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However, all might not be as rosy in the aviation industry. Escalating fuel costs, debt troubles in Europe and natural disasters threaten the industry profitability. With oil prices sky rocketing to over $1 00 a barrel, and expecting to remain high over the next five years, elevated oil prices will keep the airfare prices high. According to Jeff Knitted, the 2012 outlook for the global aviation sector is dependent on the overall global economical growth. Despite these headwinds, there is still hope at the end of the tunnel.
Rising disposable income, tourism promotions and low-cost airlines will assist the industry s venue growth for the next five years. Etageres Market Scoot, having recently entered the industry via the support of its parent company, Singapore Airline, is vying for a place within the industry front runners. With its maiden flight set to depart in June 201 2, Scoot has thus tasked us to promote its flights for the June holidays, during the April – May period, in hope to promote trial and infuse brand switching amongst those in Singapore, who lead a conventional family life, and seek to give better to do their families daily..
Competitiveness A common trend between its competitors; however, is he very closely watched price war between each other. Due to the competitive nature of the industry, every move a competitor takes in differentiating itself is a positive maneuver in gaining a leverage in profit share. Conclusion Thus, this Advertising plan aims to give insight into the current low cost carrier industry, by giving Scoot an edge over its three competitors. Furthermore, the proposed campaign aims to build a brand image of understanding and resonance with Coot’s target market in Singapore to employ Scoot as the Airline that accommodates their needs. SOOT Analysis Strengths Scoot has cheaper and much competitive prices against the competitors Scoot can benefit from the highly reputable parent company, ASIA Scoot has a comprehensive online travel guide for customers as value-added service Scoot has stability in operation from sufficient injection of funds from ASIA Trained by ASIA, Coot’s service crew standards will be on par to ASIA Weaknesses Scoot has no customer base to work on as it is a new business venture Due to limited aircrafts, Scoot might be unable to cater more flights for the destinations they provide. There is a lack of presence of Scoot in the aviation scene There is little brand differentiation from its competitors due to the common terminology “budget airline”. Opportunities There is an increase in tourism growth in Singapore There is a rise of budget traveling demands for Asia destinations Consumers are looking to more ergonomic travel planning tools to help them map out their traveling itinerary Social networking platforms are rapidly gaining popularity and becoming a medium to spread information Threats Recent rising fuel costs are increasing operational costs There is an increase of 5. % inflation rate that will have customers cutting spending Rise in businesses switching to video conferencing will affect sales of our business class The trending disputes between the employees and ASIA could potentially affect crew members in Scoot, leading to a weak working relationship Scoot Advertising Proposal 3 Scoots Marketing Mix (ops) Product price Scoot offers three destinations, Singapore, Gold Coot’s round-trip prices range from Staccatos, and Sydney. The “Frills” ?? allowing customers to hose what they want to spend for the flight Scottie – business class Travel guide of destinations for customers Offers same quality service as of ASIA Place Promotion SEDGES on average. Personal Website Changing Airport Terminal 1 (Sales Office) Scoot now focuses their advertisement mainly online and outdoor. Blob Microsoft to constantly release updates to customers Surprise sales promotions like ‘1st flight for free’ or 30 seconds to free taxi’ ‘You Decide the Fare’ promotion that gives the discounted price consumers decided 4
Marketing Mix of Competitors – Competitors Analysis product Price Flights to all major cities of Australia like Sydney Starters prices range from SGD240SGD850 on and Melbourne, certain areas of China, and Singapore. Pad for rental. Value-added services such as hotel booking, car rental, and flight insurance. Place Promotion average. Travel Sites. E. G. Juju. Com Travel Fares. E. G. Natal Travel Personal Website Jetsam has advertisement on broadcast, print, online and outdoor medium. They mainly focus on TV. Seasonal offers and special packages Flights to Australia (Domestic) & Most Asian Tiger’s prices range from SEDGES-SEDGES on Countries Value-added services such as hotel booking, car rental, and flight insurance. Place promotion Travel Sites Personal Website Tiger focus their advertisement mainly online. Mainstream advertising are only done in Australia to promote their domestic flights. Consumer Microsoft for customers to blob of their travel experiences. Tiger’s sales promotions are mainly focused towards members to promote their CRM. Handful of flights to Australia and China; Mostly Air Sais’s prices range room SEDGES-USGS 180 on other Asian countries Kids Travel Deals Online Mega Store Value-added services such as hotel booking car rental, and flight insurance. Place Promotion Group Buying Sites. E. G. Group Personal Website Eurasia has advertisement on broadcast, print, online and outdoor medium. Sponsoring automotive sports like Fl Grand PRI and Mottos. Eurasia constantly conduct sales promotions that offer deals as low as SEDGES or discounts of baggage fees.
Research Research Objectives To find out the actual brand perception/portrayal of Scoot amongst Singapore To find out the lifestyle and media habits of its target market Research Design Methodology Quantitative Research Cross Sectional Simple Random Sampling (300 Sample Size) Survey results are summarized in advertising problems and opportunities. 6 Advertising Problems Scoots promotional activities have been successful, and its overall communication tools used have thus far been effective.
Most notably, its parent company, Singapore Airlines ranked , in the eyes of the respondents. Respondents from the survey mostly viewed scoot as a budget airline carrier, which has an easy going personality, catered towards young adult and family travels. Price wise, consumers expect Scoot to offer inexplicably cheap airfares. This is a major problem that Scoot faces, as branding oneself as “cheap” creates a definitive problem towards sustainability. Another area of improvement that Scoot should focus on is in its preference ranking.
Consumers were spoilt for choice between Air Asia and Jet Star, whilst Tiger Airways came in next behind them. As mentioned earlier, Scoot still is relatively new in the market; hence, response and respective towards Scoot as a preference would be vague due to its lack of trial thus far. Advertising Opportunities Scoots first promotional activity with its mailing list promotion was sold out within a matter of hours; proving the accuracy of the survey, that consumers view discounts as the most attractive incentive.
Understandably, a continued discount promotion would put a strain on operating costs. As such, Scoot should find other means and way to lure consumers to initiate trial with its carrier. (e. G. Such as building a strong brand image around it) Most exponents viewed that they would diligently fly with a carrier if they were part of a loyalty programmer with added incentives. Scoot can leverage on this with an integrated customer relationship management (CRM) programmer.
Although further promotional discount rates might not be available, its current pricing is still considerably lower than its competitors. Thus, Scoot can make use of this to initiate trial amongst its consumers through an advertising campaign, directed at flights during the June holidays, with a direction towards its website to persuade consumers towards a call to action. It would lastly be keen to note that social networking sites such as Backbone and Youth are a big hit with its consumers.
Such sites can be leveraged upon to promote positive word-mouth. 7 Target Audience: Demographics and Chirography’s Demographics Gender: Male & Female Age: 34-45 Years of Age Life Responsibility: Parents Nationality: Singapore and Permanent Residents Monthly Household Income: $4000 – $8000 Education Level: Diploma and Above 8 Chirography’s They are constantly finding ways to give their children more opportunities and experiences they deserve.
As such, both parents have to constantly shuffle their work schedule to try and accommodate and give their children more quality time with them. School holidays are a bonus for them, as their children are on vocation; however, normal airline tickets are usually too expensive, and budget airlines do not come with the frills they desire. Roy Mooring’s value Segment: Conventional Family Life Time and effort devoted to building a “home” Desire to give more to their children Want to enjoy family life They usually pounce on school holiday periods such as June and December to go on vacation
They rely on newspapers and friends (Word of Mouth) for information They like going for musicals as a form or relaxation They enjoy taking their children for educational excursions such as walks in botanical gardens, theme parks, the zoo and other places which promote a sense of enjoyment and learning altogether They look for good deals online for travel fares; however, find the price of normal airline carriers too expensive, and do not appreciate the service standards and amenities that come with budget airlines price is a major factor for them, followed by comfort and reputation of the airline With Scoot, they are expecting to receive cheap airfare, accompanied by comfort and good service. Although many of them do not belong to a frequent flyer program, they will continually purchase tickets from the particular airline carrier, if they are part of a frequent flyer program with them. Current Perceptual Map Most Flexible Worst Service Best Service Least Expiable Future Perceptual Map Most Flexible Least Flexible 10 Positioning Statement “Only Scoot puts “you” first in every decision, because everything about the air travel experience should be accommodating towards you” Advertising Objectives To increase awareness of scoot to a level of 85% amongst sample size surveyed To inform and become the preferred brand choice amongst the target market for budget carriers (Moving from 4th position to 1st) To inform and persuade consumers to travel with Scoot this June Holidays 11 Message Strategy We have chosen “Slice of Life” as our message strategy.
The advertisements message has to resonate with our target market. The scenarios portrayed have to be scenes that our target market can understand and relate to. The flexibility and service structure of the airline will allow the target market to liaise that Scoot fills a void between existing budget carriers and normal airline carriers. The main idea behind this strategy is derived from our single- minded proposition, ‘An Accommodating Experience’. This strategy enables Scoot to stand out as the only Budget Airline Carrier that really understands what consumers want, and gives them a choice to decide what they need and want before and during air travel.
Finally, the strategy should encompass these three areas: Scoot is the only budget airline that puts consumers first Scoot brings about a different air ravel experience unlike other budget carriers (Accommodating) Scoot is the most flexible budget airline carrier, accommodating consumers’ needs and desires Single Minded Proposition An Coma mandating Experience Tone of Ad Campaign Tone Heartfelt/Contemporary Light Hearted Assuring 12 “Only Scoot puts “me” first in every decision, because everything about the air travel experience should be accommodating towards me! ” The tone of the Ad Campaign aims to bring out the following points: Scoot is a fun and easy going airline, that understand me Scoot gives me the assurance that I can make my own decisions to enhance my air travel experience Scoot assures me that if something falls out of line, they would definitely do something to make my air travel experience, a pleasant one.