QMAPI CASE STUDY

Mission Statement"Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees.

'A Great Way to Fly'HistorySingapore Airlines began with the incorporation of Malayan Airways Limited (MAL) on 1 May 1947.

With the formation of Federation of Malaysia in 1963, the airline's name was changed to Malaysian Airways.

In 1966, the airline's name was changed toMalaysia-Singapore(MSA).HistoryIn 1972, MSA split into Singapore Airlines and Malaysian Airlines System.

Singapore Girl a consistent visualadvertising slogan since 1972, remains a prominent element of SIA'smarketing. "First to Fly the A380 Experience the Difference in 2006

Removed 17 aircrafts from its operating fleet between April 2009 and March 2010, as part of a cost-saving initiative.

Scoot - Singapore-basedlow-cost long-haul airline. It operates flights on medium and long-haul routes.

Vistara- Joint venture between India'sTata Sons andSingapore Airlines.

'World's Best Cabin Crew Service' by the Business Traveler Asia-Pacific Awards for 17 consecutive years.

In 2003 started the two longest nonstop flights in aviation history, Singapore Newark and Singapore Los Angeles.

Worlds Best Airline award from Conde Nast Traveler.

Skytraxs Airline of the Year award three times over the past decade.

StrategiesCompete on ServiceBrand and promote the cabin crewInnovationDespite quality, SIA is cost-effective.ASK were just 4.58 centsCombined differentiation and cost leadershipDual StrategyEntail contradictory investments and organizational processesDemand for value for money has shot upGrab middle and low end of the marketCompetition from rivalsFunded growth through retained earningsSelf-reinforcing system that is difficult to imitate4 ParadoxesProviding service excellence cost effectivelyInnovating in both a centralized and a decentralized mannerBeing a technology leader and a followerAchieving standardization and personalization in its processesFactors influencing SIAs marketing strategyFactors not visible to customersTraining to employeesAmount spent on InnovationAircrafts spending less time in hangersVery less Labor costCost cutting in back office

Factors visible to customersCustomer ServiceInnovationValue for moneyPersonalized ServiceFleets are young

StrengthWeaknessCost Effective operatorsFleets are youngEmployee trainingSpecialized customer offering

Depends on international trafficLags behind back office technology Limited growth in market share

OpportunityThreatExpand routes across Middle East,India,ChinaCan leverage the hub in SingaporePartnering with other carriersLow salary to employeesFuel costCompetitors

SWOT AnalysisInnovationFirst to bring on demand entertainment systemsIt is centralized and decentralized Specialized meals Product innovation departmentNon stop all business class serviceInduction of Airbus A380 Cabin crew stopped food ordering through entertainment system Training QualityRecruits first class university graduates

Training period 4 months. Industry avg 2 months

Spends $70 million a year to retrain employees

Deportment, Etiquette, Cultural sensitivity

Cabin crew is involved in decision making

Trained on several languagesOnly Standardization not able to deliver the WOW factor

Personalization of the service. Ex: remembering birthday and preferences of wine and magazine.Most opportunities arise from unexpressed needs. Ex- some customer might look unwell, someone laptops battery might have drained out etc. Ordering meal thats not in menu as in vegetarian meal A person wants to discuss about wine

Trade OffTo go this extra mile it takes effort and time thus extra crew members are carried and extra 5% is added to costs14Strategic InvestmentPersons ability to taste food at 30,000 feet declines by 40%. $700,000 invested to build a facility that enables a person to taste to food under pressurized flight condition.

SIA spends more than its rivals Buying new aircraft SIA replaces its fleet more frequently than do competitors.

Depreciating AircraftIt depreciates aircraft over 15 years compared with the industry standard of 25 years.

Labor cost on flightInnovationTraining

Price effectivenessNew planes are more fuel efficient and less prone to repairsLow customer attrition.Waste reduction Offers lower pay by Singapore standardsOutsourcingNo frills headquarters and officesResponsibility for cost reduction is decentralized17Shostacks Molecular ModelMarketing PositioningDistributionPriceTransport ServicefrequencyIntangible elementsTangible elementsPre &Post-FlightF & BAircraftIn-flightserviceFlight schedulesCore products and supplementary servicesThe core benefits SIA offers areA very good experience of air transport.Cost efficient and excellent service.

Supplementary services that help to differentiate core products and create competitive advantage areInflight food, entertainment and stewards services.Flight schedule, timely arrivals and departures.Porters five forces

Porters five forcesRivalry is taken care of by following the dual strategy.New entrants are taken care of by innovating.Buyers bargain power is low because it is already providing high quality for low prices.Suppliers power is low as SIA is able to negotiate well with its suppliers to purchase at low price.There is not much threat because of substitutes as there are no equaling substitutes to flights.217Ps of Marketing strategiesProductPrice PromotionTraditional 4P marketing approachPlace

PeoplePhysical evidence, andProcess3Ps of service marketing strategiesPeople: The SIAs Stewards Singapore Girl is their internationally-recognisable icon providing the high standards of care and service that customers have come to expect of them.Physical evidence: Aircraft, Food and Beverages.Process: Service enhancing processes like booking the cook, all behind the scene work done to achieve excellence.CUSTOMER SATISFACTION -RESPONSE FROM SINGAPORE AIRLINE:How do you keep the customer Happy?Customer satisfaction surveys are developed to provide an understanding of customers expectations and satisfaction.

Dividing heterogeneous market into a number of smaller, homogeneous submarket

Geographic: Nations and RegionsDemographic: Age and IncomePsychographic: Socio economic and life styleBehavioral:Usage rate and AttitudeSegmentationAGE AND RESPONSE(AGREEOR DISAGREE)MEANS.DSTANDARD ERROR MEAN95%CONFIDENCE INTERVAL OF THE DIFFERENCETD.FSIG.LELLOWERUPPER1.5661.454.26551.0232.1095.89929.0001) Age group and their response(agree /disagree)Ho:There is no significant difference between age and their response for travel in SIAs (agree and disagree)

Ha: There is significant difference between age and their response for travel in SIAs (agree and disagree).2) SIAS FREQUENT FLYER PROGRAMM FrequencyPercentValid PercentCumulative Percent2170.070.070.0930.030.0100.030100.0100.0

10%73.3%16.7%

3)Age and SIAs frequent flyer programCLASS USUALLY USE TO TRAVELFrequencyPercentFirst Class310.0Business Class26.7Economy Class2583.3Total30100.04) OCCUPATION AND HOW MANY TIMES TRAVELDFrequencyPercentProfessionals1550.0Executives310.0Students1240.0Total30100.0

AIRFARE COSTSTotalFAIRGOODVERYGOODEXECELLENTSAFETY AND SECURITYGOOD20013VERY GOOD20158EXCELLENT282719Total6831330

5) SAFETY AND COMFORTS - AIRFARE COSTS (CROSS TABULATION)6)Out of 30 response 28 o were responded that they are preferred to travel with SIAs compared to others airlines

REASON FOR TRAVEL IN SIAs AND HOW MANY TIMES TRAVEL IN AIRLINE (CROSSTABULATION)REASON FOR TRAVEL IN SIAsHOW MANY TIMES TRAVEL IN AIRLINETotal1-2 Times3-5 Times6-8 Times>8 Timescost,choice of destination,inflight entertainment,comforts,ease booking,sfe and security,cabin crew services,reputaion920112inflight entertainment,ease booking,choice of destination,meals on board,reputation,cabin crew service,promotion offers,others541010cabin crew services,meals on bords,comforts,easy booking,meals on bord,choice of destination,cost60118Total2062230