Cathay Pacific Marketing Mix (4Ps) Strategy

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Marketing Mix of Cathay Pacific analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Cathay Pacific marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company.

Let us start the Cathay Pacific Marketing Mix:

Product:

Cathay Pacific is a leading global airline brand which offers various services to flyers. Cathay Pacific not only offers commercial flights but also has logistic services in its marketing mix product offering. The commercial offerings for flyers are as:

• First Class -  They consist of wide seats that can be fully converted into beds. They also have massage functions, small cabinets to keep one’s stuff, personal television screens for entertainment, power sockets etc.

• Business Class – Cathay Pacific business class redesigned their business class seats to let go of the traditional herring bone design and change it to a more modern day design keeping in mind the needs of the passengers for space, comfort and privacy. The seats are wide and fitted with all the similar amenities that are available in the industry. They provide audio video on demand facility to the business class consumers.

• Premium Economy Class – It was introduced in 2012. The seat pitch is six inches more than that of the economy class and is bigger and has more recline. They have several amenities like big meal table, cocktail table, 10.6 inch personal television and in seat power outlets. They also have more personal stowage space. Larger pillows and noise cancelling headsets are also provided to the customers.

• Economy Class – They consists of slimmer seats and adjustable headrests. They have an 6 inch screen television for in-flight entertainment. Some of the other facilities available are cup holders, power sockets and USB ports.

This gives an overview on Cathay Pacific product and service offerings.


Image: Wikimedia


Price:

Cathay Pacific have variable pricing as per the customer classes. They provide opportunities to book ticket online through their website and provide price discounts on special occasions. The prices are competitive and helps Cathay Pacific to cater to customers belonging to various financial background. The fares also depend on the route and sector of airspace which the flight will cover.


Place:

Cathay Pacific and its subsidiaries now operate across 130 destinations throughout the globe. Some of the locations include London, Brisbane, Frankfurt, Vancouver, Amsterdam, Rome, San Francisco, Paris, Zurich, Seoul, Shanghai, Los Angeles, Manchester etc.


Promotion:

Cathay Pacific have their mobile App called CX mobile where customers can check in, check the timings of arrival and departures of the flights, follow the city guides that they travelling to in the app itself. The App became very popular with the travellers because of the convenience and relevant information that it provided in time. Cathay Pacific also use social media marketing by advertising on Facebook, Twitter, YouTube, Tumblr etc. They provide a facility where the customers can take a virtual tour of the inside of an aircraft and see the various services and facilities available which helps to attract more new customers. Cathay Pacific also provide other promotions like online duty free shop, Asian miles which can be redeemed for offers, Marco Polo club membership etc. All the above promotions helps in giving it a competitive advantage and attracts new customers by creating value for the customers.


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


People:

Cathay Pacific provide employment to more than twenty thousand people in Hong Kong. Rupert Hogg is the chief executive officer for Cathay Pacific. He became CEO in 2017. Earlier he has held the responsibilities of director of sales and marketing and chief operating officer. As a result he is well versed with the day to day functioning of the airline and brings with him years of experience. John Slosar is the chairman of the company. He had been working as a director since the year 2007. They also provide various career opportunities to the budding enthusiasts. People can work as ground crew or pilots, Customer Service Agent, Airport Service Manager, Head of Engineering, Digital Sales Coordinators etc. Cathay Pacific provide attractive travel discounts to their employees.


Process:

Cathay Pacific deliver value to the customer through various ways. They have very good loyalty programs called Marco Polo Club which provides rewards based on one’s level starting from green, silver, gold, diamond and diamond plus. Cathay Pacific also have an in-flight entertainment system called StudioCX which has plethora of movies, televisions, music, games etc. They provide various types of dining and wine facilities to the travellers. They have an App which can be used to easily book tickets and earn some benefits in the process. It also provides various kinds of flight details etc


Physical Evidence:

Cathay Pacific changed their livery to a simple green brush stroke logo which embodies all the essence of the airline and its roots. Firstly the brush stroke identifies with the culture and art of Hong Kong and gives a unique Asian identity to its brand. Secondly, it resembles a bird flying with its wings outstretched which symbolises the rich flying experience that Cathay Pacific strives to provide. It has about 146 aircrafts which have a wide body and are relatively young compared to other airlines. They include Airbus A350-900, Boeing 747-8 freighter, Boeing 777-300ER. In addition to the unique logo on these aircrafts, the interior design and the Hong Kong hospitality provides the consumers with a unique service experience. Hence this completes the marketing mix of Cathay Pacific.


About Cathay Pacific:

Cathay Pacific was founded in 1946 by American Roy C Farrell and Australian Sydney H de Kantzow. It is a Hong Kong based airline. A converted Douglas DC3 was the first aircraft to be used by the company. The first Boeing 747 was used in mid-1979. Cathay Pacific serve about one million passengers every month. Thirty percent of company’s revenues come from cargo transfers. Dragonair is a wholly owned subsidiary of Cathay Pacific. Swire Group is one of its major shareholders.

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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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