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CHAPTER 1

INTRODUCTION OF EMIRATES

COMPANY OVERVIEW

Emirates Airlines (also known as fly Emirates) are a major airline in the Middle East and a
subsidiary of The Emirates Group, which is wholly owned by the Government of Dubai’s
investment corporation of Dubai. It is the national Airline of Dubai. United Arab Emirates
operates over 3600 flights per week, from its hub at Dubai International Airport to 154
destinations in 81 countries across 6 continents. Emirates is the world’s second largest
airlines by scheduled revenue passenger-kilometres flown, the fourth largest in terms of
international passenger carried & the second largest in terms of freight tonne kilometres
flown. Emirates launched the longest nonstop commercial flight from Dubai to Auckland
(New Zealand) on 1st march 2016.

Source- wikipedia
EMIRATES PROFILE
HISTORY:-
ORIGINS: 1985-1992

EMIRATE BOEING 727-200 AT DUBAI INTERNATIONAL AIRPORT (1991 )

The milestones in Emirates’ incredible journey-


Emirates was formed on October 25 1985 when the Government of Dubai provided $10
Million in initial start up capital for the carrier via the Investment Corporation of Dubai. The
airline remains Government owned and has been self-financing since the initial investment.
Initially the airline operated just two aircraft, a Boeing 737-300 and an Airbus A300, both of
which were leased from Pakistan International Airlines. Later that year a Boeing 727-200 was
leased from the Dubai Air Wing to provide additional capacity. Emirates first route was from
Dubai to Karachi, followed by Mumbai and Delhi and 260,000 passengers were carried in the
first year. In 1986 further flights were added to Amman, Cairo, Colombo and Dhaka. In 1992
Emirates launched personal TVs at all seats with First Class passengers being provided with
individual video players. All aircraft in the fleet were so equipped by 1993. In 1998 Emirates
made its first and only foray into making investments in other airlines taking a 43.6% stake in
Sri Lankan Airlines for $70 Millions. Starting in 2003 Emirates launched its ICE
(Information Communication Entertainment) in flight entertainment system providing audio
and video on demand.

Source:- www.theeksource.com/emiratehistory.html
CURRENT PROFILE OF EMIRATES

Sheikh ahmedbin saeed almaktoum

THE EMIRATES GROUP


Type Government-owned corporation
Industry Aviation

Founded Dubai
Founder Sheikh ahmedbin saeed almaktoum
Headquarters Dubai international
Area served 61 countries

EMIRATES HEADQUARTERS
INTRODUCTION OF LUFTHANSA

COMPANY OVERVIEW

Lufthansa was founded in 1953 and commenced it operations from 1955.Lufthansa is the
largest German airline & when combined with its subsidiaries, also the largest airline in
Europe, both in terms of passengers carried and fleet size. It operates services to 18 domestic
destinations and 197 international destinations in 78 countries across Africa, the Americas,
Asia, and Europe, using a fleet of more than 270 aircraft. Lufthansa is one of the five
founding members of Star Alliance, the world's largest airline alliance, formed in 1997.
Lufthansa was a state-owned enterprise (and flag carrier) until 1994. In 2014, 60% of
Lufthansa's shares were held by institutional investors. The remaining 40% were held by
individual stock owners. Since 1970, Lufthansa has involved its employees in profit sharing,
giving them the opportunity to choose between cash and preference shares. When Lufthansa
was privatised, employees received more than 3% of its shares. Lufthansa's registered
office and corporate headquarters are in Cologne. The main operations base, called Lufthansa
Aviation Center (LAC), is at Lufthansa's primary hub at Frankfurt Airport. The majority of
Lufthansa's pilots, ground staff, and flight attendants are based there. Lufthansa's secondary
hub is Munich Airport.

Source:- https://en.wikipedia.org/wiki/Lufthansa
LUFTHANSA PROFILE

HISTORY:-

The history of Lufthansa can be traced back to 1926 when it started business in Berlin as
'Deutsche Luft Hansa Aktiengesellschet'. Its services were stopped during the Second World
War and were resumed in 1955. In 1958 Lufthansa ordered four Boeing 707s and started jet
flights from Frankfurt to New York City in March 1960 Now, with over 400 auxiliary bodies
around the world, Lufthansa operates in six areas, including passenger service, cargo service,
airplane maintenance, aviation food, tourism and IT services. In 1997, it announced the
founding of "Star Alliance" with United Airlines, Air Canada, SAS and Thai Airways
International. It also signed an agreement on co-operation with many international airlines
including United Airlines, Thai Airways, North-Euro Airline, Varig Brazilian Airlines and
South African airlines.

SOURCE:- www.lufthansagroup.com
CURRENT PROFILE OF LUFTHANSA

CHAIRMAN - CARSTEN SPHOR

THE LUFTHANSA GROUP


Founded 1953
Commenced operations 1955
Headquarters Cologne, Germany
Destinations 220
Company slogan Non Stop You
CHAPTER 2

RESEARCH METHODOLOGY
OBJECTIVE OF THE STUDY:

The primary objective of this project is to analyze the market strategies of Lufthansa and Emirates

The following are the secondary objective of study:

 To analyze the reach of Lufthansa and Emirates


 To identify the gaps in marketing strategies of Lufthansa and Emirates
 To suggest the ways for enhancement in market strategies for Lufthansa and Emirates

THE SCOPE OF THE RESEARCH:

Development of industries depends on several factors such as financial, technology, quality of the
services and social responsibility. Out of these, marketing aspects assume a significant role in
determining the growth of industries.

DATA SOURCES:

During preparation of project report many different kinds of Data are required which include both
Primary and Secondary Sources.

Primary Sources
Questionnaire- A sample questionnaire is provided to different people which is used to analyze and
understand the people perception regarding the companies. In this project primary source data has not
been used.

Secondary Sources
Journals- Various journals published by B-Schools also provide statistical data as well as theoretical
data which is very helpful.

Newspaper and Magazines- Economic Times as well as Magazines such as Business Today also
provided useful information on how the trend and demand of customers has changed over a period of
time with Airlines sectors.

Internet and Other Media Sources- WWW have the latest datas which help in determining the
scope of my project as well as make it as up to date as possible.
PROCEDURE:

1. Set the objective


2. Collect data through Secondary sources as mention above
3. Analyze the marketing strategies of both Airlines
4. Interpretation of Finding and Conclusion.

LIMITATION OF STUDY

 Time constraint
 Totally rely on Secondary source of Data
 Customers’ view point has not be taken into consideration
CHAPTER 3

MARKETING STRATEGIES OF
EMIRATES & LUFTHANSA
FOUR P’S OF EMIRATES AIRLINES

The marketing mix has the four P’s which include the Product ,Place, Price and Promotion.
PRODUCT
Product: Emirates offer various types of products to allure different set of customers and
their needs.

First class

Wide aisles and an airy, expansive environment mean more room for each passenger and
highly comfortable sleeper seats mean that each passenger should arrive at their destination
refreshed, even on long journeys.

An advanced hand-held controller lets passenger substantiate their experience, from adjusting
their seat to selecting a movie and seven course meals on long haul flights, a selection of fine
wines, and award winning in-flight entertainment add up to a stylish, refreshing flight.

Meanwhile, a multilingual cabin crew will make you feel at home, and are renowned for
providing thoughtful and discreet service throughout your time with Emirates.

Business class

The experience starts with prize winning service- Emirates cabin crew will see that each
passenger has everything they need throughout the flight. With laptop charging, SMS, phone
and email from their seat on all aircraft, they won't have to miss out on a second of work.

And when it's time to relax, sleeper seats and lie-flat seats on selected routes provide plenty
of room to spread out and get contented, and recline to a lie-flat position on many of Emirates
Aircraft.

Emirates Endeavour to provide all of the services and convenience to their customers that
they need to arrive refreshed and ready for the rest of their journey.
Economy class

Emirates Economy Class is designed to give more room, more comfort and better service, for
an all-round better flight. Thoughtfully designed cabins mean more space for each passenger.
Complimentary beverages and superb multi-course meals are provided, as well as personal
seatback monitors to enjoy Emirates outstanding in flight entertainment .Economy passengers
can stay in touch with SMS, phone and email at their seats, and of course, every passenger
will enjoy the same high standard of service from Emirates multi-lingual crew that is offered
in all cabins.

Skywards

Skywards offers three tiers of membership: A Blue, A Silver, and A Gold. When passenger
joins the programme they start at the Blue tier. The more, they fly with Emirates, the more
tier miles you can earn, bringing you closer to the next tier. When they reach Skywards Silver
or Gold, they'll enjoy additional privileges and benefits that are reserved for the most frequent
travellers of Emirates.
PLACE

Emirates airlines manage all its operations from the Dubai airport and operate an estimated
3,500 flights on a weekly basis. Its global network is spread through six continents, seventy-
eight countries and one hundred and forty two cities. The company has the unusual
distinction of operating non-stop commercial flights via the longest routes of Dubai to
Houston, Dallas, San Francisco and Los Angeles. In order to occupy the position of global
transporter the airlines has used its strategic hub locations to maximum benefits. The position
of Dubai is such that it paves the way for strategic routes linking east and west resulting in
direct flights. Emirate airlines have also introduced many new flight routes that are short and
have proved to be advantageous for both the company and the passengers. Besides, the
physical distribution shops, Emirates Airline has also an online website presented in about
nine languages in order to reach all its target segments from different nationalities. Through
the website, customers can book their flights, check the latest offers and book an
accommodation in a hotel during his travel.The main distribution channel is through their
official website "emirates.com". All the services are accessible, even for booking in its
website. They also provide their services through agents and call centres. Emirates Airlines
introduces many new routes to the existing ones. With the provision of various travel offers
travelling through Emirates is of comfort and cost saving process and also the airlines provide
nonstop flights to various destinations around the world and many new to put on the list.

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PRICE

As Dubai is the major link between east and west, the company has been able to serve low
cost tickets to its customers in comparison with the other airlines. The Company has taken the
help of shortest available routes and offered its customers direct flights to many destinations
and that too at very reasonable rates. Due to its direct flights, it has been able to maintain an
effective pricing policy, as the customers are able to save due to undue stopovers.
As Emirates has been able to hire low cost labour, it has automatically been able to cut the
costing on its fares. This low cost pricing strategy provides them with a strong advantage
over their competitors in certain routes and helps in generating revenues because of the
volume of passengers. Emirates have also adopted the strategy of dynamic pricing. This helps
in the management of seat capacity on every airplane in order to get the highest available
price for every seat. This results in flexible prices of the seats.
The pricing policy of the company is diversified to suit and cater to the needs of different
sections of the society. It also uses the premium pricing policy for its distinguished customers
who demand exclusive, luxurious and high-class services. The luxury class of Emirates is
world renowned and only the elite classes are able to travel from this class.

Source- http://www.marketing91.com/marketing-mix-of-emirates-airlines/
PROMOTION

Emirates airlines have launched a promotional campaign for its airlines that is of a very
competitive nature. Its slogan is very apt in nature “Fly Emirates. Keep Discovering”. The
vision of the company is on building and maintaining its position of global leaders in the
aviation industry and for this, they have taken calculated risks without hampering their
excellent and above par services.
Emirate airlines believe in offering special discounts on airfares at off seasons to garner more
passengers thereby using below the like marketing tactics as well. They have adopted both
traditional and ultra-modern marketing strategies to attract different sections of customers. In
order to reach a diverse segment of customers advertisements have been placed in magazines,
newspapers, billboards, radios, television and their website is in at least nine languages. They
have also sponsored various events and programs like 2011 and 2015 ICC cricket world cup.
They are also the official sponsors of the football club Arsenal.
The company also launched a special but limited package for the kids as part of their
promotional activities. Under this scheme, the parents were allowed to travel with two under
sixteen aged children. The tickets, meal and accommodation of the children were free of cost
when two paying adults accompanied them. This campaign called “The Kids Go Free”
proved to be very successful in attracting customers from different parts of the world to the
city of Dubai. The Emirate airlines received special privileges and co-operation from tourism
companies and families started using this airline at regular intervals.
The Emirates Airline foundation is committed in providing aid to deserving countries at
difficult times. It is a non-profit entity that delivers charitable aids during natural disasters
and tragedies regardless of religious, geographical or political boundaries.

Source- http://www.marketing91.com/marketing-mix-of-emirates-airlines/
THE FOUR C’S EVALUATION

convinience
cost

communication
Emirates consumer

Airlines

The Emirates Airlines is a perfect mix of all the 7 C’s of marketing. Keep these four C’s as
the major factors affecting the decision making process? Overall these factors can be seen
as contributing to Emirates’ phenomenal growth, but this success seems unlikely without a
strong and stable leadership. The key to the Emirates success has been the continuity of its
management team. At the helm of the company can be found a group of talented
executives with proven track records in their fields of expertise.
Sheikh Ahmed Bin Saeed Al-Maktoum, Chairman and Chief Executive of Emirates Airline,
is also one of the leaders of Dubai’s wider transformation. Under his leadership, Emirates has
grown from a regional airline with just two leased aircraft and three destinations, to an
acclaimed international airline with a fleet of more than 100 aircraft and as many destinations
across six continents, and fastest-growing intercontinental carrier.
THE STP STRATEGY OF
EMIRATES
SEGMENTATION

 Emirates segments its market into two major categories, the profitable (business
travellers) and the unprofitable one. These can be further divided on the basis of
the average length of trip, the frequency of the trips and the brand loyal customers
 Business class passengers are the most profitable to Emirates and are willing to pay
for their luxurious services as price is relatively inelastic for them. Emirates offers
these travellers great WIFI services and more room to work and hence they prefer
nonstop trips.
 Emirates loses out where the economy class travellers are connected as they are
very price elastic and prefer to choose low cost carriers.
TARGETING

 Emirates adopts low cost pricing strategy provides them with a strong advantage over
their competitors in certain routes and helps in generating revenues because of the
volume of passengers.

 Emirates caters to high ranking executives and businessmen belonging to the age
group of 30-60 who are looking for luxury and comfort in travel.
 Children are everybody’s business. The Emirates Airlines target the kids markets
which are of many benefits to the firm. The Emirates Airlines launched the “KIDS GO
FREE” campaign. According to this campaign parents can take two under 16 kids
along with them. Hence the kids enjoy free flights on Emirates, meal, accommodation,
travel through the Dubai metro, airport transfers and various attractions along with two
paying adults. It only increases the profits for the Airlines but also saves a lot of money

for the families.


POSITIONING

A new brand platform, led by a global multimedia marketing campaign carrying a “Hello
Tomorrow” aims to position the airline as the “enabler of global connectivity and
meaningful experiences”. The campaign continues Emirates’ evolution from a travel brand to
a global lifestyle brand and will include an increased amount of digital activity in a bid to
engage with a younger audience. Emirate says its new target audience are individuals who
are well-travelled, or have ambitions to become well-travelled, and who also embrace the
opportunity to try the unfamiliar. Emirates also hopes the “Hello Tomorrow” positioning
will spark a “global movement”, encouraging people from different communities to join
together and make a positive impact on society, rather than just purely serving as a series of
advertisements for the brand.

Source- https://www.marketingweek.com/2012/03/27/emirates-introduces-new-brand-positioning/
FOUR P’S OF LUFTHANSA AIRLINES

The marketing mix has the four P’s which include the Product, Place, Price and Promotion.
PRODUCT
Product: Lufthansa offers various types of products to allure different set of customers and
their needs.

First Class
First class is offered on most long-haul aircraft (Airbus A330-300, A340-300, A340-600,
the front part of the upper deck of all Airbus A380s, and the main deck nose section of all
Boeing 747–8s). Each seat converts to a 2 metres (6 ft 7 in) bed, includes laptop power
outlets, as well as entertainment facilities. Meals are available on demand. Lufthansa
offers dedicated First Class check-in counters at most airports, and offers dedicated First
Class lounges in Frankfurt and Munich, as well as a dedicated first class terminal in
Frankfurt. Arriving passengers have the option of using Lufthansa's First Class arrival
facilities, as well as the new Welcome Lounge. Lufthansa has introduced a new First Class
product aboard the Airbus A380 and plans to gradually introduce it on all of its long-haul
aircraft. With the new programme SCORE, introduced to boost profits by 1.5 billion
Euros over the following years, LH will stop route expansion and extensively decrease its
First Class offerings on most routes.

Source- https://en.wikipedia.org/wiki/Lufthansa
Business Class

Business Class is offered on all long-haul aircraft. Newer seats convert to 2 metres (6 ft
7 in) lie-flat beds and include laptop power outlets and entertainment facilities. Lufthansa
offers dedicated Business Class check-in counters at all airports, as well as dedicated
Business Class lounges at most airports, or contract lounges at other airports, as well as the
Lufthansa Welcome Lounge upon arrival in Frankfurt. Business Class on all Boeing 747-
8s features fully flat bed seats, and a larger seat-back entertainment screen. The new seats
are gradually being rolled out across the rest of the Airbus A330, A340, A380 and Boeing
747-400 fleet.

Economy Class

Lufthansa's long-haul Economy Class is offered on all long-haul aircraft. All have a 31-inch
(790 mm) seat pitch except the Airbus A380s, which have a 33-inch (840 mm) seat pitch.
Passengers receive meals, as well as free drinks. Moreover, the whole fleet offers Audio-
Video-On-Demand (AVOD) screens in Economy Class.
PLACE

Lufthansa's registered office and corporate headquarters are in Cologne. The main operations
base, called Lufthansa Aviation Center (LAC), is at Lufthansa's primary hub at Frankfurt
Airport. The majority of Lufthansa's pilots, ground staff, and flight attendants are based
there. Lufthansa's secondary hub is Munich Airport. It operates services to 18 domestic
destinations and 197 international destinations in 78 countries across Africa, the Americas,
Asia, and Europe, using a fleet of more than 270 aircraft. Lufthansa is one of the five
founding members of Star Alliance, the world's largest airline alliance, formed in 1997.
Besides its own passenger airlines Austrian Airlines, Swiss International Air Lines,
and Eurowings including Germanwings(referred to in English by Lufthansa as its Passenger
Airline Group), Deutsche Lufthansa AG owns several aviation-related companies such
as Lufthansa Technik as part of the Lufthansa Group. Combined with its subsidiaries, the
group has over 615 aircrafts, making it one of the largest passenger airline fleets in the
world. In 2014, the group carried over 106 million passengers. Lufthansa airlines have also
introduced many new flight routes that are short and have proved to be advantageous for both
the company and the passengers. Besides, the physical distribution shops, Lufthansa Airline
has also an online website page for making a ticket presented in all major languages of the
world in order to reach all its target segments from different nationalities. Through the
website, customers can book their flights, check the latest offers and book an accommodation
in a hotel during his travel.The main distribution channel is through their official website
"http://www.lufthansa.com/.com". All the services are accessible, even for booking in its
website. They also provide their services through travel agents. Lufthansa Airlines introduces
many new routes to the existing ones. With the provision of various travel offers travelling
through Lufthansa is of comfort and cost saving process and also the airlines provide nonstop
flights to various destinations around the world and many new to put on the list.
PRICE
Airlines like Emirates, Qatar Airways and Etihad are flooding the market with cheap
economy class tickets, making it hard for Germany-based Lufthansa to compete, as it has
higher costs than its competitors.
Lufthansa was forced to give up some of its routes, to and from Abu Dhabi for instance,
because of its competitors' dominance in the region. The airline is set to rebrand Eurowings
as a long-haul low-cost carrier, with up to seven Airbus A330-200 jets, operated out of the
western German town of Cologne. The airline will mainly serve tourist destinations, such as
Florida, the Indian Ocean and southern Africa. Lufthansa has also adopted the strategy of
dynamic pricing. This helps in the management of seat capacity on every airplane in order to
get the highest available price for every seat. This results in flexible prices of the seats.
The pricing policy of the company is diversified to suit and cater to the needs of different
sections of the society. It also uses the premium pricing policy for its distinguished customers
who demand exclusive, luxurious and high-class services. The luxury class of Lufthansa is
world renowned and only the elite classes are able to travel from this class.
PROMOTION
Lufthansa uses various platforms to promote it. Lufthansa currently has 2.2m Facebook fans
and updates its page on an almost daily basis. The social team posts a decent variety of
contents, including competitions, images of planes, its adverts and individual’s personal
experiences and their special moments with Lufthansa. Lufthansa has 300k followers at
twitter which is used heavily for the promotion purposes. . In order to reach a diverse
segment of customers advertisements have been placed in magazines, newspapers, billboards,
radios, television and their website

Lufthansa also organises various competitions online and at social networking sites to engage
with them. One of the Facebook campaign it ran in partnership with Nivea that aimed to
highlight romantic and amusing long-distance love stories. People had to upload their story
plus a photo to Lufthansa’s Facebook page to automatically receive a promotion code for
their next flight. Lufthansa is one of the few brands that also uses Facebook as a customer
service tool. It’s a great example of a company using social networking sites as a two-way
communication tool, rather than just broadcasting messages then ignoring any responses.

Source- https://econsultancy.com/blog/62922-how-lufthansa-uses-facebook-twitter-pinterest-and-google/
Lufthansa Spread Campaign across Social Media with ‘Selfie Ad Unit’. Lufthansa partnered
with Celtra to create the Selfie Ad Unit. The mobile ad unit presents images of destinations
such as Italy, France or Germany. The viewer is then encouraged to make a postcard by
taking a selfie of themselves which becomes part of the ad unit. People can transport
themselves into their dream vacation as if they were really there and then share their dream
vacation with friends on Twitter or Facebook, thus extending the campaign for Lufthansa.

It also organises various online competitions for their promotions. Attractive prizes are kept
to attract for garner the maximum number of people.
Food trucks are a hot phenomenon these days, evolving from chip stands into quality
gourmet food on the go. As experiencing the products and services offered onboard has
become an effective marketing tool for airlines to engage savvy consumers, a handful of
airlines have capitalized on the food truck trend for marketing purposes. Lufthansa and its
in-flight catering division LSG Sky Chefs introduced menus in Business and first on
outbound US flights. With the onboard recipes, saying that the airline aims to offer a
‘Taste of America’ by featuring local culinary traditions and ingredients from across the
United States. For this they advertised it in the various cities of the USA in the name of
Taste of America.

Lufthansa promotional philosophy is based on these mantras.

source- http://www.airlinetrends.com/2014/10/04/airlines-let-food-trucks-do-the-promotion/
THE STP STRATEGY OF
LUFTHANSA
SEGMENTATION

Market segmentation can be defined as “the process of disaggregating the total market for a
given product into a number of sub- markets”. In simple terms, segmentation is dividing
population into groups according to certain characteristics. Segment marketing is the most
popular type of marketing used by many airline companies including Lufthansa.
Segmentation bases can be divided into the following four categories geographic,
demographic, psychographic and behavioural. These are broad bases of segmentation and
each of these bases can be divided into more categories. Specific factors to be taken into
account in segmentation include viability, accessibility, and measurability of segments. Some
management thinkers stressed the role of preference segments when conducting market
segmentation and divide preferences into three groups: homogeneous, diffused and
clustered. Homogeneous preferences relate to instances where there are no or little
differences in customer preferences. Diffused preferences, on the other hand, is associated
with a high level of variety in consumer preferences. Lastly, clustered preferences involve
the formation of preference clusters according to specific segments. According to above
classification, preferences of airline companies such as Lufthansa can be classified as
clustered. In other words, Lufthansa services are offered to cluster of individuals within
population according to their common needs and characteristics.
TARGETING

 Lufthansa caters to high ranking executives and businessmen belonging to the age
group of 30-60 who are looking for luxury and comfort in travel. It serves all
customers regardless of nationality.
 Lufthansa follows different-segment concentration marketing strategy by offering
four different service packages to different customer segments. Specifically,
Lufthansa targets different customer segments by its four levels of services: economy,
premium economy, executive and first class.
 The airline is set to rebrand Eurowings as a long-haul low-cost carrier to compete
Airlines like Emirates, Qatar Airways and Etihad with up to seven Airbus A330-200
jets, operated out of the western German town of Cologne. The airline will mainly
serve tourist destinations, such as Florida, the Indian Ocean and southern Africa.
POSITIONING

A new brand platform, led by a global multimedia marketing campaign carrying a “Nonstop
you” aims to position the Lufthansa airline as the “enabler of global connectivity and
meaningful experiences. “Nonstop you” - aptly sums up the airline's pledge to its customers.
It describes Lufthansa's recognised leading role in the business travel segment, which is
underpinned by a dense route network, comfortable lounges, personalised services and
numerous innovations. The new campaign also targets leisure travellers more directly than
before. The focus throughout is on the passengers and their wishes, experiences and dreams
that are linked with flying Lufthansa. The new campaign aims to bring the Lufthansa brand to
cherish the life of all their target groups.
CHAPTER 4

FINDINGS AND ANALYSIS


SWOT ANALYSIS

SWOT OF EMIRATES:

Strengths

 The fourth-largest in terms of international passengers carried and the second-


largest in terms of freight tonne kilometres flown
 Strong support of Dubai Government
 Customer loyalty and strong corporate culture
 Focus on diversified market
 effectively managing the needs of their target audience
 Continuous improvement in their services
 Its global network is spread through six continents, seventy-eight countries and one
hundred and forty two cities

Weaknesses

 No Global International Alliance


 Intense competition makes the market growth limited
 Not all of diversification and approach have been successful and this can be
considered as one of the flaws or weaknesses of the company
 Cater the services at few places in the United States of America.
Opportunities

 penetrate new growth markets


 More International destinations can be covered
 Providing a brand new fleet leverage that can improve the customer’s confidence in
the Airline
 Innovation in services
 Tie-ups

Threats

 Rival companies are major threats – Gulf Air, Etihad.


 Increasing in fuel Prices
 Low cost carriers - Air Arabia, Jazeera Airways
 Fierce competitions in the Middle East Region
 Change in the Government Policies and Regulations
SWOT OF LUFTHANSA

Strengths

 The Lufthansa group contains some strong brands


 Lufthansa has good multiple passenger brand positioning
 Lufthansa includes world-leading aviation services
 Lufthansa's balance sheet is strong
 The Lufthansa group has multiple hubs in the heart of Europe
 Lufthansa is the leading airline group for European coverage
 Lufthansa is the leading airline group between Europe and Asia Pacific.
 Joint ventures/alliances cover a large proportion of Lufthansa's network capacity

Weakness

 Lufthansa has a high cost base


 Lufthansa's industrial relations are strained
 Lufthansa was slow to respond to the LCC (Low cost carriers) competitive threat
 Lufthansa's preoccupation with selective protectionism perpetuates a negative culture

Opportunities

 Lufthansa's new lower cost platforms provide options for growth


 Lufthansa's cultural change is slow, but offers potential
 Greater Lufthansa group integration would provide greater efficiencies
Threats

 LCC (Low cost carriers) competition remains


 Gulf competition is here to stay
 Threat of strikes and disagreement with the labor union
 Fall in the air traffic due to recession plus severe market slump in Europe
 The deregulations of many airlines triggered intensive price competition
CHAPTER 5

CONCLUSIONS
CONCLUSIONS

Appropriate market Strategies, effective targeting and attractive positioning are critical
success factors for any business because no product and service can be equally valued by all
members of diverse customers population due to the differences amongst customers in many
levels. Lufthansa and Emirates offer various types of products to allure different set of
customers and their needs like First class, economy class, Business class etc. Both operate
more than 140 international destinations in 78 countries. The pricing policy of the both
companies is diversified to suit and cater the needs of different sections of the society. Both
Airlines also use the premium pricing policy for its distinguished customers who demand
exclusive, luxurious and high-class services. Lufthansa and Emirates use various platforms to
promote it. In order to reach a diverse segment of customers; advertisements have been
placed in magazines, newspapers, billboards, radios, television and their website. For
bolstering their positioning in the global Airlines market , both use a global multimedia
marketing campaign carrying a “Nonstop you by Lufthansa” and “ Hello Tomorrow by
Emirates” aim to position the airlines as the “enabler of global connectivity and meaningful
experiences. Both has the opportunities to penetrate new growth markets , to cover more
international destinations, to provide a brand new fleet leverage that can improve the
customer’s confidence in the Airline and innovation in services.
CHAPTER 6

SUGGESTIONS
SUGGESTIONS

For the better effective and efficient functioning and the growth of both Airlines, few
suggestions are being proved by me.

 To penetrate new growth markets


 To cover More International destinations
 To provide a brand new fleet leverage that can improve the customer’s confidence in
the Airlines.
 To bring in innovation in services on a continuous basis
 To adopt Appropriate market Strategies, effective targeting and attractive positioning.
 To take care the customer complaints and suggestion at the highest priority
 To diversify the pricing policy to suit and cater the needs of different sections of the
probable customers
 To add more and more new customers by adding lucrative and enticing offers and
services

 To reduce their high cost base especially of Lufthansa


 To maintain good relations with their employees
BIBLIOGRAPHY

BOOKS

 Kothari, C.R. Research Methodology, 3rd edition, 1997, Vikas Publishing House Pvt.
Ltd., New Delhi.

 Kotler, Philip Marketing Management, 13th edition, 2009, Dorling Kindersley (India)
Pvt. Ltd., South Asia.

 Varshney & Gupta; Marketing Management, Sultan Chand & Sons.

WEBSITES

 www.theeksource.com/emiratehistory.html
 https://en.wikipedia.org/wiki/Lufthansa
 www.lufthansagroup.com

 https://econsultancy.com/blog/62922-how-lufthansa-uses-facebook-twitter-pinterest-
and-google/
 http://www.airlinetrends.com/2014/10/04/airlines-let-food-trucks-do-the-promotion/