Marketingplan for Lufthansa in Kenyan market
Executivesummary and the background analysis
Lufthansaairline is one of the largest airlines in the world with itsheadquarters in Germany. The airline operates in over 70 countries inthe world with almost 300 planes. The airline operated its flights inKenya 18 years ago but it has now resumed its services in the capitalof Kenya, Nairobi (BT reporter, 2015). This move has been driven bythe high demand by leisure customers who would wish to visit Germanyand leisure tourists who visit Kenya from Germany. Lufthansa is oneof the airlines which offer excellent and quality services and it isrelying on this strength to penetrate the market (Schulz et al.,2008).Additionally, the airline has extremely friendly and qualified staffmembers who offer professional services. Besides these strengths, theairline is relying on its brand name which is adored by many.
Theair travel business is growing and changing rapidly. It is essentialfor every airline to part of the drivers of that change. Competitionis extremely stiff and every airline must develop strategies andinnovations which will enable to circumnavigate in the market(Rostin,2007).Lufthansa airline is endowed in terms of the strengths that it has.Being the largest airline in Europe, the airline enjoys support fromloyal customers and the 37000 qualified and professional employees.It is also essential to state that the airline is known for thesafety records and the comfort that it offers its passengers. Theopportunities that the Kenyan market provides are within thecapabilities of the airline. The airline will rely on its brand nameand quality of services it offers to penetrate the market (Rostin,2007).The airline will be providing four weekly return flights betweenKenya and Germany. This will go a long way in providing conveniencefor the leisure customers and business people. The airline targetsthe leisure passengers, business people, corporate and the middleclass. To win these passengers from other airline such as the localKenya Airways, Lufthansa will have to conduct an extensive marketresearch and marketing to win the market (Hittetal., 2007).
Understandingthe internal environment will be vital for the airline. It isparamount to understand the micro, macro and internal environmentsbefore embarking on the operational flights can begin. It is prudentto understand the competitors in the new market. The airline willface stiff competition from the local major airline, Kenya Airways(BTreporter, 2015).The local customers are more accustomed to the local airline morethan the new airline entering the market. Locally, the environmentfor business is conducive and there are opportunities that theairline can utilize to ensure that it succeeds in the market. Kenyais a country that is endowed with numerous tourist attraction sitesand game parks including the Nairobi national park which is just 2kilometers from the city center. The airline will look at such macrofactors in its marketing strategy (Belobabaet al., 2015).This natural attraction sites and wild animals attract tourists fromEurope hence the airline will have numerous clients.
Itis also evident that there are numerous people especially thebusiness people who travel to Europe for business trips and who wouldlove an airline that offers comfort, convenience and safety (Kawira,2015).This airline is one of the airlines with the best safety records,comfort and convenience for the passengers. Understanding these localneeds of the potential passengers is extremely vital for the airline.Additionally, it is vital to understand the economic status of thecountry that one is venturing into (Rostin,2007).It is abundantly clear that Kenya is a middle income country and thepotential customer can only pay as much for the services beingoffered by the airline. The airline will stress on providing qualityservices at an affordable price.
Itwill be prudent to understand the local foods that passengers wouldbe excited about. Additionally, understanding the culture of theKenyan people will be paramount for the success of the airline in thecountry. One of the strategies of penetrating into a local market isidentifying oneself with the culture of the people (Cento,2009).It will be prudent to have the local people being served with foodswhich they are familiar with. Additionally, another factor toconsider will be to have staffs that are conversant with the locallanguage which is Kiswahili (Plunkett,2008).This will make it extremely easy for the staff members to communicateeasily with the clients.
Marketingstrategy and objectives
Lufthansaairline will have to deal with a competitive market in Kenya. Thereare numerous airlines operating in the market which are establishedand well known by the locals. The Lufthansa airline has to setobjectives which must be given a timeframe (Plunkett,2008).The following are some of objectives that the company has set upbefore embarking on the marketing strategies that would ensure thatthe set goals are met.
Tomaintain the status quoin the provision of quality, convenient, safeand affordable services while utilizing the latest technology in theairline industry.
TheLufthansa airline seeks to maintain customer value even when it isattempting to lower the cost of operations
TheLufthansa airline has the objective of ensuring that clients aresatisfied and offered locally customized services such as food anddrinks, as well as being addressed in a friendly language.
Theairline also aims at enhancing its profits through the new flight toNairobi
Theairline seeks to increase the number of planes operating the flightto two in December and to three in January 2016.
Thereare a number of marketing strategies that the Lufthansa airline willadopt to ensure that it penetrates the market. To start with, thecompany will focus on its brand to market itself in the Kenyanmarket. Lufthansa airline is one of the best brands in the wholeworld (Hitt et al., 2008).The airline enjoys immense support in the European market due to itsgood records on safety and customer satisfaction. The company willuse its good brand to advertise itself in the market (Miller et al.,2009).It is within the airline’s knowledge that a product is only newonce and the company must take this opportunity to create the bestimage before the Kenyan potential passengers. The airline plans tohave advertisements on newspapers, televisions and radios in thecountry to market its new flight in Kenya.
Itis general knowledge that the company offers comfort, quality andaffordable service. This is the basis that the company will use inmarketing itself in the local market. Having been in operation in thecountry 18 years ago, the airline will use this as a strategy toaffirm the value it accords the Kenyan passengers hence the decisionto resume operations (Holloway,2008).In order to compete with the other airlines and to win the market,the airline will have to be exceptional in its services (Miller etal., 2009).The pricing must coincide with the local rates and the services theyoffer must be better than the ones offered by the other local andinternational airlines. It is vital to set a positive mark at thebeginning when the airline is still new in the market.
Marketingprograms (7 Ps)
The7 Ps of a marketing program are essential in the marketing of theLufthansa airline. The company will use these 7Ps to streamline itsoperations in the market. It is essential to state that the 7 Ps ofmarketing are the Product, price, people, place, process, promotionand physical evidence strategy. These 7Ps are used in marketing toensure that a business covers all the areas that are essential forsuccess.
Themain product of the Lufthansa airline is the air transportation forpeople and goods. However, it is essential to note that the goods airtransport services have been available in the Kenyan market.Therefore, the new product which is being offered is the passengerair transport. Within the component of the airline product is thecrew who include the air hostesses and the cabin crew. These areprofessionals who offer quality services to the passengers anytime.Additionally, within the products are foods and drinks for passengersonboard (Nijssen &Frambach,2012). This is coupled with entertainment that is tailor made forspecific audience. It is worth noting that the Lufthansa airline hasits own terminal in Frankfurt which gives the airline an additionaladvantage over its competitors. Additionally, the terminal allows theairline to offer quality services to the clients.
Theairline has in the pipeline various potential products. It has becomeapparent that there are numerous unaccompanied minors who are foundat destinations. The airline is in the process of developing a loungewhere such unaccompanied minors can be taken care of. It is, however,essential to note that the airline will take immense precaution dueto major issues of kidnapping by having parents of the minors signingforms allowing the minor to travel alone.
Lufthansaairline plans to penetrate the market through offering relativelycheaper rates than the other airlines in the Kenyan market. This willattract customers. However, it is worth noting that the airlineshould take precaution not to be perceived as a cheap brand when itoffers services are relatively lower prices than the other airlines(Nijssen &Frambach,2012). The prices should be reviewed up in a few months time afterthe company breaks even in the market. This will make the airline bein the same level as the other airlines in the market.
Thisis the places where the products of the company are sold. In thiscase, the only product that the company can sell is the air tickets.These can be sold from the various agents across the world that areauthorized by the airline. Additionally, the company has a websitewhere the passengers can login and purchase tickets. The websiteallows the passengers to select the product that they need accordingto their budget (Nijssen &Frambach,2012). The airline will also have physical offices at location inNairobi where passengers can present themselves physically andinteract with the staff while buying the tickets. Lastly, the airlinehas a call center where the passengers can call in and book theirairlines. These various options give the airline a front foot in themarket.
TheLufthansa airline has the best staff in the market. The airline has37000 employees who are well trained and who maintainprofessionalism. The staffs are trained to always be courteous withthe customers and kind (Nijssen &Frambach,2012). It is notable that passengers will always go back to anairline whose staffs were courteous and friendly as opposed toairlines which might be cheap but have rude and unfriendly staff.Since the airline industry is a service industry that keeps changing,the Lufthansa airline keeps training its staff to enhance servicedelivery.
Theprocess for booking, check in and departure is extremely simplifiedby the airline. Having its own terminal in Frankfurt, the airline isable to have a simple process that the passengers can follow (Nijssen&Frambach,2012). This includes the payment of the ticket, booking, check in anddeparture. Passengers can check in online through the airline’swebsite.
Thisis the physical evidence of the presence of the airline. Theaircrafts belonging to the airline are visible from a very fardistance due to the striking name “Lufthansa” on the side. Thisis coupled with the staff that can be identified from a distance dueto their uniforms (Nijssen &Frambach,2012). The airline also has billboards in the airports which areunique due to the logo of the airline and the name. The entertainmentsystem is also unique with video and audio options. Additionally, theentertainment is available in various different languages. The menusin the airline are unique and bear the name of the airline.
Theseare the strategies that are used by the airline to attract morecustomers. The company uses direct marketing where it uses itsemployees to talk to customers through the word of mouth. The companyalso uses gifts which are branded with the Lufthansa airline logos tocustomers (Nijssen &Frambach,2012). Advertising through the radio, television and the social mediaare also part of the company’s promotion strategy. Print promotionis at the core of the airline’s promotion where the company givescustomer printed brochures. Sales promotion through coupons is alsoanother strategy of promotion that the company uses. This isextremely essential in attracting new customers and retaining theexisting customers (Kawira, 2015).
Theseare strengths, weaknesses, opportunities and the threats that theairline is likely to face in the new market.
The airline has over 200 destinations across the world and it operates in more than 80 countries
The airline has a strong workforce which comprises of 37000 employees (Miller et al., 2009).
The airline has the best technology in the airline industry from German engineers
The airline is also one of the largest in Europe and it enjoys support from numerous customers.
There is the competition in the Kenyan market from other local and international airlines that is a major weakness for the airline
The market share growth in Kenya is limited due to the competition.
Offering quality services to the clients will be a great opportunity for the airline
Being a large airline company, Lufthansa airline can acquire some of the small airlines in the new market
Rising jet fuel prices is a major threat for the airline
There is the threat of cheap tickets from other airlines in the country
Therewill be a number of controls in the process and evaluations to ensurethat the new venture into the Kenyan market offers the best returnspossible. As stated earlier, the airline targets middle incomeearners, leisure travelers and business people. Therefore, it isessential to have controls which assess the rate of income and theincrease in the rate of income (Schulz et al., 2012). This will beextremely vital in ensuring that the airline does not go at a loss.The key evaluation would be to check the number of passengers overtime to ensure that they are increasing. More passengers would implythat there are more returns and that the marketing strategy employedby Lufthansa airline is working (Nijssen et al., 2012).
Itis vital to assess the success or the failure of the airline in thenew market by carrying out surveys from the passengers. The surveysshould be easy and short asking the clients about their views withregards to the services being offered by the airline. It is paramountto listen to the complains being brought forward by the passengers(Bolke,2015).These are the strategies that the airline will use to enhancecustomer satisfaction. It is also essential to state that theemployees will carry out surveys which indicate how they feel aboutthe new operations in the capital of Kenya, Nairobi.
TheLufthansa airline has made a wise decision to venture into the Kenyanmarket. The Kenyan market, considering the tourism sector in thecountry, has great opportunities for the airline. There are numerouspassengers who travel from Europe to Kenya for tourism (BDAfrica,2015).By the airline having four flights per week to Kenya, it is willdefinitely attract numerous customers. It is essential to mention thegreat brand that the airline has which it will use to market itselfin the country (Davies, 2012). Advertising and direct, as well asprint marketing will be essential in ensuring that the airlinepenetrates the market. The airline has a great history of qualityservices, safety and friendly staff and this will work towards thebenefit of the company.
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