The main purpose of the essay is to identify what core products and supplementary services British Airways provides to two different targets markets in addition will be discussed tangible and intangible elements that are cooperated within the travel industry. Furthermore, the focus will be on premium economy class where core product and supplementary services will be analysed paying attention to core and supplementary service as well as tangible and intangible elements. British Airways is an airline company established by the British government to manage the two nationalized airline corporations British Overseas Airways Corporation and British European Airways (JARVIS).
BA is the largest operative of the Boeing 747-400 with his hubs at Gatwick Airport and Heathrow Airport. Over the time, the company has established certain strategies to promote his brand nationally and internationally level, BA has a strategy to draw knowledge for its customer The contoured leather seats are designed to maximize the personal space, family friendly features and kids’ activity packs By implementing strategy, the customers are the main assists, By using computing and technology to provide effective services, BA has developed few strategies to accomplish the cost base operation. The new technology with mobile application services for business class customers, the company has upgraded the customer experiences, the company has also provided texting and mobile services for business class customers during on-flight hours (“British Airways Strategic Management”).
The cabins have a virtual reality headset with the use of cardboard virtual reality glasses., The fleet is also very quitter, lighter and more fuel efficient than a current aircraft, providing a more pleasurable travel experience and less impact on environment. BA follows a strong coordination function to accomplish the objectives that are meet on daily basis. Adequate training on the new onboard technology will be necessary on an ongoing basis to ensure that employees are fully familiar with the service. Strategies have been developed to manage cost base operation make journey more comfortable.
“The strategic decision of alliance with KLM 21389561 proved wrong for British Airways due to increased feeder role, overlap of strategies, lack of cooperation among managers, and burden of financials (Kleiman & Seristo, 2004)” I s important to have the usage of with the help of market information in the competitive environment of business operation. Market Research has become important essential to obtain vital market trends and practices those towards suitable strategic judgment making Core concepts refers to consumer needs, wants and demands, products and service markets, value, customer satisfaction /retention, effectiveness and profitability. Example below. The key concepts of marketing are as follows: Customer needs Wants and demand Products and markets Customer satisfaction Exchanges process Changing emphasis the core products of an airline are those service they provide for the customers, transporting people from one place to the other, to different destinations.
Operating in more than 82 countries with more than 300 aircrafts, has helped the company to increase its reach in UK and abroad with over 160 destinations worldwide Tangible -the services British Airways provides it would be the various products such as complimentary meals, drinks, allocated seats and onboard entertainment and other services, for example passengers flying in a premium economy class can benefit from better supplementary services, priority baggage handling, duty free shops, priority boarding, fast track priority service through emigration (“British Airways”). The products offered by BA are excellent at reasonable price to satisfy each customer needs, in the term of best in flight services, comfortable seats, hot and fresh meals, drinks, and even entertainment on board BA has two supplementary servicers, one which facilitates the need for service and one that adds extra value to the customer. Taking in consideration the needs of the consumer at BA, marketing mix meets the change of the needs, having a great service the needs of the customer are achieved.
Over the last few years increasing complexity in customer needs has been appreciated, as the customers have become more educated and demanding due to this following change have occurred (“British Airways Marketing Mix”). Directing customers for British Arline’s involves choosing specific groups of segmentation to sell their product and services, for example BA follows single segment concentration marketing strategy by offering four different packages to different customer segments, economy, premium economy, executive and first class. To accomplish a long-term growth, BA focus on enhancing their own value for his service.
Over the years, the company has successfully developed and upgraded infrastructure to conduct a safe activity, with a distribution of call centres, online websites and travel agents. Porter strategy every company can obtain competitive advantage through many ways such as differentiating its products and services from their competitors through low costs. It has been stated by porter that there are three simple approaches which companies can obtain competitive advantage which are Cost leadership, Differentiation, and Focus. Source: M.E.
Porter, Competitive strategy (free press, Glencoe, 198BA made a great progress compare to Ryanair airlines, the belief is that offering good quality services and charge with premium prices. External factors at BA has a range of competitors, the new system in effect with the BA s. BA has the advantage on its competitors, global economic issues will affect the schedule of flights, the cost competition is very much in controlled of BA. “To deal with the cost competition BA is focusing to improve the performance of the service which shall level up for the consumers in terms of cost of the flights (Scribd, 2010)”
Promotion strategy Furthermore, BA has provided different offers during festivals like Christmas, the ticket is known as a BA escape ticket, that mean the rates has been extended to a large number and people who travel in silver and gold class been given the opportunity to upgrade for free, this is available for one way only. The price is compared with a method by which the price
is been calculated. While the company sets the price of the company, the actual figure of the price must be higher than the quality and if the price and quality are balanced then the company would reach its profits soon. People regularly use those services because the quality is as premium class, this kind of strategy is basically used to give competition to various other than airlines which provides the same services. 21389561
Based on the strategic analysis, and the competition BA must face, is important that BA airline will keep the cost to satisfy customer needs. The ethics of BA protects his reputation as a classic example, as a result, both internal and external analysis combined will continue his approach to improve his service quality and to maintain his positions as a market leader.BA will continue with his competence and strengths, referring to Porter conclusion “that competitive advantage frequently comes from perceiving new ways to configure and manage the entire value system”