Hk airlines promoting plan for india essay
1 . Introduction
The objective of this task is to develop an international promoting plan for Hk Airlines to expand towards the India marketplace.
The 1st part of the project will cover the present marketing mixture and strategies of Hong Kong Airlines, as well as the SWOT analysis. The other
portion will evaluate the India market and explore the feasibility for Hong Kong Flight companies to enter the forex market as a low-cost carrier, or perhaps commonly known as a budget airline. It will probably be followed by a lot of foreseeable challenges, with the relevant remedial actions.
installment payments on your Current Marketing Mix
This section will demonstrate the current advertising mix of Hk Airlines.
Hong Kong Airlines is known as a full assistance carrier which provides both scheduled regional flights and cargo services within the Asia-pacific Area.
The flight for Hk Airlines is relatively lower than those of its competitors such as Cathay Pacific and Dragonair.
Hong Kong Airlines can be described as Hong Kong-based airline with its main hub and corporate head office at the Hk International Airport.
It uses the bauhinia flower, the emblem of Hong Kong, as its logo.
Hong Kong Airlines emphasizes that their staff are young and energetic. It is expected that the size of employees will reach 2,600 in the near future.
As of February 2013, Hong Kong Airlines’ fleet consists of 25 aircrafts with an average age of 3.9 years. This is relatively new when comparing with other airlines.
Hong Kong Airlines adopts both direct and indirect process ” direct online sales via its corporate website and indirect sales via travel agencies.
Currently Hong Kong Airlines promotes mainly via advertising, incentives, customer relationship management and public relations.
Hong Kong Airlines does both hard and soft selling through digital platforms, including its corporate website, Facebook, Weibo and Mobile Apps. Positioning as a young and enthusiastic airline, Hong Kong Airlines has invested a considerable amount on online channels in order to reach its potential customers. Besides, Hong Kong Airlines has utilized television commercials, printed advertisements and advertorials in magazines.
Hong Kong Airlines collaborates with local travel agencies, such as China Travel Service (Hong Kong) Limited. The travel agencies bundle air tickets with hotel accommodation and offer seasonal packages with appealing discounts.
Customer Relationship Management
Hong Kong Airlines has a customer loyalty programme ” the Fortune Wing Club. The membership benefits include air award redemption, priority check-in and extra baggage allowance to its frequent flyers.
Hong Kong Airlines highly involves in charity projects and sponsorship events. For example, it has launched the fund raising programme, Fly & Care, which aims to subsidy athletes for preparing the 2016 Brazil Paralympic Games. It has also received various service awards such as the Capital Weekly Service Awards in 2012.
3. Current Marketing Strategy
The majority of Hong Kong Airlines’ passengers are middle-aged males, with annual income below RMB150,000. They are generally value-conscious customers who are looking for reasonable service level with a relatively low airfare.
Figure 3.1 summarizes some features of Hong Kong Airlines’ passengers.
Geographic Segment| 84% from Asia-pacific region, with Hong Kong constituting 36%.| Demographic Segment| Gender * Male >70% 5. Female < 30%Age * Below 30: 28% * 31 " 50: 60%Annual Income Level (in RMB) * Below 60k: 12% * >60k-100K: 23.3% * >100k ” 150k: 31.5% * >150k ” 200k : 9.4% * >200k ” 400k: 8.9% * >400k: 14. 9%| Travel Purpose| * Business travel: 71% * Vacation/others: 29%| Number 3. 1Segmentation of Hong Kong Airlines’ Passenger
Competitors of Hong Kong Airlines
Low support quality
High services quality
Figure 3. a couple of Perceptual Map of Opponents
The vertical and side to side axes of Figure three or more. 2 symbolize price and service level respectively. Hk Airlines can be found at the bottom correct corner as it provides affordable service level with competitive price.
Dragonair and Gambling Airways both operate on identical routings while Hong Kong Airlines. With Dragonair positioning as a premium company while Tiger Airways being a low-cost jar, they are chosen for a more in depth competitor evaluation.
Dragonair can be an international air travel based in Hk, which is a wholly owned supplementary of the flagship carrier of Hong Kong ” Cathay Pacific. It aims to offer clients enjoyable and comfortable flying experience via its full range of providers and top quality cabin items.
Its consumers’ demographic account is very close to that of Hk Airlines: 85% of the passengers live in Asia-pacific and 30% of them live in Hong Kong; 66% are men and their average age is definitely 41-year-old; plus the average personal monthly income is around USD5, 000. They are service-sensitive and fewer price-conscious. More than half of the individuals are frequent travelers who soar for more than six times each year.
Tiger Air passage
Gambling Airways is actually a low-cost company based in Singapore. Low-cost company refers to aircarrier that provides limited scope of service with low airfares. The airfare is meant intended for the travel service simply and customers have to pay extra for suitcase allowance, meals and drinks etc, if perhaps required. For example , Tiger Air passage offers a buy-on-board system, Tiger Attacks, for customers to purchase food and beverage.
Tiger Airways runs between Singapore and some local destinations in Southeast Asia, Australia, Cina and India. Their people are price-conscious and less service-sensitive.
4. SWOT Analysis
Hk Airlines can also enjoy strong financial support off their parent business, Hainan Flight, which is the biggest privately owned air transfer company in China.
Within a relatively small-scale, Hong Kong Air carriers can be versatile and alert to the market adjustments.
Its youthful fleet involves both short / moderate haul aircrafts (A320) and long haul aircrafts (A330-200 & A330-300), which can support routings between Hong Kong and Asia-pacific ports.
Physique 4. 1A330-200’s Coverage (from Hong Kong)
Figure 5. 2A330-300’s Protection (from Hong Kong)
Hong Kong Airlines contains a weak financial management. The Hong Kong Aircraft Engineering Organization Limited provides stopped providing services to Hong Kong Air carriers due to its incapability to negotiating the expenses. This pushes Hong Kong Airlines to turn to one other aircraft protection service provider ” China Plane Services Limited.
Hong Kong Airlines is also poor in detailed management. The Hong Kong Detrimental Aviation Section has freezing the fast expansion plans of Hk Airlines since August 2012 due to protection concerns, and advised that to combine the existing operations with current fleet size.
With a comparatively small scale of operations, Hong Kong Airlines provides a rather poor bargaining electricity with its suppliers of aircrafts, fuel, and aircraft protection services.
The tourism sector in Asia-pacific region is usually expected to expand due to the fast economic growth, and the rendering of the intra-regional policies in tourism expansion. Currently the intra-regional traffic comprises around 78% of Asian tourism, with budget air carriers account for twenty four. 9% of Asia’s total passenger visitors.
The Hong Kong Tourism Panel will make investments around HKD30 million in opening up fresh visitor resources in five new market segments ” India, the Middle East, Russia, Vietnam and the Netherlands.
These innovations in travel and leisure will definitely boost the demand for air travel.
There are eager competitions in the aviation market, involving the two market leaders and low-cost carriers.
One of the main operation costs for an airline is the fuel cost, which has a wonderful impact on an airline’s profitability. If the crude oil prices return to the peak of USD70-odd or more, some modest airlines, just like Hong Kong Airlines, may be not able to survive.
5. Expansion to India
This section comprises a great analysis of the India market, a marketing policy for Hong Kong Flight companies to expand to India and some not far off challenges. Industry Analysis
To grow the business of Hong Kong Flight companies, entering the India market as a cheap carrier is a considerable choice based on the factors under:
Increase in American indian outbound travel
The amount of Indian telephone travel has become increased by 5. 5 million in 2003 to 12. a few million this year. The World Tourism Organization forecasts that India will be the cause of 50 million outbound travelers by 2020.
Figure five. 1Outbound Tourist Numbers of India
Depreciation of Indian rupee
The Indian rupee has been depreciating and low-cost air entry pass are becoming more preferable pertaining to the value-conscious Indian vacationers.
Increase in the popularity of cheap carriers
The demand for less air seat tickets has made cheap carriers more popular in India. In 2012, 37% of the Indian leisure travelers travel offshore via spending budget airlines.
No low-cost companies available among Hong Kong and India
Despite the large coverage numerous Asia-pacific areas by existing low-cost companies, currently you will discover no immediate flights between Hong Kong and India managed by any kind of low-cost service providers.
Change in Of india aviation plan
In September 2012, the Of india government has eased the restriction simply by allowing foreign direct expenditure up to 49% in private Indian air carriers.
2013-2014 Function Plan of Hong Kong Travel and leisure Board (HKTB)
To spread out up fresh visitor options for Hong Kong, the HKTB has been definitely developing new markets, which include India. The proposed marketing budget for India in 2013-2014 will be HKD13. 4 , 000, 000.
The above factors have illustrated a growing market for cheap carriers in India, which is not yet completely accommodated by simply existing flight companies. Together with the open-up policy of Indian govt and the advertising plan of HKTB, it is a favorable chance for Hong Kong Airlines to expand its operation into India as a low-cost carrier.
[Remarks: You will discover rumors that Hong Kong Airlines’ sister air travel, Hong Kong Express, will relaunch itself as a low-cost jar in the near future. Yet , no relevant official story has been created by either the Hainan Group or Hong Kong Express. Regardless, this job aims to offer Hong Kong Flight companies to enter India as cheap carrier; virtually any future development plans of other subsidiaries of the Hainan Group must be investigated independently. ]
International Industry Plan
This plan of action serves to relaunch Hk Airlines like a low-cost transporter in India. It aims to raise open public awareness of you’re able to send new placement in the India market, with the ultimate aim to increase revenue.
This plan can target the potential customers in Mumbai and Delhi, the two cities containing the most outbound travel population in India ” 33% and 26% respectively.
The perfect entry strategy will be cooperating with a neighborhood airline or company in the form of joint venture. It is going to reduce the likelihood of investment, and also serve to comply with the local government’s policy about foreign immediate investment. Nevertheless , Hong Kong Flight companies needs to be very careful in deciding on the best local spouse as most from the local airlines are suffering from severe financial concerns. Therefore , it will be preferable to appear like the capital partnership between Air flow Asia plus the Tata Group in India.
Consideringg the strong cultural distinctions between India and Hong Kong, Hong Kong Air carriers will choose a localized market strategy and be competitive as a market nicher amongst the existing opponents.
The table below summarizes the marketing mix which will Hong Kong Flight companies will undertake to enter the India industry.
Price| * Low|
Product /Service| * Limited |
Place| 2. Local again office * Online channels|
People| * Regional employees|
Promotion| Direct Advertising * Digital advertising: website, Facebook . com * Online marketing 2. Outdoor offers * Membership rights programmeIndirect Advertising and marketing * Co-operation with other agencies / firms: Hong Kong Tourism Board, India’s Ministry of Tourism & travel agents * Product location in films| Figure your five. 2Summary of Marketing Mix pertaining to Hong Kong Airlines’ expansion towards the India Industry
As a low-cost carrier, the airfare will probably be much lower than its opponents.
The range of assistance will be limited ” the airfare will simply include the
transport support. Customers will be required to pay out extra intended for the others, including baggage managing, in-flight catering and entertainment.
Hong Kong Flight companies will create local workplace in India, mainly for back-end operation however, not customer-facing. Instead, it will make use of the online stations to procedure the customers because there is a continuous increase in the number of internet users in India ” by 5. your five million in 2000 to 100 mil in 2010. Persons
In terms of persons, the company will certainly recruit regional employees to address the ethnical differences between Hong Kong and India.
The promotions may be classified since Direct Promoting and Indirect Advertising; the previous refers to advertisements that reach the public immediately, while the last mentioned includes co-operation with other agencies and corporations.
For immediate advertising, Hk Airlines will utilize the digital marketing programs by establishing website and Facebook page specifically for India; besides using a fast developing amount of internet users, India also has the world’s third largest Facebook or myspace community. Fun marketing actions, such as online games and competitions, can be presented through these kinds of channels.
The corporation will carry out outdoor special offers, like billboards, to respond towards the cultural characteristics of Indians ” collectivism and the preference of public space.
Hk Airlines will expand its membership programme, Bauhinia Mls, to India to retain customers and build a client database intended for future marketing promotions. Customers will be offered purchase discount upon accumulating certain amount of credits, through engaged in the campaign events, including referral. It can be different from different customer dedication programmes, which will customers can redeem free of charge flights or lifestyle prizes with
flying miles. Since Hong Kong Airlines will certainly operate being a low-cost company offering low airfare, it could be difficult intended for the company to provide excessive complimentary awards to customers.
As for indirect advertising, Hong Kong Flight companies can cooperate with the Hong Kong Tourism Plank and the India’s Ministry of Tourism to promote Hong Kong Travel and leisure to the Indians, and the other way round. This match with the current strategy of HKTB to explore new visitor sources in new marketplaces, including India.
The company will even cooperate with local travel agents to provide low-cost travel deals because 60% of Indians used to buy air seats through travel companies. Also, the depreciation of rupee induces demand for affordable travel deals.
Since Bollywood, the Hindi-language film market, is one of the greatest film merchandise centres worldwide, Hong Kong Airlines will cooperate with the community film production companies intended for product placement.
The cultural dissimilarities between India and Hong Kong may obstruct the understanding and successful communication with the potential customers. Recruitment of local employees and learning from the local partner(s) can help ease the cultural influence.
Another challenge will be the substantial burden upon operating expense due to the excessive taxation in luxury in India. Travel is still getting regarded as a luxury in India and the taxes on fly fuel can be 70% more than that in other countries. So Hong Kong Flight companies needs to make sure a high voyager load factor on each trip and to totally control additional costs to be able to leverage the overall operating costs.
Hong Kong Flight companies is currently a full service transporter in Hong Kong targeting
In order to grow its organization, entering the India industry would be a good option for the business because of the various opportunities with the India marketplace ” the increase in India outbound travel, depreciation of Indian rupee, no existing direct competitors, change in Of india aviation coverage, and forthcoming work strategy of Hk Tourism Table.
In view of the marketplace situation, the marketing strategy of Hong Kong Airlines can relaunch the company as a cheap carrier in India, aimed towards the two metropolitan areas with the majority of outbound travelling population, by means of joint venture. It aims to increase public knowing of the company’s fresh positioning in the India market, with the supreme goal to enhance revenue.
The marketing mix will be ” offering low airfare; providing limited scope of services; setting up regional back business office and utilizing online stations; as well as enrolling local employees. A wide range of indirect and direct advertising will be adopted, which include online marketing, outdoor promotion, regular membership programmes, co-operation with other companies and companies, and merchandise placement in films.
As if other organization expansion programs, Hong Kong Airlines will encounter some challenges when coming into the India market. The main one is the cultural big difference between Hong Kong and India, which can be reduced by prospecting local staff and learning from the local partner. Another one is the high tax burden caused by the American indian government, which usually would be remedied by leveraging the overall working cost.
1 . Hong Kong Air carriers official web page
2 . Fortune Wings Team official web page
3. Hong Kong Airlines’ Travel & Attention programme http://www.youtube.com/watch?v=nx99gmWh8hI
4. Hk Airlines advertising and marketing media launch, NINGBO aircarrier media & Co. Limited, 2011 http://wenku.baidu.com/view/38e6dd2f453610661ed9f4c3.html
5. Dragonair official internet site
6. Introduction of Dragonair, SUMMIT PRESS
7. Tiger Airways, Wikipedia
8. Hk Airlines, Wikipedia
9. Hong Kong Airlines, Asia’s fastest developing carrier, looks to become reckoning force in the area, CAPA, 12-15 November 2012
10. Launching low cost carriers in emerging Asia: Is now enough time?, Travel Daily Asia, 2012
11. Indian Telephone Travel, India International Travel and leisure Mart
12. Legislative Council -panel on Monetary Development, Hk Tourism Plank, Work Arrange for 2013-2014 http://www.legco.gov.hk/yr12-13/english/panels/edev/papers/edev0225cb1-565-3-e.pdf
13. The introduction of the low expense airline industry in Asia
18. Rupee comes most in 4 several weeks on global dollar strength, Reuters, The days of India, May 12, 2013
15. Outbound tourism industry from India grows: Several emerging tendencies, Malini Goyal, ET Bureau, The Economic Times, Apr 14, 2013
of sixteen. India ” Outbound, LiveBean
17. India internet utilization stats and telecommunications marketplace report, net world stats http://www.internetworldstats.com/asia/in.htm
18. Understanding Progress Markets: China & India, Nielsen http://www.tnhindia.in/statistics_kit/statistics.pdf
19. Hong Kong Airlines’ Bauhinia Miles Program http://www.hongkongairlines.com/en_HK/buddyclub/about
20. Foreign flight companies see further than clouds in India
[ 1 ]. Hong Kong Airlines official website
[ 2 ]. Fortune Wings Club standard website http://ffp.hnair.com/FFPCluben/ [ 3 ]. Hong Kong Airlines’ Fly & Care plan http://www.youtube.com/watch?v=nx99gmWh8hI [ four ]. Hong Kong Airlines’ standard website http://www.hongkongairlines.com/en_HK/aboutus/awards [ 5 ]. Hong Kong Airlines’ advertising press introduction, NINGBO airline media&CO. LTD, 2011 http://wenku.baidu.com/view/38e6dd2f453610661ed9f4c3.html
[ 6 ]. Dragonair official internet site http://www.dragonair.com/da/en_INTL/homepage [ 7 ]. Dragonair introduction, SUMMIT MEDIA
[ 8 ]. Gambling Airways, Wikipedia http://en.wikipedia.org/wiki/Tiger_Airways [ on the lookout for ]. Hk Airlines, Wikipedia http://en.wikipedia.org/wiki/Hong_Kong_Airlines [ 10 ]. Hong Kong Airlines, Asia’s fastest developing carrier, wants become reckoning force in the region, CAPA, 15 November 2012 http://centreforaviation.com/analysis/hong-kong-airlines-asias-fastest-growing-carrier-looks-to-become-reckoning-force-in-the-region-86233 [ 14 ]. Hk Airlines, Asia’s fastest growing carrier, looks to become reckoning force in the area, CAPA, 15 November 2012 http://centreforaviation.com/analysis/hong-kong-airlines-asias-fastest-growing-carrier-looks-to-become-reckoning-force-in-the-region-86233 [ doze ]. Starting low cost companies in appearing Asia: Is currently the time?, Travel Daily Asia, 2012 http://www.traveldailymedia.com/asia/launching-low-cost-carriers-in-emerging-asia-is-now-the-time [ 13 ]. Legislative Authorities Panel in Economic Advancement, Hong Kong Tourism Board, Operate Plan for 2013-2014 [ 14 ]. The development of the low cost aircarrier industry in Asia http://www.ukessays.com/essays/tourism/low-cost-airline-industry-in-asia.php#ixzz2Qddj87mW [ 15 ]. Rupee falls most in 4 months on global dollar power