Sawyer Grow

BUAD 320 Marketing

Spring 2016

Boeing Company: Commercial

Purpose
Marketing is an important aspect of a company and is vital for a company to be
successful. By definition, marketing is the process by which companies create value for
customers and build strong customer relationships in order to capture value from the customers
in return. This paper is going to outline and analyze Boeing as a company and as a marketer. It
will talk about their strengths and weaknesses, analyze their industry, analyze its marketing mix,
and discuss its competitive advantage over other companies.
Executive Summary
Boeing is the worlds largest aerospace company and leading manufacturer of
commercial airplanes defense, space and security systems. Headquartered in the United States,
Boeing is a top United States exporter, and the company supports airlines U.S. and allied
government customers in 150 countries. Boeing products and tailored services include
commercial and military aircraft, satellite, weapons, electronic and defense systems, launch
systems advanced information and communication systems, and performance-based logistics and
training.
Boeing has taken immense steps to insure their planes are the leader in their class. It has
introduced a new manufacturing process, which cuts down weight and saves fuel. The focus of
this plan is to bring value back to Boeing customers and lower operating cost for their aircrafts.
By offering more fuel-efficient aircraft, Boeing is able to provide a 13% increase in
overall fuel economy compared to their competitors. New technology, such as lighter fuselage
and better aerodynamics, has helped Boeing stay at the forefront of the market. This has given
Boeing an advantage in foreign markets where Airbus, their arch rival, had been dominant.
Boeing is hoping these added features and benefits will influence airline to consider
Boeing when purchasing new aircraft. Boeing is concentrating their efforts not only on current
markets, but markets where Boeing has not had such a strong foothold. The Asian market is
expected to grow by 30% in the next 20 years. By increasing awareness of their company,
Boeing hopes to increase sales and have great market penetration in the emerging Asian markets.
(Boeing: Our Company)

Company Background
History

Ever since Boeing was founded in 1916 by William Boeing, it has soared to success
pun intended. The multibillion-dollar aerospace and defense corporation has had a unique history
with many milestones. After observing the Wright Brothers pursuit for flight and their
barnstorming adventures, William Boeing took his first plane ride with a barnstormer in 1914.
Barnstorming is the act of a pilot giving exhibitions of stunt-flying, participating in aircraft races,
in the course of touring country towns and rural areas. He became fascinated with airplanes and
shortly after built his first hangar. In 1916 Mr. Boeing founded the Boeing Airplane Company
where he began to build airplanes. The first airplane that he created was the Model C, which
became highly popular amongst the U.S. Navy. He began shipping the Model C aircrafts to the
Navy in 1917, just in time for the start of World War I.
In the next decade, Boeing kept their eyes to the sky, never looking down. In 1919 the
company created the first carrier aircraft, the B-1 to deliver airmail for the United States Post
Office. This part of their business took off rapidly nationwide due to the demand of faster
delivery services. In 1927, they then started their first passenger carrier business brand, Boeing
Air Transport, which would later on give birth to the United Airlines company that people know
today. During this time people were pushing the limits in the aviation world. Boeing and other
aircraft manufacturers were trying to build planes that would go the fastest, fly the farthest, be
the most efficient, be the biggest, and have the best maneuverability. This was a time of rapid
innovation. Amongst all of the creativity that was going on, Boeing started to produce many
models of fighter planes and carrier planes for the United States Military. Boeing would continue
to have strong relationships with all of the United States armed forces branches.
The Great Depression did not seem to slow Boeing down at all. Even through tragic
times, the company managed to find business and sell airplanes. Part of the reason for this is
because of how dependent the United States Air Force, Army, and Navy were on Boeings
airplane supply. As mentioned before, in 1931 the Boeing Air Transport branch formed into
United Airlines, which has performed successfully up until today. Shortly after that, Boeing
created the DC-3 model, which was their first passenger model airplane to turn a profit.
With the approach of World War II, Boeing started to get even more involved with the
military than they already were. In 1938 they created the Boeing 314 Clipper, which was a longrange flying boat plane and was heavily used during the war. Of course, the B-29 model played a
significant role in World War II because that was what the United States used to drop the atomic
bombs on Japan. A number of weaponry advances to airplanes were made during World War II
to help the United States close out the war.
In the 1940s through the 60s Boeing continued to push the limit. They broke the record
for speed and distance with their B-47 model. They also had a good test for their products during
the Korean War. Fighting against the Soviets in that war was a challenge and a great indicator of
how Boeing and the United States airplanes stood against other nations airplanes. In 1957,
travel by air exceeded travel by train and sea for the first time ever. This was a major indicator of
success for Boeing, especially in their commercial sector. The 1960s provided more
opportunities for military aircraft advancements with the Vietnam War. 1964 marked the year of
the first combat flight with Boeings A-4 models. This was also the time period where Boeing
developed their first military helicopter, the CH-47 Chinook.

The past 40 years have been nothing short of spectacular either. Boeing built the first
stage of the the three-staged Saturn V Rocket for NASA, which would be used for all nine of the
Apollo missions. This would only be the start of their outer space involvement. They also
became involved in Project Mercury, the International Space Station, as well as many other
aerospace projects. Boeing was also involved in creating the Space Shuttle Orbiter in 1981,
which was the first reusable spacecraft. In 1970 Boeing produced the world-famous 747 aircraft.
Boeing has produced over 1,500 747s to date. They then created the F-15 fighter jet, which
continues to be a strong asset to the United States Air Force. As of recent, in 2009 Boeing made
the 787 Dreamliner to solve the problem of fuel efficiency. The Dreamliner contains more
passenger space while utilizing 20% less fuel (A Century in the Sky).
Looking back at Boeings history, the company has been nothing short of incredible in
how it has influenced travel, wars, and our knowledge of outer space. They look to maintain this
good reputation in the future.
Mission
Boeings Commercial mission is quite simple. The mission is to provide a better way to
fly. Boeing states that it is committed to being the leader in commercial aviation by offering
airplanes and services that deliver superior design, efficiency and value to customers and a
superior flying experience to their customers (Boeing: Commercial). Boeing is all about
efficiency and value. It believes that its customers are getting the most value for their money
through excellent around-the-clock customer service, services, and products. Boeing also cares
about the bottom line of its customers in mind because it provides efficient products.
Industry Analysis
Boeing is in the Aerospace and Defense Products and Services industry, within the
Industrial Goods sector. According to Investopedia, this sector is a category of companies that
relate to producing goods used in construction and manufacturing. It includes companies
involved with aerospace and defense, industrial machinery, tools, lumber production,
construction, cement and metal fabrication. The sector is rather large, with a market
capitalization at more than $56 trillion (Yahoo Finance). Performance in this sector is dependent
on supply and demand for building construction and manufactured products. It follows the
performance of the S&P 500 quite closely, so when the economy contracts and there is less
spending, activity in the sector decrease. This is because companies in the sector will postpone
expansion and produce fewer goods.
The Aerospace and Defense Products and Services industry is also very large, estimated
to be worth around $1.72 trillion annually (Motley Fool). The commercial aircraft are estimated
to be worth $5.2 trillion in sales over the next 20 years for aircraft sized for 100 passengers or
more and $658 billion for smaller commercial aircraft. The industry is broken down into three
parts: aerospace and defense products and services, aerospace and defense major diversified, and
simply defense. The industry as a whole has a P/E ratio of about 18.9, a Price-to-Book ratio of

-16.0, and a Net Profit Margin of close to 7.5% (Yahoo Finance). Many companies in this
industry, like Boeing, specifically in the commercial aircraft part (aero), sell their aircrafts to
airlines or firms that hold planes on their balance sheets and lease them to the airlines to operate.
There seems to be a common misconception that this industry would fall under the
mature stage in its life cycle because it has been around for a long time, like Boeing, and that it is
hard to see what massive innovations can be made. Despite this, the industry as a whole would
definitely fall under the growth stage of their life cycle. Since 1980, air travel has grown 5%
annually (Wikipedia).

Profits are still being made, and there are two main players in the commercial aerospace
industry that have a strong grasp of the market. There is definitely much more room for growth,
and Boeing Commercial is still growing rapidly. From 2003 to 2014, Boeing commercial aircraft
order has increased from around 250 units in 2003 to being aver 1,500 units in 2014 (Boeing:
Commercial).

Figure 1 - Number of Aircraft Orders from Boeing (2003-2014)

Also, industry data shows that most of the growth in air travel has been met by an
increase in new nonstop markets and frequency growth, rather than by an increase in airplane
capacity and/or size. There continues to be a demand for increased nonstop flights and greater
frequency to meet traveler demands. With these demands, the aerospace product and services
industry, especially the commercial airplane section, still has room to grow.
Boeing has an arch rival in the industryAirbus. The two companies have been in a tight
race. From 2003 to 2013, both Boeing and Airbus each secured 50% of aircraft orders. Airbus is
a division of the multinational Airbus Group SE that manufactures civil aircraft. The company
headquartered in France is said to be truly at home all over the world. Their mission states that
they make the freedom of flight available by designing, manufacturing, and supporting the
worlds best aircraft. They believe that their customers and people around the world are united
by their passion for aviation and efficiency (Market Realist).
Airbus have both, narrow-body and wide-body segments, in their commercial aircraft
sector, which competes directly with Boeing. One thing that Airbus doesnt have that Boeing
does is a jetliner family of aircrafts. As a matter of fact, Airbus beat Boeing in orders in 2014
receiving 1,456 orders versus Boeings 1,432. With this in mind, one may think that Airbus is the
better company, but in that same year (2014), Boeing beat Airbus in terms of how many total
deliveries they made. Boeing delivered 723 (50.5%) of their 1,432 orders, while Airbus delivered
659 (45.3%) of their 1,456 orders. With a healthy backlog and higher productivity, Boeing is
poised to beat Airbus and reclaim the title as the largest aircraft manufacturer by revenue in the
coming year. In 2015, Boeing managed to take an early lead in orders against Airbus. Through
February of 2015, Boeing recorded 69 net orders while Airbus only managed to snatch 28
(Market Realist).
In terms of Boeings commercial aviation business, it really only has two other
competitors besides Airbus; Cessna Aircraft Company and Embraer. Cessna is a general aviation

company based in Wichita, Kansas. It was founded in 1927 by Clyde Cessna, and in 2014 it was
acquired by the much larger Textron conglomerate. The company is best known for its small,
piston-powered aircraft as well as its business jetliners (Wikipedia).
Embraer S.A. is a Brazilian aerospace conglomerate that produces commercial, military,
executive, and agricultural aircraft. The Brazilian company was founded in 1969 by the
Government of Brazil and had a net revenue of $5.7 billion in 2013. The company has emerged
as the worlds largest manufacturer of corporate jets, with capacities of up to 130 seats. This is
where Boeing faces some firm competition (Wikipedia).
The only area where Cessna competes with the much larger Boeing is in the business jet
segment. One direct comparison in models between the two companies is between the Cessna
Citation X versus the Boeing BBJ. Although Boeings version of this private jet costs $45
million more than Cessnas, the BBJ has significantly more thrust than the Citation X (52,600
pounds of force vs. 13,528) and also has a greater range (6,200 nautical miles vs. 3,070). Other
than this, Cessna Aircraft Company cannot compete with the wide range of aircraft models that
Boeing manufactures (Airplanes Comparison).
Environmental Trends
There are many environmental factors that impact the aerospace and defense products
and services industry. The thing that impacts this industry the most is the price of oil. If oil prices
are, like they relatively are now, then there will be more demand and efficiency in this industry
because airplanes use fuel. Things are looking relatively good for this industry as of late. Interest
rates are low, which makes financing projects, like building aircrafts, much easier. There is an
increasing demand in the emerging markets for aircraft. The worlds strongest economies are
becoming stronger and carrier-operating costs have decreased, due to the decrease in oil prices.
As a result of all of this, airplane orders have hit an all-time high.
With all of this good news, there is a difficulty. The difficulty is in successfully managing
the abundance of orders and being able to deliver all of the orders. Boeing and Airbus have been
notorious in the past about delivering less than are ordered in a year. There is already a backlog
of mire than 10,000 aircraft orders from Boeing and Airbus combined, so the recent demand for
more order may be a tall task for Boeing and the rest of the industry. Along with this are six
trends that commercial aerospace companies must make efforts to understand in order to be
successful. Those trends are as follows (Strategy &):
1.
2.
3.
4.
5.
6.

Rapid change in the supply chain.

The Importance of should-cost capability.
Incremental approach to innovation.
Bifurcated market.
More predictable maintenance cycles.
Aftermarket shift.

If Boeing, or any company in the commercial aerospace industry, figures out that they need
to recognize these trends and understand them, then they will inevitably be successful. They need
to become more methodical, in the areas of supplier management and innovation spending, as
well as make the right choices in a growth cycle thats offering tremendous options.

Marketing Strategy
Boeings marketing strategy is really quite simpleBoeing is a better way to fly. This
short phrase is their motto and they base everything that they do off of it. It is their identity.
From the television commercials that they air, to the aircrafts that they make, to their customer
support services, they strive to find a better way to fly. Boeing is committed to being the leader in
commercial aviation by offering airplanes and services that deliver superior design, efficiency
and value to customers and a superior flying experience to their customers. They have a
customer-driven marketing strategy because they are trying to satisfy their customers, who are
usually airlines and carrier. By providing aircraft that are efficient, comfortable, and innovative,
they enable their customers to satisfy their customers and maximize their bottom line.
Company Brand
One way that Boeing is different from its competitors is that it is forward-thinking.
Boeing is looking for ways to find a better way to fly in the future. While some competitors, like
Airbus, may be working on solving current problems or fine-tuning their current technologies,
Boeing is thinking about what is next for the world. What will the next trend be? What will make
us more successful in the future? What else can we pioneer? These are some questions that
Boeing asks itself. Boeing prides itself on being the first to do many things and break records,
and they continue to seek this.
Boeings brand promise is to stay great. The company was founded on greatness and has
had a lot of greatness in the past, so they promise to maintain that reputation. They were great
in the past because they assisted the United States in many wars, broke technological barriers,
and were first in many categories. They promise to provide a better way to fly by being great
back then and now.

If Boeing were a person, they would say something like this: I am Boeing Company. I
take care of building aircrafts that can provide my customers, who are carriers and airlines, with
the most comfortable flying experiences for their customers, while being the most profitable for
them.

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Companys Market
Market Segments
For Boeing, they have five main market segmentslarge wide-body airplanes, medium
wide-body airplanes, small wide-body airplanes, single-aisle airplanes, and regional jets. As of
2014, more than 50% of Boeings fleet came in the form of single-aisle airplanes. This is what
the market was demanding. For the other 50%, about 15% was small wide-body, 10% was
medium wide-body, 5% was large wide-body, and 20% was regional regional jets (Boeing:
World Regions). In the past, Boeing has tried to target all five of these segments, but going
forward they are nearly going to significantly decrease their large wide-body and regional jet
segments because there is so little demand for those. They are going to increase their single-aisle
aircraft segment because that has been the most popular aircraft type amongst their airline
customer, as seen below. Single-aisle aircrafts command the largest share of new deliveries, with
airlines needing approximately 26,730. These new airplanes will continue to provide growth for
low-cost carriers and will provide replacements for older, less-efficient airplanes (Boeing:
Market Fragmentation).

Customer Analysis
Most large companies sell to other large organizations. This is the case for Boeing. As
seen below, Boeing Commercial has a number of customers who have already made orders in
2016. Most of the customers are airlines, like United Airlines and Air China. Other customers
include the United States Navy, FedEx, and VIP Customers/Business Jet buyers. They have a
wide range of customers buying their commercial airplanes. Business buyer behavior plays a

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large role in this. Each customer has a different budget, preference, and pattern. For example, the
purchasing behavior of United Airlines, who bought 41 of their 737 airplanes, is much different
from Air China, who only bought six 777s. Boeings customers often times have teams or agents
who learn how to buy better, because buying a multimillion-dollar airplane is a complex
purchase. Because of the nature of the buying unit, more professional purchasing effort is needed
(Boeing: Commercial).

Overall Market
Overall, Boeings primary targets are LLCs (low-cost carriers that focus on point-to-point
flying) and the major airlines, like United Airlines. Boeing is targeting LLCs more as the
business model continues to grow due to more point-to-point flying is occurring. In 1994, LLCs
consisted of less that 10% of all point-to-point flights, but they now consist of more than 30%
(Boeing: World Regions). Many of these LLCs are popping up in emerging markets. As the rest
of Asia Pacific, Latin America, and the Middle East continue to grow, more short-haul flying
will be demanded.

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Competitive Advantage and Differentiation

Boeing has an arch rival in the industryAirbus. The two companies have been in a tight
race. From 2003 to 2013, both Boeing and Airbus each secured 50% of aircraft orders. Airbus
mission states that they make the freedom of flight available by designing, manufacturing, and
supporting the worlds best aircraft (Airbus). They believe that their customers and people
around the world are united by their passion for aviation and efficiency.
Airbus directly competes with Boeing. They have many models that directly compete to
models that Boeing has. One thing that Airbus doesnt have that Boeing does is a jetliner family
of aircrafts. As a matter of fact, Airbus beat Boeing in orders in 2014receiving 1,456 orders
versus Boeings 1,432. With this in mind, one may think that Airbus is the better company, but
in that same year (2014), Boeing beat Airbus in terms of how many total deliveries they made.
Boeing delivered 723 (50.5%) of their 1,432 orders, while Airbus delivered 659 (45.3%) of their
1,456 orders. With a healthy backlog and higher productivity, Boeing is poised to beat Airbus
and reclaim the title as the largest aircraft manufacturer by revenue in the coming year. In 2015,
Boeing managed to take an early lead in orders against Airbus. Through February of 2015,
Boeing recorded 69 net orders while Airbus only managed to snatch 28 (Market Realist).
How is Boeing differentiating from Airbus? Well Airbus has more of a presence in
Europe, where it is headquartered, and some part of Asia, while Boeing is dominant in North
America, South America, and some other parts of Asia. The market seems to be divided into
different geographical units, which is geographical segmentation.
Besides being segmented geographically, Boeing positions itself in its customers minds
differently as well. Boeing makes itself the more personal option to buying airplanes. They pride
themselves on being the better way to fly, which appeals to the hearts of their customers. They
are really looking to create the ultimate flying experience, bot just have the best aircrafts, like
what Airbus and others do. This can be seen in their aircraft design, comfort, and their customer
support system.
In terms of Boeings commercial aviation business, it really only has two other
competitors besides Airbus; Cessna Aircraft Company and Embraer. Cessna is best known for its
small, piston-powered aircraft as well as its business jetliners and the only area where they
compete with Boeing is in the business jet segment. Embraer has emerged as the worlds largest
manufacturer of corporate jets, with capacities of up to 130 seats (Wikipedia). This is where
Boeing faces some firm competition. Boeing differentiates itself from these two companies in the
same way. For one, Boeing has a much greater market share and has a variety of models that can
compete in different markets than Embraer and Cessna, but Boeing has the more personal feel.
They create an experience for their customers, while Cessna and Embraer do not. This is what
differentiates Boeing from anyone else.

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Value Proposition
In the commercial aircraft industry, Boeing is the company that can manufacture the
perfect aircraft that is sleek, comfortable, reliable, and efficient. Anything besides high-quality is
not Boeing-quality. Not only does Boeing create marvelous airplanes, but they also create the
ultimate flying experience for both their customers and their customers customers.
Marketing Mix
Product
Boeing brings the most advanced line of commercial airplanes in the market with a
comprehensive warranty package to support their products. Boeing Commercial offers nine
different products and services. They all complement Boeings mission of finding a better way to
fly. Some may have sub-models or categories, but their products include:
1. Boeing Business Jets
Boeing Business Jets are the highest quality escapes to private air travel. They
come very customizable to meet any needs in the private, business, or government
sectors. They are the definition of luxury and provide excellent value and unmatched
reliability (Boeing: Boeing Business Jets).
2. Boeing Next-Generation 737
The 737 is a passenger airplane with a not-so-typical cabin that provides a flying
experience that exceeds expectations. The aircraft is versatile, requires less maintenance,
and has low operating costs, which gives it a competitive edge that enables profitable
growth (Boeing: Next-Generation 737).
3. 737 MAX
The 737 MAX is almost identical to the previous plane mentioned, but it is part of
the MAX family of airplanes which are designed to deliver more of everything. Theres
more technology, new engines, new winglets, new flight deck displays and the passengerpreferred Boeing Sky interior, which has more seats to maximize profit potential. The
combination of having more profit for operators and more comfort for passengers makes
for a perfect airplane (Boeing: 737 MAX).
4. Boeing 747
The 747 series is one of Boeings larger passenger aircrafts, as well as one of the
most popular. The 747 offers First Class and Business Class sections, which enable
passengers to have the most private and premium accommodations. With more than 400
seats available, it allows for the opportunity to maximize the bottom-line potential of any
high-volume route (Boeing: 747-8).
5. Boeing 767

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The 767 is part of Boeings Freighter fleet. It has been built to maximize cargo
volume, have excellent fuel economy, make cargo handling easy, and hold a bigger load
than ever before. As a matter of fact, Boeing celebrated delivering its 100th 767 Freighter
earlier this month (Boeing: 767).
6. Boeing 777
The Boeing 777s unique combination of superior range, outstanding fuel
economy and passenger-preferred comfort has created long-range success for all carriers.
Recent upgrades to the 777 model has decreased costs, which boosts revenue. The 777 is
also ranked #1 with passengers (Boeing: 777).
7. Boeing 777X
The brand-new 777X is the largest and most efficient twin-engine jet in the world.
It has mastered performance and is on a whole new level. Also, the cabin interior is
inspired by the comforts and perks of the 787 Dreamliner and includes large windows, a
wider cabin, new lighting and enhanced architecture (Boeing: 777X).
8. Boeing 787 Dreamliner
The Dreamliner is the industry leader in terms of airplane technology. It is
dramatically changing the flying experience. It has remarkable fuel efficiency which
allows it to provide carrier with the flexibility to open new routes as well as optimize
fleet and network performance (Boeing: 787 Dreamliner).
9. Boeing Support and Services
Boeing brings the industrys largest portfolio of support and services. It is designed to
optimize the performance of their airplanes and operations and is backed by the
knowledge and expertise that cannot be found anywhere else. Their Parts Solutions,
Maintenance and Engineering Solutions, Flight Operations Solutions, and 24/7 Customer
Support provides a heavenly experience for their customers (Boeing: Services).

With all of the unique aircrafts that they create, it seems as though Boeing has a product
to suit any carriers needs or personality, or a consumers needs or wants. Although they may
seem different in many ways, they all come together in creating a better way to fly.
Price
As everyone may know, airplanes and jets are very expensive purchases, not only
because they cost a fortune to make well, but also because they can be sold for such high prices.
Following this is a chart displaying the average pricing of their commercial aircrafts and how
they have changed from 2014 to 2015.

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Boeings pricing strategy is linked to an environmental analysis. It is vital that they save
money if they want to be successful. They also need to be responsive to customer needs in order
to hold that high value. Boeing is striving hard to achieve economies of scale from its
procurement process to designing and manufacturing.
At the same time, Boeing utilizes a competition-based pricing strategy. Competitionbased pricing is when a company sets prices based on their competitors strategies, prices, costs,
and market offerings. This is usually done by setting their prices close to, or same, as their
competitors prices and adjusting as need be. This ensures that the company does not lose any
market share to their competitors low prices (FT Press). Boeing does this exact thing. They have
competitions with Airbus by undercutting the prices.
An example of this strategy being put in place was when Boeing was competing against
ValueJet. In 1995 ValueJet had an order of 50 100-passenger jets, so Boeing brought its price
down from $35 million, past its break-even price of $22 million, and all the way down to $19
million (Motley Fool). Of course, Boeing suffered major losses all around, but this shows the
extreme that Boeing is willing to go to maintain their market share.

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When comparing price to cost, it is apparent that Boeing is not super concerned about the
price against the cost of their products. They will do anything to have the majority market share
and to be the first brand that comes to their customers minds when they think of buying aircraft.
Place
Boeing distribution centers are strategically set up around the world and are linked by
advanced digital systems to guarantee prompt spare parts delivery. Up-to-the-minute inventory
information is available on demand to keep Boeing fleets operating at optimal productivity. This
is one important aspect of Boeings venture because they make it very convenient for their
customers to reach Boeing as well as get spare parts or help.
Promotion
The Boeing company is known around the world as the leading manufacturer of
commercial airplanes. The companys advertising campaigns close the gap between perceptions
about Boeing and what Boeing is truly all about as an aerospace company. Most of their
advertisements come in the form of television advertisements, printed newspapers and
magazines, and internet websites. Boeing also sponsors select major events, organizations and
projects that resonate with their business and brand strategies to enhance its brand presence and
visibility with its customers, key stakeholders, employees and communities where they live,
work and do business around the world.
Boeing creates a number of television ads in hopes to maintain their image as the leader
in aircraft manufacturing. One example of one of their television ads is called You Just Wait.
This advertisement is only approximately 30-seconds long, but it talks about the rapid steps and
growth that Boeing has taken in its lifetime, but then it shows what Boeing expects the world to
be like in the year 2116. It shows flying cars, travelling around the world in an hour, living on
Mars, and having solar satellites that provide earth with clean power (Boeing: Advertising &
Brand). It really is a unique ad in the sense that it shows that Boeing is thinking years ahead of
anyone else, which is why they are so great.
When comparing promotion to communication, they look almost identical. The way
Boeing promotes their company, through advertisements, is their way of communicating to their
customers that they are the best, most innovative aircraft manufacturer.
Marketing Channels
As mentioned above, Boeings main avenues of advertisement are television
advertisements, printed newspaper and magazine ads, and internet ads. Throughout all of their
advertising campaigns, Boeing looks to promote their motto, which is [Boeing is] A better way
to fly.

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They have multiple television ad campaigns titled, Thank You, or You Just Wait, or
Passion, to name a few. Their advertisements seem to really hit home in the customers hearts.
They convey the professionalism, class, and innovation that Boeing holds itself to.
They also do many print advertisements that are published in magazines, newspapers, or
other relevant print. They all convey the same message. Here is an example of a Boeing print
advertisement:

Analysis
When analyzing Boeing, a company that has been in business for 100 years, it is difficult
to find things that need improvementespecially in one as forward-thinking as Boeing. Their
marketing campaigns, especially their You Just Wait commercial, has really seemed to
kickoff. It really creates a personal connection with the customer. It also talks about a whole
future experience with Boeing. This seems to be the common theme for Boeingexperience.
Comparing that to Airbus marketing campaigns, Boeing has a more personal touch to
their commercials or advertisements. Boeing also seems to hold itself to a higher standard,
appealing to a higher class individual or company, while Airbus tries to please everyone. When
you please everyone, you have to appeal to the lowest common denominator. Thus isnt a bad
strategy because it reaches more people, but the prestige and brand image reflects that. Boeing
has a reputation of being an elite business. Airbus tries to be like this, but it is difficult when you
are appealing to such a broad audience.

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A S.W.O.T. Analysis is a good way to analyze companies. Here is Boeings S.W.O.T. Analysis:
Strengths:

Boeing has a strong global network and international presence. They also have a strong
presence in the domestic market. It is the U.S. governments second largest defense
contractor, which ensures ongoing business.
Boeing has strong international ties. It maintains strong relationships with its customers
and suppliers, helping it develop and build global partnerships to develop technologies
and design concepts.
Boeing has a wide array of jetliners catering to a large and diverse market. Their
predominant jetliner families include the 717, 737, 747, 757, 767, 777 families, 787
Dreamliner, and Boeing Business Jet families. These aircraft can meet a wide variety of
customer needs in various markets and niche segments. The company focuses on
developing technically advanced systems to gain an advantage over its competitors.

Weaknesses:

Boeings 787 Dreamliner gulps up cash. Production delays, costs overruns, and technical
problems in the Dreamliner project have drained a lot of cash out on the companys
projected estimates. This project has yet to generate positive cash flows for the company.

Opportunities:

Growing demand in Asia-Pacific, South America, and Europe. The aerospace industry
sees growing opportunities in these regions.
Boeing has a strong backlog and order growth. Boeings strong order growth in 2014 is
expected to continue in 2015 and beyond. It expects to see ongoing demand for 22,000
aircraft in the next 20 years. The strong backlog will keep Boeing busy in coming years.
In 2014, the backlog was $502 billion. Also, the rise in satellite demand creates
opportunities for the company.
There is a rising demand for defense products. Rising international tensions would
create a demand for defense and security products.

Threats:

Boeing faces stiff competition from domestic and international companies. Some of these
other companies are Airbus, Bombardier, Embraer. Boeings competition in the regional
market is intensifying.
Further defense cuts could hurt Boeings revenue. Reductions in the United States
defense budgets due to sequestration could subdue the performance of Boeings defense
segment.

Recommendations
If there was one area where they could improve their existing efforts, it would be to do
more advertising. They are a very large company and are recognized globally, but they could do
more television advertising, especially to showcase their brilliance. If they make more TV
commercials, then they will show television-watchers, who are also airline customers, how great

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and comfortable their airplanes really are. If more people want to experience a better way of
flying, then they will choose to fly on airlines that use Boeing aircraft, like United Airlines. If the
demand for United Airlines increase, then United Airlines will be forced to add more aircrafts to
their fleets, which will then create more opportunity for Boeing. If Boeing can create the craze of
flying a Boeing, similar to how there is a craze for wearing Nike shoes, then they will be
more successful. This can be done with more advertising.
Conclusion
In conclusion, Boeing, the leader in the aerospace and defense products and services
industry, is a forward-thinking company that has had a strong past, and will continue to have a
very bright future. Even though they have tight race with their arch rival, Airbus, they have all
the tools necessary to win more market share. With more television advertising, promoting their
airplanes comfort and style, and competitive pricing strategies, they have a great chance to
snatch business in the emerging markets, like Asia. There is no doubt that Boeing will continue
to dominate the market, innovate, and create a better way to fly.

20
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