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BU8501Marketing for the 21st

Century

Chosen COB: SIA

Tea

m 1

Presentation 2

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SIA

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Refocusing on Business Class

Rewards and loyalty program

Improvements to Social Media

Redefining Budget travel

Flight Schedule

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Recap

Strengths- Strong Brand Equity

- Strong Cash position

Weaknesses- Unbalanced Business Portfolio

- Absence of domestic market

- High cost of travel

Opportunities- Airline traffic on upward trend

- Dominance in lucrative Routes

- Strong alliance in CodeshareAgreement

- Profit Boosters

Threats- Budget airlines

- Similar league competitive airlines

- Rising fuel cost

SWOT

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Market Research

Survey

50Participants

20 50

Years Old

Wide IncomeGrp

Questions

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Business Class

Refocusing

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Market Segments

Budget Economy Premium

Business 1st

Class

Market Segmentation

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Why Business Class?

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Convenience

Connectivity

Work on the go

What they look for

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Higher profit margin

Potentially largemarket

Why Business Class?

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How do we market?

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0%

20%

40%

60%80%

100%

Paid by self

Paid by company

Business Class Travellers

Who pays?

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How to market business class?

Market to companies

Psychological Pricing

Environmental sustainability

Lounges

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Rewards &

Loyalty Program

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MeetingCustomer Expectation

Service

Two way Communication

Value for money

Expectation vs results

LCC & Full-fare carriers

Accountability

Safety, Punctuality, Baggage Handling

Feeling of Importance

VIP

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Singapore Airlines KrisFlyer

Three tiers of membership

Different entitlements

PPS Club

Exclusive membership

High rate of earning points

Many ways to earn points

CurrentReward Scheme

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Alternative way to spend miles earned

Flight awards and flight upgrades

Creating a online store

Purchasing miles

Using cash to buy miles

Allowing miles to be transferred

Recommendation:Improving Reward Scheme

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Create a brand partnerships with more

companies

American Express Singapore Airlines Credit Cards

Companies from different sectors

Food and Beverages

Sports (Nike, Adidas)

Skin Care Products

Recommendation:Co-Branding

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Social Media

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SIA not leveraging on the power of Social Media

Started their official facebook and twitter sites only inSeptember 2011

Took over from a fan who founded the fan page

Other airlines started as early as 2008

Slow start to the social media market

Recommendation:Marketing through social Media

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Leveraging on the power of Social Media

Community building through 'fan-base' Building and increasing brand awareness

Customer interaction and support

Increase click through rate to official website

Recommendation:Marketing through social Media

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Additional service

Post details of its flight crews for each flights

Passengers get to know their cabin crews beforethey fly

Brings the airline closer to the heart of passengers

Recommendation:Marketing through social Media

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Budget TravelRedefining

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Scoot ?

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Market Segments

Budget Economy Premium

Business 1stClass

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0%

20%

40%

60%

80%

Yes

No

34%

66%

Have you taken budget flightbefore?

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Market Segments

Budget Economy Premium

Business 1stClass

ValueBudget

ServiceBudget

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0%

20%

40%

60%

80%

Yes

No

24%

76%

Budget: Satisfied with service?

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0%5%10%

15%20%25%30%35%

28%32%

20%

8% 12%

Budget: Why not Satisfied?

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Market Segments

Budget Economy Premium

Business 1stClass

ValueBudget

ServiceBudget

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Recommendation:Subsidiary: Budget Carrier

Market Segmentation

- Distinctive: Premium vs. Budget

o Launching Budget subsidiary is correct

- SIA retains appeal to premium segment

- Budget subsidiary captures budget segment- Free from undermining current position

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Recommendation:PPS for Budget Carrier

PPS for SIA Budget

- priority check-in

- larger baggage handling

- access to the SIA BudgetLounge

Priority PassengerService (PPS) for SIA

- priority check-in

- larger baggagehandling

- guaranteed Economy

Class seats when wait-listed

- access to the Silver KrisLounge

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Recommendation:More value for same budget

Extend existing SIA benefits (that would not erode itsposition)

- Real-time Flightsupdate

- Mileage for Rewardschemes

- Singapore Girl- The SIA Experience

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Recommendation:Budget Carrier rides on SIAs success

Young Fleet

- avg 7 yrs old, vs. other budget carriers avg 15-20 yrs old

- lower maintenance costs- appeal to travellers

o

SIAs Flight operations- Economies of scale

- Maintenance

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Recommendation:Budget Carrier rides on SIAs success

SIAs weight in industry

- Better leverage in negotiations

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Conclusion

Refocusing on Business Class

Rewards and loyalty program

Improvements to Social Media

Redefining Budget travel

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Q & A