Marketing

Report on

A Case Study On EMBRAER executive jets

Bangladesh

Principles of Marketing

Page | 2

Date of submission: 20 November 2012

JAGANNATH UNIVERSITY

Department of Accounting and Information systems

Faculty of Business Studies

Date of Submission : 23 September, 2013

Group Phoenix Section : A

Session : 2010-2011

BBA 6th

batch

Department of AIS

Jagannath University

Prepared For

Mr. Md. Babar Assistant Professor

Department of Accounting & Information Systems


Prepared By


A Case Study On (Market Segmentation, Target Marketing & Positioning)


Page | 3

Details

Group Leader : Dipongkor Paul

Serial Name of the Members ID No.

1. Dipongkor Paul 114411

2. Imran Hossain 114489

3. Md. Sumon Ahmed 114493

4. Dibosh Sarkar 114517

5. Tahmina Afrose 114521

6. Sujon Nag 114533

7. Farhana Ahmed 114537

8. Koushik Haldar 114587

Group Name: Phoenix


Page | 4

23 September, 2013

MD. BABAR

Course Instructor


Department of AIS



Subject: Letter regarding submission of Report on “Market Segmentation, Targeting &

Positioning Strategy”

Dear Sir,

We feel immense pleasure in presenting to your good self, the term report on “MARKET

SEGMENTATION, TARGETING & POSITIONING STRATEGY” as part of our course

requirement. We found this report to be truly challenging in many aspects, indeed very

interesting in relation to the various interpretational and engrossing exercises. In this report we

have applied our contextual knowledge in real life scenarios. In making the study, we had to

take help from the various sources of internet and class lectures of our course teacher. We are

grateful to him for extending generous help.

We acknowledge the contributions to our course teacher for the guidance. We have tried to use

our academic knowledge on real life case.

We are pleased to be granted this vital opportunity and grateful for your versatile assistance. We

hope that our work will please you.

Yours Sincerely,

Dipongkor Paul

Roll: 114411

On behalf of the Group “Phoenix”

Section- A

Department of AIS



Letter of Transmittal


Page | 5

Conducting an analysis on “Embraer Executive Jets” is a rewarding task that requires both

mental stamina and attention to detail. The varied nature of the matters dealt with has entitled

references too many sources, starting from books to class lecture and to all of these we gladly

acknowledge our ineptness for the ideas and information they have provided.

Now, we are glad to thank our honorable course teacher Md. Babar, whose vast support,

advice, encouragement and guidance ensured that this analysis saw the light of day. Whenever

we face any kind of obstacle, we went towards him and he never made us upset. We are really

thankful to him for his humble attitude toward us.

Last but not the least, our group members who‟s devoted afford make it easy for all of us to

accomplish the report within the time at an efficient manner. If they were not being so loyal to

their work it would not be possible to systematize a high-quality project like that.

Acknowledgement


Page | 6

The global business jet industry consists of six principal producers that accounted for nearly all

production worldwide during 2006–11. Deliveries of business jets reached an all-time high in

days. Beside this, In Bangladesh, day by day, the necessity of the jet craft is growing day by

day. Nonetheless, the share of global production and market held by Embraer increasing day by

day during the period under examination as the economic downturn cut the profitability of

small and medium-sized enterprises, which are leading sealing of business jet aircraft, and

created an ongoing investment environment. So that it is clearly mention that Bangladesh will

be its potential market.

Executive Summary


Page | 7

Title Page No.

Letter of Transmittal 4

Acknowledgement 5

Executive Summary 6

Chapter One: Introduction

1.01 Background of the study; 10

1.02 Object of the Study; 10

1.03 Methodology of the study; 11

1.04 Scope of the study; 13

1.05 Limitation of the study; 13

1.06 Literature Review; 14

Chapter Two: Company Profile

2.01 Introduction; 17

2.02 Tradition & background; 18

2.03 Evolution; 19

2.04 Mission of the company; 20

2.05 Vision of the company ; 20

2.06 Products of the company; 21

Chapter Three: Analysis of marketing strategy

3.01 Market Overview; 27

3.02 Market Segments; 28

3.03 Target Markets; 29

3.04 Positioning Strategy; 30

Chapter Four: Findings, Recommendations & Conclusion

4.01 Findings; 35

4.02 Recommendations; 37

4.03 Conclusion; 37

Appendix 38

Reference 43

Table of Contents


Page | 8

Chapter One

Introduction


Page | 9

Market segmentation is a marketing strategy that involves dividing a broad target market into

subsets of consumers, who have common needs, and then designing and implementing

strategies to target their needs and desires using media channels and other touch-points that best

allow to reach them.

Market segments allow companies to create product differentiation strategies to target them.

A target market is a group of customers that the business has decided to aim its marketing

efforts and ultimately its merchandise towards. A well-defined target market is the first element

to a marketing strategy. The marketing mix variables of product, place (distribution), promotion

and price are the four elements of a marketing mix strategy that determine the success of a

product in the marketplace

Market positioning means identifying and attempting to occupy a market niche for a brand,

product or service utilizing traditional marketing placement strategies (i.e. price, promotion,

distribution, packaging, and competition).

Positioning is also defined as the way by which the marketers attempt to create a distinct

impression in the customer's mind.

This Paper consists of five main sections. Section one consists of Introduction of the base topic

on which the paper has been made; Section two consists of Company Profile; Section three

consists of Analysis and findings of the case study; Section four consists of


Page | 10

1.01 Background of the study

As we know this is a research project, we focused on market segmentation, targeting &

positioning. Now the question is how? We will

focus on the research method. In contrast we will

try to adapt any type of method to get into segment

of market, target consumer & product positioning

in the consumers mind because without satisfying

the consumers no company can survive. We have

chosen Embraer as our preferred Company. Like

how they segment their markets, target customers & set position and put smile on the faces of

audience and consumers. This includes how they identify attractive market segments and

choose the target marketing strategy and also how they position their products for maximum

competitive advantage in the market place.

1.02 Object of the study

As we are working on market segmentation, target marketing and positioning research project,

our primary objective is to get in the mind of marketers.

We have find out how they are getting something and how

they want to get something. Marketers always want to put

a smile on their consumer face. They always care about

what their consumer think, how they think. We have

chosen an airlines company whose main objective is to

manufacture jets and sell or rent them. So we have to

research about their marketing strategy of segmentation,

targeting and positioning.


Page | 11

1.03 Methodology of the Study

The primary data of this research paper has been collected from the official website of the

Embraer Company. The web address has been given in

the reference at the end of the Chapter 5. The secondary

data has been collected from the websites of the clients of

the said company who resides in Bangladesh. Some data

has also been collected from different websites that

relates to the topic of the case study. A set of survey

questionnaire was created for a little survey of data

collection. Some examples are:

How many segmentation of market they have for their product?

How they target market?

What kind of customers they target?

1) How many segmentation of market they have for their product?

37%

9%18%

9%

27%

Market Sementation

Geogrphic

Psychographic

Demographic

Socuo-cultural

Behavioral


Page | 12

2) How they target market?

3) What kind of customers they target?

25%

75%

Target markets

Differentiated

Concentrated

38%

23%

8%

31%

Types of customers

Airlines Companies

Multinational Companies

Multimillioniars

Rentals


Page | 13

1.04 Scope of the Study

Thirteen questions were randomly asked to general people two of which were broad. Those

broad questions were asked only to know people‟s preferences –

What people like and what not. There were total respondents.

They were asked about what they like, why they like, how they

like and other important things to understand their behavior

towards different types of products & services. After knowing

about their behavior and preferences it would be a lot easier to

make good, creative and effective services. We got the information from the customers whom

are habituated to get service from Embraer that most of them like to travel in second class. But

the VIP class is for the elite persons. If the persons feel comfort after getting the service from

Embraer they will tell about it to the nearest people. So it shows that good service will make

people have the service it again and again which may create good word of mouth. Mostly old

aged people care about comfortable travelling service, because they care about health. Almost

all aged people like this type of comfortable service. But slightly young boys and girls like it

more because they care about new technology and are trendy.

1.05 Limitations of the Study

We are using very unfamiliar method thus it has some limitations. It might bring some negative

results. People have different taste so people should think rationally.

Research work is very much comprehensive. It is an accumulation of

both information and creative thinking which requires a great effort

and a long sound planning. Because of some unavoidable reasons; we,

sometime, faced problem in some portion of the report. But we tried

our level best to overcome this.

On top of that our topic was about segmentation, targeting & positioning strategy of a company

which is a very comprehensive topic in today‟s world. But studying this topic we found some

new concept as well. In this respect there may be some lacking in the report because of our

knowledge limitation. There may be some errors and lacking but all these errors are totally

unintentional. At the end we are very happy to present this report to the readers and its success

will depend on the positive response of the readers.


Page | 14

1.06 Literature Review

Hudson (2008) summarized the criteria that used usually for segmenting hospitality and

tourism markets as: demographic segmentation; psychographic

segmentation; geographic segmentation; benefit segmentation;

behavior segmentation.

Mintel (2002) went further to add another form of

segmentation, i.e. criterion segmentation, and identified two

main segments in the „e-travel market segmentation of

customers‟ - lookers and bookers.

McCabe (2009) was more focused and pointed to three bases

for marketing segmentation which are: Demographic,

Behavioral and Psychographic.

The various segmentation criteria reflected the differences between customers and the need to

select the right target market.

Armstrong and Kotler (2000) asserted the importance of targeting the right market to fit an

organization‟s capabilities.

Hudson (2008-95) strongly supported their point and stated:

“There is no area in the market plan that surpasses the selection of target markets in

importance”.

Armstrong and Kotler (2000) pointed to the impossibility of an organization targeting a large

market if it suffers from lack of staff abilities to enable the company to serve this large

population of customers. There are various assessment criteria which result in successfully

targeting a market.

McCabe (2009) stated five characteristics which help marketers to designate the targeted

market: attainable; measurable; large enough; defendable; sustainable.

Baineset al. (2008) pointed to another approach to select the appropriate target market which

builds on assessing the attractiveness of each of several factors, such as: market growth;

segment profitability; segment size; competitive intensity within the segment; the cyclical

nature of the industry (i.e. the seasonality of the industry).

Hudson (2008) highlighted different key criteria for the target market: well defined; accessible;

identifiable; homogeneous; networking; the same needs and reasons for purchasing the service


Page | 15

or product. Thus, the previous criteria for the target market can be summarized as: identifiable;

measurable; large enough; accessible; attainable; sustainable; defendable; homogeneous

(common criteria including common needs to purchase the product); networking; profitable.

The decision for adopting the previous characteristics relied on the employed targeting approach

in the organization.

Armstrong and Kotler (2000) and Baineset al. (2008) stated three main targeting approaches:

undifferentiated marketing (one marketing mix for the whole market); differentiated marketing

(various marketing mixes for various market segments); concentrated marketing (one marketing

mix for various targeted segments).

The appropriateness of each of these approaches depends on the organization‟s size, financial

resources and type of business.

Positioning is the third phase of the STP process.

Baineset al. (2008) & McCabe (2009) clarified how it should work. In this phase, the product

will be adjusted according to the results of the marketing research results, followed by creating

an image fitting the targeted segments‟ values.

Furthermore, Hudson (2008) pointed to using this phase in achieving sustainable advantage

over competitors.

McCabe (2009) and Hudson’s (2008) understanding of positioning was clear in the Phoenix-

based case in China which changed its original plan of building four and five-star hotels to

building 100 three-star hotels.

There are different ways to achieve a good position in the market.

Tapp (2005) and Combe (2006) pointed to differentiation.

Additionally, Baineset al. (2008) named two ways to position the brand: „functionally‟ and

„expressively‟ (symbolically). By „functionally‟ Baineset al. (2008) emphasized the features

and benefits. „Expressively‟ reflected various elements: ego, social and the hedonic satisfaction.

Hudson (2008) was more specific and mentioned three steps to achieve a good position in the

market: product differentiation prioritizing and selecting the competitive advantage

communicating and delivering the position.

Armstrong and Kotler (2000) reorder these steps in strongly recommending identifying the

right competitive advantage to differentiate the product.

In brief, a complete STP process should help marketers to achieve better position in the market

and attain the right target market


Page | 16

Chapter Two

Company Profile


Page | 17

2.01 Introduction

Today, Embraer is the world‟s fourth-largest commercial aircraft manufacturer. Its ERJ 135/145

airframe served as the foundation for the company‟s first business jet, the Legacy 600, which

was introduced in 1999. In the past decade, Embraer has developed the Phenom 100 and 300

small-cabin jets, the Legacy 450 and 500 midsize jets and the Lineage 1000 bizliner. The

longer-range Legacy 650 was certified last year.

Embraer stands on the proud shoulders of Brazilian aviation pioneers whose work dates back to

the early 18th Century and the dawn of powered flight. The father of Brazilian aviation, Alberto

Santos-Dumont, is heralded as the first person to make a controlled flight in an engine-powered

air vehicle, the Hydrogen Dirigible No. 1, in 1898. He later won the 1901 Deutsch de la

Meurthe prize for piloting a dirigible around the Eiffel Tower for half an hour. In 1906, three

years after the Wright brothers successfully flew in the United States; Santos-Dumont made his

first public flight in a heavier-than-air aircraft known as the 14-bis, in Champs de Bagatelle, on

the outskirts of Paris.

Embraer‟s aviation roots are strong and deep. Now the world‟s third largest aircraft

manufacturer and a leading force in aerospace technology and innovation, Embraer has

delivered more than 5,000 executive, commercial and defense aircraft in its 40+ years which are

now operating in over 90 countries.


Page | 18

2.02 Tradition & background

ONE COULD SAY IT’S THE HAT THAT LAUNCHED A THOUSAND

SHIPS

One hundred years ago, a young Brazilian aviator wowed the people of Paris with the successful

flight of his monoplane design. This man was Alberto Santos-Dumont, and the signature

Panama hat he wore made him stand

out in a crowd.

Inspired by Santos-Dumont, Embraer

is one of the world‟s leading aircraft

manufacturers, a position achieved

through the commitment to full

customer satisfaction. Throughout its

40-year history, Embraer has been

involved in all aspects of aviation. In

Addition to design, development,

manufacturing, sales and technical support for commercial, agricultural and executive aviation,

Embraer also offers integrated solutions for defense and security.

It has produced more than 5,000 aircraft that operate in 80 countries on five continents, and it is

the market leader for commercial jets with up to 120 seats. Embraer manufactures some of the

best executive jets in operation, and is now entering a new level in the defense segment.


Page | 19

2.03 Evolution

Created on August 19, 1969, Embraer - Empresa Brasileira de Aeronáutica, was a mixed capital

company under government control. With the

support of the Brazilian Government, the Company

would transform science and technology into

engineering and industrial capability. In addition to

starting the production of the Bandeirante, Embraer

was commissioned by the Brazilian Government to

manufacture the EMB 326 Xavante, an advanced

trainer and ground attack jet, under license of

Italian company Aermacchi. Other developments

that marked the beginning of Embraer‟s activities

were the EMB 400 Urupema high-performance

glider and the EMB 200 Ipanema agricultural

airplane.

By the end of the 70‟s, the development of new

products, such as the EMB 312 Tucano and the EMB 120 Brasilia, followed by the AMX

program in cooperation with the company‟s Aeritalia (now Alenia) and Aermacchi, allowed

Embraer to reach a new technological and industrial level.

The entry into service of the new EMBRAER 170/190 family of commercial aviation in 2004,

the confirmation of Embraer‟s definitive presence in the executive aviation market with the

launch of new products, as well as the expansion of its operations into the aviation services

market, established solid foundations for the future development of the Company.


Page | 20

2.04 Mission

Embraer‟s business is to generate value for its shareholders by fully satisfying its customers in

the global aviation market. By “generate value”, we mean

maximizing the Company‟s value and ensuring its perpetuity,

acting with integrity and social environmental awareness.

The Company concentrates on three business segments and

markets: Commercial Aviation, Executive Aviation, and

Defense Systems.

The values that mold the attitudes and unite actions to ensure

the Company‟s perpetuity are:

- Our people;

- Our customers;

- Company excellence;

- Boldness and innovation;

- Global presence;

- Sustainable future

2.05 Vision

Embraer invests in its global presence. To achieve this goal, Embraer brings together the best

technological and financial conditions, in addition to all

production, sales, and service resources. The company has

operating units in several places around the world. Embraer

is a multinational corporation headquartered in Brazil with

facilities located in the United States, France, China,

Singapore and Portugal. Our global presence includes

manufacturing, service centers, customer support, parts distribution centers and sales offices.

Embraer Executive Jets is headquarted in Melbourne, FL, USA along with a Phenom

assembly line, our global Customer Center and the future home of Embraer Engineering and

Technology Center USA. Legacy, Lineage, and additional Phenom manufacturing, along with

aircraft design and development and Customer Support Contact Center, are located at the

corporate headquarters in São José dos Campos and other locations in Brazil.


Page | 21

2.06 Products of the Company

Here are some products of the Company-

Embraer Executive Jets: Embraer Phenom 100

General characteristics

Capacity: 4 passengers standard (6 max)

Payload: 595 kg (1,312 lb)

Length: 12.80 m (42 ft 1 in)

Wingspan: 12.30 m (40 ft 4 in)

Height: 4.4 m (14 ft 3 in)

Useful load: 1,535 kg (3,384 lb)

Max. takeoff weight: 4,750 kg (10,472 lb)

Power plant: 2 × Pratt & Whitney Canada PW617F-E turbofans, 7.2 kN (1,695 lbf) each

Performance

Maximum speed: 722 km/h,449 mp/h (390 ktas)

Range: 2,182 km

Service ceiling: 12,500 m (41,000 ft)


Page | 22

Embraer Executive Jets: Embraer Phenom 300


Capacity: 6 passengers (standard configuration) maximum of 9 incl. 1 in cockpit

Length: 15.9 m

Wingspan: 16.2 m

Height: 5 m

Max takeoff weight: 7,951 kg

Power plant: 2 × Pratt & Whitney Canada PW535E turbofans, 14.2 kN (3,200 lbf) thrust

each

Performance

Maximum speed: 834 km/h

Range: 3,650 km

Service ceiling: 13,716 m


Page | 23

Embraer Executive Jets: Embraer Legacy 450


Capacity: 7 to 10 passengers

Length: 19.15 m

Wingspan: 20.25 m

Height: 6.74 m

Max takeoff weight: 17,690.40 kg

Fuel capacity: 7,949.34 l

Power plant: 2 × Honeywell HTF7500E

Performance

Maximum speed: Mach 0.83

Range: 4,260 km

Service ceiling: 14,000 m

Minimum Take Off Distance: 1,524.00 m


Page | 24



Capacity: up to 12 passengers, 8 standard

Length: 20.52 m

Wingspan: 20.24 m

Height: 6.73 m

Power plant: 2 × Honeywell HTF7500E Turbofan engines, 29.1 kN (6,500 lbf) thrust

each

Performance

Range: 5,556 km at Mach 0.78


Rate of climb: 19.1 m/s


Page | 25



Capacity: 13 passengers

Length: 26.33 m (86 ft 5 in)

Wingspan: 21.17 m (68 ft 11 in)

Height: 6.76 m (22 ft 2 in)

Empty weight: 16,000 kg (30,000 lb)

Max. takeoff weight: 22,500 kg (49,604 lb)

Power plant: 2 × Rolls-Royce AE 3007/A1P turbofans, 39,2 kN (8,810 lbs) each

Performance

Maximum speed: 834 km/h (450 kt, 518 mph)

Range: 6,060 km (3,250 nm, 3,740 mi)



Page | 26

Chapter Three

Analysis of Marketing

Strategy


Page | 27

3.01 Market Overview

Now-a-days airlines business is very popular. It considered as a well established sector in the

North American market, a growing sector in the European

market and a developing but promising sector in Asian

market. We believe this could present an opportunity for

long-term growth and a potential for increased profitability

in Bangladesh.

It is one of the most important parts of modern business for

marketing research and analysis. If anyone goes to the whole potential market, it will bring only

disaster for the company. We have to select a target segment from the potential market and

communicate with them in order to inform them about the service of any particular company.

The services Embraer offers are unique and exclusive. So they have to identify the consumer

segment that is willing to take these unique and exclusive services and is affordable of

experience them.


Page | 28

3.02 Market Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into

subsets of consumers who have common needs,

and then designing and implementing strategies to

target their needs and desires using media

channels and other touch-points that best allow to

reach them

Geographic Segmentation

Embraer is a Brazilian aircraft manufacturing

company. They import their aircrafts directly in Bangladesh and provide those executive jets to

multi millionaire consumer as well as different airlines company or group of industries like

Square, Uniliver etc.

Demographic Segmentation

In demographic segmentation, they consider those air lines companies which are new

entrants as well as well-known in the market. As people from all generation now-a-days are

very concerned about the recreation, they usually go to foreign country for entertainment

through different aircrafts. So, multi millionaire consumer as well as different airlines company

or groups of industries are their target customer.

Socio-Cultural Segmentation

Again they consider one variable, social class. As our aircraft are very expensive

because they are luxurious jet so they segment the market for that consumers whose are upper

class considering the affordability and consciousness.

Psychographic Segmentation

Since the air transport system is the most expensive way of transportation not everyone

is able to afford this service. Therefore, they target multi millionaire who want to avail

luxurious service.


Page | 29

Behavioral Segmentation

There are three variables for “Embraer” like benefits, readiness and attitude toward

service. “Embraer” basically segmented for airlines as well as group of industries; as

consumers always try to find out the benefits in a service. As “Embraer” provides luxurious

quality in relatively low price, it satisfies them better. By the readiness, they segmented as

unaware (airlines who are not aware of Embraer aircraft services) and interested (airlines who

are interested of Embraer aircraft services). By the attitude toward services, they segmented as

enthusiastic (highly satisfied), positive (satisfied or not dissatisfied) and rational (logical airlines

who have both satisfaction and dissatisfaction bout the service).

3.03 Target Markets

EMBRAER Executive Jets Bangladesh use two kinds of strategies for target marketing;

differentiated and concentrated marketing.

Under differentiated marketing they offer two types of

products and services. If they sell 2-3 plane in a year

then they consider themselves successful and it is

possible in our country if the target customers cannot

buy for different reasons then EMBRAER can also

offer them rent service.

Under concentrated marketing, EMBRAER target different types of multinational company,

rich people in Bangladesh and also public air transportation service provider, Bangladesh

Biman.

They usually make a sales team to inform and push the richest people to buy a plane that

is benefited for the person also they can earn huge money from the sector. Sales people always

influence the people and try to analyze every sector how they maintain and earn huge money by

make a presentation slides.


Page | 30

3.04 Positioning Strategy

Embraer Executive Jets are high-end products. Only multimillionaire persons can effort to buy

one of the jets form out product line. Our other

services are exclusive and high-end as well.

Our current marketing strategy is based upon our

assessment of the worldwide commercial airline

market and our assessment of the current and future

needs of our customers. We actively market our

aircraft to airlines and regional affiliates of major

airlines through our regional offices in the United States, Europe and Asia. Our success

depends to a significant extent on our ability to discern our customers‟ needs, including needs

for customer service and product support, and to fill those needs in a timely and efficient

manner while maintaining the high quality of our products. Our market and airline analysts

focus on the long-term trends of the market, competitive analysis, product enhancement

planning and airline analysis. In terms of direct marketing to our customers, we rely heavily on

addressing the media, as well as participating in air shows and other cost-effective events that

enhance customer awareness and brand recognition. We have regional sales offices in Le

Bourget, France, Ft. Lauderdale, Florida, Beijing, China and Singapore. We sell our ERJ 145

regional jet family in the Chinese market exclusively through our joint venture in China, which

has secured 11 orders from Chinese airlines since the beginning of 2004.

Unique selling position

Time is money. Save your time and earn more money. Add value to your life. Take your life

and your business to another level.

Looking to continue to grow our business and to increase our profitability, we intend to

continue to offer our customers cost-effective, high quality, and reliable aircraft and services.

The key elements of our strategy are the following:

Continuing to market commercial aircraft

We are fully committed to continuing to market our ERJ 145 regional jet family and to

aggressively market our mid-capacity aircraft, the EMBRAER 170/190 jet family. As of

March 31, 2009, we had more than 870 units of the ERJ 145 jet in commercial operation. We


Page | 31

are currently evidencing increased demand for the ERJ 145 jet family in the secondary market

due to its reliability and strong operating benefits. We believe that airlines can continue to

benefit from this regional jet family, which we believe has helped our customers over the last

ten years to pursue their goal of achieving profitable operations. We believe a significant market

opportunity exists for the EMBRAER 170/190 jet family with regional airlines that are

expanding their fleet, increasing their penetration into higher density markets and adding longer

routes, as well as with major and low-cost airlines that are right-sizing their fleet in order to

adjust capacity to meet demand in less dense routes. As of March 31, 2009, we were leaders in

the 70-120 seat categories in terms of number of aircraft sold. Additionally, we believe that our

commercial aircraft will provide us with significant opportunities to increase our

competitiveness by offering our customers a full range of jets in the 30-120 seat categories.

Strengthening Position in the Executive Jet Market

We believe that the executive jet market provides us with significant growth opportunities. We

expect to offer products in all categories of the executive jet market, from the entry-level to the

ultra large categories. We have developed the Legacy 600, a super midsize, the Phenom 100, an

entry-level jet, and the Lineage 1000, an ultra large jet, and are developing the Phenom 300, the

Legacy 450 and the Legacy 500, executive jets in the light, mid-light and mid-size categories,

respectively. We have endeavored to understand and respond to market and customer needs,

continually improving the product and customer support for our executive jets.

Continue to Pursue Market Niche Opportunities in the Defense and Govt. Market

We currently offer products for transportation, training, light-attack, intelligence,

surveillance and reconnaissance. Since our products offer multi-mission capabilities at a

competitive price and are designed to be operated in any environment at low operating costs, we

believe our products meet the needs of governments in countering present threats which are a

global concern, such as terrorism, drug dealing and weapon smuggling.

Continuing Focus on Customer Satisfaction and Support

We believe that our focus on customer satisfaction is fundamental to our entrepreneurial

success and our business strategy. Providing high quality customer support is a key element of

our customer focus and is critical to our ability to maintain long-term relationships with our

customers. As the number of our aircraft in operation continues to grow, and our executive

aviation business expands, we have further increased our commitment to providing our


Page | 32

customers with an appropriate level of after-sale support, including technical assistance, pilot

and maintenance training and spare parts, as demonstrated by the expansion of our Nashville,

Tennessee, maintenance, repair and overhaul, or MRO, facility, and the acquisition of OGMA,

an MRO facility in Portugal, which we began operating in March 2005. We intend to continue

to focus on providing our customers with high quality customer support by expanding our

presence worldwide, both through our own operations and agreements with authorized service

centers. In 2007 we created a new business area called Aviation Services. We also started the

construction of a service center at Williams Gateway Airport in Mesa, Arizona.

Continue to motivate our employees and improve our production processes and managerial

practices.

We are constantly seeking to exceed our customers‟ expectations. In order to achieve

that, we must, on a daily basis, continuously try to implement the most efficient production

processes and best managerial practices. Because the success of our products and services are

ultimately a combination of the contribution of our employees and the production processes we

have developed over the years, we recognize that we must continue to motivate our employees

and refine our production processes. To that effect, we have implemented, and intend to further

develop, corporate programs based on a “lean manufacturing” philosophy, such as the Embraer

Entrepreneurial Excellence Program (P3E), that are designed to strengthen our internal culture

of excellence and improve the efficiency of our operations.

Looking for business growth and to increase our profitability, our strategy is to continue to offer

our customers cost-effective, high quality, reliable aircraft and services. The key elements of

our strategy are the following:

Strengthening our Position in the Business Jet Market.

We have developed the Legacy, a line of business jets based on the ERJ 135 regional

jet. Since the launch of the Legacy in 2000 and its entry into service in 2002, we have

endeavored to understand and respond to market and customer needs, continually improving the

product and customer support. The knowledge accrued resulted in significant enhancements

while creating the right conditions for us to identify new opportunities in the business aviation

market. In May 2005, we expanded our product portfolio to complement the Legacy offering

with jets for the very light and light categories. These business jets can provide companies,

including fractional ownership companies, individuals and the emerging business of air taxi


Page | 33

companies a cost-effective and personalized alternative to commercial airline travel.

Increasing Penetration into the Defense Market

We plan to develop and market additional defense products and thereby increase sales in

this segment of our business. We intend to increase our participation in the international

defense market by actively marketing our existing products initially developed for the Brazilian

Air Force, including our EMB 145 Intelligence, Surveillance and Reconnaissance aircraft and

the Super Tucano (ALX).

Reviewing Strategic Growth Opportunities and Enhancing Existing Relationships.

We intend to review strategic growth opportunities, which may include joint ventures

and acquisitions, and other strategic transactions and enhance our existing relationship and

strategic alliance with the European Aerospace and Defense Group. For example, we recently

increased our customer service capabilities with the acquisition of OGMA through a consortium

led by us with EADS‟ participation.


Page | 34

Chapter Four

Findings,

Recommendations &

conclusion


Page | 35

4.01 Findings

Business structure of EMBRAER Executive Jets Bangladesh:

The business and marketing strategy has been discussed in the previous chapters. The business

structure of the Embraer executive jets Bangladesh is given below on the picture-


Page | 36

Segmentation Strategy of Embraer

Key Dimensions Segmentation Variables Logical Breakdowns

Geographic

Specific Location Dhaka city and major divisions.

Outlets

Sole distributer (Dhaka)

Dealer storeroom

(Different Airlines

Company)

Psychographic Lifestyle Luxurious

Demographic

Income High

Generation Young and aged people

Socio-cultural Social Class Upper class

Behavioral

Benefits Exclusive service

Readiness Unaware

Interested

Attitude toward service

Enthusiastic

Positive

Rational


Page | 37

4.02 Recommendations:

1. The company needs to focus on attracting more

customers by introducing new and varieties products

and services.

2. Introduce and develop new & hi-tech jets to maintain

the existing customers as well as attracting new

customers.

3. The company may also start providing maintenance

service or selling spare parts for manufactured jets or for those which are already in

use.

4. The company should extend its size.

5. The company has to provide attractive offers so clients are available to it.

6. It has to up-to-date its current activities on regular basis.

7. Diverse market can be tackled through proper distribution channel.

8. Company should recruit efficient employee. To increase Efficiency, Company should

make arrangement of different training session to its employee.

4.03 Conclusion

In the whole procedure, we wanted to apply our text knowledge in real life in the aspect of

company & marketing strategy for market segmentation, targeting & Positioning. As we could

analyze any existing company of Bangladesh but due to

lack of internal data, we emphasized on a multinational

company. How a company uses marketing at the time of

introducing new product and select different marketing

strategies relative to our topic is discussed in this topic.

We describe on the basis of academic knowledge in real

life scenarios. This report will help us to market any

product in future. As we go through the various source of internet, survey in real life, research

deeply on contextual areas, we ensure our report reader and user a real taste of marketing and

strategy, a company uses or adopts.


Page | 38

Appendix

The Sale and Pricing Strategy of the company :

Sales and marketing

Distribution

We will introduce a new virtual tradeshow platform, providing our consumers the

opportunity to attend the Embraer Executive jet tradeshow event by logging in from their own

computer. These events will consist of online training sessions, online general sessions with key

note speakers and online tradeshow booths all designed to educate, motivate and inform

consumers about our jets. We will operate reservation call centers to support our airlines

community in Dhaka which will allow us to provide flexible and extended hours of operations.

We will maintain websites that allow consumers to see our aircrafts.

We will place a significant focus on building strong relationships with our consumer

before, during and after their buying for customer engagement and continued loyalty. As part of

this focus, we will establish ongoing social media platforms to increase awareness for both

repeat and new airlines company and we will emphasize marketing through our loyalty

programs. As a result, we should be able to seek our goal

Promotional Activities

Promotional strategy is one of the important things that bring success to an organization.

Promotional strategy designed in a way which will encompass the images of the most treasured

elements of the product, the fascinations of technologies which will shape the future. In today‟s

highly competitive environment, the promotion part of the marketing mix plays a crucial role in

helping advertisers stay in touch with prospective customers.


Page | 39

“Embraer Aircraft” will be on the stage of introduction. The reason behind its on

growth stage because we will newly entered in the market. We need the help of electronic media

for publicity for our business. By this, Airlines Company will know that what kind of product,

we provide.

The promotion mix of Embraer is below:

Advertising

Sales promotion

Direct marketing

Event sponsorship

Team selling

Embraer will follow the following promotional strategies to achieve success:

Advertising - The advertising plan of Embraer will be planned in a way that it reaches all the

airliners or potential users looking for an aircraft which is excellent in terms of quality. The

strategy is developed to reach the target airlines through using radio, newspaper and magazine.

Advertising objectives:

To aware customers:

The main objective of their advertising is to aware customers of Embraer. Though the

target market is widely spread, Embraer will inform the target customers about their products.


Page | 40

To increase sales:

The second objective is to increase their sales because an advertisement helps a lot to

increase the sales of any company.

To increase brand preference and loyalty:

Since the target, market is wide, so Company has to build a strong brand image over

their competitors. Embraer will have loyal customers but it need to advertisement to increase it.

Out of different advertising media like print, radio etc,

Sales Promotion-

Embraer will follow sales promotion as a promotional tool. Sales promotion is generally

defined those activities that provide extra incentive to sales force, distributors and the ultimate

consumer. Embraer follows both trade promotion and consumer Promotion:

Consumer promotion:

Embraer follows this consumer promotion but not frequently. They provided seasonal

price reduction, especially in when the aircraft selling is low. It also they can provide some

attractive gifts to their consumer.

Trade Promotion:

Embraer will use incentives promotional tool. In this case they use push strategy. They

encourage the distributors to sell more. The activity is like, depending on the amount/number of

product the distributor get discount. But in this case the dealer‟s have to sell the targeted amount

first and then they will get 5% discount or sometimes-specific amount of money.

Direct marketing-

This direct marketing is only for the big institutional buyers like, defense force of Bangladesh

Biman etc. in the direct marketing they provide special offer or discount for these buyers.

Personal selling-

Embraer will go for personal selling as well. They have marketing people who tried to sell

Embraer aircrafts to big airlines.


Page | 41

Event sponsorship-

Event sponsorship is becoming very popular and Embraer aircraft will also use it for publicity.

Event sponsorship helps Embraer to establish public relations.

Advertising through electronic media-

The TV advertisement is becoming more popular and it will help the Embraer to reach more

closure to consumers. TV is one of the major tools for the mass marketing. It will also help the

Embraer to create brand awareness.

Team selling:

We sell Embraer executive jet through working like a team which includes marketing manager,

financial analyst, aeronautical engineer etc. We need marketing manager for publicity of our

jets, financial analyst for financial survey and aeronautical engineer to support the technical.

Its also we follow below this steps to convince our consumer-

Prospecting

Pre-approach

Approach

Needs identification

Presentation

Sales Process

Sales process will be done through

Direct sales for Jets

Online Booking for Jet Rent

Online booking for Flight Scheduling

Fixed Interval Maintenance might be confirmed through phone or e-mail

Competitors:

Competitor could be Bangladesh Biman and other travel agency in our country. We

should reduce price for our customer to travel short time and get discount card if the person


Page | 42

travel at least 10 times in a year because the person could be our loyal customer and we also can

give information in our customer by mobile short message service.

Market research:

First of all we need to collect data from different sources who will travel business

purposes and which area and we need to analyses which place is safety for us for price,

maintenance and other facilities. While our air plane is small and easily land anywhere that why

it is our main idea to capture the market. In our country our biman could not maintain actual

time. So we can get the market. Our customer is huge but they could not get benefit from

Bangladesh biman so they are not travel by air.

Financial Performance of Embraer:


Page | 43

Reference:

1. The Economic Times [http://economictimes.indiatimes.com/topic/History-of-aviation-

in-Bangladesh]

2. Embraer Executive Jets[www.embraerexecutivejets.com/]

3. Embraer [http://worldairlinenews.com/tag/embraer/]

4. Principles of Marketing – by Philip Kotler and Gary

Armstrong [Pearson Prentice Hall (tenth edition)]

5. Wikipedia [http://en.wikipedia.org/wiki/Main_Page]

6. Business Jets [http://bjtonline.com/business-jet-news/the-

major-business-airplane-manufacturers-at-a-glance]

End


Page | 44

Date post:	29-Nov-2014
Category:	Education
Upload:	-
View:	166 times
Download:	0 times

Marketing

Education