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Air MRU
Air MRU
Mauritius
In performing our assignment, we had to take the help and guideline of some
respected persons, who deserve our greatest gratitude. The completion of this
assignment gives us much Pleasure. We would like to show our gratitude to Mrs.
Abisha Bahorun for giving us a good guideline for this assignment.
We would also like to expand our deepest gratitude to all those who have directly
and indirectly guided us in writing this assignment.
Not to forget, the few respondents, without whom the study would have been
incomplete.
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Abstract
The purpose of this study is to evaluate the marketing strategies in Air Mauritius. The
aim is to discuss a range of issues that are likely to be applied in the management of
marketing such as PESTLE analysis, SWOT analysis, Marketing Mix 4P’s, STP
Process and Porter’s 5 Forces.
(2) analysis indicated that the effectiveness of these strategy variables varied,
depending on the strategic orientation adopted by Rogers Aviation.
Through literature review, relevant information was gathered to know how to proceed.
Primary data was collected through a brainstorming session and survey questionnaire
filled by customers.
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List of Abbreviation
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STP Process- Segmenting, Targeting, Positioning
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Chapter 1
1.1 Introduction
Initially, Marketing Management is the function that every business needs to fulfill at
the best way possible. Marketing means promoting a product by knowing the needs
and requirements of the valued customers of the organization. The communication of
the customers and the association is required to satisfy the needs of the customers at
the foremost without any delay. Marketing and management in combination is a
process of planning a product, controlling the product and then channeling the product
to meet the desire of the customers in exchange of value that both pay the each other.
1.2 Overview
For this analysis, Air Mauritius was chosen. Air Mauritius was created in 1967, Air
Mauritius helped in connecting Mauritius to the rest of the world by regularly opening
new routes. With flights to and from Europe, Asia, Australia, and Africa, our
company now serves 24 regional and international destinations.
The airline is headquartered at the Air Mauritius Centre in Port Louis, Mauritius. Its
main hub is Sir Seewoosagur Ramgoolam International Airport. In 2017 the company
was the fourth largest carrier in Sub-Saharan Africa, and has an important standing in
the European, African, and Indian Ocean region markets. The airline won the World
Travel Awards “Indian Ocean Leading Airline Prize” from 2005-2014.
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1.3 Values of Air Mauritius
Air Mauritius acts as an ambassador for Mauritius. They bring the spirit of this
country and its people on each of their flights with the special attention that their
Mauritian crew provides, as well as a range of quality services.
For Air Mauritius your safety and security is our top priority. Our fleet consists
primarily of Airbus aircraft with state-of-the-art equipment. In addition, the company,
approved by the EASA (European Aviation Safety Agency), can perform
maintenance on aircraft of European operators.
They are a strategic partner in the tourism industry and are investing to help achieve
the industry's growth objectives. With 36,000 tons of cargo carried annually, Air
Mauritius also plays a key role in the economic development of Mauritius.
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Chapter 2- Literature Review
Marketing management is 'the art and science of choosing target markets and getting,
keeping, and growing customers through creating, delivering, and communicating
superior customer value' (Kotler and Keller, 2008)
Marketing concept is the philosophy that firms should analyze the needs of their
customers and then make decisions to satisfy those needs, better than the competition.
(Adam Smith, 1976)
Production Concept
Consumers prefer products that are widely available and inexpensive. The production
concept is more operations oriented than any other concept.
Product Concept
Consumers favor products that offer the most quality, performance, or innovative
features. The product concept believes in the consumer and it says the consumers are
more likely to be loyal if they have more options of products or they get more benefits
from the product of the company.
Selling Concept
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Consumers will buy products only if the company aggressively promotes or sells
these products. Off course, in this era of marketing, we know that selling is not the
only tactic to sell your product.
Marketing Concept
Focuses on needs/wants of target markets & delivering value better than competitors.
The marketing concept believes in the pull strategy and says that you need to make
your brand so strong that customers themselves prefer your brand over every other
competitor. This can be achieved through marketing.
Focuses on needs / wants of target markets & delivering value better than competitors
that preserves the consumer’s and society’s well-being.
According to Engel, Blackwell, and Mansard, ‘consumer behaviour is the actions and
decision processes of people who purchase goods and services for personal
consumption’.
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conduct this type of analysis systematically enough. Companies have to develop
competitive strategies to differentiate themselves from their rivals. (Wilson 1994)
In order to be on the market, to retain the existing customers and to attract new ones,
There should be regular marketing research. Marketing Research is as important as
Marketing Information System as both exercises are used for the benefit of the
organisation. Decision Makers are able to take the appropriate decisions efficiently
and timely. Market research is the format which enables an organisation to identify
key information about the market place, that is, the PESTLE analysis.
The PESTLE (or PESTEL) Analysis is a tool that is used to identify and analyze the
key drivers of change in the strategic or business environment. The abbreviation
stands for Political, Economic, Social, Technological, Legal, and
Environmental factors. The tool allows the assessing of the current environment and
potential changes. The idea is, if the project is better placed than its competitors, it
would be able to respond to changes more effectively. (Aguilar, 1967)
STP marketing is a three-step approach to building a targeted marketing plan. The "S"
stands for segmenting, the "T" for targeting and the "P" for positioning. Going
through this process allows a business owner and marketing consultants or employees
to formulate a marketing strategy that ties company, brand and product benefits to
specific customer market segments. “A marketer can rarely satisfy everyone in a
market. Not everyone likes the same cereal, hotel room, restaurant, automobile,
collage or movie. Therefore, marketers start by dividing up the market into
segments.” (Kotler & Keller, 2005)
According to Philip Kotler “Marketing Mix is the set of controllable variables that the
firm can use to influence the buyer’s response”. The controllable variables in this
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context refer to the 4 ‘P’s (product, price, place and promotion). Each firm strives to
build up such a composition of 4‘P’s, which can create highest level of consumer
satisfaction and at the same time meet its organisational objectives. Thus, this mix is
assembled keeping in mind the needs of target customers, and it varies from one
organisation to another depending upon its available resources and marketing
objectives.
Product : Product refers to the goods and services offered by the organisation.
Porter recognized that organizations likely keep a close watch on their rivals, but he
encouraged them to look beyond the actions of their competitors and examine what
other factors could impact the business environment. (Michael Porter, 1979)
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Source:https://www.mindtools.com/pages/article/newTMC_08.htm
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The following data collection method used for this study:
Focus group
We have discussed about the topic through a brainstorming session with one of the air
hostess as well as a survey questionnaire was designed for the customers which
included more information, feelings, attitudes and understanding from the customers.
Secondary research
It consists of the literature review part which was completed by using electronic
search in from the following websites:
ScienceDirect.com (https://www.sciencedirect.com/)
Lecture Notes
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Chapter 4- Data Analysis
This Chapter presents the findings and the analysis of the study based on the research
done and through the brainstorming session about the evaluation of Marketing
Strategies of Air Mauritius with the group members.
PESTLE analysis
SWOT analysis
STP Process
Porter’s 5 Forces
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4.1 PESTLE Analysis
Political Environment
In most countries, there are strict regulations for the aviation industry which is the
same case for Air Mauritius . This is mainly because of the risks associated and which
can result in deaths or accidents or any irreparable damage. Several policies have been
devised to protect passengers more than the aviation industry. Insecurity or
transportation of drugs factors that affect particular countries always have a negative
impact on the airline industry. This is a major obstacle as Rogers Aviation will start
losing customers in areas that have high-security threats.
Economic Factors
Economic factors have a deep influence on the airline industry. The recent economic
recession made the travel market to see its lowest period. Both economy and premium
travelling declined. Additionally, Air Mauritius was also under the pressure to cope
up with the increasing fuel prices. These factors made it difficult to generate profits.
Moreover, Air Mauritius also struggled with increasing labour demands from the part
of employees. All these economic factors resulted in increased bankruptcies.
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Social Factors
Air Mauritius also create social values like any other business as the consumer of
today has changed. In order to meet the changing demands of consumers, Air
Mauritius are required to incorporate changes. Now passengers prefer extended
services at low fares. In the past few years, there has been a reduction in business
class travelling which is a huge loss for Air Mauritius. Automation is yet another
factor affecting Air Mauritius as people make use of Skype features or hold a
conference call instead of travelling.
Technological Changes
The importance of technological factors can be understood from the heavy use of
technology in the global airline industry. Passengers of Air Mauritius now prefer to
access ticketing and check-in services through their hand-held devices instead of
forming a line or booking manually. Air Mauritius also conducts advertising
campaign on the social platform for attracting more clients. Failing to be tech-savvy
can result in loss of clients. Additionally, technology also means that aircraft are
lighter which provide speed and fuel economy. Increased technological advancements
can make it gain profits through offering safety and enhanced services.
Legal Issues
Similar to economic or political factors, legal factors also hold special importance for
analyzing the external environment of the airline company. There are many laws
devised for air traffic and the safety and security of passengers. There are many
regulations which require Air Mauritius to offer safe travel along with high-quality
services. Air Mauritius are made responsible for air crashes or any other type of
damage or disaster. Many laws have been proposed which regulates how Air
Mauritius treat its passengers.
Environmental Aspects
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Ecological factors impact the airline company the most than any other industry. Fuel
is a very major expenditure of the industry and Air Mauritius are required to invest
more in environmentally friendly and fuel-efficient aircraft. Climate changes also
have an impact on the company as aircrafts are now required to practice ‘green flying’
procedure for protecting the environment. This process involves huge finances.
One of the strengths of Air Mauritius is the growing income levels. The growth in
individual incomes increases the amount of disposable income and hence many
people are able to utilize the carriers to fly to their destinations
Growth in tourism is also a major strength for Air Mauritius as it has led to a
significant increase in the number of domestic and international passengers.
Air travel has a marked safety record and has been generally accepted as a safe and
fast way to travel. Airline staff of Air Mauritius consists of highly trained personnel,
which is a major strength, to Air Mauritius.
One of the major weaknesses in the aviation industry for Air Mauritius is strong
competition, that is, Emirates, British Airways and Air Austral means limited market
share and limited destinations and hence not utilizing the potential of the company.
There are many opportunities that Air Mauritius capitalize on to reap maximum
profits. There is an increasing number of stakeholders that has been investing in Air
Mauritius, therefore, increasing its capital base so as to be able to enjoy large
economies of scale. Air Mauritius has introduced mailing services for delivery of
mails and parcels across the globe and also special fare packages for those travelling
to certain destinations for pleasure or business.Technological advancement and
investment in information technology is an opportunity that greatly help Air Mauritius
to minimize its operation cost and relying on information technology to offer more
customers friendly services and also provide their customers with other services like
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internet while travelling which would make them pay more for the services hence
increasing the profit margins of the organization.
There are many threats facing Air Mauritius in the aviation industry. Travelling for
leisure and business is greatly impacted by the global economy. A downturn in the
global economy means that less people are likely to travel for pleasure and to do
business. This leads to low income to Air Mauritius during this period.
Heavy storms are detrimental to flight schedules, and this may mean refunding those
customers who opt to cancel their flights all together other than to wait. And the
greatest threats is the increasing cost of fuel.
Product:
Air Mauritius caters to its consumers at both personal as well as professional level
offering flying services in terms of first class, business class and economy class. First
class offers all the premium comforts that includes the adjustable seats that can be
converted into minibars, beds, for privacy and security reasons. In business class it
provides partitions for privacy and also offers USB and laptop charging point. Air
Mauritius offers great deal of entertainment inside the flight and wide range of choice
for food items keeping its customers satisfied with its services. It also offers excellent
internal services by means of better housekeeping and healthcare for its customers.
Price:
Air Mauritius has a varying pricing strategy in its marketing mix. It has developed
shorter and low cost routes without any layover. Although the prices of these routes is
lower, the company generates revenue through volumes. Due to direct flights, Air
Mauritius has adopted effective price policy for the shorter routes. In order to attain
flexible pricing for the seats and extract the maximum profits the company also
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adopts dynamic pricing policy levying the highest cost per seat. In general, the
company identifies the needs of the customers with different needs and belonging to
differential financial statuses. Air Mauritius also uses premium price policy for its
premium customers who demand luxurious and customised services at fights.
Place:
Being well known for its long routes, Air Mauritius has also introduced new short
routes benefiting its customers. It links various cities across the globe. Its distribution
strategy involves sale of tickets through travel agents and tour operators. Air
Mauritius also has a website for cancellation of tickets, buying of tickets, rescheduling
of the flight and drawing information about the various periodical offers and
discounts.
Promotion:
Segmentation
The segmenting step is essentially a brainstorming activity. Air Mauritius list out all
the potential market segments it could target in a marketing campaign.
Therefore, Air Mauritius segment Customers looking for safety and punctuality.
Targeting
Air Mauritius typically customize marketing campaigns that appeal to each. As the
company go through the STP process, it select which segment to target with the
upcoming campaign.
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Therefore, Air Mauritius targets the Middle class, Upper middle class and Business
men.
Positioning
Positioning is how Air Mauritius align its brand or products in the target market. The
goal is to offer something that is bigger, better or more valuable than its competitors
to a particular market segment.
Therefore, Air Mauritius position Safety and Security at affordable prices for its
customers.
1. Threat of Entrants:
The airline industry has always been a low entry barrier industry, which means its
rules and regulations have always been flexible for the new entrants. There is a direct
impact on the profit rates of Air Mauritius due to the entry of the new entrants hence
the risk is quite high.
The level of competition in the airline industry has always been quite high and due to
this reason Air Mauritius tends to earn a low return on every new venture it introduces.
But the risks posed by the competitors are avoided due to the support offered by the
government in terms of finance or legal flexibilities.
The bargaining power of the customer or the buyer in the Aviation industry is
somewhat low and, therefore, customers may switch to competitors looking for an
affordable pricing. If the bargaining power is high, then the customers of Air
Mauritius are less sensitive towards the price changes in the market.
The bargaining power of the suppliers is quite high in Air Mauritius . The power of
suppliers is high because they may refuse to work with the firm during economic
turmoil or may also introduce exorbitant prices for the exclusive resources.
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5. Threat of Substitute Products:
Budget and luxury lead to a huge price difference. So for a short distance flight most
of the people prefer cheaper tickets. This lowers the profit rates of the Air Mauritius
that highly focus on its luxury flights. Also, the services offered by the competitors,
that is, Emirates and Air Austral have a wide difference in the price performance
when compared to Air Mauritius.
5.1 Recommendations
There is always room for improvement for Marketing Strategies, Firstly, social media;
Air Mauritius can connect with customers mostly on social media, working to deepen
the relationship between its customers. Therefore, uses social media accounts in a
variety of ways, including to provide customer service, offer updates on sales and
promotions, and give customers a fun glance at what goes on behind-the-scenes.
Secondly, Air Mauritius can make use of unique advertising such that at food festivals
and sporting events, and can even send food trucks out in Mauritius to distribute free
samples to passersby. These creative advertising strategies work to further develop the
brand. Instead of simply limiting marketing efforts to frequent flyers, these methods
reach the public at large, building a favorable brand image with people who may not
already have a preferred airline.
Next is the Loyalty Programs; airline loyalty programs encourage flyers of Air
Mauritius to book repeat flights. Many airlines charge similar fares for identical trips,
so this is a way for Air Mauritius to gain an advantage. When a customer earns a
certain number of points or reaches a specific tier status, he becomes eligible for perks
like free flights, seat upgrades, passes to airport lounges, complimentary Wi-Fi,
alcoholic beverages at no charge, discounted parking and more.
Air Mauritius should control its cost and should also decrease its cost through
improvement and development of operations activities .it should improve
maintenance process, effective and efficient flight schedule of the company and better
utilization of the company resources like aircrafts etc. Another way for reduction of
cost is advancement in its technologies by investment in technologies and in this way
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cut of labour cost. For example it is strongly recommended to new installation of self
check service system on all airports.
Lastly is the distinctive flight perks: Air Mauritius can gain a customer advantage by
marketing an entertaining in-flight experience. This includes features like in-seat
entertainment systems programmed with current television shows, movies, music and
games. Air Mauritius can even offer passengers iPads stocked with entertainment on
select flights. This will entice a customer to choose the airline the next time he flies.
5.2 Conclusion
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Referencing
Aguilar in 1967 ETPS (Economic, Technical, Political, and Social) book Scanning the
Business Environment
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Marketing91com. 2018. Marketing91com. [Online]. [1 November 2018]. Available
from: https://www.marketing91.com/concepts-of-marketing/
Appendix
Questionnaire
1. Gender
Male
Female
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2. Age
16 & Under
17-22
23-28
29-34
35-39
40+
Yes
No
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4. Tell us how important of the following was in making your decision to use
Air Mauritius.
Departure and / or
arrival time was more
convenient
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Personal preference for
Aircraft preference
Once a month
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Once a year or less
Never
6. Please rate the price of ticket for the trip you are taking
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destination, but decided to fly
because of the fare
Availability of flight
attendants
Appearance of flight
crews
Pilot's communication
with passengers
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Overall service level
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