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Delta Airlines Marketing Plan

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Sierra Lfgafgbb

on 7 March 2013

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Transcript of Delta Airlines Marketing Plan

Delta Airlines Marketing Plan Situation Analysis Cont. Market Segmentation Alternative Marketing Strategies Competitor Analysis Leisure Travelers We could sell our company to a competitor to consolidate our revenue. We could also absorb our competitor and widen our market. Our goal would be to monopolize the market. We could expand our flight routes to attract customers in other countries. We should focus on broadening our market base from North America to world-wide. Ultimately, we would like to reformat our seating arrangement to give the flyer more legroom and reclining abilities. Also, we could decrease our prices for our consumers. This would result in a slight decline in profit at first. But, it will attract more customers, which will increase our profit in the long run. Executive Summary By: Sierra Landaiche and Roshni Desai The Challenge Situation Analysis Situation Analysis We will be marketing a comfortable and affordable airline. Our goal is to create the world's greatest airline. We desire to achieve this goal by focusing on safety for our customers, working as a team, and having a stable financial profit.
We seek to resolve the problem of unsatisfied customers. We have received complaints of cramped seating arrangements and unappetizing food. We hope that we can solve this problem cost efficiently. We have created this marketing plan to improve the airline as a whole. We can use this marketing plan to find out how to feasibly complete all of our goals. We hope to create a more spacious seating arrangement and a more appetizing menu. This plan should help us achieve these goals. Company Analysis
Goal: We - Delta's employees, customers, and community partners- together form a force for positive local and global change, dedicated to bettering standards of living and the environment where we and our customers live and work. We are Delta's Force for Global Good.
Focus: We focus on improving our airline and satisfying our customers.
Culture: We hope to foster a laid-back yet efficient culture that differentiates us from other airlines. This will make us stand out to the customer and attract a larger market.
Strengths: We have a well-known and trusted brand name. We have our own fleets which cuts costs and boosts revenue in the long run.
Weaknesses: We have a large debt. Also, we only cater to a limited market focused in North America.
Market Share: We are the 2nd largest passenger airline in the world by available seat miles. Customer Analysis
Number: We cater to 160 million customers each year.
Type: Our customers are families and business people.
Concentration: Most of our customers are from North America with a large portion coming from the Southern region.
Value Drivers: The comfort of our airlines as well as how busy the traveling season is increase the value of our company's service. Also, brand loyalty contributes to the customer's perceived value.
Decision Process: We have a bottom-up decision making process. We base our flight destinations on our customers' needs. Market Position: We are the top competitor among the five largest US airlines.
Market Shares: The competitors control the rest of the market that we cannot attract.
Strengths: Occasionally, the competitors are cheaper or provide more appetizing food.
Weaknesses: The other brands are not as well-known or have as large of a loyal customer base. Collaborators We are partnered with Codeshare Partners, Delta and Air France-KLM-Alitalia Joint Venture, Delta- Virgin Australia, Delta Private Jets, Delta Connection Carriers, Delta Shuttle, Skyteam Alliance, and Tristar Worldwide Chauffeur Service. We have partnered with a large variety of travel services to offer our customers an array of options. Climate Ethical Environment: On a fundamental level, our customers should feel comfortable flying on our airlines because we are providing jobs for many people and do not support unethical activities. However, some environmentalists may worry the air pollution that our flights produce and the excessive amounts of fuel we consume.
Economic Environment: We face the problem of paying for the fuel that we must use for our flights. Also, it is expensive for people to fly on planes in general, which may limit our customer base.
Social Environment: We have a largely American affiliation; however, we have very cultured employees.
Technological Environment: We are constantly innovating and adopting the newest technological advances in hopes of creating a comfortable and affordable airlines. SWOT Analysis Strengths:
Well-known brand name
Large customer base
Dedicated employees
Incentive programs (SkyMiles and SkyTeam)
Pacific and Atlantic flight routes Weaknesses:
Operating costs
Many delayed flights
Dependence on technology
Increasing fuel prices Opportunities:
Invest in new technologies
Reduced operational costs
Improve customer experience Threats:
Fuel costs
Competitors
Economy
Crashes/terrorism Description: This demographic includes people vacationing with families, friends, or flying solo.
Percent of Sales: The minority of our profit comes from leisure travelers. They are less profitable than the business travelers because they plan in advance to get the best deal.
What they want: This demographic wants the best deal to their location. They are primarily concerned with the cost of the flight rather than the destination.
How they use product: They use our airlines as a means of transportation that is affordable.
Support requirements: We can retain these customers by improving our comfort and reducing our prices.
How to reach them: We can reach these consumers through advertisements on TV or in magazines.
Price sensitivity: The leisure travelers are more sensitive to the price because they want the best deal. Business Travelers Description: This demographic includes people who are traveling for business. Most of the companies arrange these trips.
Percent of Sales: The majority of our profit comes from business travelers. They are more profitable than the leisure travelers because they are willing to pay a set price and buy the tickets at a later time. Their schedules are not as flexible so they must pay higher prices.
What they want: This demographic wants to get to the location regardless of the price. They are more price inelastic.
How they use product: They use our airlines as a means of transportation that is efficient
Support requirements: We can retain these customers by improving our comfort and reaching a larger variety of locations.
How to reach them: We can reach these consumers through advertisements on TV or on buses.
Price sensitivity: The business travelers are much less sensitive to the price because they need to reach a location regardless of the price. Selected Marketing Strategy Our strategy is to improve the quality of the flight. We want to make the airline more affordable and comfortable. Our target market is focused on leisure travelers since our business travelers are satisfied. Product Brand Name: Delta Airlines
Quality: Good standard of quality, but we would like to improve it even more.
Scope of Product Line: Our sole focus is transportation services
Warranty: We provide services, which do not necesitate warranties.
Packaging: N/A Price List Price: $344 is the average ticket price
Discounts: SkyMiles- Frequent fliers can receive free flights or better seats on the plane.
Payment Turns and Financing Options: Extra revenue can be earned through sales of products during flights. We could also save money through conserving fuel.
Bundling: We can sell tickets with discounts on other services such as the bag check-ins.
Leasing Options: Customers have the option of renting a private plane for personal travels for a few years at a time.

Distribution Distribution Channels: Customers come to us
Motivating the Channel: Advertising can attract customers
Criteria for Evaluating Distributors: N/A
Locations: Major cities with heavy plane traffic
Logistics: Much of order fulfillment occurs online, while customers must redeem tickets in airport or print it themselves. Promotion Advertising: Magazines, TV, Billboards, Word of Mouth( Brand Name recognition), Online Ads.
Public Relations: PR Reps stifle damaging media and uphold our trusted Brand Name.
Promotional Programs: SkyMiles- frequent flier program
Budget: $32.9 Million advertising budget
$32.9 Million in profits will break even
Projected Results: An increase in revenue due to Silver Medallion Customers who fly more frequently.
Implementation The Marketing section of our Delta Team will gather data and produce promotional advertisements. Our accountants will manage our revenues and profits and they will notify us of the effectiveness of our promotions or of any overspending.
We will partner with a better catering service and collaborate with professionals to create more ergonomically sound seating arrangements.
We plan to complete this project by the year of 2015. Short and Long-Term Projections Our plan to create a more affordable and comfortable airline will initially attract more customers and ultimately inflate our profit margins. We would need to partner with professionals in the culinary and furniture fields to fulfill these goals. Our revenue will increase by approximately 25% in the long-run if the plan pans out well. Conclusion We hope to expand our customer base by improving on our seating arrangement and the quality of our food. We will achieve this goal by targeting the leisure travelers and improve our advertising techniques. Ultimately, the implementation of this plan will bolster our brand name and increase our profits. The End
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