Marketing Mix of Etihad Airways and 7Ps (Updated 2024)

The Marketing mix of Etihad Airways analyses the 7Ps of Etihad Airways, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Etihad Airways. Etihad Airways is associated with the aviation industry and ranked second in the UAE and third in the Middle Eastern region. It is UAE’s Flag Carrier and was founded in 2003. Etihad guarantees fast traveling with a smooth, excellent, and comfortable experience. Some of its competitors are as follows-

• Qatar Airways
• Jet Airways
• Air India
• Emirates

About Etihad Airways

• Type: Airline
• Industry: Aviation
• Founded: July 24, 2003
• Founder: Government of Abu Dhabi
• Headquarters: Khalifa City, Abu Dhabi, United Arab Emirates
• Area served: Worldwide
• Key people: Mohamed Mubarak Al Mazrouei (Chairman) and Tony Douglas (CEO)
• Number of employees: 30,000

Etihad Airways Product Strategy 

Etihad Airways has an international presence with a diversified product range that includes a fleet of one hundred and twenty-two Boeing and Airbus aircraft by the end of 2015. It is involved in cargo and passenger transport and operates two airline companies, Etihad Cargo and Etihad Holidays.

It also has an airline alliance titled Etihad Airways Partners. Airlines provide special ground services depending on the segment of their product usage. The luxury lounge is available for Diamond and Pearl classes with services like La carte dining, Champaign bar, and Cigar lounge.

The product mix of Etihad Airways in 2024 is as follows (Source)

1. Passenger Services: Economy Class: Standard seating, meals, and in-flight entertainment; Business Class: Enhanced seating, gourmet dining, access to airport lounges, priority services, and increased baggage allowance; First Class: Luxury seating, private suites, personalized service, gourmet dining, access to exclusive lounges, and premium amenities.
2. In-Flight Entertainment: A wide selection of movies, TV shows, music, and games are available on personal screens at each seat.
3. Dining: Airlines often offer a range of meal options, including special dietary requests for passengers with specific needs.
4. In-Flight Connectivity: Wi-Fi and internet access during the flight, allowing passengers to stay connected.
5. Lounges: Exclusive airport lounges for premium-class passengers, offering comfortable seating, refreshments, business facilities, and relaxation areas.
6. Etihad Guest Loyalty Program: Frequent flyer program that allows passengers to earn and redeem miles for flights and other benefits.
7. Cargo Services: Etihad Airways may also offer cargo transportation services for businesses and individuals.
8. Codeshare and Alliances: Etihad may partner with other airlines, allowing passengers to book flights with a broader range of options.
9. Ground Services include chauffeur-driven transfers for premium passengers, meet-and-assist services, and priority check-in and boarding.
10. Special Assistance: Services for passengers with disabilities or special needs, including wheelchair assistance and accommodations.

Etihad Airways Place Strategy

Etihad Airways operates from its Abu Dhabi International Airport hub and headquarters in Khalifa City in Abu Dhabi. Its operations include nearly one thousand weekly flights to an estimated one hundred and twenty destinations, including cargo and passengers. Its international network is spread over America, Australia, Asia, Europe, Africa, and the Middle East.

Etihad has a capable and efficient distribution channel. Its tickets are readily available through its offices and main branches. It has recruited traveling agents that provide tickets all over the world. Etihad Airlines has an official website that offers relevant information to its customers. Tickets can easily be procured through this portal without any hassles.

Here are five key components of Etihad Airways’ place strategy:

1. Global Network: Etihad Airways strategically positions itself as an international airline with an extensive route network, connecting passengers to numerous destinations worldwide. The airline operates from its hub in Abu Dhabi, strategically located to facilitate convenient connections between continents.
2. Hub-and-Spoke Model: Etihad utilizes a hub-and-spoke operational model, with Abu Dhabi International Airport as its primary hub. This approach allows for efficient transit and connectivity, making it a convenient choice for travelers between various regions.
3. Codeshare Agreements: Etihad has established agreements and partnerships with numerous other airlines, expanding its reach and offering passengers access to a broader range of destinations. These partnerships enhance its place strategy by increasing its presence in key markets.
4. Premium Lounges: Etihad invests in premium lounges at its hub and other airports worldwide. These lounges are a crucial part of the airline’s place strategy, providing a comfortable and exclusive environment for premium passengers during their travel experience.
5. Regional Focus: Etihad has traditionally focused on serving routes to and from the Middle East, Africa, Asia, Europe, and the Americas. This regional focus allows the airline to concentrate its resources and efforts on key markets and routes, enhancing its competitiveness and service quality.

Etihad Airways Pricing Strategy

Etihad Airways has become a very successful airline, with estimated revenues in 2015 at US dollars 7.6 billion. It has adopted a variable pricing policy that is value-added. As its passenger and cargo services are now divided into three segments, so are its pricing policies. It has adopted a premium pricing policy for first-class passengers as it offers high-end services and a semi-premium but reasonable pricing policy for second-class passengers.

For Third-class passengers, it has adopted an Economic pricing policy. Etihad is an airline that provides various pricing options to its customers, resulting in large ticket sales and more significant revenues. The company has also adopted a penetration policy, and its marketing plan provides multiple competitive advantages. It offers periodic incentives and discounts to retain its customers’ loyalty.

Here’s an overview of Etihad Airways’ price strategy, described from a mHere’sng perspective:

1. Revenue Management Optimization: Etihad Airways uses advanced revenue management systems to continuously analyze demand patterns, booking trends, and market conditions. This data-driven approach allows them to adjust prices dynamically based on seat availability, time until departure, and historical booking behavior.
2. Segmentation and Fare Classes: Etihad offers a range of fare classes to cater to different customer segments. This includes Economy, Business, and First Class, each with its pricing structure. Additionally, within these classes, they may offer flexible, semi-flexible, and non-flexible fare options.
3. Promotions and Sales: Etihad Airways runs promotional campaigns, seasonal sales, and special offers to stimulate demand during off-peak periods or to promote specific routes. These promotions are often marketed through various channels, including their website, email marketing, social media, and travel agencies, to attract price-sensitive travelers.
4. Bundling and Ancillary Services: To increase revenue, Etihad may employ a strategy of unbundling and offering ancillary services. This means that passengers can pay for additional services, such as extra baggage, seat selection, or in-flight amenities, on top of their base fare.
5. Corporate and Loyalty Programs: Etihad Airways also offers corporate travel programs and a loyalty program called “Etihad Guest.” These programs provide incentives and discounts to business travelers and loyal customers, encouraging repeat bookings and brand loyalty.
6. Competitive Pricing: Etihad closely monitors the pricing strategies of its competitors on key routes. They may adjust their prices to remain competitive, particularly on routes with solid competition.

Etihad Airways Promotion Strategy

Etihad Airways realizes the actual value of a good marketing strategy. It undertakes sales promotion through coupons and incentives during festive seasons. The lowest possible prices are offered on its website for online ticket booking. Etihad has hired new employees to focus on promotional activities via direct communications and create a positive awareness of its brand.

It is a top airline company whose Frequent Flyer Program offers good discounts to reward loyal customers. Etihad Airways has received several awards, including Best Airline of the Year 2010, and in the same year, it also won the World’s Leading Airline Award for a second consecutive time.

Etihad Airways employs a promotion strategy focused on the following:

1. Digital Marketing: Leveraging online channels like social media, email marketing, and their official website to reach a global audience with targeted promotions and offers.
2. Partnerships and Sponsorships: Collaborating with other brands and sponsoring events, sports teams, and cultural initiatives to enhance brand visibility and connect with a broader customer base.
3. Frequent Flyer Program: Encouraging customer loyalty through the “Etihad Guest” program,” offering re “yards, and exclusive promotions to incentivize repeat bookings.

Some Recent Video ads and Print ads of Etihad Airways are:

Etihad Airways People Strategy

Here are the key points regarding the “People” aspect of the Service Marketing Mix for Etihad Airways.

1. Leadership Diversity and Innovation: Etihad’s leadership team is noted for its diversity and innovative approach, which are crucial for steering the company’s global strategy and operations.
2. Group Chief Executive Officer: Antonoaldo Neves, appointed in October 2022, has significant experience leading major turnaround efforts at TAP, Portugal’s national airline, and his previous role as President of Azul Airlines in Brazil.
3. Chief Operating Officer: Mohammad Al Bulooki oversees all operations of the core airline business, including Etihad Airport Services, Network Planning, Sales, Revenue Management, Cargo & Logistics, and more. He joined Etihad in 2015 and has held several leadership positions in Abu Dhabi’s aviation sector.
4. Chief People and Corporate Affairs Officer: Dr. Nadia Bastaki, appointed in November 2021, focuses on Etihad’s people and wellbeing strategy, including employee engagement, experience, diversity, and inclusion. She is the first female UAE national specializing in aviation medicine and a key figure in developing the Etihad Airways Medical Centre.
5. Employee Support and Engagement: Etihad commits to supporting its employees in realizing their dreams and ambitions, highlighting the importance of its staff in shaping the airline and its services.
6. Impact on Service Quality: The emphasis on people in leadership and the broader employee base underlines how crucial human resources are to Etihad Airways’ success and the quality of service provided to passengers.
7. Commitment to Excellence: The airline’s leadership inspires and motivates teams to deliver on Etihad’s promise to transform the travel industry through creativity and innovation.

Etihad Airways Process Strategy

The “Process” aspect of the Service Marketing Mix for Etihad Airways involves a series of steps designed to enhance customer experience, from booking to post-flight assistance. Here’s a summary of its process strategy.

1. Booking and Managing Flights: Customers can easily manage their bookings online, including viewing or changing flights, selecting seats, and adding extra baggage. This can be done through Etihad’s website, ensuring flexibility and control over travel plans.
2. Online Check-in: Etihad offers online check-in services 30 hours before the flight, allowing passengers to save time and streamline their airport experience. This service is complemented by options to book extra legroom seats or additional baggage online.
3. Priority Access: For a fee, Etihad provides Priority Access, which offers travelers the convenience of skipping queues with dedicated check-in counters, priority boarding, and quicker baggage retrieval upon arrival.
4. Abu Dhabi City Check-in: Passengers can check in at the Abu Dhabi Cruise Terminal or Abu Dhabi National Exhibition Centre (ADNEC), offering a hassle-free airport experience. This service includes fast-track immigration checks and the ability to upgrade bookings.
5. Assistance for Travelers: Etihad’s help center covers many services, including special assistance requests, traveling with pets, and handling lost and found items. The airline also provides direct messaging and online chat options for real-time support.
6. Etihad Guest Program: The loyalty program offers numerous benefits, including the ability to manage bookings, request special services, and earn miles. Members can log in to manage their account preferences and view their balance.

Etihad Airways Physical Evidence Strategy

Physical evidence in the service marketing mix refers to the environment in which the service is delivered, where the firm and customer interact, and any tangible commodities that help to communicate and perform the service. For Etihad Airways, one of the world’s leading airlines, physical evidence plays a crucial role in shaping customer perceptions and experiences. Here are some key points regarding the physical evidence of Etihad Airways.

1. Aircraft Fleet: The modern, well-maintained fleet of aircraft, including the Airbus A380 and Boeing 787 Dreamliner, offers a tangible reflection of the airline’s commitment to comfort, safety, and technology.
2. Cabin Interior and Comfort: The design and comfort of the aircraft interiors, including seating configuration, entertainment options, and amenities. Etihad’s Residence, Business, and Economy classes offer varying levels of luxury, privacy, and comfort as physical evidence of the airline’s service levels.
3. Lounges: Premium lounges at various international airports provide a luxurious and comfortable environment for passengers to relax before their flight. These lounges often include dining areas, showers, business centers, and relaxation zones, showcasing the airline’s dedication to superior customer service.
4. Uniforms of Staff: The attire of flight attendants and ground staff is designed to reflect professionalism, cultural respect, and the brand’s image. The uniforms serve as a visual representation of the airline’s quality and service standards.
5. In-flight Meals and Beverages: The quality, presentation, and variety of meals and beverages offered, tailored to different classes and customer preferences, act as a tangible showcase of Etihad’s service quality and attention to detail.
6. Boarding Passes and Printed Materials: The design and quality of boarding passes, luggage tags, and other printed materials that customers receive contribute to the overall brand experience.
7. In-flight Entertainment System: The range and quality of the in-flight entertainment system, including movies, TV shows, music, and games, are physical proof of the airline’s efforts to ensure a pleasant flight experience.
8. Website and Mobile Application: The usability, design, and functionality of the airline’s website and mobile app, providing easy access to flight bookings, check-in, and other services, reflect the brand’s commitment to customer convenience and technological innovation.
9. Check-in Counters and Gate Areas: The design, signage, and overall ambiance of Etihad’s check-in counters and gate areas at airports contribute to the first and last impressions of the airline’s service environment.
10. Cleanliness and Hygiene: The cleanliness of the aircraft, lounges, and other customer touchpoints, especially in light of health and safety concerns, is physical evidence of the airline’s commitment to passenger wellbeing.

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