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Case study: Marketing strategy of Air Arabia

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  1. Introduction
  2. Competitor analysis
  3. The success of the launch of Air Arabia
  4. Target passengers
  5. Five forces analysis
  6. Market analysis
  7. Demand by region
  8. Marketing strategy
  9. Environmental analysis
    1. Improving environmental performance
    2. Relieving congestion and addressing resource requirements
  10. Situations in the Middle East
  11. Situations in the United Arab Emirates
  12. Internal analysis
  13. SWOT analysis
  14. PEST analysis
  15. References

When Air Arabia was launched a few years back, the main competitors in the airline industry in the region were Emirates Airlines, Etihad Airways and Gulf Air. Emirates Airlines had the biggest share in the market since it had already been established and was known for its high quality service. Gulf Air was the other competitor but since it wasn't an official airline of the United Arab Emirates it did not pose as many threats and Etihad Airways had just started operations.

There were two particular segments in the market which had been overlooked, one being the low budget airline and the other being the airlines targeted at the niche market. Air Arabia decided to target the former and came up with the strategy of ?Pay less. Fly more.? Air Arabia enabled customers to make the smart travel choice; those who have been unable to afford air travel in the past to start travelling throughout the region and those who do travel to do so more frequently, benefiting both business and leisure travellers. [2]

[...] The United Arab Emirates is one of the world's fastest growing tourist destinations, hence proving that there is a huge market for the airline industry to grow. Emirates Airlines also showed a keen interest in growing its fleet, and its buying of more high-end aircrafts also proved that they were not keen on targeting the low-budget traveller, but more towards the Economy, Business and First Class passengers. This does show a void in the industry for operating a budget airline in the region. [...]

[...] Marketing Strategy Price Low price is a key element of the brand. Uses differential pricing; off-peak travelling and booking in advance makes a ticket less expensive. Discounts for tickets booked online. Product Point-to-point air services Place/distribution Internet booking system Telephone reservation system. Promotion Highlights its advertising through its cheap fares Environmental Analysis Improving environmental performance To continue improving the environmental performance of air transport, airlines are focusing on more efficient operations with newer airplanes. At the same time, the industry is actively determining which of the possible future sources of fuel provide the lowest life-cycle CO2 emissions. [...]

[...] Better deals in terms of capture of airports or new routes for airlines operating for a longer period Market Analysis Air travel has evolved. More people from all walks of life have access to affordable, direct, and efficient air services. And the largest share of the 6.8 billion airline passengers worldwide now travels to, from, or within the Asia-Pacific region. The airline fleet has been revitalized. 80 percent of the airplanes in service have been delivered new since 2006. They have brought improved environmental performance, more comfort, more dependability, and lower costs. [...]

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