Delta Airlines and Its New Amenity Kits

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Table of Contents

Introduction
Identification of the Target Segment
Speculation on Sales
Speculation of Profitability
References

Introduction

Before determining if the product or service fits within the company’s capabilities, it will be vital to conduct a SWOT analysis. As a company’s strength, one should highlight its loyalty to customer service. This factor allowed the company to build a loyal customer fundament (Writer, 2022). However, as weaknesses, it is essential to stress the high operating cost of the industry in which Delta Airlines works. In the sphere of Airlines, many regulations determine aspects of the company’s actions and require increased operating costs to follow specific standards (Writer, 2022). As opportunities, Delta Airlines can collaborate with a significant amount of small and diverse suppliers who can provide unique and rare products (Writer, 2022). In addition, the threats of Delta Airlines assume some difficulties in terms of Its possible mismatch to new ecology standards in the context of global warming and climate change.

Considering all the above-mentioned SWOT analysis features, it is crucial to understand that the new amenity kits cover all of them. First, it will highlight the excellent quality of customer service. Second, it will reduce costs for amenity kits because of the collaboration with a small supplier (Writer, 2022). Third, the company will get a unique and rare product. Fourth, this product will align with new standards in ecology. Therefore, the new amenity kits fit the company’s capabilities and add to the portfolio of Delta Airlines by increasing the company’s reputation and creating a more sustainable base of customer loyalty.

Identification of the Target Segment

As target customers of the new amenity kits, one can stress that it could be all passengers of Delta Airlines. This conclusion was made by understanding the high-level education of passengers who use this airline, especially business and first class. Therefore, this category of customers will understand the importance of the new ecological amenity kits and how a company cares about the environment. These new ecology-standard amenity kits will create a new market segment patented by Delta Airlines in accordance with the blue ocean strategy (Delta). At the base of this strategy and the new market will be customers’ values which the company will comply with. The new market can be identified as a segment of sustainable products in Airlines. Moreover, the advantage of this strategy can be further increased in the implementation tendency of other ecology-friendly features and goods.

Speculation on Sales

To justify the product, it will be essential to consider a return on investment (ROI). As mentioned above, the project’s cost will not be high because of the collaboration with a small and diverse supplier, Someone Somewhere. The estimated cost of the project is &&&. According to the Delta Airlines Income Statement, the income profit of the company by the end of 2022 is 1,318 million US $, which tends to increase (Delta). Therefore, by calculation of these data, one can state that the ROI of the project will be &&&. The positiveness of the ROI identifies the projected revenue gain. As risks associated with projected sales, one should highlight the possibility of a lack of manufacturing power of Someone Somewhere company to meet the needs of all customers.

Speculation of Profitability

To project how the company’s profitability will be affected after the implication of the new amenity kits, it is vital to consider some points in Delta Airlines’s income report. It is essential to pay attention to changes such as net income, $1,318, cost of goods sold, $33,416, and revenue, $50,582 (Delta). These indicators, which are for 2022, are multiple higher compared with 2021, in which these indicators were $280. $22,495, and $29,899 accordingly (Delta). This factor means that the post-pandemic period begins, and consequently, the airline’s income will tend to increase and be profitable (Delta). As a potential competitor in the marketplace, one can consider Virgin Atlantic. As Rosen (2019) states, “dubbed “Goodie Bags,” the new Upper Class and premium-economy kits are constructed from recycled kraft paper…” (p. 1). The project will have an impact specifically on the marketing company’s functional area. It will be due to the need to explain to customers the features and benefits of new amenity kits.