Case study of Delta Airlines

1. CASE STUDY :

2. GROUP MEMBERS:-
SUMIT PAUL SINGH (10MI31018)
POLAMPALLY DHEERAJ (11CH10036)
SOURABH CHANCHAL (11CH10046)
SUNIL KUMAR (11CH10047)
SUPRITO BISWAS (11CH10048)
ASHISH MAHAWANE (11CH30006)
NAWAZ AHMED KHAN (11CH30012)
SAVA RISHABH SHARAD (11CH30020)

3. INTRODUCTION
Overview of the company
•Major American airline headquartered in Atlanta,
Georgia, United States.
•Founded in May 30, 1924.
•Operates an extensive domestic and international
network.
•Delta operates a fleet of more than 700 aircraft.
•Slogan – “ Keep Climbing “
•Delta employs approximately 80,000 people.
• Was the world's largest airline in terms of fleet size in
2011.

4. What makes them successful ?
• Expansion – Keep a permanent control of growth expansion.
• Make good decisions in route selection and hubs location.
• Be service oriented.
• They have a strong operation Management.
• Reactive in terms of prices with respect to Competitors.
• They offer lower fares and frequent flier program.

5. General Targeting Strategy
• Delta Airlines follows Single Segment Strategy.
• Delta currently targets more on business fliers.
• To reach its target market Delta Airlines is conveying its
message that it delivers everything business fliers need
through advertising in broadcast media and other national
media.
• Differentiation Strategy: The extensive flight service and brand
legacy of Delta Air Lines is recognized throughout the airline
industry as unique.

6. Benefits of Single Segment Marketing
• Company can gain more competitive edge. Their major competitors
being –
United Airlines, Northwest Airlines, American Airlines, British
Airways
• The company can create more fine tuned offerings at the right price
for the specific market segments.
• The company can have a clear picture of the competitors in that
particular segment.

7. Advertising and Promotion
• Advertising Campaign and Promotional events.
Media : Communicate market specific information throughPrint Media(Business Newspapers)
Broadcast Media (TV Ads Targeting Business Travellers)
Network Media
electronic Media
Display Media.

8. Promotional events
Events : Organize promotional events for its premium customers.
For e.g –
Enter Michael Buble, who will bring his To Be Loved Tour to Seattle's
Key Arena on Nov. 15 2013, accompanied by an exclusive VIP reception
prior to the show for 100 Delta customers, a special meet-and-greet for
20 guests, and premium ticketing and seats for guests at the show.

9. Emphasizing the business Traveller
segment
The various segments on which a company can emphasize are :
•Business travellers.
•Government and international organization travellers.
•Western European personal and leisure travellers.
•Seasonal (primarily summer, with some limited niche markets in
the winter period) holiday travellers.

10. Market Analysis of
share of segments
Though the share of Business
Travellers is less but the profit
gained from this segment is
much greater which is the
reason Delta emphasizes on
Business Travellers

11. Why Delta emphasizes on Business
Travellers
• Business travellers are very profitable for airlines because they tend to
buy their tickets at the last minute when prices are higher and their
schedules are not flexible enough to change flights.
• Frequency of the Business Travellers is high.
• Percent sales: The majority of their profit comes from business travellers.
• Price Sensitivity: The business travellers are much less sensitive to the
price because they need to reach their destination regardless of the price.
• What Customers want: This demographic wants to get to the destination
regardless of the price. They are more price inelastic.

12. Comparison between business travellers
and leisure travellers
Business Travellers
Leisure Travellers
• The business travellers are much
less sensitive to the price
because they need to reach
their destination regardless of
the price.
• They are more price inelastic.
• Leisure travellers are not nearly
as profitable because they are
more willing to change flights
and/or modes of travel based on
prices.
• The leisure traveller segment is
very price elastic.
• This market segment requires a
cost leadership method.

13. Needs of a Business Travellers
Needs
Actions
• Awareness
• Personalized Service.
• Flight Convenience.
• Communication.
• Low Prices.
• Advertising Campaign, emphasizing
on sensitivity and understanding.
• Quality service and personal
concern.
• Increased number of flights with
wide choice of destinations.
• Provide Wi-Fi Facility, Satellite TV.
• Lowered the fares without
compromising the quality.

14. Actions
• Introduced the discount of 10% in frequent and busy routes and 45%
for Less travelled routes.
• Lowered the mileage requirement of frequent flier program from
forty thousand miles to thirty thousand miles.
• Considering installation of offices in the air – McDonell Douglas is
creating on board offices with desks, FAX, computers, phones.

15. Conclusion
• The future of Delta Air Lines appears to be bright. Delta Airlines
being the 3rd oldest Airlines in America but still survives in the
current days and remains to be the oldest American Airlines which
runs profitably till date.
• Delta has been an innovator of several customer-friendly features .
• Delta’s strong operation management, service orientation, Timely
expansions made it to be one of the major Airline in America.
• Delta gains competitive edge by following segmentation strategy.
• Delta can still work on their strategy to improve its profit margin.