This UAE based company in Dubai is one of the largest and most high-class airplane carriers among all airlines in the world. Emirates had started in 1985 with only two aircrafts and climbed its way through success with time and constant improvements, and now owns over 200 aircrafts. It was founded by the royal family in Dubai and grew with partnerships and investments to become one of the world's leading carriers. Emirates is a wholly-owned by the government of Dubai, but the airline is run on commercial basis and receives no financial support or protection. “Our goal is quality, not quantity.” ("History | About us"). “Emirates airlines goals for the immediate future and long term are, to be the best in every venture it undertakes, to meet its customer's expectations profitably, to contribute to the success of Dubai Inc. and to make the city the new global aviation hub for the 21st century.'' Emirates chairman, Ahmad Bin Saied Al Maktoum.
The External Marketing Environment
The marketing department of any business needs to take into account the various social factors and characteristics of consumer groups it is targeting to help with customer satisfaction or increase a product's appeal to those potential buyers. Therefore, for a huge company like Emirates, they have to consider things about the type of customers they're catering like their culture, age group…. etc. for example to be able to respect the timings of Ramadan for Muslims and also to be very careful while offering alcohol when going to Arab countries as it could contain many Muslim passengers. So, emirates; “has many threats to existing products might be increasing, opportunities for differentiation and market segmentation might be emerging. Emirates airline is being affected by the situation of the society in which they are operating. Along with this, emirates airline tries harder to make sure that each society is given equal chances to take advantage of the resources given by the organization. The company adheres to having good reputation and relations in the society that they belong (2004)” (Answers Ltd, 2018).
Demography is the study of people, and to companies and marketers, people are the major part of everything because people make up markets. Emirates has served the demographic factors pretty well from the perspectives of age, location, occupation and many more statistics. Emirates Airlines main goal is to keep the customers satisfied, examples like providing each age group with their own entertainment and providing a special menu for kids and for adults. To conclude, they do seek the pleasure of everyone that deals with them and that's what makes them successful.
With all the economic problems in this world resulting from pollution, global warming, scarcity and poverty, Emirates is really trying to participate in making a better economy with all their foundations; “The Emirates Group Environmental Report builds upon our commitment to the continuous development of environmentally-responsible work practices and eco-efficient operations. The report presents environmental data and improvement initiatives from a range of Group activities, including airline operations, dnata's cargo and ground handling businesses and a wide range of commercial activities on the ground. It also outlines the Group's contributions to biodiversity and conservation initiatives.” (Emirates).
They are now saving 11 million liters of water a year by introducing a new aircraft washing procedure, and they're reducing aviation's carbon footprint by implementing a employing advanced technology throughout their group, including in aircraft and engines; encouraging governments to make air navigation more fuel- and emission-friendly; reducing the environmental impact of their ground operations; and supporting the development of a global sectoral approach to carbon emissions through the International Civil Aviation Organization (ICAO), the United Nations agency for international civil aviation” . They are also working on many more eco-friendly projects and one of the important ones is helping the children in need by donating. All in all, it should be noted that most environmental campaigns in the Airline industry are part of the corporate responsibility strategy within a specific Airline Company. Environmental protection must be considered by all businesses to reduce problems in society.
Technology is shaping our economy with all the wonders it has created, and Emirates is using their technology efficiently with the help of internet. The company is reaching out to their customers all around the world using the internet and it has offered them to book their tickets and to know all about them online, it has also provided facilities in their productions and operations to make their aircrafts and entire company more advanced.
Political and legal Factors
The political laws and regulations are what keeps us as customers safe from companies and unfair business practices, or to protect companies from other companies, and keeps the entire society at the best interest possible. The political environment has little or no effect on Emirates since its founded by the government of United Arab Emirates. Emirates Airlines plays a major role in helping Dubai government achieve its objective of promoting the city as a preferred tourist destination, so since the Dubai government is the sole owner of the company it has gotten many more advantages than the private sectors.
Emirates airlines operates one of the youngest fleets in the world, in the middle east it has already become a widely recognized brand. With their constant upgrades and improvements to satisfy customers it will definitely remain from the top, but Emirates does have several competitors like;
Qatar airlines: originally owned by members of the state's royals but got a new management team headed by Akbar Al Baker. The direct competitor for Emirates would be Etihad Airways: it is also founded in the United Arab Emirates that was set by the Royal Decree and as Abu Dhabi the capital of UAE, its hub.
It's an analysis that will evaluate the company's position by identifying its strengths, weaknesses, opportunities and threats.
1. Global Brand
2. Owned by the government
3. Entering the cargo shipping
4. Meeting customer's satisfaction effectively
5. Continuously upgrading
1. Does not provide many places in the US
2. Does not provide middle class people and the ones on a budget
3. Trying too hard with diversification and not all have succeeded
1. Personalized services
3. To develop more advanced airline and aviation services
1. Etihad Airways
2. Rising fuel costs
Market Segmentation, Targeting, and Positioning Strategies
The product portfolio of emirates airlines is wide and mixed, for example; the Boeing (a wide body airplane) and airbuses. Emirates own the biggest airplanes on the market. However, It does not only provide airplanes, it provides upper class services that caused their huge success. It was the first to put personalized videos in all classes (First class, Business class, economic class) of their airplanes, in addition to showers and much more luxury feeling products and services. What also makes emirates airlines outstanding is the care for its staff as well as their customers. Providing them with housing, and health care.
Emirates airlines operates from Dubai, it manages approximately 3,500 flights weekly. The place of Dubai is very strategic because it's a route linking the East and the West. Emirates airlines have offered a balance in their pricing where it provided low cost for their tickets. The price for their direct flights is reasonable according to many. It is a very competitive in nature when it comes to promotion where its slogan is “Fly Emirates, Keep Discovering.” They also offer discounts on ticket prices to attract more passengers. (Bhasin & Facebook, 2018)
Market segmentation is known as the division of the market into smaller groups with distinguishable needs, characteristics and behavior. The types of groups the market could be segmented into are; Demographic, geographic, psychographic, behavioral. Emirates airlines use the Demographic and geographic the most, but also use the others but not as much. Demographic segmentation is the division of the market into groups based on age, gender, family and all its aspects, income, race, nationality, religion, education and generation (Answers Ltd, 2018).
Emirates airlines segments their age under infants, children and adults.
Tickets for infants are discounted from their parents' fare. You could put in a request for a bassinet when booking a flight or the infant could lay on your lap.
Infants under seven days old are not allowed on flights unless they have got a medical emergency.
Children between 6 and 36 months are able to travel with their car seats only if a separate seat on the plane is purchased for them.
Children between 2-11 years; tickets are discounted from their parents' fare.
Full fares for tickets start from 12 years old and above.
For gender, both genders are users of emirates airlines. As for families, there are no restrictions for them as long as the family is able to pay all fares where needed. Most tourists that use Emirates airlines to visit Dubai are family and single people from the middle east, and other western countries. Customers with income ranging between 4000 and 10000 AED tend to be the most regular customers of Emirates airlines. (Answers Ltd, 2018)
Moving on, Geographic segmentation is when a business decides to operate in one or multiple geographical areas to cater to the specific and different needs of each. Emirates Group operates from Dubai. According to emirates, every year 14 million or more tourist come to Dubai. Emirates airlines could improve in this area of segmentation because it could operate in countries with a higher-class population like United States of America and Europe so that the airline can get a higher market potential and improve. (Answers Ltd, 2018)
In conclusion, emirates airlines use differentiated targeting strategy. According to Newton (2018), A differentiated marketing strategy is when a company creates campaigns that appeal to at least two market segments or target groups, which is successfully shown in the examples above.
Emirates airlines in the Middle East is one of the most renowned brands. Their constant improving of their products and services and the luxury feeling it gives off to the customers is why it has a superior experience. The airline market is huge filled with competitors, so emirates has a several but the most prominent one is Etihad Airways (the national airline of the United Arab Emirates) so it the direct competitor to Emirates Airlines.
Emirates airline offers various in-flight and on ground services. The in-flight services include the services provided to the customers inside the flight. This involves services like travel, in-flight entertainment, crew, comfort and ambience. The on-the-ground services include car parking facilities, waiting lounges, duty free shopping, checking baggage, reservation counter, transportation facilities to the airplane and many others. Along with the physical infrastructure of the on-ground services provided by airport authority, Emirates has its own separate lounges to enhance the satisfaction of the customers (Ulwick & Hamilton, 2016).
Product strategy and concept
Emirates airline provides the customers with low cost tickets, compared to the other airlines. The airline has adopted various pricing strategy in its marketing mix. As put forward by Hollensen & Schimmelpfennig, (2015), the company has approached premium pricing strategy as it offers comfortable and superior services compared to the other airlines. It has built shorter and low-cost routes without any layover. This has allowed the company to place low prices for the shorter route tickets and generated higher revenue. Moreover, in order to accomplish flexible pricing for the seats, Emirates has adopted dynamic pricing policy levying the highest cost per seat.
Type of consumer product
In the words of Hasan & Lessing, (2015), airline products are determined by customer preferences on the basis of frequency and place. Emirates airline initially considered to cater the
needs and demands of the consumers and business located in UAE. However, with Dubai becoming major business hub in Middle East, Emirates has spread its operations across the world. The airline has revamped its cost structure and benefits to accommodate the passengers' needs of cheaper, faster and safer means of transportation. It has incorporated efficient distribution strategy involving the sale of tickets through travel agents and tour operators. Moreover, the airline's website has enabled in buying and cancellation of tickets, rescheduling of flights and sharing information of periodical offers and discounts.
Evaluate brand name
Emirates airline has adopted various promotional strategy for the brand promotion. For their promotional activities, the airline has advertised through various mediums like television, newspaper, websites and others. To reach their targeted customers, the airline has placed advertisement in magazine, billboards and in radio in different languages. Additionally, the airline often generates promotional discounts during off-season to attract tourists from different corners of the world. Their ‘The kids go free' innovation campaign wherein meals, tickets and accommodation has enabled in generating more business by attracting more customers. The services offered are considered best compared to the other airline services and continuous attempts are being made by Emirates to improve them (Husain, 2016).
Pricing of product or service
As the competition in the Airline industry of UAE is very high therefore, the organizations always try to set the price of the services according to the industrial benchmark. Therefore, the Emirate Airlines set the price of services based on the prices set by the competitors (Farouk, Cherian & Shaaban, 2017). If the company increase the price of services without any genuine justification then it can lose its market share, On the other hand if the company decrease the price of its services than it can lose the reliability of the consumers in the market. The consumer can perceive that the quality of service of the Emirate Airlines has been fallen therefore, the company decrease the price of service to maintain the demand in the industry. The company cannot set the price based on the cost because all the other competitors incur the same cost approximately.
Strategies for pricing
The Emirate Airlines uses the customer-based pricing strategies for set an efficient price of the services based on the income of the consumers. The company also uses the service segmentation based on the income and requirements of the consumers. The Emirate airline sale the ticket of the Business class at a higher price therefore, the company also liable to provide good services to the [passengers according their requirements. On the other hand, The Company set a low price for the ticket of Economy class as the requirements of services of the passenger is less than the business class passengers.
As touched on previously, Emirates are known for their creative, and competitive promotion strategies. In almost every corner you look you could find an emirates airlines advertisement that definitely makes you want to book a ticket to somewhere in the world, and that is because they put a huge budget for advertisements to create brand awareness. The usage of traditional promotional strategies is common with them, for instance; Word of mouth, their website campaigns, social media applications, TV and traditional media advertisements.
Chanel of distribution
Due to the development of the information technology the emirate Airlines provides the opportunity to the consumers to purchase the Air tickle online without the help of any kind of middle hand agencies. The consumers can use their computers and mobile internet to confirm their online. The company also provide both thee online and cash payment option to decrease the complexities associated with the payment. The emirate Airline also take the help of Travel agencies to sell their Air ticket to the consumers (Morrison & Mason, 2016). The travel agencies also help the company to promote the services provides to the consumers by the emirate Airline for the comfort travelling. The travel agencies are also motivating people to buy the ticket of Emirate Airlines through providing information about the difference between the service qualities and the features associated with the service. The travel agencies also provide the services associate confirmation and cancellation ticket.
Intensity of distribution
As the fleet size of the emirate Airline is very large therefore, the company never face any kind of crisis associated with the place for the passengers. The company also increase the number of flights during the high demand season while the demand of services is very high in the industry (Qasim & Qureshi, 2018). The company also capable to manage any kind of emergency situation associate with the high demand of services. The marketing and promotion policy is also very efficient to attract more passengers as much as possible.
Emirates airlines social responsibility policies include philanthropy and sustainability. The company has focused on charitable works by starting Emirates foundation programs in 2003. The company has looked forward to the welfare of the society and concentrated to developing the areas of health, education and food for the people of underdeveloped countries like Bangladesh, Sri
Lanka, Kenya and many others. The company has also started conservation projects to preserve the plants and animals in the desert. More than 17,500 indigenous trees have been planted for the welfare of the eco-system (Duthler & Dhanesh, 2018). The company has initiated projects like wastewater management, rainwater harvesting, renewable power projects and bio digester in many different countries like Tanzania, Senegal and in Brazil. Emirates have also developed a culturally diverse workplace of its employees, who belong to various backgrounds. The company motivated the workforce with incentives and arranging extracurricular activities. The company's employees are provided with skyward proposals to create awareness to society about environment sustainability. Emirates has adhered the environment sustainability by adopting fuel efficiency strategy and carbon emissions measurements. The airline has increased its fuel efficiency by effectively targeting the fuel amount of every 100 km distance. Moreover, the company has reduced its carbon emissions by reducing the level of carbon footprints. The waste recycling promoted by Emirates has resulted in waste collection from flights and recycle paper, aluminum cans, cardboards and other items for future use (Kukunuru & Singh, 2017).
Emirates Airlines is a Dubai based subdivision of Emirates Group. It is one of the most renowned airlines in the world and the leading airline in the United Arab Emirates and the Middle East. It provides flights to over 133 cities around the globe. Emirates Airline stays ahead of its competitors where it keeps on trying to improve their products and services to give out the best quality to its customers and to have their loyalty. It is paving its way by using all the marketing strategies to their fullest in addition to giving the best prices and capturing their customers attention with their advertisements. And to stay beloved by the society it's providing the absolute best and being on top of its philanthropic responsibility and being aware of sustainability as well.
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