M RahmanMarketing mix of Air New Zealand (7Ps of Air New Zealand)
This is a detailed analysis of the marketing mix of Air New Zealand (7Ps of Air New Zealand). There is no denying that the global airline industry is both cut-throat and challenging. Every day, airlines must focus on how to stand out and appeal to customers so that they take notice of their brand, services, and prices. In this regard, it can be said that marketing mix is a useful tool for any businesses wanting to strengthen their brand recognition and tailor their marketing strategies appropriately.
Product strategies of Air New Zealand
Any product strategy is concerned with what the product is and how it is positioned. Air New Zealand is no different in this regard. It is an airline that provides passenger and cargo services. Before the global lockdown, it used to carry over 17 million passengers every year with 3,400 flights per week (Air New Zealand, 2022). It offers excellent in-flight entertainment products and services for passengers including food, games, and movies.
Air New Zealand has a strong product strategy that is centred on two key points: safety and freshness. Safety is of paramount concern in the airline industry. Therefore, it makes sense that Air New Zealand positions itself as a safe airline, reassuring customers that they can expect a very safe and positive flying experience. Indeed, it is the safest airline in the world (Rains, 2022).
With regards to freshness, Air New Zealand highlights the fresh, innovative, and mouth-watering, cuisine of New Zealand. As a result, customers who book a flight with it, are guaranteed a fresh and healthy meal.
Pricing strategies of Air New Zealand
Many passengers are very price sensitive and compare the prices between different air operators. Therefore, it is important that a brand communicates its pricing strategy clearly and effectively. Air New Zealand offers both economy and premium pricing which are in line with usual industry practices.
However, it is worth mentioning that the airline has recently increased the prices of its international airfares by 5 per cent as a response to the rising cost of fuel and high inflation (Downes, 2022). This shows that it pursues a dynamic pricing strategy which is about setting the prices of product/services to reflect changing market situations.
Place/Distribution strategies of Air New Zealand
The distribution of services is an essential part of the marketing mix of Air New Zealand. It is especially important because consumers cannot physically touch, handle, or test out the service before they finally use it.
Air New Zealand operates flights to Australia, the Pacific, Asia, North America, South America, and the UK (Air New Zealand, 2022). It usually makes two-thirds of its revenue from its international passenger network and therefore, international macro environmental challenges may affect its business as evidenced from the recent revenue drops (Waldron, 2022). This necessitates it to focus on its domestic market a bit more.
Air New Zealand has a large website that is well designed and user-friendly, making it easy for passengers to browse and book flights online. Moreover, it has direct partnerships with online travel operators such as Expedia, allowing them to book its flights directly through these channels. All these efforts have helped it build a strong presence and brand image online, which is particularly important given that many customers book flights online.
Promotional strategies of Air New Zealand
Air New Zealand’s promotional strategy is twofold. First and foremost, it focuses on offering customers great services and positive experiences, which it hopes will turn them into lifelong customers. Second, it has a robust promotional strategy that is designed to encourage them to book flights with it. Customers who book early have a lower chance of experiencing high demand and price increases.
Air New Zealand has a strong presence on social media, with a robust Facebook, Twitter, YouTube, and Instagram account. It has made some viral air-safety videos attracting millions of views with a very short time. It is also known for its cheeky commercials on newspapers and TV.
Process strategies of Air New Zealand
Process is another key part of the marketing mix of Air New Zealand (7Ps of Air New Zealand). Air New Zealand has a robust process strategy designed to reinforce its brand. For instance, it has put a strong focus on customer service, making sure that all customer interactions are very positive. It also makes use of technology to streamline and automate customer interactions, such as with its new boarding pass technology.
Another example is Fare Hold. The process is that passengers can hold their current fare provided they confirm their booking within 3days. If they decide not to go ahead with the booking, they do not need to do anything as the booking will be automatically cancelled. However, it is worth mentioning that the Fare Hold fee is not refundable (Air New Zealand, 2022).
People strategies of Air New Zealand
Air New Zealand has put a lot of effort into human resource strategies, aiming to hire and recruit the best people possible. It also celebrates diversity and inclusion, with a strong focus on hiring and promoting women and Māori, New Zealand’s indigenous people. These efforts have helped it cultivate a strong and vibrant workforce that is representative of the New Zealand population, which in turn helps the brand appeal to a broader customer base.
Physical environment concerning Air New Zealand
Air New Zealand has put in a lot of effort to make sure that its physical environments are representative of the brand. It has strong partnerships with almost major airports in New Zealand, allowing it to use these facilities. It has a nice logo, and its website is user friendly as well.
Summary of the marketing mix of Air New Zealand
To recap, this article has taken a closer look at the marketing mix of Air New Zealand (7Ps of Air New Zealand). It can be said that the brand has successfully been able to identify its target customers and tailor its marketing strategies accordingly.
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Last update: 27 May 2022
References:
Air New Zealand (2022) Corporate profile, available at: https://www.airnewzealand.co.uk/corporate-profile (accessed 25 May 2022)
Downes, S. (2022) Why are international flights so expensive – and when will they get cheaper? Available at: https://www.stuff.co.nz/travel/news/128119448/why-are-international-flights-so-expensive–and-when-will-they-get-cheaper (accessed 25 May 2022)
Rains, T. (2022) The top 20 safest airlines in the world, according to experts, available at: https://www.businessinsider.com/safest-airlines-in-the-world-2022-1?r=US&IR=T (accessed 24 May 2022)
Waldron, G. (2022) Air New Zealand revenue drops, losses balloon in tough first half, available at: https://www.flightglobal.com/airlines/air-new-zealand-revenue-drops-losses-balloon-in-tough-first-half/147678.article (accessed 24 May 2022)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
