BUS 620 Managerial Marketing It Pays to Fly Full-Service

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Running head: IT PAYSIt Pays to Fly Full-ServiceRene Gonzalez Jr.Ashford UniversityManagerial Marketing BUS 620Larry FlegleNovember 28, 2011How can Delta Air Lines strategically differentiate its full-service business classofferings from low-cost carriers likeSouthwest Airlines, while considering factors suchas geographic market segmentation, customer needs, and operational efficiency? Providea comprehensive marketing plan with a focus on the value proposition for businesstravelers. (Minimum 1000 words)

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IT PAYS2It Pays to Fly Full-ServiceIn this essay Iwill create a nine-component marketingplanonflying full-servicebusiness classwithDeltaopposed toflyingwitha discounted low-fare carrier like Southwest.As the economy strugglesand air travel becomes more competitiveitisnot easy toestablishthebestnichemarketstrategyfor anairline.Teplensky defined(as cited inParrish, Cassill, &Oxenham, 2006)niche market strategy as, "an emphasis on a particular need, geographic,demographic, or product segment" (p. 695).Therefore,itwould be idealfor Delta toseekamore specific nichein air traveland differentiate bypreciselysatisfyingcustomers’needs; ratherthan attempting to generalizebroad niches thatonly partlysatisfycustomers’needs as a whole.Company Overview/ Description of LocationDelta Air Lines Inc. has their corporate headquarters in Atlanta Georgia.However,DeltaAir Lines Inc. has a vastworldwide airlinesystem. Deltaservesover160 million customersannually, and offers 356 destinations in 65 countries.Additionally,Deltahas over 80 years ofpassenger service,more than 80,000 employees,and 700 aircraftthatspreadacrosssixcontinents.Packed with an array of goodservices,Deltaoffersmore than 13,000 daily flights,SkyMilesrewards(frequent flierplan),theworld's largest airline loyaltypartnership,over 50Sky-Clubs, andanaward-winningBusinessElite program(Delta Air Lines Inc., 2011).Description of Product or ServiceFocusing primarily on business amenities,Deltahas aworldwidecollection of servicesforbusinessmen and businesswomen. They haveincentive SkyBonuses,extensive CorporateTravelAgreements,andtheirUniversalAirTravelPlans(UATPCard).The SkyBonus servicesallow small-to-mid-sized businessesbetter incentive rewardsfortheirbusiness travels. Forexample,earning more points than typicaltravelers, whichcan be easilyclaimedas:upgrades,

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IT PAYS3flightspurchases, andSky-Club passes. TheirCorporate TravelAgreementoffersa greatervarietyofdestinationswith afour-in-one worldwide airlinepartnership. Deltaevenprovides adedicated account managerto handleall businesstravelarrangements.The UATP Card allowsany businesses the means to closely managetheir travel expenseswithacentralized paymentsystem. Additionally, the UATP Card hasno annual fees, no depositlimits, and no per-cardcharges(Delta Air Lines Inc., 2011).Othercomprehensiveamenitiesthat Delta offers their business travelersare:BusinessElite,Sky Priorityseating, first class services, Sky-Clubs, SkyMiles,meetings/networking, private jets, shuttling/chartering,andWi-Fi.TheBusinessElite offersgourmetmeals,exquisitewines,full-sizepillows, flat bed seating, prioritybaggageservices,andstate-of-the-art entertainment. Everything in BusinessElite is intendedto help customers arriveattheir destinationon timeand refreshed. Within theDelta Sky Priority there is no need tostressorwait inlines. As aresult,valuabletime is saved atcheck-in,reservation desks,security,boarding, and baggage claim.Under the Delta meeting/network program an event organizer willcoordinate groupbusiness travel with 10 or more individuals.Additionally,inan efforttomakeinner citytransportation to-and-from the airporteasier,Delta provides privateshuttling/charter assistancetoo. Moreover,in situations that40 orfewer personnel need to be transportedDelta can easetime constraints withtheirtransit system. Even if there isa need for aspecializedprivatebusinesstravelarrangementDelta has 27 years of safety and heritagewith their private jetservices. Delta holds the highest and lonestARG/US Platinum safety rating of any otheroperation.Lastly, Delta can keepbusinessmenandbusinesswomen connected whether waitingattheterminal or in flight. Power outlets arealwaysconveniently located within armsreach, and

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