Monday, 22 May 2017

Overview of the Company

Background of the Company

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Emirates Airlines is a subsidiary airline group of the Emirates Group that is based in Dubai United Arab Emirates. The airline is owned by the government of Dubai running on a commercial basis while receiving no financial support or protection. It was started in 1985 operating with only 2 aircraft, overtime growing to having 240 over aircraft and becoming the biggest airlines in the Middle East having over 3,600 flights per week to more than 140 cities in 81 countries across 6 different continents. It also has 200 over aircraft in order worth more than US $110 billion dollars. The airlines is also responsible for carrying an average of 2.5 million tonnes of cargo yearly and 6,800 tonnes daily.



The industry/industries that the company operates in

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Emirates Airlines operates in the Airlines industry providing air and ground transport services for traveling passengers. The Emirates Airline have also sponsored sporting events such as Cricket Australia, FIFA World Cup, Rugby Super League and many more.

Product and Services

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Emirates provides air transportation services and carries an average of 2.5 million tonnes of cargo yearly and 6,800 tonnes daily. The product that they are selling to the passengers is the experience on board their aircraft providing ranges of services from entertainment, comfort, Wi-Fi and food. They have over 2,500 channels to choose from ranging from Movies, TV shows, games, music, news and many more. While first class passengers can enjoy mid-flight showers and a transformable seat which can be turned into a bed to stretch out in addition to their large spacing as leg room. They also serve food which are kid-friendly, healthy, multi-course and a robust variety of choices to cater to our every needs.

Customers/Client, Target Market

Demographic

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The target market for Emirates Airlines is mostly made up of business related personnel and corporate, as they have more extra money on them which makes them more likely to spend on traveling in comfort when they go overseas for business. 

While corporate frequently send their staffs and personnel overseas to meet clients and for meetings, they are the optimal target market for Emirates Airlines since they can provide their staffs with quality services while they travel. 

As compared to other types of customers such as families, couple and average income people they are less willing to spend more money on travel comfort as the money spent can be used on other things such as accommodation and expenses. Since every flight ranges from a few hours to ten over hours, people would rather take budget airline flights instead since they would only have to sit in the plane for a short while and spending on premium pricing just for a few hours of comfort is not worth it for them. 

Business related flyer would average ageing around 30-50+, while the other groups of people in this age range such as Generation Y are in need of comfort when they travel as they are older and they need more care and attention. While young adults and families that wants to travel will opt for Budget Airlines which provides the purpose of transporting you from one destination to another, which is very straight forward and cheap removing the extra services such as Wi-Fi, leg room, meals and entertainments overall making it a cheaper alternative if you just want to travel with low cost.

Hence, Generation X and Generation Y makes up a large percentage of the customers for Emirates Airlines since they can and are more willing to spend extra on services such as Wi-Fi, leg room, meals and entertainments just so they can travel more comfortably.





 Psychographic

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Most of the customers who flies with Emirates Airlines are people from the working class, middle class and the upper class. Since most of them will most likely have money to spare on paying for premium pricing for the extra services such as Wi-Fi, leg room, meals and entertainments. 

Working class customers will have to fly regularly to meet clients and go on business trips so flying in comfort is a must for them and is not unusual. While middle class and upper class customers are mostly people who are from generation X and Y they would likely to be travelling after their retirements or travelling on holidays, and since they are older and desire comfort they will be more willing to pay premium pricing to fly in comfort. 

Emirates is considered a commercial flight and it boasts to have the best prices for their seats, hence when people from Generation X and Y chooses to fly with premium pricing they would obviously go for the one which is cheapest yet offers good services. Which is why they will opt for Emirates instead of other commercial flights.

Competitors

Who are they?
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https://upload.wikimedia.org/wikipedia/en/thumb/e/e4/Jet_Airways_Logo.svg/1280px-Jet_Airways_Logo.svg.png 
https://upload.wikimedia.org/wikipedia/commons/thumb/8/8d/Air_India_Express_Logo.svg/2000px-Air_India_Express_Logo.svg.png


Since Emirates Airlines is a premium airline for Upper and middle class passengers operating in the Middle East, there are various other international flights which is a threat to Emirates Airlines such as Etihad Airways, Qatar Airways, Jet Airways and Air India Express. These airlines are also premium airlines operating in the Middle East for Upper and middle class passengers, hence if there are any problems with Emirates the passengers can instantly change to their competitors which makes it so that there is no brand loyalty.





Strengths
1. Emirates Airlines is well known for its service standard and making the passengers feel at home resulting in satisfied customers and is a preferred airline of customers, so that customers will choose to fly again with Emirates again. Emirates is known for their services due to the quality of the service structure and the well-trained staffs, making passengers choose them when they are having long distances flights even landing them the Best Airlines Award in 2017.

2. Emirates Airlines is related to the Dubai Government and hence is backed by them for funding. Which means that if by any possibility, Emirates Airlines encounter any economic crisis or problems which they cannot handle by themselves the Dubai Government will step in to help them. However, it is very unlikely that they will encounter any economic problems and with the backing of the Dubai Government it makes Emirates Airlines very reliable and consistent.

3. The number of employees working under Emirates Airlines is 50,000 over which is a strength for Emirates Airlines as it allows them to be a strong and efficient work force. Allowing them to better serve the customers and make sure that their services is the best among the best.

Weakness
1. Emirates Airlines is situated in the Middle East, hence frequent competition with their rival airlines in the Middle East such as Etihad Airways, Qatar Airways, Jet Airways and Air India Express is a weakness to Emirates Airlines. As it means that they will have limited market share growth and have to share their market shares with their competitors. They also have to maintain their high standards which is very costly just so they can differentiate with their competitors.

2. The Airline relies heavily on the International Onward Moving Traffic, meaning that the amounts of passengers that they take and the amount of revenue they earn is based on the peak and seasonal period for traveling.

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Opportunities
1. Emirates Airlines should leverage on their brand-new fleet, as this will give them the edge when the customers are choosing between them and the competitors. As they have something which the other airlines do not have, they can leverage it to attract more customers. Meanwhile improving the customer’s confidence in the airlines since newer airplanes have lesser faults as compared to other airlines with older airplanes.

2. Increase the range of international destinations that they provide which is popular amongst the customers. Due to the increase in various new industrial zones of different countries, there is a rise in business activities. Hence, Emirates Airlines can use this opportunity to increase the amount of flights to these destinations bring in more passengers which results in more revenue.


Threats
1. Etihad Airways, Qatar Airways, Jet Airways and Air India Express is considered a threat to Emirates Airlines. As they are also operating in the Middle East and are providing international flight services for Upper and Middle class. They provide similar types of services, hence customers can switch to another airline if they choose to. However, Emirates Airlines have good reputation on their services which gives them an edge when compared to their competitors.

2. Increasing fuel costs is a threat to Emirates Airlines. As an increase in fuel cost would mean an increase in the rate of their tickets, which means that customers might opt for competitors and other kinds of airlines such as budget airlines due to their cheaper ticket prices. This would result in a loss of revenue for Emirates Airlines.

Sponsorship Involvement


Past and current sponsorship
The company have been actively involved in many sports events in the past and in the present. The types of sports that they sponsor are popular sports such as Football, Rugby, Tennis, Motorsports, Horse Racing, Golf, Cricket and many more.



Possible objectives for its participation


Emirates Airlines seeks to create and increase brand awareness through their participation in sports events. As sports is a highly popular source of entertainment, as seen in the poll by Gallup Seventy-two percent of 18- to 29-year-old are sports fans. (Carroll, 2005)”. This shows that which such a large percentage of the population viewing the sports sponsored by Emirates Airlines, it is very likely to be noticed resulting in increased awareness for Emirates Airlines. 

Also, they do not just randomly choose a sport to sponsor but based on which sport is the most popular. As seen in the following lines of the report Football is Americans' favorite sport to watch; 37% of Americans mention football when asked without prompting to name their favorite sport to watch. (Carroll, 2005) it shows that Football is a very popular sport which is likely why the focus of sponsorship from Emirates Airlines is on football to ensure that it reaches more audiences and potential customers. As seen in the following lines A partnership with the Asian Football Confederation allows Emirates to be visible within the important markets in Asia. (Emirates, n.d.)”. this further proves that the objectives of sponsorship is so that the brand can be more well-known increasing its Brand Awareness.

Image Enhancement


The other possible objectives for sponsorship is for Image Enhancement, Emirates Airlines hopes to reinforce their current image of being the World’s Best Airline and keep its reputation for its services. As seen in the following lines Emirates Airline is well-known for its services and the passengers feel home while traveling in this airline. (Haseeb, 2015)”. Hence, by sponsoring in sport events that are largely viewed by people around the word they get to reinforce their image of being a good company as their brand image. As seen in the following lines of the official site We believe sponsorship are one of the best ways to connect with our passengers. They allow us to share and support their interests and to build a closer relationship with them,” he said. (Emirates, n.d.)”. This supports the view that their objective of sponsoring these events is for Image Enhancement, letting the consumers have the impression that they are a good company.

Sponsorship Recommendation and Justification

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Since the marketing objectives of Emirates Airlines is to increase Brand Awareness and Image Enhancement. As seen in the following lines A partnership with the Asian Football Confederation allows Emirates to be visible within the important markets in Asia. (Emirates, n.d.)”. Shows that their objective is to be more known throughout the world and hence Mega Events would be the most suitable for it. 

Mega Events are events that means large or huge, or more precisely “1 million” in matrix system and impact whole economies. Some examples of Mega Events would be Olympics, FIFA World Cup, World Expo. 

Since these events have a wide number of audiences and has a lot of media attention it is suitable for Emirates Airlines. As the main objective is to increase Brand Awareness and Image Enhancement, they would need the events that they are sponsoring to be on a very large scale and attracts a lot of media attention making them more visible to the various types of markets. Hence, events such as the Olympics for example is a very good choice as it is an event that happens every 4 years and has a very deep and meaningful meaning behind it. Overall helping Emirates Airlines create the desired Brand Image and increase Brand Awareness.

References

Emirates Singapore. (n.d.). Retrieved May 22, 2017, from https://www.emirates.com/sg/english/

Emirates Sponsorships | Our Company. (n.d.). Retrieved May 22, 2017, from https://www.emirates.com/english/about/emirates-sponsorships/sponsorships.aspx

Our Company | About Emirates. (n.d.). Retrieved May 22, 2017, from https://www.emirates.com/my/english/about/

SWOT Analysis of Emirates Airline. (2015, November 20). Retrieved May 22, 2017, from http://marketingdawn.com/swot-analysis-of-emirates-airline/

Gallup, I. (n.d.). Sports. Retrieved May 22, 2017, from http://www.gallup.com/poll/15421/sports.aspx

Jasper, B. C., Rosen, B. E., Skift, D., Press, A., & Deena Kamel Yousef and Richard Weiss , Bloomberg. (2013, July 08). Emirates, Etihad, and Qatar build brands through sports sponsorships. Retrieved May 22, 2017, from

Z. (n.d.). Emirates SWOT Analysis | USP & Competitors | BrandGuide. Retrieved May 22, 2017, from http://www.mbaskool.com/brandguide/airlines/534-emirates.html

Emirates Best Price Guarantee | Emirates Online Booking and Planning. (n.d.). Retrieved May 22, 2017, from https://www.emirates.com/sg/english/plan_book/emirates_best_price_guarantee/emirates_best_price_guarantee.aspx

Z. (n.d.). Jet Airways SWOT Analysis | USP & Competitors | BrandGuide. Retrieved May 22, 2017, from http://www.mbaskool.com/brandguide/airlines/437-jet-airways.html


Z. (n.d.). Etihad Airways SWOT Analysis | USP & Competitors | BrandGuide. Retrieved May 22, 2017, from http://www.mbaskool.com/brandguide/airlines/525-etihad-airways.html