Marketing Plan for United Airlines Essay

2764 Words May 13th, 2012 12 Pages
Marketing Plan for United Airlines
Jayne Diaz
BUS 620: Managerial Marketing
Professor David Kalicharan
February 20, 2012

Marketing Plan for United Airlines

Airline companies are becoming more and more competitive as the low budget discount airlines are becoming popular. It is key for airlines to differentiate themselves among the various airlines to choose from, and United Airlines wanted to ensure that it offered products and services for all marketing segments. “United realized that it needed to develop a customer-centric future strategy and galvanize its organization to improve the customer experience for its most valued customers” (Prophet, 2012, para. 1). This paper discusses the marketing plan for the newly merged
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carriers from flying the same routes from city to city. The competition is primarily all other airlines that fly the exact route, or an alternative route that ends up in the same desired city. Airlines that operate as a low-fare discount carrier or that have lower cost structures achieved through reorganization may be more competitive with the rest of the industry, resulting in lower fares for their passengers with a potential negative impact on United’s revenues (UAL, 2011, p. 8). Allegiant Airlines is a discount carrier that “focuses on transporting travelers in small cities to leisure destinations” (Allegiant Travel Co., 2012, p. 3). The airline is able to charge as low as $9.99 a ticket before taxes and fees because the flight schedule is extremely limited and the the originating cities are not main stream. Also, every extra service is charged for, including checked baggage, seat assignment, priority boarding, and all snacks and drinks. Another airline competitor that is considered a low-cost discount airline as well is JetBlue. JetBlue is rather unique because of its free direct satellite TV installed at every seat. The fares are also low with assigned seating and reliable performance. “The company is able to keep operating expenses low because it primarily flies only two types of aircraft with high utilization” (JetBlue Airways

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