Appendix 2
Assessment 2, Case Study
ComfortAir plc.
Case Study Briefing
Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following the World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote.
The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, with far-reaching effects on the industry’s trend towards expanding domestic and international services. In the past, the airline industry globally, was at least partly owned by governments. This is still true in some countries, but increasingly all major airlines have come to be privately held. The industry has many characteristics e.g:
· International – 130+ seat planes that have the ability to take passengers just about anywhere in the world. Companies in this category typically have annual revenue in excess of $2 billion.
· National – Usually these airlines fly smaller planes and have revenues between $100 million and $1 billion.
· Regional – Companies with revenues less than $100 million that focus on short-haul flights.
· Cargo – These are airlines that generally transport goods. Many global companies like Amazon, have developed their own cargo fleets
Airport capacity, route structures, technology and costs to lease or buy the physical aircraft are significant in the airline industry. Other substantive issues are:
· Weather – Weather is variable and unpredictable. Extreme heat, cold, fog and snow can shut down airports and cancel flights, which costs an airline money.
· Fuel Costs – According to the Air Transportation Association (ATA), fuel is an airline’s second largest expense. Fuel makes up a significant portion of an airline’s total costs, although efficiency among different carriers can vary widely. Short haul airlines typically get lower fuel efficiency because take-offs and landings consume high amounts of jet fuel.
· Labour – According to the ATA, labour is an airline’s No.1 cost; airlines must pay pilots, flight attendants, baggage handlers, dispatchers, customer service and others.
· Landing Slots – These present another significant expense for airlines who fly to popular destinations.
Your brief: You are to take on the role of a marketing consultant for a new passenger airline: ComfortAir plc
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The airline is based in the UK and plans to operate on the European passenger sector having secured landing slots from January 2024 in the following Cities : London, Paris, Frankfurt, Milan, Athens, Istanbul, Brussels, and Amsterdam. More landing slots could be added in future years.
ComfortAir will use a fleet of smaller planes of 150 seats, built in China. Designer fitted using quality materials in the cabin, with luxurious look and feel, and intent to serve healthy gourmet sandwiches and fresh fruit juices
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READ CAREFULLY
Assessment 2 : 60% of module marks
The Marketing Plan Proposal ;
Provide marketing objectives: Your objectives must include market-share forecasts based on your strategy and may also relate to other goals such as passenger satisfaction, repeat custom, branding etc. They should be formulated in a specific and measurable manner (SMART). The marketing objectives should be linked to the key issues facing the company.
Discuss and critically evaluate your Customer Value Proposition, based on your Segmentation, Targeting and Positioning (STP): Indicate how value is to be created, to which passenger segments and why. In addition, you should recommend how the Comfort Air brand should be positioned considering the competitors in the international market.
You should base your proposals on tools and theory discussed in this module. Provide a rationale to support your recommendations.
Provide detailed recommendations for the marketing mix elements which will enable ComfortAir to achieve its desired objectives. Justify your proposed implementation with a comprehensive rationale and support with theoretical frameworks or tools.
Provide detailed controls and measurements that will enable the ComfortAir to monitor its recommended marketing mix and thereby help ensure it achieves its plans with an appropriate timescale.
Assessment Submission Structure
Prepare a marketing plan – up to 2000 words – using academic concepts to base the market practice to support your plan, applying the following, suggested, structure:
· Cover / title page
· Contents page
· Executive Summary – Your findings (not an introduction) over one page (bullet points can help)
· Marketing plan:
– Summary of the Marketing Analysis findings / Key issues
– Marketing objectives
– Segmentation, Targeting and Positioning / Quantify all dimensions
– Customer Value Proposition (what exactly are you offering)
– Marketing mix recommendations (based on your research implementation)
– Outline of Controls and measurements
· A reference list / bibliography (not included in the word count)
· Appendices (not included in the word count)
Important Note : This is a practical assignment and marks are awarded for addressing the consulting brief, providing evidence of market research, and market sizes specifically. ComfortAir needs a recommended solution from you, not an outline of the theories…
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Assessment criteria |
Level of achievement |
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Executive Summary
(15 marks) |
An overview of the key |
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Set and justify Marketing Objectives
(10 marks)
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Provide objectives
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Positioning strategies given the target audience
(15 marks) |
Demonstrate Show
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Marketing Mix:
(25 marks) |
1. Provide
2. What
3. Pricing objectives and approaches (5 marks).
4. |
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Market Entry Options
(15 marks) |
Provide
Part |
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Outline Controls and Metrics
(10 marks) |
What
List |
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Presentation
(10 marks) |
1. Appropriate 2. |