Research Korner: Marketing Papers

Airline Marketing of Air Canada

Table of 	Content 	 	 TOC \o "1-3" \h \z 	 	 	1      	Executive Summary. 	PAGEREF _Toc50826264 \h 3 	 	 	 	2      	Introduction. 	PAGEREF _Toc50826265 \h 3 	 	 	 	3      	Air Canada. 	PAGEREF _Toc50826266 \h 3 	 	 	 	3.1            	Introduction. 	PAGEREF _Toc50826267 \h 3 	 	 	 	3.1.1            	Fleet 	PAGEREF _Toc50826268 \h 4 	 	 	 	3.1.2            	Route Network. 	PAGEREF _Toc50826269 \h 4 	 	 	 	3.1.3            	Service. 	PAGEREF _Toc50826270 \h 5 	 	 	 	3.1.4            	Air Canada’s Subsidiaries. 	PAGEREF _Toc50826271 \h 6 	 	 	 	3.2            	Operating Performance and Financial Status. 	PAGEREF _Toc50826272 \h 6 	 	 	 	3.2.1            	Canada Domestic. 	PAGEREF _Toc50826273 \h 7 	 	 	 	3.2.2            	Canada-U.S. Trans-border. 	PAGEREF _Toc50826274 \h 7 	 	 	 	3.2.3            	Other International 	PAGEREF _Toc50826275 \h 8 	 	 	 	3.2.4            	Cargo. 	PAGEREF _Toc50826276 \h 8 	 	 	 	4      	Environment 	PAGEREF _Toc50826277 \h 9 	 	 	 	4.1            	Market 	PAGEREF _Toc50826278 \h 9 	 	 	 	4.2            	Profitability. 	PAGEREF _Toc50826279 \h 10 	 	 	 	4.3            	Industry Outlook. 	PAGEREF _Toc50826280 \h 11 	 	 	 	5      	SWOT Analysis. 	PAGEREF _Toc50826281 \h 11 	 	 	 	5.1            	Strength. 	PAGEREF _Toc50826282 \h 11 	 	 	 	5.1.1            	Network. 	PAGEREF _Toc50826283 \h 11 	 	 	 	5.1.2            	National Carrier. 	PAGEREF _Toc50826284 \h 12 	 	 	 	5.2            	Weakness. 	PAGEREF _Toc50826285 \h 12 	 	 	 	5.2.1            	High Personnel Cost 	PAGEREF _Toc50826286 \h 12 	 	 	 	5.2.2            	Fleet Arrangement and Aircraft Dispatch. 	PAGEREF _Toc50826287 \h 12 	 	 	 	5.2.3            	Geographic Location. 	PAGEREF _Toc50826288 \h 13 	 	 	 	5.3            	Opportunity. 	PAGEREF _Toc50826289 \h 13 	 	 	 	5.3.1            	Asia-Pacific Region. 	PAGEREF _Toc50826290 \h 14 	 	 	 	5.3.2            	Cargo. 	PAGEREF _Toc50826291 \h 14 	 	 	 	5.3.3            	Low Price No-Frill Market 	PAGEREF _Toc50826292 \h 14 	 	 	 	5.4            	Threat 	PAGEREF _Toc50826293 \h 15 	 	 	 	5.4.1            	Competition. 	PAGEREF _Toc50826294 \h 15 	 	 	 	5.4.2            	High Cost 	PAGEREF _Toc50826295 \h 15 	 	 	 	5.4.3            	Fleet Arrangement 	PAGEREF _Toc50826296 \h 15 	 	 	 	5.4.4            	Oversized Organization. 	PAGEREF _Toc50826297 \h 15 	 	 	 	6      	Three Year Strategic Plan. 	PAGEREF _Toc50826298 \h 16 	 	 	 	6.1            	Marketing Planning. 	PAGEREF _Toc50826299 \h 16 	 	 	 	6.1.1            	North American Market 	PAGEREF _Toc50826300 \h 16 	 	 	 	6.1.2            	International Market 	PAGEREF _Toc50826301 \h 17 	 	 	 	6.1.3            	Cargo. 	PAGEREF _Toc50826302 \h 17 	 	 	 	6.2            	Cost Reduction. 	PAGEREF _Toc50826303 \h 17 	 	 	 	6.3            	Organization Restructuring. 	PAGEREF _Toc50826304 \h 17 	 	 	 	7      	Conclusion. 	PAGEREF _Toc50826305 \h 17 	 	 	 	8      	Reference. 	PAGEREF _Toc50826306 \h 17 	  	1          	Executive 	Summary 	 	According to IATA’s (International Air 	Transport Association) report the total numbers of distance flown, 	passengers carried, freight tons carried and the revenue of world airlines 	have steadily increased in the past decade yet the yields have a trend of 	shrink since 2001. It may be the reasons of the macro economy of the world 	and the impact of 911 to whole aviation industry. No matter whatever the 	reason might be, it obviously demonstrates what worldwide airlines facing 	now: competition, uncertainty and shrinking profit. 	 	The emergences of low cost, no-frills 	airlines and their successes point out a possible course to airline 	operators; such as Easy Jet in Europe, West Jet in Canada and Southwest 	Airlines in the U.S. for instance. These low cost airlines and their 	marketing strategies have successfully competed with their rivals in intense 	competitions and achieved admirable financial reports. 	 	Low cost, no-frills type operations 	will be a new model to airline business, especially in those areas with high 	competition, de-regulatory environment and anti-trust implications like 	North America and West Europe markets for example. Full service airlines 	with a broad range of service span and higher expenses are getting more 	difficulties to survive in those markets. SARS, 911, economic slump have 	worsen the situation even more but made low-cost airlines more striking. 	Elements in airline marketing are seen and well practiced in low cost 	operations. Networking, pricing, product and distribution are four major 	pillars of low-cost type operators. Aviation macro-environment, low cost 	operations will be discussed and a 3-year marketing plan will be depicted 	based on the environmental influences and low-cost concepts. 	2          	Introduction 	 	This is an application report 	assignment of AERO2174 Airline Marketing. Air Canada is the research object 	in this report. The market environment, airline performance, market forecast 	are the main areas to look at and a SWOT (strength, weakness, opportunity, 	threat) analysis is used to summarize this topic. A 3-year market plan is 	constructed based on the analysis for Air Canada as its future marketing 	strategy and an action plan is designed to carry it out; measures and 	benchmarks are included to check the achievement of the plan. 	3          	Air Canada 	3.1         	Introduction 	 	Air Canada was established in 1937 	under the name of Trans-Canada Airlines (TCA). By 1964 TCA had become 	Canada’s largest and national airline and changed its name to Air Canada 	(AC). Air Canada was fully privatized in 1989; and it merged Canadian 	Airlines International, the second largest airline in Canada. AC employs 	approximately 40,000 people worldwide and is a full service, top tier 	carrier and the 10th largest airline in the world today. 	3.1.1      	Fleet 	 	AC has 330 aircraft in service now. 	The aircraft type and number are shown as table 1 below. 	 		 			 				 				 				Wide-body jets 				 				 				   				 				 				Narrow-body jets 				 			 			 				 				 				6 				 				 				Boeing 747s 				 				 				47 				 				 				Airbus A319s 			 			 				 				 				47 				 				 				Boeing 767s 				 				 				51 				 				 				Airbus A320s 			 			 				 				 				9 				 				 				Airbus A340-300s 				 				 				13 				 				 				Airbus A321s 			 			 				 				 				8 				 				 				Airbus A330-300s 				 				 				24 				 				 				Boeing 737s 			 			 				 				 				  				 				 				25 				 				 				Canadair Regional 				Jets 			 			 				 				 				70 				 				 				Total 				 				 				160 				 				 				Total 			 			 				 				 				 				* Including the Air Canada Jazz fleet of 100 aircraft. 			 		 	 	 	Table 1: Air Canada’s fleet.     	                     Source: Air Canada website 	3.1.2      	Route Network 	 	AC has direct service to 22 domestic 	cities, 33 U.S. destinations and 51 cities in Europe, Asia, Australia, 	Caribbean region and South America. AC is also a member of Star Alliance, an 	airline alliance consisting of Lufthansa, SAS, Thai Airways International, 	United Airlines, VARIG, Air New Zealand, All Nippon Airways, Austrian 	Airlines Group, Singapore Airlines, Mexicana, bmi British midland, Asiana 	Airlines and Spanair, provides extensive global network and aggrandized 	services to 700 airports in 128 countries. Following 3 figures illustrate 	AC’s global, U.S. and domestic network. 	 	Figure 1: Air Canada’s 	Worldwide 	Network.                                                                 	Source: Air Canada website 	 	Figure 2: Air Canada’s 	U.S. 	Network.                                                                           	Source: Air Canada website 	 	Figure 3: Air Canada’s 	Domestic Network.                                                       	           Source: Air Canada website 	3.1.3      	Service 	 	Air Canada has been recognized as a 	global leader in air transportation and ranked as the safest airline in the 	world. In 2002, AC was voted the best airline in North America and its best 	frequent flyer program, Aeroplane, the best in the world. 	 	AC provides a newly designed first 	class service, International Executive Class, comfort, elegance and 	consideration with business price. 	 	AC is a full service, top tier 	airline. It offers add-value services such as: 	 	 	W   	Personalized Concierge service 	to Executive First and Aeroplane Super Elite customers. 	 	 	W   	Maple Leaf Lounge available to 	Executive First and Executive Class ticket holders, Aeroplane Super Elite 	and Elite members, Star Alliance Gold cardholders and Diners/enRoute Maple 	Leaf Club cardholders. The lounges offer a selection of newspapers, 	magazines as well as complimentary beverages. State-of-the-art business 	centers offer a complete range of leading-edge business equipment and 	computers, modern furnishings and high-speed Internet accessibility etc. 	 	 	W   	Freshing-up facility in London 	and Vancouver airports for passengers after long flight. These lounges have 	private shower rooms, valet services for clothes pressing and shoe cleaning, 	business centers, dining areas for continental breakfast and quiet, private 	rest areas. 	 	 	W   	Aeroplane, the most popular, 6 	million members, frequent flyer program in Canada. Members can earn miles 	from AC flight service, its regional and worldwide partners and Star 	Alliance carriers. Aeroplane members can also earn miles through extensive 	networks of car rentals, hotels, telephone and credit card companies. 	3.1.4      	Air Canada’s Subsidiaries 	 		 			 			 			Airlines 			 			 			Air Canada Cargo, Tango, Zip, Air Canada Jazz, Air Canada Jetz 		 		 			 			 			Internet Travel Services 			 			 			Destina.ca 		 		 			 			 			Travel Agent 			 			 			  		 		 			 			 			Maintenance Service 			 			 			Air Canada Technical Services 		 		 			 			 			Tour Company 			 			 			Air Canada Vacations 		 	 	 	Table 2: Air Canada 	Family.                             Source: Air Canada website 	 	Table 2 above shows a variety of 	business and service subsidiaries of Air Canada like airlines, travel 	agents, technical service and IT service companies. 	3.2         	Operating 	Performance and Financial Status 	 	AC’s operating performance will be 	viewed into 3 categories: domestic, Canada-U.S. Trans-border and other 	international. 	3.2.1      	Canada Domestic 	 	Before 2001 AC enjoyed continuous and 	progressive growths in domestic sector. However, after the 911 event AC 	suffered, like all other rivals in North America, a loss of passengers due 	to the fears of flying. The weak economy and war in Iraq also delayed the 	recovery. 	 	  	 	 	 	Figure 4: Domestic Passenger 	Revenue.             Source: AC website 	 	Figure 4 above shows a flat increase 	in AC’s domestic operation. 	3.2.2      	Canada-U.S. Trans-border 	 	 	 	Likewise, AC’s Canada-U.S. trans-border was affected more 	severely from the 911 event. It has been declined 8% from 2001 as shown in 	figure 5 below. Increased competition and harsh environment make this sector 	harder to recover and back to before 2001 level. 	  	 	Figure 5: Canada-U.S. Trans-border 	Passenger Revenue.        Source: AC website   	  	  	  	  	  	  	3.2.3      	Other International 	 	 	 	Other international routes comprising trans-Atlantic, 	trans-Pacific and Caribbean enjoyed strong growth because of demand and 	yield increasing even with the same disadvantageous factors in other two 	sectors. 	  	 	Figure 6: Other International 	Passenger Revenue.    Source: AC website 	 	Figure 6 above points out the strong 	growth of other international destinations in spite of the slump of North 	America market. 	  	  	  	  	  	  	  	3.2.4      	Cargo 	 	Cargo operation and revenue seemed not 	affected by 911 and economic difficulties at all. It enjoyed strong growth 	in 2001, especially in the Asia-Pacific region notwithstanding a slight 	decline in the domestic market. Figure 7 below illustrates the cargo 	operations of 2000 and 2001. 	 	 	 	Figure 7: Cargo 	Revenue.                                    Source: AC website 	  	  	  	  	  	  	  	  	 	To summarize all, AC’s recovery in 	some specific region is not powerful enough to offset the loss in others. 	Shrinking revenues and expanding costs, mainly due to the rising insurance 	fee and fuel price, made Air Canada lost 1,315 and 828 millions in 2001 and 	2002 respectively. Figure 8 below demonstrates the income (loss) of AC from 	1998 to 2002.   	 	 	 	Figure 8: AC’s Income 1998-2002.                     	Source: AC website 	  	  	  	  	  	  	  	  	  	 	Air Canada obtained an order from the 	“Ontario Superior Court of Justice” on Apr. 1st 2003, which 	providing creditor protection under the “Companies’ Creditors Agreement Act” 	(CCAA). Under current situation, Air Canada’s future and outlook will be 	depending and determined by the CCAA and the restructuring plan. At this 	crucial moment, the success or failure of AC transforming to a leaner, lower 	cost, more efficient airline will decide AC’s tomorrow. 	4          	Environment 	4.1         	Market 	 	 	According to IATA (International Air 	Transport Association) statistics the worldwide passenger traffic and 	airline industry had a consistent growth of approximately 6 to 8 percent 	over the last three decades regardless economic cycles. The booming markets 	in Asia and the Middle East have been the leaders of international airline 	business even after the turmoil of 911 and SARS. These two regions are also 	forecasted to maintain high growth in the future 10 years. Figure 9 below 	demonstrates the average growth of the past and figure 10 illustrates the 	traffic trend categorized by regions. 	 	 	 	Figure 9: Passenger Traffic 	Growth           Source: ICAO website 	 	 	 	Figure 10: Market Trend By Region, 	2002              Source:IATA 	 	Contrastingly, regions like Europe and 	North America however suffered a business decline from 2001, and these two 	areas are not forecasted to revive very soon due to strong competition and 	the shadow of war and dispute. 	4.2         	Profitability 	 	Figure 11 and figure 12 below show a 	tendency of shrinking profit and increasing cost observed from IATA’s 	analyses too. Again it is because of the increased competition and insurance 	expenses after 911 and the uncertainty of its repercussions. Airlines are 	becoming more sensitive to international affairs and geopolitical events, 	which augments the difficulty of planning and lessening yields. 	 	 	 	Figure 11: Airlines’ 	Profitability               Source: IATA website 	 	 	 	Figure 12: Airlines’ 	Profitability                             Source: IATA   	4.3         	Industry Outlook 	 	Since 2001, airline industry has 	suffered from weak economy, excess capacity, less demand and lower fares 	from competition. Increasing security measures, insurance fees and high fuel 	prices etc. lead to inevitable costs augmentation as well. The future of 	airline industry remains uncertain resulting from the concerns over security 	and international conflicts and disputes. Several major North American 	airlines commenced bankruptcy protection in 2002. To the North American 	market, adverse conditions and unexpected events are still looming in the 	future. 	5          	SWOT Analyses 	 	SWOT (Strength, Weakness, Opportunity 	and Threat) model is an analytic tool for strategic-planning and 	decision-making. It helps managers to review current environment where 	organizations existing and self-conditions thus outside opportunities or 	threats can be identified and internal characteristics can be examined. We 	would use SWOT model to analyze Air Canada’s case as the following. 	5.1         	Strength 	 	Air Canada’s strength would be focused 	on the domestic market and the majority of Canadian public traveling in and 	out of Canada. AC is the national carrier and it would be Canadians’ first 	choice provided other considerations are same. Flying the aircraft carrying 	a logo of maple leaf, Canada’s national icon, and national flag would make 	all Canadians feel proud and home alike. 	 	In addition, the domestic market is 	dominated by AC as well due to its scale and almost monopolized routes 	structure in Canada. Canada’s small population scattering over such vast 	continent makes airlines hard to survive and new joiners higher financial 	entry qualifications to compete. This will prevent new airlines from 	entering into Canada’s relatively small market. AC’s strong points include: 	5.1.1      	Network 	 	Compared with other competitors, AC’s 	service network may be the most valuable and powerful strength over other 	rivals. AC has a full service network to Canada domestic and international 	destinations. Besides, AC has many regional partners or subsidiary airlines 	in the domestic market to form an integrated service network. Plus the 	membership of Star Alliance, AC can provide a worldwide network to 	passengers through other alliance members. 	5.1.2      	National Carrier 	 	To be the biggest, longest and 	full-scale-service airline in Canada, AC has become Canada’s national 	symbol. It would be Canadians’ first selection to fly with if fairs are 	reasonable. This would make AC more advantageous over other foreign 	competitors. 	5.2         	Weakness 	5.2.1      	High Personnel Cost 	 	 	 	Perhaps AC’s weakness comes from too much support from 	the government, which makes AC rigid, inefficient, over sized and less 	competitive. From figure 13 below we can see that personnel cost (salaries, 	wages and benefits) counts up to 31% of AC’s total cost. It is a huge 	portion! 	  	 	Figure 13: AC’s 	Cost                                           Source: AC website 	 	Unionized employees such as pilots, 	flight attendants and mechanics make AC bearing heavy personnel burdens of 	salaries, wages, benefits and pensions. High personnel expenses compel AC a 	high cost airline, which would be a serious problem from now on. 	  	  	  	  	  	  	  	  	5.2.2      	Fleet Arrangement and Aircraft Dispatch 	 	Many of AC’s airplanes are wide-body 	ones. These wide-body airplanes play a major role in domestic and North 	American markets. With the horrible business depression after 911, war and 	SARS adverseness load factors have been decreased to a record low. Many 	seats are empty and operating performance deteriorated further as passengers 	scare of flight; thus the revenue becomes less notwithstanding the operating 	cost remains the same. It turns into negative numbers on the financial 	report eventually. Nevertheless, costs and losses could be minimized and 	mitigated if flights are consolidated on some low load factor routes, or a 	better usage and management of smaller, narrow-body airplanes. However, this 	cannot be done immediately. It needs a deliberated plan for future airplane 	purchase and fleet designs. Current fleet and airplane types in AC may not 	be suitable when business goes down or any similar crises encountered. 	5.2.3      	Geographic Location 	 	Canada shares the longest peaceable 	border in the world with her neighbour in the south-U.S.A. Yet Canada’s 	population, economic scale and business energy are not comparable with the 	U.S. Locating so closely to the world’s super power means advantageous as 	well as threatened. More or less, Canada’s importance and role to the world 	is diluted by the existence of the U.S. from the south. In addition, any 	economic chills or industrial occurrences will affect Canada’s performance 	too. 911’s impact is the best example, which explains the effects of the 	close tie between Canada and the U.S. and the harm of over-dependence. The 	unilateralism and new conservatism emerge in U.S. foreign policies towards 	the world would, and have, drawn unpredictable outcomes to U.S. itself 	socially, economically and psychologically and surely hammer Canada too. 	5.3         	Opportunity 	 	 	 	There still are some opportunities although the 	environment is not friendly for airline industry, especially the North 	American market. Yet other international markets still have positive 	growths. Asia-Pacific, West Europe, South America and Caribbean regions 	experienced strong revenue growth in 2002. Figure 10 above reveals the 	potential markets waiting to be explored, in which Asia-Pacific, Latin 	America and Middle East would be most possible opportunities to AC. 	  	 	Figure 14: Passenger Revenue Change By 	Region.  Source: AC website 	 	Figure 14 above shows the passenger 	revenue changes classified by region. Non-U.S. international market revenues 	bounced the highest number from 2001. It is worth to give it a shot!            5.3.1      Asia-Pacific Region IATA has forecasted that the Asia-Pacific region would be the fastest growing market in the next 15 to 20 years. Areas like Mainland China, India and South East Asia are future’s locomotives of world economy. Canada just happens to receive huge numbers of immigrants from these areas. The economic ties, passenger traffic and cargo transportation between Canada and these areas are promising opportunities to Air Canada. The biggest west coast city, Vancouver, would become the transportation hub to the Asia-Pacific region and the demand increasing would be foreseen as well. 5.3.2      Cargo Cargo operation has always been lucrative and stable relatively regardless of external interferences. AC still had cargo revenue growths in 2001 and 2002 in spite of passenger business drop then, for example. IATA also predicts the world’s freight traffic average growth of 5.3% from 2002 to 2006 as figure 15 shows. The highest rate of growth was forecasted to be within Asia and on Trans-Pacific routes. Again, it points out potential market and opportunities to Air Canada. Figure 15: IATA’s Freight Forecast.                               Source: IATA 5.3.3      Low Price No-Frill Market Low fare, no-frill operations may be another option for Air Canada. There are several successful examples of this kind of operation around the world, for instance, Easy Jet in Europe, VirginBlue in Australia, Southwest Air in the U.S. and WestJet in Canada. The secret of the success is very low cost, compared to full-service, top-tier airlines. By the utilizations of IT, Internet technology, spoke-to-spoke hub operation, appropriate airplane type (usually narrow-body, short to medium range aircraft), flexible revenue and price management and slim organization make this type of airlines profitable, pliable and very competitive in regional markets. They can lower the ticket prices to a level that full-service airlines cannot possibly offer. North America’s vast continent and scattered metropolises in Canada and the U.S., with ranges vary from 2 to 6 flight hours, is suitable for this type of operation. 5.4         Threat Air Canada is facing imminent threats under present conditions, both from internal financial pressure and externally industrial environment. 5.4.1      Competition North America is a totally deregulated, liberalized and free competitive market. Canada and the U.S. also impose anti-trust regulations on enterprises to protect consumers’ interests. Airlines cannot practice any forms of associated, consolidated or pre-agreed behaviour to manipulate, control or monopolize the market. Therefore, competition is fierce in this free market as well as those areas and countries with similar “open sky” agreements and regulations. AC has difficulties to compete with those lower cost airlines from Asia, Europe and the U.S. to win the market shares. 5.4.2      High Cost AC’s operating cost is high, especially expenses in salaries, benefits and pensions. Unionized work force makes AC strenuous to downsize the organization and reduce personnel expenses. For example, employee benefits expenses rose $80 million or 15%, and future benefits rose $44 million in 2001 due to higher pensions and increased health care costs. Workers’ compensation liability rose $23 million in 2002 as well. With lessening revenues but increasing cost, AC is encountering tremendous challenges ahead. 5.4.3      Fleet Arrangement As mentioned before, AC needs to adjust its fleet and aircraft type in order to meet the requirements of load factor and efficient aircraft usages. Fly a wide-body airplane to the less-demanded routes will not do any good to the company but decreases the load factor and economic efficiency instead under recent turbulence. However, most AC’s fleets are wide-body airplanes excluding its subsidiary airlines. This would put AC into an adverse position during demand and business downed. 5.4.4      Oversized Organization The organization has been expanded and oversized after Air Canada acquired Canadian Airlines International in 2000. Yet the operating performance has not been multiplied after the merge. Moreover, AC either had to pay extra compensations to layoff Canadian Air employees or kept their positions preserved to prevent labour disputes. This causes AC overweight and carrying heavy cost loads. 6          Three Year Strategic Plan To cope with the business crisis and save Air Canada from bankruptcy, a strategic plan is needed to deal with: W   Market Planning W   Cost Reduction W   Organization Restructuring These three elements are actually aiming at the same target and strive for the same goal: redefine the airline market after those strikes and reduce operating costs to compete. 6.1         Marketing Planning Airline business has been totally changed after Sep 11, 2001. Passengers become suspicious to take air travel, depressed economy makes passengers more sensitive to prices and reduces business travellers, and, minute and complicated security measures are time and patience consuming to passengers. Airlines cannot do much about the security examination procedures because governments have managed most examination and check jobs since 911. Therefore, airlines can only lower their fairs and initiate market incentives and stimulants to attract more passengers, and persuade general public that airplane still is the safest, fastest and most comfortable vehicle for transportation. Low –cost and no-frill airlines have been popular among the public, especially during market recession periods. This type of airline is fitting in deregulated, liberalized and high competition markets such as North America and Europe. The operating cost is at least 1/3 lower than full-service airlines. Low-cost airlines can use flexible and low fair pricing strategies to fill up every seat. They also encourage passengers utilize direct Internet access for seat booking, ticket purchasing and other services requests. Hub-to-hub, spoke-to-spoke type routing structures provide airlines better airplane usage and enhance dispatch efficiency. All these operating features can reduce the costs further thus ticket prices can be lowered more. 6.1.1      North American Market At this crucial moment, Air Canada should transform its market targets to and focus on low-cost, no-frill sector to vie the market share particularly in the North America. Actually Air Canada has noticed the popularity of low-cost airlines and launched no-frill subsidiary ones like Tango, Jazz, Air Canada Jets, and Zip. Air Canada should continue to enhance this low-cost airline operations and work on prices reducing. 6.1.2      International Market Air Canada should grasp the growth opportunity and explore the Asian market, and introduce more flights and services to the booming areas such as China, South East Asia, Japan, India and Korea. AC also can take the advantages of the large number of Asian immigrants and their ties in the region to expand its business. 6.1.3      Cargo Cargo operations can be gradually shifted from the weak North American area to the promising Asia region. Based on previous statistics and future forecasts from IATA, Asia has the highest demands and growth rate in the world. This giant economic plate must not be ignored at all. 6.2         Cost Reduction 6.3         Organization Restructuring 7          Conclusion 8          Reference Air Canada, <http://www.aircanada.ca/>, July 2002 Accessed Airline Business Magazine, <http://www.airlinebusiness.com/>, July 2003 Accessed ICAO, <http://www.icao.int/>, Aug 2003 Accessed IATA, <http://www.iata.org/index.htm>, Aug 2003 Accessed

Airline Marketing of Air Canada

Table of Content TOC \o "1-3" \h \z 1 Executive Summary . PAGEREF _Toc50826264 \h 3 2 ...

The Marketing Report Of Hong Kong and A Marketing Report Of Hong Kong

Part 1: Marketing Report   Introduction             With the advent of information technology and other kinds of technology, different industries and companies have pave the way for the creation and development of new electronic gadgets and other technological gadgets. With the awareness of the consumer with the latest designs and products, different industries are now joining different exhibits to showcase their latest inventions and discoveries.  Some countries have been able to use this kind of events to help their tourism department to attract more tourists.             In Hong Kong, tourism is known to be the number one sources of income of the entire nation.   This is because of different theme parks, events, festivals, and shopping malls in the country. Primarily, the main goal of this report is to provide a marketing approach for specific events in Hong Kong. In this report, the author will give emphasis on sporting event, specifically the Hong Kong Electronic Fair events in the country.             Type of Event             The event that will be given emphasis is the Hong Kong Electronics Fair. This event was organized by HK Trade Development Council and being held at Hong Kong Convention and Exhibition Centre. This event aims on enabling different electronic industries to showcase their latest products and designs and to make more people be aware of the existence of these innovative products.              Since Hong Kong has long been associated with the electronics business as well as the city continuous to be a leading light in this kind of industry, the Hong Kong government have established this event. The event includes all kinds of assemblies, components, electronic production as well as display technologies.  Hong Kong Electronics Fair is conducted in different seasons like spring and Autumn Seasons. The aim is to help various industries all over the world to reach more target market by introducing their products and services at the fair.             In this event, the section of Product Demo & Launch Pad at the fair is being set to enable the exhibitors to market their latest products or services. The Hong Kong electronic fair is a very distinctive fair which attracts both industries and customers of electronic gadgets alike.   Age of the Event The Hong Kong Trade Development Council has been established in 1966 and since then, the organisation has been able to provide different events to gather industries and customers to see the latest inventions in terms of electronic products and other relevant products and designs. The event has been running for more than a decade and the event is being held for spring or autumn seasons. The 2008 Hong Kong electronic Fair will be the 28th electronic fair held and is expected to attract more industries and customers from various parts of the world.             Target Market             The target market of the organization focuses on local and international visitors who are enthusiasts of the latest electronic products or services. The event has been the largest electronics fair all over Asia and the third largest in the global market. The attendance for the event as said to be steadily increasing annually reaching the capacity of the host of the event. The target market includes industries who will introduce or launch new and innovative products and designs and also customers who are attracted by the products presented.   Market Statistics             The estimated event goer during the exhibits are said to increase every edition.  Every year the event has been able to attract for exhibitors and also more markets from different parts of the world. Accordingly, the market for electronic consumers in the country has been very vibrant. With the mobile subscriber penetration rate closing to 160% as well as the people amenable for adopting the latest technologies, Hong Kong has become a good testing venue for the latest IT innovations. Furthermore, the 7 million people who live in the country also have more than 28 million visitors (according to the last years statistics) and most of these tourists come to shop for the very latest and high quality electronic products and other technologies (Info, 2008).      Table 1 29th Edition Statistical Data : Year No. of Exhibitors Gross Area 2008 2,610 65,117 sq. m.   Pest Analysis             Hong Kong Electronics Fairs will also be analysed through the use of PEST analysis. o   Political             The first aspect to be considered is the political environment of Hong Kong Electronics Fair which concerns the role of the government and its influence in the event. In addition, this also includes the extent to which the political aspects intervene in the economy. The Hong Kong government has been very supportive with different festivals and event since the government knows the significance of these events to their tourism industry. Hong Kong government believes that these industries will be beneficial for the nations; the Hong Kong government is also open for other possibilities of considering the products of different industries which participated in the events.   Economical             The next aspect to be considered is the economic facto. Accordingly, the amount of economic activity in this kind of environment is extremely an important element for any events like Hong Kong.  Whilst assessing the economic environment in which the Electronics Fair operates. The Hong Kong government tries to terminate the level of economic activity to provide positive and friendly environment for this kind of festivals and events. It can be said that Hong Kong economic situation is strong and stable. With this, the country is able to sustain good relation with different vendors and industries of electronic and technology gadgets in the global market. The economic stability of the region has helped the Hong Kong Electronics Fair to have a good economic performance. o   Socio-Cultural             It can be said that social environment is of great importance when being applied to different organisations, and in this case festivals or events like Electronic Fairs. Hong Kong has been considered as one of the Asian regions which is considered to have a strong market for electronic gadgets technological products, it can be said that the Hong Kong electronics Fair have a greater opportunity to grow even more in the global market. The demographic changes and the psychographics of the global market have open more chances for the electronics and technology industry to achieve its goal and mission. o   Technological             Lastly, technological factor has helped in reducing the barriers of entry for other electronic and technologically associated industries. It has also supplemented in the cost of capital in other regions, to enhance the products shown in Hong Kong electronics fair. Through the use of more advanced and efficient technology, Hong Kong electronics fair have been able to provide innovative products and gadgets to meet the needs of their target market.   Marketing Strategy Positioning As of now, visitors or travellers are not only visiting a certain place or events, simply just for fun. Most of them are looking for excitement, and more importantly learning process and most of them are looking for new products and services that would satisfy their needs.  This is one of the reasons why, more and more countries are trying to be the number one choice of the tourists by providing them with exciting and unique travel experiences. The primary market for the said strategy will be local and international industries who want to show and promote their latest technology and electronic products and tourist who become potential customers for the event. The target market includes those individuals who want to have the latest in the electronic industry parents to see live horse racing events.             The said strategy will focus on attracting more industries to join the Hong Kong electronic Fair events and to attract more tourists to witness the exhibitions during the event.  The said offers and services will get the attention of the target market from the said field. On the other hand, it will also have an influence to those technologically attached individuals. Because it will give them a sense of knowledge regarding on what is latest in the electronic market. Tourists are also welcomed as a target markets especially those who came to see the most innovative products and services.  The said marketing plan will be benefited from the trade sector of the country; furthermore, it will also be benefited from the growing tourism industry of Hong Kong.     Communications Strategy             Communication strategy focuses on the entire relationship aspects of the Hong Kong Electronic fair events towards the target market. This can be done by different communication strategies that will mainly focus on communicating and relating with the electronic and technology fair events. It will be done by series of different communication method such as press, advertisement, website, seminars, and other events that are related to the said aspects. In terms of this approach, the use of Integrated Marketing communication strategy will be considered.             Primarily, the aim of communication strategy gives emphasis on the entire relationship to be build by the product to the target audience (Moschis, 1994) .  The approach that will be considered in this market planning is the integrated marketing communication. IMC is known to be an effective approach for coordination the entire message and media used by an organization to collectively impact its perceived product value (Clowe & Baack 2004). Furthermore, this can be used for generating and sustaining close relationship with the target market by controlling efficiently all the information and message sent to them and by objectively encouraging two-way dialogues with their audience. In this regard, the aim of the IMC is to promote the world smartest beach bag through the use of different promotional aspects and the marketing approach to communicate the message of promoting the products to the target audience mentioned above (Moore and Thorson, 1996).             In this regard, advertisement will be conducted to position the Hong Kong electronics fair events product by different video and visits different venues for actual demonstration on the function and use of the electronic gadgets and other products and this will happen via direct relationship. Moreover, another approach is to use print advertisements through newspapers and magazines related to tourism and travel.  And lastly, the use of the internet will be considered as the best way to communicate and reach more consumers through their website. Sales Strategy             The sales strategy focuses on the direct relationship with the industries and customers who are enthusiastic with the new products and designs for the electronic products. This will be done  by  this will be done by process of offering different packages in order to come up with the demand, desire and budget of the HK Electronics Fair events. In addition to that, it will also be important to have a direct relationship with different trade areas in Hong Kong.   Marketing Budget             The advertisement of the entire project focuses on the TV, Newspaper ads, flyers as well as the Internet. Each TV advertisement causes HK$500 dollars per 30 second ad per station. The newspaper ads cost HK$500 per advertisement; furthermore, the flyers cost HK$100, where in HK$0.10 each (Jacksack 2008). Communication Estimated Quantity Estimated Cost Per Unit Estimated Subtotal Flyers 5,000 HK$0.10 HK$500 Television 10 HK$500 HK$50000 Website 1 HK$350 HK$350 Sponsorship 3 HK$300 HK$900 Total     HK$51750               This communication and marketing budget will focus on the relationship of the organization towards the primary market.   SWOT Analysis The following SWOT analysis captures the key strengths and weaknesses within the Hong Kong, and describes the opportunities and threats facing Hong Kong Electronics Fair   Strengths <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Strong relationships with vendors that offer high-quality and innovative gadgets</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Excellent staff who are highly trained and very customer attentive. </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Great venue for clear and efficient exhibit</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> High customer loyalty among repeat customers and industries who go to the event</li> </ul> Weaknesses <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="line-height: 200%"> Hong Kong electronic fair lacks a clear website that provides the objective of the event </li> <li class="MsoNormal" style="line-height: 200%"> A large marketing budget to develop brand awareness in the area. </li> <li class="MsoNormal" style="line-height: 200%"> The struggle to continually appear to be cutting edge.</li> </ul>   Opportunities <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Growing market in the global market with a significant percentage of the target market still not aware that the event exists </li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Increasing sales opportunities in other multinational industries and brands</li> </ul>   Threats <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> Competition from international trade and fair events. </li> </ul>     Conclusion             Analysis shows that Hong Kong Electronic fair events should be able to use effective and efficient marketing strategy to position them in both the local and global market. Herein, the Hong Kong Trade and Development Council marketing approach will serve as their competitive edge to establish competitive position in the market. Furthermore, it can also be concluded that although the company has some weaknesses, they are able to make it as a potential factor to stay in the competitive market. This marketing plan is a helpful tool for the company to achieve their vision and mission. In order to market the Hong Kong Electronic fair events in Hong Kong, the government should be able to give importance on the value of these events in the entire HK tourism.   Reference Clowe& Baack (2007) integrated advertising, promotion and marketing communications 3rd edition. Pearson Prentice Hall. Moschis, G 1994. Marketing Strategies for the Mature Market. Quorum Books, Westport, CT. Jacksack, S 2008, Setting a Marketing Budget, Score, viewed 18 October 2008, http://www.score.org/m_pr_11.html Kotler et al (2004). Principle of marketing, the European edition. Moore, J & Thorson, E 1996, Integrated Communication: Synergy of Persuasive, Lawrence Erlbaum Associates, Mahwah, NJ.    Part 2: Marketing Report Portfolio of Festival   Summary             Marketing communication is one of the most important elements to generate target audience and to convey information to them. In this report, different events have been considered and analysed their marketing communication approach. The events include Hong Kong Electronics Fair, Hong Kong Rugby Seven, and Singapore Arts Festival. This paper has been able to provide details about marketing communication and how this can help an event to become successful. Analysis of the marketing communication of the three events has been considered and it shows that the three have been able to use different marketing communication approach and have different objectives in doing so. The Hong Kong Electronics fair objective was to attract tourists and electronic and gadget enthusiasts and to provide information and the latest electronic and technological products and services while the Hong Kong Rugby Seven, aims of attracting sports enthusiasts to visit Hong Kong and be part of the exciting tournament.             Singapore Arts festival campaign aims on promoting awareness on the cultural and arts elements of the nation not only in the local but also international level.  By and large, it can be concluded that marketing communication approach is important to convey important message to the people.   Introduction Marketing Communication has always been one of the key points to an enterprise’s success; how the products or services are being portrayed through the ads are very likely to help affect the sales rates. The aims of Marketing Communication are to convince consumers to use their products, to give them an alternative or convince them to change their current products, and to increase the company’s sales profits. Because of this, financial success is the goal of Marketing Communication, and it may be achieved through an equally successful persuasive ads.  According to Shimp (2003), there is ample evidence that the century-long domination in marketing communications by mass media advertising and advertising agencies is coming to an end. Marketing budgets are being shifted away from traditional advertising to behavior-oriented disciplines like consumer promotion, direct marketing, and direct-response advertising. Retailers are gaining strength over manufacturers New media technologies are increasing the fragmentation of media usage. On the other hand, prime-time television, long the main channel for mass campaigns, has had its audience diminish from 90 percent to 68 percent in the last 20 years (Griffin & Mcarthur, 1997). Every company is inevitably cast into the role of communicator and promoter. For most companies, the question is not whether to communicate but rather what to say, to whom, and how often. It has been noted that marketing communication is like a coin which has two sides. The first side of marketing communication is concerned with efficiently and effectively giving information and details about the company and the products or services to a chose market segments. However, in isolation, what to say and to whom this will be told can be nothing more than a risky second-guessing regarding the allegiances and interests of other individuals. The second face of marketing communication is the inquiry. This side of the marketing communication task gives emphasis with learning from other people regarding the values and interests, and eventually relating this to the interests of the personnel working in the organisation. Such process should logically precede the promotion of a specific standpoint in terms of product desirability and relevant consumer satisfaction (Fill, 2002 Eventually, several companies began to go beyond conventional practice and used other promotional specialists to improve and implement their market plans. Primary, the main goal of this report is to compare and analyse the strategic effectiveness of the marketing communications strategy used by different events or festivals in various countries.  For this report, the sport events that will be analysed are the recent Hong Kong Electronics Fair, Hong Kong Rugby Seven, and Singapore Arts Festival. In this report, the marketing communication of each of the events will be given emphasis.   Overview of Marketing Communication It is said that each and every organisation, may it be public, private or non-profit organisation should be able to consider strategic marketing approach so as to ensure competitive position in the marketplace (Moschis, 1994). One of the most important aspects of marketing is marketing communications (See Appendix 1). It is significant because it enables an industry to communicate effectively and efficiently with their target market.  Marketing communications is the term generally preferred to promotions. It is a vital contributor to the satisfaction of customer needs and wants. As such, it is essential that managers have an understanding of the factors that are involved in the development of strategies that enable organizations to communicate with their consumers (Shimp, 2003), their channel participants and with other stakeholders, such that those relationships may be developed over the long term. Every company is inevitably cast into the role of communicator and promoter. For most companies, the question is not whether to communicate but rather what to say, to whom, and how often. It has been noted that marketing communication is like a coin which has two sides. The first side of marketing communication is concerned with efficiently and effectively giving information and details about the company and the products or services to a chose market segments. However, in isolation, what to say and to whom this will be told can be nothing more than a risky second-guessing regarding the allegiances and interests of other individuals. The second face of marketing communication is the inquiry. This side of the marketing communication task gives emphasis with learning from other people regarding the values and interests, and eventually relating this to the interests of the personnel working in the organisation. Such process should logically precede the promotion of a specific standpoint in terms of product desirability and relevant consumer satisfaction (Fill, 2002) The overall result of this effort is intended to be the positioning of the provider as an efficient preferred source of solutions to problems experienced by people as buyers and consumers. This is the managerial aim in managing marketing communication. The challenge is to ensure that expressive communicative activity is clear, consistent, and coherent, while also enabling and facilitating impressive communicative activity that aids judgement and decision-making. Marketing communication is widening in scope to embrace the idea that healthy relationships between customers and suppliers are the basis for the prosperity of each. Expectations are growing for authentic communication as part of a stakeholder relationship based on trust and commitment of core benefits to users and consumers so must be differentiated through benefit augmentation to attract buyer and consumer attention when promoted (Clow & Baack, 2004).   Comparison Analysis Overview of the Electronic Events             Hong Kong Electronics Fair has been conducted to facilitate exhibits of the new electronic and technology products and designs from different industries and multinationals. It caters to the needs of the customers to know the latest and the most innovative products and services a company can offer. Throughout the years, the event was being held and each year new companies are joining the event showing and demonstrating their products and designs at the fair. Since there are more people who are purchasing and utilising electronics, the interest in these products is reflected in the growth of the Hong Kong Electronics Fair. Every year is considered a bigger event, having to expand their venue into the adjacent building so as to accommodate guests, exhibitors and spectators.             In order to attract more vendors and industries to show their new and latest products, the Hong Kong Electronics Fair events facilitators are using an efficient marketing communication.  By implementing integrated communication more effectively, any firm may gain advantage by offering its product or service that is cost effective as compared to other products or service in the market. So the writers or speakers in any business organization may gain competitive advantage over its competitors by using effective business communication techniques as if they are differentiated from their competitors by offering their target market something unique and different that is of more value. So the business communication is more related to the concept of rhetoric which is treated as a discipline that concentrates on effective communication in oral, written and print media that places the audience at the center of communication activity.   Herein, the event is using print advertisements, media and internet advertisement to announce when the event will be held. Through their official websites, people and industries can see the agenda of the event including the schedules.             It can be said that during the fair, most of the exhibitors of the events are using personal selling approach. Sales are an important part of any commercial transaction. The most common approach to personal selling pertains to a systematic process of continuous yet measurable methods in which the person selling describes his offered products or services in such a way that the buyer will be able to visualize how to benefit from the offered products or services in an economic way. Selling is basically a part of the implementation procedures of marketing.  It often forms a particular grouping within a corporate structure, employing independent specialist operatives known as salesmen (Berger, Demsetz & Strahan 1999). The continued interrogation in order to understand a consumer’s goal as well as the establishment of a set of feasible solutions by conveying the necessary information that convinces a buyer to achieve his goal at a reasonable cost is the main responsibility of the sales person. On the other hand, the main objective of professional sales is to be able to know the needs and satisfy the wants of consumers effectively, and therefore convert possible customers into actual and reliable ones. Some of the distinct advantages of personal selling include the immediate access to feedback, the persuasive nature of the endeavours, the option of choosing a target audience for the sales person, and its capability to give detailed information. For some scholars, personal selling is a one to one communication with potential customers of a specific product or services with the intention of making a sale.  In Business to business marketing communication, the concept of personal selling is considered essential. Through the aspect of personal selling, it enables the marketers that the entire campaign element has been integrated in order to achieve the desirable marketing communication objectives. Consumer does not separate or divide advertising, sales promotion, sponsorship and internet as marketing communications techniques. They tend to receive the messages from various sources and build-up either favourable or unfavourable images a certain products or services.  As far as they are concerned, the source of the message is unimportant. What they will be concerned with is the content of the message and to what degree the product promise is actually delivered (Fill & Yeshin, 2001).             In addition, the use of effective communication plays a critical role in the Hong Kong Electronics Fait n in a way that it gives the opportunity for the product to sustain its marketability. The application of integrated marketing tools can enable the sellers or marketers to communicate with the other target segment. For instance because of the increasing popularity of the world wide web, each company that invests in having their own website will have the chance to reach consumers locally and internationally. This means that the reach of the product are also extended and expanded in the global market, through the use of integration of effective marketing communication approach. With this, products of different company in the Hong Kong Electronics Fair will be able to emerge quickly in the marketplace since the tools and approaches of integrated Business to business marketing communication will act as shop window for many businesses today. In addition, through personally selling integrated with it, this will also permit the clients to easily know important information about a specific product and to know the different features a specific product.  In addition, the effective marketing communication is also important in impacting the product since this will served as a marketing communication approach for effectively promoting the new electronic and technology products and services, which will aim to result in a more sales from other distribution channels.                The rationale for choosing this marketing channel is that Integrated marketing communication can help products to meet target consumers worldwide and this could be a great opportunity to be developed and in order for product to be quickly recognized by the target market.     Overview of the Sports Event             Rugby sevens is a variety of rugby union in which football is played with only seven players per side feature instead of the full 15.  The Hong Kong Sevens have been established in 1976. It has been suggested that Rugby Sevens tournament will be logistically more possible and be a better spectacle than a 15-a side tournament. Accordingly, the Hong Kong Sevens Tournament has been noted to have a good history. This is now considered the iRB’s Jewel in the Crow in the series and has been able to grow in popularity with the spectators and players alike. The marketing communication approach of this sporting event aims on telling the importance and the logistical reason for choosing Rugby Sevens tournament.  The marketing communication approach features various promotional activities to reach target audiences from local and global market. They consider media through TV and radio advertisements, print advertisements through sports magazines and newspapers and interactive approach through mobile, online or the internet throught he official website of the Rugby Sevens which is http://www.hksevens.com.             The main goal is to target younger market through high-profile websites like and other social networking sites and the mobile activity. This marketing communication approach has used their official website to promote the tournament all over the world to spectators and players as well.             With the success of the of the Rugby Sevens tournament host in Hong Kong, it can be said that the marketing campaign and communication through the help of their website and other sponsors has been successful and effective. Through the marketing communication strategy of Hong Kong Rugby Sevens they are able to relay the messages to the public. Accordingly, it can be said that HK Rugby Sevens has been able to use integrated marketing communication approach to reach target audiences in both local and global market. The IMC approach has been effective for campaigning Hong Kong Rugby Sevens as it helps in identifying the most useful and appropriate methods in communicating and establishing good customer relations, including good relationships with stakeholders like the sponsors of the Hong Kong Rugby Sevens like major brands such as Adidas and other brands. By and large, it can be said that Hong Kong Rugby Sevens has been successful in generating income and turnover through their comprehensive marketing communication approach.   Overview of the Cultural Events             The cultural event that will be given attention in this report is Singapore Arts Festival. The Singapore Arts Festival is considered as focus programmes for the Singaporean culture so as to provide a broad range of art programmes from all different parts of the world.  This festival has been an essential symbol for the Singaporean culture.  The festival has been able to introduce various entertaining and exciting programmes locally, nationally and internationally produces to the people of Singaporean, and it has been able to stimulate the interest of the people in terms of arts to raise the level of appreciation.             The Singapore Arts Festival started in 1977 as a national arts festival that celebrates local arts activity of the country’s diverse communities. Throughout the years, Singapore Arts Festival has been able to play a catalytic and symbiotic role in the development for the cultural and artistic life of the nation.  This even has helped in transforming the city’s cultural landscape, turning into one of the major cultural hub today in the entire Asia. The event has impacted the work of artists and creates a growing public demand for the arts, establishing new cultural platforms, events as well as the movements which help in underpinning the lively cultural scene in present Singapore. Today the Singapore Arts festival has been described by an innovative and progressive spirits, committed to commissioning new art works by primarily Asian and Singaporean artists inverting in works which bridges cultures, disciplines, and geographical boundaries which explores contemporary and modern issues related to memory, history, migration and urban living; and discovering the existence and promising artists and encouraging both local and international artistic collaborations and exchanges.             In addition Singaporean Arts Festival, also give emphasis on an extensive programme of free outdoor performances in the entire island to bring the arts tit the doorsteps of Singaporeans. The festival has the ability to the create social network that conveys the process of festival collaborations and cultural dialogues. Accordingly, the marketing communication of the Singapore Arts festival promotes and raises the cultural consciousness of the people from the local and the international market. Aside from this, Singapore Arts Festival also utilise celebrity endorsements by considering famous Artists to participate in the Singapore Arts Festival events. Through the use of an effective marketing communication approach by the Singapore Arts festival, it gives the opportunity to the festival to sustain its marketability and its visibility in the print and media advertisements and also interactive ads through their website. The application of this marketing communication approach enables the Singapore Arts festival to communicate with the other target segment. For instance because of the increasing popularity of the World Wide Web, Singapore Arts Festival have the chance to reach consumers locally and internationally. This means that the reach of the festival are also extended and expanded in the global market through the use of integrated marketing communication.   Conclusion Marketing communication approach is said to have many benefits among different products, organizations, events. Through an effective communication, the message is being relayed to the target audience effectively. Furthermore, this will also permit the clients to easily determine the essential information about the events may it be sporting, community and cultural events.  Analysis shows that each of these events has been able to use unique but effective marketing communication approach. The three events: Hong Kong Electronics Fair, Hong Kong Rugby Sevens and Singapore Arts Festivals have used integrated marketing communication approach to market the events. The three has been able to have successful marketing campaign because of their comprehensive marketing communication approach. Different evernts have decided to set aside traditional approaches and have come to accept the innovative perspectives in promoting their products and services to their target market. Herein, marketing concepts has exceeded from the connotation of being an expense to being a part of the industry’s essential investment; from being product-focused to becoming customer oriented.  The context of both marketing and advertising can be considered as investment because of the potential profit that may emerge upon implementation of such strategies.  Furthermore, instead of emphasizing product attributes, many firms have realized that it is the customer is more important to be given attention for every marketing strategy since the customer are the recipient and the ultimate assessor of the products and services the company provides.  In order to do so, many marketers are able to consider the use of Integrated Marketing Communication (IMC).  By and large, it can be said that the new communication model of integrating personal selling can help different industries to significantly improve marketing communication and help different events and festivals meet their short-term and long-term business objectives and establish stronger relationships with all of their target audiences.     Reference   Berger, A.N., R.S. Demsetz and P.E. Strahan (1999), ‘The consolidation of the financial services industry: causes, consequences, and implications for the future’, Journal of Banking and Finance, 23, 135-194.   Borden, NH 1965, “The Concept of the Marketing Mix,” in Schwartz, G., (Ed.), Science in Marketing, New York: John Willey and Sons, pp. 386-397.   Clow, KE & Baack, D 2004, Integrated advertising, promotion, &marketing communications, 2nd edn, Prentice Hall, Upper Saddle River, NJ   Fill, C and Yeshin T 2001, The Official CIM Course book: Integrated Marketing Communications, Butterworth-Heinemann, Oxford. Fill, C 2002, Marketing Communications: Contexts, Strategies and Applications e. Harlow: Pearson Education. Harris, A, 2006, 'Sporting chance!', Coventry Evening Telegraph (England), Shimp, TA 2000, Advertising Promotion: Supplemental Aspects of Integrated Marketing Communications, 5th edn, The Dryden Press, Harcourt College Publishers, Fort Worth, TX. Shimp, TA 2002, Advertising, Promotional and Supplemental Aspects of Integrated Marketing Communications. The Dryden Press, Harcourt College Publishers, Fort Worth, TX.               Appendices Appendix 1                     Marketing Communication Process Source: Borden, 1965.

The Marketing Report Of Hong Kong and A Marketing Report Of Hong Kong

Part 1: Marketing Report Introduction With the advent of information technology and other kinds of technology, differ...