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Sample of BM HL-IA (Marks 24)
Sample of BM HL-IA (Marks 24)
Research Question:
To what extent the change of marketing mix can help Qeshm Air to increase its market share in
Dubai?
Word Count:
Research Question
How can Qeshm Air Airline use promotional strategies to increase its market share in Dubai?
Rational
Qeshm Air is a government owned airline and has recently gotten the certificate in order to have flights
to Europe but due to economic restrictions the airline has been dragged down by Persian Gulf airlines
who already have the Iranian airline market substantially covered. Ever since foreign airlines have
started offering flights to Iran at relatively low costs, Qeshm Air has experienced a loss in sales.
I have chosen this topic to analyze the possibilities of Qeshm Air increasing its market share through
causing a change in its marketing mix.
Theoretical Framework
In order to analyze how Qeshm Air’s market share can be increased two business tools have been used.
SWOT Analysis – This tool allows for an analyzation of the opportunities and threats that Qeshm Air
has faced or will face. It also helps identify its weaknesses and strengths. Overall, it will help me to
better analyze its possibilities and how it can use its opportunities and strengths to increase its market
share.
Fishbone diagram – This tool helps to investigate the factors that may have been responsible for Qeshm
Air’s low market share. It makes it easier to analyze them and find a solution to the issue that Qeshm
Air is faced with.
Syllabus Areas
Unit 1.3 Organizational objectives- SWOT Analysis
Unit 1.7 Organizational Planning tools- Fishbone Diagram
Unit 4.2 Marketing Planning- Marketing mix
Methodology
Both secondary and primary data has been used in this research.
Secondary data:
The secondary data includes the population of UAE, with focus on the population of Iranians. The
SWOT analysis of Fly Dubai and Air Arabia have also been acquired through secondary resources.
Primary data: Primary data was gathered by questionnaires and interviews.
Interview/Questionnaire with What I understood
Interview with the DMD- Commercial & Ground -The strengths and weaknesses of Qeshm Air.
Operations -The promotional strategies used.
Interview with the Director of Marketing and -The strengths and weaknesses of Qeshm Air.
Sales Promotion -The sales strategies used.
Questionnaire by Iranian customers -Found which airlines are preferred and why.
-The preferred way to be aware about airline
promotions
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Anticipated Difficulties
Action Plan
Topic Selection October 10th to November 5th
Write Proposal November 6 – 10th
Interview Question Design November 12th - 14th
Questionnaire Question Design November 15th - 17th
Interview with DMD and Sales director November 18th
Spread Questionnaire November 20th – December 10th
Analyze data on paper December 10th – January 20th
Use business tools to analyze and evaluate the January 21st - 29th
company’s problem and strategy
Make conclusions, reflections and February 1st - 20th
recommendations
References February 21th
Revise draft February 22th
Word count: 493
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Table of content:
Acknowledgement …………………………………………………page 5
Interview verification letters………………...……………………...page 6
Executive summary ……………………………………….………. page 8
1. Introduction…………………………………………………....... page 9
2. Finding and Analysis of secondary data
2.1. High demand travel to Iran………………….….……...page 9
2.2. Fly-Dubai SWOT………………………………………page 10
2.3. Air-Arabia SWOT ………………………………..……page 10
3. Finding and analysis of primary data
3.1. Customers’ questionnaire results…………………..…. Page 11
3.2. SWOT analysis of Qeshm-Air international flights.…...page 12
3.3. Fishbone diagram of QA’s international flights...….…. page 14
4. Evaluation and setting marketing mix…………………...…….... page 14
5. Conclusions, recommendations and limitations
5.1 Conlusions.........................................................................page 15
5.2 Recommendations……………………………...………. page 15
5.3 Limitations………………………………………..……. page 16
6. Bibliography ……………………………………………….……. page 17
7. Appendices
7.1. Appendix 1, UAE nationalitie……………......................page 18
7.2. Appendix 2, Customer questionnaire.………..................page 19
7.3. Appendix 3, Interview #1 transcript…….………............page 20
7.4. Appendix 4, Interview #2 transcript……………...……. page 22
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Acknowledgement
I would like to express my gratitude to Mr. Mahmood Pour Abdollah (the DMD-
commercial and ground operations) and Mr. Nasiri (Marketing and sales promotion
Director) of Qehsm Air with great cooperation to collect the required data for this
research project.
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Executive Summary
Qeshm Air (QA) as an Iranian airline experienced lower market share than two local carriers, Fly-Dubai
and Air-Arabia. These airlines grew an interest in this market due to the large number of available
passengers, especially Iranian customers. This research aims to answer “How can Qeshm Air change
its marketing strategies to increase its market share in Dubai?” by the use of SWOT and Fishbone
analysis with a focus on marketing mix.
To answer this question, a combination of secondary and primary data has been used. The Secondary
data includes the SWOT analysis of Fly-Dubai, Air-Arabia and the population of Iranian customers in
UAE. The primary data includes interviews with QA’s authorities and customer questionnaire. The
results of the secondary data and QA’s SWOT which was made from the interviews was a fishbone
diagram which helped investigate the effect of different marketing mix elements on QA’s low market
share.
Data evaluation gives a positive answer to the research question which means that QA can increase its
market share with online and long-term direct booking through its website. It can also control its
promotional strategies by direct communication with its customers by using low-cost social media tools
such as Telegram and WhatsApp.
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1.Introduction
Qeshm Air is an Iranian airline which was established in 1993 and is based on Qeshm Island in the
Persian Gulf. Qeshm Air serves domestic and international flights across the Middle East, Europe and
Asia. The Iranian passenger airline is wholly owned by Sorinet Group.
There are various Airlines that offer flights from Dubai to different cities of Iran. These airlines include
Mahan Air, Iran Air, Taban, Aseman and Qeshm Air which are Iranian airlines and Fly Dubai, Emirates,
Air Arabia and Qatar which are foreign airlines. Most of these airlines have more than one return flight
per day from Dubai to different cities in Iran. Among these airlines, Fly Dubai and Air Arabia are two
major competitors of Qeshm Air because of their similarity in ticket price. Ever since these two airlines
started offering flights to Iran at relatively low prices, Qeshm Air has experienced a loss in sales and
market share.
This research analyzes how Qeshm Air can increase its market share through a change in its marketing
mix. Businesses tools chosen for this analysis include SWOT analysis, fishbone diagram and marketing
mix elements as business tools through analysis of secondary and primary data results.
1
- BQ Magazine, http://www.bq-magazine.com/economy/socioeconomics/2015/04/uae-population-by-nationality
2
UAE population by nationality, http://www.abudhabi2.com/uae-population-by-nationality/
3
UAE population by nationality- country wise- 2016, (appendix-1), http://www.abudhabi2.com/uae-population-by-
nationality/
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2.2.Fly-Dubai SWOT4
The carrier was set up by the government of Dubai in July 2008. Despite the fact that Fly Dubai is not
part of The Emirates Group, Emirates upheld Fly Dubai amid the underlying setting up stage.
Strengths:
Since their airline is owned by the government they gain financial support.
Their planes are new and better than many other airline companies in the world such as Boeing
737-900ER with 180 passengers’ seat.
Its service incorporated in the UAE airline companies which are significantly better than others
around the world.
Being a member of the Middle East Business Aviation Association improves their
trustworthiness.
Provide air services to different cites of Iran such as Ahwaz, Bandar Abbas, Hamedan, Isfahan,
Lar, Mashhad, Shiraz, Tabriz and Tehran.
Opportunities
Price competition in UAE is low as most airline carriers are relatively high in costs. However,
Fly-Dubai has started with it.
They can expand into international markets as their value added services and state of the art
planes appeal more to customers.
They can make contract with multinational companies whose executives need to constantly
travel.
They can easily set more flights a day in high season traveling to Iran.
2.3.Air-Arabia SWOT5
Air-Arabia was set up on 3rd February 2003 turning into the primary low-toll carrier in the area. Its
fundamental base is Sharjah International Airport. What differentiates Air-Arabia from many ease
transporters is that it offers associations with many flights at its base in Sharjah.
Strengths
4
https://www.ukessays.com/essays/marketing/strategic-management-for-a-major-public-aviation-company-marketing-
essay.php
5 https://www.ukessays.com/essays/marketing/the-air-arabia.php
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It flies to Lar, Mashhad, Shiraz, Tehran, Abadan and Isfahan of Iran.
Opportunities
The airline is expected to add more destinations as it is increasing its number of planes.
UAE is focused on attracting tourists to the region which in turn expands Air-Arabia’s market
in the long term.
They can easily set more flight a day in high season traveling to Iran.
According to the above strengths and opportunities of these airlines, having new and high
capacity planes and easily setting up of more than a flight a day have the biggest impact on
QA’s market share which will be used in QA fishbone diagram as well.
This research focuses on Iranian passengers as main customers, therefore a questionnaire6 was
designed to get their idea and opinions for increasing QA’s market share. The most important results
of ……filled questionnaires(app-2) are as follow.
6
Customer qusionnaire- appendix 2
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3- Respondents believed none of the
Iranian airlines have an online booking
service and do not offer long term booking
with more discounts opposed to
non-Iranian Airlines (figure 5).
According to the results, the respondents selected Fly-Dubai and Air-Arabia due to the facilities which
are provided by them; like online and long-term-booking of tickers with discount. This result and
preferred tools for offers will be used in part of setting marketing mix of QA for increasing of its market
share.
This analysis is based on the interviews done with the authorities7 (app-3&4) of QA and focuses on
their international issues.
Strengths
7
- Appendix 2- transcripts
8
- TCO: refers to non-European aircraft operators conducting commercial air transport flights into the EU.
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never faced a technical issue in their flights
Use of one big plane instead of two smaller ones to reduce costs during high seasons.
Ticket price always stays same, unlike Fly-Dubai and Air-Arabia.
more than 90% of their seats in flights are filled
Weaknesses
forced to use second hand planes with high maintenance costs due to political issues and
sanctions
only about 10 percent on-line booking available through travel agencies
Not using social networks to reach customers
Lack of airline website that allows to direct sell of tickets.
High plane maintenance costs due to the 5 different planes owned by the airline.
Failure to add more flights a day in high-season such as traditional Iranian holidays or events
due to difficulties in coordination with Dubai and Tehran airport.
Cannot reduce its ticket price like the local carriers because of high maintenance costs.
long-term-booking is not available to offer lower prices like Fly-Dubai and Air-Arabia.
Opportunities
able to increase global flights with the TCO license for east Europe
try to get same license for west and central Europe.
access to a large number of customers with lower cost by social media like Telegram and
WhatsApp
open up a door of opportunities to increases their number of flights by opening of the Dubai
second runway
attract frequent flyers by skywards cards promotion
offer discount flights with better programing plan
Threats
much more up to date planes of UAE local carriers due to big budget and non-political issues
provide more opportunities for local carries because of being a member of the Middle East
Business Aviation Association
Local carriers already have Iranian passengers covered and have gained their trust.
The strengths and opportunities of QA will be used in setting its marketing mix to increasing its market
share.
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3.3.Fishbone diagram of QA’s international flights
With the help of strengths and opportunities of Fly-Dubai and Air-Arabia, and Weaknesses and Threats
of QA, a fishbone diagram has been designed to investigate the marketing causes of its low market
share in Dubai.
Based on the SWOT and fishbone analysis, the different marketing mix elements can impact QA’s
market share.
The first one is the booking process. For international flights, Qeshm Air made an agreement with
travel agencies (TA) to sell their tickets by the TA’s websites. This can cause payment problems (only
by Iranian credit cards not international ones) and the limited TAs’ working hours can irritate
customers so they will buy tickets from other airlines which solve these problems and provide more
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other efficient services; such as long-term-booking with discount which negatively impacts QA’s
market share.
The ticket price is the second element of QA and is almost the same and can be an advantage over its
competitors because their prices increase in short-term booking or high seasons, but this price cannot
be reduced further due to high maintenance costs of old planes, high Dubai airport services and Iran’s
political issues. If the political issues get resolved QA will purchase new planes and work to increase
its market share.
The increase of number of flights a day as the product element will be difficult to set due to
limitations of Dubai runway until the second runway opens
As promotional element, QA doesn’t have direct communication with its customers through low cost
social media which was shown before as the favorite communication tool of customers. On other
hand, QA cannot control marketing done by TAs and sometimes they lose their market share because
of TAs collusion with other airlines.
5.1.Conclusion
According to the customers’ questionnaire results, the two major competitor of QA, Fly-Dubai and
Air-Arabia possess a large market share of Iranian passengers in Dubai by
QA has the chance to become popular among other airlines if it works on its marketing strategies. The
fishbone diagram shows that the major problem of QA’s low market share is because of two elements
of the marketing mix, booking process and promotional strategies. These problems can be resolved with
a detailed promotional plan and can increase QA’s market share. A further study on cooperation of
different Iranian airlines may be useful for QA-issue.
5.2.Recommendation:
According to the evaluation and conclusion, the following strategy recommend to increase QA’s
market share.
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Set up a website and enable long term booking
Use low cost social media apps to communicate with customers like Telegram and WhatsApp.
Must be prepared to take advantage of the new runway that is going to open.
Able to increase global flights with the TCO license for east Europe
Attract frequent fliers by skywards cards promotion
Offer discount flights with better programing plan
Same type of planes can be used to decrease maintenance costs.
5.3.Limitations
• As mentioned in 3.1, the travelers to Iran are from other nationalities too, then one of this
research limitation can be the lack of their responses to the customer questionnaire.
• The local carriers are competitors for other Iranian airlines in Dubai as well, then interview
with their authorities may provide some more solutions.
Word count: 1994.
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Bibliography:
SWOT of Fly-dubai - https://www.ukessays.com/essays/marketing/strategic-management-for-
a-major-public-aviation-company-marketing-essay.php
SWOT of Air-Arabia - https://www.ukessays.com/essays/marketing/the-air-arabia.php
Sampling method: http://www.investopedia.com/terms/s/simple-random-sample.asp
Sample size: https://www.surveymonkey.com/mp/sample-size-calculator/
TCO license: http://mckechnie-aviation.eu/management-systems-for-aviation/information-for-
aircraft-operators/third-country-operators-tco/
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Appendices
Appendix-1
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Appendix -2 –customer questionnaire
A simple random sample has used for this research because in this method each member of the
sample has an equal probability of being chosen9. The data collected in “Towheed Iranian School”
with about 300 Iranian teachers, students, and staffs. The sample size by the help of sample size
calculator10 was 169 that overall from 176 filled questionnaire, 170 complete answered used for this
research. The questions of customer questionnaire are as follow.
Through what medium do you prefer to be informed about the airline (for
example any discounts or offers)?
Magazines such as Ertebat and Gooya Radio Shoma WhatsApp
Telegram SMS
9
http://www.investopedia.com/terms/s/simple-random-sample.asp
10
https://www.surveymonkey.com/mp/sample-size-calculator/
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Demographic
Occupation . . . . . . . . . . . . . . . . . .
Gender Female Male
Age:
15 – 20 21 – 30 31 – 40 41 – 50 51 – 60
Above 60 years
Appendix -3 – Interview #1
Research question:
“To what extent, Qeshm Air can increase its market share in Dubai by its marketing mix?
Name and position of interviewee: Mahmood Pour Abdolah, DMD, Commercial & Ground
Operations
1- What are the strengths and weaknesses of Qeshm Air in international flights especially in
Iran to UAE flights?
Strengths: we own a good brand which our customers trust and are satisfied with its good services.
We have been among the first Iranian airlines who could get TCO license for international flights to
Europe.
Weaknesses: We have to use some airplanes which are not very new, I mean we cannot buy the latest
model of airplanes due to some political problems between Iran and other countries, therefore, we
have to buy or rent some second-handed planes that cost extra for their maintenance issues.
Qeshm Air fleet has 5 types of planes that each have different maintenance cost and at this moment
because of high cost, we don’t use one of them at all.
2- Could you give more details about TCO license11?
Yes, sure. TCO or Third Country Operators refers to non-European commercial airlines which
conduct air transportation flights in and out of the EU. We were the first Iranian airline who met the
required international operational and safety standards.
Now, with this license we are allowed to fly to east Europe but are looking for the same license for
central and west Europe.
3- What promotional strategies are used by Qeshm Airs to attract customers?
11
http://mckechnie-aviation.eu/management-systems-for-aviation/information-for-aircraft-
operators/third-country-operators-tco/
The term ”Third Country Operator’ (or TCO) refers to non-European aircraft operators conducting
commercial air transport (CAT) flights into the EU. The TCO regulation [Commission on operational
and safety standards. Operating permits (relating to commercial traffic rights) may also be required by
individual member states.
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Different ways such as social networks, the internet, travel agencies' advertisement and one of the
more important one, use of word of mouth power of our loyal customers through the good customer
service.
4- Do these ways use for local and international flights?
No, most of them use for local flights between different cities in Iran.
5- Do Qeshm Air use social media such as Facebook, WhatsApp or Telegram for
communication and relationship with their customers?
We have a Telegram channel with about 2000 followers which we use to announce new flight routes
and any changes in local flight conditions.
10- Do you have any plan to create an online site to sell directly your tickets to the customers
without the interference of travel agencies?
Our plan for selling international tickets is based on full charter contract with travel agencies.
Although at this moment about 10 to 20 percent of our tickets can directly be purchased by customers
but the payment currency is in Rials not dollar or dirhams so we know that for the customers outside
of Iran it is not comfortable to pay by credit card, so we are going to open an account in Dubai or
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Turkey to resolve this issue.
11- Do you have any strategy to make a lower ticket price like the local carries of Fly Dubai or
Air Arabia?
To be like local carriers we need to reduce the costs as much as possible which is not possible for us
due to use of second hands planes with high maintenance cost.
12- Do you have any plan to provide skywards services to the frequent flyers?
Yes, we do. We are in the programming stage to connect with check systems in different airports to
collect passengers data and we wish to make it happen in the next two or three months.
13- Do you have any idea or plan to increase your market share?
Yes, indeed as about 90 percent of our seat is filled now, we are going to find some new routes that
make more profit for our airline.
14- Due to a large number of Iranian people in UAE- Dubai specially, what is your plan for
increasing your market share?
We are waiting for the opening of the second runaway in Dubai airport to discuss for more flights a
day to more cities in Iran such as Shiraz.
Appendix -4 – Interview #2
Name and position of interviewee: Saeid Nasiri, Director of Marketing and Sales Promotion
1- What is the strengths and weakness of Qeshm Air in international flights especially in
Iran- UAE flights?
Strengths: on time flights, passenger’s hospitality, experienced pilots, mastered in different
operational sectors.
Weaknesses: no entry to all air unions to cover all required routs for its customers, needs to
more successful marketing activities to attract customers.
2- Which facilities can be provided by getting the TCO license?
In UAE- Dubai flights?
Indeed, nothing because this license is useful for European flights.
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Yes, in international flights the travel agencies advertise for their tour packages which our
airline is part of their offers.
5- Does Qeshm Air use social media such as Facebook, WhatsApp or Telegram for
communication and relationship with their customers?
Yes, we do. There is a Telegram channel with name of Qeshm Air that people can join and get
the last news about Qeshm Air local flights and routs.
6- What about international routes and flight customers?
No, there is not same channel for international flights yet.
7- How do you organize special discount flights?
We didn’t have any especial marketing strategy as flight offer but in our review management
we have 2 price rates for our tickets that depends to supply and demand, it means higher price
is higher when demand raise and lesser when demand falls. Overall our change of reservation
is low because of low rebooking and cancellation costs.
8- To what extent, the special offer flights were successful?
We have always been well-received from our special offers.
9- Can you have more than one flight a day in the same route?
Setting more than a flight a day is very difficult in both routs’ airport especially in Dubai due to
lack of runway we hope more facility will be provided for us by opening of the next Dubai
runway soon.
10- Do you have any plan to create an online site to sell directly your tickets to the customers
without the interference of travel agencies?
At the moment, there is a site for online ticket sells for local flights only. The sales of
international tickets is with travel agencies. Most of the Dubai- Iran tickets is chartered by travel
anancies but the price rates are according to the mutual agreement between us. This strategy is
satisfied us because of good international tickets sales by them.
11- Do you have any strategy to make a lower ticket price than the local carries of Fly
Dubai or Air Arabia?
The two airlines mentioned above are as local carriers which bahre mibarand such as local
carriers’ factors but we follow an integrated strategy in all our local and international networks.
12- Do you have any plan to provide skywards services to the frequent flyers?
Yes, we have. It is still in process because it needs an IT system.
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Criterion Mark Out of Justification
A 3 3 The research proposal contains all the required elements with a focused
research question, detailed and clear rational and methodology.
E 1 2 There are conclusions based on the evidence in the main body which
successful to address the research question. The only further study
seems that not substantiated in written report.
Total: 24 25
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