TigerAir Singapore Analysis - Free Essay Example

Table of Contents Analysis of the Campaign text Brand Analysis SWOT Analysis Actual Positioning Customer Analysis Competitive Landscape Analysis Market Trends Pestle Analysis a)Political Factor: b)Social Factor: c)Economic Factor: d)Legal Factor: e)Environment Factor: f)Technological factor: Marketing Communication Plan Tigerair Market competition Tigerair Marketing Strategy and the Competitive Positioning Tigerair Positioning Tigerair Marketing Goals and Objectives Tigerair Marketing Mix Tows Matrix WO Strategies ST strategies SO strategies WT Strategies Marketing Budget considerations Campaign metrics Recommendations Conclusion Bibliography . Analysis of the Campaign text Brand Analysis Tigerair is a Singapore based company that offers different traveling options at affordable prices. They claim consumer satisfaction excellence and they started their operations in 2004. The travelling organization offers flights up to 37 different destinations. In Asia they touch base with 12 countries (Holding, 2015). Within the previous decade Tigerair has won awards for customer service and lowest rates. Of course the lowest rates awards didnà ¢Ã¢â€š ¬Ã¢â€ž ¢t mean that quality at any point in time was effected. Among the local airlines in Singapore, Tigerair maintains the leading position in providing quality services to the general public. SWOT Analysis Tigerair holds a dominant position in the local industry due to its low cost rates. That means targeting the low cost segment they have attracted a huge customer base (Hauser Shugan, 2008). It has a huge network operation in all of Asia. The rate of growth for Tigerair is exceptionally high (Holding, 2015). However according to certain academics (Bisignani, 2006) when big business expand at an exponential rate they are the worst hit by financial crises. Hence Tigerair can be in a vulnerable condition if there is an economic crises. Right now Tigerair is offering flights for 12 destinations in Asia, however Asia is composed of 48 states. Hence if it thinks to expand its operations Tigerair should start thinking of starting their operation in other zones in Asia. This could be a big opportunity for them as residing in Asia, they know the industry and operational predicaments. Further as compared to outside Asia expansion it could effectively reduce the cost. Further some a cademics (Flores-Fillol Moner-Colonques, 2007) account that for regional airlines liaisons with other airlines can attract more customer and save costs. Hence Tigerair should be looking into that particular paradigm. As far as Threats are concerned, for airlines rising prices of Oils is always a concern according to many studies (Flores-Fillol Moner-Colonques, 2007) (Fu Zhang, 2010). Further right now Tigerair has a cost effective advantage but if another airline comes with the same cost structure or lower prices with same quality that could pose a stiff competition for the airline. Actual Positioning It should be noted that Tigerair poses itself to be an extremely cost effective travel. This means it tends to target two segments of the market. First are the business personals who usually seek many trips on low cost and second are the domestic travellers who look for affordable travel (Holding, 2015). Because Tigerair has marketed itself offering various destination in Asia and outbound it looks to be an attractive bet for all the consumers who are looking for a good travel experience at affordable rates. Customer Analysis As already discussed above due to the low cost paradigm Tigerair has attracted a significant loyal consumer base domestic and business personals for air travel on inexpensive rates. There is no specific age customer but the portfolio for Tigerair include people of various background and ages who seek affordable travel (Holding, 2015). According to academics ( Lederman, 2007) this is a big success for any organization to attract a diverse audience of various background. But critics (Bisignani, 2006) (Hauser Shugan, 2008) also maintain that attracting a consumer base based on cheaper rates can be easily deflected if another airline comes in the market with low rates and better quality schemes. In conclusion the relationship between cost and customer base is mentioned below; Competitive Landscape Analysis As the above figure explains Tigerair main competition is shaped due to the three factors above. Firstly the local traditional airline which have been existing for a significant time have been affected due to the low cost paradigm of Tigerair. Hence the traditional airlines which offer full service poses the immediate competition for them (Holding, 2015). The second ones are the international lines working in Asia through different routes and prices (Holding, 2015). Tigerair maintains it edge with the same low price model with good services. And lastly the international entry by Tigerair with result in international price wars. The immediate case was witnessed when Tigerair decided to launch its operations in Australia. Australian airline faced the pressure of the cliental as Tigerair offered low rates (Liang, 2005). Further as discussed in the swot analysis competition is enhanced and effected due to the following factors as well; Oil Prices Political Stability Weather Issues Barriers to entry in local and international sphere Economic conditions Tax rates by the government Inflation in keeping the price hikes Market Trends Pestle Analysis Political Factor: According to the studies (Liang, 2005) the political environment of Singapore is quite stable and that eventually helps any growing industry in the market. Academics (Liang, 2005) hold that political stability and no government disturbance keep the prices and the trust of the factor in check. Hence politically Tigerair has a good advantage Social Factor: Singapore has a very sound and intellectually mature public with above 92 % literacy rate (Mundi, 2015). That means that they have an informed public. There are both advantages and a downside for any industry for this factor. The positive point is the public is aware to make comparison so if they see Tigerair with a good service and low rates they will opt for it. However it should be noted they will always be on a look out for a better product in the market. Economic Factor: Over the past decade Singapore economy is in a good position (Liang, 2005). A good and sound economy actually let the market players to play with the prices. If the inflation rate of any country is stable cost effective prices can be easily be maintained (Zook Brunn, 2006). However in economic crises this cost effectiveness might harm and is difficult to be maintained over a longer period of time. Legal Factor: Cost effectiveness of any company results in low wages for the employees. That is because low cost prices of the product means the manufacturing cost for that particular service or product is considerably lower (WEN YEH, 2010). Tigerair seemingly has a challenge here, good wages is a good indicator for employee retention and hence Tigerair need to concentrate on this part. Environment Factor: According to the information on the sources (Holding, 2015) given out by Tigerair it seems that it is doing adequate steps to control its carbon print on the earth. However there is always a room for improvement. Technological factor: Scholastics understanding (WEN YEH, 2010) hold that continuous improvement is paramount for any company survival. Whether the business is currently doing well, it is of prime importance they look for other venues and services to keep the customer retention. Marketing Communication Plan Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Market competition It can be seen that nowadays the competition in the airline industry is quite high and companies are striving to make their position in the market. From the airlines industry there are two main competitors of Tigerair. One is Air Asia and the others Jetstar. Due to this the marketing strategies that the competitors are adopting has a direct impact and influence on the Tigerairà ¢Ã¢â€š ¬Ã¢â€ž ¢s business. Usually it can be noticed that the airline industry are cost driven which results in less brand loyalty from the customer perspective. It is suggested that the Tigerair should adopt better pricing strategy in the competitive market so that they could maintain a stable market share in the industry. Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Marketing Strategy and the Competitive Positioning Tigerair Segmentation Tigerair Targeting Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Positioning Travelers Promo Lovers Shopaholic Value added seeker Value added seekers Low Price à ¢Ã¢â€š ¬Ã¢â‚¬Å" High Value Tigerair Positioning Tigerair is situated in such an area where so many other airlines are there such as the Air Asia, Air Indus and etc. The scope of the airline industry has immensely grown with the expanding new entrants of other Airline companies. However it has also increased the much need for the travel and tourism among the people who can afford it. Tigerair is looking realizing that their region is quite competitive. The below mentioned Porterà ¢Ã¢â€š ¬Ã¢â€ž ¢s model explains the five forces of competition, which Tigerair are currently facing is facing. Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Marketing Goals and Objectives Creating Tigerair exclusive experience for its customers. Building Tigerair as a robust brand Opening of the new routes along with low costs Increasing the level of sales and revenues Increasing companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s market share Communication of the new Tigerair Corporate values and ethics Tigerair à ¢Ã¢â€š ¬Ã¢â‚¬Å" Marketing Mix The four Cs strategies and tactic plans that will be adopted by the Tigerair are as follows: Consumer Opening the new route for the consumers The new route will provide full services Cost Setting affordable pricing strategy: The carrier airways inclusive The average low cost Full service provision Convenience Online Smart Phone application induction Start of the Travel Agency office Online marketing and info availability Communication Provision of the 360 degree communication with the customers including the media gathering, advertisements such as TVC and you tube , Facebook Tows Matrix WO Strategies The company can expand and try to develop in such areas such as Laos and regions of Cambodia which will gain them the low cost for the employees. The profits that would be earned from here can be further invested in improving the experience of customer services. Tigerair can work closely along with the booking agents and also inauguration of improving the flights time such as introducing them during the prime time and with improved mechanism of booking system. Tigerair will the get to compete better with the competitors. It is noticeable that the ASEAN agreement has now opened the new opportunities for flying to more destinations and this will be adopted by Tigerair which will widen the horizons for more consumers from other regions as well. ST strategies Usually people are not aware of Tigerair. The company has to revitalize the marketing strategies which will be able to make them more into their low cost flights and the travelling to other destinations. Tigerair needs to reach out its networking capabilities with the hotels, car travelling companies and the companies such as the holiday homes which can become as a complementary services to their customers. SO strategies Tigerair has a strategic location situated in Singapore which can give them more good advances to open the new networks and affiliate themselves with the other big companies. The Tigerair has the low cost maintenance services and its operations that would ensure them to save their safety policies and the concern of their valuable customers. Tigerair should reach out to such customers in Asia who are willing to have less costly travelling experiences. ASEAN agreement will enable them to have unlimited travelers in their service. WT Strategies The company has no alternative if they wonà ¢Ã¢â€š ¬Ã¢â€ž ¢t be able to adopt better marketing strategies other than to shut their business or any other airline could acquire them. Marketing Budget considerations Campaign metrics The budget that is allocated for the Tigerair will consist of SGD 1,500,000 for one campaign in the set target markets that are identified as the main core for the Tigerair airlines. Our campaigns will be including the pulsing media flight during the holiday season commencing from December 2015 which will also maintain the online presence, outdoor and the new mobile campaign as well. The budget allocation is as follows: Television 750,000 SGD Print 350,000 SGD Outdoor 200,000 SGD Online 150,000 SGD Mobile 50,000 SGD Recommendations Tigerair should have their main focus on improving their customer experience through the better customer relations and services such as avoiding the delay and cancellation of the flights. Usually in the Airline industry the biggest issue is among the unreliable flights and this cause the companies at stake. Tigerair should look into better opportunities such as expansion in other countries most probably the developing countries. They need to give guarantee to their employers through job satisfaction which will raise their morale and provide better policy guidelines to the customers regarding the security and safety policy. Conclusion According to the analysis and the marketing communication plan that we have done it is visibly noticeable that the success of Tigerair can create a new hype in the airline industry. Moreover, the efficient marketing strategies and the operational performance is going to be the key root of Tiger air accomplishment. The company is itself quite successful and they have gained a good brand recognition worldwide in the past few years. The strategies and objectives that are proposed for Tigerair in this assignment can make them improve their structure and gain the impetus which they have engendered in the past five years among their set target market. Considering from the point of view of market research, focusing on the mix audit we can clearly predict that we are now able to identify and provide recommendation for the better performance and improved mechanism along with the developed effective marketing strategies. Bibliography Lederman, M. (2007). Do Enhancements to Loyalty Programs Affect Demand? The Impact of International Frequent Flyer Partnerships on Domestic Airline Demand. The RAND Journal of Economics, 1134-1158. Retrieved from https://www.jstor.org/stable/25046356 Bisignani, G. (2006). Airlines. Foreign Policy, 22-24, 26, 28. Retrieved from https://www.jstor.org/stable/25461987 Flores-Fillol , R., Moner-Colonques, R. (2007). Strategic Formation of Airline Alliances. Journal of Transport Economics and Policy, 427-449. Retrieved from https://www.jstor.org/stable/20054029 Fu , X., Zhang, A. (2010). Effects of Airport Concession Revenue Sharing on Airline Competition and Social Welfare. 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