Boeing Company’s Analysis and Marketing Plan

Topics: Boeing, Marketing Words: 2108 Pages: 8

Boeing is one of the internationally recognized manufacturers of commercial airplanes, space, defense, security systems and global services. It is a multinational corporation based in Chicago, US and operates in the aviation sector (Bockel, 2018). The company was established in 1916 by William A. Boeing. It started by selling airplanes to the US Navy and later ventured into other markets and started manufacturing other products. At the end of 2021, the company employs more than 142,000 people and operates in more than 65 countries across the globe. Boeing generated more than $62 billion in revenue in 2021 (Boeing Company, 2021). Therefore, Boeing is a global leader in the manufacture of aircraft.

Situation Analysis

Strengths	Weaknesses
Boeing has a strong market position. It is highly innovative, owing to its strong research and development. The performance of the company depends on its strategic partners. Boeing has recorded growth in revenue and operating income (Boeing Company, 2021).	Increasing cases of employee layoff can adversely affect its reputation. The company had experienced cases of tax evasion. Over-dependence of suppliers. The unsafe design of the Boeing 737 affected its image.
Opportunities	Threats
The increase in the demand for commercial planes. The growing aerospace and defense market across the globe. The increasing need for eco-friendly planes relates to its mission of reducing environmental impact (Boeing Company, 2021).	High competition in the sector. The ongoing COVID-pandemic reduces international travel. Lawsuits and increasing compensations for flaws. Changing government policies and high taxation.

Table 1: SWOT Analysis.

Political factors	Social factors
Trade regulations. Changes in taxation policies. Industrial safety regulations. The political stability of the US and countries where it operates (Wurthmann, 2019).	Leisure activities. Migration. Assess essential services.
Economic factors	Technological factors
US stable economy. The effectiveness of the financial market in the US. The existence of crucial infrastructure.	The emergency of 5G technology and its benefits. Intense research and development in the sector.
Environmental	Legal
There is an increasing demand for sustainable operations. Laws regulating pollution and reducing carbon footprint. Climate change issues (Wurthmann, 2019).	Employment laws in the US and operational countries. Environmental laws. Safety laws.

Table 2: PESTEL Analysis.

Competitor	Description
Airbus	Airbus is one of the manufacturers of commercial aircraft, defense technology and space. The company is based in Leiden, Netherlands and was established in 1969 (Dusso, Holyoke and Schatzinger, 2019). It employs more than 130,000 people and earned a revenue of $457 billion.
Lockheed Martin	Lockheed Martin was founded in 1955 and is based in North Bethesda, Maryland. It is a global aerospace, information security, defense, arms, and technology organization (Dusso, Holyoke and Schatzinger, 2019). It employs 114,000 people and earned a revenue of more than $64 billion in 2020.

Table 3: Competitor Analysis.

The 4Ps	Analysis
Price	Price is an important aspect of the marketing mix of Boeing. The company is using a premium pricing approach because it manufactures quality products. However, it also uses discounted pricing to increase sales and attract new customers (Wall, 2022).
Place	Boeing operates in more than 65 locations across the globe. The centers are linked through digital systems to enhance smooth operations. It also has regional websites to solve the needs of the locals.
Promotion	Boeing uses various platforms to promote its product. Some of the platforms used are TV, newspapers, Facebook, Instagram, and many more. In addition, it uses both digital and non-digital advertising.
Product	It makes commercial and military planes, weapons, satellites, electronic and defense systems, launch systems, and communication systems, among other things (Wall, 2022).

Table 4: Marketing Mix Analysis.

Stakeholder Analysis

Boeing stakeholders are customers, suppliers, employees, media, government and the general public.

Objectives

Boeing Company has several objectives to achieve its vision and mission. First, Boeing aims to be a leader in the area of manufacturing aircraft. Second, the company wants to remain competitive and relevant in the aviation sector (Boeing Company, 2021). The leaders of the company believe that with an appropriate marketing strategy, they will be able to perform effectively. Third, the company also wants to stay focused on increasing its customer relationship. The company intends to seek cross-selling opportunities with existing ones to improve its performance. In addition, Boeing intends to acquire new customers by selling new products (Le Meunier-FitzHugh, 2021). The intention of the company is to increase its international support market. Finally, Boeing dedicates a lot of effort and resources to the innovation of its products.

Strategy

Geographic Segmentation

Boeing should focus on the Australian market to improve its sales and dominance in the aviation market. According to market segmentation theory, an organization can target the segments that provide it with the most value (Robbins Research International, 2019). Since Australia only makes small planes, it becomes the most appropriate market for the company. The Australian government increased its spending on aviation development projects to keep up with the growing number of planes and passengers. The expansion of Australia’s aviation industry will be aided by projects such as the Western Sydney International Airport, which is scheduled for completion in 2026, and the Hobart Airport Terminal Expansion Project (Sydney’s new airport, 2021). As a result, Australia appears to be the best region to focus on to improve sales.

Target Segmentation

The target market is an integral segment in improving an organization’s sales. Boeing should concentrate on new airports in Australia for the sale of its commercial aircraft. The Australian government has increased its budget for constructing new airports across the country to meet its growing number of tourists and local travelers. Based on this, the country’s additional airports come with high demand for aircraft to enable them to perform the operations. The company should target a market that adds value based on marketing segmentation theory. Boeing is more likely to sell more commercial aircraft to meet the needs of the new airports in the country. Therefore, new Australian airports should be the target market of the company.

Duration	Activities	Purpose
Three months	Create a team to handle the operation	The role is to develop a plan to dominate the Australian market.
Four months	The team to visit Australia	The role is to engage with relevant stakeholders, especially in Australia’s transport ministry and aviation sector.
Two months	Analyze the market	The team should identify the merits and demerits of Australia.
Three months	Develop solutions to the problems identified.	The purpose is to promote a smooth roll-out process in the market.

Table 5: The Activities to Achieve the Strategy

Tactics

Referral Programs

A referral program is a promotion tactic that aims to get existing customers to recommend a brand to their friends, family, and coworkers. The program effectively utilizes the existing customers as sales personnel for a company (Camilleri, 2018). Customers satisfied with the business refer others and should also be compensated for their efforts. Referral marketing is an economical and effective strategy, as the business only pays out when a new business is generated. In addition, the strategy has the potential to build on itself indefinitely as long as the referral program remains in place (Camilleri, 2018). Referral marketing can take many forms, but at its core, it is a strategy for enlisting the help of an organization’s most loyal customers in spreading the word about their brand.

Boeing companies should offer bonuses and other compensations for any referrals. One of these customers is Qantas Airlines, the leading airline in Australia for international and local flights. Boeing can use their good relationship to achieve its marketing objective in the country. Qantas can influence the decision of the new airports to be constructed to purchase aircraft from Boeing company. This company should offer referral bonuses and discounts to referring customers as motivation. According to motivation theory, a motivated employee is more productive, and a productive employee is more profitable (Cote, 2019). As a result, loyal customers benefit from this strategy, and the company also stands to benefit.

Discount Pricing

Discount pricing is one of the marketing tactics used to promote products. It is a range of strategies where the price of a product is decreased to improve sales for the organization. According to the price theory, everyone in the market is interested in the prices of products (Weyl, 2019). A customer is influenced by the changes in the prices of products. As a result, when a discount pricing strategy is applied effectively, it can help the company gain and retain customers in the market. The success of the discounting efforts is determined by how well the organization designs its discount pricing strategy. It can be a very profitable strategy for increasing sales and membership growth if done correctly. Therefore, discount pricing is an important strategy used to improve the sales of products.

Provision of Quality Product

The quality of the product is integral to the effective performance of an organization in the market. An appropriate quality strategy helps make and sell products that people want to buy. Quality products make customers happy and keep them coming back, which lowers the risk and cost of having to replace faulty goods (Camilleri, 2018). Accreditation with a well-known quality standard can help businesses build a reputation for being good. Organizations can use one or more ways to be more efficient in the long run, improving the quality of their goods. For example, Boeing can use product quality management to ensure that products taken to the market are free from defects. Thus, providing quality products is an important marketing tactic because it improves sales.

Customer Experience

Customer experience is one of the best tactics to improve an organization’s marketing objective. One of the first things to do is to have a solid customer experience, which promotes the customer experience across all the touchpoints (Camilleri, 2018). A positive customer experience is critical for the company’s success because satisfied customers become loyal customers who help to increase revenue. While focusing solely on customer experience may appear to be extra work, it is crucial for the company. The second aspect is to ensure that products are made considering customers’ needs. This will ensure that the interest of customers is considered. As a result, customer experience effectively promotes the provision of quality products and improves customer experience.

Action

Tasks	Duration	Human resources
Formation of a team	30 days	Human Resource Manager
Provide funds required to meet the needs	20 days	Finance manager
Implementing the identified marketing strategies	10 days	Marketing manager
Improve communication process	20 days	Communication manager
Identify the tools required to achieve the strategies	30 days	Marketing manager

Table 6: Operations Taken to Implement the Strategies.

Control

	Risks	Description
	Intense competition	High competition in the aviation sector has an adverse impact on the organization’s performance. For example, if the competition is intense, the organization is likely to lose its market share.
	Poor market research	Appropriate market research determines the performance of an organization. Conversely, poor marketing research means inadequate and inaccurate research that can affect its performance. For example, the organization may lose funds by adopting the wrong information.
	Inadequate funds	Lack of inadequate funds may negatively affect the performance of an organization. For instance, if the organization does not have adequate funds, they are likely to avoid marketing strategies that could have helped improve performance.

Table 7: Risks.

Market Scanning

Market scanning is an integral process because it helps in the evaluation of opportunities outside the organization. The goal is to keep an eye on the outside world all the time in order to figure out what customers want, what competitors are going to do, and what technological changes could make new market opportunities or market disruptions (McAdam, Miller and McSorley, 2019). In addition, the information obtained through market scanning would be used to gauge the effectiveness of the marketing strategies adopted. For example, it would be easy to determine whether the strategies have met the customers’ needs or not. A good strategy meets the anticipated objectives like an increase in sales. Therefore, market scanning would help in understanding the performance of marketing strategies.

Performance Metrics

Performance metrics measure the success of marketing campaigns used by an organization. The first metric to be used to measure performance is lead generation. An effective promotion campaign is supposed to generate more leads. The second metric to be applied is revenue obtained by the organization (McAdam, Miller and McSorley, 2019). A good marketing strategy should be able to increase the sales of products in the market, which in turn increase its revenue. The third metric is the level of customer satisfaction. Feedback from customers would be used to determine whether they are satisfied and satisfied with the operations of the company or not. The mentioned metrics would help measure the effectiveness of marketing strategies.

Reference List

Bockel, J.M. (2018) The future of the space industry. Brussels, Belgium: NATO Parliamentary Assembly.

Boeing Company. (2021) ‘Boeing: The Boeing Company: general information.’ Boeing. Web.

Camilleri, M.A. (2018) Travel marketing, tourism economics and the airline product. Springer, Cham.

Cote, R. (2019) ‘Motivating multigenerational employees: is there a difference?’ Journal of Leadership, Accountability & Ethics, 16(2). Web.

Dusso, A., Holyoke, T.T. and Schatzinger, H. (2019) ‘The influence of corporate lobbying on federal contracting,’ Social Science Quarterly, 100(5), pp.1793-1809. Web.

Le Meunier-FitzHugh, K. (2021) Marketing: a very short introduction. Oxford University Press, USA.

McAdam, R., Miller, K. and McSorley, C. (2019) ‘Towards a contingency theory perspective of quality management in enabling strategic alignment,’ International Journal of Production Economics, 207, pp.195-209. Web.

Robbins Research International, Inc. (2019) Learning market segmentation theory. Tonyrobbins.Com. Web.

Sydney’s new airport. (2021) Sydney’s new airport | Western Sydney Airport. Web.

Wall, W.P., (2022) Global Competitiveness. Springer, Singapore.

Weyl, E.G. (2019) ‘Price theory,’ Journal of Economic Literature, 57(2), pp.329-84. Web.

Wurthmann, K. (2019) ‘The essential mix: six tools for strategy-making in the next decade,’ Journal of Business Strategy. 41(1), pp. 38-49. Web.

Zingraff-Hamed et al. (2020) ‘Stakeholder mapping to co-create nature-based solutions: who is on board,’ Sustainability, 12(20), p.8625. Web.

Appendix

PESTLE	Analysis
Political factors	Given the demand for aircraft and their applications, governments enact laws and regulations that significantly impact the aviation industry. Political factors primarily influence the way Boeing operates and its strategy. The Federal Aviation Administration (FAA) is the lead agency of the United States responsible for the safety of the nation’s aerospace system, including the aircraft that fly in that system. Almost every aspect of Boeing’s company must adhere to strict airworthiness standards mandated by each government in which Boeing aircraft functions.
Economic factors	The demand for air travel drives aircraft sales. Individual customers’ purchasing power, on the other hand, represents the economic health of individual countries and the global economy in general.
Social factors	Aircraft manufacturers and suppliers such as Boeing experience increased demand for their products during economic prosperity because it influences how people spend their money. For example, holiday and vacation air travel and business air travel put pressure on airlines to provide more travel options, resulting in a demand for new aircraft. For example, events such as the Christmas holidays enable people to travel worldwide, which significantly impact aircraft demand.
Technological factors	Modern aircraft are technological advancements with advanced capabilities since the first models. Boeing has steadily improved its aircraft models on commercial aircraft by improving designs that result in economical and safe operation. In addition, the company is constantly researching, developing, and implementing newer technology to remain competitive in the evolving aerospace industry.
Environment factors	Concerns about the environment have gripped the global community, with businesses focusing on ways to reduce their environmental impact. The use of new technology, better materials, and innovative approaches to environmental protection are all steps that Boeing takes to improve its impact continuously. In addition, the company has made it a policy to follow environmental laws, regulations, and policies.
Legal factor	Boeing is constantly reviewing and implementing the vast regulatory environment that presents legal challenges to the company. Regulations affecting their business go beyond aircraft airworthiness. Moreover, Boeing must navigate labor laws, procurement rules and regulations, and Department of State and international regulations pertaining to the importation and exportation of approved materials or devices.

Table 8: PESTEL Analysis of Boeing Company.

Risks	Likelihood (Possible, probable and improbable)	Impact (High, Medium, and Low)	Mitigation	Resources
High competition	Possible	High	Understand the market through effective research and adopt appropriate strategies.	Marketing manager
Inadequate market research	Probable	High	Recruit skilled and experienced researchers and provide them with the necessary tools for the process.	Marketing manager
Inadequate budget	Improbable	Low	Mobile enough funds for the running of operations.	Finance manager and marketing manager.

Table 9: Risk Assessment.