Song Airlines Answers 05 03 20 PDF

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04/03/2020

VIDEO : SONG AIRLINES

Dr Raphaël Akamavi

DISCUSSION QUESTIONS: 1. How would you describe Song’s positioning strategy? What is its value proposition? 2. How does Song offer a competitive low price while providing such high-quality service amenities? 3. Is Song’s primary focus on the female market appropriate? Why? 4. What are Song’s corporate, business, marketing and offering (product) strategies? Dr Raphaël Akamavi

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04/03/2020

1. How would you describe Song’s positioning strategy? What is its value proposition?

Dr Raphaël Akamavi

1. How would you describe Song’s positioning strategy? What is its value proposition? Song is positioned as a revolutionary brand in the fiercely competitive low-cost air travel market by offering in-air service facilities at a low price. Combining competitive advantages of both price and service, they target the value-seeking “discount diva” of the female market. Change Brand name Song offers facilities that research has revealed to be important evaluative criteria, such as an upper scale atmosphere, more room, leather seats, healthy meals, and 24-channel satellite TV. Other services available at extra cost include high-tech options, movies, drinks, and gourmet entrees. The focus is on a memorable entertaining travel experience and value, rather than the “cattle car” service of the low-price competition Dr Raphaël Akamavi

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04/03/2020

2. How does Song offer a competitive low price while providing such high-quality service amenities?

Dr Raphaël Akamavi

2. How does Song offer a competitive low price while providing such high-quality service amenities? • Three main strategies are cost optimization, human resource management, and selection of service options. Larger planes (with 70% more seats) are servicing more popular destinations with quicker on-ground turnaround times (usually 50 minutes), resulting in a 25% savings in operating costs, with a 30% increase in utilization and volume in numbers of flights. This has substantially lowered Song’s breakeven point. • Flight attendants are encouraged to work a more intensive schedule of longer hours through a new workforce model with fewer costly layovers. This includes more extended off-time periods. • Consumer research has guided a smart selection of service attributes, such as leather seats that last longer and are easier to clean, profitgenerating movie selections, gourmet chefs, and fashionable attendant uniforms that justify the cost through defining a vivid upscale image. Dr Raphaël Akamavi

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3. Is Song’s primary focus on the female market appropriate?

Dr Raphaël Akamavi

3. Is Song’s primary focus on the female market appropriate? • The fact that women make up 75% of leisure market travel decisions is significant in justifying a unique position for breaking through the massive chatter in airline advertising. • The appeal also influences the rising number of female business travelers. Perhaps, an attempt to add clarity and depth to this segment will result in analyzing Song’s growing customer base. Dr Raphaël Akamavi

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4. What are Song’s corporate, business and offering (product) strategies?

4. What are Song’s corporate, marketing and offering (product) strategies? • Corporate strategy: – Innovation strategy – Brand equity strategy – Investment strategy

• Business strategy: – Cost leadership – Differentiation – Focus – Combination of the above strategies – HRM Strategy – Operation strategy

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• Marketing strategy – Workforce management strategy – Segmentation and target strategy – Service quality strategy – Customer experience strategy – Customer satisfaction strategy

• Offering (product) – Service facilities – Service attributes

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