Executive Summary
This audit report presents an analysis of Bamboo airways regarding marketing strategies. The primary focus will be on the tactical aspect and the strategic measures. Also, through competitors, industry, customer, and company analysis, the report will identify the weakness and strengths that Bamboo airways have as marketing strategies. The tactical aspect will involve the 4Ps or 7Ps of the marketing combination will be evaluated for their alignment in relation to the strategic measures (Gurd, 2018).
Strategic Aspects
Bamboo Airways, industries, and competitor evaluation
The operations of Bamboo airways are competitive, and being an airline industry, five forces competitive explore that the main pressure is due to the bargaining power from customers and suppliers, emergence of new similar companies, availabilities of the alternative product or services, and increasing competition from the existing similar companies (Gurd, 2018). Such companies that offer this intense competition include airline providers like JetStar pacific, Vietnam airlines, AirAsia, and VietJet air. Most of these mentioned competitors utilizes and establish their brand reputation and market positions in a number of ways which can be termed strategic approach. These approaches or their strength include a low-cost model carrier, partnership alliance, and programs like frequent-flyer which represent the weakness (Ng & Lo, 1996) for Bamboo airways while its strength according to Chin-Shan and Chi-Chang (2012) are many domestic flights and support from parent companies.
Customer Analysis
The market segmentation and the strategy of targeting by Bamboo airways focus on business and leisure travelers (Chin-Shan & Chi-Chang, 2012). Chin-Shan and Chi-Chang explain that it’s because Bamboo airways use segmentation levels like demographic, behavioral, and psychographic to pinpoint the targeted audiences. Where the essential segment of Bamboo airways is those that have quality service, low fares, and travel experiences that are convenient. However, the existing offerings from all the markets never fully or adequately met the needs of segmentation like the adventurous and eco-tourism (Gurd, 2018). Which as an airline service provider, Bamboo airway can provide more value to these existing services gap through the offering of the tailored services and products that successfully achieves the unique need to the market.
Companies’ analysis
The competitive advantages of the Bamboo Airways lay in the fleets which are modern and young, the team management that is experienced and the financial backing that is strong and inherited from the FLC group which forms the parent company for Bamboo airways. The advantages that the competitors have over Bamboo airways is that it lacks a precise and clear market differentiations and positioning in accordance to their competitors. Thus, if the brand could be positioned effectively by either emphasizing in its unique proposition of value like in innovation, sustainability and customer services (Chin-Shan and Chi-Chang, 2012).
Tactical Aspects
Product
The product by Bamboo airways includes both local and international flights and services like the beverage and food, Wi-Fi and entertainment as in-flight services. The VietNamNet News explains that the product by Bamboo airways are not different from those provided by their competitors the outstanding aspect about them is that they integrated innovative technologies and has aircrafts that are modern (Gurd, 2018). At the same Bamboo airlines focuses on the appropriate product offering that target market that are basic while introducing services and products that are personalized in the need to serve the customers needs that are diverse.
Pricing
The pricing of the Bamboo Airways is always relatively competitive to the market which cannot be stated as that which reflects on the market positioning (Bamboo Airways, n.d.). This allows the need to improve the pricing strategy in aligning with the values of the brand and proposition selling that are unique. Reflection of the pricing strategy has enabled the bamboo airways to increase its market share, revenue and the loyalty of the customers (Chaffey, 2022).
Promotion
Bamboo airways uses a number of channels in promoting its services. These channels include social media, online advertisement, sponsorships and prints. But out of these mentioned techniques, the one that has been found to be most impactful is the email marketing and the social media for the primary targeting of the audience (Chaffey, 2022). Additionally, Bamboo airways utilizes the massage appropriateness in communicating with the targeted audience. Other publication sees the need of bamboo airways in utilizing experiential and emotional messages beside the appropriate massage in enhancing the narrative about the Bamboo airways brand. Again, the innovation tactic of marketing like the partnership with influencers and campaigns marketing that is experiential has a vital role to Bamboo airways. This is because it allows for overcoming the competitors and being appealing to the customers, as explained in the work of TUAN (n.d) on the influence of online check-in on customer loyalty.
Place
The distribution techniques of the Bamboo airways is that it involves both offline and online sale of tickets and codeshare covenants with its neighboring airline competitors. Gurd (2018) explains the technique of distribution improves the direct sales of places or destination and partnership with other traveling agencies within the border. This is beneficial to the company as the it makes its more convenience and accessible to the services and product that customer benefit from Bamboo airways. Some sources reveal that the reliance of the local routes was beneficial in the resilience of the impact of the covid-19 (Chin-Shan and Chi-Chang, 2012).
People
The publication by VietNamNet News explains that it is through the people that Bamboo airways and similar companies benefit from in the race of marketing their services and products to the people before service or product delivery. At the same they provide employee, customer service representatives and other or any personnel that can interact with the service or product buyer. This is why the Bamboo airways evaluate the staff quality and services that are provided to the customers in order to advance and make better and needed improvements. Bamboo Airways through their published journal on Information on Bamboo Airways’ Business Strategy and Fare classes contend that this is done through training of its staff and equipping them with skills to attend to complaints and queries from the customers. Emphasizing on the customer services helps in building customer loyalty and differentiation of Bamboo airways from the competitors (Chaffey, 2022).
Process.
The process that Bamboo airways utilized identify most of the areas that don’t meet the customers need and the areas of improvement. Thus, aligning with the target audience requirements or removing and improving that have weakness. Thus, the better and crucial way for the firm is to efficiently streamline the process for better customer experience for outstanding other competitors (Chin-Shan and Chi-Chang, 2012).
Physical evidence
The association of the brand that is tangible in the Bamboo airways are physical equipment and facilities that the company ensure are up to date and satisfy the expectation of the customers. Evaluation of the design of the facilities is also vital in enhancing the aesthetic please and in the process providing the environment that is comfortable for the customers (Ng and Lo, 1996). This is resourceful in the creation of image brand that is positive and experience to customers that is hyped.
Conclusion
In conclusion, the marketing strategies by the Bamboo airways has earned the company 5-star and is used in identifying the gap between the tactical and strategic components. In this report the airline industry, customers segmentation, competitors, targeted audience, capabilities, resources and the marketing mix must be conducted in ensuring the effective strategies of marketing in Bamboo airways (Chaffey, 2022) and Chin-Shan and Chi-Chang, 2012). The main focus should be on the key areas which can differentiate the Bamboo airways from its competitors in achieving long-term prosperity and building customer loyalty in this industry of airlines. For instance, the brand positioning should be focused on affordable flight offerings integrated with quality services which should align with their slogan of “more that just a flight” that portrays the commitment in providing positive experience for travelling for passengers. All in the same it is through the success of the marketing strategies by the Bamboo airways that the foothold has been established in the competitive industry of airlines even with emerging opportunities that allow differentiation and improvement most especially while focusing on product offerings, promotion and distribution in the growth of the company brand to the travelers (Ng and Lo 1996).
Reference
Chaffey, D. (2022). Introducing RACE: a Practical Framework to Improve Your Digital Marketing | Smart Insights. [online] Smart Insights. Available at: https://www.smartinsights.com/digital-marketing-strategy/race-a-practical-framework-to-improve-your-digital-marketing/.
Chin-Shan, L.U. and Chi-Chang, L.I.N., 2012. Assessment of national logistics competence in Taiwan, Vietnam, and Malaysia. The Asian Journal of Shipping and Logistics, 28(2), pp.255-274.
Bamboo Airways. (n.d.). Information on Bamboo Airways’ Business Strategy and Fare classes. [online] Available at: https://www.bambooairways.com/global-en/company/press-and-news/press-release/information-on-bamboo-airways-business-strategy-and-fare-classes/.
Gurd, J. (2018). Competitor analysis for social media strategies. [online] Smart Insights. Available at: https://www.smartinsights.com/social-media-marketing/social-media-strategy/competitor-analysis-social-media-strategies/ [Accessed 19 Mar. 2023].
News, V. (n.d.). Báo VietnamNet. [online] VietNamNet News. Available at: https://vietnamnet.vn/en/extraordinary-strategy-brings-a-miracle-year-to-bamboo-airways-719778.html.
Ng, K.F.J. and Lo, C.F., 1996. The bamboo skewer: airway management in a patient with penetrating injury of the floor of mouth. Canadian journal of anaesthesia, 43, pp.1156-1160.
TUAN, N.M., Influence of online check-in on customer loyalty: A case of Vietnam Domestic Airlines.
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