Executive Summary 2

Executive Summary

This report describes the concept of Relationship Marketing (RM) can be best demonstrated by the practices of e-commerce today in the case of Qatar Airways, which is the state airline of Qatar state. Besides, it is considered as one of the youngest flight companies, which ranks top among prominent airlines such as Emirates globally (Thomas, 2017). It further analyses the competitive environment in which this company operates and presents the key strengths and opportunities it faces. Moreover, it highlights the threats that it faces, such as the political instability and fears of terrorism attacks (Barry, 2015). Besides, the airlines’ company report presents an explanation of how the innovation of relationship marketing practices by E-commerce entities (Internet) is changing the marketplace as it is known. Additionally, the report presents how Qatar bonds with its customers through Structural bonds, financial bonding, social boning, and customization bonding.

Also, it depicts how Qatar airlines have shifted from mass production to mass customization and how this has helped to market its products through such a move. As if no enough, this analysis identified and makes the following three recommendations to Customer Relationship Management for the company. Firstly, design CRM software that is easily used by travelers, internal customers, and the organization companies (Avery, 2014). Secondly, as a business, track the behavior of customers during sales. Lastly, to not only think of using the CRM as the sole sales system that is automated. Besides, the report presents ways the flight company manages ethical issues originating from the collection of customer data for CRM.

Introduction

Companies having a sound focus on customers determine their desire towards their potential customers after that design their products and services in a way that meets the needs of their customers. The relationship marketing theory focuses on the belief that good relationships with customers make them feel recognized, cared for, and served with respect (Avery, 2014). Always marketing strategies centers around two major factors; firstly, to attracts and acquire new customers. Secondly, to retain existing ones alongside nurturing relationships with them, organizations operate closer to customers to have a competitive advantage in the market.

Qatar Airways are a state airline company of Qatar as well; it is among the industry aviation source of the success stories. It was established in 1993 and started operating in 1994 as a small airline company for the region serving few routes. By 2011, it reached out to over 100 destinations in the global space (Thomas, 2017). This paper, therefore, addresses the issues of relationship management in Qatar airways. Besides, it discusses the CRM approach used by the company. It is structured in such a way that part one analyses the situation of operations; the subsequent parts deal with the RM and CRM and finally present a recommendation for a better competitive advantage in the future.

PART A (15 marks)

This section should contain a critical situational analysis of the chosen company/product.

This includes Competitive Analysis (assessment on the strengths and weaknesses of current and potential competitors. This analysis provides both an offensive and defensive strategic context to identify opportunities and threats), and the Target Market (a group of customers that the business has decided to aim its marketing efforts and ultimately, its merchandise towards).

 Competitive analysis of Qatar Airlines

This analysis evaluates both external and internal factors that affect the flight company’s internal and external environments, given that Qatar airlines among the youngest travel companies that serve six continents. The Qatar government owns it; this situation gives its powerful competitive advantage over its competitors in the industry (Carey, 2016). Qatar Airways has immense government support, originates from an oil-rich country, and targets customers capable of paying for luxurious fees explicitly. Besides, it plys more than 150 country destinations, premium patronage, and full time winning of the award are the key competitive advantages and strengths o this flight company (Barry, 2015). The aforementioned competitive strengths make Qatar airlines a leading global airline. However, the company faces competition from flight companies that charge low flights since they target travelers of low income and flight budget.

Famous for opulence in flight, Qatar airlines mainly consider international travel capable of affording the business category. This strategy is a crucial weakness for the company since it does not provide for the Qatar locals in tourism (Avery, 2014). As a result of low presence in domestic routes, Qatar airways have less growth in market share. On the other hand, the travel company has powerful alliance strategies with premium airways along with its membership in an airline alliance. This depicts that is has a more significant opportunity to expand more in the international market with an immense presence in the global alliance acquisition. Moreover, Qatar airways currently increased the portfolio of flights, and travelers are inquisitive about traveling through their flights because of its renowned services of premium nature (Avery, 2014). The competition it faces from the airlines of Etihad and Emirates, unpredicted political environments, wavering fuel prices, disputes in politics and being enclosed by combative  zones such as Palestine and Syria as well as the fear of travelers from attack by a terrorist are its significant threats (Key, 2017)

The SWOT analysis

PESTLE Analysis

Qatar Airways’ PESTLE analysis assists in understanding the effects of the macro-environment and their influence on the travel business of the company. Additionally, this analysis is useful in understanding the present external factors such as Political, Economic, Social, Technological, Legal and Environmental forces and how they affect the business model of Qatar airlines (Young, 2015). Besides, it assists in understanding the business trajectories, company business case, activities, and monitored by the state regulators.

The government of Qatar assisted the business in starting the numerous routes linking to major in-country destinations that enhanced the travel company to serve in the six world continents. But, with heightening terrorism, some countries blocked trade and communication with Qatar. Besides US president Trump’s ban policy of traveling to US from a majority of Muslim states as a result of terrorism, banning the carrying of laptops while on the flight, especially from the Middle East to his country, impedes Qatar airlines from operating (Carey, 2016). However, this travel company set the trend and is famous for its premium offers that range from facility of checking in online, luggage and passenger safety, comfortable and lavish Longue to best waiting times, and customized meals provided by a variety of cuisines (Key, 2017). In socially impacting the brand of Qatar, Airlines have kept and improved satisfaction of customers a core value.

Technologically, the company opts to advance its technology in its operations; this has made the whole flight experience adorable and straightforward for the customers and at passengers’ fingertips. They offer bookings and payment facilities online, and there is also departure and arrival online notification as well as checking-in online this process has gotten better and is still improving.

The company has the first environmental protection concern that requires immediate intervention from the flight industry due to much fuel consumption and oil wastage. The government applies policies that aim at protecting the pollution of the environment (Blachly, 2016). The Qatar airways are liable as a responsible travel company to adhere to the set regulation.

PART B (70 marks)

The concept of Relationship Marketing (RM) can be best demonstrated by the practices of e-commerce today.

1. Based on ONE (1) of the websites above, explain how the innovation of relationship marketing practices by E-commerce entities (Internet) is changing the marketplace as we know it. Relate to relevant relationship marketing theories and concepts here.

As seen from the competitive analysis, Qatar airways use online booking, payment, departure notification, and arrival notification as well as checking-ins for their customers. However, with dynamism in the industry and competition intensity, the company must initiate other mechanisms for increasing its competitiveness and market base (Carey, 2016). Qatar airlines have adopted this digital marketing to build relationships with their customers and the entire business. They have allowed customers to comment through their online platforms and offer a suggestion about the service quality and product. In enhancing relationship marketing, they have provided the opportunity for response to customer issues swiftly. Swift responses to customer queries, complaints, and compliments have built their relationship with their customers as well as the company (Barry, 2015). Besides, thisthis feedbacks provision makes them put the customers’ interests first and not their products. This focuses on customer retention to the airlines company.

The company has strategically consider several aspects in using the e-commerce marketing, such elements include, marketing affiliation, advertising through Facebook and PPC. (Carey, 2016). Additionally, they market via video, managing social media, and they have developed a proper understanding of the effectiveness and working of the digital marketing approaches. Qatar airlines e-commerce marketing is linked to growth of sales, given that relationship marketing focuses on creating a strategic approach for the commencement of customer retention approach. In view of this the company has provided opulence to the customers that have made it more desirable among others.

In addition this has made their location easy for the customers. For the company to realize more of its customer retention it has to design a unique website to provide it with more competitive advantage upon continuously carrying out research. In the case of Qatar design it has featured the entire destination for their flights with visible graphics about company transport appliances ((Blachly, 2016). These extra features provided acts as after sale services to the customers in delivering robust services to customers. Apart from the online, service provided the company has well trained staff  who are smart, possessing good etiquettes and attractive image of the company in their relationship marketing, Qatar airlines have endeavored to meet their clients’ needs. Their website should prominently feature brand promoters and their contact in facilitating process promotion (Key, 2017).

Qatar’s online relationship marketing strategy considers a greater target market, positioning, segmentation and its products, in their website design, they catered for all the aforementioned factors. Essentially, their airways ecommerce marketing dies not discrimination gender, sex, age or customer class this has made it easy for it to have a wider market base. Given that they have access across the world, they need to continuously evaluate their progress of the online strategy. Moreover, the online marketing relationship must be in line with the whole strategy f the business for it to get its value (Columbus, 2016). As they strive to achieve this, they need to integrate their web design to be a multi-marketing strategy channel to help its growth and sustainability (Young, 2015). Besides, the company should essentially market consistently with the targets and expectation of the customers at heart.  By consistently marketing they create long-lasting relationship with the customers always the company endeavors to differentiate its online marketing strategy from other competing firms such as Emirates.

2. FOUR (4) types of bonds can tie a customer to an organisation. Using the same

website above, synthesise how each of these bonds improves the customer retention rate in the organisation.

Bonds in Customer Relationship

In exercising relationship marketing to bond tie customers to organizations. In the case of Qatar airlines in assessing their applicability to the business such as financial bonds, social bonds, Customization bonds Structural bonds

1. Financial bonds. This type of bond ties customers mainly through incentive of finances, such as lower costs in case of high purchases in volume or minimizing costs for customers who have been with the organizations for longer times (Dapko & Artis, 2014). Qatar airlines offer their old repeat customers some small discount to financially bond with them.
2. Social bonds. Inherently long-lasting relationships are created through interpersonal and social links. Where customers are perceived as prominent clients and not unimportant persons whose wants and needs are of importance to the business and the company endeavors to pay attention and understand (Kannan & Li, 2017). They customize products and services and get in touch with the customers. In using the social plat forms, they create social bonding with their clients. Additionally, Qatar airways value their customers and regard them as important components of their business.

• Customization bonds. There are two popular terms with this type of bond which are intimacy of customer and mass customization. The later focuses on a flexible of processes as well as structures in providing various and frequent individualized products and services offered by the organization at standardized costs of alternatives offered by the organizations (Columbus, 2016). On the other hand, customer intimacy encompasses the knowledge about customer as per the database provided in the online platform used. Qatar airlines have not segregated ages sex, gender and offers services that are particular to the target markets. Besides they have flexible systems and approaches to customers (Kannan & Li, 2017).

1. Structural bonds. These are bonds created through service provision to customers that are frequently designed as per service delivery to clients. As the company structures its service delivery that easily reaches it s customers globally, the online platforms fosters their structural bonding and the clients have been accustomed to their operation and easily reach them.

3. Explain the shift from mass production to mass customisation and relate to it to the chosen organisation.

Mass production to Mass customization

Given the onset of interchangeable components of industrial revolution, moving of manufacturing from the era of crafts to mass production age in the contemporary time another is emerging known as mass customization (Karp, 2017). Mass customization eminently replaces the craft era, where clients possessed products made according to their specifications and the elites were the ones who could afford such. When mass production came to exist, majority of clients could now manage to get the products as a result of affordability. With trading of traditional products amongst companies ideas and practices for companies have powerfully developed towards mass techniques of customization (Dapko & Artis, 2014). As a result of integration of technology in the production process and service provision, flexible manufacturing that are team-based and mechanization. Technologies have emerged focusing on mass customization incorporating three dimensions that do not contact measurement of the body’s well as digitized printing of documents.

4. You have to identify and make at least THREE (3) Customer Relationship Management recommendations for your chosen company. How does the organisation manage any ethical issuesoriginating from the collection of customer data for CRM?

Customer Relationship Management recommendations

It would recommend the company to do the following in managing their customer relationships

1. Design CRM software that is easily used by both the travelers, internal customers and the organization companies. Given that researches have shown that effective CRM ROI for all employees are key, the company moving forward should conduct a research before purchase (Dapko & Artis, 2014) And first find out what will really meet the demands of the Qatar airways customers. By skimping on this point, adoption of CRM will not be easy but difficult to use (Karp, 2017). Besides in designing the e-commerce platform for marketing should be done by the end users in the mind. Given that they will enable sales as well as social productivity.

Moreover it is important to note that not all users will be logging in everyday and use the online platform. By abbreviating fields may perfectly sensible to sales options but may be confusing the field representatives so customizing the CRM that fits all end user needs is desirable. Also, the company should pay keen attention to their interface design, and consider human factors which are pertinent (Duclos, 2014). The designs should enhance a seamless flow of screens to match the flow of work. Additionally, manage more the security, confidentiality and privacy aspects with the travel clients’ data.

1. As a business, track the behavior of customers during the sales. The management of Qatar airlines before calling sales should collect data concerning social media prospects so as to identify the information types to share across their online channels. Because the CRM tools are the ones providing the adaptation to sales possibility to the platforms (Columbus, 2016). After making sales call the sales representatives or the marketing team should track the resonating contents to customers, this will make the travel company to have clicking customers that is important in determining the mobile devices to add to already existing platforms (Duclos, 2014). Besides, as a global travel company Qatar airways should have applications that support all mobile devices and keep knowing new mobile applications have been brought into the market to keep their customers abreast having such information about mobile applications used by customers will help the company  to not only understand the trending needs of customers but also help in predicting their future trends and design their marketing content and service in line with a confident plan for the subsequent approach (Columbus, 2016).

• Qatar Travel Company should not only think of using the CRM as the sole sales system that is automated. Because in many cases organizations tend to think that sales starts and stops with the CRM (Nguyen & Simkin, 2013). Consequences are there for such thoughts such approaches leave some organization departments off the loop, limiting and at times completely deny them system accessibility. As result, they fail to sufficiently integrate their designed CRM alongside other interfacing with clients (Duclos, 2014). Given that failing to integrate the service desk with the system of CRM, the company front office team may be left behind of the trending advancements relating to customer status already shared with customers this makes them to miss opportunities for engaging and building relationships.

Ethical issues management

The flight company manages ethical issues originating from the collection of customer data for CRM through the following ways.  In 2016 the company adopted the state-of-the-art system of documents management that enables the business to have the capacity of hosting and sharing the company’s policies and operation manuals in real-time for promoting ethical practices towards customer information (Karp, 2017). Additionally, from the security and safety point of view, the company is pro-actively working in pursuit of IOSA decrees and recommendations of having data management to be through centralize organization schemes. This communicates the controls and procedures. Besides, Arconics integrated the AeroDocs to their operational Qatar Airways system that minimizes operational costs and cater for accuracy of information (Kannan & Li, 2017).

Moreover, the senior vice president of the carrier who is the group security and safety Mr. Jain noted that with the growth the company has invested in the technology that integrates teams in creating platforms that are secure and efficient (Young, 2015). The safety officer remarked that their live organizational system of document management and the web-based operation created for the company chance to ensure consistency. Besides their online systems are compliant to regulations and controls quality in a way that conforms to their business growth projections that are customer friendly and do not infringe on their privacy (Nguyen & Simkin, 2013). Besides, the corporation enables their subject matter experts to liaise well as offer real-time tracking of unscrupulous practices that can interfere with customer data and strengthens compliance and safety in the enterprise.

Conclusion

Conclusively therefore, Qatar airways success story in marketing has more backing from the government that initiated its operations and continuously offers it support. Besides, from the situational analysis, the company, Qatar airways’ targets customers capable of paying for luxurious fees, and is currently plying more that 150 country destinations, has premium patronage and full time winning of award are the key competitive advantages and strengths this flight company (Blachly, 2016). Additionally, the flight company bonds with its customers though the aspects such as Structural bonds, financial bonding, social boning and social bonding. In addition, Qatar airlines have shifted from mass production to mass customisation and this has helped to market its products thorugh such moves (Karp, 2017). As if no enough, this analysis makes the following recommendations to Customer Relationship Management for the company. Firstly, Qatar air lines should design CRM software that is easily used by both the travelers, internal customers and the organization companies. Secondly, as a business, track the behavior of customers during sales

Reference

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