Principles of Marketing
Singapore Airlines was created in October 1972 following the split of Malaysia – Singapore Airlines. The split happened due to the difference between the business objectives: Singapore branch had an objective to service more international routes, whereas Malaysian branch concentrated more on regional services. When it was first launched, Singapore Airlines had quite a modest fleet comprising 10 aircrafts, a staff of 6,000 and a route network of 22 cities in 18 countries. In addition to that, Singapore Airlines already had 25 years of experience under their belt and unlimited ambition to become truly global.
Immediately after the launch, Singapore Airlines went through very extensive expansion and modernization of its fleet. Longer-term strategy of investment and product innovation followed, which helped the company to build strong brand and profitability. As the result, in thirty years time, the hard-working little airline from remote Asian island became a widely recognized global player. Today, Singapore International Airlines (SIA) is among the ten biggest airlines in the world, with more than 20 subsidiaries.
The overall excellence of SIA is repeatedly recognized with the highest international awards, such as ‘Best International Route Airline’, ‘Best Airline in the World’ and ‘Best Trans-Pacific Airline’. SIA is a leading airline in terms of innovation and modernization: it operates on one of the world’s youngest fleets, which is renewed every 4. 75 years (figure 4). It leads in product and services innovation, offers wide range of in-flight entertainment, exceptional cuisine and a level of services unmatched by any other airline. Singapore Airline’s product:
Kotler defines service as ‘activity or benefit that one party can offer another, which is essentially intangible and does not result in the ownership’1. Airline service has four characteristics: intangibility, heterogeneity, variability, and perishability. Applicability of these four points to SIA can be described as follows: airline service is largely intangible and highly dependent upon its quality and presentation. The heterogeneity aspect means that every three months staff are trained to be consistently proficient in customer services, handling complaints and dealing with unpredictable situations.
The variability aspect depends on inter-personal interaction between the crew and the customers. Perishability aspect means that it may be difficult for SIA in some cases to match supply with demand, i. e. they are reluctant to substantially reduce prices for un-sold seats, because it will affect their reputation as the world’s finest airline. Our chosen product is SIA’s in-flight services, which can be divided into three major components: first class, business class (raffles), and economy class. First class comprises 5% of SIA seats and offers air luxury and exclusive features.
These features include James-Park designed interiors, private seats padded with Connolly-designed leather and transformable into fully reclined bed, air mattresses, private storage space, stationery drawer, large sliding table, 14” video monitor, laptop power supply, Bvlgary-designed amenity kit, Givenchy-designed linen, duvets and sleeper suits, Givenchy-designed china, pre-ordered cuisine by international celebrity chefs served at the customer’s pace as in fine dining restaurants, and a selection of exquisite wines and champagnes.
Business class seats (10% on average) have the following in-flight features: Ultimo seats and Swiss-designed SpaceBed transformable into a flat bed (biggest business class bed in the world), electrical leg rests, lumbar support and adjustable headrests, discrete personal screens, double beds for family travelers, private storage space, laptop power system, 10.
4″ video monitors, electrical foot and leg rests, Givenchy blankets and toiletries, custom designed china, pre-order menus from a selection of finest international and local cuisines, and award-winning wines. Economy class seats (85% on average) feature the following: adjustable headrests, foot rests, selection of fine food prepared by international chefs, fine wine and beverages, snacks, sandwiches and soft drinks, personal video monitor, personal telephone, KrisWorld entertainment package, variety of games, amenity kits and toys.
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