Theairline industry encounters various challenges such as overcapacity,price fluctuations, and periods of poor performance. On the otherhand, macro-level factors such as the rising cost of oil, insecurityissues, and concerns of the bird flu eruption have also contributedto declining profits. Even so, (SIA) hasundoubtedly outperformed its competitors to become one of the mostprofitable carriers globally and the leading brand from Asia(, 2016b). The SIA has upheld the reputation of apremium airline using the integration of technology in its servicesand superior marketing strategies.
SingaporeAirlines utilizes various marketing strategies to ensure clientsatisfaction and increase profits. SIA views every client as vitalthus, it offers personalized services to satisfy the customer’sunique needs (, 2016a). For instance, the airlinepractices continuous individual development and a rigorous design ofits service. At the corporate level, SIA maintains relateddiversification with 36 direct subsidiaries and a line of associatedfirms, which cover the major sections within the airline industry(, 2016a).
Furthermore, uses product differentiation and positioning toestablish it’s a unique brand image. The services contain theappropriate features such as robust functionality, good quality, andsafety. For example, SIA ensures price consideration, maintain flighttimes, and availability of passenger seats (,2016b).
TheSIA’s pricing system depends on the seating arrangement either infirst class, business, premium, or economy section. On the otherhand, practices the early payment discountstrategy to increase its sales. Under this plan, the passengers get afive to ten percent discount when they pay for the flights inadvance. Additionally, the airline utilizes seasonal pricingstrategy. For instance, during the peak season between December andJanuary, the company offers a unique travel package for its customers(Heracleous & Wirtz, 2009).
Thenagain, the SIA’s booking offices, travel agencies, and dealers areavailable in all the airline’s destinations to sell the tickets(Heracleous & Wirtz, 2009). Moreover, uses anadvanced and user-friendly website, which has improved customerservice and increased efficiency (, 2016a). Besides, the carrier maintains an online 24-hour reservation system.For example, clients can use the website to check flight plans, buytickets, and choose a meal for the next trip. The carrier alsoguarantees that the schedules in terms of time and location ofdeparture and arrival are followed as indicated.
Lastly, promotes its services through internetadvertisements, public relations, and direct marketing. SIA alsoapplies effective advertising strategies to target a particular groupof consumers. For instance, the carrier uses personal selling throughair hostesses or celebrities to attract affluent clients (Heracleous& Wirtz, 2009). For example, SIA uses the Singapore Girl as themain approach market its brand image (, 2016b).Through the girls’ personification, clients perceive an excitingair travel with a commitment to offer high-quality services. pays attention to the food and beverages providedto the customers by creating a new breakfast meal comprising ofspecial offers.
Therefore,SIA should maintain their current strategies because they have placedthe carrier as one of the leading airlines offering a high level ofprivacy and luxury that is memorable to its clients (SingaporeAirlines, 2016a).
Competitionand Price Wars
However,SIA’s profits have steadily dropped over the past decade due toincreased competition and challenging market conditions. Furthermore, the rampant rise of Gulf carriers has contributed toSingapore Airline’s declined profits (CAPA,2014).The Gulf carriers maintain a sophisticated and aggressive competitionfor premium and low-income customers in a substantial portion of theSIA’s markets (CAPA,2014).For example, Gulf Air has affected Singapore Airline’s greatestmarkets and routes such as the Middle East, from Australia to Europe,and Asia to Europe. However, SIA has responded by using fare wars inan attempt to make profits amidst stiff competition. Thus, theairline offers discounts of 16 to 42 percent of all flights flyingfrom Bangkok to all the destinations on the `network (CAPA,2014).
Inconclusion, the SIA’s objective is to be the leading organizationin the airline service delivery. Consequently, the carrier recruitswide benchmarking against its major competitors and the best serviceprovider companies. The company’s commitment to the aviationindustry has positioned it remarkably to compete in the newlandscape. SIA is a leading business case that highlights the needfor strategic branding, which consistently focuses on customersatisfaction using service improvement, innovation, and striving forefficiency. However, continuous changes and development are necessaryfor to withstand the fast-changing industry andchallenging market.
SingaporeAirlines. (2016a). Strengthening a position of leadership. SingaporeAirlines Annual Report FY2015-16, 1-228. Retrievedfromhttps://www.singaporeair.com/saar5/pdf/Investor-Relations/Annual-Report/annualreport1516.pdf
SingaporeAirlines. (2016b). SustainabilityReport FY2015-16.Retrieved fromhttps://www.singaporeair.com/saar5/pdf/Investor-Relations/Annual-Report/sustainabilityreport1516.pdf
Heracleous,L. & Wirtz, J. (2009). Strategyand organization at : Achieving sustainableadvantage through dual strategy. Journal of Air TransportManagement, 15: 274–279. Retrieved fromhttp://bschool.nus.edu/departments/Marketing/Jochen%20papers/jatmheracleouswirtzstrategyorganizationsingaporeairlines2009.pdf
CAPA.(2014). SingaporeAirlines SWOT: challenges continue as competition intensifies asshown by 1QFY2015 results.Retrieved fromhttp://centreforaviation.com/analysis/singapore-airlines-swot-challenges-continue-as-competition-intensifies-as-shown-by-1qfy2015-results-180289