Individual Assignment 2
You are to research on a brand and discuss how it has successfully or unsuccessfully positioned itself in the market. Your assignment will include discussions onthe market the brand competes in, itstarget audience/s,brand positioningandstrategies.
Deliverables:
You will be required to submit a write up, no longer than 6 pages (excluding cover, references) on thepositioning,brand values,marketing strategyandpromotion mixon a brand that you research on. As this is a promotions management module, you will be expected toprovide an in-depth discussionof the promotion strategies and plans.
Individual Assignment 2 You are to research on a brand and discuss how it has successfully or unsuccessfully positioned itself in the market. Your assignment will include discussions on the market the brand competes in, its target audience/s, brand positioning and strategies. Deliverables: You will be required to submit a write up, no longer than 6 pages (excluding cover, references) on the positioning, brand values, marketing strategy and promotion mix on a brand that you research on. As this is a promotions management module, you will be expected to provide an in-depth discussion of the promotion strategies and plans. Singapore Airlines (SIA) is the flag carrier airline of Singapore. The global company was officially inaugurated in 1972, but has humble roots dating back to 1947 when it was still part of Malayan Airways Limited. Over the years, SIA has grown tremendously to become one of the world’s most awarded airline – thus undoubtedly a successful brand. Today, the company and its subsidiaries has rightfully earned their stellar reputation in the highly competitive commercial aviation business through the provision of superior-quality (SQ) service and dominating the global business-travel segments. Strategic Environment Analysis (1 page) SIA’s external environment revolves around the aviation industry. Before Covid-19, the aviation industry was one of the significant contributors to Singapore’s GDP (____) with positive 20-year forecasts (____) that signal favourable economic conditions for the sector to thrive. SIA is 54.5% owned by Temasek Holdings (____), a state-owned investment holding firm which manages their own assets based on corporate principles (____). This ensures stakeholders that Temasek has vested interests in the success and continuity of Singapore’s treasured national airline. Legislation and regulatory requirements in Singapore’s aviation industry are strictly governed by Civil Aviation Authority of Singapore (CAAS). Additionally, CAAS oversees provision of timely financial assistance to affected airport partners during times of economic downturn, including during the Global Financial Crisis in 2009 and the ongoing coronavirus outbreak, helping to finance business costs and protect jobs (____ & ____). In recent years, SIA has seen cut-throat competition within the market due to aggressive fare strategies of low-cost carriers (LCCs) and the constant progress of its Middle Eastern rivals like Qatar Airways (____). There has also been a move towards sustainability in businesses as persistent climate change intensify concerns of environmental degradation and its impact on the aviation industry (____). Lastly, technological change in the age of digital transformation has created great potential for air transportation services to better leverage digital solutions to connect with their workforce and customers. Comment by Cheiry Ng: https://www.statista.com/topics/5897/aviation-industry-in-singapore/#dossierSummary__chapter3 Comment by Cheiry Ng: IATA THE IMPORTANCE OF AIR TRANSPORT TO SINGAPORE Comment by Cheiry Ng: https://centreforaviation.com/data/profiles/airline-groups/singapore-airlines-group Comment by Cheiry Ng: https://www.temasek.com.sg/en/who-we-are/our-purpose Comment by Cheiry Ng: https://www.caas.gov.sg/who-we-are/newsroom/Detail/caas-to-give-out-a-total-of-s$200-million-to-assist-airport-partners-tide-over-economic-downturn Comment by Cheiry Ng: https://www.straitstimes.com/singapore/singapore-budget-2020-aviation-sector-to-get-112-million-package-to-tide-through Comment by Cheiry Ng: https://www.todayonline.com/business/singapore-airlines-kicks-revamp-after-first-loss-five-years?cid=h3_referral_inarticlelinks_03092019_todayonline Comment by Cheiry Ng: ICAO Global Aviation and Our Sustainable Future Delving deeper into SIA’s internal environment, a part of their success stems from the strategic management of organisational structure, human resource (HR), and organisational culture. In 2017, SIA started a review and transformation of its structure with a focus on enhancing cost and service efficiencies to better position the group for long-term sustainable growth (____). This 3-year restructuring meant redesigning irrelevant jobs and reintegrating divisions, while supporting staff in retraining and redeployment (____). Additionally, SIA’s HR management reinforces the service excellence strategy to begin with, through stringent selection and recruitment processes, rigorous training and retraining of employees, and motivation using rewards and benefits, especially for its front-line flight crew (____ & ____). These comprehensive policies cultivate a deep-rooted service culture where employees are encouraged to keep costs low and boost individual productivity to deliver great service (____). For physical assets, SIA’s total value of property, plant and equipment (PP&E) is extremely high (66.15%) compared to total assets, which is an industry norm. According to ______ (2020), SIA reported its first annual net loss in 48-year history, as Covid-19 halted global air travel. Based on their annual report and financial statement, SIA took active steps to build up its liquidity, conserving cash, reducing spending and manpower costs, deferring capital expenditure and tightening operating expenditure (____ & ____). Lastly, SIA’s boardroom takes dedicated leadership of the brand strategy, taking advantage of their wide range of competencies and experience in the industry to lead the organisation to success. The Director and CEO, Goh Choon Phong, has received awards for “Best CEO of the Year” (____), which signifies his success in managing SIA. Comment by Cheiry Ng: https://www.todayonline.com/business/singapore-airlines-kicks-revamp-after-first-loss-five-years?cid=h3_referral_inarticlelinks_03092019_todayonline Comment by Cheiry Ng: https://www.todayonline.com/business/singapore-airlines-transform-operations-and-reintegrate-cargo-business Comment by Cheiry Ng: Managing human resources for service excellence and cost effectiveness at Singapore Airlines CREW TRAINING Comment by Cheiry Ng: https://hbr.org/2010/07/the-globe-singapore-airlines-balancing-act Comment by Cheiry Ng: show calculationComment by Cheiry Ng: https://www.straitstimes.com/business/companies-markets/singapore-airlines-records-first-annual-loss-in-48-year-history Comment by Cheiry Ng: annual report 2019/20 and 2018/19Comment by Cheiry Ng: https://www.scawards.com.sg/best-ceo.html Brand Positioning & Values (0.5 page 1 para) The SIA Group leverages on their portfolio strategy, in which SIA and its subsidiaries, SilkAir and Scoot, target specific positioning (low cost to full service) and markets (regional to long haul). Particularly for SIA, it is committed to providing full service and long haul flights, strengthening its premium positioning with three key brand promises: service excellence, product leadership and network connectivity (___). Thus, it defines their competitive advantage and mission statement in its tagline: “A Great Way To Fly”. Comment by Cheiry Ng: annual report 2019/20 Firstly, SIA has long been known for its quality customer and service experience on board their flights (____). There’s an increased focus on personalisation and customisation of service, with the latest brand message: “making every journey personal” (____). SIA makes use of digital technologies to enrich customer experience, delivering consistently at every touchpoint. This includes revamping their mobile application to offer a more personalised experience, and expanding its KrisConnect Programme to introduce customised content (____). Additionally, the SIA brand is personified by the “Singapore Girl”, which encapsulates their service culture of in-flight hospitality and warmth featured by flight attendants in their iconic batik sarong kebaya uniform (____). Secondly, SIA is committed to the continuous enhancement of its product offerings, having pioneered many in-flight experiential and entertainment innovations. Moreover, the company maintains a young and modern aircraft fleet that are more fuel efficient and makes for significant cost savings, whilst ensuring safety and comfort for passengers (____). Lastly, SIA works towards extending their network reach and connectivity by serving more destinations and launching non-stop flights. Based on SIA’s brand positioning and values, their target audience includes middle to upper class leisure and corporate travellers who prefer reliability and comfort during air travels. These consumers have significant disposable income and are willing to pay premium pricing for quality customer and service experiences and other extra benefits. Comment by Cheiry Ng: https://mothership.sg/2019/12/sia-top-customer-experience-singapore/ Comment by Cheiry Ng: https://www.singaporeair.com/en_UK/us/flying-withus/our-story/making-every-journey-personal/ Comment by Cheiry Ng: annual report 2019/20Comment by Cheiry Ng: https://martinroll.com/resources/articles/strategy/singapore-airlines-an-excellent-asian-brand/ Comment by Cheiry Ng: https://www.silverkris.com/singapore-airlines-keeps-fleet-young/ The Marketing Mix: 6P’s (1.5 page 6 para) SIA is dedicated to providing air transportation services of the highest quality to its passengers before, during, and after the flight. In their product strategy, differentiation can be seen in the categorisation of their 5 cabin types: Suites, First Class, Business Class, Premium Economy Class and Economy Class. Between Suites, First Class, and Business Class, consumers are offered varying levels of luxury and privacy for enhanced comfort, such as the , and personal flight attendants . And other related services · Singapore airline is a service industry that does product differentiation from others through its 2 to 4 classes (Suite, First Class, Business and Economy classes) with its Krisflyer loyalty membership, in flight entertainment, fast check in and limousine services and lounge usage services. SIA prides itself as a premium brand that offers exceptional product and service quality, thus enriching the customer’s air travel experience. Resultantly, it utilised premium pricing strategy to price their ticket fares more competitively as compared to other full-service airlines. However, SIA also practices a cost leadership strategy, keeping their operating costs so low they are comparable to LCCs. Profits can be further increased as the company maintains its cost-effectiveness with high margins. This dual strategy is a unique differentiator of SIA, contributing to its year-on-year financial returns since its founding (until Covid-19). SIA is a leading global airline which flies to 66 international destinations (including seasonal destinations) in 32 countries on five continents from its primary hub in Singapore Changi Airport. It provides direct services to its customers through physical ticket purchases at the airport or online through their website. As abovementioned, SIA maintains the latest modern fleet which are able to increase the level of network connectivity by making non-stop long haul flights possible. The brand also sells its tickets though third party travel agents, both online and offline. Physical evidence of SIA’s brand · The brand emerged even strongly especially backed by strong endorsement and recognition from leading travel industries and magazines for it excellent service. This raises the service level expectations from its customers. · been named the best international airline in the world by Travel + Leisure’s World’s Best Awards consecutively for 25 years. · Business Traveller (Asia Pacific) 2019 Best Airline (28th consecutive year) The people in SIA are fundamental to their organisational service culture. · Singapore Girl icon · For example, the iconic Singapore Girl “sarong kebaya” had been created in 1968 __by French person using batik to signify cultural something something__. · People are ready to serve you at every step of the customer journey (book the cook, boarding, in flight or if you lost your luggage) Process: · Both male and female cabin and flight crew undergo a 15-week long training program, which is longer than most programs in the industry. · By going the extra mile to ensure that its employees will deliver excellent customer service, Singapore Airlines is able to maintain its status as one of the best airlines in the world. Promotional Strategy Analysis (2 pages) Multi-platform communications With advertising content on digital and press/print Advertising latest ad: “making every journey personal” Highlight carrier’s on board experience Feature the iconic “Singapore girl” and how “she” takes care of passengers regardless what they choose to do in flight Relaxing and calming music that highlights in flight experience of comfort and pleasure Clearly delivers the advertising objective that SIA is dedicated to personalisation and customisation in every step of the customer’s journey Use of emotions – happy faces of the satisfied passengers the “Singapore Girl” has helped Use of storytelling to enforce brand image of premium service and comfort References https://www.singaporeair.com/en_UK/us/flying-withus/our-story/awards/ https://www.straitstimes.com/business/companies-markets/singapore-airlines-records-first-annual-loss-in-48-year-history Appendices Analysis of Financial Report for FY2019/20 Current Ratio = Current Assets / Current Liabilities = 4288.9/10731.5