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Etihad Airlines: Operational Decision Making Essay

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Updated: Jul 26th, 2021

Demographic Selection

Based on an examination of the different possible variables, the target market demographics for the Platinum Preferred Customer card will primarily be high-income frequent flyers of Etihad Airlines. The reason for this is quite simple; these are individuals with access to large amounts of money and, as such, are the best choice for utilizing the Platinum Preferred Customer card. It should also be noted that through an examination of frequent flyer customers, it is estimated that 60 to 70 per cent of the clientele that match the specified requirements will be female clients of the airline. The reasoning behind this is connected to the fact that women are more likely to buy good luxury items and travel extensively for pleasure as compared to men.

Geographic Selection

All in all, the geographic selection for this campaign was based on cities with the highest standard of living from Eithad’s selection of flight routes. The reason behind this was quite simple; these areas represent locations with the highest concentration of shops, services and amenities that Platinum Preferred Customer card would enjoy. These locations have access to airport lounges, delivery services, high-end shops, concierge services and other such amenities that are simply not available in other locations. As such, by focusing on these locations, the company will be able to provide the services it promised to its clients.

Product Design

The basis behind the product design was simply the credit card industry has been connecting special amenities, services and exclusive offers to particular credit cards and, as such, Etihad is well poised to take advantage of this particular trend by developing its own card and enticing the passengers that use the airline frequently to acquire one. The reason such services are included with the card package is due to the fact that ownership of particular credit cards these days have actually become a status symbol. This is one aspect that can be utilized by the company in order to entice more people to acquire a Platinum Preferred Customer credit card.

Service Design

One of the competitive advantages Etihad Airlines has over its competitors is its extensive client portfolio which includes several of the richest people within the U.A.E. today. Through such a list, the company is better able to target clients that it knows will be able to afford the card and utilize the various amenities that are attached to it. By being able to have a specific list of customers to entice, the company is better able to target its desired market and will not need to expend significant amounts of money in having to spend on extensive advertising efforts.

Pricing Strategy

The basis behind the pricing strategy is actually quite simple, the reason for the high cost is connected to the fact that it gives customers access to various services and discounts that would have a net value well in excess of the fees that are paid into the card itself. If the customer was a frequent flyer, they could take advantage of the discounts and services in order to save money and be far more comfortable when they arrive at a new destination. It is based on this that the chosen pricing strategy should be effective in terms of being able to provide the necessary services.

Advertising and Promotion

One of the current weakness that both Etihad airlines have to deal with the current economic downturn that has affected the U.S. While it may be true that the banks and several corporations have somewhat recovered from the 2008 financial crisis the fact still remains that there is still a lingering financial problem with the current economy. This leaves many normal and affluent consumers hesitant at even considering using Etihad Airlines as their primary airline of choice given its high fees. What is necessary at this particular point in time is for Eithad to improve its image to consumers and this can be done through the Platinum Preferred Customer card which will enable Etihad customers to save money on their tickets.

Customer Experience Strategy

When it comes to customer experience in Etihad, it is not just the quality of the flight itself that matters, rather, it also entails what customers feel when they utilize the services of the airline. This can range from how they are greeted, how easy the process is and other aspects related to good customer experiences. In the case of the Platinum Preferred Customer card, this involves making the process of acquiring and utilizing the card easy so that customers will be more likely to like it and use it continuously.

Information Management Operational Decision

Information systems can be described as the interface between people, organizations and technology, enabling the business to accomplish a specific task or action. When it comes to establishing the new Platinum Preferred Customer card, the implementation of such services can be considered as absolutely essential given the need to monitor and address the various technical issues that are sure to arise after having customers utilize the card. Etihad needs to be able to address such concerns; otherwise, customers would have no confidence whatsoever in using the card, which would result in a negative image for the company resulting in fewer long term sales.

Managing the Provision of Amenities and Services

With added services such as online methods of baggage claim tracking, additional frequent flyer miles, exclusive discounts on tickets, free use of airport lounges, free private shoppers, discounts at select stores, free international insurance for people travelling to other countries. It would be necessary to provide some means by which these services can be coordinated and properly monitored to ensure that the services continue to work properly for consumers. In the case of Etihad Airways, this comes in the form of having a management team on hand to specifically address the problems related to these services and ensure that, from start to finish, customers are treated right and are fully satisfied with the services of the company.

Marketing Research Operational Decision

In order to determine how well Etihad Airlines was able to meet its market objectives in promoting the Platinum Preferred Customer cards, sufficient market research will need to be conducted. The reasoning behind this is quite simple, if the company is not able to meet its targets when it comes to passenger adoption of the Platinum Preferred Customer card, the company must know when to cut its losses and attempt other potential products that could be implemented in its place. Without these alternatives, it is likely that the company will continue along an unprofitable path which could endanger its future if nothing is done to prevent it.

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