LuxJet - Premium Business Class Travel Essay Between Sydney And San Francisco.

LuxJet Target Audience: Senior executives who regularly travel between Sydney and San Francisco

LuxJet is a brand-new airline, launching September 1st, 2017 that will be offering premium travel between Sydney and San Francisco. The daily service will feature a luxuriously appointed Airbus A340 that has been converted to hold 88 fully-reclining business class seats. Passengers are picked up from their home or office by a limousine service and access a rapid immigration and customs service both in Sydney and San Francisco that saves them considerable amounts of time. The flight attendants, recruited from leading airlines across the world, provide exceptional standards of service, including access to chef prepared gourmet meals. The plane also features a fully equipped business centre with internet access, secretarial support, teleconference facilities and a gymnasium.

Based on their market analysis LuxJet believes there is a ready supply of senior executives who regularly travel between Sydney and San Francisco and who would make up the target audience. Thus, LuxJet hopes to primarily take market share away from existing major carriers such as Qantas, Virgin and United Airlines. The cost of a flight on LuxJet is approximately 50% more than the cost of a business class fare on a major carrier. LuxJet has no intention of competing on price as they believe that this would devalue perceptions of their product. Their preliminary market research has also indicated that their target audience are reluctant frequent travellers, who do so out of necessity.

LuxJet’s founder and CEO, Barbara Printup (who left CSP after the unfortunate failure of Metabical) has asked you to join the company as a consultant and to offer your advice to assist her with the marketing communications strategy of the airline in Australia – that is travellers departing Sydney.

You are required to address the following matters:

Prepare your answer to this question as a brief strategic report to Ms Printup that contains the necessary insight and recommendations to the issues identified more specifically below.

Consider the concept of behaviouristic segmentation contained in your studies and recommend and justify which (one) group you believe would be most strategically desirable for LuxJet’s primary target audience. What other determinants could be overlayed with this audience to strengthen its validity? With this enhanced target audience in mind, explain which two communication objectives you would recommend LuxJet strategically focus on over the next six months? What specific aspects of these objectives would they need to focus on especially?

Prepare your answer to this question as a brief strategic report to Ms Printup that contains the necessary insight and recommendations to the issues identified more specifically below.

LuxJet Communication Objectives: Building a positive reputation through highlighting premium features and convenience, Stimulating the need and desire for premium travel

Write an appropriate positioning statement for LuxJet, using the standard approach detailed in your Marketing Communication Strategy studies. Justify your positioning statement, explaining how it can best accommodate the goals of the airline. Which one primary media communication method and two secondary (or supporting) media communication methods would you suggest the company predominantly utilise in their first six months to reflect this positioning? Justify your selections and indicate how your choices would affect and contribute to a desirable reach and/or frequency. Clearly outline a preference and rationale for either maximizing reach or frequency at this juncture

Prepare your answer to this question as a brief strategic report to Ms Printup that contains the necessary insight and recommendations to the issues identified more specifically below.

Keeping in mind the goals of the company, outline and justify an appropriate Sales Promotion that LuxJet could run to generate interest in its brand at launch. Suggest and detail one other integrated communications activity (linked to your suggested sales promotion concept) that you would recommend LuxJet use to stimulate “buzz” or excitement for its launch phase? How may Cause-Related Marketing assist LuxJet to overcome some of the short-comings of sales promotions? Present an argument for this and a suitable cause that may facilitate branding goals.

Prepare your answer to this question as an executive summary to Ms Printup that contains the necessary insight and recommendations to the issues identified more specifically below

Which section of the Rossiter-Percy-Bellman Grid would LuxJet most likely be in? Based on this, justify and detail an appropriate creative strategy and appropriate supporting tactics that LuxJet could utilise in an integrated marketing communications campaign to launch the airline. Include an example of a remote-conveyor that could be used for a central campaign theme and present your rationale for whether the central or peripheral route to persuasion would play a more important role and why? At the very conclusion of your report please recommend and justify a slogan/tagline for LuxJet that specifically fulfils the requirements of assisting the objective of Brand Recall.

Prepare your answer to this question as a memo or conceptual paper to Ms Printup that contains the necessary insight and strategic direction to the issues identified more specifically below.

Over a low-calorie business lunch Ms Printup tells you that she believes that because of diverse and emerging communication channels, consumers have become more in control of marketing campaigns directed at them. What does she mean here? How can LuxJet allow its target audience to exercise its control over the decision-making process and show how they experience brand messages? Give examples of appropriate and integrated (to the audience, position, strategy and tactics you outlined in earlier questions) activities that you recommend they undertake to facilitate this experience. What unified approach and contemporary perspectives could Ms Printup use to move unknowns to customers to advocates, and the respective metrics in doing so? (9 marks)

LuxJet Target Audience: Senior executives who regularly travel between Sydney and San Francisco

Behaviouristic segmentation of the audience

There are three ways to broadly classify the market according to the consumer criteria –– behavioural, psychographic and profile. The concept of behaviouristic segmentation aids in dividing the target market into groups after considering the many variables like the benefits, occasion, user status and rate, and their level of loyalty and readiness, as well as their attitude (Ahsan et al. 2014). These distinctions are made when identifying their approaches towards specific groups and take into account the behavioural patterns of the consumers or the audience. The different segments can be listed as mentioned below ––

• Purchase occasion:Regular, special
• Benefits demanded:Service, quality, economy
• User status:ex-user, first-time user, regular user, potential user or non-user
• Loyalty rate:Absolute, strong, medium, none
• Readiness stage:Aware or unaware, informed and interested to buy
• Attitude towards the service:Enthusiastic, positive, indifferent, negative, hostile.

The decision-making technique of any consumer is hierarchical, especially when conducting a purchase that is rational in nature. It might sound logical, but sometimes these elements are not pieced together when constructing the plan for market communication (Nikbin et al. 2016). There is a failure when trying to link the concepts together in order to find out who the target audience should be. There are a number of factors that are to be considered when singling out the target market or audience:

The products and services that any company offers are to be reviewed, and the benefits and features are to be considered. One has to narrow down the group of people that would exclusively draw advantages from it. Also, the existing customers have to be analysed to determine who utilises the services of LuxJet on a regular basis. The competitors will also have to be considered, along with a scheme of self-evaluation to determine if the services are up to their expectations or not (Shaw 2016).

In order to determine the target audience, market segmentation is of utmost importance. There should a thorough understanding of consumer behaviour or the selected primary target audience.

As per the research carried out by LuxJet, the potential target audience are the senior executives from the corporate sector who have to travel regularly between Sydney and San Francisco. This is because these people travel such distances regularly out of sheer necessity, and are often unwilling to undertake such journeys.

For the upcoming six months, the communication objectives for LuxJet have to be outlined clearly to reach the goals of their promotional programme (Hwang and Hyun 2017). The two communication objectives to build a positive reputation of the luxury airline company could be the projection of an image that will be beneficial to the company and by stimulating the desire or the need of the target public (Nikbin et al. 2016).

LuxJet Communication Objectives: Building a positive reputation through highlighting premium features and convenience, Stimulating the need and desire for premium travel

The cost of a LuxJet flight is about 1.5 times the price of a business-class fare of any regular airliner, such as the Qantas or the United Airlines.However, the positive aspects of the airline are its exceptional standards of service, and its gourmet catering options (Khedher 2016). The pick-up facilities provided are also something that would attract a lot of people and help in building a strong client base (Ahsan et al. 2014). To build a positive reputation and image of the company, LuxJet needs to highlight its key and premium features, such as its on-board business centre, which has full access to the internet and teleconferencing facilities, and is equipped with a gymnasium as well (Ahsan et al. 2014). This will make the travelling experience of the executives much easier and relaxed, and will promote its brand image as a corporate-friendly one (Ahsan et al. 2014). The business-class suite offerings complete with reclining seats and the best flight attendants from the top airlines of the world will further promote its name as a service group who are extremely concerned about meeting the needs of their consumers with great care (Beise-Zee 2013). The interest of the people will be provoked automatically when they will get the facility of limousine pickups from their place of preference. They will also be offering a speedy immigration and a rapid customs service as well, at both Sydney and San Francisco. This will definitely attract the people from the corporate sector who are busy and therefore have very little time to invest in these affairs.

There are several areas for LuxJet which need special attention; the costs of their flights are a bit too high, and are therefore unaffordable for many who may not be a part of the corporate sector (Hwang and Hyun 2017). This poses a challenge to it as the services of the competitors are priced at a much lower rate, and therefore the majority of the people would definitely prefer the cheaper option. If the company can cut down on the prices to some extent without compromising the quality of their services, they would be nearly impossible to defeat in their field.

Positioning statement

Any positioning statement considers three factors which can be referred to as the TCB model: the Target customer, the Category need, and the Brand’s key benefit. A proper and sufficient understanding of this TCB model provides the information that is necessary for writing a clear positioning statement for any organisation. An apt positioning statement for LuxJet would be ––

LuxJet Positioning Statement: Luxury airline providing personalized service, gourmet meals, and convenience for busy executives

To senior executives from the corporate sector who have no choice but to make long-distance flights every now and then, LuxJet is the airline which offers a world-class and luxurious flying experience between Sydney and San Francisco. This is evident in their A-grade catering service coupled with the best flight attendants in the business, complete with a personalised system of home and office pickup and the availability of a lightning fast immigration and customs service.

The above mentioned positioning statement is highly justified, as there are a lot of people who are involved in the corporate sector and have to travel across countries almost every other week. Most of these flights are made between Sydney and San Francisco, and thus the target market has been aptly chosen. The home and office pickup service that will be provided will not only facilitate timely travel but also ensure that there is little or no time wasted while going to the airport location.

The catering service is also a bonus, as the executives on-board will be entitled to the finest cuisines made by the best of chefs, and that will definitely make their experience a memorable one. To meet the high standards of the airline, LuxJet will hire only the best and the most skilled airhostesses from the currently operating airlines from all over the world, as they want to give their clients only the best in the business (Davis et al. 2013). There will be available a fully functional business room, which will have access to the internet at all times, have secretarial support, and also provide teleconferencing facilities to assist the executives in case they need to set up emergency meetings or the like. The LuxJet airplanes will have a fully equipped gymnasium as well (Beise-Zee 2013).

International travel has many legal or jurisdictional regulations as well, and most of the time, they are highly time-consuming (Beise-Zee 2013). The faster processing of immigration and customs services will cut down considerably on the time wasted on those activities. The overall infrastructure of the airbus will provide a relaxing and comfortable environment for their clients to travel in.

Communication is perhaps the most integral part of any business, and there are multiple ways to do that. The primary method of communication that can be a face to face interaction. The representatives from LuxJet should have excellent inter-personal skills to make this venture a success in their target market. The representatives or brand ambassadors can then visit the potential customer at their workplace and explain to them in detail what the services are, and work towards building a strong and loyal client base.

LuxJet Media Communication Methods: Primary - Digital advertising, Secondary - Print ads and billboards, Event sponsorships

The secondary means of media communication for the six-month period could be television advertisements, and social media utilisation (Hwang and Hyun 2017).

A face to face means of communication will always be the most preferred mode of communication when any new business is involved. This is because a personalised touch is always appreciated and valued in the world of business. The representatives of LuxJet would be the best people to brief the people on their services and facilities, and the senior executives or the potential clients can also clarify any doubts directly.

The television is undoubtedly the most popular modes of entertainment, and an advertisement featuring the luxurious airbus will certainly garner a lot of attention. The motion advertisements will help to capture the interest of the people as a person is naturally hardwired to be inclined towards luxury and comfort (Hwang and Hyun 2017). Also, social media will play an integral role in promoting the brand image of the company. Most corporate associations and firms have accounts on social media platforms, and can therefore be targeted with fairly high chances of success (Ahsan et al. 2014). Facebook is an example of a great social media platform to connect with different people as well as organisations from all over the world. Its instant messaging feature adds value to its services. There is Twitter as well, and LuxJet can utilise that social media site to keep their clients updated on their latest offers and developments. Also, if they come up with innovative or newer offers regarding their airline, they can inform their clients through these platforms in a very easy and compact manner (Al Katheeri and Ocler 2013).

Sales promotion to generate public interest

Sales Promotion is one of the main ways to attract customers. Attracting customers helps in the growth of sales. Sales promotion of an Airlines Company is aimed at the target audience of the company. LuxJet has implemented some new programs before starting the business that will help it to woo the target group of customers and provide them with a totally new experience. There are some unique strategies that have been considered by the management of Luxjet to earn applauds in the industry (Davis et al. 2013).

Customer Perks

• The company will be opening an official website that would be designed by the IT experts and would be having a daily feed containing the latest updates. The website will be having different blogs by Airline experts containing Search Engine Optimized copies which would be useful to set apart the company from the services provided by all the other airlines.
• Provide professional and high end training to the different crew members to adapt to the luxury mode of service offered by the mentioned company.
• Luxjet must promote its airlines through the use of social media and can also use you tube or other sites to advertise their brand.
• As mentioned earlier the Luxjet will offer premium business class services from Sydney to San Francisco. The Airlines Company must focus on the target group of customers by offering special services like mid air conferences, premium spa services and many more to make the customers more attracted towards availing the flight.  

Contacts with Customers

Senior Executives and the top management of LuxJet have decided to implement mobile marketing to attract the target customers in the digital world (Stumpf 2016). The different services provided by the company include booking the flight by mobile and also online payments of the tickets. The company will also provide details of the different services offered by them (Beise-Zee 2013). The mobile booking facility of LuxJet Airlines will help the company to build a strong customer loyalty and in turn begin its business with a bang. The company has also decided to use mobile only offers given the increase in the Smartphone users over the decade. Providing e-statements, e-alerts, different messages and information regarding flight schedules, delays and cancellations is also provided by the service provider to the users to make the system more transparent (Blakeman 2014).

LuxJet Sales Promotion: Luxury travel package with limousine service and complimentary gourmet meal, Integrated Communications Activity: Social media campaign to share customer experiences and promote brand

Luxjet Airlines has decided to use a special strategy to boost its marketing campaign. The particular strategy has been named ‘Transfarency”. It involves the use of different types of communicating tools of the modern world to promote its brand in the market (Holloway 2017). These include radio, television, print media and social media sites. The promotion is based on how the people will receive the different services of the company which includes information about the luggage, flight arrangements, flight services, food packages and safety and security checks (Crespo-Almendros and Del Barrio-García 2016). The company has also decided on following a metrics structure to start a two way communication between the company and the service users. This helps to address the needs of the customer and to know the exact demands of the customers. LuxJet will find it much easier to improve its performance based on the feedbacks of the customer.  

Cause Related Marketing refers to the marketing strategy of a company where it teams up with a charitable organization or an NGO and provides a solution to some social or other problems of the environment (Davis et al. 2013). Luxjet has effected a perfect cause related marketing that helps to market its brand as well as perform social responsibility (Crespo-Almendros et al. 2015). Recently Ms. Printup has signed a MOU with a leading NGO of Sydney and has started arranging different events to perform the social activities (Beard 2016). The mentioned airlines company must have a proper cause related marketing which has many advantages;

• Brand awareness for both the companies participating in the marketing
• Increased capability to attract and retain target customers as well as engage best employees.
• The growth in sales
• Engaging New and potential customers

Sponsoring regional and international events like arranging different job fairs, interactive sessions, different training programs or job related courses for the unemployed can be taken up as part of such marketing (Ahsan et al. 2014). The company can help the persons to freely mix with them in these sessions and help them to explore different possibilities that may help them to shape up their carriers. The mentioned Airlines company which will be venturing into the skies of Sydney has also decided to employ some people coming from the backward strata of society as a jesture of goodwill towards the society and as a mark of non discrimination. LuxJet Airlines has recently signed a memorandum of understanding with a Non Governmental Organization to effectively carry out its social responsibilities (Taneja 2017).

Branding goals are the goals that are achieved by the organization by promoting its brand in a proper way. The main branding goals of LuxJet are;

• Building Awareness- The mentioned Company has aimed to build awareness in the market that will help in the increase in sales and make the customers prefer the brand.
• Product Differentiation- Branding helps to differentiate the service or the products of one company from the other. The service offered by LuxJet is totally different from the other brands of Airlines. It is a premium brand of business class airlines providing high end services which matches with no other service of the company.
• Motivating customers- Promoting the airlines brand by means of creative advertisements will help Luxjet to attract more and more customers.

LuxJet on the Rossiter-Percy-Bellman Grid: Identification, Creative strategy: Central theme of tailored luxury travel experiences, Peripheral route to persuasion

As per the grid designed by Rossiter and Percy, the marketing and communication plan of a company has multi dimensional approach it can be either high or low.  According to the grid, a company needs to specify four different strategies in order to create an effective marketing and advertising plan.  These four strategies are classified n to the involvement: high and low- of the product or service on offer. The others are categorised in to two- informational and transformational.  Encompassing the effectiveness of these four strategic elements a company can carry out the actual plans. As a matter of fact, it can be stated that the basic understanding of the entire case whether the selected companies fall in to a specific grid point suggested by Rossiter and Percy, entails the entire effort to capitalise the marketing and communication plan.  According to the designed grid, the placement of the companies in to the grids is quite flexible depending on the present marketing situation and risk.  In order to find out how the companies are running in to the matter of the same, the gridding placement needs to be ensured. The following figure portrays the strength of advertising and communication plan in general.

In terms of LuxJet it can be stated that the marketing and communication strategy can be placed in different positions. The positioning of the entire marketing plan of the company can be conceptualised in to two different dimensions.

  In its very first venture of the marketing and advertising campaign LuxJet can be placed in its Low Involvement and Informational Grid (Davis et al. 2013). The reason behind considering so is the sprouting age of the company’s advertising strategy (Bansal et al. 2014).  In its initial venture LuxJet would aim at informing the targeted customers pertaining to the newly launched facilities and quality of basic service offered by the company to the customers. As a matter of fact, the basic information would be aiming to create a clear perception upon the customers.  This grid acts as a string obedient to the stream. For instance, after the first convincement and conviction to the product through the initial course of advertisement, LuxJet’s campaign can be driven towards High transformational grid. Since the transformational grid is flexible it as the basic understanding of the entire course of the marketing campaign.  The reason behind doing so is the consideration of the risk during the advancement of the campaign.  Since there would be the involvement of greater number of the existing customers, the campaign might shift its gear to the transformational level (Chong et al. 2016).

LuxJet Slogan/Tagline: Experience Premium Travel with LuxJet

Though the campaign would be placed to the higher transformational grid, it is subject to the understanding of risk factors. If the company finds out that LuxJet begins to lose a greater number of customers, the grid placement can be lower transformative.

Nowadays, people are more aware of the products and services available in the market. The curiosity among the customers has also increased and they are more attracted towards unique things. The intense competition in the market among similar products has resulted in the popularity of marketing campaigns in order to persuade and attract the customers. The market nowadays witnesses multiple producers of more or less same products who sell their product at almost similar prices. Since the quality, quantity, price and features are almost similar, the marketers use several marketing tools such as advertisements, sales promotion and many more to differentiate their products (Ili? et al. 2014).

The popularity of social media has also increased the importance of various marketing campaigns. According to (Davis et al. 2013) the increased awareness of the customers has made it difficult for the marketers to easily persuade the customers for buying their products or services. Customers nowadays watch advertisements to know about the product features and compare the features with the other products before finally purchasing a product or service. The changes in the consumer behavior have increased the importance of marketing campaigns as the customers go through several stages before finally purchasing a product or service (Hwang and Hyun 2017).

People nowadays purchase what pleases them. The buying pattern of the customers has totally changed in the recent times (Ahsan et al. 2014). Therefore, the marketers are required to study the tastes and preferences of the customers before coming up with some new product or service (Hwang and Hyun 2017). Similarly, the marketers are required to marketize their products in such a manner that it appeals the customers and forces them to buy their products (Garnett et al. 2014).

It has been observed that innovative marketing campaigns have huge potential of attracting the customers and converting them from potential customers to loyal customers. Interactive marketing campaigns that involve participation of the customers have been more successful in recent times. The importance of marketing is constantly increasing with every passing day (Davis et al. 2013).

Ms Printup meant to say that the various communication channels such as social media, television, mobiles and direct face to face communication have become very important as they enable the organizations to interact with the customers and attract them towards their products and services (Beise-Zee 2013). Nowadays, customers no longer focus upon the features and qualities of the products and services as there are several companies that sell almost the same products. The buying behavior of the customers largely depends upon the marketing campaigns and advertisements (Davis et al. 2013). The customers tend to purchase those products or services that attract them through the marketing strategies. It has also been observed that the customers tend to purchase those products and services that attract them even if they do not require them (Jarach 2017). Therefore, it can be stated that the buying behavior of the customers are more dependent upon the marketing campaigns rather than the needs and wants of the people (Lafferty and Edmondson 2014).

According to Ms Printup, LuxJet must focus upon its marketing campaigns in order to attract the customers towards their brand as the consumer behavior is highly dependent upon the marketing campaigns (Min, Kim and Zhan 2017). The customers know only about those products that catch their attention. There are thousands of products in the market but only a few attract the customers and this is highly dependent upon the marketing campaigns. Many a times, the marketing campaign or advertisements emotionally appeal the customers in to buying the product or service. Repeated advertisements and marketing campaigns have the power of reminding the customers about the products and services and do not allow them to forget about the products or services. The effectiveness of the marketing campaign decides the success or failure of a product or service. A potential customer is converted into a loyal customer when the product or service lives up to the benefits promised in the advertisement. Therefore, it can be stated that due to the rise in the importance of marketing campaigns and emerging channels of communication, Ms Printup believed that consumers have become more in control of the marketing campaigns (Som and Blanckaert 2015).

The target audience of LuxJet is the niche market where the customers choose the economy class to travel from one place to another (Ahsan et al. 2014). The passengers who are paying very high for their travel always want to have a luxurious journey with added facilities (Belobaba, Odoni and Barnhart 2015). Customers’ decision-making process is influenced by the service quality, which an airline is able to provide. The appearance of the equipments, physical facilities and the staff has influences on the selection behavior of airline of the customers (Chandra and Lederman 2015). Reliability is another factor that guides the passengers in selecting a particular brand of airline (Ahsan et al. 2014).

The integrated strategies of Printup include the segmentation, targeting and positioning strategies and also the marketing strategies that can help the company in attracting the customers (Bochenek and Blili 2014). The company has targeted the niche market where people love to pay more for their travel by flight and expect additional features. The geographic segmentation can be the urban people of the cities of USA and Australia (Ahsan et al. 2014). The primary target market is the people from San Francisco and Sydney. The ages of the customers are mainly the corporate people and some customers who like to go abroad on vacations. Some of the customers may feel to choose the airline of the company for regular visits (Min, Kim and Zhan 2017). The gender of the customers can be both male and female. The income of the customers can be from very high, high and middle class people. The social status of the customers’ needs to very high. The lifestyle of the customers of the brand must be moderate-oriented or achievement oriented. These types of customers have the tendency to take flights for recreational activities (Taneja 2017). 

Printup may take various strategies in order to attract the new customers and make them loyal for the company. She can take the advantages of the rise in airport and airline apps to create awareness among the consumers who search for information through their mobiles. Digital displays can help in the enhancement of awareness among the consumers. She can arrange for rewards for the new customers. The company needs to update all the online content and give new information to enhance the awareness of the brand (Grant 2016). The company can also resort to new promotional strategies in the social media, televisions and creating videos in the YouTube (Scott 2015). Restructuring of the Airlines Company and improved usage of the customer loyalty programs can help in attracting customers towards a new brand (Jarach 2017). Printup has the option of considering rewards during the booking season and keep certain facilities of online and mobile redemption. She can increase the customer contacts through mobile marketing, which is a powerful tool now. The company can arrange to help the customers by offering messages, e-alerts, tips, promos and updating them with the most recent information regarding the company (Ahsan et al. 2014). It can create a mobile community that can satisfy the needs of the customers. Since the company is new in the airlines industry, it should provide some additional benefits to the customers than the competitors in the industry that can attract a considerable number of competitors towards them. The quality of the food should be of very high quality that can satisfy the customers who will be boarding the flight for the first time. The company must build trust through the creation of relationships with the customers who are using the brand for the first time (Min, Kim and Zhan 2017).

Conclusion

The report has been prepared based on the marketing strategies of LuxJet Airlines Company; one of the recent companies has decided to start its operations in Sydney. The report outlines the target audience and the objectives of the organization. It also highlights the communication methods that the organization will use to promote itself in the market. The use of Rossister and Percy grid has helped to prepare an integrated marketing plan for the mentioned Airlines Company. Using an attractive slogan like “Luxury in Divinity” can further help to attract more customer.

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