Beruflich Dokumente
Kultur Dokumente
2011
Strategic Management
Table of contents
1. Introduction 2. General description of the company 3. Vision, mission and corporate alues !. Strate"ic o#$ecti es %. Analysis of e&ternal competiti e #usiness en ironment '(orter)s model* +. S,-. Analysis, (ES. Analysis
7. Strate"y description / implementation
1. Introduction
A comprehensive marketing plan for Turkish Airlines, particularly focusing on its services, product differentiation, target markets and customer segments is vital to ensure its survival against the existing services provided by its competitors - British Airways, Pegasus Airlines and Easy et! The ob ective of this strategic marketing management plan is to further develop Turkish Airlines market share in summer "#$# and winter "#$#%$$ period through marketing programs and initiatives! The task undertaken begins with overview of the company, its products for the worldwide market and competitive advantage! &n order to better understand where Turkish Airlines should focus its strategic marketing management campaign and how it should differentiate its product several analyses are made! The report also looks at the airline internal strengths and weaknesses through '()T analysis and identifies the airline external operating environment through PE'T analysis! *arketing promotions highlighted in this strategic marketing management plan serve to increase market share in the short term while the advertisements seek to increase product and brand awareness in the long term! +inally, the report will be concluded with an overall summary of the company situation, market share and evaluation of its future marketing activities!
The +leet in $655 " Ding Bird 7> seats8 " Bunkers +-$5 7A seats8 $ Tupolev AET-6 7$# seats8 &n $654, the name was changed to K0eneral Jirectorate of 'tate AirlinesK and was operated under the *inistry of Transportation &n $6A>, JC-5 aircraft oined the fleet &n $6A:, the first international flight was held between Ankara and Athens via &stanbul!?nder the control of Adil 0oFender and )rhan Ayata,The JC-5 aircraft registered as TC-ABA took off from Ankara in the morning at $#!## to Athens after making transfer in &stanbul!The ourney last " hours and A# minutes totally! Postwar Period The airline benefited from the postwar ?!'! assistance program to Turkey! (ith the help of Pan American, the fleet was upgraded with Jouglas JC-5s!T,- soon added to the route network were Eicosia, CyprusL Beirut, IebanonL and Cairo, Egypt! Jomestic service remained the airline;s focus until the $69#s, however! The Turkish government reorganiFed the airline in $6>9 under the name T1rk ,ava -ollari A!)! 7T,-8! &t was capitaliFed at TGI 9# million! British )verseas Airways Corporation 7B)AC8 began supplying technical support after ac/uiring a 9 percent shareholding,which it held for about "# years! The fleet was upgraded with Miscounts and +okker +":s in the late $6>#s! The company began operating its first et, a JC-6, in $69:! This was followed by the addition of a leased Boeing :#: in $6:$! )ther ets operated in the early $6:#s included the JC-$# and Boeing :":! 1980s and 1990s ?nfortunately, the airline was plagued by a several difficult issues! &t developed a reputation for poor customer service and delays! &t also endured hi ackings and suffered seven accidents between $6:A and $645, noted Air Transport (orld! ,owever, a new government came to power in $645 which recogniFed T,-;s importance as Turkey;s ambassador to the world, beginning the airline;s make-over into a modern operation! &t would maintain one of the youngest fleets in the world! 'ecurity was intensified, causing one shipper to compare it to &srael;s El Al, at least in terms of delays! T,- built a new, state-of-the-art technical center at -esilkoy Airport in $64A! &t was capable of both light and heavy maintenance on a number of different aircraft type! Technical staff then made up one/uarter of the airline;s 9,### employees, according to Air Transport (orld! n $64A, the company;s capital was raised to TGI 9# billion as it was classified as a state economic enterprise! Three years later, the capital was raised again, to TI$># billion! By the mid-$64#s, T,- had a fleet of 5# aircraft! &t was flying about three million passengers a year to $9 domestic destinations and three doFen international ones! The airline was Turkey;s largest source of foreign currency, according to Air Transport (orld! Turkish Airlines operating Airbus 5$#s in $64>, allowing the addition of flights to 'ingapore in $649! A route to Brussels and Eew -ork was added in $644! The company posted losses in $64: and $644, largely due to high payments on its doFen new Airbus A5$#s, according to Air Transport (orld! The fleet also included $$ Boeing :":s and nine JC-6s! T,- ended the decade with 4,>## employees! The company suffered in the global aviation crisis following the Persian 0ulf (ar and would not break even again until $66A! ,owever, business was again booming in the mid-$66#s, with the greatest growth coming from Eorth American destinations! T,- launched a nonstop to Eew -ork in
Buly $66A! The company;s capital continued to be raised, reaching TGI $# trillion in $66>! Juring that year, the airline also converted three of its Boeing :":s to dedicated freighters! 7The old JC-6s had been sold off!8 The company posted a @9 million profit on revenues of @$ billion for the year! (hile profitable, T,- had to contend with Turkey;s exorbitant inflation, making capital improvements difficult! The domestic market was deregulated in $669, allowing new scheduled competition from charter airlines! At the same time, larger international carriers were providing stiff competition on routes to (estern Europe! T,- entered into marketing agreements with other international airlines to enhance its competitiveness! The company teamed with Bapan Airlines to offer service to )saka and Tokyo in $66: and $664! )ther ointly operated flights soon followed with Austrian Airlines, 'wissair, and Croatian Airlines! 2000s A new terminal opened for the airline in Banuary "### at &stanbul;s Atat1rk &nternational Airport! Turkish Airlines continued to extend its international reach, forging marketing agreements with Asiana Airlines 7'eoul, Dorea8, American Airlines, *alaysian Airlines, I)T Polish Airlines, CFech Airlines, and Cathay Pacific Airlines 7,ong Dong8 in "###! An Antalya-+rankfurt route was added in "##$ through a code sharing agreement with 'un Express! ,owever, T,- withdrew from the 'wissair-led Nualiflyer Alliance in order to help attract a strategic investor in its privatiFation! Turkey underwent an economic crisis throughout most of "##$, cutting traffic on domestic routes in particular! T,- managed to survive after the 'eptember $$, "##$ terrorist attacks on the ?nited 'tates without a government bailout or mass layoffs, although 5## middle management positions were eliminated, A## part-timers were laid off, and wages were cut $# percent! Turkish Jaily Eews credited the airline;s survival to entrepreneurial management, which was /uick to cancel loss-making routes at home and abroad! &n "##5, the war in &ra/ prompted Turkish Airlines to close some routes in the Persian 0ulf, while flights to Asia were suspended during the 'AG' epidemic! ,owever, the airline soon recovered, increasing fre/uencies on existing routes and adding service to &ndia 7Eew Jelhi8 after an $$-year lapse! Another fleet expansion program kicked off in "##A, helping T,maintain one of the youngest fleets in Europe! &n Buly, the airline announced the massive order of 59 ets from Airbus, worth @"!4 billion, plus another $> Boeing :5:s! T,- was not ust ordering new planes! &t was planning to spend @5># million on a new technical and training facility at &stanbul;s underutiliFed 'abiha 0okcen &nternational Airport, reported Air Transport (orld! The airline had built up a significant technical services operation, maintaining not ust its own aircraft but those of third parties! Turkish Technic employed ",:## and was planning to hire another ",### by "#$#! T,- also had three flight simulators and offered flight training services! Although the company was publicly traded, the government owned 64 percent of shares! The privatiFation program was revived in "##A with a public offering of "# percent of shares on the &stanbul 'tock Exchange! The Turkish government owned :> percent of shares after the offering, which raised @$:# million! T,- was divesting its ># percent holding in Cyprus Turkish Airlines 7Dibris Turk ,ava -ollari8 in "##>! T,- faced the entry of new competitors into the liberaliFing Turkish aviation market! ,owever, tourism was booming, with "# million people expected to visit the country in "##> versus $" million in "##5! T,-;s financial statements should be read in light of a new currency created in Banuary "##>! )ne Eew Turkish Iira 7-TI8 is e/uivalent to one million of the former Turkish Iira 7TGI8!
. !trate"ic #$%ecti&es
Turkish Airlines main goal is to become the most preferred operator on flights to Turkey 7and beyond8 for both leisure and business travelers! Another ma or goal for the company is to be the bridge between the Asia and European markets through their &stanbul hub! This goal will be achieved by strong focus on transit passengers! The main ob ective of the strategic marketing management plan for Turkish Airlines is to increase the generated revenue in the business segment in order to secure the financial sustainability and future growth of the company and its premium product in the global market! This will primarily be achieved in three stagesL firstly by defining the market to narrow the market focus to consumers and businesses that are /ualified to or are already users of business class air travel, secondly by further identifying the available market from rest of the countries not emerged yet and finally targeting the potential market for additional leisure and business travel on the route! Each
segment of the market will be targeted to increase Turkish Airlines sales and improve the airlines load factors!
/. !0#T Anal(sis
Strengths Expanding home market economy and favorable demographicL 'trategic geographic positionL 'ubstantial cost advantage over rivalsL Gising market shareL 'tar Alliance membership and close relationship with IufthansaL %ea&ness ,igher risk organic growth strategyL *assive fleet growth to fundL ?nder-utiliFing the potential of a strong allianceL $pportunities A growing market, despite the economic crisisL A popular tourism destinationL Benefiting from liberaliFation policiesL
Threats ICCs increasing their presence L Currency shifts may inhibit profitabilityL
,1!T Anal(sis
Political >#!6Q of the company shares - public, the rest remain state-owned L strong political%governmental backupL Sociological uni/ue growth opportunityL population of :> millionL Economical dynamic economyL relatively large geographical area 7:4#,### s/ km8L increasing disposable income among its populationL Technological Eew fleet L e-ticketing L e-services L e-customer careL
Turkish Airlines is one of the very few airlines in the world that implemented private suite on its long haul fleet! This is a uni/ue product focused towards the needs of superior customers and awareness of this product in the global market will increase the passenger demand for the onward flights of Turkish Airlines from &stanbul! *ost red($tions Cost reductions can be achieved by reducing the office premises and ground staff the airline use! +ocusing on online bookings, e-customer services and e-technology will be a ma or ob ective in achieving cost cuts! Thus, the benefit would be given to consumers in the way of cheaper tickets or special discounts!
5. Conclusion
Turkish Airlines market presence will be achieved by relying on the strategy of identifying and serving well both leisure and business market! Geservations will be centraliFed and cost effective, by populariFing the official website of the airline! 'trategic marketing will be media generated to the business and corporate accounts with combined media and direct sales focused to the leisure market! The marketing programs section of this report highlights the set of co-ordinated actions that will be implemented to meet the airlines marketing ob ectives and to attract existing business class travelers from competitors! The advantage of a local and highly identifiable market is that media selections can be limited in scope! The most effective media is expected to be outdoor billboards and posters on buses and underground, as they have acted as a key generator of sales for other airlines! Presence in the popular social websites would be beneficial in order to increase brand awareness and can be used as powerful marketing tool for advertising promotions, etc! Based on all these actions, Turkish Airlines can meet its challenges and act in order to achieve its set goals and ob ectives, as well as to maintain its leadership position in the global market!
16. 4eferences
Joganis G! 7"##98, HThe Airline BusinessT, "nd edition, Goutledge Publishing, ?'A Joganis G! 7"##68, H+lying off course . Airline economics and marketingT, Ath edition, ,arperCollins Academic, ?'A
Tony Proctor . "###, H'trategic marketingS an introductionT, ?'A
+e, sites: Turkish AirlinesS www!turkishairlines!com Pegasus AirlinesS www!flypegasus!com EasyBetS www!easy et!com Emirates Airline 'trategiesS www!emirates!com 7$8 www!skytrax!com 7"8 www!skyscanner!net 758 www!ba!com &stanbul . Ataturk AirportS www!ataturkairport!com Centre for AviationS httpS%%www!centreforaviation!com% Turkey Tourism AuthorityS www!tourismturkey!org Turkey Misitors siteS www!goturkey!com European Culture CapitalS www!en!istanbul"#$#!org Turk 'tatistic &nstituteS www!turkstat!gov!tr