Airline Research on Marketing Strategy Improvement
Introduction:
Kenya Airways Ltd is the national carrier of Kenya. The company was established in 1977, after the dissolution of East African Airways. It was privatized in 1992, and it is publicly listed I in the National Security Exchange.
The problem:
Kenya airway has been experiencing low passenger numbers that has resulted to it making losses over the recent few years. This financial year, it posted a net loss of ksh 7.8 billion.
It started experiencing this problem 3-4 years ago. This is occasioned by the following:
Lack of marketing intelligence
For a long time, Kenya Airways has enjoyed monopoly operations in the African market and all connections into and out of Africa. They did not realize when this changed and competitors slowly encroached and took over their traditional markets.
1) Euro crisis
The financial crunch that has affected mainly Europe and America has greatly affected the traditional tourist markets into Kenya and the rest of Africa.
2) Wrong products for the various market segments
Kenya Airways’ market can be put into various segments all with different needs. The wrong products were applied to the wrong segments and this led to customer dissatisfaction.
3) Unsuitable aircrafts.
Recent aircraft acquisitions by Kenya Airways saw them take delivery of the Embraer aircrafts which are small and do not have enough cargo capacity that their market demands.
4) Competitors
As Kenya airways continued experiencing these problems, its competitors moved in by taking advantages of its weak points and in the process taking over the market share that it previously occupied.
2. Research Objectives
When the problem has been carefully defined, the marketing manager and researcher must set the research objectives, that is, the outputs or end results of the research effort. Titus Muasya out put and end results
3 (Research Design) Mwaura
Descriptive Research Design - Involves describing certain variables of
Kenya Airways Ltd is the national carrier of Kenya. The company was established in 1977, after the dissolution of East African Airways. It was privatized in 1992, and it is publicly listed I in the National Security Exchange.
The problem:
Kenya airway has been experiencing low passenger numbers that has resulted to it making losses over the recent few years. This financial year, it posted a net loss of ksh 7.8 billion.
It started experiencing this problem 3-4 years ago. This is occasioned by the following:
Lack of marketing intelligence
For a long time, Kenya Airways has enjoyed monopoly operations in the African market and all connections into and out of Africa. They did not realize when this changed and competitors slowly encroached and took over their traditional markets.
1) Euro crisis
The financial crunch that has affected mainly Europe and America has greatly affected the traditional tourist markets into Kenya and the rest of Africa.
2) Wrong products for the various market segments
Kenya Airways’ market can be put into various segments all with different needs. The wrong products were applied to the wrong segments and this led to customer dissatisfaction.
3) Unsuitable aircrafts.
Recent aircraft acquisitions by Kenya Airways saw them take delivery of the Embraer aircrafts which are small and do not have enough cargo capacity that their market demands.
4) Competitors
As Kenya airways continued experiencing these problems, its competitors moved in by taking advantages of its weak points and in the process taking over the market share that it previously occupied.
2. Research Objectives
When the problem has been carefully defined, the marketing manager and researcher must set the research objectives, that is, the outputs or end results of the research effort. Titus Muasya out put and end results
3 (Research Design) Mwaura
Descriptive Research Design - Involves describing certain variables of
References: KOTLER, P and ARMSTRONG, G (2008) 12e Principles of marketing. New Delhi: Pearson Education Inc.