Lufthansa airlines

MATHEW FEBIN CHARLES

B2539
 INTRODUCTION

• Deutsche Lufthansa AG, commonly known as Lufthansa is the largest German airline and
was founded on 6 January, 1953.

• The company slogan is “Say yes to the world.”

• Lufthansa is derived from the German word Luft meaning "air" and Hansa for

the Hanseatic League.

• Deutsche Lufthansa AG owns several aviation-related companies, such as Lufthansa

Technik and LSG Sky Chefs, as part of the Lufthansa Group.

• In total, the group has over 700 aircraft, making it one of the largest airline fleets in the
world.
PRODUCT, BRAND & LOGO

• PRODUCT –

1. Passenger Airline group

2. Logistics

3. MRO

4. IT Services

5. Catering
 CONTD.

• BRAND –

1. Star Alliance Member

2. Customer Centric

3. Focus on Quality

4. Responsible Growth

5. Sustainable growth

6. Continuous Innovation
 CONTD.
• LOGO –

• The Lufthansa logo, an encircled stylized crane in flight, was created in

1918 by Otto Firle.

• It was part of the livery of the first German airline, Deutsche Luft-
Reederei (abbreviated DLR), which began air service on February 5,
1919.

• In 1926, Deutsche LuftHansa adopted this symbol, and in 1954,

Lufthansa expressed continuity by adopting it, too.
 MARKETING PLAN
INTERNAL FACTORS

STRENGTHS (+) WEAKNESSES (–)

   

1. Brand Strength 1. High-cost base

2. In-Flight Services 2. Poor Labor Relations
3. Multi-Passenger Branding 3. Slow response to competitive threat
4. Solid Balance Sheet
5. Coverage in Europe
EXTERNAL FACTORS

OPPORTUNITIES (+) THREATS (–)

 

1. Increase in foreign travel 1. Tough Competition

2. Increased demand in emerging economies 2. Rising Costs
3. Increase in overseas vacations
4. Fussy Customers
 Porter’s Five Forces

THREATS OF NEW THREATS OF COMPETITIVE

SUPPLIER POWER BUYER POWER
ENTRY SUBSTITUTION RIVALRY

• Economies of scale
• Bureaucracy is involved in
setting up a new airline.
• The entry barriers for new
airlines are lower in a
deregulated market.
• Substituted forms of • Competitive rivalry is high • Labour & Staff costs may
• Buyer power is increased
transport could be road, due to low cost airlines. contribute more than 40%
by the presence of online
rail and marine. • Intense rivalry between of total airline costs.
booking.
• Cost of change to rail is airlines to achieve market • Little control over rising
• Passengers are price
less expensive. leader status. fuel prices & no subs to
sensitive.
• Low cost airlines offer less • Exit barriers are high. oil.
price than high speed trains • Customers can easily
switch between airlines.
 SERVICE MARKETING STRATEGY
• Mission – Lufthansa’s mission is to become a leading name in the world of air travel by being the
top preference of customers and shareholders all over the world. It aims to continue playing a
significant role in shaping the global aviation market as it has been doing for the past decades.

• Core Values –

1. Provide reliable service for passengers and air-cargo.

2. Grow profitably and maintain a healthy financial structure.

3. Commit to sustainable development by fulfilling social responsibilities.

CONTD.

• Marketing Mix of Lufthansa analyses the brand/company which covers 4Ps (Product, Price,
Place, Promotion) and explains the Lufthansa marketing strategy. As of 2020, there are several
marketing strategies like product/service innovation, marketing investment, customer
experience etc. which have helped the brand grow.

• Lufthansa Product Strategy –

1. Domestic Flights and International Flights
2. Book, Flight Information, Planning (Travel guide, Tours and activities). All these form the
product strategy in the marketing mix of Lufthansa.
3. Travel preparations, Planning your flight, Check-in, Baggage services etc.
CONTD.

• Lufthansa Price/Pricing Strategy –

1. Lufthansa charges its customers according to the class they intend to travel.

2. Lufthansa offers 4 classes i.e. Economy, Premium Economy, Business and First class. Economy
and premium economy classes are priced lower as they cater to middle class segment.

3. For Business and First classes premium prices are charged as all high end and business trip
customers travel in these classes.
CONTD.
• Lufthansa Place & Distribution Strategy –

1. Lufthansa has booking options on its website through which a customer can schedule and book
flights according to the needs. Also one can reschedule and cancel flights through the website.

2. Mobile Application to book and reschedule flights

3. Besides this, they also have agents who book tickets for Lufthansa.

4. Lufthansa has city, reservations and airport offices throughout the world from where its
customers can book flights at their convenience.
CONTD.

• Lufthansa Promotion & Advertising Strategy –

1. TV ads which focus on the quality of service it offers to its customers.

2. Promotional codes through which the customers can avail discounts on their travel.

3. Loyalty programs to retain and engage its loyal customers.

4. Digital and social media marketing.

5. They also engage with the customers through Twitter where they answer any queries.
ELEMENTS IN SERVICE OFFERING AND RELEVANCE

Top quality service.

Flexible booking options.

Free Corporate Bonus Programme

Private Jets for business trips

AirPlus – A tool to control over your entire business travel processes.

PartnerPlus benefit
 KEY ISSUES AND CHALLENGES

• Rising Oil prices

• Losses due to the pandemic

• Tough Competition

• Relationship between employees and management

• Positioning Lufthansa in the Asian route

 SUGGESTIONS

• Rising oil prices – Lufthansa can use Connected Aircraft technologies fueled by big data
and advanced analytics to become more efficient managing their fleets and their fuel.

• Losses due to the pandemic – Lufthansa can shut down their non-profitable routes for a
while and increase their traffic to their profitable routes. They can increase their ticket
prices slightly to maximize cash inflow.

• Tough Competition – Provide the best services to the passengers. Allows focus on
customers changing needs as they continually become more demanding.
CONTD.

• Relationship between employees and management – Employees are the strength of

every company. So it is essential to always maintain a good relation with them.
Management should ensure that they carry a good relationship with the employees and
their union.

• Positioning Lufthansa in the Asian route – Improve air traffic route in these routes.
Partner with the most successful Airlines in these routes like Emirates, Etihad Airlines.
THANK YOU