MARKETING PRINCIPLE

Marketing Principle

Marketing Principle

Introduction

In Europe, Low Cost Carriers (LCC) offer extremely cheap fares for flying so that all classes can easily afford them. Low cost carrier or discount airlines offer these fares in exchange for eradicating several services of traditional passenger planes. LCC has revolutionized air travel. All classes are now easily able to afford it. Low cost carriers follow a different type of marketing plan and business model as compared to other types of carriers. The focus of these types of airlines is a very low amount of air fares. The major objective is to keep the fares affordable by all. LCC is required to think of new techniques for ensuring continued profitability and growth. A brief marketing plan for Earhart International Airlines is provided in this study for the growth of it business.

Micro and Macro Environmental Analysis

Micro environmental analysis of LCC in Europe indicates that target consumers exist in Europe as there are several price conscious travellers in Europe. Several other competitors exist in the market. As international business and tourism industry is growing, the business of LCC is likely to grow. Macro environmental analysis indicates that the recent global economic crisis has increased the demand of low air fares in Europe. Several Europeans lay focus on savings, therefore LCC attracts them (Yucel & Dagdelen, 2010, p. 65). The rapid technological advancements provide an enormous opportunity to Earhart International Airlines to reduce its costs by minimizing petrol consumption.

Market segmentation

Earhart International Airlines can use segment bases such as socio-cultural, demographics, and user-related. In the demographics category, income is one of the most important consideration that the airlines can use for segmenting the market. Middle and low incomes people get attracted to low carrier airlines the most. In the social class category, people earning less below to lower social class. The lower social class needs low cost carriers in order to travel by air (Delfmann et.al, 2005, p. 121). In the user-related segment, usage rate is the most significant variable. Low usage rates are typically those traveller than do not earn high enough to dispose of their income in travelling. However, if prices are affordable then low income group can also travel frequently.

Target Market

Middle income and low income earners should be focused by the airlines because they are the ones who are on the look-out for low cost carriers for the purpose of travelling by air. Based on the market segmentation above, two target markets can be selected. One of the target market is the one that earns low income and belongs to lower social class and travels less frequently. The other target market is the one that earns a low amount of income but requires to travel more.

Positioning

As the initial marketing campaign of the airlines failed, the current positioning of the market is not very strong. There are several competitors of the airlines, new entrant Virgin, Jet 2, Ryanair, and EasyJet. They are progressing in their businesses at an extremely rapid pace. Earhart Internal Airlines believes that high efficiency will ...