Executive Summary

This report describes the concept of Relationship Marketing (RM) can be best

demonstrated by the practices of e-commerce today in the case of Qatar Airways, which is the

state airline of Qatar state. Besides, it is considered as one of the youngest flight companies,

which ranks top among prominent airlines such as Emirates globally (Thomas, 2017). It further

analyses the competitive environment in which this company operates and presents the key

strengths and opportunities it faces. Moreover, it highlights the threats that it faces, such as the

political instability and fears of terrorism attacks (Barry, 2015). Besides, the airlines' company

report presents an explanation of how the innovation of relationship marketing practices by E-

commerce entities (Internet) is changing the marketplace as it is known. Additionally, the report

presents how Qatar bonds with its customers through Structural bonds, financial bonding, social

boning, and customization bonding.

Also, it depicts how Qatar airlines have shifted from mass production to mass

customization and how this has helped to market its products through such a move. As if no

enough, this analysis identified and makes the following three recommendations to Customer

Relationship Management for the company. Firstly, design CRM software that is easily used by

travelers, internal customers, and the organization companies (Avery, 2014). Secondly, as a

business, track the behavior of customers during sales. Lastly, to not only think of using the

CRM as the sole sales system that is automated. Besides, the report presents ways the flight

company manages ethical issues originating from the collection of customer data for CRM.

Introduction
Companies having a sound focus on customers determine their desire towards their

potential customers after that design their products and services in a way that meets the needs of
their customers. The relationship marketing theory focuses on the belief that good relationships

with customers make them feel recognized, cared for, and served with respect (Avery, 2014).

Always marketing strategies centers around two major factors; firstly, to attracts and acquire

new customers. Secondly, to retain existing ones alongside nurturing relationships with them,

organizations operate closer to customers to have a competitive advantage in the market.

Qatar Airways are a state airline company of Qatar as well; it is among the industry

aviation source of the success stories. It was established in 1993 and started operating in 1994

as a small airline company for the region serving few routes. By 2011, it reached out to over

100 destinations in the global space (Thomas, 2017). This paper, therefore, addresses the issues

of relationship management in Qatar airways. Besides, it discusses the CRM approach used by

the company. It is structured in such a way that part one analyses the situation of operations; the

subsequent parts deal with the RM and CRM and finally present a recommendation for a better

competitive advantage in the future.

PART A (15 marks)

This section should contain a critical situational analysis of the chosen company/product.

This includes Competitive Analysis (assessment on the strengths and weaknesses of current and
potential competitors. This analysis provides both an offensive and defensive strategic context to
identify opportunities and threats), and the Target Market (a group of customers that the
business has decided to aim its marketing efforts and ultimately, its merchandise towards).

Competitive analysis of Qatar Airlines

This analysis evaluates both external and internal factors that affect the flight company’s

internal and external environments, given that Qatar airlines among the youngest travel
companies that serve six continents. The Qatar government owns it; this situation gives its

powerful competitive advantage over its competitors in the industry (Carey, 2016). Qatar

Airways has immense government support, originates from an oil-rich country, and targets

customers capable of paying for luxurious fees explicitly. Besides, it plys more than 150 country

destinations, premium patronage, and full time winning of the award are the key competitive

advantages and strengths o this flight company (Barry, 2015). The aforementioned competitive

strengths make Qatar airlines a leading global airline. However, the company faces competition

from flight companies that charge low flights since they target travelers of low income and flight

budget.

Famous for opulence in flight, Qatar airlines mainly consider international travel capable

of affording the business category. This strategy is a crucial weakness for the company since it

does not provide for the Qatar locals in tourism (Avery, 2014). As a result of low presence in

domestic routes, Qatar airways have less growth in market share. On the other hand, the travel

company has powerful alliance strategies with premium airways along with its membership in an

airline alliance. This depicts that is has a more significant opportunity to expand more in the

international market with an immense presence in the global alliance acquisition. Moreover,

Qatar airways currently increased the portfolio of flights, and travelers are inquisitive about

traveling through their flights because of its renowned services of premium nature (Avery,

2014). The competition it faces from the airlines of Etihad and Emirates, unpredicted political

environments, wavering fuel prices, disputes in politics and being enclosed by combative zones

such as Palestine and Syria as well as the fear of travelers from attack by a terrorist are its

significant threats (Key, 2017)

The SWOT analysis
Strengths Weaknesses
i. It has substantial growth and i. Qatar airlines have minimal
profitability transparency in operational and
ii. Qatar airlines are or world-class financial closures
status that offers premium ii. It mainly depends on non-
services domestic travelers and has a low
iii. It has a backing from the local population
government that is consistent
with the state of Qatar
iv. This airline has a network
across the world with huge
fleets that are modern
Opportunities Threats
i. Qatar airlines have the i. Its Airlines demand may be
opportunity if implementing the affected by political instability
latest technological solutions in and terrorism
fostering travel service delivery ii. It faces enormous competition
ii. The scheduled world cup by from major global flights from
FIFA to take place in Qatar in Emirates, Lufthansa, and Etihad
2022 fuels its growth in aviation iii. The airline faces the state’s
(FIFA World Cup Sponsors & political conflicts that
Partners 2017) negatively impact in Qatar
iii. The financial center of Doha airways from GCC
development and the
development of an international
hub

PESTLE Analysis
Qatar Airways' PESTLE analysis assists in understanding the effects of the macro-

environment and their influence on the travel business of the company. Additionally, this

analysis is useful in understanding the present external factors such as Political, Economic,
Social, Technological, Legal and Environmental forces and how they affect the business model

of Qatar airlines (Young, 2015). Besides, it assists in understanding the business trajectories,

company business case, activities, and monitored by the state regulators.

The government of Qatar assisted the business in starting the numerous routes linking to

major in-country destinations that enhanced the travel company to serve in the six world

continents. But, with heightening terrorism, some countries blocked trade and communication

with Qatar. Besides US president Trump's ban policy of traveling to US from a majority of

Muslim states as a result of terrorism, banning the carrying of laptops while on the flight,

especially from the Middle East to his country, impedes Qatar airlines from operating (Carey,

2016). However, this travel company set the trend and is famous for its premium offers that

range from facility of checking in online, luggage and passenger safety, comfortable and lavish

Longue to best waiting times, and customized meals provided by a variety of cuisines (Key,

2017). In socially impacting the brand of Qatar, Airlines have kept and improved satisfaction of

customers a core value.

Technologically, the company opts to advance its technology in its operations; this has

made the whole flight experience adorable and straightforward for the customers and at

passengers’ fingertips. They offer bookings and payment facilities online, and there is also

departure and arrival online notification as well as checking-in online this process has gotten

better and is still improving.

The company has the first environmental protection concern that requires immediate

intervention from the flight industry due to much fuel consumption and oil wastage. The

government applies policies that aim at protecting the pollution of the environment (Blachly,
 2016). The Qatar airways are liable as a responsible travel company to adhere to the set

regulation.

PART B (70 marks)

The concept of Relationship Marketing (RM) can be best demonstrated by the practices of e-
commerce today.

1. Based on ONE (1) of the websites above, explain how the innovation of relationship marketing
practices by E-commerce entities (Internet) is changing the marketplace as we know it. Relate
to relevant relationship marketing theories and concepts here.
As seen from the competitive analysis, Qatar airways use online booking, payment,

departure notification, and arrival notification as well as checking-ins for their customers.

However, with dynamism in the industry and competition intensity, the company must initiate

other mechanisms for increasing its competitiveness and market base (Carey, 2016). Qatar

airlines have adopted this digital marketing to build relationships with their customers and the

entire business. They have allowed customers to comment through their online platforms and

offer a suggestion about the service quality and product. In enhancing relationship marketing,

they have provided the opportunity for response to customer issues swiftly. Swift responses to

customer queries, complaints, and compliments have built their relationship with their

customers as well as the company (Barry, 2015). Besides, thisthis feedbacks provision makes

them put the customers’ interests first and not their products. This focuses on customer retention

to the airlines company.

The company has strategically consider several aspects in using the e-commerce

marketing, such elements include, marketing affiliation, advertising through Facebook and PPC.
(Carey, 2016). Additionally, they market via video, managing social media, and they have

developed a proper understanding of the effectiveness and working of the digital marketing

approaches. Qatar airlines e-commerce marketing is linked to growth of sales, given that

relationship marketing focuses on creating a strategic approach for the commencement of

customer retention approach. In view of this the company has provided opulence to the

customers that have made it more desirable among others.

In addition this has made their location easy for the customers. For the company to

realize more of its customer retention it has to design a unique website to provide it with more

competitive advantage upon continuously carrying out research. In the case of Qatar design it

has featured the entire destination for their flights with visible graphics about company transport

appliances ((Blachly, 2016). These extra features provided acts as after sale services to the

customers in delivering robust services to customers. Apart from the online, service provided

the company has well trained staff who are smart, possessing good etiquettes and attractive

image of the company in their relationship marketing, Qatar airlines have endeavored to meet

their clients’ needs. Their website should prominently feature brand promoters and their contact

in facilitating process promotion (Key, 2017).

Qatar’s online relationship marketing strategy considers a greater target market,

positioning, segmentation and its products, in their website design, they catered for all the

aforementioned factors. Essentially, their airways ecommerce marketing dies not discrimination

gender, sex, age or customer class this has made it easy for it to have a wider market base.

Given that they have access across the world, they need to continuously evaluate their progress

of the online strategy. Moreover, the online marketing relationship must be in line with the

whole strategy f the business for it to get its value (Columbus, 2016). As they strive to achieve
 this, they need to integrate their web design to be a multi-marketing strategy channel to help its

growth and sustainability (Young, 2015). Besides, the company should essentially market

consistently with the targets and expectation of the customers at heart. By consistently

marketing they create long-lasting relationship with the customers always the company

endeavors to differentiate its online marketing strategy from other competing firms such as

Emirates.

2. FOUR (4) types of bonds can tie a customer to an organisation. Using the same
website above, synthesise how each of these bonds improves the customer retention rate in the
organisation.

Bonds in Customer Relationship

In exercising relationship marketing to bond tie customers to organizations. In the case of

Qatar airlines in assessing their applicability to the business such as financial bonds, social

bonds, Customization bonds Structural bonds

i. Financial bonds. This type of bond ties customers mainly through incentive of finances, such as

lower costs in case of high purchases in volume or minimizing costs for customers who have

been with the organizations for longer times (Dapko & Artis, 2014). Qatar airlines offer their old

repeat customers some small discount to financially bond with them.

ii. Social bonds. Inherently long-lasting relationships are created through interpersonal and social

links. Where customers are perceived as prominent clients and not unimportant persons whose

wants and needs are of importance to the business and the company endeavors to pay attention

and understand (Kannan & Li, 2017). They customize products and services and get in touch

with the customers. In using the social plat forms, they create social bonding with their clients.
 Additionally, Qatar airways value their customers and regard them as important components of

their business.

iii. Customization bonds. There are two popular terms with this type of bond which are intimacy of

customer and mass customization. The later focuses on a flexible of processes as well as

structures in providing various and frequent individualized products and services offered by the

organization at standardized costs of alternatives offered by the organizations (Columbus,

2016). On the other hand, customer intimacy encompasses the knowledge about customer as per

the database provided in the online platform used. Qatar airlines have not segregated ages sex,

gender and offers services that are particular to the target markets. Besides they have flexible

systems and approaches to customers (Kannan & Li, 2017).

iv. Structural bonds. These are bonds created through service provision to customers that are

frequently designed as per service delivery to clients. As the company structures its service

delivery that easily reaches it s customers globally, the online platforms fosters their structural

bonding and the clients have been accustomed to their operation and easily reach them.

3. Explain the shift from mass production to mass customisation and relate to it to the chosen
organisation.

Mass production to Mass customization

Given the onset of interchangeable components of industrial revolution, moving of

manufacturing from the era of crafts to mass production age in the contemporary time another is

emerging known as mass customization (Karp, 2017). Mass customization eminently replaces

the craft era, where clients possessed products made according to their specifications and the

elites were the ones who could afford such. When mass production came to exist, majority of
 clients could now manage to get the products as a result of affordability. With trading of

traditional products amongst companies ideas and practices for companies have powerfully

developed towards mass techniques of customization (Dapko & Artis, 2014). As a result of

integration of technology in the production process and service provision, flexible manufacturing

that are team-based and mechanization. Technologies have emerged focusing on mass

customization incorporating three dimensions that do not contact measurement of the body’s

well as digitized printing of documents.

4. You have to identify and make at least THREE (3) Customer Relationship Management
recommendations for your chosen company. How does the organisation manage any ethical
issues originating from the collection of customer data for CRM?

Customer Relationship Management recommendations

It would recommend the company to do the following in managing their customer relationships

i. Design CRM software that is easily used by both the travelers, internal customers and the

organization companies. Given that researches have shown that effective CRM ROI for all

employees are key, the company moving forward should conduct a research before purchase

(Dapko & Artis, 2014) And first find out what will really meet the demands of the Qatar

airways customers. By skimping on this point, adoption of CRM will not be easy but difficult to

use (Karp, 2017). Besides in designing the e-commerce platform for marketing should be done

by the end users in the mind. Given that they will enable sales as well as social productivity.

Moreover it is important to note that not all users will be logging in everyday and use the online

platform. By abbreviating fields may perfectly sensible to sales options but may be confusing

the field representatives so customizing the CRM that fits all end user needs is desirable. Also,
 the company should pay keen attention to their interface design, and consider human factors

which are pertinent (Duclos, 2014). The designs should enhance a seamless flow of screens to

match the flow of work. Additionally, manage more the security, confidentiality and privacy

aspects with the travel clients’ data.

ii. As a business, track the behavior of customers during the sales. The management of Qatar

airlines before calling sales should collect data concerning social media prospects so as to

identify the information types to share across their online channels. Because the CRM tools are

the ones providing the adaptation to sales possibility to the platforms (Columbus, 2016). After

making sales call the sales representatives or the marketing team should track the resonating

contents to customers, this will make the travel company to have clicking customers that is

important in determining the mobile devices to add to already existing platforms (Duclos,

2014). Besides, as a global travel company Qatar airways should have applications that support

all mobile devices and keep knowing new mobile applications have been brought into the

market to keep their customers abreast having such information about mobile applications used

by customers will help the company to not only understand the trending needs of customers but

also help in predicting their future trends and design their marketing content and service in line

with a confident plan for the subsequent approach (Columbus, 2016).

iii. Qatar Travel Company should not only think of using the CRM as the sole sales system that is

automated. Because in many cases organizations tend to think that sales starts and stops with the

CRM (Nguyen & Simkin, 2013). Consequences are there for such thoughts such approaches

leave some organization departments off the loop, limiting and at times completely deny them

system accessibility. As result, they fail to sufficiently integrate their designed CRM alongside

other interfacing with clients (Duclos, 2014). Given that failing to integrate the service desk
with the system of CRM, the company front office team may be left behind of the trending

advancements relating to customer status already shared with customers this makes them to

miss opportunities for engaging and building relationships.

Ethical issues management

The flight company manages ethical issues originating from the collection of customer

data for CRM through the following ways. In 2016 the company adopted the state-of-the-art

system of documents management that enables the business to have the capacity of hosting and

sharing the company’s policies and operation manuals in real-time for promoting ethical

practices towards customer information (Karp, 2017). Additionally, from the security and safety

point of view, the company is pro-actively working in pursuit of IOSA decrees and

recommendations of having data management to be through centralize organization schemes.

This communicates the controls and procedures. Besides, Arconics integrated the AeroDocs to

their operational Qatar Airways system that minimizes operational costs and cater for accuracy

of information (Kannan & Li, 2017).

Moreover, the senior vice president of the carrier who is the group security and safety

Mr. Jain noted that with the growth the company has invested in the technology that integrates

teams in creating platforms that are secure and efficient (Young, 2015). The safety officer

remarked that their live organizational system of document management and the web-based

operation created for the company chance to ensure consistency. Besides their online systems

are compliant to regulations and controls quality in a way that conforms to their business

growth projections that are customer friendly and do not infringe on their privacy (Nguyen &

Simkin, 2013). Besides, the corporation enables their subject matter experts to liaise well as
offer real-time tracking of unscrupulous practices that can interfere with customer data and

strengthens compliance and safety in the enterprise.

Conclusion
Conclusively therefore, Qatar airways success story in marketing has more backing from

the government that initiated its operations and continuously offers it support. Besides, from the

situational analysis, the company, Qatar airways’ targets customers capable of paying for

luxurious fees, and is currently plying more that 150 country destinations, has premium

patronage and full time winning of award are the key competitive advantages and strengths this

flight company (Blachly, 2016). Additionally, the flight company bonds with its customers

though the aspects such as Structural bonds, financial bonding, social boning and social

bonding. In addition, Qatar airlines have shifted from mass production to mass customisation

and this has helped to market its products thorugh such moves (Karp, 2017). As if no enough,

this analysis makes the following recommendations to Customer Relationship Management for

the company. Firstly, Qatar air lines should design CRM software that is easily used by both the

travelers, internal customers and the organization companies. Secondly, as a business, track the

behavior of customers during sales

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