Dreamliner 787 Case Study
Tara Lentini
Week 3 Case Assignment
Boeing: Dreamliner 787
Discuss the nature of the market structure and demand for the Dreamliner. What are the implications for Boeing and its customers?
The market structure for the Dreamliner is that of an oligopolistic nature which means there are few aircraft manufactures who sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft.
The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, “It’s not just an evolutionary step…it borders on revolutionary.” This statement is supported by many industry insiders. (Kotler & Armstrong, 2010, p188) With such support, the emotions of the airline companies jumped at the chance to place an order even with the understanding that the estimated time for delivery was at least 4 years and there was little research to support some of the added luxury amenities.
What examples of the major types of buying situations do you see in the case? Discuss the implications of each in terms of marketing strategy?
A new-task purchase is seen with the Dreamliner due to the fact that it is a new product being sold by Boeing. The buying team is comprised of numerous members and the team must decide on specifications regarding the product. The marketer (Boeing) “tries to reach as many key buying influences as possible but also provides help and information.” (Kotler & Armstrong, 2010, p173) The amenities of the Dreamliner will assist the buying team in making a decision whether or not the Dreamliner would be a good investment
Week 3 Case Assignment
Boeing: Dreamliner 787
Discuss the nature of the market structure and demand for the Dreamliner. What are the implications for Boeing and its customers?
The market structure for the Dreamliner is that of an oligopolistic nature which means there are few aircraft manufactures who sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft.
The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, “It’s not just an evolutionary step…it borders on revolutionary.” This statement is supported by many industry insiders. (Kotler & Armstrong, 2010, p188) With such support, the emotions of the airline companies jumped at the chance to place an order even with the understanding that the estimated time for delivery was at least 4 years and there was little research to support some of the added luxury amenities.
What examples of the major types of buying situations do you see in the case? Discuss the implications of each in terms of marketing strategy?
A new-task purchase is seen with the Dreamliner due to the fact that it is a new product being sold by Boeing. The buying team is comprised of numerous members and the team must decide on specifications regarding the product. The marketer (Boeing) “tries to reach as many key buying influences as possible but also provides help and information.” (Kotler & Armstrong, 2010, p173) The amenities of the Dreamliner will assist the buying team in making a decision whether or not the Dreamliner would be a good investment
References: Kotler, P., & Armstrong, G., (2010). Principles of Marketing. Upper Saddle River, NJ: Prentice Hall. Micke, Tobias, Articles Extra, Retrieved September 18, 2010 from http://www.articlesextra.com/boeing-787-dreamliner.htm