CHARLES B. FLAVIANO BSHRM 2B MS.

SHIELA ROSE MANLAPAO

PRINCIPLES OF MARKETING
CASE STUDY
(Cebu Pacific)

1.) Cebu Pacific’s Success can be attributed to a low-price strategy and loyal customers. Why
do you think value pricing is not just about lowering prices of your products?

-Cebu Pacific was ranked the third largest low cost airline in Asia. Their attribute is not only by
lowering the price of the fair but also they viewed the entire marketing mix. Cebu pacific
understands the need of their customer and how they value their customer in terms of services
that they offer. They provide online reservation which is one of the examples for value for
customer for their convenient matter.

-They also provide promotions which is very strategic to attract more customers to book their
flights on their airline company. They use the technology like social media, twitter and others.
When it’s come to publicity Cebu pacific is very innovative and creative which they attract
customer here in the Philippines or abroad. But the most effective and greatly affects the
success of Cebu pacific is their commitment of their staffs to provide the highest quality
standard to their customer.

-In business is not necessary to provide only a cheapest price but also to provide high quality
standard in order to gain not just only customer but a loyal customer which you gain a long
term relationship with them since the most important or the factor in order to tell the company
is successful by having a high customer satisfaction rate which equal to high income. The Value
pricing is not only means that providing a low price product but also with values just like stated
above for Cebu pacific their manage to use their strategy mix to gain, attract customers.
2.) Describe how Cebu Pacific utilizes its marketing mix to achieve successful operations.

-Cebu pacific uses its marketing mix very wise and efficient that’s why they achieved their
success. The first thing is that they understand its customer needs and adds more customer
value. Customer value is the satisfaction a consumer feels after making a purchase for goods or
services relative to what she must give up to receive them. This is one or major factors that
greatly affect the successful of a company by providing customer value. Provide an online
reservation are very convenient to the customers which is the main focus is the value of their
services.

-They provide an online reservation, make, on time departure and arrivals and the low promo
fares. Another one is the on-time performance; Cebu pacific improves their performance like
providing a 15 minutes departure time schedule. In terms of promotions, Cebu pacific also use
social media platforms such as twitter where customer is very updated regarding to their
promo rates, flight schedule, Fair rates, destinations and other concerns of their customer. They
dubbed as the first airline to have used this technology. Also they push its limit regarding for
the promotions. They made news or videos which later on viral in the social media and their
publicity increased not only for local but also for international. This way they get attention to
foreigners where they have been published to one of Britain new paper. The commitment of
their staffs.

-The most important factor in accompany in order to be successful is by their employees or

staff since they are the one encounter and facing guest or customer in the field. They are the
one providing service, deals with customer, and sometimes they are the customer bridge to
provide feedback of the company. From CEO to the ground crews all of them are committed to
deliver the highest customer value through sustained customer service attuned to the low-
pricing scheme.

3.) You are the marketing manager of Cebu pacific. You notice that your direct competitors
are following your low-price strategy. Discuss your counterstrategies.

-In business we cannot deny or avoid the fact that there would be competitors who really
imitates your products or services. The only matter is that you need to put on your customers
mind that the strategy that you have is unique and much attached to the company’s service
standard.

-The more the strategies unique and the more it distribute to the public is the more that
strategies is attached to your company’s name and its standard. No matter how your direct
competitors imitates your strategies, if that strategies of your own company is gaining
customer value and giving a high quality standard, the customer will just still see and felt the
difference. If the competitor directly imitates your product or service it means that your
company is very popular and successful since no one imitates a product or service if it is not
trending in the customer.

-If I will be the Cebu Pacific’s marketing manager, and I notice the competitors are following the
company’s low-price strategy my counterstrategies is that I still improve the strategies that I
already started but the only thing that I will focus is the customer value. I keep the highest
standard that the company possess but also if the competitors adds a unique quality to the
strategy I will also create a unique add to the strategies but the value and the trademark is still
align to the company’s standard.

-First I will create another strategies in order for the customer attention will again focus to us
for example I will create a buy one take one ticket if you book your flights from this month up
to this month there you can easily attracts customer since Cebu pacific has this promo of “Piso
Fair for all Juan” promo. I will use the media also to give information to the customer regarding
to their rights and privileges as a flight passenger in order to put on the mind of the customer
that we are concern to them.

-Another Counter strategy is that launching new innovation which the other competitors
cannot imitates. Customer now days are looking for another excitement and unique services
that why there is a thing called innovation. Customers’ needs to relax while they are travelling
so for me I will create another innovation like provide karaoke inside the plane or a mini spa or
massage inside the plane since it impose relaxation and attract customer.
-I will also use the age gap of customers. Teenagers are very fan to travel but their budgets are
low. In that case I will create a barkada promo where their air fare is much lesser to a normal
flight passenger. For the Adults or young professional I will provide some entertainment or
relaxation in order for them to feel special or well treated. For the Old, I will provide amenities
which satisfy their need and to feel them they are comfortable.

-My counterstrategies for the competitors but the most important thing is that as long the
strategies are properly execute and the high quality standard are observed and followed, the
customer will still on your side that is the factors which contribute to the success of a company;
the loyal customer. Being dominant in the market is also a factor in order to be well known and
cannot be surpass by your competitors same as a good image to the public.

4.) You are the CEO of Cebu Pacific. What marketing strategies are you going to implement to
sustain the increasing popularity of your company in the airline company?

-If the company popularity increases it will follow the increase of customer and the increase of
profits. That why the popularity of company should be maintained and should be cleaned in the
public in order the popularity will not be affected or decrease.

As a CEO of the Cebu Pacific here are some of the strategies I will going to implement to sustain
the popularity of the Cebu pacific

1.) Help customers solve a problem.

One way to make the popularity is sustain is to have a good feedback to the customer.
Customers are the great influence to the popularity of a specific company. One thing to keep
the popularity is to address their concerns, suggestion, comments and feedbacks in that way
they feel important and by that they can share it to another person as a word of mouth and
that way popularity is still sustain.

2.) By means of Media.

Media such as Televisions or Radio and other form of technology that can share information
anywhere. I will create a unique innovation regarding to promos and strategies and the first
thing I will approached is the media since they are the source of information of the customer.
One thing also is to publish to media the good reputation of the company and their standards.
3.) Maintaining the High quality standard of service.

Customer always looking forward for the service of a company. In order to sustained the
popularity of the company is by executing the high quality service standard since the company
was known to the service and to maintain or sustained the popularity, the service will be the
same

4.) Innovation and Creativity

Customer now days keep seeking to the more unique and new to their environment. In order
for the customer to get not bored on the service of the company I will create new innovation
that attracts and at the same time stratify the need of the customer without sacrificing the low
price themed of the company.

5.) Community involvement

Not only for the profit but also by participating to the community like for environment, civil,
and other programs which contribute to the popularity of the company but at the same time
the community will be benefitted from it.