Marketing Analysis of Emirates Airlines, UK During Covid-19 Assignment Solution

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Assignment Details:

Document Type:: Research Paper

Subject:: Marketing

Deadline :*: As Per Requirement

Number of Words:: 1500

Citation/Referencing Style:: Harvard

 

Introduction

Emirates Airlines is a UAE based Airlines that was founded on 25th March 1985 and commenced its operations from 25th October 1985. The company has a fleet size of 254 aeroplanes and serves 157 destinations around the globe.  Emirates Airlines has been serving UK customers from the last three decades and has now become the top priority airlines of the customers in the country.

 

 

Analysis of Emirates Airlines in the UK during Covid:

 

1.Situation Analysis

The situational analysis of Emirates Airlines in the UK during Covid can be done through micro, macro and internal environment analysis using SWOT analysis and Porter’s Five Force Analysis which is stated as under.

 

a. SWOT Analysis of Emirates Airlines during Covid in the UK:

 

Strengths 1. Throughout the lockdown period in the UK, Emirates Airlines was financially and non-financially backed by the UAE Government to support its business process in the country (PWC, 2020).

2. The customer satisfaction from prior services has helped in maintaining preference over other airlines that was revealed when the lockdown was removed.

3. Diversification in the cargo business has further helped in increasing business opportunity in the UK markets.

Weaknesses 1. Lockdown applied legal restrictions over the movement of physical resources for servicing customers in the UK.

2. The rise in prices of air tickets during the unlock period to meet the restrictions of filling 50% of seats during travel affected the customer base (Santini et al., 2020).

Opportunities 1. New cost-effective aeroplanes with increased traveller capacity are available with the Airbus and Boeing that could be deployed for reducing costs and increasing customer services.

2. Unlock initiated in travel to and from the UK could bring out more business opportunities to the Emirates Airlines (Santini et al., 2020).

Threats 1. The latest threat of new Covid strain that has been on the rise in the UK has again created a lockdown position thereby affecting the business prospects in the country. The restrictions overflights from the UK to 40 other countries of the world owing to the rapid spread of a new strain of Covid have once again declined the services of Emirates Airlines from the UK (PWC, 2020).

2. The rising fuel costs have further added to the expenditures of the business and negatively impacted its revenue generation capacity (Roca-Puig et al., 2018).

 

b.Porter’s Five Force Analysis of Emirates Airlines during Covid in the UK:

 

Bargaining power of buyers The rising number of air travel service providers after the initiation of unlocking in the UK has increased bargaining power of buyers who can select any flight services as per their requirements and budgetary constraints (Sablok et al., 2017).
Bargaining power of suppliers The bargaining power of suppliers in the UK has declined to owe to the number of suppliers present in the market who are keen to recover their loss due to non-supply during Covid-19 pandemic outbreak that resulted in lockdown in the country.
Industry rivalry The industry rivalry in the UK specifically in the Airlines business has been rising after the lockdown has been removed. Air France, Lufthansa and British Air have already started offering discounted rates to their flights around the world that has affected the revenue which was estimated to cover the loss incurred during lockdown period in the UK (Sablok et al., 2017).
The threat of new entrants The threat of new entrants has been limited in the UK. This is because of the new strain of Covid-19 that has affected the entrepreneurs around the world to postpone their projects for establishing new air flight services in the UK. Also, the year 2020 affected by Covid-19 virus and the year 2021 been affected by the new strain of Covid-19 virus has further made the airlines business unattractive for the new entrants.
Threat of substitutes The threat of substitutes during the Covid-19 pandemic that resulted in lockdown declined as no airlines company was allowed to support flight from the UK. Even today, the ban made by more than 40 countries around the world to restrict flights in their respective regions has constrained flights of all companies from the UK to other parts of the world (Menickella, 2020).

 

2.Marketing Objectives and Marketing Strategies:

 

The marketing objectives and marketing strategies of Emirates Airlines in the UK during Covid can be reviewed through the analysis of current marketing objectives by applying Segmentation, targeting and positioning method.

 

a. STP Analysis of Emirates Airlines during Covid in the UK:

 

 1.Segmentation:

The customer segmentation is made in the UK by Emirates Airlines by describing the purpose of the journey, length of journey and country to travel.  The basis of segmentation used by Emirates Airlines in the UK markets includes geographical region, demographic, psychographic and behavioural factors. This has helped Emirates Airlines in developing onboard facilities and set prices accordingly (Shabbir et al., 2016). The Marketing Segmentation by Emirates Airlines in the UK is made on following sets and subsets.

 

 

2.Targeting:

Emirates Airlines applies active targeting methods in the UK wherein attempts are made to figure out the relevant customers and thereafter classify and subclassify them to develop appropriating targeting strategy (Smith & Quinn, 2012). The targeting methods applied by Emirates Airlines can be revealed as follows.

 

 

3.Positioning:

Emirates Airlines applies specific positioning policy in the UK.  The positioning of the airline tickets and associated services is made on the basis of attributes, price, quality, product users, product class, use and application etc.  This helps the airline company in creating a variety of products and services to match the different needs and budgetary constraints of the potential customers (Sablok et al., 2017).

 

 

3. Marketing programmes: (7ps of marketing)

 

The marketing programmes applied by Emirates Airlines in the UK during Covid can be reviewed using the 7Ps analysis. This can be stated as under.

 

a. 7Ps analysis of Emirates Airlines during Covid in the UK:

 

The 7Ps of marketing mix applied by Emirates Airlines in the UK during Covid can be depicted as follows.

1. Product:

The range of product that is the flight tickets and associated services offered by Emirates Airlines in the UK includes flight tickets at competitive prices to several locations in the domestic and international locations. Improvements were also made in offering customer support, branding the business, offering high-quality services etc. However, these products were not served during the strict lockdown period owing out an outbreak of Covid-19 pandemic in the UK that claimed thousands of lives and millions got infected (PWC, 2020).

 

2. Promotion:

The promotion of the business was made by Emirates Airlines in the UK even during the lockdown period so that the reach out to the customers and memory recalls can be made. This way brand reputation was maintained by keeping the company name live on the television and social media platform. Several kinds of sales promotion and public relations techniques were applied as the promotion of the business.

 

3. Price:

The price of the Emirates Airlines along with other airlines in the industry increased during the unlock period owing to the safe journey measures and legal compliances that required testing and filling up of 50% of the flights during travel (Menickella, 2020).

 

4. Place:

The place of business is kept online wherein the potential customers of Emirates Airlines in the UK can easily buy air tickets and avail associated services and discounts. Segmented channels were also used for increasing reach out to the customers in the UK.

 

5. People:

Emirates Airlines deployed individuals over marketing activities even during Covid-19 pandemic by offering air tickets for the next year at low prices. The airlines, unlike others in the industry, did not remove employees, rather increased their online involvement in the business process for availing virtual business opportunities.

 

6. Process:

The business process of Emirates Airlines during Covid was customer focus wherein the attempts were made to initiate flights during the unlock period on those locations where customers priority was observed. Emirates Airlines initiated its first flight during unlocking to regions where people could reach their home and were stuck in the UK during the unlock period (Zhang & Chang, 2020).

 

7. Physical evidence:

The physical evidence of the presence of Emirates Airlines during the Covid-19 was observed in the online experience and product packaging that was offered on sale targeting the air travels of the potential customers in the next year. This way brand experience was continued to be offered to the customers sitting at home during the lockdown period.

 

Recommendations:

There are several recommendations that can be given to Emirates Airlines to improve its revenue from UK business operations which has suffered a huge setback during lockdown for Covid and now for lockdown for a new strain of Covid.

 

1.) Emirates Airlines should limit its business in the UK until the Covid-19 and its new strain comes under control. This means that the travel services in other countries.

2.) The airlines should work on shifting its employees in other countries of the world where the lockdown has been removed completely and the risks of Covid-19 have disappeared to great extent (Santini et al., 2020).

3.) The airlines should work on increasing its cost efficiency by deploying new-age technologically upgraded airlines that need to be bought from Airbus and Boeing (Roca-Puig et al., 2018).

 

Conclusion:

In conclusion, Emirates Airlines has been successful in overcoming the issues and revenue losses in the UK during the lockdown period. However, the company needs to bring in recommended reforms in future as the Covid-19 pandemic and its new strain is expected to continue to haunt the UK for the coming months.

 

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