European Media is writing daily articles about the situation of the European airline business. The European airline market is, at the moment, with all the important changes and actual turbulences, the most dynamic industry sector. Some of these changes are:
The creation of new low-cost airlines in Europe, like Germanwings (Germany), Volareweb (Italy), and Sky Europe (Slovakia);
The disappearance and bankruptcy of airlines, such as V-Bird (Netherlands) and Swissair;
Air France merges with KLM to become the worlds biggest airline group;
A significant increase of purchases of airplanes by Arabic airlines.
This thesis focuses on the low-cost airlines, which arrived in Europe during the last 10 years and changed micro and macro environment of the airline business. Low-cost airlines like Ryanair and EasyJet make big profits while Alitalia, British Airways, Air France, and Lufthansa are having enormous problems.
The general opinion is that low-cost airlines are successful because of its lower cost in production, and therefore of its lower price they can offer to the customers. The thesis will show that the cost factor is not the only reason for the success of low-cost airlines:
"Being cheap is not enough"
The objective of the thesis is to find other reasons which explain the success of low-cost airlines by analysing the marketing development of European low-cost airlines with its strategies, positioning, customer satisfaction etc. Of special interest: The question how the low-cost trend changes the marketing and the behaviour of the traditional airlines and how do the customers react.
As reaction to this trend the traditional airlines are reducing at the moment costs in salary, distribution, maintenance etc. to survive. This is not enough. The thesis mentions marketing ideas and possibilities of how to compete against low-cost airlines, either by copying successful marketing methods of these airlines or by finding new innovative methods, fresh ideas and a new positioning.
The main objectives for my thesis are:
Is the success of low-cost airlines only a short term event or is it a successful business marketing concept? Are the traditional airlines in danger?
Is the Low Cost concept the better concept? What can traditional airlines learn from the marketing methods of low-cost airlines?
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Aviation History
- The beginning of aviation
- Air traffic regulations
- Airline market before 1993 and National carriers
- From monopoly to Air Transportation Liberalisation
- Airline business today: New competitors
- Change to customer oriented Marketing concept
- Low-cost airlines versus traditional airlines
- Situation of traditional airlines in Europe
- Airline Alliances and hub- and spoke system
- Example of a traditional airline: Air France
- Low-cost airlines
- A fascinating example: EasyJet
- The European low-cost market and development
- Situation of traditional airlines in Europe
- Marketing Analysis
- Scanning the marketing environment
- Market
- Segmentation of the airline industry
- Target market
- Motivation and Buyer behavior
- Needs, wants and demands
- The Marketing Mix
- Product
- Place
- Promotion
- Price
- High performance business
- The service character of Airline marketing
- Total Quality Management
- Internal Marketing
- Total Customer satisfaction
- Customer Relationship Management
- Frequent Flyer Program
- Market-oriented strategic planning
- Positioning for competitive advantage
- Meaningful Differentation
- Brand Management
- SWOT analysis
- Dealing with the competition
- Scanning the marketing environment
- Conclusison and future developpement
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The thesis aims to analyze the marketing strategies of European low-cost airlines and understand the reasons behind their success in comparison to traditional airlines. This research will explore the impact of the low-cost airline trend on the marketing landscape of the European airline industry and examine how traditional airlines can adapt to these changes.
- The emergence and success of low-cost airlines in Europe
- The impact of low-cost airlines on the marketing strategies of traditional airlines
- The analysis of the marketing mix and internal marketing strategies employed by low-cost airlines
- The exploration of customer satisfaction and different positioning strategies used by low-cost airlines
- The examination of future development and marketing propositions for both traditional and low-cost airlines.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: This chapter introduces the thesis topic, highlighting the dynamic nature of the European airline market, the rise of low-cost airlines, and the challenges faced by traditional carriers. It states the thesis objective and questions to be explored, emphasizing the importance of examining the marketing success of low-cost airlines beyond their lower cost structure.
- Aviation History: This chapter provides a historical overview of the European airline industry, tracing its evolution from the early days of aviation as an adventurous sport to the emergence of national carriers after World War II. It examines the impact of regulations and the creation of organizations like IATA on the development of the industry.
- Low-cost airlines versus traditional airlines: This chapter delves into the differences between traditional and low-cost airlines in Europe, examining the challenges faced by traditional airlines and the strategies employed by low-cost carriers. It focuses on the case studies of Air France and EasyJet to illustrate the differences in their approaches.
- Marketing Analysis: This chapter explores the marketing environment of the airline industry, focusing on market segmentation, target markets, buyer behavior, and the marketing mix. It delves into key aspects like product differentiation, place, promotion, and pricing strategies, highlighting the distinctive features of low-cost airlines.
- High performance business: This chapter analyzes the service-oriented nature of airline marketing and examines key concepts like Total Quality Management, internal marketing, customer satisfaction, and customer relationship management. It discusses the application of these principles by both low-cost and traditional airlines.
- Market-oriented strategic planning: This chapter explores the strategic planning process for airlines, emphasizing the importance of positioning, differentiation, brand management, and competitive analysis. It examines how both traditional and low-cost airlines utilize these strategies to achieve competitive advantage.
Schlüsselwörter (Keywords)
The main keywords and focus topics of this thesis include low-cost airlines, traditional airlines, European airline market, marketing strategies, customer satisfaction, competitive advantage, positioning, differentiation, brand management, and the impact of the low-cost trend on the airline industry.
- Quote paper
- Nils Kernchen (Author), 2004, Marketing differences between traditional airlines and low-cost airlines in Europe, Munich, GRIN Verlag, https://www.grin.com/document/34989