Executive summary
Air Express limited intends to reach to low end consumers in the market though its Easy Travel product. This is in line with the objectives of the company which is centered on increasing marketing share and edging out competitors. The company will use various market penetration techniques based on pricing strategies, advertising strategies, branding and a proper distribution plan. The strategies will enable the company edge out competitors such US airways that are already established in the market.
Introduction
The number of people in need of domestic air travel services has increased over the years. The prices for air travel services have been out of reach for many consumers. The company intends to tap into this market that has not been reached by us and other companies. The company intends to provide affordable air travel services without compromising on quality. This marketing plan will place the company ahead of the competition.
Mission
The mission of the company is to provide quality services to customers at affordable prices, increase the number of domestic destinations fight routes, provide quality customer service, and be leader in the aviation industry on quality service provision and to realize both the needs of the customer and the company.
We will be introducing economy fights so as to give other consumers an opportunity to enjoy flight services. The domestic flight packages have locked out other needy consumers from flight services. The economy domestic flight is intended to increase the company’s market share and wade off competition from other players in the industry.
SWOT Analysis
The company appreciates certain external and internal factors that may prevent it from attaining its objectives in the market place. The Fuel prices have been volatile and this must be put into the consideration as the company ventures in the low cost flight operations. The fuel price is a threat to the company.
The reputation of Air Express limited stands as one of its selling points. However, stiff competition is expected from other aviation companies plying domestic roots such as US airways which has also been doing well in domestic routes. Jet Blue is another competitor because it provides low cost flight services. Competition is also expected from Delta airlines. However, the economy domestic flights will be different from the domestic ones offered by the competition. This will be a selling point for the company. The merger between American airlines and US airways has increased the market share of the two companies and, therefore posing a challenge to Air Express Limited.
Targeting the low end and middle income consumers increases the company’s potential for growth. There is no growth expected the industry on the already existing markets in the United States (Domestic Airlines Market Research Report, 2014)
US airways cover many domestic destination routes which could hinder the progress of Air Express limited (Expedia Incorporation, 2014). Air Express limited intends to increase its roots to include California. The company’s price entry technique will be useful in capturing the market. Air Express limited will be alive to these available opportunities, the strengths of the company as it is necessary in coming up with a business strategy (Tim Berry, 2014).
Pricing Strategy
The company will use penetration pricing as its strategy. It is the most ideal method because there are other established companies like US airways plying domestic routes. Jet Blue which is ranked fairly in terms of quality is also part of the competition. This makes completion pricing inappropriate. Low price strategy can serve the purpose of increasing market share and also “pulling away” customers from the competitors. The price will then be increased to that of the competition once the customers are pleased with our services.
Since the company is targeting low and middle income consumers, price becomes a critical factor in purchasing the service. Competition pricing will not be useful in achieving this objective. Air Express limited also intends to edge out competitors. This strategy becomes a good tool in edging the competitors (Neil Kokemuller, 2014). The pricing strategy of the company places it a head of the competition.
Advertising and sales promotion
The company will use Television Networks to advertise the new service that it intends to provide. This advertising platform has a wide coverage and almost all the people targeted by this product have access to it. The company will also use newspapers for adverts and the company website. There is no need to use social media because the targeted group can be reached effectively through Television Networks, Newspapers and the company website. TV and print are efficient “Pull” strategies useful in marketing.
The company will use discounts so that product can penetrate the market. Discounts shall be offered for frequent users of the economy domestic flights. This will provide good incentive for regular domestic flight users. For a person travelling to and from, the company will reduce the return price by half. The company will use Coupons in its in promotions to attract consumers.
Branding Strategy
A branding strategy should be one that conveys a good image about the product offered to consumers. The branding strategy describes what the company is to be known for and the promises made by the company. Easy Travel is the product brand. The company slogan is being a reliable partner in your economic success.
The company is confident that with the adoption of good market entry techniques, it will emerge a market leader as it sticks to its mission in providing quality services to the consumers. The company objectives will be achieved through effective implementation of the marketing plan.
References
David Ewalt .(April 8, 2013). America's Best Airlines. Retrieved from http://www.forbes.com/sites/davidewalt/2013/04/08/americas-best-airlines/
Domestic Airlines Market Research Report. (2014).Domestic Airlines in the US: Market Research Report. Retrieved from http://www.ibisworld.com/industry/default.aspx?indid=1125
Expedia Incorporation.(2014).US Airways Reservations- Low cost flights. Retrieved from http://flights.expedia.com/us-airways-reservations-and-flight-deals/
George N. (2014). How to Design a Sales Promotion Strategy. Retrieved from http://smallbusiness.chron.com/design-sales-promotion-strategy-1028.html
Neil Kokemuller. (2014). Penetration Pricing Strategy. Retrieved from http://yourbusiness.azcentral.com/market-penetration-pricing-strategy-12987.html
Tim Berry. (2014). What Is a SWOT Analysis? Retrieved from http://articles.bplans.com/how-to-perform-swot-analysis/
