Table of contents

Page

Introduction and background of the study 1

Problem statement 2

Research questions 2-3

Research objectives 3

Organisation/ Structure of the study 3

ZIMBABWE INSTITUTE OF MANAGEMENT

PROJECT PROPOSAL

AN ANALYSIS OF EMBRACING 7 Ps OF THE MARKETING MIX AS A

STRATEGY FOR ORGANISATIONAL TRANSFORMATON: A CASE STUDY
OF AIR ZIMBABWE

SUBMITTED BY MADELLINE CHAWONZA

ID NO R160145Z

COURSE EXECUTIVE DIPLOMA IN BUSINESS

LEADERSHIP

SUPERVISOR
1.0 CHAPTER 1:INTRODUCTION AND BACKGROUND OF STUDY
This projects purpose explores how 7 Ps of the marketing mix can be embraced by Air
Zimbabwe as a strategy for organisational transformation.

Air Zimbabwe is the national carrier for Zimbabwe and it started operating in
1980.The national airline had built a strong clientele base with the airline operating
as a monopoly on all domestic routes. All this changed when the airline got
grounded in December 2011 due to financial constraints. With the injection of funds
from the government the airline managed to resume operations in May 2012 starting
with domestic routes. The national carrier later introduced regional flights to
Johannesburg, Lusaka and Dar-es-salaam.

It has become a big challenge for the airline to regain client confidence and loyalty
especially after the 2012 grounding record. The marketing department at Air
Zimbabwe has a critical role to play for the airline to regain client confidence and
loyaltyas the airline is not being effectively marketed. Budget airlines such as Fastjet
and Rainbow Air are coming in with favourable air fares plying the same routes as
Air Zimbabwe and there is a noticeable client migration to these new operators.

Flight cancellations and delays are also contributing to the migration. The airlines fleet
has been grounded due to lack of spare parts and the national carrier has been
resorting to hiring an aircraft from Star Air to operate on some of its routes. Air
Zimbabwe uses a reservations and ticketing system called Worldspan which is
owned by an American company. Due to financial constraints the airline has been
failing to pay Worldspan for its services resulting in Worldspan temporarily
disconnecting the airlines systems. This has been causing long queues in its sales
offices.

1.1 PROBLEM STATEMENT

Air Zimbabwe is facing a problem of client migration to other airlines which is

affecting the airlines sales volumes. Research has proved that the airlines sales for
2017 have gone down compared to the previous year as shown by the sales figures
for period January 2016 to May 2016 compared to the same period this year.

SALES January to May 2016 USD2 214 298.00

 SALES January to May 2017 USD1 669 028.00

Difference USD545 270.00

Source: Air Zimbabwe Town Office sales reports 2016 and 2017

The above sales figures show a negative variance of - 24.62 percent indicating that sales
in 2016 were higher than sales for the same period in 2017.

If this problem is not addressed the airline will continue to operate with poor loads,
burning fuel and meeting other hidden costs without realising any profits. The non-
existence of profits or poor profits will lead to the national carrier retrenching, hence
affecting its employees. Client migration is also tarnishing the image of the airline as
most Zimbabweans now prefer to fly on other airlines.

1.2 RESEARCH OBJECTIVES

To identify strategies on how to improve the airlines services.

To differentiate Air Zimbabwes service through the identification of the airlines Unique
Selling Proposition.
To evaluate the airlines pricing strategies.
To improve customer accessibility to Air Zimbabwes services.
To improve brand recognition and awareness.
To improve Air Zimbabwes processes and systems.

1.3 RESEARCH QUESTIONS

How can the airline improve its service to match international or competitor standards?
What is the airlines unique selling proposition?
Is the airline using the correct pricing strategy?
Is the service being offered by Air Zimbabwe accessible online and through sales
offices?
How can the airline improve service awareness and sales?
Are the airlines internal processes and systems a contributing factor to poor sales and
client migration?

Does the airline have pending Human Resources issues with employees which can affect
their performance?
1.4 JUSTIFICATION OF STUDY
Many big companies have closed shop and others have relocated their head offices and
production units to neighbouring countries especially south Africa. It is against this
background that SMES have been acknowledged as an important sector poised to
meaningfully and positively contribute to economic growth and development in
Zimbabwe.

SMEs in Zimbabwe just like in many developing countries have faced viability
challenges mainly due to poor access to financial resources, insufficient managerial
skills, lack of trained personnel, and low utilisation of new and current technologies.

It is against this backdrop that an appropriate strategic financing source has to be adopted
to address financial and value-added challenges which have been bedevilling and
inhibiting the sector from meaningfully transforming and contributing to economic
growth.

2.0 CHAPTER 2: LITERATURE REVIEW

The literature of organisational failure has polarised between the deterministic and

voluntaristic perspective. The deterministic perspective contends that managers are

limited by exogenous industrial and environmental constraints, over which they have

little or no control. This line of research sees failure as an inevitable consequence of the

process of natural selection where those firms that do not fit in their environment are

selected out and die. The main purpose here is that external factors such as

technological change, deregulation and liberalisation enable more efficient firms to drive

out their less efficient competitors. (Amoah and Debrah 2014)

The other school of thought the voluntaristic perspective suggests that managers actions,

inactions and perspective are the fundamental causes of failure. The argument is rooted

in the assertion that organisations through the actions of management can shape their

own destiny and avoid failure. (Amoah and Debrah 2014)

According to Amoah and Debrah (2014) although both theoretical and empirical research

reflected a clear divide between the two perspectives, some scholars have suggested that

organisational failure is a reflection of both the deterministic and voluntaristic

perspectives. The proponent view failure as a continuum of events, actions and inactions

which transmit through distinct phases leading to ultimate collapse.

The migration of clients from Air Zimbabwe to other airlines can be avoided by building

customer loyalty through the use of the 7 Ps of the marketing mix. According to Oliver,

1999; Kotler and Keller, 2012, loyalty is a promise that customers will repeat purchase

when satisfied, either tangible or intangible goods again in the future, although the

customers interest might be aroused by other sellers efforts and persuasiveness that may

be able to change their behaviour.

Marketing services in a changing world requires focusing on increasing the customer

satisfaction and rejecting old product paradigms and marketing fallacies. (Beckwith

2001).

According to Constantinides (2006) Boom and Keller recognized the special character of

services as products, they demonstrated the importance of Environmental factors

(Physical Evidence) influencing the quality perception. They included the Participants

(personnel and customers) as the additional marketing mix factors.Services marketing

can be compared to a theatrical production. How the service is performed is as important

as what is performed. Critical factor is therefore the customer experience. Groove et al

(2000).

The use of the 7 Ps of the marketing mix in the airline industry which is the service

industry places huge emphasis on Physical Evidence, People and Process.

According to Booms and Bitner 1981; Cowell 1984; Heuvel 1993; Melewar and

Saunders 2000; Groove et al 2000 a key factor distinguishing the services marketing

from marketing of physical products is the human element, often included as a new

parameter in the services marketing mix.

The human factor underlines the personal nature of the services marketing, service

providers play a double role in the marketing process as service delivery factors: the

personnel is a powerful element tool of customer persuasion and a major parameter

affecting the customers perception on the delivered service quality. Constantinides

(2006).

CHAPTER 3:METHODOLOGY

Population
Interviewing, administering questionnaire and observing people and phenomena are the
three main data collection methods in survey research (Mouton 2001). Personally
administered questionnaires will be conducted. These will target key stakeholders and
key informants such as the travel agents, tour operators, hotels and National Handling
Services.
Documentary Review
Various research materials, books, journals and case studies will be consulted to explore
the role venture capital can play in in financing and transforming the SMEs sector.

Research Design

Sampling Techniques
According to Sekaran (2003), there are two major types of sampling designs: probability
and non-probability sampling. Probability sampling is a technique in which every unit in
the population has chance of being selected in the sample whilst Non-probability
sampling is a technique in which some units of the population have zero chance of
selection or the probability selection cannot be determined (Sephooko & Motelle, 2015)

For the purposes of this research study, non-probability sampling technique as it is

deemed ideal for this research study and will target specific groups and key
stakeholders/informants, the following non-probability sampling techniques will be
applied.

Convenience Sampling
Information will be collected from members of the population who are conveniently
available to provide such as travel agents. tour operators, National Handling Services and
Ministry of Transport and other stakeholders in the airline industry.

4.0 ORGANISATION / STRUCTURE OF THE STUDY

The research proposal will be structured as highlighted below.

Chapter 1 : Introduction
Chapter 2 : Literature review
Chapter 3 : Methodology
Chapter 4 : Data analysis
Chapter 5 : Conclusion
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Jeppsson, H. (2016). Biotech Venture Capital Investments in Public Equities and
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Kotler, P., & Keller, L. K. (2012) Marketing management. London: Pearson Education
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Oliver, R. L. (1999). Whence consumer loyalty? Journal of Marketing, 63(special issue),

33-44.

Booms, B.H and Bitner, M.J.(1981), Marketing Strategies And Organisational Structures
for Service Firms.

Constantinides, E. (2006), The Marketing Mix Revisited: Towards the 21st Century
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Grove, S.J., Fisk, R.P and John, J. (2000), Service as Theater, Guideline and
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Heuvel, J. (1993), Diensten Marketing (Services Marketing), Wolters-Noordhoff

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