1. Introduction The purpose of this project is to develop an international marketing plan for Hong Kong Airlines to expand to the India market.
2. Current Marketing Mix This section will illustrate the current marketing mix of Hong Kong Airlines. 3. Current Marketing Strategy Geographic Segment| 84% from Asia-pacific region, with Hong Kong constituting 36%.| Demographic Segment| Gender * Male >70% 2. Female< 30%Age * Below 30: 28% * 31 – 50: 60%Annual Income Level (in RMB) * Below 60k: 12% * >60k-100K: 23.3% * >100k – 150k: 31.5% * >150k – 200k : 9.4% * >200k – 400k: 8.9% * >400k: 14. 9%| Travel Purpose| * Organization travel: 71% * Vacation/others: 29%| Number 3. 1Segmentation of Hk Airlines’ Traveling Competitors of Hong Kong Flight companies Figure a few. 2 Perceptual Map of Competitors The vertical and horizontal axes of Number 3. 2 represent price and services level correspondingly.
Hong Kong Airlines is located in the bottom right nook because it gives reasonable assistance level with competitive value. Dragonair and Tiger Airways both operate on similar routings as Hk Airlines. With Dragonair setting as a premium brand whilst Tiger Breathing passages being a cheap carrier, they are selected to get a more detailed competitor analysis. It is customers’ market profile is incredibly close to regarding Hong Kong Air carriers: 85% with the passengers live in Asia-pacific and 30% of these live in Hong Kong; 66% will be males and the average era is 41-year-old; and the normal personal month-to-month income is around USD5, 1000.
They are service-sensitive and less price-conscious. More than half in the passengers are routine travelers who fly for more than 6 moments annually. Tiger Airways works between Singapore and some regional destinations in Southeast Asia, Australia, China and tiawan and India. Their people are price-conscious and less service-sensitive.
4. SWOT Analysis Operating in a relatively small scale, Hong Kong Airlines can be flexible and responsive to the market adjustments. Its young fleet contains both short / method haul aircrafts (A320) and long haul aircrafts (A330-200 & A330-300), that may support routings between Hong Kong and Asia-pacific ports. Number 4. 1A330-200’s Coverage (from Hong Kong) Figure 5. 2A330-300’s Coverage (from Hong Kong) Hong Kong Airlines is additionally weak in operational management. The Hk Civil Aviators Department has frozen the fleet growth plans of Hong Kong Airlines since August 2012 due to safety concerns, and suggested it to consolidate the existing operations with current navy size.
Which has a relatively small scale of operations, Hong Kong Flight companies has a rather weak negotiating power using its suppliers of aircrafts, gas, and aircraft maintenance providers. The Hk Tourism Panel will invest around HKD30 million in opening up fresh visitor options in five new marketplaces – India, the Middle East, Russia, Vietnam and the Holland. These innovations in travel and leisure will definitely improve the demand for flights.
One of the major procedure costs intended for an flight is the gas cost, which has a great impact on an airline’s profitability. In the event the crude oil rates return to the peak of USD70-odd or higher, several small-scale airlines, like Hong Kong Airlines, might be unable to make it through. 5. Development to India Figure a few.
1Outbound Traveler Numbers of India The above factors have illustrated a growing marketplace for cheap carriers in India, which is not yet completely accommodated by existing air carriers. Together with the open-up policy of Indian government and the promoting plan of HKTB, this can be a favorable opportunity for Hong Kong Air carriers to broaden its procedure into India as a cheap carrier. [Remarks: There are rumors that Hong Kong Airlines’ sister air travel, Hong Kong Exhibit, will relaunch itself like a low-cost company in the near future. However , no relevant official announcement has been made by either the Hainan Group or Hk Express.
Regardless, this job aims to offer Hong Kong Air carriers to enter India as cheap carrier; any kind of future creation plans of other subsidiaries of the Hainan Group ought to be investigated separately. ] International Industry Plan Marketing Mix The table listed below summarizes the marketing combine which Hk Airlines can adopt to the India market. In terms of people, the organization will sponsor local staff to address the cultural distinctions between Hk and India. For immediate advertising, Hong Kong Airlines will utilize the digital marketing stations by creating website and Facebook web page specifically for India; besides creating a fast growing amount of websites users, India also has the world’s third largest Facebook . com community.
Online marketing activities, such as video games and contests, can be introduced through these kinds of channels. The corporation will execute outdoor promotions, like advertisements, to respond to the cultural attributes of Indians – collectivism and the inclination of general public space. Concerning indirect advertising and marketing, Hong Kong Air carriers can interact personally with the Hong Kong Tourism Table and the India’s Ministry of Tourism to market Hong Kong Tourism to the Indians, and the other way round.
This tie in with the current strategy of HKTB to explore new visitor sources in new marketplaces, including India. The company will even cooperate with local travel companies to provide low-cost travel plans because 60 per cent of Indians used to obtain air seats through travel companies. Also, the depreciation of rupee induces demand for inexpensive travel plans.
Since Bollywood, the Hindi-language film industry, is one of the major film merchandise centres throughout the world, Hong Kong Airlines will work with the community film creation companies intended for product placement. Another concern will be the excessive burden about operating cost due to the substantial taxation in luxury in India. Travel is still being regarded as extra in India and the duty on plane fuel is definitely 70% more than this in other countries.
And so Hong Kong Air carriers needs to guarantee a high traveling load component on each flight and to totally control other costs in order to leverage the entire operating costs. 6. Realization In order to grow its organization, entering the India marketplace would be a beneficial option for the company because of the various opportunities with the India market – the rise in India outbound travel around, depreciation of Indian rupee, no existing direct competition, change in Of india aviation insurance plan, and forthcoming work strategy of Hk Tourism Plank.
In view of the market situation, the marketing strategy of Hong Kong Airlines will certainly relaunch the organization as a cheap carrier in India, targeting the two cities with most outbound travel and leisure population, by means of joint venture. This aims to increase public awareness of the company’s new setting in the India market, together with the ultimate goal to increase earnings. The advertising mix will probably be – offering low flight; providing limited scope of services; establishing local again office and utilizing online channels; as well as recruiting regional employees.
A variety of direct and indirect advertising and marketing will be followed, which includes web marketing, outdoor campaign, membership programs, cooperation with other organizations and companies, and product positioning in films. As if various other business enlargement plans, Hk Airlines is going to face several challenges when ever entering the India marketplace. The most crucial you are the ethnic difference between Hong Kong and India, which can be eased by simply recruiting regional employees and learning from the area partner.
Another one would be the high tax burden induced by the Indian government, which will be remedied by simply leveraging the entire operating cost. 7. Sources 3. Hong Kong Airlines’ Travel & Care programme http://www.youtube.com/watch?v=nx99gmWh8hI 4. Hk Airlines advertising and marketing media launch, NINGBO air travel media & Co. Ltd, 2011 http://wenku.baidu.com/view/38e6dd2f453610661ed9f4c3.html 6. Introduction of Dragonair, SUMMIT MEDIA 9. Hong Kong Airlines, Asia’s fastest developing carrier, looks to become reckoning force in the area, CAPA, 15 November 2012 http://centreforaviation.com/analysis/hong-kong-airlines-asias-fastest-growing-carrier-looks-to-become-reckoning-force-in-the-region-86233 twelve.
Launching affordable carriers in emerging Asia: Is now time?, Travel Daily Asia, 2012 http://www.traveldailymedia.com/asia/launching-low-cost-carriers-in-emerging-asia-is-now-the-time 10. Indian Telephone Travel, India International Travel and leisure Mart http://www.iitmindia.com/uploads/iitmindia/India%20Outbound%20Travel%20-%20A%20Report.pdf 12. Legal Council Panel on Economical Development, Hong Kong Tourism Table, Work Plan for 2013-2014 http://www.legco.gov.hk/yr12-13/english/panels/edev/papers/edev0225cb1-565-3-e.pdf 13.
The development of the low cost airline market in Asia http://www.ukessays.com/essays/tourism/low-cost-airline-industry-in-asia.php#ixzz2Qddj87mW 18. Rupee comes most in 4 months on global dollar strength, Reuters, The times of India, May twelve, 2013 http://timesofindia.indiatimes.com/business/india-business/Rupee-falls-most-in-4-months-on-global-dollar-strength/articleshow/19989344.cms 15. Telephone tourism industry from India grows: Several emerging styles, Malini Goyal, ET Bureau, The Monetary Times, Interest 14, 2013 http://articles.economictimes.indiatimes.com/2013-04-14/news/38529310_1_direct-flights-indians-thai-airways 17. India net usage stats and telecoms market survey, internet globe stats http://www.internetworldstats.com/asia/in.htm 18.
Understanding Growth Markets: China & India, Nielsen http://www.tnhindia.in/statistics_kit/statistics.pdf nineteen. Hong Kong Airlines’ Bauhinia Kilometers Programme http://www.hongkongairlines.com/en_HK/buddyclub/about