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Egypt Air Strategic Marketing Plan


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Egypt Air Strategic Marketing Plan

  1. 1. satisfaction It is no longer enough to satisfy customers. You must delight them. It is more important to do what is strategically right than what is immediately profitable.
  2. 2. -EGYPTAIR is the world-famous, national airline of Egypt, based in the city of Cairo. -Over 75 years, has experienced,When EGYPTAIR started operation on 7th May 1932. -Its 2 aircraft carrying 4 people between Cairo and Alexandria. -In 1960 it was the first in the Middle East and Africa to use the Comet C-4 jets.
  3. 3. -Currently, EGYPTAIR has73 aircraft serving 85 destinations in 60 Countries with over 1200 weekly flights. -The airline has stakes in %)60(Air Cairo %)20(Smart Aviation Company %)100(Air Sinai -
  4. 4. -In 2004, EgyptAir became the first IOSA certified airline in Africa. In 2006. -Egypt Air rated as a "3 Star Quality Certified Airline". -In 2007, EgyptAir's passenger traffic increased by 21% to 7.8 million passengers. -In 2008, EgyptAir's passenger traffic increased by 6% to 8.2 million passengers. -EgyptAir became the 21st member of Star Alliance in a ceremony held in Cairo on 11 July 2008.
  5. 5. Transport and travel to specific destinations. Transportations and planes. : Prepared them with planes
  6. 6. Defining Target Market Needs, Wants, Demand S E g m e n T I n g T a R G e T I n g P o s I T i o n i n g Marketing Research Marketing Mix 7Ps Product Variety Quality Design Featurs Brand Packa ging Size Servics Warrany Return Price Price List Discouns Allowanc es Payment Credit Place Channels Coverage Assortnt Location Inventory Transpot Promotion Promotion Advertsing Sales Force Public relation Direct marketing People Competence Reliabiltiy Caring Attitude Goodwill Process Custome r focus IT support Experien ce perflght Inflight postflight Physical Evidence On ground In flight
  7. 7. Marketing research in the early days, to increase sales than to understand customers Over time, marketers increasingly recognized the importance of understanding buyers, Focus groups, questionnaires, and surveys. According to an old Spanish saying, “To be a bullfighter, you must first learn to be a bull.”
  8. 8. A Five Steps Process Define the Problem & Research objectives Develop The research plan Collect the information Analyze the information Present the findings Evalioute
  9. 9. What information do I need? Actually we was asking about both the Advantages & the Disadvantage . Why do I need this information? We need that information so we can Investments for the advantages , and find Solutions for the disadvantages. Define the Problem & Research objectives
  10. 10. Develop The research plan Data Sources Research Approaches Research Instruments Sampling Plan Contact Methods Designing the Research plan calls for decisions on:
  11. 11. Data Sources Internal Sources External Sources Customer Services Booking Services Customers Web Reports
  12. 12. while I was at the Egypt Air Travel Agency, I watched a situation .. A customer was upset becouse of ignorying him and late to book a ticket becouse of problem at the reservation program system Research Approaches
  13. 13.  They all gathering on they have Delay situation with the Egypt airlines.  No enough places for hand-bages.  Lies.  Very old plane.  The uncomfortable , Stains and Trash.  Monitors bad quality. Research Approaches
  14. 14.  Unfriendly crew  Food and Services below Star Alliance standard.  No seat allocation even though I have been confirmed by the agent  Unorganized process  The plane was dirty  Bad Image.  Business seats 45⁰ with no leg support legroom was quit poor to put a laptop  Lights didn’t work.
  15. 15.  Crew appeared tired and upset.  Lavatories dirty and bad.  Entertainment system 10 years old.  Crew was smoking on board.  Passangers askes ,crew ignored  It was cold and no enough blankets.  They had a problem with their computer booking system.  Windows seats.  No one said thank you or good bye
  16. 16.  It’s cheap.  Hours magazine  Staff were good with family  The best pilot Research Instruments
  17. 17. We appled the research with around 25 passangers and 2 travel agency Sampling Plan PassangersTravel Agency Probability Where sampling error could be measured • Cluster Random Sample (Area) Non Probability When cost & time in Probability sampling is high • Convenience Sample (Accessible)
  18. 18. Contact Methods Arranged Interviews Intercept Interviews
  19. 19. Collect the information Analyze the information Present the findings Evalioute
  20. 20. 1. Star Alliance. 2. Direct distenations. 3. Features. 4. Capital. 5. Government Company. 6. The best pilots 1. Personals. 2. Services 3. Delay. 4. Technical problems. 5. Image 6. Aircraft 1. New distenations. 2. Tourism attractions. 3. Market shar 4. Event. 5. Economy crises. 6. Social rules 7. Social Club 1. Other Companies. 2. Weather forcast. 3. Natural crises. 4. Privatization
  21. 21. Our vision is to reflect our external appearance Of the Egyptian civilization , progression and culture expressing about Egyptian role for The World Nations. To Cearte value for our customers through present a full life on our planes and enhance the relashinship between the customers and our employees to serve them better.
  22. 22. Internal & External Enhance & Enlarge Increase & Growth Increase staff motivation& Professionalism.
  23. 23.  Market segmentation: - Who - What - How - When - Where - why  Effective segmentation: 1-Measurable Africa 8m, asia 58m, Europe 74m, N.A 101m, S.A 24m. 2-substantial 3-accessible 4-differentiable 5-actionable
  24. 24. According to regions as they differ in habits, needs and languages. Income (classes)
  25. 25.  Segment attractiveness: Economic class -is profitable -have large size -have low risk -have huge market.  Company’s objectives: Economic class will obay our bjectives in the future.
  26. 26. Egyptair market coverage strategy: is concentrated marketing. Airplanes services are offered to: 1-domestic distinations 2-africa: e ,w ,n & s 3-asia: c , e , s , se, sw 4-europe 5-north america
  27. 27. M1 M2 M3
  28. 28. Types of Product : Our Product is more than a Services. Customer Segmentat ion Market Selection/ Focus Targeting Value Positioning Product Developm ent Service Developm ent Sourcing Making Pricing Distributing Serving Sales Force Sales Promotion Advertising Choose the Value Provide the Value Communicate the Value Value Creation and Delivery Sequence Strategic Marketing Tactical Marketing
  29. 29. The current aircraft of Egypt Air 73 planes, comparison between the other Airline,the squadron of Egypt Air need supporting ,we planing to reach the aircraft force to 223 planes through the next 10 years. So …. We thought we can support our aircraft by two ways :
  30. 30. 1- Buying 9 new plane a year, this new aircraft will have a remarkable features,They will be the types of Boeing 777 & Boeing 737 which will allocated to the International Journey or Trips. 2- Buying 6 planes of Embraer 1000 & Embraer 190 for the domestic trips and for the new branch of Egypt Air.
  31. 31. The new aircraft will ramarkable with a special features which will make Egypt Airline one of the top ten Airlines in the world. the Helium Seats will coverd with a nutural soft leather and that will make the passengers feels like they rest on air .
  32. 32. ( Cabins & Special Seats ) we will have a new Unique Furniture : The cabins will have a privacy and many equipments like DVDs, handfree and mic etc …
  33. 33. The seats will provide with 180⁰ expand and electronic tools
  34. 34. Sleep Cabins for the very long destinations, Also it will have Helium bed , and all the relaxing equipments.
  35. 35. The new aircraf must provided with Satellite Internet Wireless for busniess operations.
  36. 36. The new aircraft will have An Operating System so the passengers can make a phone calls for anywhere they want , and we gonna make a ( Telephone Cart System )
  37. 37. (Restaurant on Plane) we will make a movement restaurant for every flight , which will remarkable with it variety and delicious foods
  38. 38. We gonna devote a part of the new planes for sleep cabins for the long destinations,So the passengers can sleep comfortably and even don’t feel that they are travelling. The sleep cabins must contain a very comfortable Helium beds with DVDs and Luxury tools. At first this Class will be 20% of the new planes at the first stages.
  39. 39. The first class on the new planes will divided into two seats types ( Cabins & Seats ) they will be able to stretch to 180⁰ with a privacy spaces. Every seat will have a DVD screen and remote control,even there is a control panel on every seat. The DVD screen will announce at first the Safety Instructions, It will have an information about the destination,after that he can watch several channels (( News, Animals, Business, Entertainment … etc ))
  40. 40. Also we gonna have the latest Movies from different cultures, So he can make a choice. Every seat will have a brochure for the destination where he go , and he can take it with him after fligh Many different magazines, papers and books And will have a mic and handfree to enjoy listening the music
  41. 41. The busniess class is higher than the economy class and lower than the first class The busniess class also will divided into two kinds : Seats & Cabins both of them will enjoy with satellite internet wireless, So they can follow their busniess , Also the seats will enjoy with DVDs,brochures,180⁰ seats and medial level of luxury.
  42. 42. we will have an economic class but not an economic class it will improve and develop class. We will provide it with DVD screen and a comfortable seats with 180⁰ dgree to extand.
  43. 43. Accirding to the current economic situation by the reason of financial crises, IATA announced that the airlines demand will have asharp decline becouse of that crises. So we thought that we can establish .. .. .. ( Egypt Air Economy Airlines ) We will dedicate 16 planes at first to serve that new company, the first stage this company will serve the Domestic & The Middle East destinations, untill the company become 40 planes or more, after that it can the other
  44. 44. Destinations in all over the world, and we will develop those old 10 planes and prepare them to be in a good shap and good services. The new palnes of embraer 1000-190 will divided into two 3 levels : It will have all the facilities of the luxury egypt air business class with the internet and Helium seats.
  45. 45. It will be between the business class A and the economy class, but will enjoy with business facilities with internet. Will be sheep & clean and suitable for a new economy class.  Actually we gonna use our new economy company to support the Hajj and Minor Hajj
  46. 46. The food and beverage gonna divided to different levels up to every class We will improve our food services with a better quality. The first class will serve by the best and delegious food and beverage we can present which make the passangers will enjoy having meals. Even the busniess & economy class will have a good quality of food and beverage and they can make a choise from a variety menus.
  47. 47. Babies will enjoy travelling with us . We will divide the babies into to ages stages • Babies between 4 to 12 years will dedicate a place to them prepared to have fun and play. • Even they could have a kids books to read with their family, and animation movies for them. • Babies under 4 years will set up a special seats for them to be close to their mamas,and special toys and tools for them.
  48. 48. A rescue crew trained well on how to save the passangers at the dengerous situation with the rescue tools. With the rescue crew on the plane we must have a medical care crew to make sure of our customer care and health , which will be trained well about all the hard condetions could happened.
  49. 49. We designed a part of the plane to show our offering on the plane where the passanagers can make a shopping It will began with a nerrow limitation nad if it makes a good processing , we will enlarge it to be a full shopping services.
  50. 50. PRODUCT IMPROVEMENT PRODUCT DEVELOPMENT MARKET DEVELOPMENT PRODUCT Differentiation Existing Product New Product New Market Existing Market
  51. 51. P.Kotler: Watch the product life cycle,but more important watch the market life cycle.
  52. 52. Egyptair market objectives: market share High lowest price price quality leadership high price expensive R&D. market positioning Market Leader Quality leader
  53. 53. LE 15 occasions LE 10 LE 15 LE 10 50 150 100 105 quantity per price quantity per price
  54. 54. : max. current profit& market share : from the past. : fixed, variable, total & average cost. : use markup pricing method.
  55. 55. Upon value: 1st,business & sleep classes upon cost : 2nd& economic classes.
  56. 56. Advertising Sales Promotion PR Personal Selling Direct Marketing Print ads Contest, games Press release Sales Presentation Catalogs Broadcast ads Lotteries Speeche Sales Meetings Telemarketing Billboards Gifts eminars Incentives Email Display sign Samplin Sponsorship Trade Shows Tel Packaging-outer Trade Charities Fax Packaging-insert Rebate Events Mailings Motion Pictures Coupons Co. Magazine E-shopping Brochures Low-interest-finance Lobbying Point-of-purchase-display
  57. 57.  Print and broadcast ads  Brochures and booklets  Posters and leaflets  Billboards  Display signs  Symbols and logos  Internet
  58. 58.  Premiums and gifts  Fairs and trade shows ( Dubi )  Exhibitions  Coupons  Rebates  Low-interest financing  Entertainment
  59. 59.  Build image  Handle crisis  Media coverage  Authentic and credible  Wide reaching  Can be dramatic
  60. 60.  Sales presentations  Sales meetings  Incentive programs  Fair and trade shows
  61. 61. Sales promotion ‫المبيعات‬ ‫ترويج‬ Personal Selling ‫الشخصى‬ ‫البيــع‬ Advertising Public Relations ‫العامة‬ ‫العالقات‬ Introduction ‫المنتج‬ ‫تقديم‬ ‫مرحلـة‬ Growth ‫المنتج‬ ‫نمو‬ ‫مرحلة‬ Maturity ‫والتشبع‬ ‫النضج‬ ‫مرحلـة‬ Decline ‫االنحدار‬ ‫مرحلة‬
  62. 62. Africa Algeria Cot D'ivoire Eritrea Ghana Kenya Libya Nigeria South Africa Sudan Tanzania Tunisia Uganda Australasia Australia Hong Kong India Japan Korea Malaysia Pakistan Philippines Singapore Taiwan Thailand Europe Austria Belgium Cyprus Denmark France Germany Greece Hungary Italy Netherlands Poland Russia Spain Sweden Switzerland Turkey United Kingdom Middle East Bahrain Iraq Jordan Kuwait Lebanon Oman Qatar Saudi Arabia Syria United Arab Emirates Yemen Arab Republic North & South America Argentina Brazil Canada U.S.A.
  63. 63. Abu Simbel - Abu Simbel Airport Alexandria - Alexandria International Airport Assiut - Assiut Airport Aswan - Daraw Airport Cairo - Cairo International Airport Hub Hurghada - Hurghada International Airport Luxor - Luxor International Airport Marsa Alam - Marsa Alam Airport Marsa Matruh - Mersa Matruh Airport Sharm el-Sheikh - Sharm el-Sheikh International Airport Sharq Al-Owainat - Sharq Al-Owainat Airport (operated by EgyptAir Express)
  64. 64. BCG Matrix – Growth Share Matrix High High Low Low Relative Market Share Problem Children DogCash Cow Star Market Growth Rate
  65. 65. Competitive Advantage High High Low Low Relative Cost Outstanding Success Maintain Cost advantage Hope for market growth Maintain Specialty Degree of Differentiation
  66. 66. Tendency to Buy Undifferentiated Well-Known Unique Un-known Product Characteristics You have it made Sales, Advertising and Branding are keys Focus differentiation Required (Product/Price) Promotion & Sales, Distribution are key Customer knowledge of Company
  67. 67. Distribution Channel types & levels Consumer Marketing Channels Egypt Airlines ConsumerEgy Air Channels Egy Air Channels Travel Agency Zero Level Channel (Direct Marketing) One Level Channel Two Level Channel
  68. 68. Company Wholesaler Retailer Customer Company Wholesaler Retailer Customer
  69. 69. People are the most important element of any service or experience. Services tend to be produced. so the attitude, skills and appearance of all staff need to be first class.  Competence  Reliability  Caring Attitude.  Responsiveness.  Initiative  Problem Solving ability  Goodwill
  70. 70. Training. All customer facing personnel need to be trained and developed to maintain a high quality of personal service. Training should begin as soon as the individual starts working for an organization during an induction. The induction will involve the person in the organization's culture for the first time, as well as briefing him or her on day-to-day policies and procedures. At this very early stage the training needs of the individual are identified. A training and development plan is constructed for the individual which sets out personal goals that can be linked into future appraisals
  71. 71. Customer Service Many products, services and experiences are supported by customer services teams. Customer services provided expertise (e.g. on the selection of financial services), technical support(e.g. offering advice on IT and software) and coordinate the customer interface (e.g. controlling service engineers, or communicating with a salesman). The disposition and attitude of such people is vitally important to a company. The way in which a complaint is handled can mean the difference between retaining or losing a customer, or improving or ruining a company's reputation. Today, customer service can be face-to-face, over the telephone or using the Internet. People tend to buy from people that they like, and so effective customer service is vital. Customer services can add value by offering customers technical support and expertise and advice.
  72. 72. Decision to make trip Check in Bages, seats, passport Select carrier Passport control Make reservations Wait for flight pay Process to gate Documentation Board to gate Conirmation Board aircraft Travel to airport Stow hand baggage Site down
  73. 73. Fasren seat belt Safety demonstration Basic inflight amenities: -Audio/Video -Seats -Pillows,blankets -Toilets Shopping Transfer activities Informational announcements Inflight diversions: -Newspapers -Games for kids -Food -Movies -Audio -Medical help -physical exercise
  74. 74. Land Transit stop airport Take off again Arrive at destination Disembark Book next flight Leave Airport Customs Bag retrieval Immigration
  75. 75.  Booking offices  Paper work  Barnd logo  Tickets
  76. 76.  Air craft  Seats  Good inner , exteriors  Cleanliness  Uniforms  Ambience  Baggage  Labels or tag
  77. 77. A Difference is worth establishing to the extent that it satisfies the following criteria: Important Distinctive Superior Communicable Preemptive Affordable Profitable Highly valued benefit to buyers The difference isn’t offered by others or the company offer it in a more distinctive way Superior to other ways of obtaining such benefit Visible to buyers Difference cannot be easily copied to competitors Buyer can afford to pay the difference The company will find it profitable to introduce the difference
  78. 78. Product • Features Characteristics that supplement the product’s basic function • Performance Quality The level at which the product’s primary characteristics operates • Conformance Quality Degree to which produced units are identical & meet promised specs Service • Customer training Training customer employees Tools for competitive Differentiation
  79. 79. Tools for competitive Differentiation Personnel • Competence Required skill & knowledge Courtesy Friendly respectable & considerate (they know how) • Credibility Trustworthy (No broken promise) Responsiveness Respond quickly to request & problems Communication Channel • Coverage • Performance (star – public) Image • Identity Vs Image Identity is the ways that the company aims to identify itself or position its product. Image is how the public perceives the company or its products • Symbols Triggers company or brand recognition (Brand Logos) • Written & audiovisual Media Convey a storyline or mood or a performance level • Atmosphere Physical space in which the company produces or delivers its products • Events The company could build an identity through the type of event it sponsors