The Marketing mix of Singapore Airlines analyses the 4Ps of Singapore Airlines, including Product, Price, Place, and Promotions. Singapore Airlines is associated with the airline industry and is the flag carrier of its country. It is majority-owned by its government and by Temasek Holdings. The company was founded as Malayan Airways in 1947 and commenced operations as Singapore Airlines in the year 1972 October 1st. It operates with the help of several airline-related subsidiaries and is allied with Star Alliance. Singapore Airlines was selected as the launch customer of the largest passenger aircraft in the world, Airbus A380. It faces competition from the following airlines.
About Singapore Airlines
- Type: Airlines
- Industry: Aviation
- Founded: January 28th 1972
- Founders: Lee Kuan Yew, Goh Keng Swee, Hon Sui Sen
- Headquarters: Singapore
- Area served: Over 130 cities in 60 countries
- Current CEO: Goh Choon Phong
- Number of employees: 27,000
- Major products: Passenger and cargo transportation
Table of Contents
Singapore Airlines Product Strategy
Singapore Airlines occupies the tenth position in terms of carrying international passengers. By the end of January 31st, 2017, it had a fleet of 111 aircraft, including Boeing 777, Airbus A380, Airbus A350, and Airbus A330.
- Expanded Flight Services: They are increasing flight frequencies to several destinations, returning some routes to pre-pandemic levels, and even exceeding them in some instances. This includes increased services to key markets like Ahmedabad, Beijing, Shanghai, Copenhagen, Da Nang, Darwin, Melbourne, Perth, Dubai, Tokyo-Haneda, and Seattle.
- Use of Various Aircraft Types: Singapore Airlines is utilizing a mix of aircraft for different routes, including the widebody Airbus A350-900 for medium-haul flights and the return of the Airbus A380 on the Singapore-Frankfurt route.
- New and Resumed Direct Services: Direct services are being reinstated on routes like Singapore-Barcelona, and new routes are being introduced, such as additional services to Melbourne and Perth.
- Enhanced Frequency on Existing Routes: Routes like Singapore-Kuala Lumpur are seeing an increase in frequency, offering more options for travelers.
- Adaptation to Market Demand: The airline is adapting its services to market demand, such as upgauging aircraft on routes to meet travel needs, like the change from Boeing 737 Max 8 to Airbus A350-900 for the Singapore-Male route.
Singapore Airlines Place Strategy
Singapore Airlines has its headquarters base at Airline House in the Changi area located in Singapore, and it operates from its hub at Singapore Changi Airport. It is a primary carrier in North America, Europe, and the Pacific. It has extended its global presence to ninety cities in nearly forty countries, including Dubai, Australia, Thailand, Bangkok, the United States, and the United Kingdom.
It has a widespread distribution and sales network, including services of its website, affiliated portals and companies, tour operators, and travel agents for booking tickets and offering related services. Singapore Airlines has a trained and capable workforce that includes 24,574 employees by the end of the financial year 2015-16 to help in speedy and efficient operations.
- Global Network Expansion: The airline is increasing flight frequencies to numerous destinations, including key markets like Beijing, Shanghai, and Melbourne, effectively expanding its global reach.
- Restoring Pre-Pandemic Services: Many routes are being returned to pre-pandemic levels, demonstrating a recovery strategy and commitment to regular service restoration.
- Strategic Deployment of Aircraft: Singapore Airlines strategically deploys various aircraft types, like the Airbus A350-900 and the Airbus A380, to optimize capacity and efficiency on different routes.
- Introduction of New Routes: The airline is introducing new routes and reinstating direct services between Singapore and Barcelona, catering to emerging travel demands and market opportunities.
- Enhancing Connectivity: With increased flight frequencies and new services, Singapore Airlines is enhancing connectivity, offering travelers more flexible and frequent options.
Singapore Airlines Pricing Strategy
At the end of the financial year 2015-16, the estimated revenues of Singapore Airlines were 15.28 billion dollars, and the net income was 804.4 million dollars. In the global arena, it occupies one of the top fifteen positions in terms of revenue passenger kilometers and, in 2010, was ranked in the second position in terms of market capitalization.
Singapore Airlines has targeted middle-class, upper-middle, business-class, and corporate customers who prefer reliability and comfort and, for extra benefits, are willing to shed additional bucks. It is a premium brand that offers unparalleled products and impeccable services to its esteemed customers. Singapore Airlines has adopted a premium pricing policy as it is sure of customer loyalty.
Singapore Airlines’ pricing and marketing strategy can be characterized by its dynamic and segmented approach, reflecting its position as a premium carrier in the global aviation market. Here’s an expert-like breakdown:
- Premium Pricing for Luxury Services: Singapore Airlines is known for its high-end services, especially in Business and First Class. They maintain a premium pricing strategy for these segments, offering luxury experiences that justify the higher cost.
- Dynamic Pricing Based on Demand: The airline employs dynamic pricing, adjusting fares based on demand, seasonality, and route popularity. This approach helps in maximizing revenue while staying competitive.
- Segmented Pricing Structure: They offer a range of fare types within each cabin class, from more restrictive, budget-friendly options to flexible, higher-priced tickets catering to different customer needs and preferences.
- Strategic Promotions and Partnerships: Singapore Airlines frequently rolls out promotional fares and partners with other entities (like credit card companies or travel agencies) to offer special deals, attracting a broader customer base.
- Loyalty Program Benefits: Through their KrisFlyer loyalty program, they provide value to frequent flyers, offering redeemable points and tier-based discounts, which helps customer retention and encourages repeat business.
Singapore Airlines Promotion Strategy
Singapore Airlines has launched the Frequent Flyer program to reward its loyal customers by offering several incentives. A regular passenger can earn miles and get several benefits. The company has implemented Pull and Push marketing strategies to garner a large customer base. It advertises with the help of ad campaigns in electronic media like television and print media like brochures, banner advertising, and newspapers. Singapore Airlines has also taken the help of social media platforms and advertisers via its website and associated portals with platforms like Blogs, Facebook, Twitter, and YouTube. It promotes direct dealings and stays in contact with frequent flyers by messaging and emailing offers and incentives at periodic intervals.
Some Recent Video ads and Print ads of Singapore Airlines are:
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