Report - Srilankan Airlines

;
MARKETING ANALYSIS OF
SRI LANKAN AIRLINE
Hospitality and Tourism Marketing Strategies Assignment
DILANI JEEWANTHI
CTH SM# 721001
THAMES COLLEGE/SRI LANKA
OCTOBER 2013
CONTENTS
1: INTRODUCTION .................................................................................................................... 3
1.1 INTRODUCTION TO SRI LANKAN AIRLINES ................................................................ 4
1.2 VISION AND MISSION STATEMENT OF SRI LANKAN AIRLINES ................................ 6
1.2.1 Vision .......................................................................................................................... 6
1.2.2 Mission ........................................................................................................................ 6
2: DISCUSSION .......................................................................................................................... 6
2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES............................................................... 6
2.2 MARKETING MIX OF SRI LANKAN AIRLINES .............................................................. 7
2.2.1 Products ....................................................................................................................... 7
2.2.2 Price............................................................................................................................. 9
2.2.3 Place ............................................................................................................................ 9
2.2.4 Promotion................................................................................................................... 10
2.2.5 People ........................................................................................................................ 11
2.2.6 Process....................................................................................................................... 12
2.2.7 Physical Evidence ....................................................................................................... 12
2.3 SEGMENTATION, TARGETING & POSITIONING OF SRI LANKAN AIRLINE............. 13
2.3.1 Segmentation .............................................................................................................. 13
2.3.2 Targeting .................................................................................................................... 15
2.3.3 Positioning ................................................................................................................. 15
2.3.4 Major Segmentation Variables for Consumer Markets ................................................... 14
2.3.5 Positioning Map. ............................................................... Error! Bookmark not defined.
2.3.6 Competitors ................................................................................................................ 16
2.4 ANSOFF’S MATRIX........................................................................................................ 17
2.4.1 Market Penetration ...................................................................................................... 18
2.4.2 Market Development ................................................................................................... 19
2.4.3 Product Development .................................................................................................. 20
2.4.4 Diversification ............................................................................................................ 20
2.6 MARKETING LEADERS STRATEGIES APPLIED BY SRI LANKAN AIRLINES ........... 21
2.6.1 Defense Strategies....................................................................................................... 21
2.6.2 Brand Image Strategies................................................................................................ 21
2.7 MARKETING COMMUNICATION AND PUBLIC RELATION STRATEGIES APPLIED
BY SRI LANKAN AIRLINES ................................................................................................ 22
CTH SM # 72001/ DILANI JEEWANTHI – PGD IN HOSPITALITY AND TOURISM MANAGEMENT: HTMS PAGE 2
2.7.1 Pull Strategies ............................................................................................................. 22
2.7.2 Push Strategies............................................................................................................ 22
2.7.3 Promotional Mix ......................................................................................................... 23
2.7.4 Public Relation ........................................................................................................... 23
2.8 NETWORKING, E- MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES
.............................................................................................................................................. 24
2.8.1 Network Marketing Strategies............................................ Error! Bookmark not defined.
2.8.2 E- Marketing Strategies................................................................................................... 24
2.9 SRI LANKAN AIRLINE CSR WORKS............................................................................. 24
2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE. ........................................................... 24
2.11 VIRAL MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES ............... 25
2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES ..... 25
2.13 CUSTOMER LOYALTY PROGRAMS ........................................................................... 25
2.14 RECOMMENDATIONS ................................................................................................. 26
2.14.1 Marketing Mix Recommendations .............................................................................. 26
2.14.2 Segmentation, Targeting and Positioning Recommendations ........................................ 28
2.14.3 Ansoff’s Matrix Recommendations ............................................................................ 28
3: CONCLUSION ...................................................................................................................... 29
REFERENCE............................................................................................................................. 30
Figure 1 SWOT ANALYSIS

Figure 2: Customer segmentation
Figure 3: Segmentation
Figure 4: Competitor Analysis
Figure 5: Ansoff Matrix.
1: INTRODUCTION
1.1 INTRODUCTION TO SRI LANKAN AIRLINES
Sri Lankan Airlines is the national airline

in Sri Lanka managed by the government
and based at the Bandaranaike
International Airport and Mattala
Rajapaksa International Airport. Sri
Lankan Airline is a member of IATA and
ICAO, flying over 34 destinations around
the world. It is a famous airline
especially in Asia and Europe which was
founded in 1947 as Air Ceylon for the last 66 years they expand their services to many areas
such as introducing a budget airline Mihin Lanka, online facilities, engineering department,
selling holiday packages, air taxi (domestic airline), micro tourism, airline training and
technical training. The other services include the cargo and catering.
Sri Lankan Airlines has been numerously awarded for their contribution of providing safe,
reliable, comfortable and punctual services. The aim of the organization is to provide high
customer service, best traveling experience and satisfaction for the customer which will
create a good reputation. Achieving those goals ultimately developed the tourism and the
economy of the country.
The aircrafts consists of economy and business class seating’s, with the latest technologies on
board ranging from onboard TV, radio, games and refreshment services. All seats are
luxurious and comfortable; the difference in the Business class is that there are flat-bed
seats,special meals, and cocktail personal services. Then there are audio and video system
and video games for entertainment for the passenger. The airlines have their own catering
service and it provides the facilities for other airlines operating in the international airport.
Every day they cater 25,000 meals and operate 24 hours and 365 days of the year. There are
800 employees working in the kitchen. It also includes fine –dining restaurant and they
provide meals for the transit hotel at airport. Principally they have fast reservation system to
book through e-ticketing and time scheduling of check in. The advantage of this facility is
that the customer can easily plan their traveling dates and time without tour operators using
their own laptop or PC .There is diverse work force of 5900employees in Sri Lanka and
overseas. These employees complete the training at IATA and the airline has a training
school which offers two courses. They are, IATA training and the technical training. Mainly
they promote the tourism with introduction of many programs such as tour packages, air taxi
service for tourist attractions and micro tourism.
According to that information, I believe the Sri Lankan Airline is one of the best
organizations to implement and research marking strategies. There is lots of advantages for
choosing this topic. The main reason is that the airline is directly linked to many businesses
especially, the tourism business. Today, the tourism industry is developing faster than ever
before. Each year nearly 1000000 tourists visit Sri Lanka and it is very important to provide
efficient transportation to these tourists. Sri Lankan Airline has identified this and has
expanded their service with domestic airline. This expands as well as the increase of tourist
arrivals has resulted in the growth of other areas such as such as export and import, banking
and telecommunication. Every year it creates many job opportunities and it increases the
income level of all employees.
1.2 VISION AND MISSION STATEMENT OF SRI LANKAN AIRLINES
1.2.1 Vision
 To be the most preferred airline in Asia.
1.2.2 Mission
 We are in the air transportation business. We provide our customers with a reliable
and pleasant travel experience. We provide our business partners with a variety of
innovative, professional and mutually profitable services. We meet Shareholder
expectations of profitably marketing Sri Lanka and contributing towards the well-
being of Society. We are a competent, proactive and diligent team. Our contribution is
recognized and rewarded.
Source: http://www.srilankan.com/en_uk/coporate/vision-and- mission
2: DISCUSSION
2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES.
STRENGTH WEAKNESS
 Sri Lankan Airline is a reputed Brand  Flight is not well maintained.

Name.
 Flights are delayed and cancelled.
 Cabin crew’s uniform hasn’t changed in a

 Customer Reputation of Service standard
long time.
 Still the airline dose not gets any profit.

 Safety recorders and fast travelling.
 Fixable traveling cost.  Large number of employees works at Sri
Lankan Airline
 Good image of Sri Lankan hospitality
service.  Most of flights operate in short haul.
 AITA training staff
 Communication barriers
 Attractive food and beverage services.
OPPORTUNITY THREATS
 The government’s airport developing  Increasing fuel cost

project.
 The government’s tourism developing  Increasing cost of employee’s salaries

project
 Competition with other airline
 The government has decided to buy new
aircraft next year.
 Rising cost of sales and marketing
 New air routes have been decided for flying
 Increase in business travelers in Sri Lanka.
Figure1 SWOT ANALYSIS
2.2 MARKETING MIX OF SRI LANKAN AIRLINES
2.2.1 Products
Sri Lankan airline identified the expectations and values of the customers and they offer the
best high standard service to the customers to make them feel comfortable and satisfied.
 Destinations:Europe, Middle East, South Asia, South Asia Far East, Australia, North
America, Canada and Africa
 Cabin Services:The main product is the
cabin services, the cabin is design for two
main areas Business class and Economy class
and the airline carter for all classes
‘passengers as their best. In the flights,
television for every seat with audio and video
facilities along with a video game system.
Source:
http://www.srilankan.com/en_uk/flying- with-us/business-class
 Cargo Services: The other service is the

cargo services to the countries of Europe,
Middle East, South Asia, and South Asia Far
East.
Source: http://www.srilankancargo.com
 Catering Services: The airline handles all food and beverages from their catering
services. Fine dining
restaurant is also
present.
 Other Services: The remaining of the important services of this airline is E ticketing,
air taxi, information desk, holiday packages, MICE tourism, IATA training, technical
training etc.
 Short Time Travel: There is lot of flights operating to Middle Eastern markets. The
reason for this is there are Sri Lankan employees
working in these countries and some people fly
to those counties for business and leisure. This
market price is low. (Major reason is the fuel
cost not being effective).
 Depend on the Special Service:

 Child care or medical treatment available. Extra
services such as wheel chairs and stretcher cases
for them for extra payment.
2.2.2 Price
The price depends on the destination they choose to fly (Long or short hours flying).
 Operation cost: Operation cost to fly one air craft set for one kilometer. Passenger
Load Factors -The total revenue of passengers for kilometers is divided by availability
of the seat kilometers.
 Categories: High price for business class low
price for economy. Discounts for Middle East,
South Asia Far East for business class.
 Travel agent commission
2.2.3 Place
There are two hubs located in Sri Lanka, major one is
the Bandaranaike International Airport at Katunayaka
and the other is, Mattala Rajapaksa International Airport
at Hambantota.
There are branches in 64 destinations in 34 countries and online reservation system with 6
different languages the customer can book their tickets, tour packers at online or by calling
(Dial a ticket service.) .
24 hours reservation offices available at airport and e ticket booking.
Tour operators in many destinations
, Source: http://www.google.lk/imgres www.srilankan.com
2.2.4 Promotion
 Advertising: Newspapers, websites, magazine (Sri
Lankan cultural values promoting, and natural beauty
of the country and airline service and facilities).
 Travel Agent Promotion: 70% of sales are done by
domestic ticketing offices.
 Exhibition and Trade Shows: Participation in worlds travel exhibitions and fairs
 Sponsorship: Sri Lankan Airline sponsors sports and traditional events such as
Chinese New Year day in Sri Lanka, IATA events and food promotions in Middles
Eastern countries.
 Special Offers: Business class tickets for low price, extra 10kg allow for students,
insurance for business class passengers and duty free offers.
 Sales Promotion: Tour packages of Sri Lanka, and hotel booking
 In the year 2012, Sri Lankan Airline spent Rs 430 million for advertising
and promotion.
Source:http://www.srilankan.com/en_uk/coporate/latest-news/55,
http://www.srilankancargo.com/about-us/latest-news/15
2.2.5 People
The Sri Lankan airline highly promote the culture of Sri Lankan hospitality service with all
traditional values, principally the warm greeting with smiles to the customer
saying“Ayubowan”(may you live long), and the air hostesses wear the traditional sari’s as
their uniform. They all work as a term with the aim of satisfying the customers, to provide the
best service, to create good image for the airline and build strong relationships with
customers. There are two main slogans for this airline. First one is “You’re Our World “and
second one is “We Change the Way You Fly”..
2.2.6 Process
There is new business lounge opened for business
class guests with all facilities and service call
“Serendip Lounge’’ at the airport. There is an
online reservation system, 24 hours call center, e
ticketing and on phone reservation system with all
details of flight service such as arrival, departure and
the flight route. Other airport facilities including fine
dining restaurant, money exchange service, taxi service, medical facilities and tagging the
baggage etc. Within the flight also they provide many services such as in-flight
entertainment, food and beverages service on the request of passengers a la cart menu with
lots of varieties.
2.2.7Physical Evidence
The Sri Lankan airline’s all offices at checking
counters wear the badges, all the papers use come
with the logo and the logo at air ticket , The
cleanliness at the cabin and, the logo image at air
craft the uniform designing their ambience baggage
tagging.
2.3 SEGMENTATION, TARGETING & POSITIONING OF SRI LANKAN AIRLINE
Figure 1: Customer positioning map.
Business Class
In Bound in Bound
Exclusive Exclusive
England, German, France Singapore

,
Dubai
Singapore , Dubai
Low High High Low
Price Price Price Price
India, Maldives India
Out Bound out Bound
2.3.1Segmentation
Understanding of the key segments of the product and service to satisfy the customer needs it
helps to identify the best opportunities at the market place, based on geographic,
demographic, psychographic and behavioral factors.
Figure 2: Customer segmentation
SLA Customers
Business Leisure travelers Student s Employees

passengers study at over work at over
sees sees
2.3.4 Major Segmentation Variables for Consumer Markets
Figure 2: Segmentation
Geographic Details
This is based on cities and countries the airline For Muslim people macramé tours .( including all
do their operation. facilities such as hotel booking car service )
Tours for Delhi , Paris , Singapore etc. For holidays, shopping and religious festivals.
Demographic Details
Income The families get high income and they spend

The SLA does lot of flight operations to their holidays overseas.
Singapore, Malaysia and Hong Kong. The packages for students ( England, Singapore )
Education
Psychographic Details
Lifestyle .The SLA do different tour packages Some customers want to go for religious places.
for their customers after identifying there Other customers want to enjoy.
requirements. Some customers fly only for sport events.
Behavioral Details
Occasions Seasonal promotion

Loyalty Status Fly smiles programs with rewards.
2.3.2 Targeting
The major target market is business travelers and leisure travelers and they are also divided
into another two factors inbound tours and outbound tours.
2.3.3 Positioning
The advantage for business class customers is the airline offer special especial allowance and
discount for regular customers it depend on their membership states and they can use the
business class lounge at the airport with all facilities and one the other hand there are special
services also for those customers in flight flat bed for every seat and all flight entertainment
cocktail service special meals etc.
Source - http://www.srilankan.com/en_uk/coporate/about
2.3.5 Positioning Map.
Exclusive
Low Price High Price
Figure 4: Positioning map of Sri Lankan Airline with its competitors
2.3.6 Competitors
The marketing concept states that to be successful, a company must provide greater customer
value and satisfaction than its competitors. All major competitors of SLA are in high air taxi
class (5 stars) however, as the national airline, it has reputed brand name very comfortable
passenger service and special meals they provide more services than their competitors.
Example- Traditional Sri Lankan breakfast.
Airline Emirates Qatar Cathay Singapore Spice jet Jet airways
Pacific Airline
Logo
Air Tax 5 star 5 star 5 star 5 star - -

Class
Route 78 countries 69 42 35 8 19 countries

Network countries countries countries countries
Figure 4: Competitor Analysis
Source -http://www.google.lk/imgres
2.4 ANSOFF MATRIX

Marketing has the main responsibility for achieving the profitable growth for the company
marketing need to identify, evaluate and select market opportunities and lay down strategies
for capturing them. Appling Ansoff strategies help identified where they are now and how to
achieve the goals.
Figure 5 : Ansoff Matrix.
2.4.1Market Penetration
As a marking strategy, increase sales without changing its original product the Sri Lankan
airline introduce membership card for passengers when they fly often the airline offer lot of
benefits for under their membership credit. There are three membership cards one is blue,
silver and gold. That is (Fly smile program) when passengers fly from Sri Lankan airline
members will be befitted every time they fly. The benefits include, credit for extra baggers,
free meals and special meals on request which would encourage passengers to be regular
users.
Sourcehttp://www.flysmiles.com/about-flysmiles/benefits, http://www.google.lk/imgres
There are other promoting programs introduced for
leisure travels call “destination sales” from these they
promote the tourist attraction places for special
reasonable price.
Source - http://www.srilankan.com/en_uk/special-offers/destination-sale
Further, promoting program is for student they allow extra 10 kg baggers for free of charge.
Source: http://www.srilankan.com/en_uk/special-offers
Finally there is special program for children call “young smiles’ for children age 2 to 18 to
make happy journey for them .
Source: http://www.flysmiles.com/youngsmiles
E - Ticketing and dial ticketing programs.
2.4.2Market Development
The market development is identifying and developing new market for its current product.
Therefore airline expand their services to other tourist destination and enter to new market
those are Indian, Chinese and Russian market, some destination the airline fly directly other
destination the airline fly with partnership.
Appendix 1 new markets.
2.4.3Product Development
The government has decided to buy new aircraft for the airline.
Source: http://www.lankanewspapers.com/news/2013/4/82604_space.html
The new business lounge call “Serendip Lounge” the capacity of this place is 150 people
there is food corner, bar and other all business facilities.
Source:http://loungeindex.com/Asia/Sri%20Lanka/CMB/Sri%20Lankan%20Airlines%20Ser
endib%20Lounge/index.htm
The airline handling large group visits for Sri Lanka for the holidays and they organize
meetings, conferences and other events too. (There is department for this.)
Source: http://www.ft.lk/2013/04/30/slcb-srilankan-airlines-make-bid-for-mice-tourism-in-
gurgaon/, http://www.srilankan.com/en_uk/coporate/latest- news/98
Source - https://www.facebook.com/flysrilankan
2.4.4 Diversification
New product for new market is not practice.
2.6 MARKETING LEADERS STRATEGIES APPLIED BY SRI LANKAN AIRLINES
2.6.1Defense Strategies
The Market Leader used defense strategies for develop the market place, the Sri Lankan air
Line use Position defense to expand the market place and maintain the market. Therefore
they always advertising the bard name they promote it on lot of TV advertisement,
newspapers, and at their own magazine and other social web pages`.
2.6.2 Brand Image Strategies

The Sri Lankan Air Line is 3 star luxury airlines and this brand
image is very powerful because this image is very valuable for Sri
Lankan people and there are lots of loyal customers under this
image. This logo is a bird call a peacock the main reason for
selecting this bird, at the ancient time, there was a king who lived
in Sri Lanka called“Ravenna”and he made a flying ship called“dadumonara” shape of this
bird. According to that, they selected this peacock image this bird represent our history and
culture .This logo is simple, very colorful and strong and it will always remind customer’s
reason is it is beautiful.
Source: http://www.brandsoftheworld.com/logo/sri-lankan-airlines
2.7 MARKETING COMMUNICATION AND PUBLIC RELATION STRATEGIES
APPLIED BY SRI LANKAN AIRLINES
The Sri Lankan airline strongly uses personal communication and mass communication to
pass the information for new customers and loyal customers.
2.7.1Pull Strategies
This strategy use for promote new routs every month they promote new destination with
special price and with allowance and make customer demand for this service and they
Advertise their own webpage and social networks and newspapers for customers there is
adverting cost for this. .
Sri Lankan airline Online Reservation Customer
And advertising
Promote mix
2.7.2 Push Strategies

The airline marketing department promotes their product through domestic travel agent and
international travel agent sponsoring other counties events and participate trade shows and
other tourism event.
Sri Lankan Airline ` Travel agent Customers
Domestic and International
2.7.3PromotionalMix
 Advertising: TV advertisement, paper and

magazine, online advisement, official web
page advertisement face book and other
social media.
Appendix 2 promoting
Source http://www.srilankan.com/en_uk/special-offers/destination-sale
 Sales Promotion: Marketing department
promotion and advertising marketing
campaign
 Public relations: CSR work (For children
and elder people )
 Sponsorship: Sport event Surfing classics
midlives and Sri Lanka, Ruby and Golf sport
tournament.
Source: http://www.srilankan.com/en_uk/coporate/about
2.7.4 Public Relation

 Press Agencies:Sri Lankan Airline advertises all PR facilities at their wed page, the
Serendip magazine and other magazine newspapers in Sri Lanka and other foreign
countries.
 Product Publicity: Their main product is business class, and economic class, cargo
etc. all details at web.
 Company Magazine: The Serendip Magazine promotes new updates in airline Sri
Lankan tourist attraction places product and government targets.
 Annual Reports: Every year annual report public with all details of Profit lost and
other CSR works.
 Lobbying: Help children homes and elder people homes. And help for government to
develop the tourism.
 Sponsorship: Sponsoring sport event and other government events. (Golf 2013
Commonwealth )
2.8 NETWORKING, E- MARKETING STRATEGIES APPLIED BY SRI LANKAN
AIRLINES
To deliver the information and promote new updates and make good customer relationship
this channel is use.
2.8.2E- Marketing Strategies

 E –Business: e –ticketing (book ticket from web)
Source:http://www.srilankan.com/en_uk/flying-with-us/e-ticketing
 E- Marketing: Information about product and services, (in flight and airport) tour
packages, Sri Lanka and other countries online feedback facility, face book and other
social network promoting
Source:http://serendib.btoptions.lk/index.php/http://www.srilankan.com/en_uk/coporate/feed
Appendix - 3 E- marketing.
2.9 SRI LANKAN AIRLINE CSR WORKS.

Help children in rural area build class rooms with all
facilities, such as computer room home science room
playground and for selected 12 children provide other
necessary items for education (bags, books, shoes etc.)
Source:
http://www.island.lk/2006/03/19/business10.html,http://www.ft.lk/2010/11/12/srilankan-
airlines%E2%80%99-cabin-crew-builds-children%E2%80%99s-home-in-trincomalee/
2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE.

All detail about product promotions, distribution and new updates.
Product – cabin, meals, entertainment, child care etc.
Promotion – UL Promotion and Partners Promotion inbound and out bound tours.
Distribution – Their all offices around the world.
New updates – Young smile program etc.
2.11 VIRAL MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES
Using social networks their build up strong relations ship guest, treat all clients in friendly
manner promote in word of mouth, from fly smile client encourage use UL promotion and
partner promotion.
2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN

AIRLINES
Source - https://www.facebook.com/flysrilankan
Sri Lankan Airlines do sometimes implement guerrilla marketing strategies to credit and
debit cards of some banks as well as they do advertise inside the fleet. Example: In board TV
advertisements.
2.13 CUSTOMER LOYALTY PROGRAMS

There is customer relationship program “Fly smiles” from
this when a person fly with them that customer enroll it and
they can register and make a profile and be a member. There
are 3 membership stated blue, silver, gold every time they
use airline or partners goods and service the feel miles
updated therefore this members has lot of rewards allowance
and other benefits.
Source: http://serendib.btoptions.lk/diary.php?issue=46&type=4 ,http://www.google.lk/imgres
Appendix 4Fly smiles program
2.14 RECOMMENDATIONS
To achieve the goal at the business and make profit I recommend UL use SMAT objective.
S Increase the quality and make profit
M Training and motivation the staff
A Limit all unnecessary expenses.
R Make profit for ALA
T Year 2017 become 5star air line.
2.14.1 Marketing Mix Recommendations

Product
Sri Lankan airline currently maintaining two categories in the aircraft which are Business
class and economy class. As Sri Lanka is emerging as Asia business hub it is important to
have First class category for VIP Passengers. On the other hand introducing upper economy
class and lower economy class allow the airline to offer more versatile price range for the
customers.
Crate a lounge for economic class which includes dining facilities and computer facilities.
Include a computer lab for business class passengers with internet, email, fax, photo copy,
and printing facilities.
Price
Comparing to competitors, the Sri Lanka airline prices are fairly high therefore introducing
special prices in April, August and December is an opportunity for them increase the number
of passengers and the profits as low prices will encourage more people to fly.
Today’s trend is that many chose to spend their holidays overseas. To maximize the benefit
from this trend the airline can introduce holiday packages including air ticket, hotel, and Taxi
service for their requirements at a competitive rate that will attract more people.
Targeting young crowd and create tours for them at a reasonable price is another way to
expand.
Example when there is beach parties in Goa in India Sri Lanka airline can promote those for
the younger crowd leisure travelers and this short flight destinations are one way of
maximizing profits..
Place
Connecting the smaller aircrafts in to the main terminal rather than using a different facility
will increase the efficiency of the main terminal and reduce the costs.
At ticketing counters and information desk improve higher level of customer service to
passengers as well as advertising flight information on the TV at ticketing counters
Example – how many tickets available at the moment, Weight of the luggage’s flying hours,
weather and time information of the destinations.
Promote online and dial up reservation.
Promotion
Sri Lanka airline is heavily promoted every year but still there is a shortfall in the profits. The
reason is more likely that the massage is not powerful enough to attract passengers.
When promoting new destinations effective channels such as news papers, magazines, TV
local& over sees and radio must be used. On the other hand they the massage is very
important therefore it should include strong argument into why a person not only choose the
airline but also the destination.
Example whether it is a holiday destination or business destination or both, the advertising
should focus on presenting the activities that will be present at the destination, a glimpse to
the experience that would last for a lifetime and also the prices.
The Sri Lanka airline has one of the biggest markets in Middle East so it can promote extra
luggage allowance for the Middle East which would automatically it increase the market size.
People
Do the motivation and training programs for the staff for high level of customer service and
satisfaction of all passengers fly in UL.
Attractive uniform for the female staff
Appendix 5 new uniforms.
2.14.2 Segmentation, Targeting and Positioning Recommendations

Segmentation
Aim for first class passengers, sport tourisms.
Targeting
The 80% of passengers fly in this airline buy economic class tickets ‘expectations are mainly
comfortable seating, delicious food, beverages, watch good movies and enjoy their journey.
Positioning
Business class passengers ‘expectation is, more space, comfortable seating, cocktail service,
internet services, and more magazines to read. Principally Business class passengers are
flying to Europe, Singapore and Middle East. Higher customer service will be an opportunity
for airline develop the routes and sell more seats in business class.
2.14.3 Ansoff Matrix Recommendations
Market Penetration
For business class passengers in bound or out bound introducing all inclusive packages are
important. Next is at Serandip magazine promotes what are the opportunities available in Sri
Lanka for business and the facilities such as use of internet and telephone service in order to
match with the competitor Emirates airline.
For Leisure traveler’s family packages, all inclusive packagers, in bound or out bound,
Airline can link their Air taxi service and make special packagers for honeymooners, and
when there are Kandy Festival Season introducing special packages for passengers directly to
Kandy.
Market Development
Introduce more direct flights to new destinations for competitive price and good services.
Product Development
Develop airline facilities and Features.
Promote the training schools
3: CONCLUSION
Today there is rapid development in tourism industry in Sri Lanka. Sri Lankan airline does
the main part of this development, first at the airplane they give best customer service to all
passengers and make a good image of Sri Lanka hospitality service and they promote the
county’s cultural values etc , though their web page and Serandip magazine. At the airport
also they offer good customer service and all these qualities make a reputed brand name. This
is the strength of them; it helps to open many doors for future development and to be one of
the best airlines in Asia
Referencing.
Bibliography & Publications
 Kotler, P. And Armstrong, G., (2007) Principles of Marketing. 12th ed. Harlow: Prentice Hall
Companion.
Principle of marketing Kotler, P,Gary Armstrong second impression 2011.
http://www.srilankan.com/en_uk/coporate/about retrieved October 20
http://www.srilankan.com/en_uk/coporate/vision-and- mission retrieved January 20 2013
http://www.srilankan.com/en_uk/flying- with-us/business-class retrieved October 20
http://www.srilankancargo.com retrieved October 20 2013
http://www.flysmiles.com/about- flysmiles/benefits, retrieved October 20
http://www.srilankan.com/en_uk/special-offers/destination-sale retrieved December 2011
http://www.lankanewspapers.com/news/2013/4/82604_space.html retrieved October 20
http://www.ft.lk/2013/04/30/sl
http://www.brandsoftheworld.com/logo/srilankan-airlines retrieved January 2013
https://www.facebook.com/flysrilankan?hc_location=stream
http://serendib.btoptions.lk/diary.php?issue=46&type=4 retrieved October 20
http://www.island.lk/2006/03/19/business10.html
,http://www.ft.lk/2010/11/12/srilankan-airlines%E2%80%99-cabin-crew-builds-
http://www.sundaytimes.lk/090125/Magazine/sundaytimestvtimes_08.html 25, 2009

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Figure 1 SWOT ANALYSIS

Figure 4: Competitor Analysis

Figure 5: Ansoff Matrix.

1.1 INTRODUCTION TO SRI LANKAN AIRLINES

Sri Lankan Airlines is the national airline

Source: http://www.srilankan.com/en_uk/coporate/vision-and- mission

2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES.

 Sri Lankan Airline is a reputed Brand  Flight is not well maintained.

 Cabin crew’s uniform hasn’t changed in a

 Still the airline dose not gets any profit.

 The government’s airport developing  Increasing fuel cost

 The government’s tourism developing  Increasing cost of employee’s salaries

Figure1 SWOT ANALYSIS

2.2 MARKETING MIX OF SRI LANKAN AIRLINES

 Cargo Services: The other service is the

 Depend on the Special Service:

24 hours reservation offices available at airport and e ticket booking.

Tour operators in many destinations

, Source: http://www.google.lk/imgres www.srilankan.com

 Sales Promotion: Tour packages of Sri Lanka, and hotel booking

Figure 1: Customer positioning map.

England, German, France Singapore

Low High High Low

Price Price Price Price

India, Maldives India

Out Bound out Bound

Figure 2: Customer segmentation

Business Leisure travelers Student s Employees

2.3.4 Major Segmentation Variables for Consumer Markets

Income The families get high income and they spend

Occasions Seasonal promotion

Low Price High Price

Figure 4: Positioning map of Sri Lankan Airline with its competitors

Air Tax 5 star 5 star 5 star 5 star - -

Route 78 countries 69 42 35 8 19 countries

Figure 4: Competitor Analysis

2.4 ANSOFF MATRIX

Figure 5 : Ansoff Matrix.

E - Ticketing and dial ticketing programs.

Appendix 1 new markets.

2.6.2 Brand Image Strategies

Sri Lankan airline Online Reservation Customer

2.7.2 Push Strategies

Sri Lankan Airline ` Travel agent Customers

Domestic and International

 Advertising: TV advertisement, paper and

2.7.4 Public Relation

2.8.2E- Marketing Strategies

2.9 SRI LANKAN AIRLINE CSR WORKS.

2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE.

Product – cabin, meals, entertainment, child care etc.

Distribution – Their all offices around the world.

New updates – Young smile program etc.

2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN

2.13 CUSTOMER LOYALTY PROGRAMS

Source: http://serendib.btoptions.lk/diary.php?issue=46&type=4 ,http://www.google.lk/imgres

Appendix 4Fly smiles program

S Increase the quality and make profit

M Training and motivation the staff

A Limit all unnecessary expenses.

R Make profit for ALA

T Year 2017 become 5star air line.

2.14.1 Marketing Mix Recommendations