Running head: MARKETING AUDIT: EMIRATES AIRLINES

Marketing Audit: Emirates Airlines

Students Name
Institutional Affiliation

MARKETING AUDIT: EMIRATES AIRLINES

Table of Contents
Executive Summary ..4
Introduction 4
Environmental Context Analysis of the UAE (PESTLE) ..5
Competitor Analysis ..7
Market Research 9
Customer Analysis10
Segmentation and Targeting 11
Positioning Strategy .13
Product Strategy ...14
Pricing strategy 16
Distribution strategy .17
Promotion strategy ...18
Customer service and relationship activities 19
Conclusion ...20
Recommendations 20
References 22

MARKETING AUDIT: EMIRATES AIRLINES

List of Figures
Figure 1. Emirates and Qatar's CY2013 passenger growth, fleet size and destinations served..8
Figure 2. Perceptual map .13

MARKETING AUDIT: EMIRATES AIRLINES

Executive Summary
Emirates Airlines is one of the world's largest airlines. It is a worthy competitor to
such giants of European aviation as Air France-KLM, British Airways, and Lufthansa. The
company provides numerous in-flight and ground services bringing unique value to its
customers. It is mostly oriented at the upper middle and middle class, while at the same time
paying attention for the ordinary travelers due to its extensive development and production
costs. The company has many advantages, as wells as the disadvantages. Thus, the paper
explores the environment of the company, makes competitor analysis, studies the way the
market research is conducted, makes customer analysis, studies segmentation, positioning,
product, pricing, distribution, and promotion strategies, as well as analyses customer service
activities and makes conclusions and recommendations.

MARKETING AUDIT: EMIRATES AIRLINES

Marketing Audit: Emirates Airlines

Emirates Airlines is one of the largest airlines in the Middle East. It was established in
1985 by the top management of Dubai for the development of tourism and infrastructure of
the UAE. The company is owned by the Emirates Group. It is the largest airline on
international routes in the world. More to say, it is the third largest airline in freight vessels in
the world with the largest and youngest fleet of wide-body aircraft. Moreover, it is one of the
most stable among the fastest growing airlines in the world. At the same time, Emirates is able
to keep the strong customer loyalty while establishing high prices. This unique company can
grow and develop quickly in the strongly competitive environment by successfully using
marketing strategies and tools. Thus, it is important to make the marketing audit of Emirates
in order to understand the peculiarities of its marketing process better, learn what should or
should not be done in the marketing in order the companys success and prosperity.
Environmental Context Analysis of the UAE (PESTLE)
Demographic Environment
The demographic environment of the UAE is quite complicated because it is very
different. Only less than 20% of residents are the UAE citizens; the majority of the population
is made up of the immigrants from South Asia, Iran, and other Arab countries (CIA, 2016).
The majority of the population is between 24-54 years old, most of whom are males living in
the urban areas (CIA, 2016). There is a high population growth rate (the 23rd place in the
world), high expectancy at birth (men live near 75 years and women near 80), and there is a
very low death rate (one of the lowest in the world). However, as of July 2016, the population
of the UAE comprises almost six million people, though in 2015, it was more than nine
million (CIA, 2016). Thus, such a drop in population can negatively influence the number of
Emirates Airlines customers.
Economic Environment

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The economic environment of the country is always a significant factor influencing its
standings, and the UAE stand very high in this regard. It is a very dynamically developing
country with an exceptionally high GDP per capita that allows the UAE to take the 12th place
in the world and have a high real growth rate (CIA, 2016). The economy rests on oil and gas.
Furthermore, the UAE have one of the lowest unemployment rates in the world accounting
for 2.4% or being on the 15th place in the world (CIA, 2016). Moreover, inflation rate is low,
giving the UAE the 163rd place among other countries (CIA, 2016). Finally, the country has
one of the highest stocks of direct foreign investment in the region. However, there is an
economic downturn in the world, as compared to previous years, and the UAE is not an
exception. Thus, the economic environment of the UAE can influence Emirates Airlines very
positively, if one does not draw comparisons with previous years.
Socio-cultural Environment
The social-cultural environment of the United Arab Emirates is very diverse. There
exists a mix of many different cultures due to high rate of immigrants, as it was previously
told. As a result, there are many languages in the country such as Arabic, Persian, English,
Hindi, and Urdu (CIA, 2016). In the UAE, religion, mostly Islam, is very important and it
greatly affects society. For example, women have to wear specific clothing. Religion also
plays a significant role in business. In the UAE, there live also Christians, Hindus, and people
belonging to other religions. Finally, the UAE citizens live comfortable lifestyles due to their
well-paid jobs (CIA, 2016). Thus, increasing the middle class may upgrade safety demand for
Emiratis Airlines.
Political and Legal Environment
The standings of the UAE are also affected by the political and legal environment.
Thus, each of the seven Emirates has its own governmental institution contributing to the
flexible management within the country. The country has also close relations with many

MARKETING AUDIT: EMIRATES AIRLINES

countries around the world, which contributes to the easier establishment of flights between
new locations. However, it has political conflicts with the neighbor countries, the main cause
of which are oil reserves and land. Finally, the court proceedings in the UAE are timely, and
there are no juries.
Technological Environment
Nowadays, there is a strong technological development in the world with fast
changing technology. The wealth of the UAE provides the ability to purchase necessary
equipment and to be at the forefront of the technological development. At the same time, the
middle-aged population of the country is very technically savvy, which gives the ability for
the UAE companies to use new technologies. Therefore, the use of technology in the
airfreight industry can boost the company behind or ahead of its competition.
Natural Environment
The natural environment of the UAE is unfavorable. The tropical climate is very hot
and dry, and the area has sandy deserts. It can result in lower productivity of the population
and a more complicated farming. However, in such conditions, air conditioners are sold well,
and they are widely used in the companys aircrafts. At the same time, the UAEs location
near the coastal area allows the country to trade easier by the sea.
Competitor Analysis
Direct and Indirect Competitors
There are numerous direct competitors of Emirates Airlines such as Gulf Air Company
GSC, Air France, Lufthansa AG, British Airways, and others. However, the most direct
competitor and the major threat of the company is the Qatar Airways Group. On a network
scale, both companies are almost of the same size. Emirates Airlines serves 128 destinations,
and Qatar Airways 124, as shown on Figure 1 (CAPA, 2014). The former serves more
destinations in Europe than the later that operates more extensively in Asia-Pacific. At the

MARKETING AUDIT: EMIRATES AIRLINES

same time, in the premium class, Emirates biggest direct competitor is Lufthansa that has a
better safety and that provides the same services as Emirates Airlines. The indirect
competitors of the company are countless local airlines in different countries that are
associated with its competitors (Davahran & Yazdanifard, 2014). However, it is hard to
compete with Emirates Airlines; it has significantly more aircrafts in service, transports
significantly more passengers, and has the higher growth in capacity.
Carrier
Emirates
Qatar

CY2013 passengers transported

and growth
39 million, 16%
18 million, 6%

Destinations
served

Fleet size
aircraft in service

128
124

212
126

Figure 1. Emirates and Qatar's CY2013 passenger growth, fleet size, and destinations served.
Analysis of Competitive Strategy and Position
Strategic capabilities are skills and abilities that the company could use, and they help
the company easily survive on the competitive market. They consist of resources and
competences. Thus, Emirates Airlines is embedded with threshold resources that comprise of
various office equipment, flights, headquarters, employees, and its finance resources.
Emirates Airlines has some main resources operating in the form of management team.
Moreover, the company is able to provide the best premium services, including online
booking procedures, operations related to the on-time delivery, and point-to-point based
routing. The core competences consist of IT development and management as well as route
and ability to serve premium class. Therefore, the company positions itself as the finest in the
sky at a premium platform.
Competitive Advantage
Emirates Airlines provides high quality and fully equipped services in order to gain
benefit and potential outcomes among their competitors and, at the same time, to get a good
and remarkable place on the market to be called the Leader Company. For this specific
purpose, Emirates Airlines was termed as one of the first airlines in the world to offer big TV

MARKETING AUDIT: EMIRATES AIRLINES

screen in its all aircrafts. It also introduced an e-ticketing system in UAE for the very first
time.
With the help of market segmentation, this company gained another major competitive
advantage. Thus, it is the only company operating in the UAE that provides its pilots with the
training at plane simulators (Davahran & Yazdanifard, 2014). The aim of these changes is to
make this company a leader.
Finally, the company and its employees do not pay taxes, and this allows making
higher revenues (Peng, 2014). At the same time, the company focuses on premium and
business class passengers, so the difference between the cost price and the ticket price is high,
thus contributing to even higher revenues.
Market Research
In the Emirate Group, market research is conducted by the Market Research unit that
provides the company with internal research opportunities. The unit provides consultations
such as research expertise in assisting in the development of research plans for Emirates
Airlines, in appraising research projects, in controlling and managing research projects
domestically as well as through external research agencies (Emirate Group Careers, n.d.). The
units objective is to explore and study customers and other stakeholders opinions, views,
and attitudes, based on which the management could make deliberated decisions.
When conducting marketing research, Emirates Airlines has to find out how the
customers come out with their decisions to buy a ticket for a flight and what is more
important for them when choosing a flight (time, price, or services). At the same time, it has
to learn the purposes of air traveling, know to what destination the customers book flights
most frequently, how often they use airline services and which ones, the most frequent age of
customers, etc. This will help the company to study who, when, why, and how buys tickets for
Emirates flights and those of competitors. Thus, the company will be able to find free market

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niches, choose the most attractive target markets, understand its consumer better, make a sales
forecast, estimate the market volume, or choose the promotion strategy correctly.
The most effective way to conduct this market research is to make a written survey
using a questionnaire. Participants receive questionnaires to fill and send to the destination.
The more people are asked, the more accurate and representative result will be received. This
method will help to get an exact figure on the specific question. Furthermore, the company
can ask its consumers opinion via message boards, social networks, via e-mails, or Skype. It
will lower costs for investigation. Moreover, it can study the existing information on topics of
interest, including the information on the related markets on the Internet. Additionally, the
company can conduct questioning of employees and keep statistics. The combination of all
these methods will contribute to the most accurate result.
Customer Analysis
Needs Analysis
Usually, when using the services and buying the tickets of Emirates Airlines,
consumers seek to fulfill their emotional and social needs. In the first case, consumers
purchase products and services based on feelings. Emirates Airlines has been on the market
more than 30 years, and during that time, it has built a strong brand loyalty. Therefore,
consumers buy tickets because of their loyal feelings to the company. In the second case,
consumers prefer to satisfy their social needs. Thus, Emirates is focused on the premium class
passengers and it is one of the leaders in this segment. Consequently, consumers use the
airlines services to proove their social status and maintain it.
Decision Making Process Analysis (Sheth and Howards Model)
Customers go through a number of cognitive and behavioral processes while making
their purchases and spending decisions. The awareness of how customers make a decision on
one brand as a substitute of another and what factors influence their decision-making are quite

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crucial for marketers since they allow knowing the existing needs of their consumers but they
can also prepare for their future needs. This information is also vital to make a variety of
business decisions associated with product development, packaging, pricing, distribution,
promotions, communication, etc.
According to the Sheth and Howards Model of consumer decision making process,
there are three levels or stages of consumers knowledge that define their decision-making
(Managementduniya, 2013). At the first stage, the consumer knowledge about the product or
brand is very limited or absent; the consumer does not have separate product brand
preferences, and he or she actively looks for information related to alternative brands of
products (Managementduniya, 2013). At the second stage, consumers knowledge and brand
preferences are partially defined; a consumer cannot fully see the difference between the
separate trademarks, by which preferences are set, and they seek for more information that
could establish criteria for decision-making (Managementduniya, 2013). At the third stage, a
consumer is well acquainted with the knowledge and he/she has brand preferences as well as
available choices on the market; therefore, a consumer is confident in buying products of a
particular brand (Managementduniya, 2013). The decision-making process is significantly,
although not directly, influenced by the external variables, including the value of purchase,
personal factors, and the financial status of the customer as well as the influence of time.
Segmentation and Targeting
Market segmentation and targeting are one of the main elements of a companys
market strategy. The basis of the segmentation is such a position of the company in a
competitive environment when it cannot meet all the needs in a particular product and
therefore, it should focus only on those segments that are most preferred in terms of industrial
and commercial opportunities of the company. It helps to satisfy the needs and requirements

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of customers fully, and as a result, it contributes to the successful operation of the company
and its prosperity.
On the airlines market, the segmentation is done based on such criteria as the type of
traveler, whether it is a business or leisure traveler or a traveler on a religious tour; as value,
whether consumer value convenient flights or price more; as the primary requirements, as age,
sex, and social status of the consumer, and others. In general, on the market, there are
business segments sponsored by a specific company, leisure segments, which are selfsponsored, other segments sponsored by a company or organization, including government
employees, refugees, teachers or military, and other self-sponsored segments, including
students, immigrants, visiting friends, and religious travelers.
The target markets of Emirates Airlines are corporates or people with high purchasing
power and social status, being of upper middle class or middle class. The segmentation is
done based on income and occupation, including the passengers who prefer comfort and
reliability. Thus, the upper middle and middle class have the right amount of money and they
are likely prefer to pay for the Emirates services. Further, they are focused on the services
and benefits that could be emitted from the flight experience. The segmentation based on the
occupation divides the audience into business and working classes. It allows studying what
percentage of the target audience fills particular section of the plane. Thus, the business class
section is advertised using different types of communication to the people of business class,
and the regular seats to the working class. In the first case, where the price is high and not
elastic, communication is based on the prestige, commitment, and efficiency offered by the
company. In the second case, the communication is based on the inspiration of consumers to
choose Emirates among other cheaper airlines and pay for an expensive leisure trip,
emphasizing on the diversity of the services that make the experience unique.
Positioning Strategy

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First, Emirates Airlines positions itself as premium airline. Thus, it is more oriented at
the premium class passengers, and it establishes prices and the quality services in accordance
with it. For instance, in order to ensure the feeling of premium traveling, the company has
created the terminal in Dubai Airport with exclusively VIP services offered to the clients
before boarding the aircraft. It allows the company justifying its premium prices as compared
to the rivals Qatar Airlines and Etihad Airways. As a result, due to promotion strategies,
Emirates observes the growth of approximately 15-20% in the premium class passengers (The
Financial Express, 2003). The perceptual map is shown in Figure 2.

Figure 2. Perceptual map

Secondly, Emirates positions itself as a global carrier, offering intercontinental flights
with a juncture through its hub in Dubai Airport. The Emirates Flight map is available on the
company website, and it constantly expands with new destinations. The company also
represents its customers as globalists. Moreover, it has launched a global multimedia
campaign entitled as Hello Tomorrow (OReilly, 2012). It is directed at positioning the
company as the one that makes the global connectivity and significant experiences possible.

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Thirdly, the company position itself as the provider of skyward service. The skyward
program is an award-winning program that could change the way people perceive the world
forever, and the program is free of charge. According to it, customers earn free miles that
could be spent with Emirates or its partners. Such a program increases travel and flight
experience, making customers more acquainted with the company services and increasing
brand loyalty.
Finally, Emirates Airlines position itself as a lifestyle brand and plans to expand this
practice in the future. Thus, the company does not only offer transportation from place to
place, but it also gives an important experience and connection of hopes and dreams of
consumers. However, Emirates has not significantly developed social networks and mobile
applications in comparison to the competitors, thus staying behind in terms of being a lifestyle
brand. At the same time, although the company has a mobile version of its website, there are
no special applications for smartphones (Wilfing, 2012). Here is where the company also
loses in contrast to its competitors.
Product Strategy
Emirates Airlines cares about its customers and tries to provide them with the best
products and services. When discussing the product strategy of the company, one can
highlight such features as fleet and schedule related product features as well as customer
service related product features. In terms of the first features, the company provides customers
with the fleet of various aircrafts, including Emirates A380, Boeing 777-300ER, Boeing 777200LR, Boeing 777-300, Boeing 777-200, Airbus A340-500, Airbus A340-300, and Airbus
A330-200 (The Emirates Group, 2015). Moreover, it provides in-flight services that differ
according to the seat class. Thus, the first class is provided with the entertainment and leisure
facilities, fine dining, and regionally inspired dishes as well as in-flight lounge on the board of
A380. The business class is provided with the seats that could be converted into flat beds, in-

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seat laptop power supply, and a very long table that could be used as a workstation. There is
also a controller of the private zone that can be raised and lowered and the luxury drink called
High Tea. Furthermore, Emirates provides its passengers of all classes with the
entertainment services packed in the product offering ICE (Information, Communication, and
Entertainment) (The Emirates Group, 2015). In terms of information, the passengers are
enabled to keep up with the latest news on BBC as well as to follow the flight using external
cameras of the plane. They are also provided with the Emirates in-flight magazine called
Open Skies (The Emirates Group, 2015). In terms of communication, the passengers are
enabled to keep in touch with their friends, families, or partners regardless of their location,
using a phone, SMS, or mail from every seat. Regarding entertainment, the passengers are
provided with music, the latest movies of the world, and TV shows. They can also play
various games using their ICE with touch screen.
Moreover, the company provides additional notable services. On more than 100
flights, the customers can use their own GSM mobile phones just as they do it on the ground.
Further, they can connect Wi-Fi on all boards of the A380 (The Emirates Group, 2015).
Moreover, Emirates provides transportation for first and business class passengers to the
airport in high-class automobiles. Additionally, for parents with babies, the company provides
priority boarding, changing tables, bassinets, and stroller. Furthermore, it provides ticket
booking on the Internet, thus contributing to the higher efficiency as well as the convenience
of the customers, and reservations on the phone. Finally, it provides the customers with the
self-check-in facilities, where they can choose the seat, print tickets and boarding passes as
well as move directly to the terminal.
Pricing Strategy
Emirates Airlines uses a pick n mix approach to it pricing strategy. It means that
there is a combination of various pricing strategies. The companys pricing strategy is based

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on the strong competition in the industry, when the prices may be lower than the market
prices, on the same level, or higher than the market, depending on the image of the product,
the differences between the analogue goods, the services provided, and customer loyalty.
First, the prevailing pricing strategy of the company is a value-added pricing tactic. It
is the most recommended tactic for many companies. It involves coming up with such a price
that customers wish to pay due to value-added features, thus keeping the prices high and
being competitive (Ibrahim, 2015). Thus, this value helps to justify the high prices. It is
focused not on increasing the profits but on raising customers loyalty to the products they
will not find anywhere else. Thus, Emirates Airlines operates and position itself in the
premium airline category. The companys prices for the tickets and additional services are
higher in comparison to its competitors in the premium category such as British Airways,
Cathay Pacific, and Qatar Airways. Using the value-added strategy, Emirates justifies its high
prices adding value with unlimited services of high quality. Thus, as it was previously told,
the company provides services that increase the travel value of customers and make the
purchasing process, boarding, and flight easier and more convenient for the passengers. For
instance, Emirates position exquisitely even in the food and cuisine department. Additionally,
the company uses the Peak/Off-peak Season pricing strategy. As a part of this strategy,
Emirates introduces different festivals around the world, such as Christmas, Eid, and Diwali,
during which the prices are boosted for the established customer base.
In addition to the mentioned pricing strategies, the company regularly establishes new
services and offers on its price. The pricing of the company, as well as of other competitors in
the industry, has been significantly influenced by the growth of the aviation fuel prices.
However, the company has an advantage of not paying taxes, so it is easier to manage the
price and invest more in the quality of services.
Distribution Strategy

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It is difficult to overestimate the value of the product distribution system and strategy,
which is an integral part of marketing mix. After all, in order to ensure that the product can
meet any need, it has to be delivered to the place where it can be used at the right time and in
the required quantity. At the same time, all costs of manufacturer represent a cost until the
moment the product is sold to the customer. Thus, the sale of the product is the only way to
return the money spent with a certain profit that will be a compensation for the
entrepreneurship. Therefore, taking into account the importance of the distribution strategy,
Emirates Airlines uses various distribution strategies.
There are periods of time when there are low offer rates of tickets for the flights of
Emirates Airlines. It is especially the case in winters or summers. Here is where the intensive
based distribution is required. In this case, the tickets are offered through various channels
that are also available on the Emirates website. The company experiences the advantage of
this offer because it allows and assists in working under different marketing activities. It can
also increase the existing demand for related services. The exclusive distribution strategy of
Emirates Airlines allows the company distributing its tickets to different tour operators and
travel agents who are in the close connection with the airline business and who are known as
user friendly. However, such kind of companies requires wide geographical coverage that can
be provided by Emirates.
The selective distribution strategy of the company provides various offers to selective
customers and operators. Here, the company uses the external distribution channels, where
many companies compete based on ground principles most efficiently. In fact, currently,
consumers study the information provided on these kinds of websites and make the decisions
to buy on this basis (Boyd & Hollensen, 2012). Thus, it is not effective enough.
Promotion Strategy
Promotion Objectives

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When creating the promotion strategy, Emirates is likely to follow such objectives as
attracting new customers to the brand, reinforcing the brand image and personality, increasing
sales by raising awareness of a particular product or service, reminding consumers of existing
products or services and their benefits as well as reinforcing the unique selling proposition
over competitors.
Message and Creative Strategy
The slogan Hello Tomorrow is the main message and a major factor of the
communications in Emirates Airlines, with being the key element of the companys
promotional strategy for four years (OReilly, 2012). This message inspires customers by
making them feel the companys motivation to welcome new challenges and make advances
in reaching the top. Behind this messaging, the creative strategy has become a generic
campaign that combines inside all promotional messaging. The example can be the
announcement of new launched destinations of the company. Thus, when the new flights to
Oslo were established, the message was Hello Oslo (OReilly, 2012). Therefore, it maintains
continuity in the minds of consumers.
Promotion Mix
Emirates Airlines uses a differentiate promotion mix that consists of public relations,
trade and sales promotions, in-store displays, strong sponsorships, and advertisements. Thus,
in addition to other advertisements, it strongly utilizes in-flight advertising, including TV
advertising, as a part of inflight entertainment and an in-flight magazine. As a part of public
relations, Emirates issues a public affairs journal and supports programs of the International
Air Transport Association. Moreover, the company is committed to sponsorship around the
world. It sponsors arts and culture as well sports and races. Emirates also uses the
combination of push and pull strategy because it pushes new products and services and pulls
customers towards these products and services through advertising.

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Customer Service and Relationship Activities

Being an influential company in the UAE as well as in the aviation industry, Emirates
offers its Skywards club that has become one of the most bonding examples between a
business and its customers. The loyalty program allows frequent Emirates flyers to benefit by
collecting points through a wide range of purchases, allowing them to redeem benefits such as
free tickets, upgrades, and other services. The exclusivity has built a relationship and a sense
of brand loyalty between the customers and the company, showing added value to the services
offered by Emirates that goes beyond flying experience. Even internally, Emirates face card
for cabin crew as well as employee IDs provides a long list of discounts and added benefits
that the employees could enjoy throughout the UAE. This offers a service and relationship
value that promotes the retention of employees and internal satisfaction and motivation to
benefit the company as a whole.
Conclusion
In conclusion, Emirates Airlines is a significantly developed and successful airline
company that provides transportation by the aircrafts. It maintains stable growth even in the
unfavorable world economic, demographic and natural environment conditions. The company
aims to consolidate its market position strongly and overtake the existing competitors that
encourage the company to grow and provide better services. Emirates sells tickets at a price
higher than market one because it is oriented at the premium class consumers while providing
the best services and reliable security. However, the company has also established a relatively
fair price for ordinary customers while providing services of the same quality. During many
years, Emirates constantly improves and gains increasingly more trust, which makes it one of
the most famous companies in the world. From the day it was established, only several planes
faced serious problems, making the company more reliable and trustworthy.
Recommendations

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Recommendation 1:
Emirates should pay more attention to the attitudes by the employees to the customers.
Even though the number of services and their uniqueness may be favorable, the support stuff
can be rude sometimes, which spoils the impression made by the company.
Recommendation 2:
It should not allow the customers who came first on the board to sit at the seats booked
by other customers who are late, which is a frequent practice.
Recommendation 3:
It should allow people to enter the class of their family members if they are separated
in different classes. In fact, it is a good practice to have different lounges for first, business,
and economy classes, which means not allowing people to enter their private zones. However,
it is not the case of family members since they should not be separated from each other.

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