Emirates Airlines’ SWOT, Marketing Mix and Plan

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Table of Contents

Introduction
Description of the Services
Marketing Manager Details
SWOT Matrix and 4Ps Analysis
Detailed Plan and Strategy for the Future
Conclusion
Works Cited

Introduction

Emirates Airlines or Emirates stands out as one of the leading carriers in commercial air transport worldwide. Since its establishment in 1985 in Dubai, the airline has grown to cover over 142 destinations globally (Emirates Group par. 2). It provides a range of integrated services, including regional and international passenger travel, postal, and freight transport. The airline is also a provider of in-flight catering and accommodation for passengers and IT services. It runs a fleet of over 217 Airbus and Boeing carriers with an active presence in 80 countries. This paper describes a marketing plan for the airline, including its principal products, SWOT and 4Ps analysis, key competitors, and future corporate strategy.

Description of the Services

Emirates Airlines is a business unit of the Emirates Group. It is mainly involved in commercial air transport services primarily in the Arab world and globally. Its business operations fall into three categories, namely, air transportation, in-flight catering, technology solutions. The air transport unit consists of passenger and freight services (Lohman et al. 207). Emirates Airlines runs over 1,500 flights weekly that interlink 142 destinations globally. The Emirates SkyCargo provides commercial shipment of freight to 130 airports in different regions (Emirates Group par. 4). The cargo can be regular consignments, postal mails, living animals, or perishable goods.

The airline, through the in-flight catering unit, provides catering services to corporate clients and teams. The company also offers consumer products, leisure, and hotel services to clients. Emirates’ ‘dnata’ service develops IT solutions for firms, supports freight operations, and travel solutions to business executives. The company’s Mercator provides a suite of technologies that support cargo handling, destination management, air transport safety, and in-flight amenities for other carriers. It serves six locations globally, including Asia, North America, the EU, the Middle East, parts of Africa, and Australia (Lohman et al. 206).

Marketing Manager Details

The Emirates Airlines’ chief commercial officer, Thierry Antinori, is the equivalent of the chief marketing officer. Antinori began his career at the airline as the vice president in charge of passenger sales division globally (Research and Markets par. 16). After two years at the helm, he ascended to the Chief Commercial Officer in 2013, a position he holds until today. His marketing career extends over 25 years in the commercial air transport sector. His current responsibilities entail managing Emirates’ commercial operations, destination management, and freight transportation, among others.

In Antinori’s assessment, the airline expands its coverage at a rate of 20% annually making the fastest-growing carrier globally. He attributes the growth to new market opportunities in North America, including Orlando and Florida, and the Dubai promotions. In his estimation, Emirates currently obtains 30% of its business from Asia, another 30% from European markets, and 40% from other regions, which makes its revenue model balanced (Emirates Group par. 8). ‘Emirates’ also obtains much of its North American business from travel agents. Antinori estimates that up to 80% of US clients using the airline book their flight via agents.

SWOT Matrix and 4Ps Analysis

SWOT Matrix

Strengths

Strong operational performance – its growth averaged 13.2% in FY2014/15 with revenue of 87.8bn Dirham (Emirates Group par. 3)
Significant geographical presence – serves diverse markets, including Asia, Australia, Africa, EU, and the Middle East, which mitigates the risks and provides growth opportunities (Research and Markets par. 16)
Top market position – a leader in passenger and cargo transportation in Africa and the Gulf region
Integrated services – offers IT solutions, cargo/passenger flights, and in-flight amenities

Weaknesses

Accumulated debts – its loans reached 42.4bn Dirham in FY2014, which may affect its financial position (Emirates Group par. 11)
Declining liquidity level – current ratio dropped by 21.8% to 0.8 in 2014

Opportunities

Growth initiatives – it launched regional products, cargo infrastructure, and Emirates app to drive growth
Business partnerships with airlines like Jet Blue provide an opportunity to minimize costs
Global expansion – likely to benefit from new routes to the Americas
Growth in travel and tourism industry globally will provide growth opportunities for Emirates

Threats

Foreign currency fluctuations – may affect revenue
Epidemics – outbreaks of infections (bird flu) might limit flights to affected areas

4Ps Analysis

The 4Ps, i.e., “product, place, price, and promotion” describe a firm’s strategies for competing in the market (Kotler and Keller 42). Emirates Airlines uses the 4Ps to improve its competitive position.

Product (Service) – the airline has installed the latest technology features, including TVs, audio systems, and communication gadgets. Clients can also book their flights online. In-flight amenities are also offered to individual and corporate travelers.
Place – the company operates 11 travel offices in different Emirates. It also runs over 122 branches in other cities globally serving customers from about 80 countries.
Price – the carrier employs the premium pricing strategy. Its ticket prices are higher than the industry average.
Promotion – it advertises through local media outlets, such as Gulf News, billboards, and product placement (Fly Emirates) in major sports to reach a wider audience.

Competitor Analysis

The global airline industry is experiencing a boom due to the growth in the travel and tourism sector. As a result, competition is stiff in this industry with players employing cost-cutting measures and low-cost carriers to win over customers. Emirates’ competitors include regional and international commercial air transport companies. In the UAE, it faces competition from Air Arabia, a carrier based in the Sharjah emirate (Research and Markets par. 17). This airline, which was launched in 2003, offers low-fare products ideal for the local UAE, Middle East, and African markets. Besides low prices, Air Arabia offers online reservations and maintains high safety standards. The airline through its ‘Payless, Fly more’ campaign projects itself as providing value for money to its customers (Graham et al. 394). It offers affordable options to attract new customers and encourage frequent traveling.

Another local competitor is the Etihad Airways established in 2003 by a royal decree. Etihad is the UAE’s national carrier with a staff population of over 2500. The company emerged the top airline globally in 2004 and 2005 (Graham et al. 396). Substantial investment from the government ensures that the company remains competitive during turbulent times. RAK Airways is another UAE carrier based in Ras Al Khaimah emirate. It was founded in 2006 to stimulate economic growth in the emirate, especially in the sectors of real estate and tourism. RAK primarily offers chartered plane services to corporate clients and tourists.

Besides local competition, Emirates Airlines also faces competition from a host of Gulf-based firms and international players. Kuwait Airways is a low-cost carrier that competes with Emirates in the region. Other regional competitors include Qatar Airways, Jet Blue, and Air India Express. Emirates Airlines uses a differentiation strategy to compete in this market. It has established itself as a luxury carrier with in-flight amenities, such as TV and audio systems. The aim is to attract elite and middle-class clients to drive their growth.

Detailed Plan and Strategy for the Future

Marketing Plan

This marketing plan would enable Emirates to expand its target market beyond the traditional segments. The airline can boost its passenger traffic by focusing on three client groups, namely, the tourism sector, the ex-pats in UAE, and transit passengers.

UAE’s Tourism Sector

Dubai stands out as a business and travel destination in the Gulf region. Corporate visitors and foreign investors need a luxury carrier to visit this city. Dubai attracts over 15 million visitors annually who come to do business or for leisure (Emirates para. 4). Further, the Middle East, which is the primary market of Emirates, is experiencing a boom in travel and tourism. Estimates indicate that the sector grows at an average rate of 5.9% annually (Emirates para. 4). Therefore, the airline should position itself to capitalize on the rising passenger traffic to expand its market share.

The Expatriate Community

Dubai, which is home to the Emirates’ headquarters, is a rapidly growing metropolis that attracts the expatriate workforce to meet its labor needs. It is estimated that up to 80% of UAE’s population is expatriate workers from various nationalities, including people from the West, Iran, and South Asia (Emirates para. 6). Emirates should expand its operations to these routes and nations to serve the expatriate community. Partnerships with other airlines and travel agents operating in particular markets could also help Emirates compete for expatriate travelers.

Transit travelers

Dubai is a transit point for passengers traveling between the EU and Australia. Emirates Airlines, which serves over 142 destinations in six continents, can take advantage of Dubai’s status as a connection point to succeed in this segment.

Strategy for the Future

The competition in the airline industry is stiff. Emirates Airlines needs a plan for modifying its 4Ps to compete effectively in existing markets and new segments. Market penetration would require infrastructural improvements and opening up of new routes to the Americas and China. The rationale is to offer luxury air travel to tourists visiting Dubai and Chinese destinations. Partnerships with local travel agents and airlines can help Emirates penetrate these markets. Providing private suites and lounges could also attract corporate clients. Emirates Airline also needs to diversify its products to penetrate the low-cost or economy class currently dominated by other players.

Implementation and Control

The implementation of this marketing plan will require the involvement of the Emirates’ executive management.

Product development – a board decision to establish a project to install systems that enable travelers to make and receive calls will be needed. It will also require collaboration between the carrier and telecommunication firms. The implementation of this project will involve the Chief Technology Officer.
Market penetration – this will entail opening new routes into China and launching a low-cost carrier. The operations manager and the finance vice president will implement this strategy.

Conclusion

An effective marketing plan evaluates an organization’s internal and external environments to recommend strategies for business growth. Emirates Airlines is a premier carrier for passenger, cargo, and in-flight facilities. The SWOT analysis reveals that it has internal capabilities that can help it exploit new growth opportunities. A robust strategy for this airline centers on market penetration and product development. Business actions in these areas can help Emirates maintain a competitive position in the global aviation industry.

Works Cited

Emirates. Airlines and Subsidy: Our Position. 2012. PDF file. Web.

Emirates Group. Leadership: The Senior Management Team. 2015. Web.

Graham, Francis, Nigel Dennis, Stephen Ison, and Ian Humphreys. “The Transferability of the Low-Cost Model to Long-Haul Airline Operations.” Tourism Management 28.2 (2009): 391-398. Print.

Kotler, Philip and Kevin Keller. Marketing Management. New York: Prentice Hall, 2011. Print.

Lohman, Guilherme, Sascha Albers, Benjamin Koch, and Kathryn Pavlovich. “From Hub to Tourist Destination–An Explorative Study of Singapore and Dubai’s Aviation-Based Transformation.” Journal of Air Transport Management 15.5 (2011): 205-211. Print.

Research and Markets. Emirates Airline – Strategic SWOT Analysis Review. 2013. Web.

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