Emirate's Strategic Marketing

 

Executive Summary

This blog report analyzes the marketing efforts of the Emirates Group based on external and internal aspects affecting the company's competitive advantage in tourism. The report uses the Porter's Five Forces model to help determine the competitive environment and performs an extensive STP (Segmentation, Targeting, Positioning) to discern the needs of Emirates' consumers. Lastly, suggestions for further growth are provided to overcome possible problems and strengthen Emirates' marketing strategies for sustainable growth.  

Chapter One

An Introduction that Defines Tourism Marketing Concepts

The report intends to critically evaluate the marketing strategies of Emirates Group by identifying both the internal and external factors that impact the success of the Emirates Group in the global tourism industry. The findings of this report shall integrate key concepts in tourism marketing to analyze the company's competencies and weaknesses.

The report starts with a background of Emirates Group, followed by an external analysis using Porter's Five Forces. Then, an internal analysis through the STP framework is provided, and the overall discussion concludes with suggestions on future development and recommendations for an improved marketing plan. 

Chapter Two

  Background of the Company

 

Emirates Group, based in Dubai, UAE, and founded in 1985, is a global leader in airlines and tourism. As one of the most luxurious providers of in-flight experiences, the airline offers travel on a sleek, modern fleet to over 150 destinations across more than 80 countries. Emirates is synonymous with high-end travel, offering perhaps the most luxurious business class, as well as amenities such as private suites, fine dining, and advanced in-flight entertainment systems.

Emirates play a significant role in facilitating international travel and tourism, reeling people to the world's major destination-related product markets. Besides transportation, Emirates supplements the travel experience by patronizing luxury brands, hotels, and resorts. The services given by Emirates are not limited to offering travel by airliner but include VIP lounges, convenient connections to leisure and business destinations, and facilitating tourism by their fully integrated packages (Mohammad, 2015). It is in these efforts that Emirates plays a pivotal role in international tourism and leisure travel growth.

 

 

 

Chapter Three

External Analysis

Industry Competition

The airline industry is also highly competitive, particularly considering the large number of different types of players - from legacy carriers to budget airlines. Emirates face tough competition from global carriers such as Qatar Airways, Etihad Airways, and British Airways. Such competitors have equally extensive networks and offer competitive pricing and luxury services, thus increasing the level of intensity within the industry (Middleton et al., 2009). The intensity of rivalry is high as competitors compete on several factors such as the quality of services rendered, prices charged, and route coverage.

Supplier Power

Airlines are largely supplied through three key market players: aircraft manufacturers, fuel suppliers, and service providers-think airports. Emirates depend largely on a number of major aircraft suppliers: Boeing and Airbus. Naturally, this greatly limits the negotiating powers of Emirates when it goes to negotiate with these suppliers (Kotler and Armstrong, 2023). The cost of fuel is another important source of power for airlines since an increase in fuel price may have a direct impact on the airline's pricing power. While Emirates has some flexibility since it has placed large fleet orders, the bargaining power of its major suppliers is significant.

Buyer Power

The customers of the airline business enjoy strong bargaining power because of the availability of a vast number of options, particularly in Europe and the Middle East, where they have some principal airlines. Due to low costs due to online price comparisons, the travellers are rather sensitive to price and can also switch to other airlines with relative ease (Dolnicar and Ring, 2014). However, Emirates' emphasis on premium products, Skywards loyalty programs, shall mitigate buyer power over the clientele.

Entry Barriers

The airline industry possesses entry barriers because of high capital requirements, government regulations that are strict at time, and economies of scale that help organizations achieve profitability. To start an airline, it is extremely expensive in terms of aircraft, infrastructure, and human resource, which present a significant constraint for new entrants (Jain, 2013). To add to this, government regulations about safety and the airways also render it difficult to enter the market. These barriers benefit Emirates since they shield it from the threat of new competition.

Substitute Products

Substitutes for air services are increasingly threatening the airline industry, particularly for shorter distances where high speed trains and digital conferencing technologies (Zoom and Microsoft Teams, etc.) offer an increasing alternative. Trains, especially in Europe and other parts of Asia, offer a more affordable and green mode of transportation, while virtual meetings have reduced business travel (Tay and Chan and Mohamad, 2023). Emirates counters these substitutes by emphasizing luxury travel experiences, premium customer service, and long-haul international flights, which have fewer substitutes in comparison to short-haul domestic travel.

Chapter Four

 Internal Analysis

This chapter evaluates the internal marketing strategy of Emirates Group using the STP framework (Segmentation, Targeting, and Positioning). The STP approach creates customer segment identification and analysis, selection of the right targeting strategy, and positioning of Emirates' offer in a competitive landscape (Ahmet and Hancer, 2022). This paper examines how Emirates responds to the needs of its vast customer base, thereby giving the company a competitive edge in the global airline industry.

Customer Segmentation

Emirates Group uses a multi-level approach in its segmentation strategy, taking cues from geographic, demographic, psychographic, and behavioral factors for catering to the diversified needs of customers.

Geographic Segmentation: Emirates is based out of its Dubai base, covering more than 150 destinations globally. Their market coverage spans Europe, Asia, the Middle East, and the Americas. This global reach helps the airline cater to a large number of international travelers, particularly those traveling long distances.

Demographic segmentation: The airline caters to income groups- very rich profile for premium classes and less an affluent economy traveler (Jobber and Ellis-Chadwick, 2023). It has provisions for family and group travelers, keeping in mind the income, age, and occupation.

Psychographic Segmentation: Emirates concentrates on luxury-minded passengers who prefer comfort and distinctive service. The airline offers private suites and fine dining, targeting business and leisure travelers looking for premium travel experiences.

Behavioral Segmentation: Frequent travelers, especially business executives, are a key segment, supported by loyalty programs like Skywards. Emirates also targets first-time and seasonal travelers, such as tourists, with tailored promotions and marketing campaigns.

This segmentation strategy allows Emirates to create different offers tailored to the varied needs of its customers.

Targeting Strategy

The airlines use a differentiated marketing approach, where Emirates targets several market segments with unique offers. In this regard, Emirates tailor their services for the different customer groups, each with unique needs and preferences.

For example, Emirates' luxury offerings, for example, the first-class cabin and private suite, target affluent customers who desire exclusivity and luxury, whereas the economy class offers value for money to the bottom-of-the-well traveler (Blythe and Martin, 2023). The company also targets frequent business travelers through flexible booking options, lounge access, and rewards in its loyalty program.

Emirates' differentiated strategy is how it achieves a wide spectrum of customers ranging from those seeking comfort and luxury to affordability and convenience. This allows Emirates to have a significant grip on the market in several traveler segments, therefore further securing its position as the leading global airline.

Positioning/Perceptual Map

The positioning by Emirates in the airline market emphasizes the comfort, luxury, and service-oriented hotel service provided. The perceptual map compares Emirates with competitors such as Qatar Airways, Singapore Airlines, and British Airways on two dimensions: service quality and price. Emirates, Qatar Airways, and Singapore Airlines lie in the quadrant marked by high service quality and high price - premium of course. British Airways provides high-quality service but falls in the lower-priced category. This positioning reflects Emirates' competitive advantage in the luxury segment, through superior service and the delivery of a strong brand promise.

	Service Quality (High)	Service Quality (Low)
Price (High)	Emirates, Qatar Airways, Singapore Airlines
Price (Low)	British Airways

 

Chapter Five

Future Development and Conclusion

Issues Raised by the Marketing Audit

Some of the key challenges identified by the marketing audit are as follows. The substitute services of virtual meetings and high-speed trains threaten Emirates' short-haul market. Moreover, demand for sustainability in travel necessitates that Emirates move up the eco-friendly operations spectrum (Lee and Kim, 2023). Besides, increasing digital presence compared to those competitors calls for more drastic engagement on digital marketing fronts from Emirates to keep abreast with the younger tech-savvy travelers.

Recommendations for Future Marketing Strategy:

In light of such challenges, Emirates should be investing more in digital marketing, focusing on social media platforms such as TikTok and Instagram to engage younger audiences. Personalized marketing strategies that utilize customer data would enable particular promotions targeting the customer, enhancing loyalty. The company should also go further to promote sustainability by adopting greener technologies and presenting carbon offsetting more transparently. Involvement in biofuel technologies and carbon-neutral operations would help maintain Emirates' competitive edge in this growing trend towards eco-conscious travel. These will continue to make the airline stand out in the market and would accommodate the changing needs of its customer base.

 

References

Ahmet, O. and Hancer, M. (2022) Digital Marketing and Social Media Strategies for Tourism and Hospitality. London: Goodfellow Publishers Limited.

Blythe, J. and Martin, J. (2023) Essentials of Marketing. 8th Ed. London: Pearson.

Dolnicar, S. and Ring, A. (2014). Tourism marketing research: Past, present and future. Annals of Tourism Research.

Jain, M.K. (2013). An Analysis of Marketing Mix: 7Ps or more. Asian Journal of Multidisciplinary Studies, 1(4).

Jobber, D. and Ellis-Chadwick, F. (2023) Principles and Practice of Marketing. 10^th Ed. London: McGraw Hill.

Kotler, P. and Armstrong, G. (2023) Principles of Marketing, Global Edition. 19^th edition. Harlow: Pearson Education Limited.

Lee, J. and Kim, J.J. (2023). A study on market segmentation according to wellness tourism motivation and differences in behavior between the groups—focusing on satisfaction, behavioural intention, and flow. International Journal of Environmental Re-search and Public Health, 20(2).

Middleton, V., Fyall, A. Morgan, M. Ranchhod, A. (2009) Marketing in Travel and Tourism. 4th ed. London: Routledge.

Mohammad, H.I. (2015). 7PS Marketing Mix and Retail Bank Customer Satisfaction in Northeast Nigeria. British Journal of Marketing Studies, 3(3).

Tay, K.X. and Chan, J.K.L. and Mohamad, D. (2023). Do the 4Ps of marketing mix strategy assuage fears of travelling?. Journal of Vacation Marketing.