Marketing Audit Assessment EXECUTIVE SUMMARYThe present study is based on conducting the marketing audit of Singapore Airlines Limited. The company is one of the main flag carrier airlines of the Singapore that offer services in more than 64 destinations. Further, macro and micro environmental analysis of the company has been carried out with the help of SWOT analysis and PESTLE. Through applicability of these models, it has been identified what are the main challenges present in the external environment of the business along with its internal strengths and weaknesses. It has been identified that internal strengths of the company are effective enough in overcoming its weaknesses and it can surely assist Singapore airlines in grabbing the opportunities that are present in the external environment.
The brand image of the organization is quite strong where the majority of the customers prefer to purchase services of Singapore Airlines. Apart from this, political factors are favorable for the company where the political environment of the country is stable. The economic condition of Singapore is sound where the strong purchasing power of the people contributes a lot in performing efficiently in the market.
The customers of the company can easily purchase services of the company. Apart from this, social trends keep on changing where youngsters and other people prefer to purchase high-class services which Singapore airlines is able to offer. So, all these positive attributes are the main core competencies of the business in the market, and this has allowed to gain the competitive edge over its rivals. Table of ContentsIntroduction to the audit (company/brand background) 1Macro analysis 1Micro analysis 4Competitive analysis using strategic groups 7Strategic priorities 9REFERENCES 11Introduction to the audit (company/brand background)Marketing audit refers to the evaluation, analysis and the interpretation of the company’s marketing environment with the motive to identify the areas of the problem and the opportunities so as to enhance the marketing performance of the business. In the modern era, the market where the company operates is full of challenges and to tackle such issues it is necessary for the businesses to modify its marketing strategies for attracting a large number of customers in the market. For the present study organization chosen is Singapore Airlines Limited which is the one of the main flag carrier airlines of the Singapore that mainly renders its services at 64 destinations.
The company was founded in the year 1947 and with the rise in demand for airline services the company expanded its business worldwide so as to serve a large number of customers. The company has 25 years of experience in the field of the aviation sector, and this contributes a lot in satisfying need of the different type of customers (Heracleous and Wirtz, 2014). Over the last few years, Singapore airlines have grown from the regional airline into the world’s leading cargo and passenger carrier (Fan and Lingblad, 2016).
The fleet size of Singapore airlines is 112, and the company hires staff members of 24,574. This represents that Singapore airlines is carrying out all its operations on the wider basis. The present study is based on marketing audit of Singapore airlines where micro and macro analysis of the company has been carried out through applicability of different models. Micro environmental analysis has been conducted through Swot and macro through PESTLE. Apart from this, the competitors of the Singapore airlines has been identified in order to identify whether the company is performing efficiently as compared with its competitors or not. Moreover, the report also focuses on the strategic priorities of Singapore airlines on the basis of the current situation of the company.
Macro analysis For analyzing the macro environment of Singapore airlines PESTLE analysis has been carried out through which it is possible to know the range of factors affecting business performance of the company. Political: The political risk in the market of Singapore is quite low, and it has been stated by Political and Economic Risk Consultancy (PERC) states that the entire nation has minimal impact of political factors. Singapore is a democratic nation where people living in the society have right to select the representative. High political stability in the nation has directly supported in peace within the country and has enhanced the living standard of the people also (Cameron, 2017). Apart from this, this has provided more effective opportunities to the businesses operating in Singapore such as Singapore airlines where the company received proper support from the government. But on the other hand restriction of free speech in case of opposition parties is present within Singapore and it has been identified that value of free speech is quite limited. So, with the help of this, it can be stated that impact of the political factor on Singapore airlines is very low and it is creating favorable results for the company. Due to the presence of political stability government laws and regulations are not changed frequently, and this assists as a lot in complying with the requirement of the political parties in the best possible manner.
Economical: This factor has the direct impact on the business operations and is associated with the overall growth of the nation regarding GDP etc. The economy of Singapore is regarded as the free market economy, and it is developing at a very high rate. In the ASEAN region, the per capita of the nation is highest, and there is no such corruption present in Singapore. So, this is quite advantageous for Singapore airlines. Singapore is regarded to be one of the most competitive countries where highly motivated and educated workforce is present. This contributes a lot in carrying out the business operations. Apart from this, the government of Singapore invests a lot in diversifying the economy, and political parties play the most active role in the development of the economy (PESTLE Analysis of Singapore, 2017).
So, with the help of this it can be clearly stated that economic factor is quite favourable in case of Singapore airlines where the sound economy system of the nation has acted as the development tool for the business. No such economic fluctuations are present in the nation that adversely affects the performance of the organization, and this is the main reason due to which Singapore airlines are able to earn higher profits and revenue by conducting overall operations in the market. However, some constraints regarding the economic performance of Singapore are present that takes into consideration rise in the labour cost, labour shortage and decline in the level of productivity (Jarach, 2017). The income level of the people living in the society is quite high, and this is the main reason due to which they can easily afford services of the Singapore airlines.Social: The people living in Singapore totally depend on traditional family values, and it has been witnessed that younger generation in the nation has the capability to follow values and western culture. Social factors are in favour of Singapore airlines where the majority of the customers prefer to purchase services of the airline industry as it matches with the standard and living style.
Considering the younger generation, they prefer to access airline services on the continuous basis, and this is quite profitable for the business (Halpern, 2016). Apart from this, the social factors keep on changing rapidly where customers are attracted towards airline services that are convenient and comfortable for them. Considering this information, it can be said that social factor is in favour of Singapore airlines. Technological: The market where Singapore airlines operate is high advanced where new and advanced tools are adopted for conducting operations (PESTLE Analysis of Singapore, 2017).
Technology level keeps on changing frequently, and it has been identified that it has the direct impact on the operations of Singapore airlines. The company has young and modern fleets, and along with this for booking purpose mobile applications and other systems are present. It has been witnessed that technology driver is considered to be the major driver in enhancing the efficiency of the company and raising the level of customer satisfaction. So, it has positively affected operations of Singapore airlines.
Legal: The airline industry is high regulated and time to time government introduces new laws that Singapore airline is required to follow. For example, the terrorist attack that took place in 2001 influenced regulatory authority to carry out screening of passengers who are travelling. Apart from this, Airline Company has to take safety and security measures, and its aircrafts must be well maintained (Thomas, 2015). Other legal laws involve payment of taxes and duties. So, legal laws have the direct influence on practices of Singapore airlines in the market. Environmental: It is a well-known fact that airline companies have the direct impact on the surroundings due to the presence of air pollution. So for reducing the adverse impact on the environment and promoting sustainability Singapore airlines have started to use advanced engines for its fleets that cause less pollution. So, this has somehow supported company to protect the environment.
Micro analysis This type of analysis undertakes the internal environment of the business along with the factors that have the direct impact on the business operations that involve local government, customers, suppliers etc. Singapore airlines carry out all its operations on the wider basis, and due to this reason, it is necessary for the company to analyze its internal environment so as to operate smoothly in the market (Kumar, 2013). For micro environmental analysis SWOT as one of the tool has been adopted and its detailed description is as follows:Strengths The main strength of Singapore airlines is its brand image and the positioning strategy.
In the year 2010 the company was given award of second largest in terms of market value by International Transport Association (ITA). High profitability level and ability to satisfy need of the customers is the main strength of the companyPresence in more than 60 destinations and 35 countries across the 6 regionsFirst in the market to deliver alcoholic and hot meal to the customers Durable hub in the market of Singapore (Wirtz, Tuzovic and Kuppelwieser, 2014)Strong backup from the regulatory authorities of Singapore Known for excellent customer service and quality service in the market. Singapore airlines hold youngest fleet of aircraft in the entire industryWeaknesses Very less market share of the company due to presence of high competition in the marketPrices of the services are high and it is difficult for the middle class customer to access the services of the company (S.W.O.T Analysis of Singapore Airline, 2012)The portfolio of the company is unbalancedThe turnover ratio of Singapore airlines is low as the organization is indulged into the practice of maintaining good financial performance OpportunitiesIn order to attract more customers in the market it is possible for the company to develop new marketing strategies like use of social media Company has opportunity to enhance its market share by expanding into the areas such as India, china, Middle east etc (Smit and Dula, 2014)Adoption of brand new fleets so as to enhance the level of customer satisfaction Delivering training to the staff members so that they can provide more unique experience to the customersFocusing on international destinations to leverage on high charge brand value ThreatsHigh amount of competition from other players in the market such as Thai airline, Cathay pacific, China southern airline and Thai airlineIncrease is the price of the ticket due to rise in increase in price of oilHigh amount of substitutes present in the market Above shown is the SWOT analysis of the company that represent opportunities and threats present in the external environment along with the internal strengths and weaknesses of the company. It has been identified that the internal strengths of the company are effective enough in overcoming its weaknesses and it can surely assist Singapore airlines in grabbing the opportunities that are present in the external environment. Strong brand image of the company is acting as one of the main strength (Nadeem, 2015).
Apart from this, some core competencies of the company are present such as differentiated services, use of advanced tools, ability to satisfy the need of the customers etc. contributes a lot in offering services as per need. This is highly beneficial for the Singapore airlines.
The target market of the organization is the customers that prefer reliable services and comfort. Majority of the services that are offered by the company belongs to high class and due to this reason services of Singapore airlines are of high price.Competitive analysis using strategic groups High service quality Thai airline Singapore Airlines Emirates Low Price High Price China southern airline Cathay pacificLow Service QualityThe two main competitors of Singapore airlines are Japan airlines company ltd and Malaysian airline system Berhad. These two competitors of Singapore airlines are offering the same type of services in the market and due to this reason company has to face tough competition from these firms. No doubt prices of Singapore airline services are high as compared with its main competitors. With the high price, the company represents its brand value in the market, and this acts as the main source of attraction also. The main unique attributes present in the service of Singapore airline involves high-class services that are of high quality, and such type of services are not offered by other companies in the market (Pearson, et.al, 2015).
This has allowed Singapore airlines in gaining the competitive edge over its rivalry. High-quality services at higher prices make the company totally different from others in the market. So, with the help of internal analysis, it is quite clear that Singapore airlines is internally strong and has the capability to satisfy the need of the different type of customers at international level.
The high-class services offer unique experience to the upper-class customers, and this has enhanced the performance of the company in the market where services are rendered. Strategic priorities Considering the present situation of Singapore airlines in the market, it has been found that the company is operating efficiently in the market. The strategic priority of Singapore airline is to expand its operations into the new market like India, China etc. No doubt at the international level the brand image of Singapore airlines is positive where the majority of the customers prefer to purchase services of the company (Malaval, Bénaroya and Aflalo, 2014).
Therefore, the main aim of the company for its future is to expand operations into the new market where it is possible to operate successfully. For accomplishing this aim, it is required for the business to develop some expansion plans that are effective. This strategic priority can surely build the overall strength of the company for its near future and can act as the development tool for the entire company also (Camilleri, 2018). Moreover, another strategic priority of the company on the basis of the current situation is to enhance its customer base where it is required to adopt some new marketing methods so as to attract a large number of customers.
The strategic plan that Singapore airlines can build is linked with the adoption of social media for marketing purpose where it is possible to promote services with the help of social media sources such as facebook, twitter etc (Homsombat, Lei and Fu, 2014). This strategic priority will be highly beneficial for the firm as through this customer base of the organization can be enhanced easily and this will somehow bring favorable results for the company in the market. Another key strategic priority in case of Singapore airlines is an introduction of the new service range where the range of services that are delivered at present does not support in dealing with the level of competition in the market.
Therefore, it is required for the company to develop some unique features in its service range for influencing the purchase behavior of the customers. By analyzing the current position of the Singapore airlines in the market it has been found that company holds the capability to expand into the new market of India, China etc. due to the presence of the strong financial base (Pearson and Merkert, 2014). The strategic priorities of the company can only be satisfied with the help of proper financial planning, and this can contribute a lot in enhancing the internal strength of the company. For the coming years, the other strategic priorities of the company also involve delivering training to the staff so that they can properly serve customers as per their need (Halpern and Graham, 2013). This will surely deliver favourable results for the organization and will act as the development tool for the enterprise in every possible manner. The strategic priority of Singapore airlines also involves high brand awareness in the market as through this more customers will be influenced easily to purchase the services of Singapore airlines and this will built the real strength of the enterprise.
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