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Marketing plan of airline company Essay

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Updated: Aug 19th, 2019


A market plan is a document that strives to ensure all strategies are implemented to the end (Mcdonald, 2011).The main goal of marketing involves revenue maximization and customer satisfaction. It is expected that when a good marketing plan is adopted and implemented, it should be the turning point for any enterprise.

According to Plunkett, ”The commercial airline industry has always been particularly vulnerable to economic and political changes” (2009). Therefore, investing in the industry needs carefull considerations. A good marketing plan places a firm on a higher pedestal to compete and command a sizeable share of any market that it operates.

Mission statement

Fere Airline is committed to becoming a profitable, global, and competitive airline, known for success based on efficiency and effectiveness in all its aspects of operations.

Fere Airline’s Core Purpose:

The Airline strives to make a significant contribution to the sustainable development of Europe.

Core Values:

  • Customer satisfaction
  • Continuous improvement of service and product quality to remain competitive
  • Maintain the highest safety standards in operations

Fere Airline’s Goals:

  • To become the airline of choice in Europe
  • To adopt business strategies that will ensure profitability
  • To place London’s Stansted Airport on the map of the world and develop it as a premier hub in Europe
  • To achieve a world class status in all aspects of operation, performance, customer satisfaction, and product quality

Airline’s Organization Structure:

For efficiency in service delivery, the airline’s organization structure will comprise of eight departments. An executive director will head each of the departments. The executive directors in consultation with the Group Managing Director will make most departmental decisions. The suggested departments are:

  • Security and Anti-terrorism
  • Technical
  • Information Systems
  • Finance
  • Flight Operations
  • Commercial
  • Human Resources and Administration
  • Ground Handling


15 Boeing 737 900ER

Boeing 737 900ER

Image courtey of ComPilots-Aviation Portal

Boeing 737-900ER Technical Characteristics

Wingspan 112 feet 7 inches (34.3 meters)
Wingspan w/winglets 117 feet 5 inches (35.7 meters)
Cabin width 11 feet 7 inches (3.53 meters)
Overall length 138 feet 2 inches (42.1 meters)
Tail height 41 feet 2 inches (12.5 meters)
Lower hold volume 11,824 cubic ft. (51.6 m3)
Volume with 1 aux tank 1,674 cubic ft. (47.4 m3)
Volume with 2 aux tanks 1,585 cubic ft. (44.9 m3)

Source (Boeing, 2004)

General Strategy

The airline industry is fiercely competitive (Cento, 2008). As globalization gains momentum, this already fierce competition is expected to intensify. This means that without proper marketing, the firm will hardly make any penetrations. Therefore, survival in this field means appropriately responding to the changing aero-political environment.

Considering the above factors, Fere Airline has committed to investing in a state of the art information gathering system that will ensure the company remains up to date with market changes. As such, the company’s ability to respond to unforeseen threats and available opportunities will be rapid.

In concrete terms, the airline aims to become the leading carrier in Europe with a heavy presence in Africa, Asia, and America in the next 20 years. The company also intends to own a fleet of 40-50 modern aircrafts for these operations. Finally yet importantly, the company intends to forge partnerships with other airlines to increase service efficiency.

Product and service analysis

Fere Airline’s headquarters will be based in London Stansted Airport. As a European short haul airline, its operations will cover France, BCN and ARN. Fere Aitrlines has already acquired 15 Boeing type B737 aircrafts for start up. The Airline will engage in both cargo and human transport.

However, concentration will be on passengers considering the size of the palne. B737 are relatively small aircrafts and cannot, therefore, handle voluminous laggage (Kundu, 2010). To ensure that the airline gains considerable market share, various products and services will be offered.

Gift cards

The company will introduce gift cards to its loyal customers. Customers who win the gift cards will have their journeies fully sponsored to a destinations of their choice. Be it the Himalayas for a holiday with your spouse, Africa to watch wild animals, or the Middle East, the company will take them safely at no pay.

Travel insurance

Travel insurance makes airline travelling expensive (Lee, 2006). According to Karr, “The cost of travel insurance varies widely, depending on the cost and length of your trip, your age and health, and the type of …” (2006).

Many airlines use the above mentioned factors to swindle traveller and charge exhorbitant prices. The company will offer comprehensive insurance to its clients at very affordable rates. The comprehensive cover will comprise lost package, travel delays, and trip cancellation insurance.

Payment methods

Apart for the conventional payment methods such as direct deposits, mastercard,and visa card, which are sometimes inconveniencing, the company will offer a varriety of convenient payment methods such as paypal, pyoneer, credit cards, GoodAsGold, Moneybookers, Alertpay, and Mobile Money Transfer. This will ensure that customers can easily pay for their flights using the most convenient method to them.

One bag free campaign

Travelers who have a lot of luggage need not worry. The company plans to run a promotional campaign aimed at attracting more clients, especially those travelling with families. Therefore, every paseenger will be allowed to travel with one bag free.

Free onboard services

XM Radio

Every seat will have a fixed XM Radio for customers to tune in and listen. Most interestingly, the customers will have a choice of 100 radio stations. This will ensure that passangers tune in to the stations of their choice in terms of presenters, music genre or discussions.


Fere airline’s management knows that travelling without snacks makes the journey boring and long. As such, the company has contracted leading snack companies, Doritos, Jeffa Cakes, Hovis Bakery, and Greggs.


On every seat is installed a 36 channel DIRECTV with leading international channels. Clients who like business news can always catch up with Quest on CNN, sports and entertainment lovers, ESPN among other wolrd class channels.


“Strategic partnerships are being heralded as a sound strategy in the airline industry” (Fojt, 2006). Attaining a world class status with a Boeing 737, is an almost impossible task. As globalization gains prominence, so is air travel (Meskill, 1999).

This means that the demand for air travelling across the world remains high. The company must, therefore, make efforts to tap into this growing market through mergers. As such, the following companies have been contacted for mergers.

Air France

Air France logo.

Fere Airline and Air France have agreed to share services between London and Paris. This will give the customer a better service experience through regular routes and marvelous experinces.


Aeroflot logo.

Fere Airline will share London to Frankfurt route with Aeroflot.

Time schedule

Time schedule is used to advertise the timetable of arrivals and departures. It only includes days when the airline is operational. In this case, the time schedule will cover the period beginning 1st February 2011 to 18th April 2011.

Departing London Stansted Airport

To Departure Arrival Flight nos. days
France 2200 2354 CS001 1stFebruary 2011
Barcelona 2200 0045 CS003 10THFebruary 2011
Stockholm 0930 1236 CS007 15THFebruary 2011
France 2100 1100 Cs012 21stFebruary 2011
Barcelona 1715 2000 Cs015 27thFebruary 2011
Stockholm 1035 1500 Cs 014 30thFebruary 2011
France 2245 0500 Cs013 2ndMarch 2011
Barcelona 1545 1830 CS011 5th March 2011
Stockholm 1135 1700 Cs005 10thMarch 2011
France 2025 0400 Cs006 14thMarch 2011
Barcelona 1600 2200 Cs003 18thMarch 2011
Stockholm 1135 1700 Cs004 21stMarch 2011
France 2000 0600 Cs009 28thMarch 2011
Barcelona 1600 2145 Cs008 4thApril
Stockholm 1135 1600 Cs007 16thApril 2011

Time justification

Fligh time and distance have been calculated using flight time calculator ().

London to Paris

  • Flight distance:344.79km
  • Ground distance:344.20km
  • Flighttime:0h 54min
  • Start time:31 Jan 2011 22:00 GMT +00:00
  • Arrival time:31 Jan 2011 23:54 GMT +01:00 (Local times)

London to Barcelona

  • Flight distance:1141.13km
  • Ground distance:1139.16km
  • Flighttime:1h 45min
  • Start time:09 Feb 2011 22:00 GMT +00:00
  • Arrival time:10 Feb 2011 00:45 GMT +01:00 (Local times)

London to Stockholm

  • Flight distance:1438.86km
  • Ground distance:1436.39km
  • Flighttime:2h 6min
  • Start time:15 Feb 2011 09:30 GMT +00:00
  • Arrival time:15 Feb 2011 12:36 GMT +01:00 (Local times)

London return

  • Flight distance:344.79km
  • Ground distance:344.20km
  • Flighttime:0h 54min
  • Start time:21 Feb 2011 19:00 GMT +01:00
  • Arrival time:21 Feb 2011 18:54 GMT +00:00 (Local times)

Budget for advertising

Budget in marketing plan refers to comparison between expected revenue earned as a direct result of advertising and cost incurred in advertising.

Care should be taken to ensure that an optimal level of advertisement is reached. That it is to say marginal costs of advertising should be equal to marginal revenues collected. Too much advertising is not recommended since it will only be effective up to certain optimal limit.

$150000 Budget

Between February and April 2011, the company plans to spend $ 150,000 on advertisement. The table below show specific areas of expenditure and expected revenue generated from advertising effects.

Marketing expenditure February March April total
Online 2000 3000 3000 8000
Brochures 6000 5000 6000 17000
Trade shows 9000 10800 27000
Print 12000 11000 9000 32000
Radio 10000 12000 10000 32000
Promotions 30000 30000
Publications 1000 2000 1000 4000
Sales training 6000 5000 1000 12000
Total spent 50000 52000 48000 150000
Total sales 4000000 4500000 6000000 1450000
Marketing as a % sales 1.25 1.15 0.8

Online advertising

The internet has proven effecteive lately in advertisement. In fact, according to Yeshin, “The web should not be regarded as a substitute for advertising in traditional media” (2005).

Instead, the internet should be taken as a primary advertising method due to its wide coverage, cost effectiveness, and efficiency (Rock, 2005). Use of social media such as Face Book and Twitter and company website can be of great importance to online advertising. Online advertisement will run for 3 months.


“An attractive brochure can be very useful” (Henning, 2008). The company must, therefore, design and print brochures and distribute them to potential customers to aid selling of company products.

Trade shows

Trade shows, if well organized, can prove crucial to a company’s success. It is no wonder that Hisrich claimed that, “The importance of trade shows in industrial sales cannot be overstated” (Hisrich, 2000).


Radio advertisement has remained of great importance despite the emergence of the internet and Television. More still, the advent of FM radio stations has brough in jist among listeners (Mathur, 2005). The company, has decided to use 3 popular radio stations in its advertisements.

From the projections, February, March, and April’s ratio of expenditure to sales would registere 1.25%, 1.15%, and 0.8% respectively. This is a favorable ratio. It shows that returns on amounts invested in advertisement cost are several times the cost. This occurrence shows that advertisement plays a pivotal role in boosting revenues.

Marketing plan of an airline company.

Print and radio utilized the highest cost while publications registered the lowest cost.

Marketing strategy

Marketing strategy refers to causes of actions that are aimed at achievement of market plans (Handlechner, 2012). Such strategies mainly focus on gaining competitive advantage in the market to boost revenues. They also work to ensure customer loyalty to products of a particular enterprise.

Competitive and customers strategies

Fere Airline will strive to be competitive despite the cutthroat competition that exists in the airline market. It faces completion from established airlines such as Virgin Atlantic, Air France, and British Airways. Despite the economic strength of these established companies, Fere Airline will most probably prevail and be profitable because of its highly efficient and effective operations.

Mock press advertisement

We are glad to announce to you the introduction of our world class airline services. The industry is crowded already, but we took this step because we believe travellers deserve nothing less than excellence and comfort. Surely, what we are launching today, Fere Airline, is an epitome of comfort with a touch of class.

It is impressive and highly innovative. This is the reason why you need to fly with Fere Airline. We are introducing a flee of 15 Boeing 737 all customized to meet your comfort needs.

It may be hard to believe that such excellent services would come at low prices, but Fere Airline is determined to make travelling cheaper and more exciting for all. We desire to ply all routes in Europe. However, we will only make direct flights to France, Spain, and Germany.


Marketing plan is an integral element of any business idea. Ignoring the need for a marketing plan is business’s own peril (Berman, 2009). A good marketing plan is paramount for success.

It should be designed exhaustively and realistically without leaving out important components. Important components include various competitive strategies,potential challenges and how the business intends to tackle these challenges.

The management needs to go a step further, adopt the components of market plan to the fullest. It should not just be a decorated documents which is not implemented in the business strategic planning. Fere Airline shows good tidings in the future, it should not be complacent.

It exists in a very competitive arena, and no efforts should be spared by all stakeholders, since slight mishap could plummet the tremendous grounds they have covered to oblivion.


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