Saturday, May 4, 2019
Marketing Strategy of Aer Lingus Assignment Example | Topics and Well Written Essays - 5000 words
Marketing Strategy of Aer Lingus - Assignment ExampleCurrently, Irish government holds 25.1% of shareholding in Aer Lingus. The air railway line social club operates as value carrier while it has signed number of agreements air line companies of other countries much(prenominal) as Aer Arann, Air Bus etc in allege to manage its low cost services. Primary trade for Aer Lingus includes Republic of Ireland, continental Europe, UK and USA. In the year 2012, the Irish airline conjunction has carried to a greater extent than 9.6 million passengers crosswise the boundaries. In the year ended 31 December 2012, the company has reported annual revenue of more than 1,350 million with operating profit hovering over 65 million. The company has established its base airport in Belfast city and shown the interest to expand its destination routes by 2 times in following couple of years (Competition Commission, 2013). The Irish airline carrier has established its base in Belfast City along desti nation points include Manchester, Birmingham, Gatwick and Heathrow airports of UK (Competition Commission, 2013). Great Britain-Ireland destination root contributes 30% to 33% of the top line growth and 45% of total passengers for Air Lingus. Until 2001, Aer Lingus operated as full service carrier but later on 9/11 world trade centre terrorism the company has transformed itself as inexpensive carrier. Since 2009, the company has completely changed its positioning statement has become value carrier by serving centrally located airports in order to decrease its travel path and save the fuel cost in order to deliver service to customers at competitive price. The company has also entered in partnership with alive low-cost airlines in order to deliver low cost services to customers...Conjoint impact of reduction of fluid income of consumers and entry of resource rich international airlines have pushed Aer Lingus to change as value carrier. Hence it crowd out be said that, although the problem for Aer Lingus is strategic in nature but the brand can reposition itself with the help of integrated marketing communication strategy. However, lets try to understand changing big environmental challenges for Aer Lingus in terms of PESTLE Analysis.VCCP Blue (2008) has pointed out that Aer Lingus spends only 2 million for implementing its IMC aim which is way below than the industry average of advertising to sales ratio (A/S ratio). Hence it is recommended for the company to increase its advertising position in order to use all channels of communication in effective manner. On the basis of PESTLE analysis, it can be said that the company needs to nurture its green initiatives such decreasing the carbon emission in short haul travel, creating greenery in African nations etc in the form of press release. They need to use the print media advertisement in order to release key benefits that can be achieved through merger & acquisition in order to frame positive word of mo uth regarding the event among customers. Such kind of indirect lobbying also help Aer Lingus in legal proceedings.
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