Marketing Air New Zealand

Running head: MARKETING AIRLINE 1

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MARKETING AIRLINE 2

Table of Contents

EXECUTIVE SUMMARY .......................................................................................................... 3

Introduction ................................................................................................................................... 3

Macro Analysis .............................................................................................................................. 6

Political Factors ........................................................................................................................... 6

Economic factors ......................................................................................................................... 6

Social factors ............................................................................................................................... 6

Technological factors .................................................................................................................. 7

Legal factors ................................................................................................................................ 7

Ecological/Environmental Factors .............................................................................................. 7

Micro-analysis ............................................................................................................................... 8

External Analysis ........................................................................................................................ 4

Legal Analysis ............................................................................................................................. 4

Technological analysis ................................................................................................................ 5

Economic analysis ....................................................................................................................... 5

Micro Analysis ................................................................................................................................ 6

Conclusion ..................................................................................................................................... 9

References ...................................................................................................................................... 9

MARKETING AIRLINE 3

EXECUTIVE SUMMARY

Airline India is known to be one of the greatest bearers generally. India has the speediest

creating air transportation wanders with an improvement rate of 18% for each annum. The Airline

India was a family unit flying machine that had been set up under the aegis of the administration

“Union Ministry of Civil” flying arranged in Delhi. As shown by the Air Corporations Act of 1953,

two new national flying machines were to be encompassed in India – Air India acknowledged

control over the overall courses and “Indian Airlines Corporation (IAC)”, expected control over

the private and regular courses. The new carrier's base camp is arranged in Mumbai, and have a

maritime constrain of more than130 flying machines. Affiliation Air and Air India Express have

climbed as the new carrier's unimportant effort arm. After beneficial fulfillment of the Air India -

Indian Airlines, the plane will be perceived as a man from the Star Alliance, the best transporter

affiliation, kept up by Luftansa. The flying machine will join the Star Alliance in 2008.

Airline India has been faced by insecurities that has highly led to the decreasing the number

of passengers. The airline has also been affected by the bad relations between the region and other

regions. This has brought about restrictions in travelling to some of the states. Also, political

instability has led to an unstable working environment in the Airline India due to the tension

created by the Pakistan. Due to the subsiding of the Indian government, fuel costs have relatively

gone high. Advanced development in India has led to development of Airlines. The organization

is expected to be successful despite the competition by implementing modern strategies.

An outside examination will be conducted for Air New Zealand utilizing the vital

instruments, for example, PEST investigation and Porter's Five Forces expecting to recognize

main factors that will influence the productivity of the organization.This Airline is based in

Auckland where it operates by scheduling passenger flights to around 25 domestic destinations

and maximally 26 international destinations at around 15 countries across North America, Europe,

Asia and Oceania.

Introduction

An Airline is and industrial company that offers air transport services to passengers and

goods. Airlines use aircrafts to conduct their transport services and go ahead creating a partnership

or an alliance with other different airlines. Airline companies are generally identified with an Air

Operating Certificate or a license issued by the government aviation department.Airlines have a

corporate structure that must be followed where operations such as flight maintenance, passenger

services and flight safety is supervised by the vice president of the Airline. Vice presidents are

normally appointed in large airlines (Belobaba, Odoni and Barnhart, 2015).Airline is one of the

industries that have taken a major role in the growth of economies world wise.

Company background

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Air New Zealand is a well-known national airline in New Zealand which was founded in the 1940s

and immediately started operating in April, 1

1965. The Airline is situated in Auckland where it

works by booking traveler flights to around 25 household goals and maximally 26 global goals at

around 15 statesacross North America, Asia, Europe and Oceania (Brooksbank, Subhan, Garland

and Rader, 2015). The Airline has been known to be independent from the star Alliance since

1999.The Airline was recognized when it was issued with the Airline of the year award issued by

the Air Transport World Global Airline Awards back in 2012(Lyon, 2016 p. 412). The Air New

Zealand goes ahead to make agreements with other major airlines like Jet Airways, Air India, Air

Canada, Air China as well as United Airlines. . Air New Zealand stays submitted towards its clients

and goes for conveying the best administrations and services. Aside from fundamental luxuries

like wellspring of entertainment, meals as well as medicinal hardware, the group is committed in

making the passengers travel comfortably.

External Analysis

An outside examination will be directed for Air New Zealand using the crucial instruments,

for instance, PEST examination and Porter's Generic Strategy hoping to perceive major situation

which will impact the efficiency of the association. The examination will be established on these

two classes (Kelsey, 2015). The General condition which unite on the association's future among

various contenders and the India condition which consolidate on conditions and conditions which

will impact the operation of Air New Zealand in the business PEST Analysis.

Legal Analysis

The Government’s bolster expect a basic part in the accomplishment of Air New Zealand

as a fundamental carrier association speaking to New Zealand. This assistance can be distinguished

in 2001, imperative adversities made by Ansett Australia (Air-NZ has half); huge measure to

capital was injected to Air New Zealand by the New Zealand Government (Robalino and

Aniscenko, 2017). Regardless, the Government proposed to drop current shareholding to 51% until

end of 2013 or appropriate on time of 2014 (Favale, Kretschmer and Torremans, 2016). In relation

to examination, the recommendations of Air New Zealand’s offers costs have not totally reflected

its present association esteem. Less shareholding infers less help in troublesome conditions

financially.

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Technological analysis

Airline New Zealand is viewed as a very technical India where new innovations in the

technology sector only benefits and improves services rendered by the airline. The ecological

division concerning the carrier business of Air New Zealand has made objectives to keep up a

positive picture universally (Carlsson, 2012). Innovative usage have been considered to decrease

the impact of avionics on the earth which were done in two diverse ways; the carbon

counterbalance program and in addition making gifts towards Air New Zealand.

Economic analysis

Close by advancing measures to advertise New Zealand as an objective to known airline

markets, Air New Zealand has revived its accentuation on bring up abled markets and in the not so

distant past opened a business office in ‘Beijing, China’. Direct air flights among ‘Auckland’ and

‘Shanghai’ are in like manner orchestrated once the vital managerial supports are found. In

“September 2010”, Air New Zealand showed up “Seats to Suit” which hands the customers the

choice of Seat, Seat + Bag, ‘The Works’ and ‘Works Deluxe’ on flights between New Zealand,

Australia and the Pacific Islands. Air New Zealand's dependability program, Air points, was

propelled in November 2004 as “Airpoints Dollars” (Lyon, 2016 p. 412). In a world where you are

a beginner, customers may tend to use their Airpoints Dollars to book any kind of seat, at whatever

point, on any Air New Zealand ticketed and worked flight, much the same as cash. In September

2013, Air New Zealand teamed up with Kiwi bank to dispatch a noteworthy Airpoints winning

charge card. With each one of these exercises and the various kinds to take after Air New Zealand

remains focused on passing on a particularly Kiwi experience to its potential customers.

All carrier associations are particularly affected by the economy of the state. The amounts of areas

are immovably connected with money related execution. However, the fuel cost is the other

fundamental segment that influences the association's advantage. The diminishment of flight costs

among ‘Gisborne’ and ‘Auckland’ is an average case. An ordinary of 11% cost cut could be

introduced because of direct augmentation 12%in the enthusiasm for the organizations since

October 2012, (Media Releases 2013 - Air New Zealand cuts affirmations among Gisborne and

Auckland, 2013) (Marchiori and Possamai, 2015). In fact, there was 100% extension in landing

charges since December 2012 at “Gisborne Airport”, the extended demand helped them to save a

couple of costs by working in a much greater armada.

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Micro Analysis

The suppliers in the Air New Zealand are the airline travelers who move from the country

to other countries or from other countries to the country where the airline India is located. The

suppliers in this case the airline travelers are the reason behind the operation of the airline India.

If there are no travelers, the airline India cannot operate and the more the airline travelers, the

greater the growth of the India.

Macro Analysis

Political Factors

Insecurity is a major measure that has greatly affected the airline India. This has led to the

decreased numbers of travelers since each and every one is concerned about his/her security in one

way or another. In India, the occurrence of the Gujarat riots and the government’s inability to

regulate this scenario have led to induced fear among the travelers leading to a great reduction of

the air passengers in the country. The airline India has also been affected by the relations between

countries. There might be restrictions of flying in some particular areas in some countries which

has led to a loss in potential air traffic in countries such as India and Pakistan. This does not happen

in countries that trade together.

A country with unstable government in terms of its political environment causes

uncertainty in the air travelers’ minds of flying to a certain country. India’s political environment

in the recent days has been unstable due to the continued tension brought about by Pakistan. The

corruption level in a country is also another aspect affecting the airline India (Srinivasan and

Prasad, 2014). India is a highly corrupted country since bribes have to be used to get permits and

also licenses. In this case, frequent liasoning between the airline minister and also the government

officials is of use. In this case, when introducing Air New Zealand in India, the security measures

should be concerned to make sure that the flow of things is smooth.

Economic factors

The airline India depends highly on the economic situation of a particular country. In most

cases, the high cost of fuel results to increased operation costs. In India, the rising cost of the fuel

price has been caused by subsiding of the India government. The economic downfall of the airline

India has been caused by increased price of fuel but the India is looking for ways to make it survive

during this difficult times(Saranga & Nagpal, 2016 p.172). In India, middle group families prefer

using airline in their operations since it time saving. The income got from this group of people has

planned a major role in developing the airline India in India. Air New Zealand should hence target

the middle class and the high class group of people in India.

Social factors

In India, the development of towns and also the airports-metro cities has led to better

services in the airline India. India is a developing country and the more the countries are

MARKETING AIRLINE 7

developing, the more new airports are built up (Galaskiewicz and Wasserman, 1993). The India is

also large hence providing more employment opportunities and this has solved the joblessness of

India’s high population. India has hospitals which specialize on treating diseases even at their

critical conditions and this has led to an increase of patients from all over the world who visit India

to seek medical attention. This would be advantageous to the implemented Air New Zealand in

this country.

Technological factors

The implementation of up to date technology has played a great role in the airline India as

well. For example, the broad use of internet has made the customers to access tickets online with

no need of visiting the airline headquarters. By use of internet, the passengers can easily access

the latest information about fare and other important travelling information. The airline crew can

also easily interact with its customers so as they can listen to complains and also get information

on how to improve their services. Technology has also led to the development of green field

airports which are private with an example in Bangalore Airport Corporation limited. This will

make it easier for Air New Zealand to reach its customers in India.

Legal factors

India has implemented certain rules and regulations to improve the quality standards of the

airline India in order to ensure their passengers of safety and security. This rules and regulation

has been made compulsory which has increased the cost of these airlines in the reason of

maintaining the given standards. India has gone to the extent of not giving operating license to

some airline industries due to lack of reaching the required standards. Customers that is the air

travelers are highly expecting that the suggest laws are practiced and this makes the laws so strict.

This has been a major challenge in the airline industries since they have to adjust their laws so that

the implemented ones are kept into practice. After introducing Air New Zealand in India, the

company should make sure that it adheres to rules and regulations given to prevent fines.

Ecological/Environmental Factors

Global warming and sudden unexpected atmospheric change has led to a reduction in

number of flying airplanes in the atmosphere. The airline India has however implemented certain

ways of addressing the issue since travelers prefer eco-friendly airlines. Air travelers and other

environmental organizations are looking forward on seeing how the matter is looked up to and by

this, companies such as Air New Zealand should struggle to bring about environmental friendly

aero planes such as those that use bio fuel before introducing their system in India.

MARKETING AIRLINE 8

Micro-analysis

Company

For an organization to be successful regardless of the competition, its strategic formulation

and implementation must be firm and well put into exercise. The internal strengths and weaknesses

of an organization depends how activities are performed in terms of being well or poorly

performed. The strengths and weaknesses of a company are brought about activities in the

company such as management, marketing, production and other internal activities (Narayanan and

Fahey, 2005). The more the strengths in the company, the more the successful its activities are and

vice versa.

Suppliers

The suppliers in the airline industry are the airline travelers who move from the country to other

countries or from other countries to the country where the airline industry is located. The suppliers

in this case the airline travelers are the reason behind the operation of the airline industry. If there

are no travelers, the airline industry cannot operate and the more the airline travelers, the greater

the growth of the industry.

Consumers

The customers in the airline New Zealand are the people from the middle class and the

high class group in the society. These groups of people are entitled to luxury in terms of having

the urge to feel comfortable in any activities they are involved in and this is the reason behind them

travelling via air. It’s comfortable, convenient and time saving. Travelling via air is expensive and

that’s why people of the lower class rarely afford it (Shaw, 2016). The people from the high class

and the middle class travel to other countries for business purposes and other reasons and they are

mostly targeted during the vacation periods.

Marketing Intermediaries

Marketing intermediary refers to the individuals such as agents, distributors and retailers

or firms that link the manufactures to the buyers. Their work is to promote, sell and provide the

availability of goods and services via contracts from the producers or by purchase and resale of

the items. The price they get the goods at varies with the one they resell it with (Rust, Lemon and

Zeithaml, 2004). In the airline industries, there are such intermediaries and the customers have to

directly deal with the India’s authority. This is to avoid the inconveniences that might be caused

by the involvement of the intermediaries.

Competitors

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Competitors both locally and internationally are the major threats in airline industries.

Increased number of airline industries has brought about stiff competition. The only way out left

for the airline industries is to add value to their services, and also to cut the fare price in order to

attract customers. The new airlines in the India are a major threat since they have the capital and

more knowledge to run the business (Helms and Nixon, 2010). An airline India can decide to be

unique by providing their customers with snacks as they travel and by also cutting the fare price

of flying during some seasons such as the holiday seasons.

Publics

The airline New Zealand requires sufficient finances to run it. This illustrates that the more

the finances, the smoother the operations in the India. Media has a way of promoting the airline

industries through advertisements and the more an India is known to a large mass of people, the

more the demand of the India (Lu et.al, 2014).The government also plays a major role in the airline

industries. The industries have to be given the legal right to carry out their operations and also the

licenses. They also have to pay taxes as long as their operations are into practice.

Conclusion

India having the fastest growing airlines in the world will make the introduction of Air

New Zealand in India easier. India is also known for its quick recovery after tragedies and this

gives the reassurance of the India rising up after any downfall. The large population in India also

shows that the airline New Zealand will easily get access to employers. After Airline New Zealand

is put into practice in India, it has to have its unique features so as to avoid too much competition

in the India. India has its negative and positive factors which have greater impacts in the airline

India but the positive once dominates the negative. The macro analysis of Airline New Zealand

link with the pestle analysis in India shows that the Airline New Zealand can easily fit in the air

market in India. The expanding air market in India hence has a great impact on this

implementation.

References

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Belobaba, P., Odoni, A. and Barnhart, C. eds., 2015. The global airline India. John Wiley &

Sons.

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