Abstract
Boeing remains one of the leading innovators and marketers of superior aircraft in the global aviation industry. The Boeing 787 Dreamliner is a superior aircraft that has attracted the attention of many corporate clients. The proposed marketing plan entails the use of competition to dictate prices for the aircraft. The use of effective TV ads, coupons, and social media platforms will make the marketing strategy successful. The positioning statement is that the Boeing 787 Dreamliner is a superior aircraft that delivers cutting-edge electronic systems and control features to improve the experience of every passenger.
Company Overview
The Boeing Company (simply called Boeing) is “a multinational American company that designs, engineers, and produces aircraft, rockets, and rotorcrafts” (Boeing, 2016, para. 3). The company is one of the leading players in the aircraft manufacturing industry. It is currently “the leading exporter of aircraft in terms of revenues” (Boeing, 2016, para. 4). The company owns Boeing Commercial Airlines (BCA) which assembles and markets a wide range of aircraft (Boeing, 2016).
Mission statement
Boeing has an outstanding mission statement characterized by different values, visions, and imperatives. The ultimate goal of the mission is “to attract diverse people together and work as a global enterprise capable of maintaining aerospace leadership” (Boeing, 2016, para. 5). These players support the tradition of aspiration, imagination, and innovation to achieve the best results.
Product description
Boeing has several business divisions that play a positive role in realizing every goal. One of the leading divisions is the Boeing Commercial Airplanes (BCA). The division designs, engineers, and assembles various business and jet aircraft (Boeing, 2016). The division also markets such airplanes to the targeted customers. The targeted product, the Boeing 787 Dreamliner, is produced and marketed by BCA.
Competitors
The global aircraft manufacturing industry has several players. These manufacturing companies compete directly with Boeing. As well, the company’s defense and spacecraft segments encounter competition from other companies across the globe. The leading competitors, therefore, include Northrop Grumman Corporation (NOC), Airbus Group, and Lockheed Martin (Boeing, 2016).
SWOT Analysis
Strengths
- Boeing markets a wide range of products such as jetliners, business, and commercial aircraft.
- Ability to provide superior defense applications and integrated systems.
- Ability to “produce advanced and high-technology aircrafts” (Benkard, 2004, p. 593).
- Strong financial position and performance.
Weaknesses
- Boeing’s enormous research and development (R&D) spending amount to over 3.3 billion dollars.
- Pension costs are extremely high for Boeing.
- The firm uses a semi-autocratic leadership and managerial system.
- Labor problems and reduced employee morale tend to affect Boeing’s productivity.
Opportunities
- The demand for aircraft is on the rise.
- More countries currently require integrated and superior defense systems.
- Market demand for missile systems and communication satellites is on the rise (Monrabal, 2014).
Threats
- Terrorism threatens the performance and profitability of the firm.
- The industry is widely monitored and controlled through government regulations.
- Employee turnover is “a major threat due to overworking” (Monrabal, 2014, p. 189).
Market Segment
Primary and Secondary Markets
Boeing markets its products to corporations and agencies in different parts of the world. This means that the firm’s marketing goals are business-to-business (B2B) in nature. These airline companies form Boeing’s primary market. These primary customers include corporate clients such as airline companies. Such clients purchase their aircraft directly from Boeing (Monrabal, 2014). The company has therefore been marketing its products to many corporate clients since 1916.
There are also secondary markets that support Boeing’s business model. For instance, the company receives orders from different governments. For instance, the company sells its aircraft to the United States government. As well, other state-managed airlines across the globe purchase their aircraft from this company. Different agencies such as NASA also purchase their equipment from the corporation (Monrabal, 2014).
Rationale
Corporate customers form Boeing’s primary market since they purchase most of its products. Most of the products designed and marketed by Boeing, therefore, target these primary customers. Secondary markets have also made it easier for Boeing to achieve its business potentials (Monrabal, 2014). These customers have been grouped as secondary markets because they place orders in advance. However, these secondary customers present a smaller percentage of Boeing’s total annual sales.
Marketing Mix (4Ps) and Branding Strategy
Product Identification
One of the most outstanding products marketed by Boeing is the 787 Dreamliner. This is “a long-range, mid-size, twin-engine aircraft with a sitting capacity of between 242 and 335 passengers” (Boeing, 2016, para. 7).
The seats can be arranged differently to be configured for the three typical classes. This craft is characterized by several strengths compared to its predecessors. For instance, the aircraft minimizes fuel consumption by over 20 percent. As well, the 787 Dreamliner has “an advanced electronic flight system, noise-reducing chevrons, and swept wingtips” (Monrabal, 2014, p. 189). These features make it easier for pilots to operate the aircraft with much ease. These features explain why the aircraft is admired by both secondary and primary customers.
Price Strategy
Pricing Strategy: Competition
The most important thing is to ensure Boeing realizes its business potentials. That being the case, the company can use a powerful marketing strategy characterized by competitive prices and promotional practices. The Boeing 787 Dreamliner is currently marketed at around 275 million US dollars (Monrabal, 2014). However, the company can embrace the use of a new pricing strategy. The company can monitor the prices of the immediate competing aircraft in the market. By so doing, the firm will analyze the level of competition. This knowledge will ensure the new price for the aircraft competes with its rivals in the market. Competition is, therefore “an effective pricing strategy capable of attracting more customers” (Monrabal, 2014, p. 190).
Rationale
The above pricing strategy will make it possible for Boeing to compete with NOC, Airbus, and Lockheed Martin. The concept of the competition will ensure the prices are variable depending on the strategies undertaken by the other companies. As well, the pricing strategy should focus on the behaviors and expectations of the targeted customers. The firm should work hard to market more aircraft. Boeing is revered across the globe because of the uniqueness and superiority of its brand (Monrabal, 2014). That being the case, slightly higher prices will ensure more customers in both the primary and secondary markets are willing to purchase the Boeing 787 Dreamliner. The prices should also be altered depending on the strategies undertaken by different competitors (Keefe, 2010). However, the prices should be able to deliver desirable profits to the company.
Pricing and Market Positioning
Prices that focus on the level of competition in the marketplace can transform the playing field. Boeing should consider the prices of different competing aircraft in the market. By so doing, the firm will be able to position the product properly. The pricing approach will be supported by the company’s positive brand image. More B2B customers will be ready to purchase the 787 Dreamliner because of its superiority, safety, and effectiveness (Ackert, 2012). The company should ensure the product’s price is changed depending on the tactics used by the major competitors. This effort will create a positive perception in the market. The strategy will make sure the aircraft “occupies an advantageous and clear position in the minds of different corporate customers” (Ackert, 2012, p. 13).
Place/Distribution Plan
Business organizations should use effective distribution channels to inform more customers about targeted products. However, the product targeted by Boeing cannot be distributed because of its size. This fact explains why a powerful strategy is needed to inform more potential customers about the 787 Dreamliner. The firm can, therefore, open new centers on different continents. For instance, hangars can be constructed in different regions where there are potential corporate customers (Keefe, 2010). One or two aircraft can be displayed in such hangars to encourage more people to place their orders. The ordered planes will then be delivered to the customers within the shortest time possible (Ackert, 2012). The firm should also communicate directly with different corporate customers and governments to maximize profits.
Advertising and Sales Promotion Plan
Powerful advertising and sales promotion strategies are needed to make the targeted product successful. The first issue to consider is how the target market can be informed about the new aircraft. The company’s website should be used to inform more people about the 787 Dreamliner. Corporate customers and governments will be sensitized about the specifications of this new aircraft (Ackert, 2012).
Effective advertising practices should inform more potential customers about the 787 Dreamliner. Several media platforms will be used to make the advertising process successful. Television ads will ensure more people are aware of the aircraft’s superior features. The company’s website will also be used to promote the product. Many potential customers always visit Boeing’s website. This fact explains why the website will play a positive role in promoting the 787 Dreamliner. Social media platforms such as Facebook and Twitter will also be used to advertise the product. This is the case because more people have access to social media (Neti, 2011).
Sales promotion approaches will also be used to advertise the product. For example, coupons and brochures will be designed to sensitize more potential customers about the aircraft. Such coupons will also be included in several leading aircraft and aviation magazines (Ackert, 2012). The coupons will outline the major attributes, advanced systems, and benefits of the aircraft. These promotional methods will attract more potential customers and eventually make Boeing the most profitable firm in the industry. The company should also monitor the effectiveness of the marketing strategy to make the most desirable adjustments.
Branding Strategy
- Brand Name: Boeing.
- Product Name: Boeing 787 Dreamliner.
Slogan
At Boeing, our vision is to attract people who can work together to promote aerospace industry leadership. This is achieved through our tradition of imagination, commitment, innovation, and aspiration in an attempt to produce superior crafts that add value to our esteemed clients.
Reference List
Ackert, S. (2012). Basics of aircraft market analysis: forming a policy to identify ideal assets for long-term economic returns. Aircraft Monitor, 1(1), 1-29.
Benkard, C. (2004). A dynamic analysis of the market for wide-bodied commercial aircraft. Review of Economic Studies, 71(1), 581-611.
Boeing. (2016). Web.
Keefe, E. (2010). Interactions in the markets for narrow and wide-body commercial aircraft. Web.
Monrabal, J. (2014). Marketing communications in industrial B2B markets enhancing the value of the corporate brand relying on common added values. MINIB, 5(1), 187-191.
Neti, S. (2011). Social media and its role in marketing. International Journal of Enterprise Computing and Business Systems, 1(2), 1-16.