MARKETING

Company Case: Fly Dubai Pricing Strategy

Company Case: Fly Dubai Pricing Strategy

Summary

FlyDubai was said to be established by the prime minister of UAE known as Sheikh Mohammed bin Rashid Al Maktoum in the year of 2008. Fly Dubai had its very first flight to Lebonan in 2009. Considering that, it is owned by the Dubai government completely the flight is said to enjoy full advantages in the Terminal 2 of the Dubai Airport as compared to its local and international competitors. Fly Dubai was established as well as introduced when the economy was going through rough times in the 25 years of its existence. It was introduced at a time when the oil prices were declining and at the same time, the country was bound to have a negative GDP. Any other airline would have never opted for a time that was so critical but Fly Dubai was introduced. Since the airline was a low cost oriented airline it was bound to be introduced at, a time when it was needed the most by the frequent flyers.

Segmentation

Based on the degree of development that was bound to take place in UAE there was a need for labor and considering the sensitivity in price the target market had due to financial stability they were a market to be targeted and were a ranked at a primary level. Secondly, the economic boom that the businesspersons always opt for is another factor based on which entrepreneurs could travel back and forth; they were also an ideal target market to opt for. Thirdly, students who travel back and forth either coming to study in UAE or coming to visit their families from abroad are another ideal target market. Fourthly, considering the massive developments that were taking place in UAE tourists are bound to visit and since they are highly price sensitive they are bound to opt for low cost flights. Fifthly, the economic recession was bound to continue for 3 more years at that time eventually resulting in more price sensitive consumers who would eventually opt for low cost price tickets. Since the expected demand of the flight was, so much they had plans to increase the number of fleets from 5 to 54 in totality.

Answer-1

Dubai is said to be the most vital trading hubs because the rapid growth that is taking place in it. The feature of rapid growth has attracted numerous multi-national companies to establish their regional offices. It boosted the economic growth of the company and at the same time opened gates of the local businesspersons to establish trade at an international level. This trend in turn established a need to introduce a low cost airline to frequent flyers. The major airline that dominated the airline industry was Emirates, which has had a huge impact on the economy of the country. The businesspersons were in need of a low cost airline and it was based on this premise that Fly Dubai was introduced.

Penetration Pricing

Fly Dubai has focused more on pricing and ...