Marketing Strategy Of Etihad Airways

Introduction

Etihad Airways stands tall as the leading airline service provider in U.A.E ever since its establishment by Royal Decree in Abu Dhabi in the year 2003. The airline company holds the distinction of becoming the fastest growing airline company in commercial aviation. The company is headquartered at the capital city of U.A.E, Abu Dhabi. As far as the Asian destinations are concerned, Etihad covers markets in the Indian sub-continent, Middle-East and South East Asia. Fortunately for the company, all these markets are on a growing spree in terms of their GDP, which facilitate the use of airlines especially in the first class and business class segments. The company officials have guaranteed on time performance of 91% of Etihad Airways. (Etihad Airways, 2010). Etihad  had carried a record amount of passengers and cargo in 2014, marking its strongest operational performance to date Almost 14.3 million revenue passengers flew with Etihad airways last year , a significant increase of 24 % over 2013.The airline’s fleet increased to 110 aircraft at the end of 2014 with the delivery of its first airbus A380 and Boeing 787-9 in December ,with both state of the art aircraft offering new standards in carbon interiors together with fuel efficiency and environmental improvements.(Etihad, 2014)

“Experiencing the same feeling of specialness, wherever the caller lands, is paramount. Our contact centres are the voice of Etihad; essential to achieving that”.

Based from Etihad case study that had been conducted by BT lets talk Bikrin 2014.

Significant trends of marketing Communication

Marketing communications is a management process through which an organization engages with its various audiences.  By conveying messages that are of significant value, audiences are encouraged to offer attitudinal ,emotional and behavioral responses.(Chris, 2009). Marketing communications in particular are always adapting and changing to accommodate changing market circumstances( Egan John, 2007) .The age of old advertising is dead and hybrid model involving online and offline spaces is necessary for marketing and for loyalty program. The majority of airlines have increased their social media budget and it’s becoming easier to analyses the customer .Etihad ‘s Mapped out tool in collaboration with linked-in is good for executives planning business trips. (Guen Li, 2013). According to the market segments and needs of the customers demands the marketing communication should adapt by the definition done by (Egan John, 2007). Marketing communication is the plan to executed by using the tactical elements of the marketing elements of the marketing communication Mix . The marketing mix is the specific mix of advertising , personal selling, sales promotion , public relations and direct marketing (Dolak, 2015).

How Etihad dealing with Marketing Communication?

Etihad is one of the fastest growing airline company in commercial aviation. Etihad had lots of competitors. So to see how Etihad had been doing the Marketing communication, it can be divided into two segments. a .Digital marketing , Social media  Advertising b. sponsorship

a. Digital Marketing , Social Media and advertising

According to Wertime and Fenwick (2008),digital marketing is the future evolution of marketing. Digital channels are addressable , enabling marketers to have a continuous , two –way , personalized dialogue with each consumer.  Etihad had become the latest airline to install remote  Telemedicine technology (Kollau, 2010). The airline is  in  Facebook , twitter ,LinkedIn, Google + and Youtube . Etihad is offering potential customers direct travel trips to attract the customers with promising to respond within 10 minutes to queries on its Facebook and twitter pages with suggestions for hotels, restaurants and tourists attractions worldwide and make bookings via Etihad holidays (Trenwith, 2014).Etihad had developed  Etihad mapped Out service which enables users to message contacts, arrange meetings and displays connections geographically. Specially targeted for business travelers  It’s a new technology which will enable the travelers to be in contact with the Etihad service more closely and personal service will be easy to access through this technology.( Fox, 2013)b.

b. Sponsorship

Most of the sponsor are done in specially in Football and then to the Cricket , golf as well. Etihad had done lots of sponsorship for the promotion of the airline which is specially targeted to the business class people. As a global, innovative and young airline with a  fresh approach to everything we do , we associate ourselves with a large numbers id events and causes that reflect our own position as a catalyst for change. Supporting and promoting the local culture in U.A.E and worldwide for cultural and sporting events with the values if hospitality , team spirit and helping to bring the world bring together. Based on conors football team sponsors. Etihad had sponsored in lots of sport teams and made the stadium as a part of sponsor for the other countries partnership well fare program. Etihad  had sponsored in Football  team including New York FC partnership , Melbourne City Football  Club, Manchester City football Club. AI Ain fooball club ‘s airline partner. In cricket for England Cricket Teams and  Mumbai Indians Cricket teams . Etihad stadium Melbourne Australia, F1 etihad airways abu dhabi grand prix ,  Abu dhabi Golf championship, sport Australia hall of fame , Gaelic athletic association ( GAA ) hurling , Sydney Opera House , National tri yas ( US ) Formua 1 etihad airways abu dhabi grand prix. (Etihad , 2014)

 

Competition

Based from Rodrigues (2010) Etihad airways direct competitors are Emirates airlines and Fly Dubai in U.A.E . Singapore Airline and other international airways would be the direct competitors of Etihad Airways. But due to low cost market strategy Air Arabia is the direct competitors  There are number of other airline services which create market saturation for Etihad. Easy Jet is an example of such service which provides competition to Etihad. (Vedder, 2008).In terms of market segment Air Arabia is the biggest threat to the Etihad as these company are increasing their number of fleets each day, competition is getting even tenser. The Bargaining Power of Customers: This is comparatively low in the aviation industry. The customers generally have to pay the price that is asked. Here, price reduction can be a good way for better market penetration. (Etihad Trumps its Competitors, 2010). Air Arabia market strategy is “ Pay Less . fly more”. Air Arabia enabled customers to make the smart level choice ;those who have been unable to afford air travel in the past to start travelling throughout the region and those who do travel to do so frequently ,benefiting both business and leisure travelers( Uk Essay,2013). Etihad  follows a market penetration strategy as against the skimming strategy by its biggest rival, Emirates Airlines. This gives the company an advantage of lower prices at the availability of same service. Hence, puts it in a better position to attract the market. The company allows an integration facilities like chauffeur driven cars and spa & lounge along with courteous staff provision and multi-cuisine facilities which puts the company in a position ahead of companies like Air Arabia and Oman Air. Also, with the company involved in many promotional strategies e.g.: sponsorship for F1, gives it a better market recognition in the Asian market as compared to the other counterparts like Jet Airways and Fly Dubai.Air Arabia also target passengers who used to drive to nearby countries including Oman , Saudi Arabia and Baharain With the low costs of tickets ,the passengers could spend even lesser flying to these countries than road trips. “Air Arabia” is supposed to be the cheapest among all. It is not recognized to be an airline with the finest ability on board but of course it presents a cheap fare to its clients. The facilities offered by these public airlines to their clients vary drastically from each other. All the mentioned airlines have great contribution to the nationalized economy of the U.A.E. (Group, 2006)

Conclusion

“ As the Public sector Airline of the United Arab Emirates, the company, Etihad seek to replicate the best of country’s hospitality – cultured, warm ,considerate and generous-in totaling to get better the status of Abu Dhani, the capital Emirates as a center of hospitality between West and East :. (Delfmann, 2005)

Etihad manages to accomplish own success while boosting business prospects of their own airline with mutually- beneficial alliances, some of which may not have been able to survive without Etihad’s intervention , or would have been entitled to a more marginal status if some other investors showed up( Pezelj, 2013).Taking the advantages from the collaboration approach to building business has been identified as a way to build the business network .Approximately 20 percent of Etihad’s revenues are generated through partnerships, with the airline operating as either a marketing carrier or the operating carrier. Despite not being a member of a global alliance, Etihad has built an admirable business from bilateral partnerships with individual carriers( Batt, 2013). Overall, the company has the advantage of a better position than most of its rivals in the respective categories. At this point, the company should position itself such that it becomes the preferred carrier in all the categories together as well.

Recommendation

Etihad airways is the young and fast growing airlines in the aviation industry. Etihad should focus on all their passengers rather than to the business class people only. There are lots of people who fly daily in economic class should be treated well as a guest rather than customer. Because of work in luxury segments and passenger unit is down, the company’s market scope is limited , any new competitor and launch of a new luxury aircraft can force the company to drastically change is market statistics, Also the desired customer volume is also limited.( Uk essay , 2013). Compensations and liabilities are delayed or not provide. Etihad should focus on the prompt service to their customers. ( Sadiq, 2003) Etihad needs to re-access its profitability in within particular geographical area. Market penetration is recommended through cutting prices in existing markets and should place the hand in the low budget market competition. Loyalty programs should provide discount to their corporate clients with getting up to date with their customers.the company should provide some promotional offers to their customers.As said customers should be treated equally as a guest rather than customer. Etihad should provide competitive advantages and economic scale, etihad can also strengthen or expand the function of other special aircraft to existing markets to gain profitability. Improving on people and technology strategy is also important.(Kabir ,2014)

References

  • Batt, shane. ‘Etihad Airways : From Good To Great’. N.p., 2013. Web. 2 Mar. 2015.
  • Delfmann, Werner (2005), “Strategic management in the aviation industry”, Published by Ashgate Publishing, ISBN: 0754645673, 9780754645672
  • fox, linda. ‘Etihad Teams With Linkedin For Online Mapping Tool’. http://www.tnooz.com. N.p., 2013. Web. 5 Mar. 2015.
  • Guen, Li. ‘5 Reasons Why Airlines Need To Move Beyond Usual Marketing Tactics To Engage Te Connected Traveller’. simpliflying.com. N.p., 2013. Web. 3 Mar. 2015.
  • Oxford Business Group (2006), “Emerging Abu Dhabi”, Published by Oxford Business Group, ISBN: 1902339428, 9781902339429
  • Kabir, Faisal. ‘Report On Etihad Airways’. 2015. Web. 5 Mar. 2015.
  • kollau, Raymond. ‘Etihad Latest Airline To Install Remote Telemedicine Technology’. airlinetrends.com. N.p., 2010. Web. 4 Mar. 2015.
  • pezelj, ivo. ‘Differentiation In Strategy Key To Etihad Airways Success’. Web. 9 Mar. 2015.
  • ‘Premier League Football’. Web. 4 Mar. 2015.
  • Rodrigues, Joyner. (2010): n. pag. Print.
  • supercustomessay.com,. ‘Adopyed Strategy For Etihad Airays’. Web. 6 Mar. 2015.
  • trenwith, Courtney. ‘Etihad Launches Social Media Travel Tips Campaign’. Arabianbusiness.com. N.p., 2014. Web. 5 Mar. 2015.
  • Ukessays.com,. ‘Study On Etihad Airlines Aviation Essay’. N.p., 2015. Web. 4 Mar. 2015
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