Objectives and Tactics for Cathay Pacific
Name of Student
Institution Affiliation
To stay ahead of the competition, companies must constantly review and improve their business strategies and objectives. Companies need to adapt well researched and applicable plans as a strategy to build long-term as well as profitable relationships. Marketing objectives should always be Specific, Measurable, Achievable, Realistic, and Time-bound (SMART) and based on a proper understanding of the company’s strengths and weaknesses. Also, once you have decided on your marketing objectives coming up with a strategy based on the 7 Ps will make sure your plans become a reality. The 7 Ps comprise of Product, Pricing, Place, Promotion, and People, Processes, and Physical evidence to get a more comprehensive approach. This paper shall propose two SMART service marketing objectives and marketing mix that Cathay Pacific can adopt or improve to achieve its business goals.
Using the SMART analysis will ensure that the strategies developed are suitable and can be used to drive different strategies for the realization of business processes in the company. The SMART insights help businesses take a more structured approach in their planning, confidently, to achieve realistic targets. With SMART objectives, businesses are sure what their target is so that they can regularly review to make quick progress in achieving them. When setting a marketing service objective, Cathay Pacific needs to ensure that its business goals meet the five criteria of the SMART framework.
First, marketing objectives need to be specific with detailed information so that problems and opportunities can be identified. Secondly, the objectives need to be measurable so that people can understand if their goals have been met or any progress achieved. Thirdly, business objectives need to be attainable by considering factors such as budget, completion, and available skills and resources among many others. The fourth criteria are relevance meaning that the objectives need to suit the business goals and relationships. Lastly, objectives need to be time-bound so that businesses can achieve progress and make goals more achievable.
One marketing service strategy already adopted but can be improved by Cathay Pacific is increasing revenue through digital channel contribution. Considering the increasing bargaining power of customers, Cathay Pacific can intensify their reachability through their already established social media sites. Aside from radio and television, the airline can start paid advertisements on Instagram, Facebook and YouTube to reach a wider audience. The company can take a specific approach by ensuring that the adverts reach targeted customers and also in specific locations. Also, all services can be transferred to these social media platforms so that customers are saved from the trouble of going to offices but enjoy them wherever they are. From checking prices, bookings, offers and discounts, baggage limits and such, everything should be available online.
While being specific in terms of target customers and location, social media campaigns for Cathay Pacific will be more measurable, and progress can be realized. With already established social media sites such as Facebook, Twitter, and YouTube, the airline has the skills, budget, and resources to ensure their campaign goals are achieved. Furthermore, since social media is now an essential part of our life, it is only relevant for the airline to take such a route and go along with the evolution of the world.
Not only are social media campaigns essential, but they can also help to achieve time-bound objectives. Airlines are prone to experience high and low seasons based on several factors such as weather, politics, and holidays. For instance, during low-seasons, Cathay Pacific can use social media to campaign for their discount offers or any other extra products or services they are offering for certain low-season occasions to gain a competitive advantage from their rivals.
Secondly, in their objectives, Cathay Pacific should strive to provide high-quality services on their routes and markets that currently unserved or underserved but in high demand. As external factors such as fuel and labour costs among others continue to escalate, airlines are under constant economic pressure, and it is essential for them to always be sharp in looking for untapped markets. Competition continues to intensify as more and more airlines continue to offer similar products and services. They are developing strategies that focus on identifying key niche markets and serving to meet demands that are unmet or inadequately served. Also, the strategy should include meeting demands during peak traffics in seasonal and variable routes. This strategy will not only help increase revenue but also will also help the airline be the first in tapping to potentially huge markets that were initially ignored.
Marketing principles can be categorized into 4 Ps with an additional three to create more comprehensive strategies for businesses. With a proper mix of marketing principles, businesses can identify the needs and wants of their customers and address them accordingly. First is the product element where companies identify the goods and services they offer to their customer. There needs to be clear and adequate information on products and services offered, and they should be able to resolve the needs and or fulfil customer demands.
Cathay Pacific, one of the largest airlines in sales and market capitalization, offers a variety of product options for their customers. Their products comprise the ground services, in-flight service, core customer values; transportation service, cabin service, entertainment and lounges services, the Cathay Pacific brand and after-sales services. The quality of products and services offered can be aligned to increase revenue through digital streams and also serve potential markets.
Ensuring there are proper channels in which customers can air their complaints regarding the products and services they are consuming, especially through channels they would prefer, will ensure the airline provided high-quality services that meet customer requirements. Furthermore, through advertisements on digital platforms, Cathay Pacific can achieve its revenue target from the services they choose to offer. Also, through data analytics of such media platforms, Cathay can identify potential markets and measure their demands to understand what routes they can comfortably serve or improve services.
The second essential element is on the price aspect, where Cathay Pacific offers different prices based on choice. The choices include class: first, business, and economy class, the number of stops and distance travelled. Considering its high prices compared to its main competitors, adopting pricing strategies such as increasing complimentary packages, discounts on regular travellers, and premium beverages can help to retain customers more as they get more value for their spending. Also, with competitive pricing, adding subdivisions to the standard prices based on the class would lead to a more customized experience. Customers will learn that aside from the basic pricing, they can get more customized pricing based on their needs and wants hence get high-quality services whether they are on a budget or not. Moreover, subdivisions will help to identify market gaps that are not served or underserved as this will tend to identify the unmet needs and requirements of a part of its consumers.
The place is also an essential element in marketing. While the headquarters are in Hong Kong, Cathay Pacific ensure their services are available in all locations through their website. Cathay Pacific can reach more audiences through the use of social media platforms and increase revenue streams. Being known for its international routes that lead to over 200 destinations across Asia and Africa, introducing short routes would be of benefit to its customers. With short routes, Cathay Pacific can meet its strategy of serving unserved and under-served routes. To reduce the threat of substitution, although which is at minimum, adding shorter routes would attract more customers who usually prefer to travel by air no matter the distance. As a result, more customers are engaged; hence more revenue is recognized for the airline.
Promotion methods adapted are a very crucial part of the marketing mix that determines reachability to the intended customers, at the right time and place. Already with the promotion methods available such as the CX Mobile app for customers to check timings, check-in and also get a city guide. Also, they have social media sites such as Twitter and Facebook and make advertisements through television and radio. Since almost everyone is in social media, and most potential clients, promotion through these platforms such as in paid adverts would go a long way. This would ensure the targeted customers are reached more efficiently and promptly. This way, revenue can be predicted to increase through the use of digital channels.
Services provided should ensure that the process element is as simple and consistent as it could be. These services are the backbone of the process, and a lot of focus should be put to ensure customers enjoy smooth transitions from one stage to the other. The services, from booking, class lounge, customer relations, special services, and other services should be streamlined from the beginning to the end of the process. Digitizing most of the services such as online booking and making sure everything can be accessed through social media channels would ensure a faster and efficient process experience for customers. Furthermore, the complexity in serving new markets might make identifying new routes a problem. With a simple and consistent service process, Cathay Pacific can serve routes that have been ignored, due to their complexity.
Customers need a way of evaluating services provided by an airline, and this is done so through the physical evidence element. Aside from the tangible such as tickets, foods, and brochures, terminals should be equipped with state of the art facilities so that customers are assured of a more comfortable and luxurious experience. With a dedicated terminal, Cathay Pacific will gain a competitive advantage over its competitors, considering its high price since the high-quality services will ensure customers get more value from their spending.
Moreover, physical evidence can be enhanced through additional applications that give a visual experience of the interior and exterior of the plane and terminals. This means that the customer does not have to go to the airline to get visual evidence of the services offered as they can experience it form their phones. Customers can get interior, and exterior experience of the airlines from digital platforms hence can make more informed decisions.
Lastly, people play an important part in the chain of marketing element that creates a strong bond for marketing strategies for companies. Strategies should be streamlined into focusing more on customers as well as enhancing the skills and wellbeing of employees. As the face of the company, investing in employees ensures that customers get the best service experience from the airline.
Cathay Pacific has got over 20,000 employees in Hong Kong and around 33,200 worldwide. With the case of the first gap where customers experience disrespect due to their cultures and background, conducting customer research is essential so they can be more engaged. Customer satisfaction is one key ingredient in establishing a profitable business. However, maintaining customer satisfaction with the constant advancement in technology can sometimes prove to be a daunting task.
Digitizing customer engagement can help in handling grievances appropriately. Aside from emails, which responds to complaints should be improved, customers should be allowed to engage the airline in whichever channel they prefer. In this social media age, grievances channelled through such platforms should be taken more seriously and considered as one major source of improving customer service and engagement. Also, with the growing dependence on technology, customers are increasingly demanding more customized interactions for more satisfaction hence the need for providing high-quality services.
In conclusion, the airline industry continues to be competitive and implementing regular strategies might not always be helpful. Therefore it is essential for airlines to consistently identify innovative changes, as small as they can be, to always get the upper hand from their competitors. A study on the customer mindset will help to understand their needs and wants and unique and creative thinking can be used to develop better marketing strategies and a combination of effective marketing elements. Strategies such as digital channelling and customer engagement address issues with the increasing reliance on technology and customer service. Also, ensuring that all marketing elements are intertwined properly will ensure more effective implementation of strategies for airline businesses to realize profits and flourish in the industry.