The marketing strategy of Boeing
The marketing strategy has set certain for reducing the costs by 25% and the defects by 50%. Similarly, the strategists of Boeing have stressed a lot on order-to-time deliver and they have reduced the order-to deliver time by half in the last six months. Ultimately, the marketing strategists of Boeing estimates that reduction the inventory to 50% would save one billion dollars for the organization in storage, handling cost and financing. Boeing stresses a lot on factors like brand recognition and brand equity.
Boeing aimed to expand the business more by increasing the shareholder value which would require the company to exert more effort to make every business unit grow. One of the strategies that had been developed for Boeing was to reorganize the entire company to be able to make the brand known globally. This goal had required the company to restructure other aspects within the company including the reduction of plants and workers. Boeing had reduced its space and labor force in order to reach the expected market share of the company.
A long-term strategy of Boeing of manpower and workspace was done to get the appropriate profit over the next three years (Starner, 2001). The marketing research through surveys and interviews found out that 777 cabin was considered to be the first airplane interior to be honored an excellence award for its interior. This design of the cabin was evolved after years of research and it involves passengers, flight attendants and airline staff (Newhouse, 2008). Thus, all the airplanes of the Boeing family are marketed in a very effective and an efficient manner and utmost importance is given to customers preferences.
Nearly, all the customers are satisfied with the approach of Boeing because all of its new designs now offer flying directly to the customer’s destination, eliminating factors like lost connections and saving the time to travel. Marketing Strategy of Airbus Airbus on the other hand focused on technological advances to get ahead of the competition. The strengths of Airbus such as twin-aisle, wide-body, and twin engine aircraft have given the company an opportunity to soar higher than its competitors.
Apparently, Airbus could take more passengers than what Boeing can make in one flight. Airbus has been offering its passengers a huge, quiet, and full-efficient double aircraft. Coordinating with other companies has also helped Airbus to gain persuaded more clients to buy aircrafts and gain larger market share (Viardot, 2004). The partnership with other companies apparently gave Airbus an edge among its competitors which also led to a more successful business in aircraft industry. The Airbus A380 super –jumbo is basically a plane for the chronicles of the aviation industry.
It possesses the capability of taking 550 to 800 passengers and it is categorized as the biggest airline around the world. It has two full length decks and elements like sleeper cabins, cocktail lounges and a beautiful gym (Newhouse, 2008). These elements combine together to capture public’s imagination. But besides all of its services and promise of innovation the A380 represents a bet-the-house wager and it is considered to be the most disliked of air-travel. The A380 is mainly build around the hypothesis that airlines will continue to fly smaller planes on the shorter routes.
This plane also assumes that passengers would change their preferences and they want to put up the hassle of changing planes in exchange for the privilege of travelling in a supreme jet powered air plane. It seems that passengers are not satisfied with A 380 because they believe that the plane gives in impression of a freighter rather than a luxury linear. The needs of the customers are not satisfied with this plane. It is quite obvious when customers are given an option to choose between more seats and a gym the choice of gym goes and they preference of more seats can be considered as the final verdict of the customers.
Although this found to be a cynical approach but not to those who are found of the upstairs first-class lounge in the early times of 747’s airplanes. The research analysts at Airbus evaluated that they need to have a standing room only seats for short haul flights. Customer evaluation gives out an estimate that pursuing this strategy would be beneficial for the firm and it would allow more passengers to it in a single plane. This clearly depicts that the marketing and business strategy of Airbus is off the target and it is not that much aligned with the trends of aviation and travel industry.