Boeing Marketing Analysis Essay
These marketing analyses will seek to analyze the marketing strategies for the Boeing company world aircraft manufacturing market. Boeing is the leading aircraft manufacturing companies in the world with high marketing techniques that make it possible to compete with other major manufactures. The company has been in operation since 1916. It is the largest aerospace company and the second largest defense contractor in the world and also the largest aircraft exporter in the US.
The Boeing’s dream is to be the major and the most respected company in the world. The target market for the company has been the international and the local aviation companies as well as different governments and militaries with most concentration being in America, Europe, Australia, Asia and Africa. This will enhance a reduction of competition from other aircraft manufactures of the same size and capability and with the same products and have the same targets and plans.
(Michael, 1990, p 23) The introduction of the company’s products in the market will make use of a number of strategies which will involve below and above-the-line marketing tactics to take the services to the final consumer or travelers. This will involve the combination of strategic price, promotional activities, effective
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The marketing strategy will be aimed at creating personal brand identity in which the target market can fully identify with the company services. The marketing of these services that include the free flights for people in the new aircraft that is being launched, full inboard service for the entire in-flight time is estimated to cost $ 20 million. This marketing analysis is aimed at helping the company to acquire about 30 percent of the market within a period of 5 years. The whole marketing plan will be implemented in four stages which are expected to take place within a period of six months.
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The marketing organization will see three teams take on the marketing activities one charged with organization, the other with marketing the brand and the other will oversee effective advertisement. For contingency purpose, the marketing plan requires additional $450, 600 and additional marketing staff. Situation analysis Africa, America and Asia are the main Boeing’s market in the world. Boeing has been selling and leasing more than 1000 business jets that fly to different destinations in the world flying more that 400, 000 passengers and moving more 2000 tones of cargo in and out of the continents daily.
One of the recent manufactured aircraft by the company is the Boeing 787 Dream liner with a capacity of more than 400 passengers. However with the entry of other companies in the market, the company needs to come up with a well defined marketing strategy to market its aircrafts in the market. Initially these aircraft were introduced in 2002 targeting the big airlines and governments. Marketing Summary The primary objective of the company for marketing these aircrafts is to build a high level of awareness among the target groups of the presence of the product in the market.
The company will launch the product using both above and below-the-line marketing launch activities. Above the line actives will include out door activities like TV advertising while the below active will include promotion activities. The marketing strategy will reflect a strong growth strategy which will build brand personality around the product. (Oliver, 2007, p. 21) Competition The competition landscape in the market is tight. The aerospace market has been growing rapidly in the last 25 years. Read about positioning of Nike
Although the size of the air travelers’ population has been growing rapidly, the level of competition has increased since there are more companies which are marketing the same aircrafts and services as the Boeing with the main competitor being Airbus aerospace though the competition has been a little reduced after merger with McDonnell Douglas in 1997. Other companies which have introduced same size business jets as the Boeing have introduced it in the business population segment. (Directory: World Airlines, 2007)
Therefore the level of competition still remains a bit high in the market with more market players coming in. However with the entry of other companies in the market, it is expected that soon they may introduce big business jets in the market targeting the government and other upcoming airlines. (Martyn, 2000, p. 76) Product offering The main product that is being offered in the market by the company is B787 Dream liner. This is a business jet that is targeted to the airline business, governments and military carriers from different parts of the world.
Boeing had previously launched B747 jumbo to airline market after an intensive research by the Boeing marketing team which confirmed that there is are social factors associated to price that still keeps a large segment of the population from purchasing new Boeing jets. In this case the company recognized that importance of introducing brand portfolio and this saw the introduction of B787 dream liner in the market. (Gow, 2004, p. 76) However the company still noted that there was a large section of the business population which still did not purchase this product.
It has therefore developed the company’s Dream which has been successfully launched in other markets recording overwhelming success. Keys to success There are a number of factors which are likely to account for successful introduction of the B787 in the market. With less competition in the market, the success of the product will depend on the way it will make appeal to the target market. One of the most important factors in marketing of the brand is the way in which the target market will identify with the product. This will determine the overall growth of the company in the market.
The following factors will be important for the successful introduction of the B787DL in the market: • Timely introduction of the new B787DL in the market which will ensure that the company acquires a large segment in the market. • The marketing strategy will help the target population to identify with the brand in the market. Creating a personal identification brand in the market will help the customers to identify with the brand in the market. • Brand innovation which will help the company to keep its brands relevant in the market
The above factors will be important to help the company introduce the new B787DL in the market. The path to the growth of the brand in the market will entail the core operation in the introduction of the brand in the market. These are important growth strategies which will ensure the company successfully introduces the brand in the market. Critical Issues There are some critical issues that are relevant in the introduction of the B787DL in the market. These are particular issues which have to do with introduction and growth of the brand in the market. The following are important issue in this marketing strategy:
The market research data shows that the B787DL is particularly famous in the government and business population. If the brand is expected to record success in the market, it must record a wider usage among the target population. This poses a particular challenge in the marketing strategy since it has to make wider market appeal to a cross-spectrum of the population. The earlier introduction of the brand in the market was targeted to the governments’ officials. Therefore the marketing strategy faces an uphill task of deconstructing the construction in the target market.
The marketing strategy has to ensure that it identifies with target population. The company has to ensure that it maintains the growth of the brand in the market. This is another issue that the company has to deal with. It has to come up with working strategies which will ensure that the brand maintains a recorded growth in the market Strategies The marketing strategy will be the most important factor that will ensure the successes of the company in the market. The way the brand will be introduced and the consequent efforts to which will ensure the growth of the service is very important.
The marketing strategy uses the Ansoff Matrix to penetrate the market and ensure the growth of the brand in the market. (Greider, 1997, p 34) In market penetration, the company will seek to sell the B787DL in the existing market. This will form the base for introduction of the new model in the market since it will be marketed among the segment that is already using the Boeing products. This will be achieved through strategies like low pricing strategies and advertising in mass media. This will also help the company to secure dominance in the growth market.
The pricing and advertising strategy will be aimed at creating a competitive advantage and take the product over its competitors. In this initial strategy, the company will be marketing the B787DL in the usually customer segment which it knows well. This strategy will then be followed by market development strategy which will be aimed at crating selling the service in new market. This strategy will include sourcing for new markets. The company is already its products in more than 105 countries and therefore the company will just need to the aircraft in the already established market.
This will be in the same line with product development where the company will introduce the new B787DL in the existing markets. (787-300ER, 2008) After introduction of the B787DL in the market, Brand growth will be the next important thing in the marketing strategy. Brand name development is important in the overall growth strategy for the company. The name of the service was chosen after an extensive market research carried out in US. Using the focused target groups, the company carried out an extensive research before coming up with the brand name.
The marketing strategy will be aiming at creating a products brand personality which will be developing in line with the characteristics of the target market. For B787DL’s dream, the most important key elements will be the way it will appeal to the executive members who are seeking style, confidence, sophistication and element of self-assurance in their business lifestyles (Mark, 1990) The main aim of the marketing strategy is to ensure that it creates a brand name in the market. Creating brand personality will be the main objective of the marketing strategy.
The brand personality described the characteristics of the brand in relation to the target market of the product. Brand personality is important as it will help the marketer to develop the mapping that will successfully introduce the brand to the market. The brand personality has some key elements that make a special appeal to executive like style, confidence, sophistication, and self assurances. Marketing Research There is a strong market research data that is used to support the marketing strategy. The marketing research data was carried in a wide range of customers who purchased or leased B787DL.
This includes a range of sessions where a number of customers were invited in order to feel the new aircraft as developed. Then they were to provide their feedback. The marketing team collected a wide range of feedbacks from the consumers. From the feedback, it was evident that B787DL’s Dream was described as a better package, comfortable as compared to other classes. This showed that the new service would be an outright success in the market. Other research finding showed that: More than 75% of all the customers and passengers interviewed asserted that they preferred B787DL comfort to the other models in the market.
56% of the customers interviewed asserted that they would buy the B787DL brand if their capability allowed them to. (Flight International, 2007. p 23) From the research, it was also found that customers are likely to spend more on B787DL than its close allay airbus’ A380XXX and they are more likely to prefer this type compared to other types due to its comparative low prices compared to the service it offers. Recent market research shows that almost 500 of all Boeing orders are made based on impulse most of the orders showed an increased preference to B787DL with almost half of the orders done.
Market research data shows that American Airlines have been ranked as the first highest purchasers of the Boeing’s jets in the world. (Michael, 1992, p. 45) Implementation This market strategy will be implemented in stages. This will ensure that all the activities are carried out in a way that they meet the expected market results. Implementing the plan in stages is also important since it will ensure that the overall growth of the product can be monitored closely to ensure that there is growth. This will also help to make intervention in case where the expected activity does not meet the expected market target.
The overall aim of this marketing plan is to introduce the new B787DL to the market and therefore it will need to be well implemented to achieve the objective. The first stage of any marketing plan is the market research data which has already been implemented. It is already clear that the marketing research data shows a strong support for the introduction of the B787DL in the market. In this case there is a clear indication that the market is ready for such a service. (Michael, 1992, p. 34) The second stage in the implementation of this marketing plan would be to put together the marketing team.
This will be the team that will be charged with the review of the marketing strategies and how they are to be implemented. This is given the role of assessing the market research data and understanding where it has to be implemented first and where it will follow. The marketing team is therefore responsible for the overall implementation of the marketing plan. (Giuly, 2000, p. 66) The third step in the implementation of the market plan will be to put advertisement in the mass media. This would inform the target market of the impending introduction of a new service in the market.
This will serve the overall purpose of informing the target market that there is a new product on the way. This stage is very crucial since it will determine how the product will be penetrating the market following the awareness that will have been created on the target market about the introduction of the new brand. The third stage will be the actual launch of the product in the market. In this stage an overall launch of the brand will take place which will be spiced up by air show. This would serve the purpose of helping the target market to identify with the brand while performing the activity that they know best.
The tying up of the launch with air show activity is expected to launch the service in a different way in the market compared to how other brands have been launched. It is expected to be a unique launch. The fourth stage would follow the initial launch of the brand in the market. This would be followed by a series of advertisement and promotional activities which ensure that the brand is well positioned in the market. This will be an important stage in the marketing plan which will determine how the product succeeds in the market.
(David, 2004,p 45, Martyn, 2000, p 54) This stage will include the effective expansion of the brand in the market. It will be marked by a series of advertisement on bill boards, mass media, off campaigns and others. This stage will also mark the expansion of marketing activities to the whole world. (Mark, 1992) All these four stages are expected to be implemented within a period of 6 months when the brand will have been successfully introduced in the market. This will be the initial stage which will determine how the rest of the marketing plan will be implemented.
(Lorna, 1993, p. 21) Contingency Planning In order to cater for any contingency in the implement the following steps will be taken The marketing plan will seek an additional 8 percent of the total initial cost which will be $67 million. This amount will help to absorb any arising extra cost in the implementation of the marketing plan. The overall marketing organization will also seek to have extra staff ready who can be deployed to the field or to the marketing depart to ensure that it does no fall short of implementation staff.
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1990, Dictionary of marketing & advertising, NY, GP publishing Michael, L. 1992, Business information, AZ: Oryx Press Greider, W. 1997, One World, Ready or Not: The Manic Logic of Global Capitalism. London: Penguin Press 787-300ER (2008) http://www. boeing. com/ Retrieved on 9th December 2008 Flight International, July 2005 Directory: World Airlines”, Flight International (27 March 2007), p. 89. Flight International, 2007,23–29 January, journal, Gow, D. 2004, The Guardian. Retrieved on 29 November 2008 Oliver, E. 2007, Bloomberg. com, Retrieved on 29 November 2008