Introduction
The entire field of marketing is extremely broad, and it is equally applied on numerous things particularly (Berry and Wilson, 2001). Planning in terms of marketing can be taken into account by the companies for their core effectiveness and measurement. More dominantly, marketing plan would have been considered on the basis of a certain product or services, which is not gaining a smart choice of act for its consumers. The same has been applied on this particular assignment as well, in which a product of Etihad Airways would have been considered followed by a perfect and well organized marketing plan. The product which has been chosen for the same analysis is Airline services (Ferrell and Hartline, 2005).
Analysis and Findings
A Short Description of the Company
Etihad Airways is the flag carrier airline of the United Arab Emirates. It was established in the year 2003 by the Royal Decree (Berry and Wilson, 2001). The company was actually related and belongs to Abu Dhabi, and the company started their core operations in the financial year 2003 (Ferrell and Hartline, 2006). The name of Etihad has come from Unity. The airline currently operates more than 1,000 flights per week to 96 passengers along with the cargo destinations in different parts of Middle East, Europe, Asia, Africa and American region. As per the annual report of the company, Etihad carried around 10.3 million passengers in the financial year 2013 which was 23% high than that of the last year (Ferrell and Hartline, 2011).
Apart from the activity of passenger transportation, the company also operates Etihad Holidays and Etihad Cargo, and the Airline based on the Abu Dhabi International Airport. James Hogan is the CEO of the company, and he announced that the company has taken a share of 29.21% for the Air Berlin, one of the largest Airlines of the European region (Fisher, Pride and Miller, 2006). There are currently 120 destinations in which the company is intending to give their services. The total revenue earned by Etihad Airways in the financial year 2013 was US$ 6.1 billion.
The Scenario
Marketing Plan will be made while selecting a service to be used and implemented in some other part of the country, where in the services have not been made (Berry and Wilson, 2001). It is important to create a hypothetical situation in this assignment because for the application of marketing tools and techniques it is important to select a particular discussion in it (Fuller, 2007). Suppose, Etihad is planning to open it operations in the Indian Region, Though the company already has its operations in this particular region, but for this assignment a hypothetical situation has been created (Hartline and Ferrell, 1993). There are number of parts that will be taken into consideration for the core analysis known as the marketing plan analysis. Some of the major marketing based tools which will be taken for this assignment are as follows
- SWOT analysis of Etihad Airways
- Market Audit of Indian Economy
- Marketing Mix
All of these tools are essential and effective for the sake of the analysis, and will be used for the same in this particular aspect as well (Berry and Wilson, 2001).
SWOT Analysis of Etihad Airways
SWOT analysis is one of the widely used tools used for the analysis purpose comes under the ambit of Strategic Management (Berry and Wilson, 2001). It is an important and prescribed tool used by the companies to flourish their core earnings in the markets (Luther, 1987). The application of SWOT usually works on Strengths, Weaknesses, Opportunities and Threats of a company. It will give a better idea to the company regarding its core strengths and weaknesses that will be found interactive for the analysis purpose (McDonald, 2008).
Strengths
- One of the foremost strengths related with the company is strong backing from the government of Abu Dhabi, which is flourishing the growth of the company accordingly (McDonald and Dunbar, 2004)
- The company has a core advantage of representing their effectiveness in the Oil Rich market of Emirates
- The airline is currently going with 5,000 flights per week
- The company is currently covering more than 55 countries of the world in terms of core destinations
- The company is operating with effective branding and visibility strategy, and it actively sponsored many events single handedly
- High economic growth of the company is also a plus point for them, as well as for their shareholders (Berry and Wilson, 2001)
Weaknesses
- The company is relying very heavily on the International Onward Moving based traffic
- The market share of the company is reduced heavily due to the external pressure of intense market and competitive position and level (McDonald, Smith and Ward, 2007).
Opportunities
- Leverage in the Brand New Fleet is one of the core and major opportunities associated with the company as far as enhancing the productivity of the company is concerned
- High arrival of tourism in the UAE region is one of the core advantages for the company, like Etihad Airways to enhance their operations accordingly (McDonald, Smith and Ward, 2007)
- The company is now intending to cover more and more global destinations of the world, which will create future benefits and effectiveness for them
- The company is currently tie up with different airports to give effective and immense facilities to the passengers in order to enhance their core services (Berry and Wilson, 2001)
Threats
- The level of competition in the Middle East Market is increasing heavily which is creating an intensifying situation for the company particularly
- The level of cost of fuel is increasing in the international market which increases the level of competition in the market
- The government policies of Abu Dhabi has now changed for the Airline industry, which may create number of issues and problems for the Etihad Airways in the near future
Market Audit
Theoretically audit means to checking two different times, and it is an effective tool which is used to have their guts in the market (McDonald, Smith and Ward, 2007). Market Audit is an important strategy for the companies which are intending to expand their core operations in some other markets of the world. For this assignment, a hypothetical scenario has been considered in which it is showing that the company is strategizing to enter in the Indian region (Berry and Wilson, 2001). Market audit will have two different sub headings as well which will be considered here known as Porter’s Five Forces Analysis and Pestle Analysis
Porter’s Five Forces Analysis INDIA
Porter’s five forces analysis is an important and powerful tool used to assess the marketing efficiency and capability of an organization (Sanfilippo and Robinson, 2002). It is one of the most important tools used for the same analysis. It will analyze the operations of the new company from five different angles and make their presence effective in the core market (Berry and Wilson, 2001).
Rivalry among the Competitors (High)
The effects of globalization are increasing effectively in every market of the world which is equally applied on Indian economy as well (Sanfilippo and Robinson, 2002). India is one of the largest economies of the South Asian region; hence the level of competition in this particular region is extremely high in particular which are creating effectiveness in the market. The level of Airline business is high in Competition in the Indian region; hence Etihad Airways has to look over these things in an effective manner for their growth and positivity. The company has to come up with effective strategies to overcome on the issues and problems in an effective manner.
Bargaining Power of the Consumers (High)
Customers are the end users of an organization, and no organization can be in the neck of economic prosperity without satisfying the needs of their customers. Indian economy has number of Airlines working with it, which is increasing the bargaining power of the consumers heavily in the market (Berry and Wilson, 2001). Due to high competition, there are lots of companies which are intending to start their operations in the market, therefore the power of bargain of the consumes is increasing heavily for this industry
Bargaining Power of Suppliers (Low)
Indian market is a broad market, and there are number of suppliers working in it. The market has been continuously increasing perfectly (Sanfilippo and Robinson, 2002). There are number of suppliers already working in the region for their core effectiveness, and it will be a good choice for Etihad Airways that will be effective for them. Etihad Airways which is strategizing to expand its core operations in the Indian market will get the things accordingly in the market for them
Threats of New Entrants
Those organizations which are not in the favor of assaulting from the competition are not the one that will bring increment and prosperity in their functionality and effectiveness. It is usually comprises on Barriers to Entry and Exit
Barriers to Entry
Indian market barriers in terms of Airline Industry are very high, and it should be place on a lower level in the near future.
Barriers to Exit
Exit from the Airline Industry is not easy especially in the Indian region, which will hurt Etihad Airways as well
PEST Analysis of India
PEST analysis is an important strategic management tool used to assess the level of political, social, economical and technological aspects of an organization, and it is very effective for the entities (Sanfilippo and Robinson, 2002).
Political
India with an official name of Republic of India is a country located in South Asian region, and it is known as the seventh largest country in terms of area and the 2nd most populous country of the world. The political structure of India is not as sound as the other countries of the world, especially like the UAE, but still the country has emerged as an integral destination for the business effectiveness particularly.
Economical
Indian Economy emerged exceptionally well after the current economic crisis, and it is known as the 10th largest economy of the world particularly in terms of nominal GDP and the Purchasing Power Parity. The companies which are operating in this region are having a great time while working here with full fledge government intervention and economies of scale. The total GDP reported by the country in the financial year 2014 was US$ 7.277 trillion with per capita income of US$ 5,777. Etihad Airways would certainly get an upper hand while working in this region for their core effectiveness and enhancement in the future.
Social
The Health Index of the Indian region is 0.586, which lies in the medium region; however the company is striving hard to give more and more social benefits to the citizens. Etihad Airways has to get aware with these things particularly to overcome all the challenges faced by the company as far as enhancing the social cycle in the country is concerned. The company also makes sure that the marketing would not hit the company from any bad thinking.
Technological
In terms of technology, Indian economy is a strong country which is doing an exceptional job as far as enhancing the technological power is concerned, and they are delivering their best to surrender their services in the region particularly. With the help of these technological power and efficiency, the company will certainly get added advantage while their core working in the region of India.
Marketing Mix Analysis
Marketing Mix is an important marketing tool that comes under the marketing planning in particular (Schlesinger, 1978). It is an important tool that used specifically by new and existing companies of the world. It also has communication plan associated with it. Marketing Mix has four parts associated with it which are
Products
Ethihad Airways have number of products and services in their hands and the products which are currently offering by the company in the Indian region are the passenger services from Indian airport to different destinations of the world. In terms of quality, Etihad Airways is powerful and giving extra benefits to their customers in all over the world.
Pricing
Pricing is an important strategy, and Etihad Airways has to gain effectiveness in the market as well. Pricing strategy which the company is currently utilizing its COMPETITIVE Pricing, but the company has to change the things in the Indian market, and should come up with the PENETRATION pricing strategy particularly, in which the company should come up with a low pricing strategy.
Place
The place strategy of the company is zero level channels, in which the representatives of the company will be directly in interaction with the customers.
Promotion
While entering in the region of India, Etihad Airways has to come with both electronic and news paper medium which will be considered for the promotion.
Conclusion
Ethid Airline will get the things in the right manner while entering in the Indian region and it will be taken into the same consideration for their enhancement in the market. As a hypothetical situation, the company is strategizing to enter in the Indian region, and from this analysis it is clear that it will be a perfect chance for the company to enhance their core value in the future.
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