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Saudi Electronic University
College of Administrative and Financial Sciences
E-commerce Department
Project Assignment
1. Brief
overview
Give a brief description about your company Flynas is a Saudi Arabian low-cost airline based in Riyadh, Saudi Arabia. Established in 2007, it is one of the largest low-cost carriers in the Middle East, operating both domestic and international flights. The airline primarily serves Saudi Arabia and offers affordable travel options to both leisure and business travelers. Its modern fleet of aircraft, including Airbus A320s and A320neos, is well-maintained and equipped with cutting-edge technology to ensure passenger safety and comfort. Flynas is a popular choice for domestic travel, connecting travelers to various locations within Saudi Arabia and overseas, primarily in the Middle East, Asia, and North Africa. Despite being a budget airline, Flynas offers a variety of in-
flight amenities to enhance the traveler experience, including meal choices, entertainment, and seating classes. As a key player in the Middle East's aviation industry, Flynas has contributed to the growth and accessibility of air travel
What do you want to achieve with the digital marketing
? Flynas aims to increase ticket sales through digital marketing campaigns, promoting flights, special offers, and discounts to attract travelers. The company plans to expand its market reach by targeting specific customer segments, both domestically and internationally. Digital marketing will be used to enhance brand awareness, improve customer engagement, drive mobile bookings, increase website
traffic, enhance user experience, promote loyalty programs, collect customer data for personalized offers, and engage on social media platforms.
Flynas will also optimize its digital advertising campaigns for cost-efficiency, ensuring that marketing spending generates a positive return on investment. It will also collect customer feedback and use this information to make continuous improvements to its services.
The company will also monitor competitors' actions and respond effectively through digital marketing
to maintain a competitive advantage in the airline industry. In case of disruptions or crises, digital marketing can be used to communicate with customers, provide updates, and manage the airline's reputation.
Flynas will also use digital marketing to communicate its commitment to environmentally friendly practices and engage with eco-conscious travelers. By tailoring its digital marketing strategy to align with its specific business objectives, market conditions, and customer preferences, Flynas can achieve
its digital marketing goals. Regular performance monitoring and adjustments are essential to achieving these goals.
2. Investigate the micro-environment
as part of the situation analysis for your company.
A.
Customers’ persona. You should define:
The target audience of your business. Flynas is a low-cost airline based in Saudi Arabia. To define Flynas' target audience, we can consider
several key characteristics of their business and services. Please note that my knowledge is based on
information available up to September 2021, and the airline's target audience may have evolved since
then. However, as of my last update, Flynas' target audience includes:
Domestic and Regional Travelers:
Flynas primarily serves domestic travelers within Saudi Arabia
and connects the country with various regional destinations. The airline's target audience consists of
Saudis and expatriates living in Saudi Arabia who seek affordable and convenient air travel options.
Budget-Conscious Travelers:
Flynas positions itself as a low-cost carrier, making it an attractive
option for budget-conscious travelers. Its target audience includes individuals and families looking
for cost-effective air travel solutions.
Business Travelers:
While catering to budget travelers, Flynas also targets business travelers who
seek a balance between affordability and convenience. It offers services such as "Fly Elite," which
includes business-class amenities, appealing to those traveling for work.
Expatriate Community:
Saudi Arabia hosts a significant expatriate population, and Flynas is a
preferred airline for expatriates who frequently travel between their home countries and Saudi Arabia.
This includes both leisure and business travelers within the expatriate community.
Younger Travelers:
Flynas may appeal to younger travelers, including millennials and students, who
are often more price-sensitive and open to trying budget-friendly options for their travel needs.
Leisure Travelers:
The airline's domestic and regional routes serve popular tourist destinations,
making it an option for leisure travelers looking to explore different parts of Saudi Arabia and
neighboring countries.
Families and Groups:
Flynas targets families and groups traveling together by offering services that
cater to the needs of these travelers, such as group booking options and family-friendly amenities.
Religious Pilgrims:
Given Saudi Arabia's importance as a destination for Islamic pilgrims visiting
the holy cities of Mecca and Medina, Flynas also caters to religious travelers making Hajj or Umrah
pilgrimages.
Eco-Conscious Travelers:
Flynas may attract environmentally conscious travelers who appreciate its
efforts to reduce carbon emissions and promote sustainability.
It's essential to note that Flynas' target audience may evolve over time, depending on market dynamics
and the airline's strategic decisions. To effectively reach their target audience, Flynas would need to
employ marketing strategies, fare structures, and services that align with the preferences and needs of
these customer segments.
You will create 3 marketing personas that represent the organization’s target audience. Sarah , the Leisure Traveler
Demographics:
- Age: 28
- Gender: Female
- Marital Status: Married with one child
- Income: Middle-income bracket
Psychographics:
- Interests: Loves exploring new destinations, family-oriented, values affordability and convenience.
- Pain Points: Finding child-friendly travel options, budget constraints.
Behaviors:
- Books flights for family vacations.
- Uses social media and travel websites to research and plan trips.
- Prefers non-stop or direct flights for convenience.
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Ahmed, the Business Traveler
Demographics:
- Age: 35
- Gender: Male
- Marital Status: Single
- Income: High-income bracket
Psychographics:
- Interests: Career-driven, values punctuality and flexibility, frequent flyer.
- Pain Points: Tight schedules, last-minute bookings, airport convenience.
Behaviors:
- Books flights for business meetings and conferences.
- Relies on a corporate travel policy for bookings.
- Values loyalty programs and airport lounge access.
Maria, the Expatriate
Demographics:
- Age: 40
- Gender: Female
- Marital Status: Married with two teenagers
- Income: Upper-middle-income bracket
Psychographics:
- Interests: Multicultural experiences, frequent travel between Saudi Arabia and home country.
- Pain Points: Visa and immigration processes, family-friendly travel options.
Behaviors:
- Books flights for family visits and holidays.
- Seeks personalized assistance for immigration-related inquiries.
- Values flexible booking options and baggage allowances.
B.
Competitors analysis
Competitor analysis Explain the impact of internet on the five forces (
Porter’s five forces model
).
Digital marketing has had a positive impact on flynas since its incorporation. The company has attracted twice the number of clients, which has seen its annual revenue grow. The Internet has, therefore, played a crucial part in keeping the airline at bay with other competing companies. Moreover, flynas provides a weekly offer for the travelers and that gives the company the power to stay in the market and bet the competitors through digital campaigns that flynas done it during the past 5 years. However, the Internet has not only given power to flynas Airline but to its competitors, too. The analysis will easily be analyzed
by looking at Porter's five forces.
1- Competitive rivalry Though flynas has had its better share of the online space, the Internet has given the competitors a chance to define the nature of the airline's services. They easily compare with what they have and implement such services for their airline. The airlines launch marketing campaigns to counter what flynas already have in place. It is an open space for everyone, so the competitors use it to their advantage.
flynas has become among the top 10 companies in the world, despite the global challenges that drove competitors out of the market, confirming that “flynas” aims to reserve its place among the top 5 companies in the world.
2- Supplier power Every industry has its source of supplies or raw materials. The cheapest supplier offering high-quality products will be able to make the supplies. The Internet makes it easy to access information about where flynas fetches its supplies. The suppliers are on the Internet, which eases the research process for the company. If the company has numerous suppliers to choose from, they get the advantage of buying them at fair prices.
3- Buyer power Buyer power involves clients' ability to choose from the different service providers. With internet availability, flynas customers can access information from their competitors. If another airline offers cheaper services, flynas will lose clients to their competitors. However, if their services are better and more affordable, the same information will win them more customers. However, flynas maintained the place in the market they created bundles for their customers to select what they need to reduce the cost for
their customers.
4- Threat of substitution The threat of substitution offers customers a chance to switch to another product if they find it more attractive and cheaper. The Internet gives customers information about new products whenever they are launched by different airlines. If a new service is launched by another airline and the customers are enticed, flynas will lose their potential and loyal clients. However, the Internet will give them a better chance of winning clients if they have the enticing services to advertise. The best move is to ensure that flynas is competitive and informed about the happenings in the airline industry.
5- Threat of new entry Competition is bound to occur if the rivals have better technologies and operational capital to enter the industry. With the Internet, the competitors are better placed since they easily reach potential customers, including those who travel with flynas. New entrants will enjoy easier marketing with the Internet, which poses a threat to the company. flynas should embrace change and ensure that they use economies of scale to bring down their costs. The move will help them maintain a competitive advantage over newcomers. Example:
in 2016 new low-cost airline (Nessma) entered the market with few destinations and low price than flynas, but flynas changed the game and started the digital campaigns to show how they offer a good price with good services until they moved this airline out of Saudi market.
Benchmarking Review the digital marketing tools/platforms of 3 local competitors
and pay attention to their tone and personality and analyze your competition’s digital marketing tools/platforms
, base your analysis on what you’ve observed on your competitor’s digital marketing tools/platforms across all platforms. Flyans is the number one and the best most affordable airline in the Kingdom of Saudi Arabia. It is one of
the top low-cost and most economical airline in Saudi Arabia. Flynas makes its own way offering to their valued customers the cheapest prices in the market that are being daily updated. Flynas has taken a great pleasure in flying passengers to a large number of destinations in the Middle East, Europe, and Asia. Furthermore, it is marked as the largest airline in the Kingdom of Saudi Arabia that offers low and affordable prices for all the different social classes. Flyadeal, Nesma Airlines, and Saudi Arabian Airlines (Saudia) are all digital marketing platforms that cater to different audiences. Flyadeal's website is user-friendly, focusing on simplicity and affordability, with a straightforward tone. Their social media presence is active, sharing special deals and promotions. They also have a mobile app that allows users to book flights easily. Nesma Airlines' website is straightforward, focusing on destinations and flight booking. Their social media presence is moderate, with a more formal tone. They have a mobile app, but it may not be as user-friendly as some competitors. Saudi Arabian Airlines (Saudia) has a comprehensive website, a mix of informative and formal, catering to a diverse audience. Their mobile app offers features for booking, managing flights, and in-flight entertainment. Each competitor has its unique approach in the digital space, and it is crucial for flyadeal to identify its unique selling points and ensure its digital marketing strategy effectively reaches its target audience while differentiating itself from these competitors.
C.
Digital Marketing Suppliers and/or Digital Marketing intermediaries.
Review customer use of different types of digital
publisher or media sites which may influence their decision. Flynas, a leading low-cost airline in Saudi Arabia and the Middle East, relies on digital marketing suppliers and intermediaries to enhance its online presence and reach a broader audience. Digital advertising platforms like Google Ads and Facebook Ads provide essential advertising space and tools for
creating effective online ad campaigns. Content management systems such as WordPress ensure that the
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airline's website remains engaging and up-to-date. Email marketing services like MailChimp facilitate communication with customers and promote special offers. Social media management tools like Hootsuite help manage and schedule posts across various platforms. Additionally, Flynas collaborates with online travel agencies (OTAs) like Expedia and Booking.com, allowing it to distribute flight information and facilitate bookings efficiently. These intermediaries expand Flynas's reach without requiring significant additional marketing efforts. Overall, these digital marketing suppliers and intermediaries provide expertise, efficiency, cost savings, and valuable data insights, contributing to Flynas's success in the competitive airline industry.
3. Summaries the macro-environment
variable your company needs to monitor when operating the digital marketing campaign. (
Two or three variables for each force are sufficient
). Apply PESTLE strategic analysis tool to measure and assess the digital market.
a.
Technological forces.
Cybersecurity (Threat):
As flynas relies heavily on digital platforms for its operations, it faces the constant threat of cyberattacks and data breaches. Ensuring robust cybersecurity measures is critical to protect customer information and maintain trust in the digital space.
E-commerce and Online Booking (Opportunity):
The growth of e-commerce and online booking platforms provides flynas with the opportunity to reach a broader customer base and streamline the ticket booking process. Ensuring a seamless online booking experience is crucial.
Environmental Concerns (Opportunity):
Advancements in green technology and sustainability practices present an opportunity for flynas to invest in more fuel-efficient aircraft and demonstrate its commitment to environmental responsibility through digital communication and reporting.
b.
Legal forces.
Situations brought about by regional legislation that the company must follow:
The legal forces states that there are laws and moral principles that seek to protect the
rights of the customers’ data and Flynas Company LCC is committed to respecting your privacy and protecting your personal information. c.
Economic forces.
Labor supply and demand : flynas launched the first Saudization program in the aviation industry, called "Future Pilots," with a Saudization rate of 100% in essential positions like co-pilots, and the percentage of women among flynas employees reached 30%
with the company's keenness to empower Saudi women, based on Fully convinced of the important role it can play in the aviation industry and economic and social development in general.
The labor supply and demand impact flynas due to the numerous customers they serve every
day. The labor and supply are influenced by legal factors whereby the employees belong to a
particular labor organization. It affects the organization if the terms of the labor organization
do not favor them. The professional and senior managers in the organization have to make decisions that will favor the employees, or else they suffer a low labor supply.
Government activities : Government policies are external economic factors that affect how flynas operates. The government will outline different regulations which the company has to follow. Sometimes, the regulations will be tough for the organization, but they must comply. The government might require changes in the technological approaches to enhance service delivery, which flynas has to adapt. Political factors also affect the organization, which might have a positive or negative impact.
d.
Political forces.
Government Policies:
Flynas is active in nations with wildly different political environments. The airline's operations and itineraries are sensitive to changes in government
policy, particularly visa rules and bilateral agreements.
Geopolitical Stability:
Disruptions to flight scheduling and passenger safety might result
from political instability or hostilities in areas where Flynas operates. The geopolitical situation must be constantly assessed.
e.
Social forces.
Cultural Diversity:
Understanding the cultural nuances and preferences of customers from different regions is essential for tailoring marketing messages and services.
Sustainability and Environmental Concerns:
Increasing awareness of environmental issues may influence customer choices. Flynas can incorporate sustainability into its marketing campaigns.
Social Media Trends:
Flynas should stay updated with social media platforms and trends to effectively engage with customers and manage its online reputation.
References
Hintoro, S., & Wijaya, A. F. (2021). Analisis Strategi Bersaing Pada Biznet Branch Salatiga Menggunakan Porter’S Five Forces. Jurnal Ekonomi Manajemen Sistem Informasi
, 2
(6), 729-738. https://www.dinastirev.org/JEMSI/article/view/613
Stansfield, M. (2004). Internet marketing: strategy, implementation, and practice: Dave Chaffey, Richard Mayer, Kevin Johnston and Fiona Ellis-Chadwick, FT, Prentice-Hall, Englewood Cliffs, NJ, 2003, 484p, ISBN 0-273-65883-2, price£ 34.99 ($68.50). International Journal of Information Management
, 24
(1), 108-110.
Ajel (2023) 4. https://ajel.sa/local/ihxdjbfvfo
https://www.nesmaairlines.com/international-routes
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