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March 28, 2009

WestJet Airlines: Initial Segment Rating – From Marketing Point of View

By Muhammad Afruzur Rahman in In Depth | 2 comments

Most companies no longer aim a single product and marketing program at the entire market. Instead they break the market into homogeneous segments on the basis of meaningful differences in the benefits sought by different groups of customers. Based on this they tailor a product or service that provides a perceived value for that segment. But, not all segments represent equally attractive opportunities for the firm. Even before starting there journey in 1996, WestJet airline have prioritize target segments by their potential, evaluated their future attractiveness and their strengths and capabilities relative to the segments’ needs and competitive situation. In this Marketing Management Report Exercise a segment rating chart will be drawn to show WestJet’s market attractiveness factors in comparison with its competitor Air Canada. Using that chart, one market attractiveness factor of WestJet and one competitive position factor will be discussed in details.

Assessing the WestJet Airline’s Market Segment in 1996

Weight

Rating (0-10 Scale)

Total

Market-attractiveness factors

Customer needs and behavior: unmet needs? (need for cheap, fun to fly with airline)

0.6

10

6.0

Segment size and growth rate (People who drive to meet with friends and families)

0.2

7

1.4

Macro trends (Demographic, economic, technological)

0.2

8

1.6

Total: Market attractiveness

1.0

9.0

Competitive-position factors

Opportunity for competitive advantage (Air Canada expensive to fly with and not fun)

0.5

10

5.0

Capabilities and resources (Air Canada’s expanded network: small and larger communities)

0.3

5

1.5

Industry attractiveness (Threat of...