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Air Cargo Industry - B2B Marketing

Pakistan International Airlines
by

Usman Safdar

on 23 January 2014

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Transcript of Air Cargo Industry - B2B Marketing

Pakistan International Airlines
Air Cargo Industry - B2B Marketing
PIA Cargo Services - 4Ps
Buying process and Relationship Management
Segmentation and Market Access
Industry Outlook
History
May, 28, 1910: Glenn Curtis flew a sack of mail between Albany and New York taking two-and-a-half hours to cover 150 miles
November 10, 1910: The Wright Company flew five bolts of silk cloth from Dayton to Chicago to be sold as mementos of the "first air shipment."
Air Cargo Providers
Integrated Carriers
Transport service providers who arrange full load, door-to-door transportation by selecting and combining efficient mode(s) of transportation -
FedEx, DHL, UPS
All Cargo Airlines
Airlines dedicated to the transport of cargo and cargo only -
Polar Air Cargo, Atlas Air
Combination Airlines
Passenger carriers that have a subsidiary dedicated to cargo transportation -
Singapore Airlines Cargo, Cathay Pacific Cargo,
Pakistan International Airlines Cargo
Global Air Cargo Market
Overall global freight moved was 202.4 Billion RTKs
Scheduled air freight accounts for 90-93% of all world air cargo
Asia Air Cargo Market
The world bank estimates a global GDP growth rate of 5.3% (The World Bank, 2012)
Industry Competitors
Water Carriers

Over the Road Carriers

Rail Carriers
Product
MaxLoad
Premium Freight
SpeedEx
Actual Product
Cargo Transportation
Core Values
Insurance
Ground Handling
Unaccompanied Baggage
Online Tracking
Augmented Product
Place
Asia - 18 Countries
Australia
Europe - 15 Countries
Middle East - 7 Countries
North America - 2 Countries
Pakistan
37 Cities
Price
Weight or Volume
Source and Destination
Special Handling
(Live Animals, Dangerous Goods, Perishables, and Valuables etc)
Promotion
Almost non existent
Buying Decision
New Task Buying
Straight Rebuy
Modified Rebuy
Environmental Forces
Meat
Fresh Fruits and vegetables
Textile products
Paper products
Live animals – Sheep, cow, camels,
Laboratory equipment
Un-cremated human remains
Dangerous goods

Technological Influences
Online Communication
Cargo Tracking
Information on alternates
Economic Influences
Political Influences
Syrian Arab Airlines
Indian Airlines
Collaborative relationships should be established with the following businesses
Fresh Fruits and vegetables
Meat
Transactional
Types of Relationships
Transactional relationships can be established with the following businesses
Paper Products
Textile Products
Live Animals
Laboratory equipment
Collaborative
Perishables should maintain a Collaborative Relationship
Market Access
Segmentation
Profit Growth
Sell more in Existing
Market Entry
Amsterdam Air Cargo Forum 2010
Air Cargo Europe in Munich, Germany
Customer Risks
Seller Risk - Contact Phase
- PIA has an advantage that it is not an unknown and unproven supplier
- Announced its cargo operation in 1974
- Seller risk for the businesses can be much reduced, PIA is at an advantage here
Offer Risk - Transaction Phase
- Delivery on promises
- Flight delays are made up by proper storage facilities
Scale Risk - Expansion Phase
- PIA's Cargo's dynamically expanding network serves scores of global destinations
Skill Risk - Consultative Phase
- Considerably unestablished area, weak umbrella brand
PIA Cargo in Amsterdam - 2010
Air Cargo Europe in Munich, Germany – May, 2009
Customer Risks &
Recommendations
Recommendations
Strategic Alliances and Joint Ventures with other operators, where PIA does not fly to
Thanks,
Kanwal
Saad
Usman

ANY QUESTIONS or COMMENTS
Other Cargo Services

More focus on SMEs
Brand Tower
Brand
Stack
Brand
Silo
Brand
Pack
Brand
Tower
Customized
Centralized
Standardized
Decentralized
Work on Promotion
Full transcript