Marketing

Marketing

YOUR GRADE ON THE FINAL PROJECT WILL BE MADE UP OF THESE THREE PARTS:

Written Marketing Plan 50% (all students receive same ‘team’ grade)

Presentation of Marketing Plan 30%

Team Assessment 10%

Business Lab 10 Hours 10%

Read the case study below and then tackle the question that follow:

The finance director looked long and hard at the latest profit data from Asian Airways. He had to admit to his fellow directors that they did not make happy reading. The reduction in sales revenue, despite the increase in passenger numbers, was the most worrying feature. The battle being fought out between the airline and new low- cost budget airlines for economy –class passengers was resulting in declining revenue and profits. The price cutting and extensive advertising, designed to attract back customers lost to the new operators, was leading to a serious problem for the company. The marketing director, David Da Rosa, had to admit that ‘We have always prided ourselves being the market leader in this region for air travel. Our desire to maintain market share is now starting to cost us dearly. We could continue to cut ticket prices and run expensive promotions in the daily press – but will the extra passengers we attract actually make us any profits? I believe it is time for a change n marketing strategy- based on a new marketing objective. It is time we targeted the profitable business customers with a clearly focused niche objective- not just try to fill seats at virtually any cost’.

‘Do you mean we pull out of the economy segment altogether? That would lead to job losses and poor publicity,’ remarked the operations director. ‘Why not reduce prices once more to see if we can get rid of one of these new operations?’

‘My new marketing plan, ‘said David, ‘will cut back capacity by removing many economy seats from each plane and fitting new reclining seats, computer terminals and other...