Singapore Airlines, Case Study Essay

September 9, 2017 Cultural

This instance test for the faculty ‘Principles of Marketing’ histories for 70 % of the concluding class for this faculty ( IBMMK108R1 ) . The two multiple pick trials during the faculty history for 30 % ( 15 % per trial ) .

A CASE STUDY OF SINGAPORE AIRLINES

Executive Summary

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As a former British Colony that gained full independency in 1965. Singapore was basically forced to do make with its limited resources. This developed into a national compulsion with accomplishing excellence without via media and has been responsible for its many successes. This attitude of control and finding was critical in the creative activity of the civilization within Singapore Airlines ( SIA ) . From the first unveiling of its official colorss in 1972. SIA’s primary aim was that of making a universe Class air hose. able to vie against the best in the universe. without authorities subsidy or intervention. This international focal point. along with its end of being typical. resulted in the creative activity of a company-wide committedness to the success of the air hose.

Introduction

The individual biggest challenge confronting Singapore Airlines is that of keeping its topographic point as the world’s best air hose every bit good as the most profitable. Having been recognised and rewarded for its outstanding degree of service. whether or non it can keep on to its top place remains to be seen.

PRODUCT CATEGORIES

SIA’s merchandise offering is divided into three chief lines. The First Class place represents the ultimate in air-borne luxury with matching monetary values. SIA allocates no more than 5 % of its seats to this Class due to its limited market. The following class is the Business Class place. Passengers in this class bask to the full lean backing and seats. plentifulness of infinite and first-class nutrient served on usage designed China. The allotment for this Class makes up about 10 % of the mean burden. The most significant class in the merchandise mix is the Economy ( or “Tourist” ) Class. which accounts for near to 85 % of the place allotment. Even though SIA has one of the most modern fleets in the industry. and has service degrees that other air hoses can barely fit. the outgrowth of other regional air hoses who aim to displace SIA from its prized leading place poses some menace to the company.

Goals

Based on comparings of SIA’s public presentation with other international air hoses. SIA performs good. SIA finished up the twelvemonth in the 6th place in footings of rider Numberss. ten percent in rider kilometers. and first in absolute net income ( See Table 1 ) . This is in line with the univocal end that has driven the company since its origin.

However. with the turning competition in the industry. SIA needs to see ways to non merely protect its penetrated market from competitory eroding. but besides to increase it’s market portion. Due to the premiums paid by the Business Class rider. the company has directed its ideas towards this market to make it’s end of remaining in front of competition and addition market portion. One of import demand has been set: that there should be “no via media of committedness to quality. . . . if a trade off is necessary. it should be in favor of the client. ” Another extra tool in the armory is the fact that SIA is an industry leader in the usage of engineering as a competitory tool. It is the position of the direction that this will hold an increased function as a discriminator.

BUSINESS CLASS PASSENGER PREFERENCES

To increase market portion and competitory position in the Business Class client section SIA did an extended market research including a study. From the consequences of the studies conducted. it appears that there are some wants of Business Class travelers that are non presently catered to by the first-class in-flight service already provided by SIA. These are summarised as follows: The debut of orbiter telephone installations on-board brings
is one of the demands of these riders. Printers. coursers and computing machine workstations are a logical extension.

With the exclusion of secretarial services. it is wholly possible that the usage of engineering will enable concern travelers entree to full office installations in the air. In add-on. whilst other client wants ( such as showers ) may non be logistically or economically efficient. it is non beyond the range of the imaginativeness to supply minor personal comfortss such as installations for pressing or altering. This would be particularly good to travelers with clip restraints.

Nutrition and Meal Frequencies

The fact that all repasts arising from Singapore are prepared by ISO certified SATS Catering Private Limited. SIA’s providing affiliate. are planned by dieticians. and strictly tested for suitableness to the alone demands of air travel is non known by the general populace. These issues could be better communicated to the riders merely through including the nutritionary content of the repasts. The services of SATS catering could besides be applied towards turn toing passengers’ expressed penchant to hold smaller repasts at greater intervals.

Time

Consequences of the Business Class rider study besides pointed to waiting clip and amusement as factors impacting rider satisfaction. Whilst a big figure of holds associated with air travel are beyond the control of the air hose. such as holds due to inclement conditions. some of the client dissatisfaction is due to the deficiency of information. Technology could be used to turn to this. Reports could be inserted into the amusement system accessed by Business Class riders. This. along with options for synergistic picture amusement in the signifier of computing machine games. online shopping ( as opposed to catalogue shopping for responsibility free points ) . even mechanisms for telling repasts and drinks are non beyond the range of present engineering.

Customer Satisfaction and ailments

Another country for concern is that primary informations suggests that rider dissatisfaction has tended to arise from riders of certain nationalities. This suggests a inclination shown by certain civilizations for external look. This is an of import consideration as surveies have indicated that ailments received are merely the tip of the iceberg ; a company could stand to lose up to 96 % of its unhappy clients.

Consistency of in-flight service quality with land service quality Another issue of some importance is the deficiency of direct control over the quality of land services offered by SIA’s providers in states. and specifically at airdromes. around the universe. The existent issue is the communicating. despite cultural differences. of the demand for and the care of a consistent degree of service quality.

Cleavage

Apart from the usage of engineering to better the Business Class services. it would besides be utile for the air hose to see farther sectioning it’s largest mark market – the Economy Class Traveller. Sub-Segmentation or Niching will enable the air hose to pull off. and maximize the returns from its clients by run intoing customers’ demands. and will let the air hose to bear down a premium in the procedure.

Sub-segmentation

SIA could. through the re- scrutiny of the penchants of its largest client section. really create an extra sub-segment or niche. The turning wealth of Singaporeans ( over a 3rd of whom choose to wing SIA ) and the part. plus the acknowledgment of the turning demand for comfy. yet economical travel particularly on long-haul flights may good bring forth a demand for an extra category of travel. The likeliness of this program could be ascertained by besides carry oning rider studies of the Economy Class travelers on long flights. This interim category could be positioned between the Business and Economy Classes. with some cardinal discriminators. Priced at a little premium over the Economy menu. it could be introduced on Long Haul flights before eventual acceptance on shorter paths.

CONCLUSIONS AND RECOMMENDATIONS
Addressing Business Class Passenger penchants

A good figure of the rider penchants. as revealed in the study. can be addressed through the usage of engineering. Here. Singapore Airlines is already a leader. and already has the necessary expertness in the sourcing and application of engineering. It should be noted nevertheless. that the competitory advantages brought approximately by such technological inventions are inherently temporal as they rapidly erode as a consequence of competitory emulation. Nevertheless. changeless and uninterrupted invention is critical in keeping a competitory advantage. Hence. SIA should go on to use engineering towards heightening its on-board service.

Cleavage

It is recommended that SIA creates an extra sub-segment or niche ; the “Interim” Class. Due to the capacity-constraints inherent in the air hose concern. and the placement of the proposed “Interim” Class. it is natural that cannibalisation of bing sections should be a concern. The monetary value and the discriminators should be carefully selected so as non to come excessively close to the exclusivity and luxury of the Business Class. whilst keeping sufficient touchable benefits above and beyond those available in Economy. In decision. SIA needs to move to keep its competitory border and grow market portion by utilizing engineering to better cater for Business Class demands and SIA should carefully present an “Interim” Class.

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