S.E.J.

A MARKETING
AUDIT LTD
PARIS 20 EME, FRANCE, EUROPE
15 YEARS AT YOUR SERVICE

MARKETING AUDIT FOR INTERNATIONAL

COMPANIES
OUR SERVICES
Analyzing
Marketing consultant
Recommendations on:
Pricing Strategies
Promotions strategies
Productivity
Marketing Organization audit

TABLE OF CONTENTS
Our Client company and request
Objectives, procedures and time frame of the Audit
The marketing Environment of our client company
The Organization Audit
Function, System and Productivity Audit
Identification of +VE and VE Aspect of client
company
Recommendation for improvement
Conclusion

EMIRATES AIRLINES

PROCEDURES & TIME FRAME

Online Research
Online Interviews
Press Articles
Emirates Annual Report 2014-2015

Time Frame: 2 months

Report to be submitted on July 31, 2015

EMIRATES AIRLINES HISTORY

Chairman - Sheikh Ahmed Al Maktoum
In 1985 by Dubai Government (2 leased aircrafts)
25th October 1985, Emirates flew its first routes
out of Dubai with just two aircrafta leased
Boeing 737 and an Airbus 300 B4.
Since the beginning their Goal was quality and
not quantity
highest standards of quality in every aspect of
our business

BACKGROUND OF EMIRATES

Emirates is a subsidiary of the Emirates Group

Emirates Group: Emirates & dnata

Emirates: Air Transportation Services
dnata: Cargo & Ground Handling, Catering and
travel services
Emirates and dnata are independent entities

under common management

BACKGROUND OF THE COMPANY

Today - 144 destinations in 81 countries
worldwide over 6 continents
Main activity- provision of commercial Air
transportation services.
Diversity of cabin crews from 95 nationalities.
The best achievement is an aircraft that worth
more than $ 26 billion for 45 Airbus A380, which
makes the company the world's largest purchaser
of Airbus's.
Emirates Airlines recently becomes one of the
fastest growing airlines
5th more profitable airline in the world.

Goal
To reach the top by excelling what they do
Mission
They exist to deliver the world best in flight
experience
Vision
To make civil aviation safe, leading and
sustainable

MARKETING ENVIRONMENT AUDIT

PEST ANALYSIS

MICHAEL PORTERs FIVE FORCES

SWOT ANALYSIS

POLITICAL
Terrorist attack at Karachi Airport in June 2014
6 May 2015. EU and UAE signed a short stay visa
waiver agreement
Visa free travel for EU citizens in UAE (stay of 90 days)
Ebola Outbreak health authorities & airlines on high
alert
MH17 Tragedy July 2014 (Armed conflict on aviation)

http://www.consilium.europa.eu/en/press/press-releases/2015/05/06-eu-signsvisa-waiver-agreement-united-arab-emirates/

ECONOMIC
Lower fuel cost
Strong rise in the US dollar
In EU,
Emirates supported 85,100 jobs
Contributed to Eur 6.8 billion to EU GDP in
2013/14
A380, supported 41,000 jobs
Contributed 3.4 billion on GDP
21 unique non-stop connections from European
cities to Dubai
Extending connectivity via Qantas partnership

SOCIAL FACTORS

Emirates crew care about the demand and tastes of its

customers
People travel for leisure, recreation and business
purposes
Lifestyles, tastes and fashions are all changing with time
More customers are willing to visit new and interesting
destinations
Most people in the Europe travel during their annual
vacation.

CULTURAL ENVIRONMENT

Biofuel Emirates spend billions of US Dollar on fuel

each year
Development in aircraft and fuel will continue to help
reduce the environmental impact of its operations

TECHNOLOGICAL FACTORS
Emirates invest in most modern, eco-efficient
Technology:

In aircraft
Engines
Ground equipment

Emirates Fleet one of the youngest fleet

Average age of just over six years
Emirates investment in new aircraft also
means their fleet is becoming increasingly
quieter.
Emirates fleet is fully compliant with ICAO
chapter 4 noise standards

TECHNOLOGICAL FACTORS
Onboard connectivity (stay connected while
travelling
Pioneered in seat email & SMS capability
Mobile telephone services on most A380 & 777
Aircraft
Free Wi-Fi onboard
Revamp the online booking engine
Emirates App for iPad & iPhone

Booking

Selecting

seats & meals

Checking & downloading boarding passes
Managing skywards accounts

TECHNOLOGICAL FACTORS EMIRATES A380

First airline to order this quiet and efficient
aircraft
Larger aircraft means fewer take-offs and
landings
Uses a range of light-weight materials
One of the quietest large aircraft designed to
meet the strictest airport noise requirements

TECHNOLOGICAL FACTORS BOEING 777

Emirates were the largest operator of long-range,
wide-body aircraft
Longest non-stop distance
More than 115 of Boeing 777 are powered by
General Electric GE90 Engine the biggest jet
engine in the world

STRENGTHS OF EMIRATES

Strong Brand Name

Brand Loyalty and Goodwill

Strong advertising base increased visibility

Skilled staff of divers culture (168 nationalities)

Extensive fleet of carriers from Boeing and Airbus (235 aircrafts)

Experiencing its fastest growth in Southern Europe as it added

A380
24 new aircrafts & retiring 10 older ones
Higher than expected demand in countries like Greece, Spain and
Italy
Absence of fuel hedging - helped Emirates benefiting from
declining of fuel prices

Installation of free WiFi in 107 aircrafts

Revamped online booking

WEAKNESSES
Difficult to occupy the US Market
Relying heavily on Corporate/Business Travellers
and higher income groups
Strong rise in the US Dollar against key market
currencies

OPPORTUNITY

Codeshare agreement with Frances national railway operator

that will allow passengers to connect to 19 French cities
Emirates will start a daily service to Bologna, Italy, from
November 3.
Emirates to add fourth Italian destination with daily service to
Bologna
Strengthened the global network with launching of new
passenger services to Abuja, Brussels, Budapest, Chicago & Oslo

Increased services to 34 cities across Asia, Africa and the USA

Partnership with Qantas airline

Expanded its codeshare & frequent flyer relationship with jetstar

OPPORTUNITY CONT..

Strategic partnership with the Republic of Angola 10 years

Management Concession Agreement
Expanded codeshare with Air Mauritius
Customer Support Capability 300seats contact centre in
Budapest
Emirates seven virtually integrated global contact centres
support customers in 48 countries, handling an average of 35,000
calls and 6,000 emails per day in 16 languages
Most recognisable brands in global sports
Over the past two years, the GL&D team won seven awards for its
programme
Investment of AED 100 million for learning and development of
employees
Emirates won first place in the Lead 2015 (USA) international
awards for our leadership programmes
Emirates grow its workforce along its growing business

THREATS
Rivals companies are major threats
Instability in many parts of the world including
Ukraine, Syria, Iraq, and Pakistan has led us to
re-route flights to avoid conflict zones, suspend
operations and increase security vigilance.
Protectionism and regressive aeropolitics
continue to cloud industry future

THREATS OF NEW ENTRANTS:

Threat is low as level of entry barriers is high
Finance, is the prime entry barrier
Huge capital requirements for purchasing new
aircrafts & initiating new projects and attracting
new customers
New entrants will face threats from existing
airlines, their goodwill & competitive price

BARGAINING POWER OF
SUPPLIERS:
Boeing and Airbus are the two dominant aircraft
producers for the worlds airlines
As a large buyer, Emirates Airline still have to
face the threat of paying higher prices or even
delivery delays
Emirates depend so much on these suppliers.
Suppliers can easily change their price and
quality

THREAT OF SUBSTITUTES:

Not a big concern for Emirates airlines as they

are connecting continents with thousand of
mileage which decreases the possibility of
substitute

BARGAINING POWER OF BUYER:

Competition between airline companies is intense
Buyers affect the airline industry through their abilities to reduce
prices, bargain for higher quality of services.

Strong power of the buyers of passengers (1.8 billion yearly), the

switching costs are low and passengers have many choices in the
market (ITAT).
The new technology of e-ticketing gives people the chance and
flexibility to search for many airlines companies offering better or
cheaper costs and services.
Furthermore, it eases the operation of switching between different
airlines companies. Therefore, many companies provide the air
miles system to gain customers' attention and to keep them as well.

COMPETITIVE RIVALRY:

Competition is a powerful driver for better customer

services and stronger industries.
In airline industry, the rivalry is very high between the
companies, as there is variety of airline companies that
provides best aircrafts and services to passengers.
For instance, many companies try to expand their market
shares by offering best prices, best customer services and
exclusive promotions as well as by being creative in their
advertising campaigns.

Emirates Organization Chart

ORGANIZATIONAL STRUCTURE OF EMIRATES

AIRLINES.

The organizational structure of emirates is a very

tall
CEO
TIM Clark
service

Marketing &
Communication

Finance

Administration

R& D

MARKETING MIX
PRODUCT
Fleets of Airlines
The Emirates A380
BOEING 777-300ER
BORING 777-200LR
BOEING 777-300
BOEING 777-200
AIRBUS A330-200
AIRBUS A340-300
AIRBUS A340-500

IN FLIGHT SERVICES
First Class
Private suite
Personalized dining
services
Onboard shower spa
Onboard lounge
In flight
entertainment
Chauffeur drive
services

ENTERTAINMENT SERVICES
Information
Communication
Entertainment
services

News , sports, latest

movies, music player
WIFI and phone
allowed
Passenger follow the
trip

PRICE

Premium pricing
strategy
Seasonal pricing
discount
Value for money
Free tickets for
children under 3 years
old

Here, the savings are more dramatic since regular business class tickets are
pricing out at $3,114 each, so you aresaving about $2,400.

For comparison, a single economy ticket is pricing out at about $900, so you
are saving about $420 by booking two tickets.

PLACE
Online and offline channel of reservation and support

online services
Boarding pass
Hotel reservation
Car booking
Flight status
offline services

PROMOTION
In store displays
Sponsorships
Advertisements
Open skies magazine

PEOPLE
Different cultures with common Goal
Trained employees
Continuity of management team since its
creation

PROCESS
Check in counters
Baggage services
Business class
lounge
Millennium
airport Hotel

PHYSICAL EVIDENCE
Cabin Crew
Skilled employees
Courteous
Unique dressing style
Ice services Emirates
Aero mobile
On-air
Ice TV
Unforgettable
dinning experience
The feel of luxury in
business class and 1st
class

MARKETING SYSTEMS AUDIT

(EMIRATES AIRLINE UNDER MICROSCOPE)

Marketing information systems

Marketing planning systems
Marketing control systems
New product development systems

MARKETING INFORMATION SYSTEM

Electronic Customer Relationship Management
(E-CRM)
Serve customer needs quickly and efficiently
Eliminate customers frustrating and time
consuming hunt
Enable e-mail, search engines, search by
categories Telephone, FAQ and find local office,
multi language support and newsletter

E- CRM
For several years- CRM for Laptops
Now accessible on tablets
Easier time concentrating on customer
experience
Emails go out to as many as 26 departments
Everything is recorded

MARKETING PLANNING AND

CONTROL

Emirates company has been using internet technology

for its marketing and sales.
Think of how often you communicate with people
during your day.
The 7Cs of communication

MARKETING PLANNING AND CONTROL

7Cs

Context
Content
Community
Communication
Customization
Connection
Commerce

NEW PRODUCT DEVELOPMENT

SYSTEMS
Good

strategy adopt
Strong market position
Member of the Strong Emirates Group
(handling of uncertain situation)
High profitability rate competitive
advantage

Emirates Introducing New First

Class Product

New product unveiled in May

by Etihad
On Emirates A380
The Residence and First
Class Apartment
Not only a revolutionary but
UNIQUE

MARKETING PRODUCTIVITY AUDIT

Financial year 2014 2015
Successful growth
Growth Strategy 24 wide bodied aircrafts
Increased operations 9 new destinations

THE PROFITABILITY
Are they profitable?
Continues to be profitable
Drop of Fuel prices
Employees cost
Employees number

Operating costs in
AED m

2014-15

2013-14

% change

2014-15 % of
operating costs

Jet fuel

28,690

30,685

(6.5)

34.6

Employee

11,851

10,230

15.8

14.3

Depreciation and
amortization

7,446

6,421

16.0

9.0

Aircraft operating
leases

6,920

6,548

5.7

8.3

Sales and marketing

6,098

5,421

12.5

7.4

Handling

5,094

4,648

9.6

6.1

In-flight catering and

related costs

3,883

3,529

10.0

4.7

Overflying

2,648

2,386

11.0

3.2

Aircraft maintenance

2,527

2,146

17.8

3.1

Facilities and IT costs

2,240

1,878

19.3

2.7

Landing and parking

1,761

1,568

12.3

2.1

Cost of goods sold

1,260

1,190

5.9

1.5

Corporate overheads

2,508

1,726

45.3

3.0

Total operating costs

82,926

78,376

5.8

100.0

Emirates Financial and Operational Performance

Year Ended

Passengers
Cargo carried
Flown (thousand) (thousand)

Turnover
(AEDm)

Expenditure
(AEDm)

Net
Profit(+)/Loss(-)
(AEDm)

31 March 1998

3,683.4

200.1

4,089.1

3,826.7

(+)262.413

31 March 1999

4,252.7

214.2

4,442.9

4,130.2

(+)312.959

31 March 2000

4,775.4

269.9

5,113.8

4,812.9

(+)300.900

31 March 2001

5,719

335

6,359

5,693

(+)666

31 March 2002

6,765

401

7,137

6,511

(+)626

31 March 2003

8,503

525

9,514

8,513

(+)1,001

31 March 2004

10,441

660

13,116

11,368

(+)1,749

31 March 2005

12,529

838

17,909

15,290

(+)2,619

31 March 2006

14,498

1,019

22,658

20,006

(+)2,652

31 March 2007

17,544

1,156

29,173

25,834

(+)3,339

31 March 2008

21,229

1,282

38,810

34,359

(+)4,451

31 March 2009

22,731

1,408

43,266

40,988

(+)2,278

31 March 2010

27,454

1,580

43,455

39,890

(+)3,565

31 March 2011

31,422

1,767

54,231

48,788

(+)5,443

31 March 2012

33,981

1,796

62,287

60,474

(+)1,813

31 March 2013

39,391

2,086

73,113

70,274

(+)2,839

31 March 2014

44,537

2,250

82,636

79,382

(+)3,254

MARKET SHARE

EMIRATES AIRLINES FORECAST