Essay on Marketing Plan for United Airlines - 2767 Words

Marketing Plan for United Airlines Jayne Diaz BUS 620: Managerial Marketing Professor David Kalicharan February 20, 2012 Marketing Plan for United Airlines Airline companies are becoming more and more competitive as the low budget discount airlines are becoming popular. It is key for airlines to differentiate themselves among the various airlines to choose from, and United Airlines wanted to ensure that it offered products and services for all marketing segments. â€Å"United realized that it needed to develop a customer-centric future strategy and galvanize its organization to improve the customer experience for its most valued customers† (Prophet, 2012, para. 1). This paper discusses the marketing plan for the newly merged†¦show more content†¦Like many organizations, United Airlines uses market segmentation to help define the target market and become a leading choice for airline travelers. United Airline’s marketing firm uses psychographic segmentation, which divides customers according to their lifestyle, as a way to successfully target specific customers. United Airlines used questionnaires to classify their potential customers by their motivations and identified nine motivational segment profiles which are: global executives, schedule optimizers, corporate troopers, mile accumulators, reluctant travelers, tour takers, quality vacationers, travel seekers, and frugal flyers (The Times 100, 2003, p. 2). The reasons why travelers choose to fly United varies. For example, some may choose this airline because of price, while others choose it because of their frequent flyer program, schedules, or other services. As a legacy airline, it would not be productive for United to try and gain business from those that are more concerned with lower ticket fares. Instead, the airline chose to focus on the frequent business travelers as their core market. By segmenting the customers, United chose to focus on the global executives as their target market. â€Å"These folks made up only 9 percent of United’s travelers, but they represented 46 percent of United’s revenue† (D i Frisco, 2011, para. 2). By using psychographic segmentation,Show MoreRelatedEssay American Airlines Business Analysis1569 Words   |  7 PagesIn April 1992, American Airlines launched Value Pricing -- a radical simplification of the complex pricing structure that had evolved over more than a decade following deregulation of the U.S. domestic airline industry. American expected that the new pricing structure would benefit consumers and restore profitability to both American and the industry as a whole. 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