Marketing Mix of Airbus (4Ps of Airbus)
This is a detailed analysis of the marketing mix of Airbus (4Ps of Airbus). It examines how the company devises its marketing mix techniques to target the customers and influence their buying decisions.
Product Strategies of Airbus
Airbus is an internationally recognised company in the aerospace sector. Its product portfolio includes commercial aircraft, helicopters, satellites, launch vehicles, and military transports. It also provides data services, secure communications, navigation, urban mobility, and other services for its customers around the world (Airbus, 2021).
The products of Airbus are known to be of a high standard. The company maintains this high standard in order to remain competitive in the market. It has been working for a long time on reducing the C02 emissions of its aircrafts. However, some of its products have failed badly. For instance, it decided to end the production of A380 superjumbo within just 12 years of service because of the lack of demand and fierce competition (BBC, 2019).
Pricing strategies of Airbus
The demand for aircrafts and the competitors’ pricing strategies affect the pricing strategies of Airbus. The customization that is required by the customers also plays a role in determining the final price of an aircraft. For some product ranges, Airbus uses the bundle pricing strategy. This strategy increases the trial rate of products by customers which increases the sales of the company.
Airbus also charges premium prices for some of its products and services. For instance, A380 is a very expensive aircraft model (Statista, 2020). Similarly, A350 is expensive as well. However, the premium pricing is not very useful sometimes as evidenced from AirAsia’s decision not to buy A350 because of high price (Reuters, 2018).
Place/Distribution channels of Airbus
Airbus delivers all the aircrafts to the customer’s desired location. It operates a website by which customers can place their orders from any part of the world. It also sells its products through licensed stores. Through this method, it is able to get a more in-depth knowledge of the customer needs and requirements.
Promotion strategies of Airbus
Airbus promotes its products at Air shows. For example, it takes part in the Paris Air show. It also has very good social media presence. Direct interaction on social media with consumers helps it understand their requirements and thereby increase sales. It also advertises on television, newspapers, and magazines.
Sales promotions play a big role in the marketing mix of Airbus (4Ps of Airbus). A research by Statista (2020) suggests that it is a common practice for the company to offer 50% discounts to airlines. Surely, this is huge and eat out the company’s profit margins; however, it is argued that this is indeed necessary to retain the key customers.
We hope the article Marketing mix of Airbus (4Ps of Airbus) has been a good read. You may also like SWOT analysis of Airbus (Airbus SWOT). Other relevant articles for you are:
If you liked this article, please share it by clicking on the social sharing icons.
Last update: 28 July 2021
Airbus (2021) What we do, available at: https://www.airbus.com/company/we-are-airbus.html (accessed 27 July 2021)
BBC (2019) Airbus scraps A380 superjumbo jet as sales slump, available at: https://www.bbc.co.uk/news/business-47231504 (accessed 27 July 2021)
Reuters (2018) AirAsia X won’t buy ‘too expensive’ Airbus A350: co-group CEO, available at: https://www.reuters.com/article/us-airasia-x-airbus-idUSKBN1HN102 (accessed 28 July 2021)
Statista (2020) Airbus aircraft – prices 2018, available at: https://www.statista.com/statistics/273962/prices-of-airbus-aircraft-by-type/ (accessed 25 July 2021)
Author: Fahim Shah
Fahim Shah has been working in the UK as a visiting lecturer in Business and Tourism for the last 10 years. After completing a Bachelor’s degree in Business and Marketing, he went on to gain an MBA from the University of Bradford, the UK. He is a Fellow of Advance HE (FHEA) and a full member of the Association of Business Executives (ABE).