British Airways Segmentation, Targeting and Positioning
British Airways segmentation, targeting and positioning refer to ways in which the airline company identifies certain individuals among the general public to offer their service packages. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Positioning refers to the selection of the marketing mix the most suitable for the target customer segment.
British Airways follows multi-segment concentration marketing strategy by offering four different service packages to different customer segments. Specifically, British Airways targets different customer segments for its four levels of services: economy, premium economy, executive and first class.
The following table illustrates segmentation, targeting and positioning of each category of British Airways services:
|
Segmentation bases |
Target segment | ||||
| Economy class | Premium Economy | Executive Club | First Class | ||
|
Geographic |
Region |
Domestic flights in UK
Europe and international flights |
Selected international flights | Europe and international flights | Selected international flights |
| Density | Urban & rural | Urban & rural | Urban | Urban | |
|
Demographic
|
Age | Kids, teenagers, middle-aged, old-aged | Teenagers, middle-aged | Middle-aged, old-aged | Middle-aged, old-aged |
| Gender | Male, female | ||||
| Income | Low | Middle | High | High | |
| Occupation | Students, salaried | Students, salaried | Businessmen
Professionals |
Businessmen
Professionals |
|
| Education | High school
Bachelor’s |
Technical
Bachelor’s |
Master’s
Business schools |
Master’s
Business schools |
|
| Social status | Low, middle | Low, middle | High | High | |
| Family size | Joint families | Nuclear families | Nuclear families | Newly married | |
| Psychographic | Lifestyle | Moderate-orientated | Moderate-orientated | Achievement-oriented | Achievement-oriented |
| Personality | Easygoing | Easygoing | Determined | Ambitious | |
|
Behavioural |
Occasions | Regular travel | Vacations | Business trips | Honeymoon
Business trips |
| Benefits sought | Affordability | Value | Luxury
Convenience |
Luxury | |
| User status | Regular traveller | Regular traveller | First timer, Regular traveller | First timer, Regular traveller | |
| Attitude | Indifferent | Indifferent positive | Positive enthusiastic | Enthusiastic | |
|
Travel and tourism industry base |
Customer expectations | Low | Medium | High | High |
| Customer image | Neutral | Neutral to positive | Positive | Highly positive | |
| Trip descriptors | Regular trip
|
Recreational | Business | Business
Honeymoon |
|
British Airways Segmentation, Targeting and Positioning
Appropriate market segmentation, effective targeting and attractive positioning are critical success factors for any business because no product and service can be equally valued by all members of population due to the differences amongst population members in many levels.
In order to achieve long-term growth, it is important for British Airways to be concentrating on enhancing value perception of its services by present and perspective customers within target segment. Service value perception can be effectively increased by British Airways top-level and marketing management by maintaining strategic customer relationships in relation to all segments and application of creativity and innovation to many business processes.
British Airways Report constitutes a comprehensive analysis of marketing strategy and business strategy of the airline company. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on British Airways. Moreover, the report contains analysis of British Airways’s leadership and organizational structure and discusses the issues of corporate social responsibility.
