Emirates vs Etihad: 7 P's Marketing Mix Analysis

Introduction

This paper discusses Etihad Airways, the second-largest airline of the United Arab Emirates (UAE), and compares it to Emirates Airlines, the number one airline of the Middle East and the fourth largest airline in the world. The paper provides examples of the 7 P's of the extended marketing mix for each airline and presents a detailed marketing plan for Etihad Airways. The marketing plan includes how the plan will meet the business objectives and marketing objectives of Etihad Airways, as well as an action plan that can be used to monitor and evaluate the company's progress toward meeting its business goals and objectives.

Airline Profiles: Etihad Airways and Emirates Airlines

Etihad Airways is the second-largest airline in the UAE and the second flag carrier of the UAE, with its headquarters in Abu Dhabi and its main hub at Abu Dhabi International Airport. Founded in 2003, Etihad Airways offers over 1,000 flights every week aboard its fleet of passenger and cargo planes, including Airbus and Boeing jets. It reaches destinations all over the world — the Americas, Africa, Australia, Asia, the Middle East, and Europe. In 2015, it recorded revenues of more than $9 billion and currently employs more than 20,000 workers (Etihad Airways, 2015).

Sheikh Khalifa bin Zayed Al Nahyan issued the Royal Decree establishing Etihad Airways as the second flag carrier of the UAE; his purpose was to create an airline for Abu Dhabi. That airline grew immensely over the following decade. It recorded its first net profit of $14 million in 2011, in line with corporate guidance. It also took a 29% stake in Air Berlin that year, followed by a 10% stake in Virgin Australia, a 40% stake in Air Seychelles, a 49% stake in Jat Airways, a 51% stake in Air Serbia, and a 49% stake in Alitalia.

To enhance its visibility, Etihad Airways has sponsored numerous sports teams around the world, including the Baltimore Brigade (an arena football team in the U.S.), Manchester City F.C. in the UK (whose home stadium has been named Etihad Stadium), the Mumbai Indians (a cricket team in India), the Washington Capitals (an NHL team), and the Washington Wizards (an NBA team). Etihad was also the title sponsor of the 2009 Grand Prix in Abu Dhabi. In 2014, Etihad partnered with Major League Soccer (MLS) in the U.S. to become the Official Airline of the MLS. In 2017, it partnered with IMG Models to promote fashion shows.

Etihad offers a range of seating options in its newer aircraft, including a First Apartment on the Airbus A380-800 — a 39 sq. ft. space featuring an ottoman/bed, a 24-inch flat-screen TV, a vanity cabinet, and a bar. Its luxurious styling has made it one of the most appealing first-class cabins in the industry. Even more impressive is The Residence, which boasts 125 sq. ft. and includes a private living room, bedroom, and bathroom, along with a reclining sofa and a 32-inch TV. The Business Studio seat offers a cozy yet private arrangement with a TV and a leather chair that converts into a bed. Economy seating is also available.

The company's slogans over the years have included: From Abu Dhabi to the World; The World Is Our Home, You Are Our Guest; Flying Reimagined; and Choose Well. It currently serves 75 destinations and operates a fleet of 116 aircraft.

Emirates is the largest airline in the Middle East, operating nearly 4,000 flights every week out of Dubai. Its network extends to 140 cities worldwide, spanning 81 countries across 6 continents, making it the fourth-largest airline in the world by number of passengers flown. Like Etihad, Emirates' fleet consists of Airbus and Boeing jets, including more than 100 Airbus A380s and more than 150 Boeing 777s.

Emirates employs more than 60,000 workers and generates revenues of more than $24 billion annually. Since its founding in 1985, the airline has increased the number of passengers flown every year. To boost its growth and visibility, Emirates has sponsored the Spinnaker Tower in Portsmouth, England; Cricket Australia; the Pro Arch Tournament; and Lord's Taveners. It has been a sponsor of FIFA and the FIFA World Cup and is also a sponsor of the football club Real Madrid. In the U.S., it has sponsored the U.S. Open and is the official airline of the Los Angeles Dodgers. It has even featured Hollywood actress Jennifer Aniston in two commercials (Emirates, 2018).

The company's slogans have included: So Be Good to Yourself, Fly Emirates; From Dubai to Destinations Around the World; Fly Emirates, Keep Discovering; Hello Tomorrow; and Fly Better. It serves 180 cities and operates a fleet of 258 aircraft.

The 7 P's of Marketing: Comparative Analysis

Ries and Trout (2009) state that "marketing is not a battle of products, it's a battle of perception" (p. 23). To help shape consumer perception, the marketing mix gives a company a framework for thinking about how consumers are influenced by each of the 7 P's: 1) product, 2) place, 3) price, 4) promotion, 5) people, 6) processes, and 7) physical evidence. Each of the 7 P's should be designed to help the company achieve its objectives.

Etihad: For Etihad, the main objective is to "take a holistic approach to corporate responsibility alongside our efforts to be the world's best airline" (Our Responsibility, 2018). Etihad states that all of its efforts "are focused around adding value: to our people, our communities and our planet" (Our Responsibility, 2018). It has defined these objectives in the following terms:

Growth is one of Etihad's biggest objectives, which the company defines as "delivering solid performance through increased passenger and cargo volumes" (Our Responsibility, 2018). While expanding its services, Etihad also wants to enhance its image by demonstrating a commitment to sustainability, environmental responsibility, and community engagement.

Emirates: Emirates Airlines has as its main objective the goal of being a leader in the industry, ensuring customer satisfaction, and growing every day. The core of this objective consists of the company's main values:

By focusing on excellence, agility, innovation, leadership, and reliability, Emirates is able to define the quality of service and products it seeks to offer its clients.

Product is the good or service being sold to the consumer. In many cases it also encompasses a brand, a concept, and a perception — as Ries and Trout (2009) note. Product also refers to the advantages it can offer consumers, meaning what makes it better than alternatives on the market or what features make it uniquely appealing. Tracy (2004) states that when it comes to product, one should "develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time." That means assessing whether a company's product actually serves its business objectives.

Etihad — First example: The main product Etihad offers is flights out of Abu Dhabi. This meets the company's main business objective of providing its community the opportunity to grow together. The company's slogan "From Abu Dhabi to the World" begins with its ability to provide travelers flying into and out of Abu Dhabi the opportunity to do so with ease and comfort.

Etihad — Second example: Another product Etihad offers is a range of seating options, from economy to business class. This meets the company's objective of providing quality to customers and meeting their needs, whatever they may be. Whether a passenger is looking for an inexpensive seat or a seat that offers a quality meal, a workspace, or rest, Etihad delivers. Its unique seating designs — The Residence Apartment, the First Apartment, and the Business Studio — are each tailored to specific clientele.

Emirates — First example: The main product of Emirates is its wide range of destination flights. With service to over 150 cities across six continents, Emirates is one of the leading airlines in the world for a simple reason: it goes everywhere people want to be. This meets the company's objective of being an industry leader by providing service to the major destinations clients seek.

Emirates — Second example: Emirates also offers a distinctive range of seating and dining experiences, including an onboard bar, first-class showers, and first-class private suites. While not quite on par with Etihad in terms of styling sophistication, Emirates compensates in terms of quantity and scale. This meets Emirates' business objective of providing excellence of service.

How They Are Different/Same: Etihad and Emirates are similar in that both focus on providing flights to destination cities around the world and offering a range of seating to accommodate every type of traveler. They differ in their emphasis: Etihad offers some of the most elegant, private, and luxurious seating of any airline in the world, while Emirates is primarily focused on moving as many passengers as possible to as many destinations as possible.

Place refers to where the company's products or services can be obtained. Providing consumers with access to goods or services can make all the difference in a company's success. Tracy (2004) notes that the company "must make the right choice about the very best location or place for the customer to receive essential buying information on the product or service needed to make a buying decision." Whatever the product, place is important because it is what allows the message about a product or service to reach its target audience.

Etihad — First example: Etihad is headquartered in Abu Dhabi, with the purpose of providing an airline specifically for people traveling to and from Abu Dhabi in the UAE. This aligns with the company's business objective of providing new services for its community and helping people to grow together.

Etihad — Second example: Etihad has expanded its reach by acquiring stakes in several well-known airlines, such as Virgin Australia and Air Berlin, and has extended its service around the world to provide more "place" for its consumers. This is in line with its business objective to grow with its consumers.

Emirates — First example: Emirates is based in Dubai and serves as the number-one airline in the Middle East. This is consistent with its business objective of leading the Middle Eastern airline industry by being the most popular and serviceable airline for air travelers in the region.

Emirates — Second example: Emirates ranks fourth in the world thanks to its nearly 200 destination cities. Place is at the top of Emirates' strategic priorities and is one of its most important business objectives — to be everywhere and serve everyone. By expanding its reach across every continent save one, Emirates has established a presence virtually everywhere, giving it tremendous access to the global market.

How They Are Different/Same: Etihad and Emirates are similar in that both are based in the UAE. However, Etihad is based in Abu Dhabi while Emirates is based in Dubai; each therefore serves a particular region of the UAE with a particular clientele. They also fly to different cities, so their "place" abroad is distinct from one another.

Price refers to the pricing strategy a company uses to sell its products or services. The key is to identify what customers are willing to pay and price accordingly. There are a variety of strategies available, from the low-price economy strategy to the luxury high-end strategy. It all depends on the brand image the company seeks to cultivate. As Tracy (2004) points out, sales, discounts, and incentives all play a role in how prices are determined and for which customer segment.

Etihad — First example: Economy tickets are generally priced according to industry standards, so price is not a major differentiating factor at this level. Etihad typically comes out slightly ahead of Emirates in terms of economy pricing, though only marginally. This helps Etihad achieve its business objectives by positioning itself in accordance with industry norms.

Etihad — Second example: The extras and perks are where price becomes a major factor. Etihad uses luxury pricing to deliver a luxury experience for passengers who can afford significant upgrades — such as a personal, private shower in The Residence. This appeals to top-tier clientele who expect quality and are willing to pay for it, which aligns with the company's business objective of meeting consumer demands at every level.

Emirates — First example: Similar to Etihad, Emirates prices its economy tickets for budget-conscious travelers. While perhaps slightly more expensive than Etihad overall, Emirates compensates with the fact that it offers more destinations. This allows Emirates to meet its business objective of being everywhere for everyone.

Emirates — Second example: Like Etihad, Emirates also offers luxury seating at a luxury price. The pricing strategy for its premium compartments is in line with industry standards, so it is not dramatically different from Etihad's. The same principle applies: economy class seats receive one pricing strategy, while upper-class seats command another, because consumers associate high price with high quality in the premium cabin space.

How They Are Different/Same: When it comes to pricing, both Etihad and Emirates follow the same broad strategies: economy pricing for lower-class tickets and luxury pricing for upper-class tickets. This enables both airlines to appeal to target consumers across different market segments.

Promotion refers to the ways in which a company promotes itself, whether through sales tactics or advertising — direct or indirect. Tracy (2004) states that "large and small companies in every industry continually experiment with different ways of advertising, promoting, and selling their products and services." It is therefore important for companies to vary their promotional activities over time so that their marketing approach does not become stale.

Etihad — First example: Etihad sponsors Major League Soccer in the U.S., making itself the official sponsor of the MLS, which gives it great visibility in America. As football (soccer) is a top international sport, this kind of promotion positions Etihad as a strong brand for U.S.-based travelers flying overseas. This meets the company's business objective of expanding its market by increasing brand visibility.

Etihad — Second example: Etihad has developed numerous catchy slogans over the years to build a brand image that is appealing to consumers. From "Flying Reimagined" to "Choose Well," Etihad promotes itself as an industry leader in innovation and quality, in line with its business objective of being a top-tier airline.

Emirates — First example: Emirates used Hollywood actress Jennifer Aniston to promote its airline — a significant promotional move, as major celebrities rarely appear in advertising. Aniston is globally recognized, so having her as the face of the company is a powerful promotional tool. This aligns with Emirates' business objective of being the best in the business: a top-tier celebrity spokesperson projects a top-tier brand image.

Emirates — Second example: Emirates is the official airline of the Los Angeles Dodgers, one of the most globally recognized major league baseball teams in the world. This places Emirates on a global platform and significantly enhances its brand appeal. Again, this aligns with the business objective of excellence: when you sponsor major names in sport, you associate your brand with the best.

How They Are Different/Same: Both airlines seek to sponsor prominent names in sports for publicity and brand promotion. Emirates distinguishes itself further by using a major Hollywood celebrity. Etihad, meanwhile, has also looked beyond sports — for instance, into the fashion industry. Both have therefore found promotional avenues outside of popular sports as well.

People refers to the staff, workers, owners, and managers who make the company run. People shape workplace culture, keep customers satisfied, and communicate the company's vision. Tracy (2004) states that the best way for a company to succeed is to hire the right people for the right job.

Etihad — First example: Etihad provides excellent customer service through its frequent flyer program, which gives members the ability to shop online through its store using discounts. What makes this distinctive is that Etihad also has agreements with other airlines, allowing members to access those airlines' portals as well. This is in line with Etihad's business objective of providing its customers with more choices.

Etihad — Second example: Etihad has also benefited from strong leadership throughout its history — from James Hogan to Peter Baumgartner. These leaders have consistently made sound decisions about investment and expansion, in line with the company's aim to be a serious competitor in the global airline industry.

Emirates — First example: Emirates, like Etihad, relies on strong leadership to bring its vision to market. Leaders such as Tim Clark and Ahmed bin Saeed Al Maktoum have been instrumental in growing the company into one of the premier airlines in the world, in keeping with the business objective of being the best in the industry.

Emirates — Second example: Emirates has also been deliberate about placing the right people in the right roles. That is why Jennifer Aniston became the company's spokesperson in 2015: she possessed the charisma and global celebrity needed to spread the word about the company and expand its appeal. This too has been in line with the company's business objective of being the best in the business.

How They Are Different/Same: When it comes to people, both Etihad and Emirates share the same outlook: people matter. They focus on putting the right individuals in place to develop their respective companies and keep customers satisfied. Both understand the power that people play in the success of an airline.

Processes refer to the manner in which the product or service is delivered to the consumer. Delivery is typically a central part of the overall customer experience. Tracy (2004) states that a company "should develop the habit of thinking continually about how you are positioned in the hearts and minds of your customers. How do people think and talk about you when you're not present? How do people think and talk about your company? What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others?" By answering these questions, a company can begin to understand whether its processes are working well.

Etihad — First example: Etihad puts the customer at the center of its service delivery: "We have developed some great ways for you to enhance your journey with Etihad. Whether you are looking for additional services at the airport, more space on board or want to personalise your travel experience, then we have some great options for you" (Etihad Airways, 2018). By allowing the customer to customize the service process, the company aligns itself with its business objective of providing personalized service to each client.

Etihad — Second example: By allowing flyers to choose from onboard services, airport services, and travel services, Etihad further customizes the way it delivers its experience. Flyers can shop, upgrade, book hotels or rental cars, and lounge in the airport, among other options. There is virtually no limit to how far the total travel experience can be personalized, which is also in line with the company's aim to treat every customer well.

Emirates — First example: Emirates provides numerous options for flyers, much as Etihad does. This aligns with Emirates' business objective of being the industry leader. By making every possible option available, Emirates reinforces its position at the top of the industry.

Emirates — Second example: Emirates gets passengers to more destinations than any other Middle Eastern airline. Its service delivery process is therefore engineered to excel in terms of reach, which is consistent with its business objective of being the number one airline in the industry.

How They Are Different/Same: Both Etihad and Emirates share the same fundamental idea about winning customers: provide as many options as possible when flying and traveling. Their difference lies in how those options are delivered. Etihad focuses on seating and onboard customization, while Emirates focuses on the breadth of travel destinations available.

Physical evidence refers to how the product or service is packaged — the brand, the brand image, the layout of the business, its visual identity, the environment in which it is sold, and so on. Tracy (2004) states that "packaging also refers to your people and how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your customer's confidence about dealing with you." The way a company presents itself will impact how consumers receive what it is offering.

Etihad — First example: Etihad presents itself as a step above all other airlines by providing the finest in everything — from airport lounges to aircraft interiors to seating and dining. The airline presents itself and its people with an emphasis on exquisite form and elegance. This is in line with its business objective of growing with its consumers to be the best it can be.

Etihad — Second example: Etihad's brand is built on a commitment to values and principles that position the company as a benchmark setter. Its brand represents status and sophistication, cultivated through consistent packaging as a leader in the UAE airline industry. This aligns with its business objective of setting industry standards.

Emirates — First example: Emirates presents itself with professionalism in its employees' appearance. Flight attendants are professionally dressed and groomed to ensure client satisfaction, in line with the company's aims of reliability and leadership.

Emirates — Second example: Emirates also delivers its services in a top-tier style, with innovative designs that appeal to passengers who want the latest in their flying experience. From the design of its seats and cabins to the presentation of its logo, Emirates projects style and class. Its packaging is sleek and elegant, consistent with its business objective of being an industry leader.

How They Are Different/Same: Both Etihad and Emirates focus on packaging their services and products at the highest standard. From cuisine to the attire of their employees, both put the best possible appearance on their offerings, adopting the same fundamental approach — emphasizing elegance and sophistication above all else.