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

The Marketing mix of British Airways analyses the 7Ps of British Airways, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of British Airways. British Airways is the most significant airways in the United Kingdom regarding its fleet size and international destination flights. It comes at number second if it is about carrying passengers to international destinations. The Airway has its headquarters near the Heathrow Airport in London.

To maintain its position as one of the leading airlines, Airways set and maintained its high standards in terms of services. The company provides twenty-four-hour security services to its customers and handles all situations calmly and calmly. The quality of services rendered has helped British Airways define itself as a speedy airline that provides “Quality flights for all people.”

About British Airways

• Type: International airline
• Industry: Aviation
• Founded: 1924
• Founders: Imperial Airways
• Headquarters: London, England
• Area served: Worldwide
• Current CEO: Sean Doyle
• Number of employees: Over 42,000
• Major Products: Passenger flights

British Airways Product Strategy

British Airways, a major international airline, offers a diverse range of products and services to cater to the varied needs of different services and its passengers.

The new Product Mix of British Airways in 2024 is as follows (Source).

1. Flight Classes: Economy Class: Offers basic amenities and services for budget-conscious travelers; Premium Economy: Provides more comfort and services than the standard economy; Business Class: Targeted at business travelers, offering superior comfort, privacy, and premium services; First Class: The most luxurious offering with exclusive services, gourmet meals, and enhanced privacy.
2. Cargo Services: British Airways provides cargo transport services, handling various goods, including general cargo, perishables, mail, and specialty cargo like live animals and valuable items.
3. In-Flight Services: Entertainment: In-flight entertainment systems with movies, music, games, and television shows; Dining: Varied meal options depending on the class of service, including special meals catering to dietary restrictions; Connectivity: Wi-Fi services on board for passengers to stay connected.
4. Loyalty Programs: British Airways operates a frequent flyer program called the Executive Club, offering its members rewards like free flights, upgrades, and other benefits.
5. Travel Extras: Hotel Bookings: Partnership with hotels to offer accommodations; Car Rentals: Collaboration with car rental services for ground transport needs; Travel Insurance: Offering travel insurance products for a secure journey.
6. Corporate and Business Travel Services: Tailored services for business clients, including flexible booking options, lounge access, and corporate rewards programs.
7. Special Assistance: Services for passengers with special needs, including mobility assistance and support for those traveling with children or pets.

British Airways continues to evolve its product mix, adapting to changing market demands and technological advancements to enhance customer experience and operational efficiency.

British Airways Pricing Strategy

British Airways’ pricing and marketing strategy and economy pricing approach is sophisticated, customer-centric, and designed to maintain a competitive edge in the dynamic airline industry. Here are the key elements of British Airways’ pricing and marketing strategy below:

1. Value-Based Pricing: British Airways adopts a value-based pricing model, where the prices are set based on the perceived value of their services to different customer segments. This approach allows for premium pricing for higher classes, like First and Business, offering enhanced services and comfort.
2. Dynamic Pricing: Utilizing advanced algorithms and data analytics, British Airways employs dynamic pricing to adjust fares in real time based on demand, competition, seasonality, and other market factors. This flexibility helps in maximizing revenue while staying competitive.
3. Tiered Cabin Classes: The airline offers multiple cabin classes – Economy, Premium Economy, Business, and First Class, each with different price points. This tiered structure caters to a wide range of customers, from budget travelers to those seeking luxury experiences.
4. Revenue Management Techniques: British Airways employs sophisticated revenue management strategies, such as overbooking policies and yield management, to optimize occupancy and maximize revenue per flight.
5. Special Offers and Loyalty Programs: The airline frequently introduces special offers, discounts, and loyalty programs like the Executive Club. These initiatives foster customer loyalty and help capture a broader market segment, including price-sensitive customers.
6. Geographical Pricing Strategy: Prices are also tailored based on geographical regions and routes, considering the local economic conditions, competition, and purchasing power of consumers in different countries.

In summary, British Airways’ pricing strategy is a blend of value-based and dynamic pricing, supported by tiered service offerings, revenue management, promotional strategies, marketing objectives, and regional considerations. This multifaceted approach enables the leading airline to appeal to diverse customer segments, optimize revenue, and adapt to ever-changing market conditions.

British Airways Place Strategy

Place plays a vital and distinctive role in any marketing strategy. British Airways recognizes this truth and has always been dedicated to mergers and liaisons with most partner airlines in important destinations on significant continents worldwide. As the company’s base is in the United Kingdom, it carries on most of the day-to-day activities in and around its operational base.

The company has successfully developed and upgraded infrastructure for safe and proper activities. British Airways has joined various other airport authorities to conduct business activities successfully. They have their warehouses, and sometimes, they have warehouses in coalition with other companies for carrier purposes and for servicing their aircraft.

Here’s British Airways’ place strategy.

1. Global Hub Operations: British Airways operates primarily from its central hub at London Heathrow Airport, one of the world’s busiest airports. This strategic location allows for efficient global connectivity and is a central point for international transit passengers.
2. Extensive Route Network: The airline maintains an extensive network, offering flights to major cities across the globe. This broad coverage ensures accessibility to key destinations for both business and leisure travelers.
3. Code-Sharing and Alliances: British Airways is a part of the Oneworld alliance and engages in code-sharing agreements with various airlines. These partnerships expand their reach, allowing passengers to travel seamlessly to destinations not directly served by British Airways.
4. Strategic Airport Slots: Holding valuable airport slots, especially at congested airports like Heathrow, British Airways can offer desirable take-off and landing times, enhancing convenience for passengers and maintaining a competitive advantage.
5. Digital and Physical Presence: Alongside its physical services, British Airways maintains a robust digital presence through its website and mobile app. These platforms facilitate easy ticket bookings and check-ins and provide real-time information, catering to the modern traveler’s needs.

British Airways Promotion Strategy

Considerable innovation has been put towards creating and maintaining promotional strategies. Poor marketing strategies management teams have been formed to keep the communication lines open with all its customers. A mobile application is created for unique airline customers, allowing them to make reservations quickly and get fringe benefits. To promote the services of the airlines, the internet has been used so techno-savvy customers can save time while booking tickets through various business domains on the net.

As a part of its promotional strategy, British Airways has been providing special flight tickets at reasonable and low-priced tickets at affordable prices for special occasions and holiday packages. Tickets called “Christmas gift vouchers” are one such scheme where the customers can travel to certain places at very reasonable and discounted prices.

To cash the off-season market, the company offers its customers discounted prices. British Airways has used the help of electronic and print media to promote the company and its products and various services. Television and radio channels, the internet, magazines, and billboards are different promotional routes of the company where active and catchy advertisements have helped maintain and create a customer base flag carrier airline.

Sponsoring events has also been a part of their promotional strategy as a healthy awareness about the company and its services can be generated here. Some celebrities, like Aditya Zutshi and golfer Justin Rose, have been part of the company as their brand ambassadors. British Airways has become synonymous with luxurious and reliable travel agents and airlines dedicated to customer satisfaction and providing safe, luxurious, and reliable airlines for prompt travel.

Some Recent Video ads and Print ads for British Airways are:

British Airways People Strategy

The “People” element of the Service Marketing Mix for British Airways plays a crucial role in shaping the customer experience and delivering the airline’s service promise to loyal customers. Here are some points highlighting the significance of “People” in British Airways’ service marketing mix strategy:

1. Highly Trained Staff: British Airways invests significantly in the training and developing its staff to ensure high levels of service quality. This includes cabin crew, pilots, ground staff, and customer service representatives.
2. Customer Service Excellence: The airline emphasizes exceptional customer service to provide every passenger with a personalized and comfortable experience. The staff is trained to handle various customer needs and situations professionally and carefully.
3. Diverse and Inclusive Workforce: British Airways strives for a diverse and inclusive workforce, recognizing the value of different perspectives and backgrounds in enhancing service delivery and innovation.
4. Employee Engagement and Satisfaction: Understanding the link between employee satisfaction and customer satisfaction, British Airways focuses on employee engagement strategies to motivate and retain talented individuals.
5. Brand Ambassadors: Employees at all levels are seen as brand ambassadors who represent the values and image of British Airways. Their behavior and interaction with customers significantly impact the airline’s reputation.
6. Feedback and Continuous Improvement: The airline encourages feedback from both customers and employees to continually improve service offerings. This feedback loop helps address any gaps in service and enhances the overall customer experience.
7. Service Differentiation through Staff: British Airways differentiates its service through its people by offering various levels of service across different cabin classes, including the exclusive First Class, Club World (Business Class), World Traveller Plus (Premium Economy), and World Traveller (Economy). The staff plays a crucial role in delivering these differentiated services.
8. Safety and Security: Staff training also includes extensive safety and security protocols to ensure the well-being of passengers and crew alike. This is a fundamental aspect of the airline’s operations and service commitment.
9. Global Talent Pool: Reflecting its status as an international carrier, British Airways employs a global talent pool, enabling it to offer a culturally sensitive and multilingual service to passengers worldwide.
10. Leadership in Service Innovation: The people at British Airways are involved in service innovation and the adoption of new technologies to enhance passenger experience, such as digital check-in processes, in-flight entertainment, and personalized travel solutions.

British Airways Process Strategy

The “Process” element in the Service Marketing Mix refers to the systems and procedures companies use to deliver their services efficiently and effectively. For British Airways, the focus on process optimization is critical to successfully ensuring its customers’ smooth, enjoyable, and reliable travel experience. Here are some key points that illustrate the processes involved in British Airways’ service delivery:

1. Online Booking System: British Airways offers an intuitive online booking system that allows customers to search for flights easily, compare prices, and book their travel, including selecting seats and meal preferences.
2. Check-in Procedures: The airline provides various check-in options to suit different customer preferences, including online check-in, mobile app check-in, and self-service kiosks at the airport, aimed at streamlining the check-in process and reducing wait times.
3. Baggage Handling System: British Airways employs a sophisticated baggage handling system to ensure luggage is efficiently processed, loaded, and delivered to the correct destination, minimizing the chances of loss or delay.
4. Flight Operations: The airline operates a comprehensive flight management system that schedules flights, manages crew assignments, and monitors flight status in real-time, ensuring operational efficiency and timely departures and arrivals.
5. Customer Service Channels: British Airways offers multiple customer service channels, including phone support, email, social media, and a dedicated help section on its website, enabling customers to get assistance whenever needed.
6. Safety Procedures: The airline adheres to strict safety procedures, from pre-flight checks and in-flight safety measures to emergency protocols, ensuring the safety and security of passengers and crew at all times.
7. On-board Service Process: British Airways has standardized onboard service processes that guide the delivery of meals, beverages, and in-flight entertainment, ensuring a consistent and high-quality experience for all passengers.
8. Loyalty Program: The British Airways Executive Club loyalty program has a streamlined process for members to earn and redeem points, access special offers, and enjoy tier-based benefits, enhancing customer loyalty and engagement.
9. Feedback and Complaint Resolution: The airline has a structured process for collecting and addressing customer feedback and complaints, allowing it to improve service quality and customer satisfaction continuously.
10. Health and Safety Measures: In response to health concerns, British Airways has implemented enhanced cleaning, disinfection, and health safety measures throughout its operations, including at check-in, boarding, onboard, and destination airports, ensuring a safe travel environment for passengers and staff.

British Airways Physical Evidence Strategy

The “Physical Evidence” element in the Service Marketing Mix refers to the marketing mix of the tangible and intangible elements that customers experience, which help to make the service more concrete and assure customers of their purchase decision. For British Airways, physical evidence shapes customer perceptions and enhances the service experience. Here are some key points that illustrate the physical evidence associated with British Airways:

1. Aircraft Fleet: The modern and well-maintained aircraft fleet of British Airways serves as crucial physical evidence. The planes’ exterior and interior design, comfort, and cleanliness contribute significantly to the passenger experience.
2. Branding Elements: The airline’s logo, color scheme, and uniform design are consistently applied across various touchpoints, including aircraft livery, staff uniforms, and promotional materials, reinforcing brand identity and trust.
3. Lounges: British Airways’ exclusive airport lounges, available in major airports worldwide, offer a comfortable and luxurious waiting experience for eligible passengers, with facilities such as dining, showers, and workspaces.
4. On-board Amenities: High-quality in-flight amenities, such as seats, entertainment systems, meals, and complimentary items (e.g., headphones, blankets, amenity kits), are physical evidence of the airline’s commitment to comfort and quality.
5. Ticket and Boarding Passes: The design and format of British Airways’ tickets and boarding passes, whether physical or digital, are part of the service’s physical evidence, designed for ease of use and clarity.
6. Check-in Desks and Signage: The branded check-in areas and clear signage at airports help guide passengers through the airport journey, reducing stress and enhancing the travel experience.
7. Website and Mobile App: The functional and user-friendly design of the British Airways website and mobile app, along with the visual and informational content, serve as digital-physical evidence, facilitating booking, check-in, and flight management.
8. Customer Service Centers: The physical setup and professional appearance of British Airways’ customer service centers and the presence of customer service staff reinforce the airline’s commitment to accessible and helpful service.
9. Marketing Materials: High-quality brochures, advertisements, and promotional videos that showcase the airline’s destinations, services, and customer testimonials act as physical evidence, building expectations and confidence in the brand.
10. Feedback and Reviews: Published customer feedback and reviews, whether on the airline’s platform or third-party sites, act as intangible physical evidence, providing prospective customers with insight into the service quality and experience offered by British Airways.

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