. British Airways has strength of 48,000 employees which include team player and service providers. Hence making it workforce its base for the success of the company.

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The back of the house, which is not seen in the front line like the catering department, cleaning services, maintenance, etc play a major part in the company success without which the company cannot run its day to day operations.

There is a vast communication and collaboration with different level of team in the company, starting from when the customer books it flight, accommodation, tour operator, etc. to make this chain of operation successful, they have to work with harmony of communication. This strategy gives them an opportunity to use the new innovative IT- communication systems, ensuring smooth operations. Information Management (IM) is the key for future success in the company. The company relies heavily on its IT, which has bought huge influence on its performance. (Britishairwaysjobs.com)

By using Corporate Communications, they mange the global reputation of the company, ensuring that all the parties are been well informed about the happening of the company, the responsibility of the company’s intranet is base on corporate communication. It keeps the update of the company’s latest news and policies. There are well connected via the company intranet despite being on air, road, etc. (Communitelligence Learning Academy, Undated)

In 2001 BA has introduced the Employee Self Service (ESS) project; allow its staff worldwide to manage their day-to-day administration over the web. (Computing, 2001) BA produces it weekly newspaper, magazines for its employee over the Corporate Communications. There have a strong IT operation, which is used to enhanced teamwork and communication channels like IP Telephony channel.

In 2005-2006, Cisco Systems and Prime Business Solution were responsible for setting up the new infrastructure for communication over 14,000 offices and airports. (Cisco, 2010) the key message is delivered to the customers through a robust advertisement, which acts as a powerful communication channel done by specialist communication agencies in more than 80 countries where BA operates. Hence highlighting the company’s marketing strategy.

British Airways Media is the sales arm for the communication channels offered by Britain’s premier airline brand. It is responsible for the production of High Life Magazine, First Life Magazines, etc. which are classified and distributed in the airplanes, lounges and different advertisement channels. (British Airways Media, Undated)

Considerations

After analysing the above marketing strategy, strengths and opportunities for British Airways, it can be seen that BA play a very important role in the travel and tourism industry. Which bring together a big work force in terms of services, product and brand image. BA achievement has been done through its communication channels which coordinate smoothly through all the different level of the company. Hence, Building teamwork and employee trust. As they say “A chain is as strong as its weakest link”. Working together towards a common goal contributes towards BA’s strategy, mission, reputation and growth.

In 2005, the operating profit for the company was £ 556 millions and in 2006, £ 695 million, this is the most efficient way to measure a company progress and growth. These are the positive results of the organisation strategy. To summarise in a sentence, BA is a market leader, set standards and create Bench mark in the industry. Hence, its strategies and mission statement goes in the same direction.

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