Marketing Strategy

Presented By: 1. Kajal Pradhane 2. Bhakti Rane 3. Piyush Tiwari

  Introduction 
• A marketing plan undertaken by Turkish Airlines to further develop Turkish Airlines market share
in summer 2010 and winter 2010/11 period through marketing programs and initiatives.

• Objective:
• To better understand where Turkish airlines should focus its marketing campaign 
• To understand how Turkish Airlines should differentiate its product. 
 About Turkish Airline

• Founded on 20th May 1933, Turkish Airlines has completed 85 yrs in the industry.

• Turkish Airlines has pursued a strategy focused on growth and development for many years and is
now one of world’s fastest rising airlines.

• One Of The World’s 5-star Airlines, As Measured By Skytrax, Which Has Covered The Airline Sector
For 18 Years. 

• Constantly seeking innovation, which it passes onto its passengers through high quality service,

Turkish Airlines is an airline that rapidly implements transformative solutions in support of growth
and development.
 Airline Overview (Contd)
Mission 
• To become a preferred leading European air carrier with global network coverage, thanks to its strict compliance with flight
safety, reliability, product line, service quality and competitiveness while maintaining its identity of the flag carrier of the
Republic Of Turkey

Goals and Objectives 
• Turkish Airlines main goal is to become the most preferred operator on flights to Turkey and beyond for both leisure and
business travellers. Another major goal for the company is to be the bridge between the Asia and European markets through
their Istanbul hub. This goal will be achieved by strong focus on transit passengers. 

Objective Time period

Increase revenue in business segment by 15%
Increase market share by 4% to 58%
Increase market share to 62.4%
Increase load factor from 68% to 72%
Further increase of load factor by 5% to 77%
Promote thy.com for bookings to reduce cost
Promote first class product and onward flights
from London to the rest of the world via Istanbul
Summer 2010/winter 2010/11
By the start of Summer 2010
During Summer 2010
By the start of Summer 2010
During Summer 2010/Winter 10/11
Throughout the whole period
Throughout the whole period
 Product
• Provides economy and business class travel between London, Manchester, Birmingham and Istanbul.
• Offers vast benefits, such as space, seats, comfort and in-flight services, as well as genuine gestures such as
Istanbul sightseeing cards and chauffeur services to the existing economy and business class passengers.
• Must be positioned to the target market as one that meets and exceeds the needs of both leisure and
business class travellers,
• Targeting passengers who would normally fly with Low Cost Carrier like Easyjet or Pegasus (leisure
passengers) or British Airways (business passengers), through increased product innovation and quality.
• For Example: The product focused towards business travellers allows them to hold in flight meetings in
comfort and order meals and services to suit their timetable and specific needs.
 Competitors
• Competitors for Turkish Airlines are classified as direct and non-direct threat.
Although British Airways is a direct threat to Turkish Airlines, the latter possess the
advantage of servicing different airports around UK, targeting local communities and
businesses on a wider spectrum  
     Competitors Products
Pegasus Airlines and Easyjet,
•Low cost carriers: mainly targeting the leisure market.
•Product value refers to the low cost model with fewer services on board -product that can mainly be directed to travellers on a budget (no
seat allocation, paid snacks and baggage allowance, etc.).
•Their flights are operated either from/or to secondary airports which are no attractive to wider group of passengers (especially business).
 
British Airways
• A full service airline: provide similar product to turkish airlines
• Considered as the main competitor to turkish airlines.
• Provide the economy (leisure traveller) product along with the upper economy and business class experience.
• Ba’s main advantage on the route Istanbul Ataturk (IST) to London Heathrow (LHR) is the onward connections they provide to the rest of
the world from their operating hub LHR or through its one world airline partners.
• They also operate 2-3 flights daily feeding their extensive routes worldwide.
 Competitive Advantage Of Turkish Airlines.
• Successful in maintaining reliability, speed and timeliness without compromising service quality.
• Flying Turkish Airlines: an experience always associated with the Turkish hospitality –comfort, quality pre
boarding and onboard services and great customer service.
• competitive advantage in UK: flight operations from three London airports and two regional operations -
Manchester and Birmingham, enables the company to increase its market share and passenger network.
• Flights frequencies.
• Regional connections from its main hub in Istanbul, as well as more than 145 onward connections to the Middle
and Far East and Asian countries (and further 940 destinations with its code share partners)
 PEST Analysis

Political Economical Social Technological

Turkey
• 50.9% of the company shares -
public, the rest remain state-
owned;
• strong political/governmental
backup;
UK
• Possible political instability that
could worsen the relations
between the 2 countries
Turkey
• dynamic economy;
• relatively large geographical area
(780,000 sq km);
• increasing disposable income
among its population;
• UK
• Economic downturn can result in
decline of air travel – particularly
for business traffic;
Turkey
• unique growth opportunity;
population of 75 million;
Turkey & UK
New fleet ; e-ticketing ; e-
UK services ; e-customer care
• Huge presence of Turkish
community ; Growing UK
population and increasing
• demand for travel products
 SWOT Analysis
Strengths Weaknesses Opportunities Threats

Turkey Turkey Turkey Turkey

• Expanding home market • Higher risk organic growth • A growing market, despite the • LCCs increasing their presence
economy and favorable strategy; Massive fleet growth economic crisis; • Currency shifts may inhibit
demographic; to fund; • A popular tourism destination; profitability;
• Strategic geographic position; • Under-utilising the potential of Benefiting from liberalisation
Substantial cost advantage a strong alliance; policies;
over rivals; Rising market UK
share; UK UK • LCCs increasing their presence;
• Star Alliance membership and • Market adaptation product; • Extend coverage into Scotland; • British Airways product
close relationship with Product differentiation; • National Flag carrier –
Lufthansa; differentiation;
• Brand/ specific product European Capital of Culture • British Airways coverage
awareness; 2010 Airline; expansion;
UK • Business customers focus;
• Substantial market share; • Drawing passengers into
Great flight frequency; onward flights from Istanbul
• 3 London airports + 2 regional hub
services;
• Great product and customer
services
 Market Segmentation

• To allow Turkish Airlines to concentrate its resources in markets where its competitive advantage is at its
greatest and hence its returns are highest.
• Segmentations strategy will focus on attracting three different types of passengers
• Product offering will be virtually identical on service, they will vary on price.
• Distinct marketing techniques will be used to create a competitively distinctive place for the product and the
Turkish Airlines brand in the minds of the targeted consumers.

Leisure 54%
Business 32%
Current market segments of Turkish Airlines
 Target Markets
• The Primary Target Market : Corporate Business Air Travel.
 The main need of this type of customers is the corporate discount available in return for volume. The company product will be
positioned to these customers to provide significant cost savings over competitors.
 Both London and Istanbul are cities with many multinational companies and businesses, which create a vast market for
corporate travel.
 prominent corporations with links in Istanbul and London who fly business class and has significant volume of business travel
between the pair cities.

• Secondary Target Market : Small Business And Independent Business Travellers

 People who typically fly from Heathrow to Istanbul but also from the industrial cities – Manchester and Birmingham.
 The product will be positioned for these customers by providing a FFP and a business class fare that is significantly lower
than most traditional fares (the two main needs of business travellers according to surveys).
 The product will also be positioned to this target market as the one with the highest levels of service on board the aircraft,
significantly higher levels of comfort offered by the seats and a higher degree of luxury compared to the competition

• Final Target Market : Luxury Travel Market

 Exists from London and Manchester to Istanbul.
 The product will be marketed and positioned to these customers as a „first class service at business class fares’. These
customers are generally uninterested in the frequency demanded by business travellers.
 Marketing Strategies
• Market Penetration (Improving In-flight services)
• Market Development (Extending new routes)
• Product Development (First class private suite)
• Cost reductions
• Marketing Programs
 Advanced Booking Price Promotions

 Three for Two

 Promotional Items for On-line Bookings

 Turkish Airlines Triple Points Frequent Flyer Program

 Price
comparison of airline pricing strategies Mon 10 to Fri 14 May 2010

• The main pricing strategy of the company is to maintain price

% cheaper than
leadership. British
Airline Economy Fares Business Airways
• Turkish Airlines pricing strategies support the products positioning, as    
Fares
 
the low price does not act as a substitute for lack of product quality,
Economy Busines
s
and are consistent with the other variables in the marketing mix.
• The type of promotions and advertising used will affect the price,
Turkish £95 (15 days £380 63.3% 70.37%
however in order to keep prices low, the product will not be supported Airlines advanced)
by extensive marketing campaigns such as T.V. adverts, which can cost
up to £130,000 for a single advert in a prime time slot
British £150 (30
• Pricing is influenced by the distribution channels used particularly in days £540    
Airways advanced)
selling to corporate customers. However, through negotiations the
airline can achieve great results with its corporate clients.
 Place

A Multi-level marketing strategy will be employed to distribute the product. That is a combination of
direct sales and indirect sales through the internet, Business trade shows and corporate travel agencies.
• Business Trade Shows

• Internet
• Direct Sales to Corporations

• Direct Sales to Secretaries and PA’s

• Corporate Travel Agents

• Business and Travel Magazines, Outdoor Adverts
 Conclusion
• Turkish Airlines market presence will be achieved by relying on the strategy of identifying and serving well both leisure and
business market. Reservations will be centralized and cost effective, by popularizing the official website of the airline.
• Marketing will be media generated to the business and corporate accounts with combined media and direct sales focused to
the leisure market.

• The marketing programs section of this report highlights the set of co-ordinated actions that will be implemented to meet the
airlines marketing objectives and to attract existing business class travellers from competitors.
• The advantage of a local and highly identifiable market is that media selections can be limited in scope. The most effective
media is expected to be outdoor billboards and posters on buses and underground, as they have acted as a key generator of
sales for other airlines.
• Presence in the popular social websites would be beneficial in order to increase brand awareness and can be used as powerful
marketing tool for advertising promotions, etc. Based on all these actions, Turkish Airlines can meet its challenges and act in
order to achieve its set goals and objectives, as well as to maintain its leadership position in the UK market.