Free Business Plan About Aviation Marketing Plan

Executive Summary

Sky Travels pvt Ltd is new airline in the market which has just passed its forming stage. This company is made to fill the market gap originated between high and low airlines as well as classes. We have researched that there are two types of airlines currently providing their services to the American people in the market. One type is offering luxury services by charging high prices and the other one is offering services to the people who just want to travel without any kind of comfort and luxury. According to our research department, a third class was left out which can neither afford to spend major amount of their salaries on travel nor they are happy in traveling with bare minimums available in the airlines. This consists of families from two to four or five children who want comfort as well as want to travel cheaply. We are also providing some of the common services in our airlines like different meal packages on basis of demographics, personalized pillows and blankets etc in order to satisfy our customers. We are targeting economy class of U.S.A which constitutes the major portion of American population. We have enough legroom for one to be comfortable while travelling and the seats are flexible enough to change different kind of positions according to the demand of the customers. Moreover, the staff of our airlines is exceptionally well educated as well as well-mannered in order to make their trip more comfortable and tension free. In short, we know who are our customers and what do they want.

Situational Analysis

Sky Travels is new and minor airline which plans to be huge in future by targeting potential customers who in this case are small to medium sized families who find it difficult to travel with comfort and care within the minimum package. Sky Travels will have to compete all those airlines which either offer high quality comfort or which are very much cheap and economical.

Company Analysis

Sky Travels is a medium sized private limited company which has just completed its formatting stage while authorizing 200,000 shares of $ 10 each with total issued capital $ 20,00,000 and authorized capital of $ 40,00,000. This airline has its headquarters in New York and it is planning to open its branches in California, Washington D.C and Chicago respectively as these states are highly diversified in terms of population it absorbs. People from multiple nations and countries live here and most of them belong to middle or upper-middle or lower-middle class opening new paths of progress and development for the company.

Questions about Company

Following are the questions which can give information about Sky Travels in detail;
Complete name of company
Its headquarters located
What are the Names of supplying companies of Sky Travels
What are the Names of authorized banks of Sky Travels
What Type of packages and deals Sky Travel offers
People are employed by the sky Travels and their salary packages
Objectives

Resources

As Sky Travels is a private limited company, its major financial resources include investing from private sector, loans from authorized banks etc. As it is made with the purpose of offering services to general public, it may get financial help from time to time from government of United States of America. Moreover, its management is quite experienced as it was previously related with aviation sector so, the company has its hands full in terms of experienced and high ability employees.
Other marketing Strategies/ opportunity analysis
Ethical and Social Responsibility
As Sky Travels is targeting economy family class, their ethical and social responsibility is lot more than other airlines who offer their services to corporate or business customers. It is due to the fact that children as well as females of families need more care, attention as well comfort as compared to other customers because they are sensitive towards the external environment and hazards.
Gathering Company Information
Sky Travels is new company having potential to target family niche in the way that it will capture the hearts of customers by providing them the exceptional services which they want. Also, this company has complex customer base dividing their customers into different classes depending on the family size and their income.
Customer Analysis
As mentioned before, Sky Travels is targeting the most complex proportion of population which has many demands and needs as compared to their income. Most of the airlines just hesitate to target this niche as profits margins are not very high with this type of specific niche.
Customer Behavior
Behavior of people of middle class is quite predictable as compared to the other classes of customers. As they are easily attracted towards discounts and deals with cheap prices as compared to others who are quite unpredictable and unsure of their needs and demands. According to the research, a constant trend has been seen with these types of customers who always try to find cheapest packages which offer most comfort and ease within the specific price.
Question about customers
Total size of middle class in United States of America
Families with how many children are included in our target market
People in US looks for deals and packages while booking tickets
Kind of deals and packages are offered by other Airlines
Type of packages is taken by the middle class people
Facilities is preferred by middle class people
People are ready to pay for a specified package
Customer Demographics
Different Age groups of economy class
Types of people nation and country wise
Ratio of male to female in middle class
Classification of middle class into upper middle, middle-middle and lower middle
Organizational buying behavior
Organizational buying behavior is something very much different from individual buying behaviors. Organizations which needs to travel from time to time and place to place will have to need easy and cheap packages are also customers of Sky Travels as they try to find something which satisfies their employees as well as dose not cost much to these organizations so they could keep their expenses to the minimum.
Customer buying behavior
Individual customer buying behavior is something which can be predicted on the basis of one’s nation and race. For instance; according to our research, middle class people belonging to Asian especially South Asian countries will always prefer to have cheapest and easiest packages with almost minimum or no comfort at all. On the other hand, people who belong to middle-east are generous in terms of their spending on themselves. So, it is very necessary to look upon the nature and race of people while developing deals and packages for them.
Gathering customer information
It is the prior need of Sky Travels to have enough information of their customers and their interests, nature of habits and amount of money which they are comfortable while spending on themselves. It is due to the fact that customers who have similar interests and habits can be easily classified into similar groups which will make it easy for the company to accommodate them as different targets and segments.
Competitive Market Analysis
In today’s world where businesses are at its peak and it is the basic major need of people to move on from place to place, this industry is attracting many companies to have chance of earn huge profits. So, it is natural to have competition in this industry. As a new company which has just been formatted, it is difficult to survive, if it does not take proper steps and implement its strategies in the right way.
Main competitors and their strategies
U.S Airways, American Airlines Southwest Airlines and Forbes are major competitors of sky Travels. As they are already providing economy packages, they are major threat to Sky Travels. On the other hand, they are also offering luxurious packages causing to attack the target market of Sky Travels. The strategies used by these companies are a mixture of many high and low policies as they believe in targeting different sections of population and economy.
Competitors’ reaction to change in marketing strategy
Competitors of Sky Travels in airline industry are very much fast paced as they understand the need and demand of the time and market. So, they are very much fast and they have strategies on their hands before the events even happen. For example; in case of any restriction from the government, these airlines are already on while implementing different set of strategies.
Pest Analysis
Economic environment of overall economy is highly unpredictable as there are many ups and downs in stock prices as well as exchange prices of the currency.
Technological environment is very fast paced and continuously changing as with every passing minute, new technology is being innovated.
Cultural environment is highly diversified as America is absorbing different types of races and nations within it and they are trying to blend in the society.
Political environment also can be considered unstable as people are not very happy with current government and its policies resulting in unrest within the country.
Swot Analysis
Strengths
Economy packages and deals
Efficient staff and employees
High quality machinery including planes
Weaknesses
Low profit margins
Lack of distributor’s network
Opportunities
Target Market
Chances of Expansion through vertical integration
Threats
Large number of competitors
Exposure to external environment
Government Restrictions
Marketing Plan and objectives
Sky Travels plan to advertise the market in the way that they reach their customers i.e. economy class in every possible way. They believe on fast and serious advertising for the fact that more the people knows, more the better which means that they are trying to provide services to more and more people in first stage of its business. So, they could expand their market size with passage of time. Following are the marketing objectives of Sky Travels;
Adds of Sky Travels should be known by most of the people with in first three months of its marketing.
The tagline of the airlines “economy that cares” should be memorized by most of the members of economy class irrespective of the fact that whether they are adults or children
People should be curious to try the airlines by the heavy amount of advertisement thrown upon public
Differentiation and positioning
As mentioned before, the point of differentiation or in other words competitive advantage would be its comfort level facility within price of economy class. People will be able to enjoy confortable environment including leg room, pillows, blankets as well as options of different types of meals etc.
Marketing Strategy
Marketing Strategy of Sky Travels includes marketing from multiple mediums and resources includes television and social media i.e. Facebook, twitter etc as primary resource while newspapers, bill boards and brushers etc as secondary resource. The marketing strategy ultimately can be defined as a wonderful mix completing the demands of advertising of modern times.
Product Market
There are many other types of aircrafts are available in the markets. From private jets to jumbo jets and economy planes with almost no leg room can be found in the market by simply pressing a single button on the internet. So, in this competitive environment, there are very minimum chances for Sky Travels to get known and progress.
Targeting and Segmentation
Sky Travels has targeted the economy class i.e. middle class which is further classified into three more classes which are upper middle, middle middle and lower middle. Also, it has targeted families who want friendly packages which are cheap as well as providing necessary facilities like leg room and meals according to the demand of children.
Sky Travels has segmented its target audience in the way that they have made different classes and groups on the basis of income level as well as the family size i.e. how many dependents are there on the single person and how many children are there in a family etc.
4Ps of marketing
Product
Product offered by Sky Travels is aero planes and there are different types of its packages and deals one can render and enjoy.
Brand
Brand of Sky Travels consists of aero planes which are made for economy class except for the fact that they will have many other facilities which are not given by other airlines in the same package and amount.
Goods and services
Services offered by Sky Travels in its planes are
Leg room for customers
Personalized baby seats
Personalized pillows and blankets separate for adults and children
Different categories of food for adults and children
Product classes
At Sky Travels, product classes are not made in regular and traditional way. Rather, they are made on the basis of needs of the customers. For example; people wanting silence and comfort will have different place than people with small children.
Price
Pricing objectives
Earn from deals offered for more than five people rather than deals with two or more people
Discounts should be shown on the deals and packages in order to capture customer’s psychology.
Customer price sensitivity
People from economy class are very much price sensitive. They are always attracted towards deals and packages which show price discounts.
Customer value and pricing
Customers from economy class value small services and price things and services accordingly. For example; they would think of package high if more luxurious services are offered in it.
Place
Ideal market exposure
Ideal market exposure for this airline is communication of its packages to most of the people of economic class. When there will be 100% bookings after two months of its service then, it will have ideal market exposure.
Channel of distributions
Bookings for the tickets and packages will be made through the following;
Company’s own website
Online Distributors (travel agents of the company)
Through calling the headquarters
Promotion
Developing promotional blend
Promotional blend of Sky Travel consists of both mass as well as personal selling. And they both have separate modes to get themselves done.
Sales promotion
Adoption process and promotion planning
Promotions are planned in the way that firstly advertisements on televisions will be made then on newspapers and bill boards and finally on social media by providing people with complete packages and deals of airlines.
Promotion to business customers
It consists of promotion of Sky Travels to those organizations which act as middle man between final customers and airlines companies.
Promotion to final customers
Promotion to final customers will be made through each mode on which general public has access i.e. television, newspapers, social media etc.
Implementation
Implementation of marketing strategy will be done in the three to four phases. For example in the first phase, advertisements will be communicated to public, in the second customers would be attracted to different channels and in the third, customers will be targeted psychologically.
Control
Sky Travels will have control on its marketing plan in strategies by keeping a good follow up and getting internal and external feedback every now and then.
Budget and sales Forecast
Sky Travels have high then most of the companies as it have issued capital of $ 20, 00,000. So, it has budgeted its sales to get doubled after the first three months because people will have complete know how about airlines as well as trusted word of mouth.
Time of implementation planning
Time of implementing the marketing plan would be time when company is perfectly established and stable from any kind of risk and exposure of external environment which can affect the airlines.
Contingency planning
Contingency plan for Sky Travels is that if in the case this target market does not give expected results then we will switch to other target markets as our system is flexible enough. Then we will come back to this niche after some research to win this segment of the market.