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Page 1: Sri LanKan AIRLINE

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MARKETING ANALYSIS OF SRI LANKAN AIRLINE

Hospitality and Tourism Marketing Strategies Assignment

DILANI JEEWANTHI

CTH SM# 721001

THAMES COLLEGE/SRI LANKA

OCTOBER 2013

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CONTENTS

1: INTRODUCTION .................................................................................................................... 3

1.1 INTRODUCTION TO SRI LANKAN AIRLINES ................................................................ 4

1.2 VISION AND MISSION STATEMENT OF SRI LANKAN AIRLINES ................................ 6

1.2.1 Vision .......................................................................................................................... 6

1.2.2 Mission ........................................................................................................................ 6

2: DISCUSSION .......................................................................................................................... 6

2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES............................................................... 6

2.2 MARKETING MIX OF SRI LANKAN AIRLINES .............................................................. 7

2.2.1 Products ....................................................................................................................... 7

2.2.2 Price............................................................................................................................. 9

2.2.3 Place ............................................................................................................................ 9

2.2.4 Promotion................................................................................................................... 10

2.2.5 People ........................................................................................................................ 11

2.2.6 Process ....................................................................................................................... 12

2.2.7 Physical Evidence ....................................................................................................... 12

2.3 SEGMENTATION, TARGETING & POSITIONING OF SRI LANKAN AIRLINE............. 13

2.3.1 Segmentation .............................................................................................................. 13

2.3.2 Targeting .................................................................................................................... 15

2.3.3 Positioning ................................................................................................................. 15

2.3.4 Major Segmentation Variables for Consumer Markets ................................................... 14

2.3.5 Positioning Map. ............................................................... Error! Bookmark not defined.

2.3.6 Competitors ................................................................................................................ 16

2.4 ANSOFF’S MATRIX........................................................................................................ 17

2.4.1 Market Penetration ...................................................................................................... 18

2.4.2 Market Development ................................................................................................... 19

2.4.3 Product Development .................................................................................................. 20

2.4.4 Diversification ............................................................................................................ 20

2.6 MARKETING LEADERS STRATEGIES APPLIED BY SRI LANKAN AIRLINES ........... 21

2.6.1 Defense Strategies....................................................................................................... 21

2.6.2 Brand Image Strategies................................................................................................ 21

2.7 MARKETING COMMUNICATION AND PUBLIC RELATION STRATEGIES APPLIED

BY SRI LANKAN AIRLINES ................................................................................................ 22

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2.7.1 Pull Strategies ............................................................................................................. 22

2.7.2 Push Strategies............................................................................................................ 22

2.7.3 Promotional Mix ......................................................................................................... 23

2.7.4 Public Relation ........................................................................................................... 23

2.8 NETWORKING, E- MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES

.............................................................................................................................................. 24

2.8.1 Network Marketing Strategies ............................................ Error! Bookmark not defined.

2.8.2 E- Marketing Strategies................................................................................................... 24

2.9 SRI LANKAN AIRLINE CSR WORKS............................................................................. 24

2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE. ........................................................... 24

2.11 VIRAL MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES ............... 25

2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES ..... 25

2.13 CUSTOMER LOYALTY PROGRAMS ........................................................................... 25

2.14 RECOMMENDATIONS ................................................................................................. 26

2.14.1 Marketing Mix Recommendations .............................................................................. 26

2.14.2 Segmentation, Targeting and Positioning Recommendations ........................................ 28

2.14.3 Ansoff’s Matrix Recommendations ............................................................................ 28

3: CONCLUSION ...................................................................................................................... 29

REFERENCE............................................................................................................................. 30

Figure 1 SWOT ANALYSIS

Figure 2: Customer segmentation

Figure 3: Segmentation

Figure 4: Competitor Analysis

Figure 5: Ansoff Matrix.

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1: INTRODUCTION

1.1 INTRODUCTION TO SRI LANKAN AIRLINES

Sri Lankan Airlines is the national airline

in Sri Lanka managed by the government

and based at the Bandaranaike

International Airport and Mattala

Rajapaksa International Airport. Sri

Lankan Airline is a member of IATA and

ICAO, flying over 34 destinations around

the world. It is a famous airline

especially in Asia and Europe which was

founded in 1947 as Air Ceylon for the last 66 years they expand their services to many areas

such as introducing a budget airline Mihin Lanka, online facilities, engineering department,

selling holiday packages, air taxi (domestic airline), micro tourism, airline training and

technical training. The other services include the cargo and catering.

Sri Lankan Airlines has been numerously awarded for their contribution of providing safe,

reliable, comfortable and punctual services. The aim of the organization is to provide high

customer service, best traveling experience and satisfaction for the customer which will

create a good reputation. Achieving those goals ultimately developed the tourism and the

economy of the country.

The aircrafts consists of economy and business class seating’s, with the latest technologies on

board ranging from onboard TV, radio, games and refreshment services. All seats are

luxurious and comfortable; the difference in the Business class is that there are flat-bed

seats,special meals, and cocktail personal services. Then there are audio and video system

and video games for entertainment for the passenger. The airlines have their own catering

service and it provides the facilities for other airlines operating in the international airport.

Every day they cater 25,000 meals and operate 24 hours and 365 days of the year. There are

800 employees working in the kitchen. It also includes fine –dining restaurant and they

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provide meals for the transit hotel at airport. Principally they have fast reservation system to

book through e-ticketing and time scheduling of check in. The advantage of this facility is

that the customer can easily plan their traveling dates and time without tour operators using

their own laptop or PC .There is diverse work force of 5900employees in Sri Lanka and

overseas. These employees complete the training at IATA and the airline has a training

school which offers two courses. They are, IATA training and the technical training. Mainly

they promote the tourism with introduction of many programs such as tour packages, air taxi

service for tourist attractions and micro tourism.

According to that information, I believe the Sri Lankan Airline is one of the best

organizations to implement and research marking strategies. There is lots of advantages for

choosing this topic. The main reason is that the airline is directly linked to many businesses

especially, the tourism business. Today, the tourism industry is developing faster than ever

before. Each year nearly 1000000 tourists visit Sri Lanka and it is very important to provide

efficient transportation to these tourists. Sri Lankan Airline has identified this and has

expanded their service with domestic airline. This expands as well as the increase of tourist

arrivals has resulted in the growth of other areas such as such as export and import, banking

and telecommunication. Every year it creates many job opportunities and it increases the

income level of all employees.

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1.2 VISION AND MISSION STATEMENT OF SRI LANKAN AIRLINES

1.2.1 Vision

To be the most preferred airline in Asia.

1.2.2 Mission

We are in the air transportation business. We provide our customers with a reliable

and pleasant travel experience. We provide our business partners with a variety of

innovative, professional and mutually profitable services. We meet Shareholder

expectations of profitably marketing Sri Lanka and contributing towards the well-

being of Society. We are a competent, proactive and diligent team. Our contribution is

recognized and rewarded.

Source: http://www.srilankan.com/en_uk/coporate/vision-and-mission

2: DISCUSSION

2.1 SWOT ANALYSIS OF SRI LANKAN AIRLINES.

STRENGTH

Sri Lankan Airline is a reputed Brand

Name.

Customer Reputation of Service standard

Safety recorders and fast travelling.

Fixable traveling cost.

Good image of Sri Lankan hospitality

service.

AITA training staff

Attractive food and beverage services.

WEAKNESS

Flight is not well maintained.

Flights are delayed and cancelled.

Cabin crew’s uniform hasn’t changed in a

long time.

Still the airline dose not gets any profit.

Large number of employees works at Sri

Lankan Airline

Most of flights operate in short haul.

Communication barriers

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OPPORTUNITY

The government’s airport developing

project.

The government’s tourism developing project

The government has decided to buy new aircraft next year.

New air routes have been decided for flying

Increase in business travelers in Sri Lanka.

THREATS

Increasing fuel cost

Increasing cost of employee’s salaries

Competition with other airline

Rising cost of sales and marketing

Figure1 SWOT ANALYSIS

2.2 MARKETING MIX OF SRI LANKAN AIRLINES

2.2.1 Products

Sri Lankan airline identified the expectations and values of the customers and they offer the

best high standard service to the customers to make them feel comfortable and satisfied.

Destinations:Europe, Middle East, South Asia, South Asia Far East, Australia, North

America, Canada and Africa

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Cabin Services:The main product is the

cabin services, the cabin is design for two

main areas Business class and Economy class

and the airline carter for all classes

‘passengers as their best. In the flights,

television for every seat with audio and video

facilities along with a video game system.

Source:

http://www.srilankan.com/en_uk/flying- with-us/business-class

Cargo Services: The other service is the

cargo services to the countries of Europe,

Middle East, South Asia, and South Asia Far

East.

Source: http://www.srilankancargo.com

Catering Services: The airline handles all food and beverages from their catering

services. Fine dining

restaurant is also

present.

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Other Services: The remaining of the important services of this airline is E ticketing,

air taxi, information desk, holiday packages, MICE tourism, IATA training, technical

training etc.

Short Time Travel: There is lot of flights operating to Middle Eastern markets. The

reason for this is there are Sri Lankan employees

working in these countries and some people fly

to those counties for business and leisure. This

market price is low. (Major reason is the fuel

cost not being effective).

Depend on the Special Service:

Child care or medical treatment available. Extra

services such as wheel chairs and stretcher cases

for them for extra payment.

2.2.2 Price

The price depends on the destination they choose to fly (Long or short hours flying).

Operation cost: Operation cost to fly one air craft set for one kilometer. Passenger

Load Factors -The total revenue of passengers for kilometers is divided by availability

of the seat kilometers.

Categories: High price for business class low

price for economy. Discounts for Middle East,

South Asia Far East for business class.

Travel agent commission

2.2.3 Place

There are two hubs located in Sri Lanka, major one is

the Bandaranaike International Airport at Katunayaka

and the other is, Mattala Rajapaksa International Airport

at Hambantota.

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There are branches in 64 destinations in 34 countries and online reservation system with 6

different languages the customer can book their tickets, tour packers at online or by calling

(Dial a ticket service.) .

24 hours reservation offices available at airport and e ticket booking.

Tour operators in many destinations

, Source: http://www.google.lk/imgreswww.srilankan.com

2.2.4 Promotion

Advertising: Newspapers, websites, magazine (Sri

Lankan cultural values promoting, and natural beauty

of the country and airline service and facilities).

Travel Agent Promotion: 70% of sales are done by

domestic ticketing offices.

Exhibition and Trade Shows: Participation in worlds travel exhibitions and fairs

Sponsorship: Sri Lankan Airline sponsors sports and traditional events such as

Chinese New Year day in Sri Lanka, IATA events and food promotions in Middles

Eastern countries.

Special Offers: Business class tickets for low price, extra 10kg allow for students,

insurance for business class passengers and duty free offers.

Sales Promotion: Tour packages of Sri Lanka, and hotel booking

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In the year 2012, Sri Lankan Airline spent Rs 430 million for advertising

and promotion.

Source:http://www.srilankan.com/en_uk/coporate/latest-news/55,

http://www.srilankancargo.com/about-us/latest-news/15

2.2.5 People

The Sri Lankan airline highly promote the culture of Sri Lankan hospitality service with all

traditional values, principally the warm greeting with smiles to the customer

saying“Ayubowan”(may you live long), and the air hostesses wear the traditional sari’s as

their uniform. They all work as a term with the aim of satisfying the customers, to provide the

best service, to create good image for the airline and build strong relationships with

customers. There are two main slogans for this airline. First one is “You’re Our World “and

second one is “We Change the Way You Fly”..

\

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2.2.6 Process

There is new business lounge opened for business

class guests with all facilities and service call

“Serendip Lounge’’ at the airport. There is an

online reservation system, 24 hours call center, e

ticketing and on phone reservation system with all

details of flight service such as arrival, departure and

the flight route. Other airport facilities including fine

dining restaurant, money exchange service, taxi service, medical facilities and tagging the

baggage etc. Within the flight also they provide many services such as in-flight

entertainment, food and beverages service on the request of passengers a la cart menu with

lots of varieties.

2.2.7Physical Evidence

The Sri Lankan airline’s all offices at checking

counters wear the badges, all the papers use come

with the logo and the logo at air ticket , The

cleanliness at the cabin and, the logo image at air

craft the uniform designing their ambience baggage

tagging.

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2.3 SEGMENTATION, TARGETING & POSITIONING OF SRI LANKAN AIRLINE

Figure 1: Customer positioning map.

Business Class

\

In Bound in Bound

Exclusive Exclusive

England, German, France Singapore

,

Dubai

Singapore , Dubai

Low High High Low

Price Price Price Price

India, Maldives India

Out Bound out Bound

2.3.1Segmentation

Understanding of the key segments of the product and service to satisfy the customer needs it

helps to identify the best opportunities at the market place, based on geographic,

demographic, psychographic and behavioral factors.

Figure 2: Customer segmentation

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2.3.4 Major Segmentation Variables for Consumer Markets

Figure 2: Segmentation

Geographic Details

This is based on cities and countries the airline

do their operation.

Tours for Delhi , Paris , Singapore etc.

For Muslim people macramé tours .( including all

facilities such as hotel booking car service )

For holidays, shopping and religious festivals.

Demographic Details

Income

The SLA does lot of flight operations to

Singapore, Malaysia and Hong Kong.

Education

The families get high income and they spend

their holidays overseas.

The packages for students ( England, Singapore )

Psychographic Details

Lifestyle .The SLA do different tour packages

for their customers after identifying there

requirements.

Some customers want to go for religious places.

Other customers want to enjoy.

Some customers fly only for sport events.

Business

passengers

Leisure travelers Student s

study at over

sees

Employees

work at over

sees

SLA Customers

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Behavioral Details

Occasions

Loyalty Status

Seasonal promotion

Fly smiles programs with rewards.

2.3.2 Targeting

The major target market is business travelers and leisure travelers and they are also divided

into another two factors inbound tours and outbound tours.

2.3.3 Positioning

The advantage for business class customers is the airline offer special especial allowance and

discount for regular customers it depend on their membership states and they can use the

business class lounge at the airport with all facilities and one the other hand there are special

services also for those customers in flight flat bed for every seat and all flight entertainment

cocktail service special meals etc.

Source - http://www.srilankan.com/en_uk/coporate/about

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2.3.5 Positioning Map.

Exclusive

Low Price High Price

Figure 4: Positioning map of Sri Lankan Airline with its competitors

2.3.6 Competitors

The marketing concept states that to be successful, a company must provide greater customer

value and satisfaction than its competitors. All major competitors of SLA are in high air taxi

class (5 stars) however, as the national airline, it has reputed brand name very comfortable

passenger service and special meals they provide more services than their competitors.

Example- Traditional Sri Lankan breakfast.

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Figure 4: Competitor Analysis

Source -http://www.google.lk/imgres

2.4 ANSOFF MATRIX

Marketing has the main responsibility for achieving the profitable growth for the company

marketing need to identify, evaluate and select market opportunities and lay down strategies

for capturing them. Appling Ansoff strategies help identified where they are now and how to

achieve the goals.

Figure 5 : Ansoff Matrix.

Airline Emirates Qatar Cathay

Pacific

Singapore

Airline

Spice jet Jet airways

Logo

Air Tax

Class

5 star 5 star 5 star 5 star - -

Route

Network

78 countries 69

countries

42

countries

35

countries

8

countries

19 countries

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2.4.1Market Penetration

As a marking strategy, increase sales without changing its original product the Sri Lankan

airline introduce membership card for passengers when they fly often the airline offer lot of

benefits for under their membership credit. There are three membership cards one is blue,

silver and gold. That is (Fly smile program) when passengers fly from Sri Lankan airline

members will be befitted every time they fly. The benefits include, credit for extra baggers,

free meals and special meals on request which would encourage passengers to be regular

users.

Sourcehttp://www.flysmiles.com/about-flysmiles/benefits, http://www.google.lk/imgres

Source -http://www.google.lk/imgres

There are other promoting programs introduced for

leisure travels call “destination sales” from these they

promote the tourist attraction places for special

reasonable price.

Source - http://www.srilankan.com/en_uk/special-offers/destination-sale

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Further, promoting program is for student they allow extra 10 kg baggers for free of charge.

Source: http://www.srilankan.com/en_uk/special-offers

Finally there is special program for children call “young smiles’ for children age 2 to 18 to

make happy journey for them .

Source: http://www.flysmiles.com/youngsmiles

E - Ticketing and dial ticketing programs.

2.4.2Market Development

The market development is identifying and developing new market for its current product.

Therefore airline expand their services to other tourist destination and enter to new market

those are Indian, Chinese and Russian market, some destination the airline fly directly other

destination the airline fly with partnership.

Appendix 1 new markets.

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2.4.3Product Development

The government has decided to buy new aircraft for the airline.

Source: http://www.lankanewspapers.com/news/2013/4/82604_space.html

The new business lounge call “Serendip Lounge” the capacity of this place is 150 people

there is food corner, bar and other all business facilities.

Source:http://loungeindex.com/Asia/Sri%20Lanka/CMB/Sri%20Lankan%20Airlines%20Ser

endib%20Lounge/index.htm

The airline handling large group visits for Sri Lanka for the holidays and they organize

meetings, conferences and other events too. (There is department for this.)

Source: http://www.ft.lk/2013/04/30/slcb-srilankan-airlines-make-bid-for-mice-tourism-in-

gurgaon/, http://www.srilankan.com/en_uk/coporate/latest-news/98

Source - https://www.facebook.com/flysrilankan

2.4.4 Diversification

New product for new market is not practice.

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2.6 MARKETING LEADERS STRATEGIES APPLIED BY SRI LANKAN AIRLINES

2.6.1Defense Strategies

The Market Leader used defense strategies for develop the market place, the Sri Lankan air

Line use Position defense to expand the market place and maintain the market. Therefore

they always advertising the bard name they promote it on lot of TV advertisement,

newspapers, and at their own magazine and other social web pages`.

Source -http://www.google.lk/imgres

2.6.2 Brand Image Strategies

The Sri Lankan Air Line is 3 star luxury airlines and this brand

image is very powerful because this image is very valuable for Sri

Lankan people and there are lots of loyal customers under this

image. This logo is a bird call a peacock the main reason for

selecting this bird, at the ancient time, there was a king who lived

in Sri Lanka called“Ravenna”and he made a flying ship called“dadumonara” shape of this

bird. According to that, they selected this peacock image this bird represent our history and

culture .This logo is simple, very colorful and strong and it will always remind customer’s

reason is it is beautiful.

Source: http://www.brandsoftheworld.com/logo/sri-lankan-airlines

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2.7 MARKETING COMMUNICATION AND PUBLIC RELATION STRATEGIES

APPLIED BY SRI LANKAN AIRLINES

The Sri Lankan airline strongly uses personal communication and mass communication to

pass the information for new customers and loyal customers.

2.7.1Pull Strategies

This strategy use for promote new routs every month they promote new destination with

special price and with allowance and make customer demand for this service and they

Advertise their own webpage and social networks and newspapers for customers there is

adverting cost for this. .

Sri Lankan airline Online Reservation Customer

And advertising

Promote mix

2.7.2 Push Strategies

The airline marketing department promotes their product through domestic travel agent and

international travel agent sponsoring other counties events and participate trade shows and

other tourism event.

Sri Lankan Airline ` Travel agent Customers

Domestic and International

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2.7.3PromotionalMix

Advertising: TV advertisement, paper and

magazine, online advisement, official web

page advertisement face book and other

social media.

Appendix 2 promoting

Source http://www.srilankan.com/en_uk/special-offers/destination-sale

Sales Promotion: Marketing department

promotion and advertising marketing

campaign

Public relations: CSR work (For children

and elder people )

Sponsorship: Sport event Surfing classics

midlives and Sri Lanka, Ruby and Golf sport

tournament.

Source: http://www.srilankan.com/en_uk/coporate/about

2.7.4 Public Relation

Press Agencies:Sri Lankan Airline advertises all PR facilities at their wed page, the

Serendip magazine and other magazine newspapers in Sri Lanka and other foreign

countries.

Product Publicity: Their main product is business class, and economic class, cargo

etc. all details at web.

Company Magazine: The Serendip Magazine promotes new updates in airline Sri

Lankan tourist attraction places product and government targets.

Annual Reports: Every year annual report public with all details of Profit lost and

other CSR works.

Lobbying: Help children homes and elder people homes. And help for government to

develop the tourism.

Sponsorship: Sponsoring sport event and other government events. (Golf 2013

Commonwealth )

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2.8 NETWORKING, E- MARKETING STRATEGIES APPLIED BY SRI LANKAN

AIRLINES

To deliver the information and promote new updates and make good customer relationship

this channel is use.

2.8.2E- Marketing Strategies

E –Business: e –ticketing (book ticket from web)

Source:http://www.srilankan.com/en_uk/flying-with-us/e-ticketing

E- Marketing: Information about product and services, (in flight and airport) tour

packages, Sri Lanka and other countries online feedback facility, face book and other

social network promoting

Source:http://serendib.btoptions.lk/index.php/http://www.srilankan.com/en_uk/coporate/feed

Appendix - 3 E- marketing.

2.9 SRI LANKAN AIRLINE CSR WORKS.

Help children in rural area build class rooms with all

facilities, such as computer room home science room

playground and for selected 12 children provide other

necessary items for education (bags, books, shoes etc.)

Source:

http://www.island.lk/2006/03/19/business10.html,http://www.ft.lk/2010/11/12/srilankan-

airlines%E2%80%99-cabin-crew-builds-children%E2%80%99s-home-in-trincomalee/

2.10 SRI LANKAN AIRLINE OFFICIAL WEB PAGE.

All detail about product promotions, distribution and new updates.

Product – cabin, meals, entertainment, child care etc.

Promotion – UL Promotion and Partners Promotion inbound and out bound tours.

Distribution – Their all offices around the world.

New updates – Young smile program etc.

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2.11 VIRAL MARKETING STRATEGIES APPLIED BY SRI LANKAN AIRLINES

Using social networks their build up strong relations ship guest, treat all clients in friendly

manner promote in word of mouth, from fly smile client encourage use UL promotion and

partner promotion.

2.12 GUERRILLA MARKETING STRATEGIES APPLIED BY SRI LANKAN

AIRLINES

Source - https://www.facebook.com/flysrilankan

Sri Lankan Airlines do sometimes implement guerrilla marketing strategies to credit and

debit cards of some banks as well as they do advertise inside the fleet. Example: In board TV

advertisements.

2.13 CUSTOMER LOYALTY PROGRAMS

There is customer relationship program “Fly smiles” from

this when a person fly with them that customer enroll it and

they can register and make a profile and be a member. There

are 3 membership stated blue, silver, gold every time they

use airline or partners goods and service the feel miles

updated therefore this members has lot of rewards allowance

and other benefits.

Source: http://serendib.btoptions.lk/diary.php?issue=46&type=4,http://www.google.lk/imgres

Appendix 4Fly smiles program

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2.14 RECOMMENDATIONS

To achieve the goal at the business and make profit I recommend UL use SMAT objective.

2.14.1 Marketing Mix Recommendations

Product

Sri Lankan airline currently maintaining two categories in the aircraft which are Business

class and economy class. As Sri Lanka is emerging as Asia business hub it is important to

have First class category for VIP Passengers. On the other hand introducing upper economy

class and lower economy class allow the airline to offer more versatile price range for the

customers.

Crate a lounge for economic class which includes dining facilities and computer facilities.

Include a computer lab for business class passengers with internet, email, fax, photo copy,

and printing facilities.

S

M

A

R

T

Increase the quality and make profit

Training and motivation the staff

Limit all unnecessary expenses.

Year 2017 become 5star air line.

Make profit for ALA

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Price

Comparing to competitors, the Sri Lanka airline prices are fairly high therefore introducing

special prices in April, August and December is an opportunity for them increase the number

of passengers and the profits as low prices will encourage more people to fly.

Today’s trend is that many chose to spend their holidays overseas. To maximize the benefit

from this trend the airline can introduce holiday packages including air ticket, hotel, and Taxi

service for their requirements at a competitive rate that will attract more people.

Targeting young crowd and create tours for them at a reasonable price is another way to

expand.

Example when there is beach parties in Goa in India Sri Lanka airline can promote those for

the younger crowd leisure travelers and this short flight destinations are one way of

maximizing profits..

Place

Connecting the smaller aircrafts in to the main terminal rather than using a different facility

will increase the efficiency of the main terminal and reduce the costs.

At ticketing counters and information desk improve higher level of customer service to

passengers as well as advertising flight information on the TV at ticketing counters

Example – how many tickets available at the moment, Weight of the luggage’s flying hours,

weather and time information of the destinations.

Promote online and dial up reservation.

Promotion

Sri Lanka airline is heavily promoted every year but still there is a shortfall in the profits. The

reason is more likely that the massage is not powerful enough to attract passengers.

When promoting new destinations effective channels such as news papers, magazines, TV

local& over sees and radio must be used. On the other hand they the massage is very

important therefore it should include strong argument into why a person not only choose the

airline but also the destination.

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Example whether it is a holiday destination or business destination or both, the advertising

should focus on presenting the activities that will be present at the destination, a glimpse to

the experience that would last for a lifetime and also the prices.

The Sri Lanka airline has one of the biggest markets in Middle East so it can promote extra

luggage allowance for the Middle East which would automatically it increase the market size.

People

Do the motivation and training programs for the staff for high level of customer service and

satisfaction of all passengers fly in UL.

Attractive uniform for the female staff

Appendix 5 new uniforms.

2.14.2 Segmentation, Targeting and Positioning Recommendations

Segmentation

Aim for first class passengers, sport tourisms.

Targeting

The 80% of passengers fly in this airline buy economic class tickets ‘expectations are mainly

comfortable seating, delicious food, beverages, watch good movies and enjoy their journey.

Positioning

Business class passengers ‘expectation is, more space, comfortable seating, cocktail service,

internet services, and more magazines to read. Principally Business class passengers are

flying to Europe, Singapore and Middle East. Higher customer service will be an opportunity

for airline develop the routes and sell more seats in business class.

2.14.3 Ansoff Matrix Recommendations

Market Penetration

For business class passengers in bound or out bound introducing all inclusive packages are

important. Next is at Serandip magazine promotes what are the opportunities available in Sri

Lanka for business and the facilities such as use of internet and telephone service in order to

match with the competitor Emirates airline.

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For Leisure traveler’s family packages, all inclusive packagers, in bound or out bound,

Airline can link their Air taxi service and make special packagers for honeymooners, and

when there are Kandy Festival Season introducing special packages for passengers directly to

Kandy.

Market Development

Introduce more direct flights to new destinations for competitive price and good services.

Product Development

Develop airline facilities and Features.

Promote the training schools

3: CONCLUSION

Today there is rapid development in tourism industry in Sri Lanka. Sri Lankan airline does

the main part of this development, first at the airplane they give best customer service to all

passengers and make a good image of Sri Lanka hospitality service and they promote the

county’s cultural values etc , though their web page and Serandip magazine. At the airport

also they offer good customer service and all these qualities make a reputed brand name. This

is the strength of them; it helps to open many doors for future development and to be one of

the best airlines in Asia

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Referencing.

Bibliography & Publications

Kotler, P. And Armstrong, G., (2007) Principles of Marketing. 12th ed. Harlow: Prentice Hall

Companion.

Principle of marketing Kotler, P,Gary Armstrong second impression 2011.

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,http://www.ft.lk/2010/11/12/srilankan-airlines%E2%80%99-cabin-crew-builds-

http://www.sundaytimes.lk/090125/Magazine/sundaytimestvtimes_08.html 25, 2009