..award-winning service in all classes, which is matched or exceeded only by very few other carriers such as Singapore Airlines. Sixth, clever marketing - for example, Emirates, not Lufthansa - was named official carrier of the 2006 FIFA World Cup hosted by Germany - has created a very strong brand awareness worldwide. Finally, since the UAE's currency is firmly pegged to the U.S. dollar, Emirates has benefited, at least in recent years, from an additional devaluation-related cost advantage, especially vis-a-vis its Eurozone-based rivals." (2004)
Strengths of Emirates Airline Identified
The work of Knorr and Eisenkopf (2004) state that Emirates Airline weaknesses are really hard to pinpoint however, derived from what is a "notoriously unreliable...source...some posters on travel-related internet blogs are complaining about (allegedly) slipping service standards in general and lack of consistency in service quality in particular." Identified in terms of 'opportunities' presenting to Emirates Airline is the "most important contributing factor to Emirate's success, and a huge opportunity for future growth...is Dubai's very favorable location." (Knorr and Eisenkopf, 2004) Dubai is located at the "crossroads of some major passenger and cargo flows, the economic importance of which is set to grow in parallel with the rise of the near-by emerging economies." (Knorr and Eisenkopf, 2004)
The UAE's government has experienced great success in the negotiation of free-trade agreements and with all major economies which is believed to have the potential to increase air travel demand to and from the UAE and as well "the entire Arabian peninsula has been one of the fastest growing regions worldwide." (Knorr and Eisenkopf, 2004) the countries neighboring Dubai have been on a path to progressive liberation of the airline markets presently potential for new growth and as well the decision of Emirates to "operate a huge fleet of A380 aircraft will enable the airline to continue to grow..." (Knorr and Eisenkopf, 2004) Noted in the work of Knorr and Eisenkopf (2004) as the biggest threat to Emirates success is that instability of the political climate in the Middle East. Stated additionally as a threat is "the increasing lobbying by some of its competitors in core markets such as Australia, France and Germany, as well as in large untapped ones like Canada..." (2004)
THE SUCCESS of AIRLINE BRAND (EMIRATES AIRLINES)
CHAPTER THREE
LITERATURE REVIEW
The work of Kleymann and Seristo (2004) entitled: "Managing Strategic Airline Alliances" states that in the marketing initiative and specifically in marketing of services such as "air transport, images in the eyes of customers and identities - as seen by the organizations themselves - are of utmost importance." Customers do not only buy transportation from one location to another location but at the same time, other dimensions of services are being purchased by customers as well which include:
1) Quality;
2) Dependability;
3) Punctuality;
4) Attention;
5) Friendliness;
6) Safety;
7) Life-style;
8) Nationality; and 9) Prestige, among others. (2004)
Brand identity can be viewed from four perspectives including:
1) Brand as a product;
2) Brand as an organization;
3) Brand as a person; and 4) Brand as a symbol. (Kleymann and Seristo, 2004)
Airline brands have traditionally been linked quite closely to "...national cultures, symbols of nations and personalities of executives, and the starting point for creating a successful alliance brand to replace member carrier brands..." (Kleymann and Seristo, 2004) Kleymann and Seristo (2004) state that brand image is representative of "the perceived values that make up the brand existence; these values are evaluated positively or negatively by potential customers and others in the market. Brand image is a perception, not necessarily a fact." (2004)
Brand image is also representative of the expectations of the customers and it has been demonstrated in research that "in service marketing the danger of creating expectations that are difficult to fulfill is a real danger indeed." (Kleymann and Seristo, 2004) in addition, brand image, directly affects the company internally and primarily through motivation of employees and thereby resulting in an effect on the productivity as well as the quality of the service provided. Kleymann and Seristo state that branding and brand strategy "concerns a wide spectrum of issues, it is not only about advertising and logos..." But include such as brand strategy components of:
1) Distribution channel policy;
2) Design of retail;
3) Customer interface;
4) Product design;
5) Service quality;
6) Pricing;
7) Advertising;
8) Corporate communications; and 9) Corporate actions and public relations. (2004)
Brand equity is described by Kleymann and Seristo as "...a set of brand assets and liabilities linked to a brand, its name and symbol add to or subtract from the value provided by a service to a firm and its customers. It represents a financial concept associated...
Emirates I have chosen several sources to provide me with information for my study of Emirates, the Dubai-based airline. The first source that I will discuss is Hoover's. This source is a business research firm, and it provides to its customer profiles on different companies. Hoover's provides a fairly comprehensive overview. Given that Emirates is not a publicly-traded company, finding accurate information about the company requires the use of a source
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Market Analysis � Emirates Anilines 37Market Analysis � Emirates AirlinesTABLE OF CONTENTS1 PART I 41.1 Macro-environment Analysis 41.1.1 PESTLE Analysis 41.2 Micro-environment Analysis 91.2.1 Five Forces Analysis 91.3 Internal environment Analysis 121.3.1 SWOT Analysis 122 PART II 162.1 Market Segmentation 162.1.1 Demographic Segmentation 162.1.2 Psychographic Segmentation 162.1.3 Behavioral Segmentation 172.1.4 Geographic Segmentation 172.2 Targeting 182.3 Market Positioning 182.3.1 Perceptual Map 192.3.2 4Cs of Positioning 223 PART III 243.1 Strategies for
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