...Title of essay: Exploring Marketing with Delta Airlines as a Case Study Tedlow, Richard S. believes that the history of consumer product marketing in the United States can be divided into three phrases.1 The history of marketing will aid us in understanding the business world today and is thus useful in this essay to explore this in brief before embarking on studying Delta Airlines as a case study to approach the topic of marketing, in the context of the U.S Airline Industry. Phrase 1 is that of fragmentation and this is purely due to logistics reasons, rather than the result of any marketing strategy. This results in transportation of bulky goods from one region to another being relatively expensive and for a consumer product to achieve national distribution, a favorable ratio of weight and bulk to value is required. This phrase happened before the 1880s and the market size is restricted due to a lack of information, and it is characterized by a high margin and low volume. The second phrase of unification is the rise of mass marketing, with high volume and a low margin, which is the direct opposite of the first phrase of fragmentation. The development of this phrase is possible due to firstly, the development of the railroad and the telegraph and secondly, innovations in manufacturing technology. All the above innovations led to a more effective transportation and communication network that lowered the cost of mass marketing products by significant percentages. There is a rise...
Words: 5315 - Pages: 22
...main line of business. Delta Air Lines is a very well known airline that flies passengers and their luggage to various destinations. In addition to discussing Delta Air Line’s main line of business, how the company implement’s the 4p’s of marketing will also be discussed in this project. Delta Air Lines When individuals think of fortune 500 companies Apple, Microsoft and the United States Parcel Services are amongst the first to come to mind. Fortune 500 companies are companies that are ranked annually by Fortune magazine and are the 500 largest companies in the United States. The fortune 500 list are based off of the company’s most current figure in regards to revenue. Companies such as Exxon Mobile, Wal-Mart, GE and Chevron have made their way up the fortune 500 list guide a few times in recent years. Being a fortune 500 company gives a company a reputable reputation and image (Fortune 500, 2012). Delta Air Lines is an airline that provides scheduled air transportation to various destinations for passengers and cargo throughout the United States in addition to various countries and continents. Delta Air Lines was originally Huff Daland Dusters in 1924 when it was first originally founded as a c Daland Dusters moved to crop dusting service in Macon, Georgia. Huff Daland Dusters moved to Monroe, Louisiana in 1925 and was then brought by CE Woolman and two additional partners. While under new ownership, Huff Daland Dusters was changed to Delta Air Service and began...
Words: 1518 - Pages: 7
...Gonzalez Jr. Ashford University Managerial Marketing BUS 620 Larry Flegle November 28, 2011 It Pays to Fly Full-Service In this essay I will create a nine-component marketing plan on flying full-service business class with Delta opposed to flying with a discounted low-fare carrier like Southwest. As the economy struggles and air travel becomes more competitive it is not easy to establish the best niche market strategy for an airline. Teplensky defined (as cited in Parrish, Cassill, & Oxenham, 2006) niche market strategy as, "an emphasis on a particular need, geographic, demographic, or product segment" (p. 695). Therefore, it would be ideal for Delta to seek a more specific niche in air travel and differentiate by precisely satisfying customers’ needs; rather than attempting to generalize broad niches that only partly satisfy customers’ needs as a whole. Company Overview/ Description of Location Delta Air Lines Inc. has their corporate headquarters in Atlanta Georgia. However, Delta Air Lines Inc. has a vast worldwide airline system. Delta serves over 160 million customers annually, and offers 356 destinations in 65 countries. Additionally, Delta has over 80 years of passenger service, more than 80,000 employees, and 700 aircraft that spread across six continents. Packed with an array of good services, Delta offers more than 13,000 daily flights, SkyMiles rewards (frequent flier plan), the world's largest airline loyalty partnership, over 50 Sky-Clubs, and an...
Words: 3022 - Pages: 13
...History of Song Llc Airlines Esequiel Garcia Dr. David Lowe ASCI 254 Monday, July 30, 2012 Table of Contents Abstract ………………………………………………………………………………………...…3 History of Huff Daland Duster Company………………………………………………...……….4 Collett Everman Woolman………………………………………………………………..………4 Air Mail Contract.....................................................................................................................…...4 Peruvian Airways merger with Pan American Grace Airways…………………………..……….4 Delta Air Service first passenger flight………………………………………………………..….5 The Air Mail Act of 1934……………………………………………………………..…………..5 The Civil Aeronautics Board (CAB) determine routes………………………………..………….5 The Airline Deregulation Act of 1978……………………………………………………..……..6 Song Airlines…………………………………………………………………………………..….8 Song Airlines Aircraft fleet………………………………………………………………………..9 Song Airlines Marketing Strategy…………………………………………………………...…..10 Delta Airlines Bankrupt……………………………………………………………………..…...13 Delta Airlines Disband Song Airlines…………………………………………………………....13 Delta Airlines merges Song Airlines fleet with Delta……………………………………..….....14 Conclusion of Song Airlines…………………………………………………………………..…15 Figure 1-A Delta SWOT Analysis…………………………………………………………....…16 Figure 2-A Song SWOT Analysis…………………………………………………………….....17 References……………………………………………………………………………….………18 Abstract In the competitive business environment it is imperative for any organization to ensure that its knowledge of the industry...
Words: 3638 - Pages: 15
...Classic Airlines Marketing Solution Because of the tragic events following 9/11, airline industry’s profits significantly decreased which resulted in an economic downturn. Classic Airlines was not immune to the recession. Classic Airlines Classic’s Rewards Program is currently suffering. Classics Customer Rewards Program has seen a 19% decrease in the number of members and a 21% decrease in flights among its current reward members. Classic Airlines marketing department needs to make an effort to increase customer volume and sales. So what can Classic Airlines do to increase these numbers? Identifying and addressing the internal and external factors contributing to Classic Airlines current crisis will help alleviate pressure associated with this current economic downturn. Employing market data to help develop goals while recognizing and focusing on the challenges and opportunities facing Classic Airlines, will give the airline the ability to take their future to new heights. Classic Airlines is the fifth largest airline and commands a fleet in excess of 375 jets that serve 240 cities with more than 2,300 daily flights. The airline also manages a staff of nearly 32,000 employees. Classic has managed to remain profitable over the past year. The airline earned $10 million on $8.7 billion in sales; however with rising overhead costs Classic Airlines is experiencing setbacks. The airlines share prices have decreased by 10% in the past year. Furthermore, with the negative publicity...
Words: 7997 - Pages: 32
...MKT 501- Strategic Marketing November 17, 2014 As we begin the journey to understand strategic marketing, we have to embrace the fact that customers are every company’s source of revenue. Because customers are the source of income, a company’s most valuable asset is its customer base. With new and unfolding technological capabilities, companies are able to recognize, measure, and mange relationships with each of those customers individually. A forward thinking company must focus on the preserving and increasing the value of that customer base. Organizations like airlines must mange their customer relationships effectively in order to remain competitive. In this case analysis, I will identify and explain key external factors that affect the passenger airline industry. This analysis will then turn towards explaining what the major airline market segments are, by applying segmentation, targeting, and positioning. Finally at the end of this analysis I will contrast two specific airlines United and Delta Airlines and describe each of the company’s target market and positioning by giving some examples of how these strategies are implemented for each company. Key External Factors Companies, like the airline industry, are forced to alter their business models, pricing, revenue, and cost structures to suit their customers’ changing needs in different economic conditions. The airline industry has experienced several modifications in terms of marketing and strategic planning...
Words: 1427 - Pages: 6
...Introduction Delta Air Lines Inc. is an international airline based in the United States and headquartered in Atlanta, Georgia. This company was formed in 1924 and grows into a major airline that serves more than 160 million customers each year. With its unsurpassed global network, Delta and Delta Connection carriers offer service to more than 350 destinations in nearly seventy countries on six continents. Delta employs 80,000 employees worldwide and operates a mainline fleet of more than 700 aircrafts (“About Delta”). This paper will discuss three recent marketing and operation activities at Delta. First, it will describe the new investment in the expansion of the eBoarding paperless check-in option for customers with smartphones. Second, it will explain the launch of Wi-Fi on Delta’s regional jets. Third, it will introduce the new Economy Comfort cabin of Delta’s aircraft. Paperless eBoarding Since 2007, Delta has been investing money into the technology called eBoarding that allows passengers to obtain an electronic boarding pass on their preferred smart mobile devices. Besides being able to receive their boarding passes on their cellphones, passengers can check in, access security, and board their flight by simply using the eBoarding option. Delta tested this technology for four years. Until the beginning of 2011, the availability of eBoarding pass option has expanded to 69 worldwide locations. Continental Airlines was actually the first airline offering this paperless...
Words: 1194 - Pages: 5
...Summary Delta airline has a long history whose roots begin at the year 1924.This airline has grown to become one of the largest airlines serving the United States of America and also majority of the world through its international routes. The aim of this paper is to see the history of the airline together with its financial position with concentration on the various strategies the company has implemented to reach where it is right now. The paper will also include various suggestions to the airline to help it to grow further. Delta airlines began in the year 1924 but during that time it was known as Huff Daland Dusters. This was the first aerial crop dusting which had its headquarters in Georgia. The following year, the company moved its headquarters to Louisiana. The directors of the company were B.R Coad and Collett Woolman.Huff Daland went on its first international route and that was to begin its services in Peru which brought in enough money and increase in purchasing power. The year 1928 gave birth to what is known as Delta Airlines today. Furthermore, the year 1930 came with a major setback to the airline. Delta failed to secure a commercial airmail contract and therefore suffered major losses which forced the airline to suspend passenger service. As time went by, the year 1934 seemed to be the year for Delta Airlines as they secured a low-bid contract for the new Route 33 airmail service between Dallas and Charleston, South Carolina, via Atlanta .The airline also resumed...
Words: 3203 - Pages: 13
...Delta Song Case Executive Summary U.S. Airlines face many issues today that ultimately will lower profits. Heightened Security in airports, less people willing to fly and a slumping economy have put the airline industry at a disadvantage. Delta Airlines has reported recently a $2 billon dollar second quarter loss. Delta has been losing ground to smaller airlines that fly the same routes that supply Delta with approximately 70% of its revenue. Delta Airlines will attempt to become the first major carrier to successfully launch a long term, low cost competitor. In the past year alone, low-cost carriers such as Jet Blue have claimed over 80% of the market share in New York to Florida flights. The new airline will be call Delta Song, and will cost $75 million The Delta Song Concept will use only one type of plane, the Boeing 757, that will be outfitted with leather seats, interactive monitors that will allow users to watch pay per view movies, play interactive games and online shopping. Song flights will fly between selected cities. Song planes will feature faster turnaround times of 50 minutes between landing and take off. Flight time is expected to be approximately 13 hours a day, which is 23% higher than the Delta main line. The goal of Delta Song is to compete with smaller airlines that will push Delta away from chapter 11 and return to profitability and future success. Analysis Delta will need to shift ticket sales operations away from...
Words: 1027 - Pages: 5
...this small business has grown into one of the world’s largest global airlines, helping more than 160 million travelers get to the places they want to go to each year. During the past year, Delta won 33 airline industry awards sweeping the major corporate travel surveys, including Business Travel News, Travel Weekly, TravelAge West, Recommend Magazine, and the Beat. Delta was also a recipient of the Secretary of Defense Freedom Award for exceptional support of National Guard and Reserve employees. The main priorities for Delta Airlines are customer satisfaction, safety and security. Delta's customer service goals are to deliver customers and baggage to their final destination safely, and on time. To make the experience more rewarding for customers, Delta offers more first class seats than any other airline, the SkyMiles frequent flier program, wireless Internet services, and entertainment on demand. Delta is devoted to reducing risk and supporting safe flying operations by administering voluntary safety programs that prevent accidents. Programs such as the Aviation Safety Action, Flight Operation Quality Assurance, and Line Operations Safety Audit are integrated into the day-to-day operations of Delta Airlines. Delta has developed procedures, processes, and international security business plans to help identify and manage security risks. With an industry-leading global network, Delta, and the Delta Connection carriers offer service to nearly 350 destinations in 61 countries...
Words: 768 - Pages: 4
...The purpose of this paper is to use a problem solving model to analyze the current situation with Classic Airlines. Initially, we will focus on the challenges, opportunities, external and internal pressures of marketing. Next, a clear problem statement will be constructed that is open to multiple solutions. It will conclude with SMART en-state goals that are specific, measurable, attainable, realistic and timely. Classic Airlines has seen a 10% decrease in share prices within the last year as uncertainty about flying has affected industry stock prices. Rising costs, specifically of labor and fuel, have crippled them and negativity from Wall Street, the media and the public has affected employee morale reducing it to an all time low. Although Classic’s Board of Director’s recently mandated a 15% across the board cost reduction over the next 18 months, it’s still mandated they create a way increase the frequent flier program reflecting a measurable return on any investment. The 9 step problem solving model includes the following steps: 1) Describe the situation. Provide an initial description of the issue or opportunity, which will become the basis for defining the “right” problem. 2) Frame the right problem. This is done based on the situation or scenario. 3) Describe end state goals. This is done based on that problem definition from the previous step. 4) Identify alternatives. Possible alternative solutions are created. 5) Evaluate alternatives. The alternatives from the...
Words: 2246 - Pages: 9
...Running head: SW Airlines Case Study Case Study Southwest Airlines Cardinal Stritch University Advanced Marketing Management CMB 508 September 3, 2013 Scott A. Braucht, MBA Professor In the 1940s travel via airplane was a privilege. Men wore a suit and tie and women wore dresses with a hat and gloves. Parents would endure a 27 hour flight from the middle of the country to Hawaii to see their soldier son at Pearle Harbor. Air travel was a luxury. Customers expected the best in treatment. Chef prepared meals were served on white china with glassware and silverware. A lot has changed since that time. There are a number of discount airlines today. They come and go, but Southwest Airlines has managed to stay in the business since 1971. Their success is due in part to the successful identification of their market and the needs of their customers. Southwest Airlines primary marketing strategy included bright red heart logos and catchy phrases for its peanuts (meals) and their drinks. As it grew, Southwest Airlines became known as the airline with cheap fares, on-time service and, most recently, not charging for luggage when other airlines started to do so. Passengers flying on Southwest Airlines are entertained by the pilots and flight attendants who tell jokes, describe funny facts of the areas as they fly over, and even burst into song. The flights are shorter than other airlines and the planes are turned around on the ground faster than the industry average...
Words: 741 - Pages: 3
...Organizational Structure for Delta Airlines * Taylor Witt * MGT/230 * July 14, 2013 * Nick Bertoni * * * * * * * * * * * * * * * * Organizational Structure for Delta Airlines * Delta Airlines has a 3 tiered structure that organizes the power down from the CEO into subdivisions. As seen in the chart below, the CEO holds all the power of the tiers and the COO is in charge of the in-flight service, strategy & real estate, and airport customer service. Most of these subdivisions require certifications and entail you to be your own supervisor. All of these positions are necessary for the company to succeed and thrive. Without any given part of the organizational structure it would surely fail. * You can compare this structure to a more totem pole structure like Buca Di Beppo. They don’t have tiers but have a pecking order. It starts with the corporate office, or planet Hollywood. Then it goes down the line from all the major positions CEO > VP > AVP > HR department (of corporate division) > Regional Manager of different states > General Manager of 1 store > AGM > sales manager > kitchen manger > supervisor > lead server > server > host > kitchen staff. In this structure there is a major line of command to be talked through before you can reach the VP or CEO, unlike the Delta Airlines where you can easily reach...
Words: 1436 - Pages: 6
...Affairs This portion of the paper will include key information about Delta Air Lines, Inc. (Delta): (a) history; (b) culture; (c) important leaders over the years; (d) current products and service offerings: (e) target markets; and (f) methods of product and service delivery. History This section describes the history of Delta. The company was founded in Macon, Georgia, in 1924, as the world’s first crop-dusting service, Huff-Daland Dusters. The company moved to Monroe, Louisiana, in 1925. In 1928, field manager C. E. Woolman and two partners purchased the service and renamed it Delta Air Service after the Mississippi Delta region it served. Delta was the first international mail and passenger route on the west coast of South America. Delta operated its first passenger flights over route stretching from Dallas, Texas to Jackson, Mississippi, via Shreveport and Monroe, Louisiana. Also, Delta was awarded a US Postal Service contract in 1934 to fly from Fort Worth to Charleston via Atlanta (Hoover’s, 2011). In 1941, Delta relocated to Atlanta. Woolman became the president in 1945 and he managed the company until his death in 1966 (Delta, 2011). Delta offered its first night service in 1935, using the Stinson Model A; the first Delta aircraft with two pilots. Douglas DC-2 and DC-3 service was introduced and the introduction of flight attendants, called “stewardesses,” added to flight crews. Delta contributed to the war effort by modifying 1,000 plus aircraft, over-hauling...
Words: 7453 - Pages: 30
...OVERVIEW OF THE CASE In 2002 Delta airlines faced the unfortunate realization that the competition from low cost carriers like Southwest and JetBlue was becoming a serious problem. Even though Delta had been looking at this problem for a long period of time, the business model of Delta Airlines was organized by function and their solutions generally focused on individual aspects of the firm. For example, the marketing department provided marketing ideas, the customer service department offered customer related solutions etc. Delta realized that they did not have a comprehensive solution to dealing with the low cost carriers in the market. One of the simplest solutions proposed by Delta management was the idea that Delta could launch its own low cost subsidiary, however, looking at the rest of the airline industry, low cost subsidiaries seemed to be ideas that were either immediate failures or unsustainable over time. According to experts, they had “never seen a high-cost carrier transform itself into a low cost carrier”. With or without this option, Delta would have to find a solution to this problem. The airline industry in the United States is immense, with more than 620 million passengers and over $81 billion in fares in 2001 alone. Unfortunately, while immense in size, in terms of profit, the airline industry continued to perform below the average for other industries. Many investments made by the larger carriers were not profitable and the tragedy of 9/11 put more pressure...
Words: 3457 - Pages: 14
