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Copy of Boeing: Selling a dream(liner)

Company case chapter 7 (term paper)

Muhammad Saifullah

on 26 April 2013

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Transcript of Copy of Boeing: Selling a dream(liner)

Discussion Boeing Place your own picture
behind this frame! Double click to crop it if necessary San Francisco Budapest Important
Details (cc) photo by Metro Centric on Flickr (cc) photo by Franco Folini on Flickr (cc) photo by jimmyharris on Flickr Stockholm (cc) photo by Metro Centric on Flickr Boeing illegally tried to get defence contracts with the US Air Force.
- the CEO was fired
- two other executives went to jail
- company lost a lot of money Boeing lost its biggest
commercial airplanes seller
title after the events of September 11, 2001 Technical problems: Selling a Dream(liner) To begin founded in 1916, Washington state
main reference in the world for aircrafts
2010: 64.3$ billion of revenu, 165 000 employees, more than 22 000 contracts
12 000 jets around the world everyday
the largest NASA contractor
employees are part of Boeing's family
eco-friendly products (societal marketing)
reduce 25% CO2 emissions
CEO of Boeing: W. James McNerney
brand new family product: 787 Dreamliner series (more comfortable, design to reduce nausea and headaches) Summary lost their leading position in 2001 & overtook by France-base Airbus
2 ethical scandals and 1 extramarital affair
launching of the 787 Dreamliner in 2004:
- lightest and most fuel-efficient in the
- higher speed
- low maintained costs
3 record-breaking years;
Mid-2007: 3 delays & cut down production;
McNerney CEO Problems Suppliers sent incomplete parts of airplanes
Delivery dates pushed back 3 times
25 airplanes produced instead of 109 in the first year of production
Boeing's customers were really disappointed Q1: Discuss the nature of the market structure and demand for the Dreamliner. What are the implications of this for Boeing and its customers ? Market dominated by a few large suppliers;
Quality, quantity
final product and price;
Inelastic demand Q2: What examples of the major types of buying situations do you see in the case ? Discuss the implications of each in terms of marketing strategy. Straight rebuy: the latest version of the 737 had been updated in 1997.
New task: the customers bought the Dreamliner for the first time. Q3: List the specific features of the Dreamliner. What customer benefits result from each ? Fuel efficiency
Light weight
Very fast jet
Safer than other planes
Make less noise inside and outside the airplanes
More legroom
Higher cabin pressure and humidity
Bigger windows
Spacious stowage
High efficiency particulate air filter
More environmentally friendly Q4: Discuss the customers buying process for a Boeing airplane. In what major ways does this process differ from the buying process a passenger might go through in choosing an airline ? 1. Problem recognition
2. General need description
3. Product specification
4. Supplier search
5. Proposal solicitation
6. Supplier selection
7. Order-routine specification
8. Performance review Q5: What marketing recommendations would you make to McNerney as he continues to try to resolve the problems with the 787 Dreamliner program ? Societal marketing
Customer relationship management
Environmentalism movement
Invloving in operation process;
Product concept:
Marketing concept: R&D, technology;
Lower Customers' expectations
Promote marketing ethics
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