As you are all aware, our firm was among the four airlines chosen to implement the new sixteen domestic air routes. The process has been a success as the airline has experienced several positive results, such as reduced expenditure. The amount of revenue allocated was $200000. In our case, the actual expenses were $5000 less than the estimated cost of launching the new routes. Marketing plays a significant role in ensuring that the launch is successful. Although there were some challenges in the process, the stakeholders and different marketing strategies were used to overcome the challenges. Airlines have been opening new routes, but they fail due to a lack of excellent marketing strategies. It may be useless for a company to introduce a new and fail to market it. Moreover, the program was successful as it made a substantial profit as the difference between the income and the cost was positive (“How to market new routes”, 2017). The program’s profit was $11, 110 although it did not reach the estimated income of approximately $32 750.
The Green Airport launching was successful due to some strategies implemented by the marketing team. It may be challenging for new airlines to start a new route as firms with their hubs tend to be successful. The reason behind this is that the company has a well-established market. This makes it easier for the airline to introduce the new services because customers have a given degree of loyalty (“How to market new routes”, 2017). This acted as an advantage to our company as we conducted local billing without much struggle. Additionally, adopting low-cost carriers during the launching of the routes was vital to attracting more customers. Reducing the prices of the flights makes passengers more interested in the new routes. The primary objective is to persuade travelers to use the launched service, which serves as an excellent marketing strategy. Due to the promotions and gifts, the actual cost was $500, and this was more than the estimated cost of $300.
The introduction cargo carrier was also vital in making the launch successful. During some crises such as Covid-19, the passenger flights have been minimal due to some restrictions. As a result, the cargo carriers were active and provided an income of 9%. This value was much higher than the income earned from the first-class flights due to few passengers. Without the cargo carriers, the program may have faced some challenges due to reduced flights. Additionally, the marketing strategies focused on significant techniques such as publicity. It was one the primary techniques with the largest expenditure, which was $800 and more than the estimated expense of $500. This may have been contributed by the fact that the company was trying to reach a wide range of target customers. Investing a lot in social networks is another strategy that ensures the target market could get information about the new local routes (Cook & Billig, 2017). As a result, the company could get more revenue as people were familiar with the schedule. The launch of the program was successful due to strategic planning and budgeting. Although some of the budgets were more than the estimated cost, the total amount was less. This indicates that there was no wastage of resources hence profit.
References
How to market new routes as an airline (2017). Routes online. Web.
Cook, G. & Billig, B. (2017). Airline operations and management: A management textbook (1st ed.). Routledge.