Marketing Assignment 2
Marketing Assignment 2
Isha Saleem
(F2019001175)
Tuba Yasin
Mustafvi
(F2019001137)
Ayesha Haleem
(F2019001154)
MARKETING FOR
AVIATION
Section:B
University of Management and Technology
Institute of Aviation Studies
Categories the airline products (Qatar Airways, Emirates Airways, and British Airways)
on the basis of the Boston Box Metrix such as (Star, Cash Cow, Wild Cat/Question Mark,
and Dog) and suggest what strategy (s) the airlines need to be adopted.
Boston Box Metrix
The product portfolio matrix (BCG matrix) developed by the Boston Consulting group is
intended to assist in long-term strategic planning. It allows a company to examine growth
potential by looking at its product portfolio and deciding where to invest, terminate, or develop
goods. Collectively known the Growth/Share Matrix. Using data on market growth and relative
market share, the matrix is divided into 4 quadrants.
Question Marks (Products with a low market share in markets with rapid growth)
Stars (products with a high market share in markets with rapid growth)
Cash cows (High market share products in low-growth markets)
Dogs (These are products having a low market share or growth rate.)
Qatar Airways
High
Market
Growth
1
University of Management and Technology
Institute of Aviation Studies
Stars
The Qatar Airways BCG matrix has the financial services, business and first class services lie in
stars. It runs a business in a market with exciting talents. These strategies provide Qatar Airways
with a major portion of its revenue.
Recommendations
The suggested action plan for Qatar Airways is to focus on research and development to
develop fresh features. This product development strategy will make sure that this
strategic business unit becomes a cash cow and generates revenues for the organization in
the future.
The market for confections is one that attracts to consumers and has been expanding over
time. Qatar Airways only holds a small portion of this profitable market. Low reach and
ineffective distribution of Qatar Airways in this market sector are to blame for the low
sales. The suggested choice of strategy for Qatar Airways is market penetration, where
it works to make its product available in additional locations. By doing this, Qatar
Airways will guarantee increased sales and turn this critical business area into a cash
cow.
Cash cows
Supplier management, economy class and foreign foods strategies lies in this segment of BCG
matrix. Qatar Airways has a large market share, but the market as a whole is declining.
Recommendations
2
University of Management and Technology
Institute of Aviation Studies
Although Qatar Airways has a large market share, the industry as a whole is declining as a result
of businesses managing their suppliers internally rather than outsourcing. The suggested plan of
action for Qatar Airways is to stop additional investment in this industry and continue running
this strategic business unit for as long as it is profitable.
The suggested plan of action for Qatar Airways is to make sufficient investments to maintain this
critical business unit operational. If it goes bankrupt and becomes a loser, Qatar Airways should
sell off this important business segment. It is also called as Diversification.
Dogs
In Qatar Airways' BCG matrix, the strategic business unit for plastic bags is a dog. For the past
five years, this critical business unit has been losing money. Additionally, the market in which it
works is declining as a result of growing environmental concerns.
Recommendations
The suggested action plan for Qatar Airways is to buy off this strategic business segment
and minimize its losses as much as possible.
The suggested plan of action for Qatar Airways is to increased investment in the
company so that it becomes a cash cow. If the market continues to expand again in the
future, this will guarantee profits for Qatar Airways.
In the BCG matrix, Qatar Airways' strategic business unit producing artificially flavored
goods is a dog. With the expectation that this market will expand, these products were
just recently introduced. However, many are now avoiding artificial flavors because of
rising health concern. The market is contracting, and Qatar Airways doesn't own a sizable
portion of it. The suggested plan of action for Qatar Airways is to call back this item.
Emirates Airways
Emirates is the biggest international airline in the world, serving 158 cities across 85 nations.
The largest operator of the Airbus A380 and Boeing 777 family of Aeroplan worldwide,
Emirates operates 269 aircraft. One of the most recognized airline brands in the world, Emirates
is known for its luxurious facilities, gourmet food culture with regional influences, award-
winning in-flight entertainment system called ice, and unmatched customer service provided by
its impressive multilingual Cabin Crew from over 130 different countries.
3
University of Management and Technology
Institute of Aviation Studies
Emirates Airways
High
Market
Growth
Low High
Market Share
Stars
Emirates First Class and Emirates Business Class are two services that can be positioned in the
BCG Matrix. Emirates' two core services have a significant market share in the rapidly
expanding market. The company implemented all of the potential in its services, and additional
market share growth will be possible with enough investment in these two services. There will be
more potential for expansion for Emirates Airlines as the appeal and desire for travelling in first
4
University of Management and Technology
Institute of Aviation Studies
and business class grows. A smooth addition to their services is their extra services, which
include free chauffeured transportation to and from the airport. A beneficial impact on their
investments has been provided by additions like the onboard lounges and entertainment systems.
Recommendations
To sustain its great service Emirates should concentrate on maintaining its services on a
worldwide scale while making sure that all of its clients in the Middle East and South Asia
receive quality service and aircraft quality. So, emirates should focus on expansion of their
business and product development.
Question marks
"Emirates Holidays" was just released by Emirates. Although the potential is huge, the new
service has a little market share. Emirates has been putting in effort to boost "Emirates
Holidays'" recognition and market share. Family vacations, vacations, and summer deals to
Dubai, Mauritius, and the Maldives are all doing well. Emirates Holidays is struggling with US
aviation sector competitiveness. Emirates needs to overcome further obstacles if it wants to
dominate the tourism industry. The air travel has frequently been marketed in ads.
Recommendations
Their holiday services have failed to generate income or even hold onto their position in the
competitive marketplace. Emirates should focus on product development strategy and market
penetration to gain revenue in the competitive market. They should provide reasonable deals to
passengers to earn more revenue. Emirates Airlines needs to invest significantly in itself to
remain sustainable and avoid turning into a dog.
Cash cows
The cash cow of Emirates Airline is Emirates Economy Class. It has always had a large segment
of the market, but there is no growth.
Recommendations
Emirates Airlines is frequently used, especially the Economy class seats. The market for
Emirates Economy in Asia is still developing. Emirates Airlines should continue to profit
from its "Economy services" and use the money to add new products and enhance its
brand.
Emirates has promoted their cash cow while also concentrating on giving its customers a
better experience in Economy. Recent economy passengers' experiences with the Boeing
777 have been excellent. It should apply diversification strategy to gain more revenue.
5
University of Management and Technology
Institute of Aviation Studies
British Airways
The UK's national airline, British Airways, has been taking passengers where they want to go for
more than a century. The airline connects Britain with the rest of the world and the rest of the
world with Britain, prioritizing customers, sustainability, and offering best customer service.
High
Market
Growth
Stars
The British Airways BCG matrix has long hauls and EU routes flights services strategies
consider as star. It runs a business in a market with exciting talents. These strategies provide
British Airways with a major portion of its revenue. British airways have high market share in
markets with rapid growth.
Recommendations
6
University of Management and Technology
Institute of Aviation Studies
The process of service delivery requires to enhance in order to improve quality. By using
smaller airports, BA would be able to supply services to customers.
Due to the frequent complaints about baggage losses, British Airways is losing favor with
its customers. A large portion of this role is performed by the logistics department.
Therefore, BA should have effective staff to guarantee that the proper baggage is
distributed at the proper location.
Question marks
Cargo, Indian and Chinese routes of British airways lie in the Question marks segment in BCG
matrix. British airways have low market share in this segment. This segment requires high
amount of cash to gain high market share.
Recommendations
Over the previous few years, British Airways has earned a significant market share with
little growth. They didn't make any significant investment, like growing their fleet or
their destinations, which turned them into a cash cow. However, BA has lately given
greater attention to their growth goals by making orders for new aircraft and expanding
their regional market. So, in this segment British airways should implement product
development strategy.
Cash cows
Short hauls, UK routes and Ireland routes flight services lie in this segment of BCG matrix.
British airways have large market share, but the market as a whole is declining.
Recommendations
Problems with baggage handling systems at airport have also led to passengers seeing
huge delays. So, British airways should also apply product development strategy for
better baggage handling system.
British Airways should not invest additionally in short hauls and UK routes.
British Airways also implement diversification strategy to sustain in market.
Dogs
In British Airways' BCG matrix, the strategic business unit for open skies is a dog. In this
segment both market share and market growth are low.
Recommendations
The suggested action plan for British Airways is to buy off this strategic business
segment and minimize its losses as much as possible.
7
University of Management and Technology
Institute of Aviation Studies
The suggested plan of action for British Airways is to increased investment in the
company so that it becomes a cash cow. If the market continues to expand again in the
future, this will guarantee profits for British Airways.
The other strategies should also implement in case of loss of open skies services are
retrenchment or liquidation.