Selling Boeing Jets in China Boeing Marketing

Selling Boeing Jets in China

Boeing Marketing Plan Outline

In defining a marketing plan for the promotion and sales of the Boeing 787 in China, the global market dynamics of the commercial aircraft industry need to be first considered followed by a framework for strategic marketing planning and execution. The extent of strategic market planning any aircraft manufacturer engages in will have a direct effect on their global ability to compete (Posey, 2008).

Global Market Dynamics

The global growth of mid-range commercial jets, ideally suited for the Chinese commercial jet marketplace, is expected to grow to $124B in 2012, representing nearly 1,400 in China alone (Posey, 2008) (MIT Lean Advancement Initiative, 2012). These jets are designed to seat between 66 and 90 passengers depending on the configuration ordered. Figure 1, Global Market Dynamics of the Commercial Aircraft Industry, shows the factors Boeing must orchestrate in their strategic marketing plans, with specific focus on Asia Pacific factors shown in the following graphic. For Boeing the challenge is to keep the global requirements across all these regions balanced and moving forward while executing in the Chinese market.

Figure 1: Global Market Dynamics of the Commercial Aircraft Industry

Source: (Based on an analysis of the MIT Lean Advancement Initiative, 2012)

Strategic Marketing Planning and Execution

The following is a marketing plan is for launching and selling the Boeing B787 into the Chinese domestic market:

1. Marketing Strategy and Value Proposition

Boeing has chosen to pursue a strategy of energy efficiency and product customization in the Model 787. These two aspects of the jet must be used as the basis of the unique value proposition, illustrating energy savings as a critical design criterion, in addition to the ability to customize the design of the jet's electronics, cabin, avionics and appearance. Boeing is a world leader in the ability to bring product customization into commercial jet production (Kumar, Wellbrock, 2009).

2. Product Strategy

Concentrating on the ability to customize the Boeing B787 to the unique needs of each Chinese airline will be a the differentiator through the unique New Product Development and Introduction (NPDI) process will be key to the company's success in penetrating this market. The challenge for Boeing will be to source high quality components in China to both comply with the governments' requirements while at the same time ensuring quality standards internally.

3. Promotional Programs and Initiatives