Published by MBA Skool Team, Last Updated: December 02, 2017
Marketing Strategy of Etihad Airways analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Etihad Airways marketing mix, help the brand succeed in the market.
Etihad Airways marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Etihad Airways Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
The product strategy and mix in Etihad Airways marketing strategy can be explained as follows:
Etihad Airways is one of the most prominent airlines based out of Abu Dhabi, UAE. Etihad Airways has devised its unique range of products and services in its marketing mix like In-flight chef, food and beverage Manager, Flying nanny to name a few. Etihad Cargo and Etihad Holidays are freight services and passenger services offered by the airline respectively. Airline operates more than 1000 flights per week. 14.8 million passengers travelled with Etihad Airways in 2015 9.02 billion US$ revenue and 100+ million US$ profit in 2015. The airline offers standard economy, business and first-class seating arrangements. In addition to these class, for some of the flights (Mumbai, New York), 'The Residence' is also available. It is a three-room penthouse (living room, bedroom and en-suite) with its own chef and butler. Other value-added services include booking of chauffer, extra leg-room seat, travel insurance, transport, hotels and many more. Etihad Airways also gives on-board shopping experience to its passengers. Merchandise form exclusive brands is available. The selection can be made from the catalogue provided.
Etihad Airways Price/Pricing Strategy:
Below is the pricing strategy in Etihad Airways marketing strategy:
As per the category of seats booked, the pricing differs in the airline.
Economy class has lowest cost and basic standard services followed by business class and then first class. Etihad Airways promises to offer lowest price for its flights as compared to third party travel booking websites. Passenger can claim for refund if third party website has lower price for Etihad flights than the official website and has the difference of at least 20 US$ for Economy class ticket and 40 US$ for Business class or First class ticket. Detailed pricing for different classes of ticket related services, membership category are given on the website along with the policies and rules. The airline has introduced a new concept of Tailor-made fare for its passengers. Etihad Airways has most expensive flight in the world from New York to Delhi for The Residence suite. One-way ticket for it costs approximately US$38000 for 19-21 hour flight.
Following is the distribution strategy in the Etihad Airways marketing mix:
The head office of Etihad Airways and its training centre is located in Khalifa city of Abu Dhabi. Etihad Airways reaches 110 locations in 6 continents and offers passenger and cargo services. In UAE, it has one passenger flight to Abu Dhabi and a Cargo service to Sharjah. These locations include Middle East, Europe, Africa, Asia Australia and America. The route map and destinations served by Etihad airways can be accessed through a website. Distribution network of Etihad is very strong enabling smoother running and better customer experience. According to Tajawal, a middle east based travel booking website, popular routes of Etihad Airways are all starting from Abu Dhabi and to the destinations- Bangkok, Mumbai, Hyderabad, London, Manchester, Manila, Paris and Jeddah. Etihad has presence in 6 continents and offers employment opportunities in all those locations. However, the density if it is more in Europe, middle East, South East Asia.
It is also there prominently on the Eastern side of Africa and major cities in Australia (Perth, Brisbane, Melbourne, Sydney).
Etihad Airways Promotion & Advertising Strategy:
The promotional and advertising strategy in the Etihad Airways marketing strategy is as follows:
Etihad Airways has a comprehensive website and also a mobile app. It also engages print media such as news papers, magazines, promotional booklets. Airline believes in change and involved in no of events and causes. The events sponsored reflect the Etihad culture of hospitality, team spirit and bringing world together. It is a principal partner of New York City FC and has 5 year contract with them starting November 2014. In effect of this, Etihad brand will feature on jerseys of club during play increasing the visibility of brand. It is also a sponsor of Melbourne City Football Club. Since 2014 Etihad airways is airline partner of Major League Soccer. The Facebook and Twitter pages of airline hosts all the data of the partnership and hosts many contests and distributing gifts like tickets, merchandise and flights. Recently Etihad Airways has launched campaign 'Flying Redefined' to promote their unique sophisticated service, for which Hollywood Actress Nicole Kidman was engaged.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Etihad Airways.
Etihad Airways is customer centric, its goal is to be the best airline and travel company of the world. To achieve this they look for people who share and appreciate it. According to the Chief People and Performance officer, they look for proactive, self starting people with passionate attitude. This is very crucial as the reputation of the organization is based on the service delivery by employee. Also Etihad Airways believe in building long term associations with people and investing in them. The type of employment offered are Cabin Crew, Pilot and SFI, Strategy and Planning etc. The detailed profile and associated details are given on the separate career pages of Etihad. For the passengers arriving at Abu Dhabi, the Airline has special program called 'Meet and Greet'. This can be availed by pre-booking and gives stress free travel experience to passenger. In this, experienced member of Hospitality team helps the passenger through all the flight related processes for smooth travel. Etihad Airways has formalized code of business conduct for guidance to interaction with suppliers and customers.
Etihad Airways gives its customers experience of Arabian Hospitality and warmth. The Emirati values are reflected in their customer service. It believes in continuous improvement and benchmarks itself with the best in the field. Etihad Airways has formed strong relationships and has made strategic investments in particular airlines. Due to this, the passengers can fly with their partner airlines keeping the same number and having ease in travel; where direct service by Etihad Airways is not available. For international travel, a passenger is required to produce Visa and Passport . Flight booking for Etihad Airways flights can be done through airline website, travel agents, third party travel booking website. For ease of customers, Etihad Airways has developed very streamlined processes and operations. Passenger can check in through various modes like web-check in, through app, on the websites of third party booking sites. Although standard seats with ample legroom are available, passengers can purchase and reserve extra legroom seats in advance.
The fleet of Etihad airways is of 120 ecologically safe aircrafts from Boeing and Airbus. The initial batches of aircrafts purchased by Etihad Airways were five Boeing 777-300ERs costing US$ billion and 24 Airbus including A380s. In addition to these, other aircrafts in the fleet include 2 Airbus 319-100s, 23 Airbus 320-200s, 10 Airbus 321-200s, 19 Airbus 330-200s, 6 Airbus 330-300s, 1 Airbus 340-500, 7 Airbus 340-600s, 10 Airbus 380-800s, 5 Boeing 777-200LRs, 19 Boeing 300-ERs, and 13 Boeing 787-9s. Airline provides in Flight entertainment on personal touch screen TV with headphones and also has fashionable Atlas Magazine available. Etihad Airways offers varied on board refreshments to passengers. It includes cafe service comprising of light snacks, tea and coffee; complementary bar service; and main course depending on the travel destination. Customized meals are provided depending on religious preferences, medical restrictions and diet. Baby and infant food is also offered on Board. A neck pillow is provided for comfortable sleep on long duration flights. It also provides a kit containing travel essentials. Hence this concludes the marketing mix of Etihad Airways.
About Etihad Airways:
Etihad Airways is authorized airline of United Arab Emirates. It was formed by the decree of Government of Abu Dhabi in November 2003.
It has strategic geographical location for operation of its flights all over the globe. Etihad airways is one of the five divisions of Etihad Aviation Group (EAG).
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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