Marketing Campaign to increase sales
SIA communicate effectively with customers on social network and extending the relationship by building the SIA brand. SIA use social media accounts in many ways, including to provide customer service, offer updates on latest promotions and sales, and give customers a fun glance at what is happening in SIA. Currently, social media Facebook pages in seven different languages and propose to increase more languages to get more customer attention from other countries.
Many airlines are trying non-traditional advertising methods to directly target the daily lives of customers. We suggest, SIA can have “SIA Lounges” at festivals or community events. These innovative advertising tactics work to further develop the trademark. Instead of simply focusing marketing campaigns to the frequent flyers, these methods reach out the larger public audience, developing an auspicious brand image with people who may not already have a preferred airline.
SIA Kris flyer program allows the loyalty flyer to reward point for flights and other travel reward program. We propose for SIA loyalty customer to get the complimentary inflight Wi-Fi for long haul trip. Another proposal is if Economy class seats are converting into full flat beds, it will be more comfortable. On the other hand, Loyalty customer can able to buy for Economy Class’s first and second seat with standard price and third seat will be half price in order to get the more comfortable feeling.
The business partnership extends across areas such as flight ticket sales, loyalty programs, marketing initiatives, could service payments and logistics. By partnering with Alibaba, which enabled shared access to the more than 600mil mobile users actively utilizing on Alibaba’s retail marketplaces in China, will unlock great benefits for customers via the retail and travel value chains. SIA and Alibaba Group will gain customer insights for the benefit of the customers in one of the world’s fastest growing travel markets.
We propose to sell the tickets with Singapore attraction tickets (Example: USS, Adventure Cove, Singapore eye museum, etc.) especially for those who are visiting to Singapore.
Maslow’s hierarchy of needs
SIA provide all the physiological needs for its passenger by providing clean environment, food and beverage, etc.
Safety of SIA’s passengers are top priority and ensure all the best practice are implemented and enforced in all SIA flights.
Needs for love, affection and belongingness
SIA care their clients as their own family and provide loyalty service.
Needs for esteem
SIA is one of the top airline in the world and making sure our client is always proud to be boarded on SIA fleet.
Needs for self-actualization
You decide your destination and SIA take care the rest to fulfil your dream destination with very pleasurable experiences.
Singapore Airlines’ mission is a global company dedicated to providing air transportation services of the highest quality and to maximize returns for the benefit of its shareholders and employees. SIA’s corporate core values are Excellence, Care, Safety, Integrity, Customer-Focus ; Teamwork. They are the commitment to three main pillar which is service excellence, product leadership and network connectivity. As part of corporate social responsibility SIA’s conduct many donations, sponsorships, charities, education, arts and sports events as well as the environment and conservation. SIA’s have many programs of contributions in communities not only in Singapore but also in the overseas such as Australia, China, Germany, India, Japan, New Zealand, Philippines, South Korea, Switzerland ; United Kingdom.
For the purpose of this paper, although SIA is doing many CSR activities we are proposing SIA’s work with NTUC Fair Price or Singapore Council of Women’s Organisations (SCWO) to collect the old books and old clothes send to the low-income country or low-development country when they are travelling to that country. Another suggestion is SIA organise for the orphanage and handicapped to have free airplane flight experience and sending them to near country like Malaysia, Indonesia to explore new things and get the new experiences for them.
Currently SIA’s customer service response for customer feedback and enquiries within the 10 working days. It will be better they can reduce from 10 days to within 5 days to get more customer’s satisfaction and needs. Although SIA is one of the best airlines, there have a lot of complaints from the customers regards to Foods are not as per standard/ Flights delay/ online customer service replied are not helpful. SIA should review the customer feedback program on daily basis and solve the issue by proving their brand image of service excellent.
As part of carbon-neutrality, Singapore Airlines has joined the International Air Transport Association (IATA) in its commitment to reducing the industry’s emissions in three stages and it supports IATA’s Four-Pillar Strategy to address climate change, comprising technological, operational, infrastructural and economic measures. As part of cost saving, we are proposing SIA for the cleaning of aircraft to using the dry wash instead of using water, it can be reduced the costs and save a lot of water. Dry wash is a safe and economical cleaning product, it has been tested and approved by international aviation standards. Cleans surfaces without water, high-gloss surface after cleaning. It can save 15,000 litres and foam every three months to clean the wide-bodied aircraft.
Bargaining power of Customers
Buyers bargaining power is very powerful and has to be more focused on the needs and desires to better serve and satisfy them. Buyers have an effect on an industry through their ability to force down prices, bargain for best quality or more services, and play competitors in opposition to each other. Buyer groups experience low switching costs as they can select one airline company over another, depending on which affords higher deals.
Since Kris flyer program had been promoting to retain customer loyalty and propose to add-on the additional services like in-flight massage treatments will be more attractive.
Bargaining power of Suppliers
Boeing and Airbus are the major suppliers and SIA is relying on both of this two companies.
Since 2016 onwards, fuel prices have to keep rising but SIA able to maintain the fuel cost with 27% of expenditure between 2016 to 2018 due to fuel hedging gain in financial year 2017/2018. Staff expenditure was 16% in year 2017/18 and all combine fuel, staff and rental costs were 43% of SIA’s expenses.
Enhance services, Advance technologies and fuel costs all aid to create a strong level of Airline Industry’s supplier power and switching cost also high as well.
Rivalry in the industry
SIA has a major business transformation plan “bold radical measures” started from 2017 because of company first loss within five years since 2012. This transformation has a focus on enhancing cost and service efficiencies to better position the company for long-term growth. Currently SIA have order the 46 Airbus and 63 Boeing aircraft.
So, SIA can develop more revenue to improve processes efficiently and more passengers to filling up more seat per aircraft to be the positive impact on the bottom line, as well as enhancing organisational and operational effectiveness.
Threat of new entrants
The aircraft refurbishing solution mainly in the various parts used for cabin and interior are made from different types of lightweight materials to make it luxury quotient of VIP cabins and commercial cabins. On the other hand, decreases the gross weight of aircraft, which result in fuel savings.
We suggest SIA to redesign a row of three economy seats to be converted into a flatbed for family and friends to become economy class Family Couch, on long-haul flights which like Air New Zealand’s design. Also, some parts of aircraft such as lighting and aircon fuel utilization should replace with the solar energy system to decrease dependence on fuels usage.
Threat of a substitute products or services
SIA had target especially on medium and long-haul flight luxurious traveller that alleviation and time when travelling with less cost. In the same time developed to train talent staffs to emerged as expert staffs, so their offerings are higher among than opponent and do not easily to replacement. SIA is focusing substantially on the digital realm, to set up an internal digital-innovation unit to increase its digital capabilities and capacity to reclaim World No. 1 spot.
On the other hand, We propose SIA to substitute with Humanoid Robot instead of Staffs cabin crews to be vibrant innovation culture in the airline industry and reduce staff cost. Our idea of social Humanoid Robot is Sophia and developed by Hong Kong-based company Hanson Robotics.
In this twenty-first century, by the latest records, Singapore Airlines (SIA) is the first in the ASIA. Government sector and the public-sector equality is helpful by collective and collaborative effort of the leaders in SIA.
(1) Singapore Airlines Strategy
Nowadays SIA accomplished as a premium carrier with an excellent class of services and the highest level of innovation. By corporate strategy Singapore Airlines following related to diversification. In the SIA group have more than 20 subsidiaries and interconnected companies.
(3) A dual strategy of differentiation and cost leadership
The two points of differentiation between service and low cost are the dual model elements SIA repeatable model. The two model interlocking forms of differentiation rules between peoples and the leaders make the success.
(3) Turbulence on the horizon
Based on BNP Paribas’ proprietary fuel hedging model, net fuel costs after hedging will estimably fall $1.1b in FY3/17, based on a jet fuel price of US$50/bbl, similar to current levels.
(4) SIA organisation activity Systems
Customers adjust their Expectations according to the brand image when they fly on a good brand like SIA. Passengers expectations are already sky-high.
SINGAPORE AIRLINES HAVE FIVE PILLARS
(a) Rigorous service design and development
For the service design SIA have one development department, under this department tot they test the service before they introduce. Customers adjust their Expectations according to the brand image when you fly on a good brand like SIA. Your expectations are already sky-high.
(b) Total innovation
Singapore Airlines leaders not make aims to be a lot better, or everything is better, but just a bit better. Also, SIA leaders do not constant innovation but also total innovation in everything. Time is valuable for them, in the leader language “Every time is important.”
(c) “Profit consciousness” ingrained in all employees.
This pillar derives the culture of the company. SIA managers are as a benefit of the company they want to the most profitable, even if a small company which is very powerful.
(d) Achieving synergies through related diversification and infrastructure
SIA Singapore airport terminal is providing some services in the ground at Changi Airport. It is one of the most cost-efficient major Airports.
(e) Developing staff holistically
Senior managers of SIA believe that earning of SIA is almost next to guidelines. The popular “Singapore Girl” undergoes training for 15 weeks. Which is longer than any other Airlines and almost twice as long as the industry average of two months.
As our proposal for SIA is as soon as possible need a new team, the name is “ASCENT”. into this group leaders will develop the strategy. Only Ascent group allow for taking the actual decision after corporate leader’s decisions. By the latest news, Singapore Airlines runs in the loss, which is Few and Far between happened. Special to avoid the financial accident this team will be work. ASCENT leaders will be work as A roof of strategy management, for the decision of B to B, B to C, and for the five pillars of Singapore Airlines.