Market Segmentation of Etihad Airways
With ties to the aviation sector, Etihad Airways is the second-ranked airline in the United Arab Emirates and third in the Middle East. It was established in 2003 and is the flag carrier of the UAE. Etihad promises quick travel that is also pleasant, outstanding, and comfortable. Today, we’ll look at Etihad Airways’ market segmentation.
Let’s start by talking about Etihad Airways positioning strategy.
But first, watch one of the Etihad Airways commercials.
In 2015, Nicole Kidman was Etihad’s brand ambassador in an advertisement for their airline titled Flying Reimagined. The ad showed her flying an A380 and offering its comforts. Valerie Martinez and Anthony Atanasio directed this advertisement.
What follows is a description of both the advertisement and its sophisticated advertising for people who can’t recall them. The advertisement’s attractiveness comes from its superb cinematography, storytelling, and attractive celebrities.
Nicole’s kind voice and the endearing images were the two main components of this advertisement. Together, these two created a subdued yet alluring ad.
Although the entire advertisement is dripping with luxury, Nicole’s narrative and the images of a utopian society in the opening thirty seconds do an excellent job of setting the scene. Moreover, it is comparable to Etihad in that the first-class cabin is a luxurious three-room apartment called “The Residence” with a shower, butler, and a double bed aboard an A380.
Of course, the advertisement featured perfections outside of the ideal world. Etihad took care to present its airline, which was the marketing focus, as the finest. The cabin crew’s clean uniforms standing in a straight line, the shining and well-organized flatware, and the laser-assisted suit designing and tailoring with the phrase “They want to advance things farther” were all subtle symbols of Etihad’s brand.
The images of sugar changing into a building’s top view and a synthetic canopy like one inside an aeroplane all convey the idea of perfectionism intended for a moment ago. However, this is the point at which the story and the images start to diverge.
Following are breath-taking images of cuisine, champagne, an apartment on an aeroplane, and its amenities. Such visuals stoke the epicentres of the viewer’s imagination. By using examples from the past, we are supposed to make connections.
Since all airlines offer the same services, the aviation sector is competitive. Etihad’s chief commercial officer agreed to this. It follows that they needed to discover a means to differentiate themselves from the competition. “…as they intend to rethink it completely…” The story ends with this statement, which outlines the goal indicated before.
Nicole Kidman exudes sophistication, wit, and beauty. According to Etihad, she was also a safe and respectable celebrity figure to work with. Etihad is one of the top airlines in the world. They had won the “Best Airline” title at the World Travel Awards six years before. Therefore, it seems natural that Etihad would seek to employ a global brand ambassador who is consistent with its standing with the general public.
Etihad also stated that bringing Nicole on board would improve their relationship with Australians. Australians are known for being regular travellers, so it seems to sense that they would like Etihad because of Nicole.
According to Etihad’s Chief Commercial Officer, in 2015, their brand recognition increased from 63 per cent to 73 per cent in 2014 and will rise even more due to this particular advertising campaign.
The case study from Google demonstrates the peak in global interest in Etihad Airways. As a result, Nicole Kidman’s engagement in the advertisement campaign and subsequent dramatic changes to the company’s image.
The details that have been reported all point to Etihad Airways targeting so-called balancers.
Balancer’s market segment.
Values and way of life:
Families and careers are the two things that balancers value most in life. They always fight to divide their time and focus between these two. These folks make every effort to be with their loved ones because they recognize the significance of family in everyone’s life. In addition, Balancers are acutely aware of the value of a successful career. They are aware of the amount of effort and work required for success.
Viewpoint on Shopping:
The Balancers’ target market is incredibly devoted to the brands they first tried and enjoyed. Because they often have much spare wealth, they prioritize product quality. Balancers never compromise on the quality of the products they want.
However, members of this target market are also bargain seekers and would never purchase a product only because of the brand. They buy and test new items only if they need them since they know what they want.
The positioning strategy of Etihad Airways.
The most comprehensive, cross-organizational aviation sustainability project ever launched, Etihad expands its strategic sustainability programme by bringing together industry experts.
A similar programme aimed at maximizing the opportunities presented by the addition of the Rolls Royce XWB-powered Airbus A350 fleet will now complement the airline’s sustainability programme, which up until this point focused on the fleet of GEnX-powered Boeing 787s under the Greenline Program.
In honour of the 50th year of the UAE federation and the airline’s dedication to the 2050 goal of net-zero carbon emissions, the first of Etihad’s A350s, shown today at the Dubai Airshow as the “Sustainability50,” flies with a distinctive “UAE50” livery.
The collaboration between Etihad and partners including Boeing, GE, Airbus, and Rolls Royce supports the organization’s strategic goals to reduce emissions intensity in its passenger fleet by 20% by 2025, reduce 2019 net emissions by 50% by 2035, and achieve net zero emissions by 2050.
Tony Douglas, Group Chief Executive Officer of Etihad Aviation Group, said that bringing together these industry players for decarbonization is a unique and significant step forward. To make minor, gradual gains, it will be necessary for a variety of organizations and governments to combine efforts.
Governments and regulators must support industry innovation for long-term solutions to decarbonizing aviation. There is a need for support to create an adequate and cheap supply of sustainable fuels.
Thus, it may help to optimize the world’s busiest routes to reduce the quantity of CO2 released into the environment. There is a huge potential here that anyone can take advantage of immediately if the desire doesn’t involve using any new technology.
“Partnership is crucially important to decarbonize our industry, and we are thrilled to work side-by-side with Etihad to advance sustainable aviation,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. Our flight test programmes and other collaborative initiatives have shown the significance of industrial cooperation over the last two years.
With the renewal of the Etihad, Boeing, and GE contract under the Greenline Programme today, there will also be a renewed emphasis on propulsion, looking at new chances to test emissions-reducing technology from GE Aviation and GE Digital. The foundation of this deal is the fleet of 787s owned by Etihad.
Through each organization’s individual sustainability programmes to enhance aviation’s environmental performance, Etihad’s relationship with Airbus creates a formal structure for collaboration for sustainability across several fundamental areas of Etihad’s A350 fleet. The promotion and commercialization of environmentally friendly aviation fuel, waste and weight management, and the creation of data-driven analysis are essential for collaboration.
“Airbus is leading the industry in the collective decarbonization efforts essential for sustainability,” said Mikail Houari, president of Airbus Africa Middle East. The newest widebody from Airbus, the A350, has a brand-new design and offers genuine advantages to operators like Etihad Airways. Improved environmental performance and corporate sustainability result from reduced fuel use and operational expenses.
Given the famous fuel efficiency of this cutting-edge engine, the introduction of the Rolls-Royce XWB engine to power the A350 fleet is yet another testament to Etihad’s commitment to sustainable operations.
Etihad’s collaboration with Rolls-Royce aims to use the engine’s colossal potential and go beyond it, focusing on utilizing electrification technologies, hybrid systems, electric motors for commuter planes, and the quickly growing urban air mobility (UAM) market.
Last but not least, let’s examine Etihad Airways marketing mix.
Product:
By the end of 2015, Etihad Airways will have an international footprint and a diverse product line that includes a fleet of 122 Boeing and Airbus aircraft. It runs Etihad Cargo and Etihad Holidays and is involved in passenger and cargo transportation.
Etihad Airways Partners is the name of its airline alliance. Airlines offer specific ground services according to the market segment where people can use their products. Both the Diamond and Pearl classes have access to the opulent club, which provides amenities like à la carte cuisine, a Champaign bar, and a cigar lounge. Through three product categories, Etihad Airlines provides its airline customers with the best services available. These include
Five-star Diamond or First Class ticket service features comfortable, opulent luxury with leather seats that you can pull out to make a flat bed. Furthermore, customers can connect their devices via USB ports and power outlets. It offers solitude and contains a personal wardrobe, entertainment screen, lighting controls, and other features. Excellent dining options are available.
You can turn the flexible, comfy chair in the Pearl or Business class into a bed with a 15.4-inch entertainment screen. There are lights, plugs, headphones, and a large table for dining in comfort. Food of high quality and beverages are available for dining.
The Coral or Economic class is a budget-friendly introductory class with pillows, comfy cushion chairs, and a tiny entertainment screen. For comfort, features like coat hangers and cup holders are also present.
Place.
In addition to having its corporate offices in Abu Dhabi’s Khalifa City, Etihad Airways operates out of the airport’s hub. Its activities comprise around a thousand weekly flights carrying passengers and cargo to approximately one hundred and twenty locations. Its global network spans regions like the United States, Australia, Asia, Europe, Africa, and the Middle East.
Etihad has a solid and effective channel for distribution. Through its offices and primary branches, its tickets are widely accessible. It has hired travel brokers who sell tickets internationally. Customers of Etihad Airlines can find pertinent information on the airline’s official website. Through this gateway, purchasing tickets is simple and hassle-free.
Price.
With expected revenues of US$7.6 billion in 2015, Etihad Airways has developed into a very successful airline. It has implemented a value-added variable pricing policy. Its pricing strategies follow the same three-segment division of its services. It has a premium pricing strategy for first-class customers because it provides high-end services and a semi-premium but fair pricing policy for second-class passengers.
It has implemented a policy of economic pricing for third-class travellers. Etihad offers its consumers a range of pricing options, which has led to significant ticket sales and increased earnings. Additionally, the business has a penetration strategy and offers many benefits over rivals.
Promotion.
Etihad Airways is aware of the true worth of an effective marketing plan. During the holiday season, it promotes purchases through coupons and incentives. On its website, customers can purchase tickets for the lowest cost imaginable. For the specific purpose of concentrating on direct marketing initiatives and raising brand awareness, Etihad has engaged new personnel.
It has a frequent flyer programme that rewards devoted consumers with significant discounts. Etihad Airways has won some honours, including Best Airline of the Year 2010 and World’s Leading Airline Award for a Second Consecutive Year.
We were able to analyze Etihad Airways marketing segmentation extensively. We also learn some history about the company and its Balancers Brand Archetype. Based on it, we created hypothetical clients. We learned much about Etihad Airways marketing mix and how it affects its advertising tactics. Thus, we can state with confidence that Etihad Airways is deserving of its current level of notoriety and fortune.
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