Delta Airlines Marketing Operations Essay

Pages: 4 (1349 words)  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business - Companies  ·  Written: April 21, 2019

SAMPLE EXCERPT . . .
A key part of the distribution strategy is therefore the hub and focus cities, where passengers are often routed. Delta has eight hubs (Atlanta, Detroit, Sea-Tac, Salt Lake City, Minneapolis, JFK, LAX and LaGuardia) and three focus cities (Boston, Cincinnati, Raleigh-Durham). Most Delta flights either start or finish in one of these cities, though not always.

Delta Airlines Communication Strategy

Delta communicates via traditional advertising, social media, website, and app. The company’s communications include marketing, customer service, public relations and customer information elements. This mix allows Delta to reach as many people as possible via these different media channels, and to target the right messaging for each one. An important element for most airlines in terms of communications strategy is the crisis management plan (Atherton, 2016), such as how to respond to having Boeing 737 Max 800’s in your fleet – or taking advantage of the fact that you don’t, as is the case with Delta (Airways Magazine, 2017). Baldoni (2013) notes that Delta keeps a fairly centralized approach to communications, and this is beneficial given how many different teams and messages the company is putting out each day.

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Delta Airlines Pricing Strategy

Essay on Delta Airlines Marketing Operations Assignment

Pricing strategy is a critical element for airline success. The strategy varies depending on the intensity of competition in a given market. On competitive routes, margins are going to be thinner, as price becomes a major differentiating factor. Delta seeks to hit industry averages on pricing – it does not try to undercut or use a premium pricing strategy, but to fall in line with other airlines and then differentiate on various service elements. There is more flexibility to earn margins on less competitive routes, usually to smaller airports, and there is also more flexibility to earn margins on premium services – business class, first class, lounge access, even seat upgrades – because often those markets are less price sensitive and the airline still has massive data sets to work with. Data sets and algorithms drive airline pricing most of the time today, given the vast amounts of data that airlines have to work with.

Delta Airlines Differences

There does not appear to be any major difference in these approaches for Delta, whether there is an international destination involved or not. The fundamental principles are roughly the same – on a competitive route, like the five different airlines that fly JFK-CDG, the airline has to price more aggressively. On less competitive international routes, Delta can earn higher margins. There are some exceptions, such as international flights into hub airports. There is not enough business to sustain, for example, Vancouver-Minneapolis. So while Delta has no competition on that route specifically, passengers on that route would typically be flying somewhere else, so Delta might actually be competing for flights to and from Vancouver and anywhere on the East Coast or Great Lakes. That means it has to price that route as if it was competing against United flights via Chicago and Air Canada flights via Toronto, or something like that. But this theory would apply on equivalent domestic routes (say, Boise to Minneapolis would have similar user patterns).

Conclusion

Because of the nature of the airline industry, Delta’s international operations are an extension of its domestic operations, with largely the same target markets in place. As such, there is not much difference between the way that its marketing is structured in those markets. For Delta, this simplifies international operations, and international marketing, considerably. It also means, however, that many of its international routes are highly competitive, which would be treated the same as any other highly competitive domestic route.

References
  1. Airways Magazine (2017) Delta orders 100 Airbus A321 NEOs, says no to Boeing’s 737 Max. Airways Magazine. Retrieved April 21, 2019 from https://airwaysmag.com/airlines/delta-orders-100-airbus-a321neos-says-no-boeings-737-max/
  2. Atherton, M. (2016) Crisis management – lessons we can learn from Delta Airlines. Mantic Point. Retrieved April 21, 2019 from http://www.manticpoint.com/blog/crisis-management-lessons-we-can-learn-from-delta-air-lines
  3. Baldoni,… [END OF PREVIEW] . . . READ MORE

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APA Style

Delta Airlines Marketing Operations.  (2019, April 21).  Retrieved May 26, 2020, from https://www.essaytown.com/subjects/paper/delta-airlines-marketing-operations/5760862

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"Delta Airlines Marketing Operations."  Essaytown.com.  April 21, 2019.  Accessed May 26, 2020.
https://www.essaytown.com/subjects/paper/delta-airlines-marketing-operations/5760862.