Report for senior

management course

Project Report on
Developing Marketing Strategies of Biman in the
Competitive Market Environment

Submitted to
Principal
Bangladesh Biman Training Center (BATC)

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Prepared by:-

1. Mr.SajalKanti Barua
Asstt. Manager Commercial

2.Mr Anayet Hossain Sarker

Asstt. Manager Commercial

3. Mr. Siddiqur Rahman

Asstt. Manager Accounts

4. Mr Shamsul Hoque
Asstt Manager Accounts

5. Mr Shafiuddin Ahmed
Commercial Officer

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Preference

We express thanks to the management of Biman Bangladesh airlines training

center for conducting the senior management course M-3 for building-up the
skill of manager level.

We express our gratitude to Dr.Partha Kumar Pandit, Principal BATC for selecting
Developing Marketing Strategies of Biman in the Competitive Market
Environment as our topic which is very burning issue for Biman.We thanks to Mr
Mohiuddin Ahmed, DGM training and Mrs Sabina Sharmin, Manager
Management development and all instructor of BATC and the guest speakers to
sharing their knowledge.

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ABSTRACT
Our main aim and effort is to identify shortfall in present marketing strategy and
some recommendation to overcome prevailing situation to achieve market
share. Digitally assess the competitor’s positions and comparison and analysis
our position and reassess the gap between competitors marketing strategy may
formulate marketing strategy rising business though challenges remain.

This report has been prepared in terms of organizational current historical

performances in traffic carriages, Market share analysis, customer expectation,
reliability issues to find out possible barriers and present Market Strategy and
Competitors activities switching cost low to Customers and some
recommendations being taken to improve Market Share of Biman.
This reports explore and suggested Biman to adopt dominantly Market
Challenger strategies as well as market follower strategies to some extent.

Due to unstable fare offers and many more other attractive options from other
Legacy foreign Carriers and local carriers as well as low cost carriers (LCC), Biman
is facing realistic market competition. Now days Biman is struggling its existence
in terms of operating loss incurring to a lowest figure rather than profit
expectation. Biman Bangladesh Airlines is also in surviving, tending to reducing
overhead cost retaining the objectives of Customer Services and continuing
sustainable profit margin.

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Table of Contents

SL NO. Contents PAGE NO

01 Chapter-1:Introduction
02 Chapter-2: Methodology
03 Chapter-3:Marketing mix in Biman perspective
04 Chapter-4:Porter’s five forces in Biman perspective
05 Chapter-5:SWOT Analysis in Biman perspective
06 Chapter-6: Existing Strategy and marketing of Biman
07 Chapter-7:Market Share
08 Chapter-08:Findings
09 Chapter-09:Designing proposed marketing strategy
10 Chapter-10: Recommendations
11 Chapter-11:Conclusion
12 Chapter-12: References.

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Chapter-1
Introduction:-
1.1 Background:-
Our pride, our motherly organization Biman Bangladesh Airlines Ltd came into
its existence on 04th of January, 1972 immediate after independent of
Bangladesh. This Airline established through a Presidential Order 126 as Air
Bangladesh International. Subsequently it became as a Corporation in the year
1977 through an Ordinance vide No XIX of 1977. Later in 2007 Biman converted
to a Public Limited Company (PLC) and renamed as Biman Bangladesh Airlines
Ltd with 100% share owned by the Government of Bangladesh that means last
45 years Biman runs in a Change and run conditions where a fixed Vision,
Mission and Objectives is absent due to Change Management.
More than 09 million passengers travelled last year to/from Bangladesh where
Biman has only 25% market share by carrying 2.3 million passengers and 22%
market share by carrying 33555 tons of cargo as per Biman annual report. It is
2% less than consecutive year. Up to early 90s Biman was the major market
share (61%) operator in Bangladesh Market. There was no local Private Airlines,
no LCC carrier’s presence in this market except some Legacy Carriers of foreign
operators like, Thai Airways, Singapore Airlines, Air India, British Airways so far.
So, Biman was running with 80% market share on and average.

1.2: Purpose:-
The Aviation Industry is highly competitive and Capital intensive. Bangladesh
Government liberalization of aviation rules and regulations under OPEN SKY

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policy, Market has been saturated by giant Airlines Industry. The competition
becomes dire intense due to entry of Low Cost Carrier (LCC) and local airlines.

After formulation of Open Sky Policy Regulation by the Government of

Bangladesh the numbers of Foreign Carriers operation to and from Bangladesh
increased dramatically and now altogether about 30 Foreign Carriers operating
its flight from Dhaka and 02 (Two) Foreign Carriers and 03(Three) Local Private
Carriers flights from Chittagong Airport which are really dominating in the
Aviation Market of Bangladesh.

At this Biman drastically lost dominant position in the market. This happened
due to many factors mainly lack proper marketing strategy, aircraft constraint,
limitations of logistic support, lack of reliability, government whimsically
interference over Biman Management. Now Biman’s capacity has increased by
brand new aircraft so the time has come to bounce back to regain its market
leadership position. To return back to this position Biman needs suitable
strategic marketing plan. Our purpose of this study is to find a market strategy in
this competitive market environment.

1.3:-limitations:-
We were unable to manage sufficient data relating to the cost of route analysis;
our suggestions are on the basis of empirical studies. We have very limited times
to complete the project making quantitative analysis with financial data like
yield management.

CHAPTER-2

RESEARCH METHODOLOGY:-

The present study is exploratory empirical one. Only secondary data has been
used in this study.

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An exploratory study has under taken to explore or develop a market strategy

for principally for home based market. The secondary data are extracted from
published Biman annual reports (Activity Report: 2015-2016), Statistical report
from Market Research, foreign carrier information from the data resource
passengers intelligence ( PAXIS , IATA).
This methodology considers through evaluation of the various output of the
study including historical performance, Market share analysis, and company’s
internal and external strength (SWOT) analysis.

Chapter-3
MARKETING MIX
The marketing mix is the tactical or operational part of a strategic marketing
plan. The marketing mix is also called the 4Ps and this may be 7ps in respect of
service product.

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MARKETING MIX IN PERSPECTIVE OF BIMAN:-

Biman’s product as services:

3.1Biman’s product as services:
Since Biman provides passenger-transportation that is place-utility to its
customers; transportation is the major service of Biman. Beside this service

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Biman provides some other services like surface-transportation, and

tourism. Biman’s product-mix is therefore: Any product for service, which is
properly marketed, has four layers. They are:

a) Core product: in case of Biman it will be core service. The core service
that a customer receives is the transportation of themselves or their
cargo.
b) Physical Product: just outer the core service lies the physical service-the
physical things of which the customer comes into contact while receiving
the service. They are passenger seat, and Unit Load Device (ULD).
These physical products convey the services to the customers.
c) Auxiliary or peripheral product: auxiliary services are the other services
necessary to make the service accessible to the customer that is the
other service available to the customers along with the core and physical
product and these are very related to the core service, and therefore
cannot be separable from them, Reservation, ground services, flight
services etc. are the peripheral services of Biman.
d) Augmented services: There is a very limited scope for providing
augmented service in the marketing of services because after sale
service or warranty is not possible in case of services. Biman provides
limited compensation to the mishandled aggrieved passenger for their
Augmented services
lost baggage or damaged/mishandled cargo.
(Warranted satisfaction cum Handling)

Peripheral Service

(Reservation, ground service etc.)

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Physical service

(Space)
 Core service

(Transportation)

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Figure: Product-mix of Biman

All the layers discussed above are the areas on which Managers of
different sections have to make decisions to develop the product and make
it available to the customers. All the sections have their own area of
decision-making but in fact they are interrelated and the top management
coordinates among the sections to ensure maximum productivity through
proper interactions. The different layers of a product those involve
marketing decision making altogether is called the product-mix. Product
mix is the total bundle of benefit they offer in their product. Core product is
the core benefit a customer expects or receives from the product. In airline
business core product is the transportation that a customer pays for. There
are two product lines of this corporation, these are: Seats for passengers
and space for cargo. Both of them are classified again and again according
to their features. Therefore the complete product width of Biman is as
follows:

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Products

Passeng cargo
er seats

1. J-class (Business class): it has 1. General

two subclasses: normal fare cargo
PRICEING FACTOR. fare
and discounted 2. Mail
2. Y-class (Economy class): it has
Seasonality
three subclasses: normal fare Y-
class, discounted Y-class fare is M-
class and discounted special Y-class
fare is K-class.

3.2. PRICING:-

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The price of the product is basically the amount that a customer pays for to
enjoy it. It is a very important component of a marketing plan as it determines
profit and survival. Adjusting the price of the product has a big impact on the
entire marketing strategy as well as greatly affecting the sales and demand of
the product.

Biman consider both fixed and variable cost when setting price including
marginal cost of providing the service, ceiling price for each market segment,
competitors price and activities economic condition and customers behavior.

Biman’s Pricing objective: Biman has a pricing objective oriented to the market.
To win the Market and to make a sizable profit Biman has adopted a Special
Incentive Program (SIP) policy. This is lower than the IATA fair. Airlines pricing
objective mainly depend on the form of the company. In case of National
Airlines (Govt. Airlines), the pricing objective is to maximize the sales growth
(e.g. BG). Pricing objective of public limited company is to maximize the current
profit (e.g. BA, EK). On the other hand, for comparatively new airline, whatever
the form of the company, the pricing objective is to be the service quality leader
(e.g. EK).

Factors affecting pricing: The pricing factors are:

a) Competitors’ fare
b) Market condition (demand)
c) Capacity available
d) Competitors’ incentive

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e) Cost
f) Distance to be traveled
g) Marketing season (peak or lean)

3.3: PLACE:-
Placement or distribution is a very important part of the marketing of a product.
We have to position and distribute the product in a place that is accessible to
potential customers. These are as:-

01. SITA Reservation systems host system

02. Global Distributions System (GDS) Agreement with three company
03. Web Site
04. Biman’s own sales outlets
05. Travel Agency Portal (Web Base Channel)
06. General Sales Agents (Passengers and Cargo or Both)
07. Passengers sales
08. Cargo sales agents

Tasks of distribution Thorough electronic channel:-

1. The tasks of the agents and Biman own sales offices are:

a) Uplift the image of Biman and its services in the market.

b) Promoting its sales.

c) Make tickets and airway-bills available to the customers.

d) Provide customers with information, reservation and other services.

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2. Selection of distribution channel: Agency selection control and monitoring is

the responsibility of Agency and Interline section of Biman's Marketing and
Sales directorate. When any area under the coverage of Biman's operation
appears to be feasible for appointing agency, this section invites application
from that area to be an agent of Biman. After getting responses to their
notification some officers visit their office authority. Once the agency seeker
satisfies the officers they have to get the license from the Ministry of Civil
Aviation to start their business.

3. Incentives for distribution channel: A certain percent of commission is given

to the agents of Biman on their sales of tickets and airway-bill. the rate of
commission differs according to the nature of agents. GSAs get higher
commission that the PSAs or CSAs. Besides these commissions other incentives
are given to the agents in form of special fare, free tickets to the best agents, or
seasonal greeting cards, calendars and other promotional gifts.
4. Recently Biman introduced web based sales through IBE , mobile sales via
Bikash , Roket system by Duch Bangla bank

3.4. PROMOTION:-
Promotion is a very important component of marketing as it can boost brand
recognition and sales. Promotion is comprised of various elements like:
Biman is far away from modern promotional activities. It has been coming up
with all traditional promotional activities. It has very poor budget on publicity
and advertising. It has only some publicity campaign through sports
sponsorship. But these are not sufficient. It has some yearly incentive plan for

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the agents. But the actual benefits of this incentive do not reach to the original
customer.

Chapter-4
Porter’s five forces of competitive position analysis:-

What benefits does Porter’s Five Forces analysis provide?

Five forces analysis helps organisations to understand the factors affecting
profitability in a specific industry, and can help to inform decisions relating to:
whether to enter a specific industry; whether to increase capacity in a specific
industry; and developing competitive strategies.

Porters five forces in Biman’s perspective

4. 1. Threats of New Entrants:-

As airlines business is huge capital intensive the threats of new entrance is not
intense. But due to open sky policy competitors are entering into the business

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from home and abroad. Regent airways, US Bangla and Novo Air are from home
number of giant airlines from abroad as well as any cargo agency can operate a
chartered flight with the permission from cavil aviation.

4.2. Threats of substitutes products and services

More and more airlines from abroad and some domestic airlines are offering
similar features of the product with better service.

4.3. Bargaining powers of customers:-

There are many options for customers due to similar product available in the
market. As such better service or quality product available in lower price e.g.
LCC

4.4. Bargaining powers of suppliers:-

Open sky policy liberalization rules and regulation in Bangladesh’s aviation

industries and facilitate intuition both network and LCC carriers. Network
carriers have worldwide market and LCC has no healthy competitor’s behavior.
As such bargaining power of Biman with the valued customers are in plight
condition Though we are delivering service with the modern fleet.

4.5. Rivalry among Existing Firms:-

Global legendary carrier like Emirates, Qatar airways Saudia, Etihad Airways
Turkish Airlines, Thai Airways Cathe Pacific etc,

Regional carriers:- Jet Airways , Air India , Mihar lanka, Indigo Airlines

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Local carriers:-Novo Air , Regent Airways, US Bangla

Chapter-5

SWOT analysis is a process that identifies an organization's strengths,

weaknesses, opportunities and threats. Specifically, SWOT is a basic, analytical
framework that assesses what an entity can and cannot do, for factors both
internal as well as external. It helps a company or organization to understand its
present situation compared to its competitors and adopts a strategy.

5.1.SWOT Analysis in Biman perspective:-

Strength:- Weakness:-
 Biman being the national flag carrier  Aircraft constraint and multidiscipline aircraft

 Ethnic customer’s loyalty  Logistic support equipment such GSE handling

equipment shortage and below standard
 Brand new aircraft
equipment
 Skilled staff
 Management Lack of independence since the
 World class training center which
government owned organization.
enrich -staff home and abroad
 Right man is not in right position.

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Opportunity:-
 Prospect of opening new employment
market.
 Rising economic growth – buying
power increasing
 Number of air travelers including
medical and leisure travellers
increasing.
Threats:-
 Open sky policy is the big threat considered free
entrance of giant carrier’s numbers of
frequencies to and from Bangladesh.
 Low profit margin and high operating cost
 Others faster means of transportations (Train and
luxurious bus)

 Eruption of vibrant middle class.
 Pilgrim travel (Hajj and Umrah)
 Business travelers.
 Local carrier’s like US Bangle, Regent airways,
Novo Air
 Low cost carrier e:i Fly Dubai, Air Arabia, Air Asia,
Indigo air

 Tourist from east to west making

Dhaka HUB,

 Cargo chartered flights as Bangladesh

is now intensive cargo importing and

exporting countries.

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5.2. Competitors:-
Due to open Bangladesh government opens sky policy Biman is facing tough
competition in almost all sectors. Especially the mega carriers Saudia, Emirates,
Gulf, and Etihad etc are moving very fast to occupy the market share of Middle
East bound passengers. Whereas the Cathay Pacific, Dragon Air, Singapore
Airlines, Thai Airways, Malaysian Airlines, tiger airways , Malendo air, Air Asia
are the great hurdle for the market of ASEAN bound passengers. Even for the
regional sectors the Jet Airways, Indian Airlines, Air India, indigo airlines
becoming big factors to push Biman out of race.

According to government policy some domestic carriers are also spreading their
wings internationally. As a result the local market is rolling in triangle motion.
The promising private local carriers are:

US Bangla, Regent airways, Novo Air

5.3. SOWT Analysis between Biman and Emirates Airlines

Biman Bangladesh airlines ltd Emirates Airlines

Strength Strength

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 Biman being the national flag carrier

 Customer loyalty
 Customer’s loyalty  Regular schedule
 Worldwide network making Dubai
 Brand new aircraft ,Abu Dhabi HUB
 Brand
 Skilled staff  Good will
 Cost cutting
 Brand new aircraft  Brand new air craft
 Adequate aircraft
 Culture

 Online reservation

Opportunity opportunity

 Prospect of opening new  Low fuel cost

 Worldwide market as a network
employment market. carrier
 Europe, US & Canadian bound
 Rising economic growth – buying passenger’s bank
 Prompt decision making
power increasing

 Number of air travelers including

 Eruption of vibrant middle class.

Weakness weakness

 Aircraft constraint and multidiscipline  Language problem

aircraft

 Shortage of logistic support

 As a government organization

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lengthy decision.

 Lack of technology

 Corruption

 Point to point carrier

 Schedule disruption

 No steady strategy
Threats Threats


 Open sky policy

Act of terrorism
Strong competition with Kuwait
Airways , Turkish airways Qatar airways
 Shortage of aircraft

 Rising fuel cost

 New entrants both local, LCC & legacy

carriers

 Political influence

 Local carrier’s like US Bangle, Regent

airways, Novo Air

 Low cost carrier e:i Fly Dubai, Air Arabia,

Air Asia, Indigo air

 Legacy network carrier

Chapter-6

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Existing Strategy and marketing intermediaries of Biman:-

Biman is centralized with some traditional route to Middle East ethnic
passengers based Station to LON, KUL & SIN and the few others based on multi-
profile and multi-standard categories of passengers. Middle East Market and
LON route is revealed to be unstable and some on-going Middle East crisis create
market saturation for Biman. Other hand Booming Economy of India, China and
continuous growth (GDP 6% and above) of Bangladesh Economy entrusted us a
quick recovery of market shares of Biman in coming days.
With the present resources and logistics support Biman is carrying some
selected types of passengers destined to some Regional, Far East and Middle
East Sectors and London in U.K. Our passenger’s profile is mainly-

-Employment/Labor Oriented
-Tourist/Leisure Traffic
-Pilgrims
-Corporate Clients
-Patient/Medical Treatment
-Foreign Workers
-Ship Crews
-Diaspora

Our main source of Revenue Generation is from Passengers sales agents /Travel
agency portal. Apart from, Revenue are also generating from Biman’s own
Outlets located in different District Sales Office in Bangladesh. Biman introduced
web-based Sales System using some popular platform providing incentive to the
passengers directly. This are –
Internet booking Engine (Web Booking)
Option Town
BKash
Rocket
Credit/Debit Card

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Above all are the modern tools and platforms of Sales of Product and Service in
addition to our traditional process of Marketing. Apparently Group Sales of
Corporate Group, Professionals, Special package offers for any instant Pleasure
Trippers, and Special fare for Celebrities/Players/Education Tours/Pilgrimage are
given when received any request. Discounted Domestic Fare on some selected
routes and wide bodied aircraft on via CGP/ZYL international flight both inward
and outward journey and some international sector special year ends fare offers
are on-going. These all steps are taken analysis the market conditions,
competitors flexibility and hidden initiative particularly based on marketing
strategy of local Private Airlines like US Bangla, Regent Airways and Novo Air.
They are the direct competitors of Biman in Bangladesh Market. On open sky
policy induction more foreign carriers and as well as LCC carriers destabilize the
market manifold. So Biman has to face tremendous competition at the moment.

Chapter:-7

Biman’s Market Share in the Competitive Market:-

According to PAXIS Data and Annual Report of Biman and Market research our
market shares gradually fallen down. Which under no circumstances is
acceptable for a National Carrier of the Country. These are as follows:-

Market share of Biman from Bangladesh

YEAR PASSENGERS MARKET SHARE CARGO(TON) MARKET SHARE

FY 2016-17 2345373 25% 33,555 22%
FY2015-16 23,16,629 26% 42,038 25%
FY2014-15 20,64,737 27% 42,656 24%
FY2013-14 15,87,456 24% 32,824 21%
FY2012-13 15,78,188 25% 31,688 20%
FY2011-12 17,65,922 29% 25,142 20%

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Without spending a second of time we have to review and find out the reasons
of short fall and the Team of the M3 Course will try to identify the areas of
Marketing dilemma for such sharp fall and emphasis to improve certain below
sectors for healthy comes back from this static situation.

Chapter: 8

Findings:-
1. Biman has no set strategy as of today. It is running with traditional strategy.
2. Fleet constraints and improper schedule planning that declines market
domination.
3. Dependency on Leased Aircraft leads to high overhead cost and low profit
margin.
4. Route selection to be on global traffic movement and multi-cultural entities.
Now Biman,s routes is on ethnic passengers based.
5. Code Sharing policy is practiced early with Gulf Air And Qater Airways but
experience is not praise worthy but steel strongly considered actively to
mobilize the beyond destination route where repatriate Bangladeshi lived in like
Europe and North American Countries in the west and Trans Pacific countries in
the East.

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6. At present regarding Cargo Carriage a code share agreement is going on with

Ettihad Airways but our observation mostly the Ettihad’s interest is protected
more than Biman. Biman is thinking to start charted flights with Emirates, but
they are not extending their hand at WIN WIN condition.
7. New route opened to neighboring countries points to facilitate leisure trip and
others is not successful remarkably due to lack of proper connectivity.
An practical experience here is shared from the ex-country Manger Frankfurt,
Germany Mr. Sajal Kanti Barua –“the European passengers like Biman , we
cannot attract them due to Biman cannot provide suitable transit time for
connection to BKK/KTM/RGN etc.
8. Biman is unable to grab the domestic market due to inadequate of daily
frequencies to /from Domestic points to cater increased demand though the
purchasing power of Middle Class passengers increased.
9. In our study we feel to establish new offices in remote cities of Bangladesh to
provide service doorsteps to the passengers.
11. Digitalization in black and white in Biman but not in enough practice.
12. Service standard frustrating from A-Z level (Ticketing point to Baggage
Delivery points.
13. Employees motivation and regular training program that evolves standard
service to valued passengers is not enough.
14. Arrangement quick mitigation of passenger’s grievance and compensations
in absent.
14. To make prompt decision power is not decentralized.

CHAPTER:-9

Designing proposed Market strategy: Market Challenger:-

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At present Biman is owning simply 25% market share while it was market leader
60% back in 1990.Theorytically and pragmatically the current market share
suggests to be the market challenger in respect of Biman.
Basically no firm can follow a single market strategy rather than combination of
more than one.
Biman is following the conventional sale strategy which is inherited from past.
But now the time has come for bounce back. Firms that occupy second, third or
lower ranks is in an industry are often called runner up, or trailing firms. These
firms can adopt one of two postures. They can attack the leader and the other
competitors in aggressive way to grasp more market share they can play mutual
win win games with market followers.
Biman being Market challengers can adopt following strategic marketing Attacks
along with other strategies.

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A.Frontal Attack: Biman can use this strategy with matching the opponent
products, advertising, pricing and distribution. Biman may choose modified
frontal attack such as cutting price comparing the opponents. Current revenue
management system is doing fine in this strategy.

B.Flank Attack: The major principle of offensive warfare is concentration

strength against weakness. Enemy’s weak spots are natural targets. A flank
attack can be directed along two strategic dimensions –Geographical and
segmental. In a geographical attack the challenger attack the areas where
Opponent is underperforming. Flanking strategy is to serve uncover market
needs.
Another flanking strategy is identifying shifts in market segments, where there is
gap to develop, then rushing to fill and develop them in strong segments.
As you know Biman started its domestic operation which is also value added
benefit offered to our Intl revenue passengers. Biman should start its all
domestic sales office from where it can serve our labor class, less literate
passengers rather better than competitors.
This type of passengers better satisfied from the service offered physically not
virtually.
C.Encircle Attack-: The encirclement maneuver is an attempt to capture enemy’s
territory through “blitz”-It involves launching grand offensive steps on several
fronts.
After procuring the Dreamliner 787 Biman shall be capable to open new front
both in cargo and passenger. Biman already introduce E Commerce which is the
best example of encircle attack.

D. By Pass Attack: Means by passing the competitors and attacking easier

markets to broaden resource base. This strategy offers three lines of
approach.

I .Diversifying into unrelated products.

ii. Diversifying into new geographical markets.
Iii. Leapfrogging into new technologies to supplant existing products.

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Biman may adopt the policy of diversifying into new geographical markets. It
may adopt low cost strategy in some selected routes-in regional sector to some
Middle East and Far East Sectors.

D.Guerrilla warfare: Guerilla challenger uses both conventional and

unconventional means of attack.
This may include selective price cuts intense promotional activities and
occasional drastic decision in favor of customer satisfaction. Very often Biman
failed to its competitors due to lack of this.

In brief Biman may consider some specific strategy as market challenger and
sometime market followers as its competitors are giant player. These are price
discount, lower price offer, prestige offer (Premium class), Product proliferation
(large Product variety through different RBDs), Service improvement,
Distribution innovation (establish own server, convenient GDS, web based
information and ticket facilities) Cost reduction, intense advertising, sales
promotion, Branding etc.

Chapter: 10

Recommendations:-
10.1. Common schedule round the year with common timing:-

We may publish approve summer and winter schedule at a time well in advance
except during fog period that must be remain unchanged round the year for all
our destination to regain the confidence of our valued passengers. We have to
finalize mentioned schedule in line of valued customer’s desire / commercial
demand and requirement with well-furnished connectivity in view of widen the
market in home and abroad to increase business opportunity and to comfort
customer’s journey to increase their satisfaction and confidence.

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10.2. Improve Inventory Quality: -

Flight inventory is the most important asset of an airline. Optimum utilization of
flight inventory gives an opportunity of airlines to make profit. Well-furnished
and steady schedule with the suitable connectivity enrich quality of flight
inventory (seats) and widen the market and business opportunity. Product
(seats) with good quality intensifies market demand which allure customers to
purchase product (ticket) which invite competition and allow airline to create
healthy pricing structure to maximize revenue.

10.3. On time operation to improve customer’s satisfaction:-

On schedule operation, Comfort customer’s journey and ensure on time arrival
to the desire destination to complete their own business which will help us to
gain the customer’s confidence as well as goodwill.

As for example, Thai Airways and Singapore airlines operates DAC/BKK/DAC and
DAC/SIN/DAC respectively 07 days a week round the year with the same
timings, same call sign irrespectively winter and summer except during fog
period and maintain their schedule by any means. Both the airlines are able to
dominate Bangladeshi aviation market, though we are also operating in the
same route with latest Aircraft. They are operating with bigger aircraft with
higher price than Biman with full load. They are strictly maintained and
furnished such schedule with suitable connectivity for the customer’s desire/
market demand to lure customers with the goal of maximize revenue.

To survive in competitive market there is no alternative to on time operation.

We strongly recommended operating flight on schedule/time.

10.4. Improve Suitable connectivity in existing route to widen

market size:-

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We strongly recommended increasing the connectivity with in Biman’s existing

route to widen market size and to becoming a network carrier. Presently Biman
is operating as a point to point carrier as such our option is limited to offer a
customers and market size is smaller than competitors. To survive in most
comparative aviation business we have to provide service in line of our
competitors. We may furnish our network with a new shape in view of widen
market size to providing or increasing connectivity.

a.London Flight:-
Presently London flight departure from Dhaka 1030lt and arrival at London
1630lt and return flight arrive at Dhaka 1140lt via Zylhet, Resulting we unable to
connect both the ways to BKK/SIN/KTM/RGN/CCU flight without night stay at
Dhaka as well as to/from all domestic point. On other hand no onward suitable
connection to/from USA and Canadian different points from London. As a result
we have lost mentioned historical 6th freedom passengers and diverted to
others airlines. Nowadays we have to depend on only ethnic Sylhet
passengers .They are travel TO/FROM Sylhet in line of school or others vacation
and rest of the time we do not get the optimum load due to narrowing our
market lack of suitable connectivity.

b. Far East and Regional Flights:-

Bangkok / Singapore / Kualalumpur and Yangon flights may reschedule with
suitable connectivity with to/from Kolkata and Kathmandu.ht.

c: Middle East Flights:-

All Middle East bound flights may plan to departure from Dhaka in-between
1530lt to 2200lt considering arrival time at Dhaka / Chittagong and Sylhet in the
early morning that passengers can be connected both the ways to regional, far
east and all domestic points on other hand passengers can be reached their
home by surface in the day time.

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10.5. Placing Aircraft in line of market size and demand:-

Airline capacity is a most perishable item and optimum utilization of capacity
gives an airline to make profitability. Too much capacity in a market leads wide
open seats with deeply discounted prices to stimulate demand to fill the
available seats at unprofitable yields and finally flight departs with many empty
seats. On the other hand a schedule dose not supply enough capacity can lead
to higher prices with optimum load. Equilibrium capacity with suitable
connectivity and commercial / customer’s desire timings invite competition and
help airlines to achieve the goal of increasing revenue. But in bid to increase
aircraft utilization if finalize schedule by passing customers expectation /
desire/real time/ market demand and business potentiality, resulting flight will
depart with many empty seats.
We have to make schedule in line customer’s expectation and place aircraft as
per market demand/condition.

10.6. Hajj operations without hampering normal schedule:-

Hajj operation is one of the most important and lucrative seasonal business for
Biman. It is observed to smooth operation of hajj flights cancel many schedule
flight which is harmful for biman. We strongly recommended to hajj operate
flight keeping normal schedule untouched which will retain our market and
good will.

10.7. Revoke open sky policy:-

Open sky policy is one of the most important threat of aviation business as well
as for Biman also open sky policy need to be stopped at near future. Any
nationalized firm may get some patronization or reservation from the state for
its own interest as well as national interest. Bilateral agreement with SV, EK, EY,
should be modified reciprocally.
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10.8. Codeshare and alliance:-

Code share helps airlines to expand their route without large resource
allocations. Carrier can cover a large network through their partner in the
alliance and it is much more extensive than either carrier would be able to cover
on its own. Most of the leading airlines today have code sharing partnerships
with other airlines and code sharing is a key feature of the major airline alliance.
To expand our network without investing large resources we should make code
share agreement with other airlines.

10.9. Expanding the market (Open new route):-

Increase of purchasing capacity of large number of middle class people of
Bangladesh and tendency to visit abroad throughout the year for various
purposes and reasons particularly Indian different cities, Srilanka, Maldives,
Nepal in SAARC and China, Bali of Indonesia Biman can expand it wings to new
destinations to Chennai & Guwahati in India, Colombo in Srilanka and Male in
Maldives Guangzhou in China and Bali of Indonesia. Revive of Hang Kong flight
will influx the Kolkata bound 6th freedom passengers significantly. Immediately
start of Medina operation will be the bench mark of yielded revenue general in
our revenue inflow. Short termly increase of Jeddah flight frequency from
Chittagong extra flight operation for Umrah Pilgrims up to next Ramjan period
will help increase to achieve yearly Revenue Target.

10.10. Proper training and right people in right place:-

Biman’s Sales outlets are the Gate way of our valued Customers. They meet first
to our Sales Outlets for Services and contact our Sales Personnel over the
Counter for receiving a good and prompt service according to their demand and
needs. Passengers expect good behavior and welcoming approach with due
attention from Sales Personnel. A well physique, smart and well-groomed

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personnel can handle a passenger smoothly. Lady Personnel with pleasant

personality may be deployed in the Sales Counter all the times.

10.11. Increase Promotional activities to attract customers:-

To create awareness and to bring Biman to the door of Customers, Promotional
work must be run on properly and timely. Several initiatives need to be taken to
attract more customers to fly with Biman. The followings initiatives may be
taken to stimulate market:-

Tourism Travel Fair:

Civil aviation and tourism Ministry and different home and abroad organization
arrange tourism travel fair in every year. We can participate with lot of attractive
offers to attract customers

Special Offers:
To convince customers experiencing the service of Biman Bangladesh Airlines, in
different occasions especially in off-pick time we may offer special discounted
offer.

Newspaper, Magazines, radio TV and different social network are most effective
channel to attract customers. We have to increase promotional activities
through mentioned media.

10.12. Developing Inter-departmental Coordination to ensure

better service:-
Inter department coordination is must to improve service and compete with
others competitors. Proper coordination between all department with the
slogan of “Yes, together we can” and declare an impulsive service.

10.13. Indulge In-flight Entertainment:-

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In- flight entertainment facilities are absent in all Biman routes. To attract multi-
profile and multi-culture passengers rather than ethnic type passengers Biman
can introduce and serve liquor service free in Front Cabin and on payment in
Economy Cabin in some selected routes which a class level passenger expects
from Airlines. Other Carriers like EK, Etihad, Turkish Air, Thai Airways, Jet Air
have this facility for passengers. Value of the product is not a matter for such
class passengers. Attractive, energetic, Spontaneous and Slim Figure Cabin Crew
would also be the strategy for development of our service and product.

10.14. Connect Bangladesh with Domestic flight:-

Biman has no daily flights to all 07 Domestic destinations as such we have
limited option to offering our valued customers. Here we have local competitors
like US Bangla, Novo Air and Regent Airways. They have daily or double daily
flight in all domestic destinations. Biman has to adopt attacking strategy at least
in Domestic Routes. Daily two flights to JSR/SPD/RJH/BZL and daily three flights
to Cox’s Bazar from Dhaka and daily flights from Chittagong to Cox’s Bazar will
dominate and become a leading carrier in this market. Movement of Domestic
Air Trippers for Business and Pleasure trips increased tremendously. So, Biman
can lead this market.

10.15. Charter flight concept for Cargo Carriage:-

Export of Bangladeshi product particularly RMG and industrial product to
different foreign countries increased in large scale and volume. Booming
economy of Bangladesh display its presence and symptoms with the expanding
volume of export items. Emergency shipments of Giant Exporters of Bangladesh
are transported by Air. Other carriers operate Cargo flights/Charter flights from
Dhaka to different destinations according to shipper’s demand. Biman has no
Cargo flight resulting deprived from a bulk revenue income for this sector. Biman
can find a strategic partners or Joint Venture partners with Foreign Carriers who
have dedicated Cargo flights with win-win conditions and can carry Cargo from

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Dhaka/Chittagong Airport to any foreign destination. Since Biman has an

established infrastructure and trained manpower and logistic support in both
airports so Biman can earn a significant volume of revenue from this specific
sector.

Chapter-11

Conclusions:-
Biman Bangladesh airline is 100% owned by the Bangladesh government.
Bangladesh Biman Corporation is a commercial venture of the Ministry of Civil
Aviation. It operates through a Board of Directors and provides different types of
services such as passenger service, cargo service, mail service, catering, and
training for the Biman staff. Biman has two categories of passenger services,
provided through the domestic and international flights. But 46 years of its age
Biman could not move with a set objective. Always moves “change and run :
strategy so result remain beyond customer expectation. Now Biman facing a real
competition with the local private and a flock of foreign silky and highly product
based carriers. To retain its existence and improve reputation and fame to all
classes of customers Biman shall have to have a long terms objectives and plan
and formulate a dynamic system of organizational plan that ensure a good
product and optimum service level that will narrow the level of service with
competitor’s and value the satisfaction of the customers. Our Team observed
that most of the customers first choice to fly by Biman because it inherits
“Bangaliana” all the ways. Our recommendations are made and pay due
importance on following areas accordingly.

Chapter:12
References:-
01. Biman Market Research section
02.Activities and performance reports of Biman FY 2015-16
03. Stephen Shaw Airline marketing management 04th edition,
04. David A.Aaker Strategic Management , 6th edition

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05. Philip kotlar, 14th edition , Marketing Management,

06.PAXIS (IATA)
07. Revenue management system Biman.
8. Mical E Porters, Professor of Management Harvard business
school. .

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