Business 620 - Market Plan - Week 6

Abstract

Within the last 15 years the airline industry has changed tremendously. Since the middle of the 1990’s new kinds of airlines have emerged on different markets such as the low-cost carrier. The airline industry has also seen an increasing number of mergers, take-overs, and different types of alliances. While it used to be clear which business model provided what kind of service there are now airline carriers which has increased the number of choices for an airline consumer. The distinction between the different types of business models has changed and is no longer as clear. These aspects are reason enough to analyze the specific different business models and what might be the influencing factors for change within these models. (Zentrum, 2008)

Flying on a Full-Service Airline As Opposed To a Low-Fare Discount Carrier

Introduction

What is the difference between a full-service airline and a low-fare discount carrier? A full-service airline will provide their consumers with all types of facilities which make their journey comfortable and hassle free. A low-fare discount carrier or low-cost airline will not offer their consumers many options and all prepackaged snacks are usually available to consumers for a price but low- cost airlines are a better option for consumers who do not wish to spend a lot of money on their flights. To make up for lost revenue from decreased ticket prices a low-fare airline may charge extra for food, priority boarding, seating allocating, and baggage. (Full Service Airline vs. Low Cost Carrier, Low-Cost Airlines) How would a full-service airline market their product in order to retain current consumers as well as establish a new market for new consumers? This can be done by establishing a new marketing plan, knowing a description of the target market and competitors, having a description of what the full-service airline offers, having a marketing budget and price strategy....