Delta Airlines Marketing Mix

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Marketing Mix of Delta Airlines analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the business & marketing strategies of Delta Airlines.

Let us start the Delta Airlines Marketing Mix:

Product:

Delta Airlines offers two main services transport for passengers and cargo, which is the marketing mix product strategy of the company. It has an extensive network around the world. Delta Airlines operates more than 5,400 flights per day. Delta Airlines provides well defined and differentiated products to cater to different segments of its customers. It is transforming its service to be more merchandised approached. Five distinct travel experiences are offered which include Delta One TM, First Class, Delta Comfort+ TM, Main Cabin and Basic Economy. The first three include premium amenities and services such as complimentary refreshments, alcoholic beverages, extra leg room etc whereas main and basic customers get the basic services which can be upgraded as per their preferences. Delta cargo uses cargo space on regularly scheduled passenger aircraft to transport cargo both domestically and internationally.



Image: pixabay


Price:

Delta Airlines is one of the most widely operated airline in US. Prices in the airline industry are characterised by heavy competition. Flight prices also majorly depend on jet fuel prices. Delta uses a fuel hedging programme to reduce risk of changes in fuel prices. Delta Airlines offers differentiated services at different price ranges so as to cater to different customer preferences. The Delta One TM, First Class, Delta Comfort+ TM are premium services and are therefore high priced. The Main and Basic are affordable classes however passengers can buy extra amenities as per their requirements. Customers can also avail discounts through Delta’s frequent flyer programme.


Place:

Delta Airlines has a network of 312 destinations in 54 countries. The place strategy in the marketing mix of Delta Airlines can be understood by its extensive reach. The major hubs include Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis, St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles - de Gaulle, Salt Lake City, Seattle and Tokyo-Narita. The network is centred around a system of hub, international gateway and key airports. Each hub gathers traffic from surrounding regions and distributes to other hubs. Delta Airlines has alliances with international as well as regional operators to extend its network. It has a joint transatlantic venture with Air France and KLM and Alitalia which is used to cover routes between North America and Europe. Transatlantic Joint venture with Virgin Atlantic Airways which operates flights between UK and North America. Transpacific joint venture with Virgin Australia Airlines for flights between North America and Continent of Australia. Regional carrier programme is called Delta connection with contacts with ExpressJet Airlines, Shuttle America Corporation, Compass Airlines among others.

Delta Cargo through its extensive network is able to reach the world’s major freight gateways. Delta Airlines is a member of SkyTeam Cargo which is a global cargo airline alliance. SkyTeam Cargo global network spans the six continents. Delta tickets are distributed through various channels. The channels include digital such as delta.com and mobile, telephonic, traditional brick and mortar and online travel agencies. Delta is selling an increasing amount of tickets through online channel which reduces costs and enables Delta Airlinesto have direct interaction with customers.


Promotion:

Delta Airlines has a strong brand image. In 2007 Delta introduced a new livery as part of its rebranding exercise. Delta Airlines has an extensive and popular loyalty frequent flyer programme called sky miles. Customers earn mileage credit by flying on Delta or its associates or by using partner companies such as credit card, hotels, car rental. The mileage credit can be redeemed for air travel or membership at Delta Sky Clubs ® . Delta also has a website an app where it promotes its various offers and discounts.


Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Delta Airlines.


Physical Evidence:

Delta Airlines’ huge fleet of more than 800 fleets is physical evidence. Also its Hubs and lounges serve as physical evidence. Delta is trying to merchandise its services hence the services increasingly have a tangible component. Delta also has a website and app.


People:

Delta Airlines emphasises on the wellbeing of its employees. Delta employees are highly trained and this increases the quality of service and customer satisfaction. Delta understands the value of human capital and invests in it. In 2016 it increased the base pay by 6 percent while continuing to offer a generous profit sharing plan. Delta also takes into account the suggestions by its employees. The new Delta uniforms were designed taking into account employee suggestions.


Process:

Delta Airlines continuously tries to improve its various processes. It has tried to optimize its flights to maximize profit. Processes are being optimized to reduce delay and cost. Delta is increasingly selling its tickets online this has simplified the process of buying tickets. Hence, this covers the Delta Airlines marketing mix.


About Delta Airlines:

Delta is a large American airline which fly’s passengers and cargo all around the world. The headquarters and also its largest hub are present at Hartsfield–Jackson Atlanta International Airport in Atlanta, Georgia. The airline has a network of 312 destinations in 54 countries all over the globe. It employs more than 80,000 employees and operates a fleet of more than 800 aircraft. It had an operating revenue of $40,704 million in 2015. Delta airlines is one of the oldest airlines in the US. It serves about 180 million customers every year. It has been consistently named the most admired airline for the fifth time in six years. It was also named Fortune’s top 50 Most Admired Companies in 2016. Delta airlines has ranked No.1 in a survey called the Business Travel News Annual Airline survey for 5 consecutive years.

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The names and other brand information used in the Marketing Mix section are properties of their respective companies. The companies are not associated with MBASkool in any way. The brand names are used purely for educational/academic purpose only.

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