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10 STEP Marketing Plan for Cebu Pacific,[object Object],Kaye Avellana,[object Object],June 2011,[object Object],http://kavellana.blogspot.com,[object Object]
This 10 Step Marketing Plan is part of the mandatory requirements of  Prof. Remigio Joseph De Ungria’s AGSB marketing management class.,[object Object],The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports.,[object Object],When appropriate, data are “masked” so as not to create unexpected conflicts.,[object Object],The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes.,[object Object],Disclaimer,[object Object],http://kavellana.blogspot.com,[object Object]
Summary: Steps 1 to 5,[object Object],Cebu Pacific’s target market are budget-conscious travelers,[object Object],Cebu Pacific fliers need low-cost airfares to satisfy social and personal needs of traveling,[object Object],Cebu Pacific’s direct competitors are: AirPhilExpress, Zest Air, Philippine Airlines, and AirAsia Philippines,[object Object],The opportunity gap lies in capitalizing on the vast number of destinations and maintaining low-cost status,[object Object],The total market size for domestic air travel was 8.4 million tourists or PhP 42 Billion in 2010. Estimated growth for 2011 is 12%.,[object Object],http://kavellana.blogspot.com,[object Object]
Summary: Steps 6 to 10,[object Object],Cebu Pacific has the most domestic destinations available,[object Object],Cebu Pacific is low-cost compared to PAL and SEAir, but varies depending on season with ZestAir and AirPhilExpress,[object Object],Cebu Pacific promos are frequent and very attractive to the market through the use of email blasts, word-of-mouth, print ads, etc.,[object Object],Apart from having covered most domestic tourist spots, they also have an efficient online booking system,[object Object],Cebu Pacific combines low-cost airfare and number of destinations to attract customers and make purchases easy by booking online,[object Object],http://kavellana.blogspot.com,[object Object]
Primary Target Market,[object Object],Age 21-35; Male and Female; Single and Married; Social Class BC,[object Object],Employed; budget-conscious;,[object Object],Avid leisure traveler; almost always with loved ones (friends/family/significant other),[object Object],Willing to sacrifice comfort for savings,[object Object],Tech-savvy,[object Object],Not afraid to make online purchases,[object Object],http://kavellana.blogspot.com,[object Object]
PTM’s Needs/Wants/ Demands,[object Object],The need to feel they can afford to travel, the independence to pay for trips & freedom to travel whenever they want,[object Object],The need to belong and have relationship-enriching experiences with people they love,[object Object],Reference: Maslow’s Hierarcy of Needs  Marketing Management, 11th ed, Philip Kotler,[object Object],6,[object Object],http://kavellana.blogspot.com,[object Object]
PTM’s Needs/Wants/ Demands,[object Object],Needs:,[object Object],They need to feel the satisfaction of being able to afford and treat themselves to a vacation whenever the opportunity strikes. They want to share these vacations with great company such as their family, friends and significant other and build memories that will last a lifetime.,[object Object],Wants: They want a reputable low-cost carrier that could give them the chance to fulfill their travel needs without hurting the wallet.,[object Object],Demands: They want the best value for their money, being able to reach the destination at hand without compromising safety and service quality in the process. ,[object Object],http://kavellana.blogspot.com,[object Object]
Cebu Pacific’s competitors,[object Object],Direct Competitors,[object Object],AirPhilExpress, ZestAir, Air Asia Philippines (3rd QTR 2011), Philippine Airlines, SeAir,[object Object],Indirect Competitors,[object Object],Bus Lines (Victory Liner, PhilTranCo, etc),[object Object],Ferries (WG&A, Sulpicio, RoRo, etc),[object Object],Variables:,[object Object],Price, Comfort, Availability of Routes, Travel Time, Companions’ Characteristics/Personalities,[object Object],http://kavellana.blogspot.com,[object Object]
Price vs. Socio-Economic Class,[object Object],Price vs. SEC Matrix,[object Object],PAL,[object Object],SeAir,[object Object],Cebu,[object Object],Pacific,[object Object],AirAsia,[object Object],Philippines,[object Object],?,[object Object],AirPhil,[object Object],Express,[object Object],Bus Lines/,[object Object],Ferries,[object Object],ZestAir,[object Object],http://kavellana.blogspot.com,[object Object]
Benefit positioning vs. brand map for Domestic Airlines,[object Object],Benefit Positioning vs. Brand Matrix,[object Object],*C/S: Code-share,[object Object],http://kavellana.blogspot.com,[object Object]
Market Gap,[object Object],Cebu Pacific is the pioneer low-cost airline in the country wherein Zest Air and AirPhilExpress have followed suit. Air Asia is following the same marketing positioning as CP but with international branding.,[object Object],CP can focus on tenure in the industry as well as continued low-cost offers to stay ahead of Air Asia.,[object Object],CP is notorious for delayed flights and poor customer service.,[object Object],In order to stay on top in the low-cost airline segment, CP should improve on quality service and maintain their low-cost fares. They should also try to penetrate the tourist-focused routes which are currently monopolized by competitors (Marinduque, Batanes),[object Object],http://kavellana.blogspot.com,[object Object]
Cebu Pacific is still the domestic market leader,[object Object],Cebu Pacific has successfully maintained its position as the country’s largest domestic carrier,[object Object],48.2% of sales from domestic air travel market in 2010 ,[object Object],From January to June 2010, Cebu Pacific flew 4.1 million domestic passengers, 1.2 million passengers more than Philippine Airlines (PAL).*,[object Object],The total market size for domestic air travel was 8.4 million tourists in Q1 2010,[object Object],Source: http://www.financemanila.net/2010/10/cebu-pacific-ipo-last-call-for-boarding/,[object Object],http://kavellana.blogspot.com,[object Object]
Cebu Pacific held a 48.7% domestic market share over its competitors in 2010,[object Object],Cebu Pacific = 48.7%,[object Object],Philippine Airlines = 34.5%,[object Object],AirPhilExpress = 7.9%,[object Object],Zest Air = 7.3%,[object Object],SeAir = 1.6%,[object Object],Revenues of CP in 2010 was PhP 14.91 Billion, a 30.9% increase from 2009 values.,[object Object],Cebu Pacific is still the domestic market leader,[object Object],Source: http://www.financemanila.net/2010/10/cebu-pacific-ipo-last-call-for-boarding/,[object Object],http://www.usnewslasvegas.com/national/cebu-pacific-overtakes-pal-in-domestic-market/,[object Object],http://kavellana.blogspot.com,[object Object]
Domestic Travel Market Size,[object Object],Competitor data= PhP 21.6 Billion,[object Object],Company data = PhP 20.5 Billion,[object Object],Customer Usage data = PhP 42.1 Billion,[object Object],http://kavellana.blogspot.com,[object Object]
http://kavellana.blogspot.com,[object Object]
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Print Ads – domestic airlines,[object Object],http://kavellana.blogspot.com,[object Object]
Product Description,[object Object],Cebu Pacific ,[object Object],has promo fares year round and for any occasion,[object Object],offers the most routes for travelers,[object Object], has the “fun” factor (in-flight activities),[object Object],Pushes hard for their tag line “it’s time every Juan flies” and is manifested in all their advertising and promotional materials,[object Object],http://kavellana.blogspot.com,[object Object]
Price Comparison,[object Object],Although some airlines are cheaper than CP in other destinations, CP is consistent in maintaining affordable airfare in all routes,[object Object],http://kavellana.blogspot.com,[object Object]
Modes of Communication,[object Object],http://kavellana.blogspot.com,[object Object]
Sales Promotions,[object Object],http://kavellana.blogspot.com,[object Object]
Advertising,[object Object],http://kavellana.blogspot.com,[object Object]
Direct Marketing,[object Object],http://kavellana.blogspot.com,[object Object]
Public Relations,[object Object],Philippine budget carrier buys 37 new Airbus jets,[object Object],Philippine pilot soars above gender barrier,[object Object],http://kavellana.blogspot.com,[object Object]
Events & Experiences,[object Object],http://kavellana.blogspot.com,[object Object]
Word of Mouth,[object Object],http://kavellana.blogspot.com,[object Object]
Sales Promotions-Competitors,[object Object],http://kavellana.blogspot.com,[object Object]
Advertising-Competitors,[object Object],http://kavellana.blogspot.com,[object Object]
Purchase Point,[object Object],Online Sales – cebupacificair.com,[object Object],Call Center Sales,[object Object],Local & International banks nationwide,[object Object],Cebu Pacific ticketing office,[object Object],Accredited Travel Agencies,[object Object],Electronic copy via email,[object Object],Print-out from ticketing office/travel agencies,[object Object],http://kavellana.blogspot.com,[object Object]
Cebu Pacific’s Generic Winning Strategy,[object Object],Low Cost Producer,[object Object],Supply and Distribution Leverage,[object Object],Differentiation,[object Object],Niche,[object Object],http://kavellana.blogspot.com,[object Object]
Differentiation as the key,[object Object],Common: low-cost flights, year-round promos, good number of fleets, online booking,[object Object],Difference: no-frills & fun flights, most number of fleets, aggressive public communication strategies,[object Object],http://kavellana.blogspot.com,[object Object]
Recent Market-changing Event,[object Object],Operations will begin Q3 2011,[object Object],Joint venture between Air Asia & Filipino investors,[object Object],Promises low fares to compete with Cebu Pacific & PAL,[object Object],Travel to both domestic & international destinations with Clark as its hub,[object Object],5 brand-new A320 planes this year with target of 20 by 2015,[object Object],http://kavellana.blogspot.com,[object Object]
Cebu Pacific VS Air Asia,[object Object],Started operations in 1996,[object Object],Flights to/from 25 countries,[object Object],78 total destinations (excl. domestic),[object Object],SEA’s biggest low-cost carrier,[object Object],[object Object]
Flights to/from 10 countries
49 total destinations (incl. domestic)
RP’s leading domestic carrierhttp://kavellana.blogspot.com,[object Object]

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10 step marketing plan-cebu pacific

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  • 38. 49 total destinations (incl. domestic)
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