A Report On International Marketing Strategy Marketing Essay

A Report On International selling Strategy Marketing EssayThis paper foc recitations on the international marketing dodging of two companies ane direct in the developing do master(prenominal) and one direct in both the real and developing worlds. These be Spice Jet, operating in India just and JetBlue airways, operating in regular army, Mexico and interchange America.Jet blue is a execrable woo service provider in the air hose indus punctuate. JetBlue headquarters be situated in the timberland Hills near New York. Their major operations argon in the linked States, Mexico and Central America. In unspoilt five years, JetBlue has become one of the closely profitable start-up air passage businesss. They have managed to be profitable during the present recession.JetBlue draws in a very competitive base f ar sector of the airway industry. The military position of JetBlue has been done as an affordable and quality airline with extra facilities. JetBlues chief oper ating officer David Neelemen and a few Southwest Airlines employees. The second most important matter after security is client service for JetBlue Training staff, and this very headspring justifies what Mr. G beth Edmondson-Jones, VP of Corporate Communications JetBlue said- We want to bring humanity back to airline actuate. Its not enough just to launch a low-fargon airline that finish be unsold by big carriers1. According to 2008 reports there atomic number 18 to a greater extent than 10,000 employees working for JetBlue and 134 aircrafts to 54 destinations in 6 countries. market outline of JetBlue Reaching the CustomerWithin the initial 2 years, JetBlue established a widely recognized brand name. They likewise have a customer loyalty program comen as True Blue2. JetBlue mainly competes with its competitors on high quality service provided by its employees3. It has been positioned as a low cost and high quality service provider. To keep its operations cost engagementfu l JetBlues fleet consists of only one type of aircrafts i.e. AIRBUS A320 because this brings down their concern cost. JetBlues marketing strategy is attracting potential customers by effectively communicating its vagary that low fares and good quality service are not ceaselessly mutually exclusive4.The main reasons for JetBlues operations being so cost effective are the importance given to technology and innovation and the search for extremely skilled and efficient staff known as Crewmembers. While hiring, they sample to match their corporate values with individuals values. In the last 10 years JetBlue has adopted a strategy of innovative marketing and profitability in the industry. Customers are given a $5 discount for booking online.They use diverse methods to advertise their offers and services such as promotional efforts, newspapers, radio, boob tube and targeted public relations. JetBlue also relies on promoting through Word-of-Mouth. They are socially amenable and beli eve in CSR- Corporate Social Responsibility. After the earthquake in Haiti on January 12th 2010, they collaborated with Ameri rear end Red Cross and asked people to give for those who have lost their families and their lifes earnings in the devastating earthquake5.DEVELOPED AND underdeveloped WORLD FOR JETBLUEJetBlue is a young and dynamic low fare airline only if it has been facing problems due to the stinting downturn. But they have been productive in differentiating their services from their competitors by providing high quality service at low fares. They have always tried to append the number of their operating destinations to overcome the financial crunch and increase their market base. Currently JetBlue operates in USA, Mexico and Central America and the advantage it has of working in developed countries comparable USA and the developing ones a bid Mexico and Central Ameri whoremonger countries is that they have same culture and similar expectations from their airline services and substantial amount of American population is Mexican so there are numerous grass fliers which increases their customer base by substantial numbers. According to Pew Latino report of 2008, there were 12.7 million Mexican immigrants living in USA in 20086.There are potential threats also while operating in both developed and developing worlds i.e. the different political surroundings and their economies being interdependent. Due to the economic crisis in USA, economy of Mexico was also hugely affected. There are different rules and regulations for the airline industry in different countries which also depend on their economic condition i.e. whether they are developed or developing. Developed economies would probably deregulate more and developing economies would try to protect their own airline companies from the ones who come from outside to tap into the topical anesthetic market because this way they actually import services and the local coin goes out. This depr eciates their currency with respect to other foreign currencies.Government regulations, political perceptual constancy and economic condition of the countries differ from each other which make operations of industries like the Airline industry very difficult and makes the business environs very uncertain.SPICEJET AIRWAYSSpice jet is the second largest low cost airline in India. Earlier it was Modiluft airline. ModiLuft airline was the partnership between Indian industrial group Modi and Lufthansa. It is based in New Delhi and offers domestic short embroil services with 195 daily flights to 18 destinations in India including the big cities like Bangalore, Chennai, Delhi, Kolkata, Mumbai and Hyderabad7.SpiceJet is victimization a single-aircraft-type fleet like other low cost airlines. They are contemporaryly development 16 Boeing 737-800 and 5 Boeing 737-900ER.MARKETING STRATEGYSpiceJet is using the names of various spices for eg. Cinnamon, thyme etc. for their aircrafts. They h andle their marketing campaigns with very knavish tag line Flying for everyone. As SpiceJet is low cost airline, they are more focused upon offering lowest air fares to gain more market share. They entered the market using vary different pricing strategy i.e. Rs.99 fares for 99 days and 9000 seats available at this rate8. SpiceJet maintained their low price spice fare strategy and started to sell the air tickets for Rs.500 and Rs.999. The main idea behind this is that they wanted to keep their prices very similar to early class tickets of Indian Railways so that any person who affords that fare can be attracted by these airline fares. another(prenominal) advantage of doing this is that saves in trip time. Corporate benefit programs, Students discounts, discounts on group bookings are also one of the parts of their marketing strategy. They also offer air tickets with Rs.0 basic fare.Another thing we can observe is that almost 25% of their sales are on their web localize which show s that SpiceJet encourages the online bookings to eliminate the travel agents thus to bail out travel agents fee. They are also planning to increase their number of fleets in baseball club to increase their market share. They also rely on Word-of-Mouth like JetBlue does. SpiceJet also launched a new communication strategy which clearly moves onward from strategies based on price to value based strategies. This strategy focuses on long term prospects and positioning SpiceJet in a different way9.COMPLEXITIES REGARDING MARKETING AIRLINE INDUSTRY IN DEVELOPING WORLDThe market size of it for the low fare airline services is really small i.e. just 18 cities in 28 states. That amounts for a very small size of the total population. Airline is not like other products with which consumers have to move with on daily basis. The regular Indian traveler expects the same whether they are traveling from a low fare airline or a full service carrier with respect to some services like normal sani tation etc10.ENHANCING PERFORMANCESpicejets fleet includes Boeing 737-900ER, which earlier was fine for them to use because of cheap fuel prices but lately fuel prices have increased. and then to decrease their operating cost they can also include more fuel efficient aircrafts like ATR-72 for short infinite flights and Airbus 320 for long distance flights.They can also increase the number of destinations to reach economies of scale and to increase their revenues.STAY HERE OR EXPANDGiven the current economic condition of other countries and the financial situation of Spicejet they should stay in India only because in the developed countries the competitors are more financially stable and they can have a competitive advantage with respect to price and also being there before SpiceJet. Other airlines already operating in the developed countries have well established network and the experience to operate their because the government rules and regulations regarding differ from place to place and also depends on the current economic condition of the country. The cultural difference and the standard lifestyle of the customers are also different. The meaning of a low fare airline business leader be different for people from different countries and the minimum expectation from the airline services as well. Its true that to increase the revenues they should tap into the other markets but right now its not the right time to that. When they decide to do so they can consider an option of collaborating with some other players in the developed country market and gain some experience and know how while working with them before they decide to enter the market themselves. outcome1 http//www.brandchannel.com/features_effect.asp?id=412 https//trueblue.jetblue.com/web/trueblue/homejsessionid=F854ECF662888C47BD9AD0E3415B9862.l13 http//www.jetblue.com/about/ourcompany/annualreport/2002/our-people.html4http//www.hotelschool.cornell.edu/chr/pdf/showpdf/chr/research/casestudies/AAJe tBFinal_with_2002_financials.pdf?my_path_info=chr/research/casestudies/AAJetBFinal_with_2002_financials.pdf5 http//american.redcross.org/site/PageServer?pagename=corp_evergreens_company=jetblueairways-pubs_companycontent=jetblueairways-pubs_active=1s_dis1=0s_dis2=0s_dis3=1s_genops=0s_national=0s_military=0s_international=0s_local=0s_match=0s_src=FZZWGW00s_subsrc=jetblueairways-pub6 http//pewhispanic.org/files/factsheets/47.pdf7 SpiceJet Retrieved Jan 20 2010 http//en.wikipedia.org/wiki/SpiceJet8 SpiceJet Debuts with Rs.99 fare for 99 days Retrieved Jan 20 2010 http//www.spicejet.com/newspage.asp?strNews=99fares9 http//www.campaignindia.in/news/2009/08/10/spicejet-s-new-communication-strategy-attempts-to-delivervalue-10 http//www.campaignindia.in/news/2009/08/10/spicejet-s-new-communication-strategy-attempts-to-delivervalue-