Singapore Airlines Marketing Mix: The 4Ps Analysis

Introduction and Product Overview

Singapore Airlines (SIA) is a full-service carrier that combines a high-level product with excellent flight service. As of 2011, SIA possessed 108 modern passenger planes — mostly Boeing 777 aircraft (PRESSWIRE, 2005) — whose average age was six years and three months (Singapore Airlines, 2012). SIA has accordingly achieved the reputation of possessing one of the world's youngest fleets of aircraft (PRESSWIRE, 2005). SIA is a member of Star Alliance and was the first airline to internationally operate the Airbus A380, the world's largest passenger aircraft, which is comfortably equipped to meet passengers' needs.

SIA has also diversified into aircraft handling and engineering. Its subsidiary SilkAir operates regional flights with smaller planes, while another subsidiary, Singapore Airlines Cargo, manages the airline's freighter fleet as well as the cargo capacity aboard SIA's passenger services.

SIA holds a 49% share in Virgin Atlantic and assists that airline in managing some of its routes. It is ranked among the top 15 carriers worldwide in terms of passenger revenues and is ranked 10th among international carriers. In 2010, the International Air Transport Association reported SIA to be the second-largest airline in the world by market value, at approximately 14 billion US dollars (Mutzabaugh, 2010).

Singapore Airlines divides its passengers into three classes. First class passengers are predominantly business professionals, mostly male, aged 25 to 45, and earning upwards of $50,000 per annum. The business class segment is split between business and leisure travelers, is predominantly male, and averages 32 years of age. Economy class passengers span all genders, ages, and socioeconomic levels and travel mostly for leisure.

Pricing Strategy

Fares on SIA are moderate and competitive, reflecting the average cost of airfare in the industry. Tickets are expensive for First Class and Business Class but affordable for Economy Class, with SIA frequently offering promotional deals. Economy Class passengers often pay only 8.5% of the First Class fare and 14% less than the Business Class fare, while the Business Class fare itself is 60.7% lower than First Class. First Class passengers, in turn, receive a quality of service commensurate with the premium they pay.

Promotion and Brand Identity

SIA employs differentiated market targeting, addressing each of its passenger classes according to their profession, travel needs, requirements, and personal characteristics. SIA also offers loyal customers Frequent Flyer programs — such as KrisFlyer and the PPS Club — which have become quite popular among its regular travelers.

SIA's primary positioning strategy and most recognizable symbol is the Singapore Girl — the iconic flight attendant figure that has become the airline's defining brand image. The Singapore Girl, whose attendants are dressed in a Malay Sarong Kebaya redesigned by Christophe Galibert in 2008, has become an icon of excellence, quality, attentive hospitality, and overall passenger comfort. Rather than relying on traditional mass-market advertising, SIA uses the Singapore Girl to carry its brand message. It does this by invoking the image of the traditional Asian woman and channeling it into a distinctive brand identity. The airline thereby associates itself with qualities such as charm, grace, and elegance (Chan, 2000). Its tagline, Singapore Airlines — A Great Way to Fly, disseminated across both online and offline media — including social media, television commercials, and print — has become associated with the Asian tradition of class, quality, and refinement.

As of 2007, the airline has employed the USA-based advertising agency TBWA to manage its creative advertising campaigns.

SIA's promotional focus is on quality and excellent customer service delivered in an innovative and caring manner (Smith, 2005). As one example, SIA recognizes the contemporary demand for speed and immediacy and therefore provides streamlined personal check-in services that allow passengers to bypass the delays of the standard check-in process. These services are supported by self-service kiosks and online check-in options.

SIA also serves each of its passengers, regardless of class, gourmet food in a friendly and courteous manner, with careful attention to detail. Cocktails, fine wines, and in-flight movies are offered free of charge across all cabins.

Without sparing expense on technology, SIA still manages to operate at attractive price points, offering deals that are comparable to those of budget airlines in the United States and Europe. A further element of its promotional strategy is its commitment to innovation: SIA, for instance, premiered the Raffles Class Space Bed, which provides passengers with restorative comfort during long-haul flights, and its seating provisions exceed those of most major airlines (PRESSWIRE, 2005).