Case Analysis on the Article, Competitive
Turbulence in the Airline Industry
(Segmentation, Targeting
and Positioning)
EXECUTIVE SUMMARY
Airline industry has 4 sectors identified:
Full-service, Budget, Limited-service, Premium-service
Segmentation and Targeting:
Psychographic, Behavioral, Geographic and Demographic
Positioning:
Value proposition matrix (more for more, less for less, etc.)
Conclusion and Recommendations:
SIA in marginal value proposition position, needs to boost promotions and sales pitch.
Low-cost carriers have good customer attraction value, must boost customer retention
through loyalty programmes.
SIA must have clear positioning, i.e., The Best Airline in SEA
TABLE OF CONTENTS
page
Title page KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK. 1
Executive Summary KKKKKKKKKKKKKKKKKKKKKKKKKK… 2
Table of Contents KKKKKKKKKKKKKKKKKKKKKKKKKKK… 3
Introduction KKKKKKKKKKKKKKKKKKKKKKKKKKKKKK.. 4
Product Analysis KKKKKKKKKKKKKKKKKKKKKKKKKKKK. 9
Positioning strategy KKKKKKKKKKKKKKKKKKKKKKKK 9
Segmentation and Targeting of Customer groups KKKKKKKKKKK 12
Conclusions KKKKKKKKKKKKKKKKKKKKKKKKKKKKKK. 17
Recommendations KKKKKKKKKKKKKKKKKKKKKKKKKKK.. 19
Summary KKKKKKKKKKKKKKKKKKKKKKKKKKKKKKK.. 21
Bibliography KKKKKKKKKKKKKKKKKKKKKKKKKKKKKK. 22
INTRODUCTION
As technology rapidly develops in the 21st century, so are goods and services in the
competitive market. The airline industry in Asia is one of those undergoing a tidal wave of
changes, causing a drastic alteration in the business landscape. Some of these changes
were not heard of before, such as nonstop air travel from Singapore to USA, and even the
kinds of entertainment systems provided onboard the plane.
Moreover, the grueling battle between prolific companies to compete for customer
attraction and in the end, loyalty, resulted to further segmentation of the airline industry.
Apart from the established full-service airlines (i.e., Singapore Airlines), three other
market positions budded. They are: budget airlines, limited-service airlines, and
premium-service airlines.
In 1972, Singapore Airlines (SIA) was created from the divergence of
Malaysian-Singapore Airlines Ltd. A year later, it came to be a full-service airline with
destinations as far as Australia and London. It has remained competitive by being always
on the money when it comes to equipment acquisition and the latest in aircraft
technologies, as well as the interior aesthetics of the plane and good entertainment of the
riding passengers.
However, the dynamics of the airline business has always been fast. And the people behind
the works get smarter. Can Singapore Airlines stay at the height of its glory by giving
exactly what customers really expect to get?
The cultural and social impact due to the rapid changes of the means of moving about
followed the trend of the airline industry, being the fastest way to reach a certain place at
an agreeable cost. People nowadays can easily go to 3000 kilometers in just one day. This
is due to the fact that as airlines got competitive, lowering the price is one of the easiest
means to capturing new customers and keeping current ones. The budding budget airline
