Airline Case Analysis Explain the Case Study

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On the price dimension of the marketing mix, the company continues to compete with low-end and state-funded carriers, who arguably have a competitive advantage due to their funding source. Nonetheless, 1 Time is fighting the good fight of customer service and delivering value at their price points (Mantshantsha, 2007).

Of all aspects of the company's marketing mix, this one is struggling the most as it strives to capture more of the business traveller market. The promotional strategies are tied to the company's website and to limited direct marketing through social networks, yet is weak at defining a connection between the extensive MRO strengths the company has and the ability to translate that into customer value. The lack of connection between the reliability base the company has and the success of its business travellers is a major weakness in the promotional strategy.

On the place dimension of the marketing mix, the company has made excellent decisions about choosing secondary airports that are low-cost to lease gates at and to base its operations at OR Tambo International Airport. This is the one aspect of the marketing mix that will change over time as additional flights are added. For the time being, this variable communicates the unique value proposition of the company well, and shows it is focused on serving this specific market niche.

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5. Give a full spectrum of segmentation variables, describe how 1 Time has segmented the airline market. (10)

The company has segmented the market first by geography and second by price sensitivity. This strategy will work well in the short-term yet the development of more specific segments is going to be needed for the company to grow over time. The launch of 1 Holidays last fiscal year and the initial success in selling to business travellers is the right direction to take segmentation. There is much work to be done on segmentation from the standpoint of having business travellers trust the airline more and make it part of their business routine. Having 1 Time be a partner and supporter of small business would do much to expand sales into this segment. To do this, the company's exceptional grasp of the MRO processes in their other businesses needs to be translated into a competitive advantage of safety and reliability which two areas they are ironically weak in today. Once the company does this, they will gain greater mindshare and market share in the business traveller segment......

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