Sri Lankan Airlines A Grader

Marketing Planning Process Membership No.
12361491
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Marketing Planning Process Membership No. 12361491
540 - Marketing Planning Process

CIM Membership No: 12361491
Option 01 – Growth of an existing service into a new international market -

Australia
Task One = Marketing Audit - 06 Pages

Task Two = 3,179
Task Three = 3,272
Total Word Count = 6, 451
(Excluding executive summary, headings, schedules and figures with tables)
‘I confirm that in forwarding this assignment for marking, I understand that I have applied the CIM policies
relating to word count, plagiarism and collusion for all tasks. This assignment is the result of my own
independent work except where otherwise stated. Other sources are acknowledged in the body of the text,
a bibliography has been appended and Harvard referencing has been used. I have not shared my work with
other candidates. I further confirm that I have submitted an electronic copy of this assignment to CIM in
accordance with the regulations.’
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Table of Contents
Task 02 – Marketing Plan
Executive Summary................................................................................................................................................................ 05
1.0 Situational Analysis...........................................................................................................................................................05
1.1 Current Position...................................................................................................................................................05
1.2 Critical Issues........................................................................................................................................................05
1.3 Other Issues.........................................................................................................................................................06
1.4 Over View of the market......................................................................................................................................06
1.5 Competitor Analysis.............................................................................................................................................06
1.6 Future Trends.......................................................................................................................................................07
1.7 TOWS Matrix........................................................................................................................................................07
2.0 Campaign Objectives.........................................................................................................................................................08
2.1 Financial Objectives..............................................................................................................................................08
2.2 Marketing Objectives...........................................................................................................................................09
3.0 Strategy Formulation.........................................................................................................................................................09
3.1 Marketing Segmentation......................................................................................................................................09
3.2 Targeting Approach..............................................................................................................................................10
3.3 Positioning...........................................................................................................................................................11
4.0 Marketing Mix Programme................................................................................................................................................12
4.1 Product Strategy..................................................................................................................................................12
4.2 Price Strategy.......................................................................................................................................................12
4.3 Distribution Strategy............................................................................................................................................12
4.4 Promotion Strategy..............................................................................................................................................12
4.5 Extended Marketing Mix (People, Process & Physical Evidence)...........................................................................13
5.0 Implementation & Control.................................................................................................................................................14
5.1 Schedule of the Key Activities...............................................................................................................................14
5.2 Resource Allocation..............................................................................................................................................15
5.3 The Balance Score card.........................................................................................................................................15
Task 03 – Evaluation Report
Executive Summary................................................................................................................................................................ 17
6.0 Explanation and assessment on the ways in which marketing planning can benefit Sri Lankan Airlines?............................18
6.1 The Marketing Planning Process...........................................................................................................................18
6.2 Benefits of Marketing Plan....................................................................................................................................19
7.0 Critical Evaluation of Marketing Audit................................................................................................................................20
7.1 Importance of undertaking a Marketing Audit......................................................................................................20
7.2 Characteristics of an effective Marketing Audit....................................................................................................20
7.3 Components of Marketing Audit..........................................................................................................................21
7.4 Information Gathering & Analysis........................................................................................................................22
8.0 Explanation & Justification of the competitive strategy.....................................................................................................23
8.1 12C Frame work for Australia...............................................................................................................................23
8.2 STP Strategy.........................................................................................................................................................25
8.3 Development of the Marketing Mix......................................................................................................................28
8.4 Performance evaluation of the Marketing Plan....................................................................................................28
9.0 Identification of issues associated with implementation....................................................................................................29
9.1 Proposal for developing an action plan.................................................................................................................30
10. Conclusion.........................................................................................................................................................................30
Appendix 01 – Company Back Ground.....................................................................................................................................31

Appendix 02 – Marketing Audit...............................................................................................................................................33
Appendix 03 – Balance score card............................................................................................................................................39
Reference & Bibliography........................................................................................................................................................40
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Task Two
Sri Lankan Airlines Medium Term Marketing Plan
2015 - 2017
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Executive Summary
Sri Lankan Airlines is the national flag carrier of Sri Lanka, an award winning airline well known as one of
the worlds’ friendliest airlines, with a firm reputation as a leader in service, comfort and safety in the Asian
region, connecting the nation to 68 destinations in 34 countries. Despite the rapid growth of the industry and
the continuous effort of the company to improve in terms of service, products & safety, the growth rate of the
company has been merely 2% for last 05 years. Reason behind the low growth rate has been identified as there
has not been significant new market development taken place for last decade. In order to exploit the
opportunities in this fast growing international market and to attract the potential customers company should
develop a strategy which will be effective in attracting not only individual buyers, but also corporate buyers.
A medium term marketing plan outlining a promotional strategy in order to increase the growth of existing
services into a new international market which is Australia has been specified below. Marketing plan is
scheduled to be implemented from 2015 to 2017.
1.0 Situational Analysis
1.1 Current Positioning
 Sri Lankan Airline is the national airline of the Sri Lanka and it has ranked as 04th in Central and
South Asia by Skytrax in 2013. ( Please refer Appendix 02- competitive advantages)
 Current growth strategies adopted may include combination of all four strategies available. ( Please
refer Marketing Audit Appendix 02- Ansoff’s Matrix)
 Sri Lankan Airline has reached to its maturity level in its Product Life Cycle and there is a real
necessity of new market development to avoid leading to declining stage. ( Please refer Marketing
Audit Appendix 02)
 Due to lack of brand visibility and PR the brand has not been properly positioned in the market.
(Please refer Marketing Audit Appendix 02 – Marketing Function Audit)
 Loyalty programme which Sri Lankan had earlier, ‘Fly Smiles’ was not effective, but with entering in
to Oneworld alliance it will uplift the standards and benefits of the loyalty programme. ( Please refer
Marketing Audit Appendix 02)
 Financial Background of the company is not very stable since 2009. ( Please refer Appendix 1)
 The growth rate of the company is fairly low according to the potential due to low level of presence in
potential markets and destinations. ( Please refer Marketing Audit Appendix 02)
1.2 Critical Issues
Issue Description
High Level of competition Competition is high due to low level of product differentiation between the competitors
in the industry in the region and emergence of low cost airlines.
Lack of opportunities to Currently SL Airlines own 52.2% of market share on its Sri Lankan market and fairly
grow in existing markets satisfactory market share of other destinations. With this it does not enable SL Airline to
grow in currently operating markets as they expect.
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Airline industry continues to grow. Despite the continuous expansion, the growth of the
Declining growth rate of company in terms of passenger traffic is declining. Ineffective promotional strategies
the passenger traffic due targeted towards potential customers, less attraction in promotions, decline in service
to low loyalty standards, low in-flight entertainment facilities compared to competitors have been
identified as the major reasons to the low passenger loyalty .
High level of This has affected the internal marketing and the level of employee motivation and the
centralization and decision making process has been hindered.
bureaucracy
Profit margins are declining due to the increased taxes imposed on the airlines and fuel
prices. Company is not able to impose increased taxes on customers or lower service
Declining profit margins standards and quality of the products. Therefore Sri Lankan airline has to maintain
service standards in order to attract new customers and frequently offer new products to
increase the loyalty. This will enable SL Airline to enter to a new potential market and
maximise its revenue and profits.
Lack of Brand visibility Compared to competitors operates in the region brand visibility of Sri Lankan airlines is
not adequate enough.
Table: 10 Critical issues
1.3 Other Issues

1. Infrastructure Issues
As company has several software solution providers form that they take the service form. The level of integration
between the systems used is low. Besides that manual feeding of data for data-migration between systems
duplicate the work.
2. Safety and security issues
Recent raids conducted by Sri Lanka Customs found large quantities of drugs and gold, raised concerns on
security standards of the company.
The marketing audit has been undertaken in order to analyze the current position of Sri Lankan airlines in macro
& micro environments.
1.4 Over View of the market

(Please refer appendix 2, Marketing Audit for detailed analysis)
External Environment Detailed PESTLE analysis was undertaken in order to understand the effect of the
external forces on the organization.
Internal Environment Detailed analysis was undertaken in order to analyze the internal environment.
1.5 Competitor analysis

Please refer Appendix 01 for market position of key competitors in terms of passenger traffic and proportions of
passenger traffic by the class travelled.
Please refer Appendix 2 Marketing Audit for market position of key competitors in terms of number of aircrafts,
destinations covered. Skytrax ratings, airlinetrends.com ratings (please refer Table 12)
In order to compare the sources of existing advantages that airlines may have over each other, Davidson’s sources of
competitive advantage model could be used. (Please refer Table 11)
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Source Sri Emirates Cathay Airline Skytrax Airline of the
Lankan Pacific Star year Rating
Superior Product Benefits Medium High Medium Rating (Skytrax)
Perceived advantage High High Medium
Sri Lankan 03 68
Low cost operations Medium High Low
High High High Emirates 04 01
Legal advantage
Superior contacts Medium High High Cathay 05 06
Superior relationships Medium High Medium Pacific
Superior competencies Medium High High
Table: 11 Sources of competitive advantage – Davidson’s Table: 12 Competitor comparison: Skytrax
As per the Skytrax research audit findings Emirates stay ahead of the competition in terms of products and the service
quality. But as per the customer satisfaction survey done by the Skytrax Sri Lankan airline has been perceived as a
better service provider.
1.6 Future Trends

A detailed analysis was undertaken in the audit in order to identify the current competitive position of Sri Lankan
airlines, trends in the industry and where the power lies, using porter’s five forces analysis. (Refer Appendix 2, Table
04)Here I have further analyzed the future trends in the industry based on the audit undertaken.
1. The bargaining power of the aircraft suppliers may be reduced due to the technical faults of the new models
introduced by both Boeing and Airbus.
2. The bargaining power of the buyers can be reduced through the introduction of effective loyalty programs.
Apart from that alliances between different airlines may allow the airlines to wider their horizons in terms of
destinations, frequency and travel routes while offering better benefits to the travellers.
3. The economic development of Sri Lanka and improvement of tourist attraction may result in increased
passenger numbers. This will help SL Airline to assess the feasibility of entering new potential markets.
4. Due to the high growth rate in the airline industry, it is attractive for the investors. The key competitors of Sri
Lankan airlines have already diversified its investments to budget airline segments and try to increase their
market share through acquisitions and alliances.
5. The increasing popularity of Cruise Travels and low cost airlines is a considerable threat for the airlines such
as Sri Lankan airlines. Due to the high cost of air cargo, sea cargo is used as an economical alternative.
1.7 TOWS Matrix

In order to match the internal strengths & weaknesses of the organization with the external opportunities and threats
here the TWOS matrix can be used .It allows for the systematically identification of each of the factors and
development of strategies based on them.
External Opportunities External Threats

1. High Growth rate of the industry. 1. Emergence of low cost airlines and
2. Growth in high quality conscious increase of price sensitivity in the low
and less price sensitive customer end segments of the market.
segments. 2. Political instability of the region.
3. Development of the country and 3. Restricted access to air routes and
political stability. airports to protect national airlines
4. Development of information from foreign competition.
technology and use of internet and e- 4. Global economic crisis and hike of
commerce. fuel price.
5. Development in aircraft 5. Natural disaster, terrorist attacks,
technologies. communicable diseases and other
6. Emerging new markets due to environmental factors, which may
migration & employment opportunities affect the airline industry directly.
out of the country (ex: Australia)
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Internal Strengths SO ST
1. Brand Recognition-One of biggest “Maxi –Maxi” Strategy-Strategies that “Maxi –Mini” Strategy Strategies that
and reputed airline’s in the region. use strengths to maximize the that use strengths to minimize threats
2. Member of One World alliance. opportunities.
3. Differentiation through customer
orientation and high quality. 1.Improved marketing to attract more 1.Introduction of loyalty based
4. Loyal, profitable and less price customers.(S1& 5 = O1) benefits to attract price sensitive
sensitive customer base. 2.Use of e-commerce to eliminate customers segments.(S2 & 09 = T1)
5. Government support in terms of mediators and achieve cost 2.Diversifying investments to low cost
capital infusion. advantages.(S7 = O3) airline segment through acquisitions
6. Strategic geographical location 3.Cost savings through automation in and alliances to increase the market
advantage. on-ground process & fuel efficient share.(S5=T1)
7. High level of technological aircrafts.( S5 & 7 = O3 & 5 ) 3.Acquiring memberships of global
infrastructure. 4.Segmentation and targeting for better airline alliances may percent cost
8. Highly trained and experienced market penetration.(S1 & 9 = O1 & 2) savings and access to restricted air
Staff. 5.Improve service products quality routes(S1 & 2=T3)
9. Ability to segment the market and standards (S3, 5 & 8 =O1 & 2) 4.Use of new fuel efficient aircraft
establish different levels of services technologies(S5=T4)
and pricing decisions.
Internal Weaknesses WO WT
1. Company & its services are at the “Mini –Maxi” Strategy-Strategies that “Mini-Mini” Strategy-Strategies that
Maturity stage of its PLC. minimize weaknesses by taking minimize weaknesses and avoid
2. Highly centralized management advantage of opportunities. threats.
hierarchy, formalization and narrow 1.The organic growth strategy should 1.Inorganic growth strategies to tap the
span of control in the bottom of the be combined with inorganic growth price sensitive segments of the
hierarchy. strategies such as acquisition and market.(W1,4 & 6 = T1,3 & 4)
3. High cost of maintaining matrix mergers, which may give shorter term 2.Decentalization of power to
structure. ROI compared to a organic growth improve the speed of response to
4. Low level of diversification. strategy.(W1,4 & 6 =O1) PESTLE factors.( W2=T5)
5. Seasonal nature of the demand. 2.Use of technology for improved
6. High level of investments needed & communication to support global scale
long term ROI. operation.(W3,7 & O=04)
7. Complexity in the global scale 3. Effective revenue management to
operation. manage the seasonal nature of the
8. Lack of internal marketing. demand & improve the load factor.
(W5=O1&4)
Table: 13 TOWS Matrix, source: Heinz Weihrich, Professor of Management, University of San Francisco
2.0 Campaign Objectives

2.1 Financial Objectives
 To increase operating profit by 10% by end of 2017
 To increase annual revenue by 57.2% from 2015 to 2017
 To achieve 15% ROI by end of 2017
 To increase cash flow by 20% by end of 2017
 To reduce operations and other expenses by 20%
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2.2 Marketing Objectives

Marketing Objectives Marketing Strategy
Gain market share of 0.05% of Australian market  Main focus will be on developing new market which is
which is Rs.68,380 Mn by end of 2017 Australia and start its operations effectively. Apart from that
implementation of other 03 growth strategies would help to
Sales increment by 57.2% by end of 2017 through do better in markets which SL Airline presents.
market development in to Australia  Increase awareness on Sri Lankan tourism and it popular
To increase Business class passenger base up to destinations in targeted Australian market.
15% by end of 2017  Start its operations on Melbourne, Sydney, Perth, Victoria &
To increase Home ( Sri Lanka’s) market share up Queensland cities which has more potential customers.
to 65% from 52.2% ( Please refer Appendix 01)  Introduction of direct flights which does not exist currently
 Effective usage of CRM & implementation of sophisticate
CRM system to assist
 Implementation of ERP ( Enterprise Resource Plan) solution
to improve the level of integration
 Recognition of customer requirements and market trend and
opportunities through market research
 Alliance with the most prestigious global alliance which is
Oneworld in order to gain customer attraction and increase
loyalty
Reposition Sri Lankan Airlines brand and  Increased advertising, Sponsorship agreement for ‘Rugby
increase brand awareness and visibility 7’s Tournament’ which is the most popular rugby
tournament in Asia & Asia Pacific region.
 CSR programmes and Green Marketing
 Use of new and social network media
To be the No 01 airline in Asia  Improved internal marketing, services and product quality
standards
 Recognition of weak points of the service process through
the analysis of Skytrax research survey and development
Table: 14 Marketing Objectives
3.0 Strategy Formulation
3.1 Marketing Segmentation

Please Refer Appendix 1 customer segmentation and profiling of Sri Lankan Airlines
3.1.1 Segment Evaluation
In order to identify the most profitable segment that Sri Lankan Airlines should focus on to achieve its objectives,
IBM’s Value Based Customer Segmentation, which allow the segmentation of the passengers based on monetary
value and Travel frequency. Apart from that I have identified the respective drivers of each of the segments in order to
develop value proposition that suits the best and proportions of the each segment.
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High Corporate Masses High-tire road warriors Global stars

US$ 1.75/4 trips per year US$ 3.25k/7 trips per year US$ 4.1k/12 trips per year
Miles Flexibility Recognition
11% 13% 14%
Snowbirds Captains of the industry Low-tire road warriors
US$ 1.05k/2 trips per year US$ 1.9k/6 trips per year US$ 3.15k/12 trips per year
Excess Baggage Status & prestige Legroom
3% 10% 8%
Monetary
Far East Asia& Latin Hoppers Domestic young blood
Value Transfers US$ 1.2k/6 trips per year US$ 2.65k/10 trips per year
US$ 0.9k/2 trips per year Seamless transfers Perks
Language speakers 11% 8%
3%
Dormant Short term project Regional flyers
US$ 0.45k/2 trips per year US$ 0.8k/5 trips per year US$ 2.45k/8 trips per year
Non-air earnings Convenience Nonstop services
2% 5% 12%
Low
Low Frequency of Travel High
Figure: 14 IBM Analysis (Source: IBM Analysis)
Based on the above analysis company will be able to set acquisitions, development, retention and conversion rate
targets for each of these segments, pursue strategies for lowering the cost of serving low value passengers, invest more
on high value passengers and develop targeting strategies unique to each segment in the selected Australian market
under new market development..
Having analyzed above segmentation it is suggested that the airline should give more emphasis on the segments with
higher frequency and higher value.
3.2 Targeting Approach
Differentiated
Segment Targeting
Undifferentiated Concentrated
Broad Traget Narrow Targeting
Targeting
Strategies Figure 15: Targeting approaches
Due to the different characteristics of the segments & respective drivers that each segment driven by it is advisable for
Sri Lankan Airlines to go for a differentiated targeting strategy.
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3.3 Positioning
Sri Lankan Airlines is positioned in the market as a high quality brand with a premium price comparing to other
airlines in the region. To position Sri Lankan airlines as a carrier where nits passengers feel like being at home at
30,000 feet, until they reach their destination.
This aspiration driven positioning strategy is ideal for the high quality, convenience, comfort conscious and less price
sensitive segments such as High and low road warriors, global stars and captains in the market. But it is not
appropriate for the price sensitive segment in the market. Therefore Sri Lankan should develop a positioning strategy
based on the characteristics of each of the segments identified.
With the implementation of the proposed marketing strategies the company will be able to deliver better benefits and
higher perceived value for the customer. Based on the benefits, Sri Lankan airlines brand can be repositioned using
different set of positioning prompts in order to differentiate and occupy and occupied position in the market to gain
competitive advantages.
Marketing Strategy Benefits delivered to customers Positioning prompts

Direct flights Convenience, less time consumption Benefit driven
Oneworld Alliance Seamless transfers, flexibility and convenience Benefit driven
Cooperate sector benefits
Customer Relationship Tailor made combination of products & Problem solution, Target driven
Management System services with attention to individual needs
Ethical Marketing To be a part of good cause Emotions driven
Sponsorship Brand association Emotion and Aspiration driven
Table: 15 Positioning Strategy
Below perceptual maps may represent how Sri Lankan Airlines could position against the respective drivers of their
target markets in order to deliver a higher perceived value.
Sri Lankan = Emirates = Cathay Pacific=
High Price Seamless transfers, flexibility & Personalized service

convenience
High Quality Cooperate sector benefits Cooperate citizenship
Figure 16: Perceptual Maps of SL AIrline
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4.0 Marketing Mix Programme

Here I will discuss the development of the marketing mix strategy in order to achieve the objectives of the
organization. (Please refer Appendix 2, Marketing function audit for the current analysis)
4.1 Product Strategy
As the airline industry is in its maturity stage the competition does not take place at the basic product level, but at the
augmented product level. Monitor and ensure consistent improvements in service delivery of front line staff, cabin
ambiance, and technological advancement of on-time performance. Sri Lankan airline has the potential to develop the
products at augmented and potential levels in following ways:
 Alliance with the ‘Oneworld ‘ global airline alliance to provide better loyalty benefits for the frequent
travellers and provide significant competitive advantage over the key competitors as they do not have any
alliance with global airline alliance.
 Through effective use of CRM personalization of product and services.
 Introduction of facilities such as on-air mobile service, Wi-Fi onboard and limousine services.
4.2 Price Strategy
Existing premium pricing strategy may not suit the price sensitive segments of the market and price based promotions
may result in brand dilution and price wars. Low price alone is inherently imitable by the large players in the market
and therefore not a substantial competitive advantage. Furthermore the low prices may deliver higher market share but
at the cost profit. Therefore it is suggested Sri Lankan airlines adopt a value based pricing strategy where the company
offer unique or highly valuable features with the product and service offer in order to better position the brand and
distinguish from the competition. Use yield management techniques to capture more revenue by setting differentiated
pricing based on the time of booking.
4.3 Distribution Strategy
Incorporate experiential elements in the cost effective e-commerce platform to effectively deliver the flexibility,
responsiveness, control when customers plan and book their flights through corporate website. Sri Lankan airline has
focused on opening up ticketing offices in prestigious locations in major cities.
4.4 Promotion Strategy
ATL Increased media presence in press & media with incorporation of CSR, sponsorship and global airline
alliance with Oneworld
PR and CSR programmes
BTL Sales promotions
Event and sports sponsorships
TTL Launch an interactive social media campaign to increase the fan base and emails should be used as a
tool to direct customers for promotions and customer satisfaction surveys
Table: 16 Promotion Strategies
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4.5 Extended Marketing Mix Strategy

In the strategy development for the components of the extended marketing mix (People, Process & Physical Evidence)
the SERQUAL model could be used.
Marketing Mix component SERQUAL Component Relevant aspects of the Sri Lankan Airlines
service delivery
People Responsiveness Individual attention
Empathy
Assurance Competence
Process Reliability Ease, Quality & Variety
Physical Evidence Tangibles Quality
Table: 17 SERQUAL model on value proposition of SL Airline
Most of the value proposition and the customer values that the company intended to deliver consist of the intangible
aspects of the service and related to the extended mix of the marketing. The strategies in which each of these aspects
could be developed have been described below.
4.5.1 People Strategy
Align the front line staff with the brands’ values by providing adequate training on managing customer interactions,
improving service quality and ensure consistency to make the Sri Lankan a 5-Star rated airline.
The above described aspects can be achieved from the people element in following ways:
 Development of internal marketing in order to motivate and educate staff
 Marketing orientation throughout the organization
 Employee reward programme
 Training and development to improve not only interpersonal skills, but also attitudes
 Empowerment through decentralization of power
4.5.2 Process Strategy
Sri Lankan airline is a process driven organization and it has been one of the reasons behind the high quality and
consistency in the service delivered to the customers. Sri Lankan can further improve its service delivery process in
following ways:
 Streamline the service delivery process (reservation, inventory and departure control system) through the
comprehensive passenger service system- Amadeus Altea Suit.
 Implementation of ERP solution to manage data, improve communication and cross-functional coordination
 Implementation of CRM techniques such as Key client relations to manage profitable accounts
 Process should be developed to monitor customer satisfaction level and market response.
 Process should be benchmarked against major competitors and best industry practices.
 The adaption of existing process to comply with quality management systems such as ISO 9001 or TQM
should be considered.
4.5.3 Physical Evidence
Physical evidence in the marketing mix is very important as it can be used to meet the tangible aspects of the service
offered. Apart from that this could be used to differentiate the service experience. The physical evidence is made up
from its ambient conditions, spatial layout and functionality, signs and symbols.
Continuously monitor the quality and maintain the standards of all ‘tangibles’ at every customer touch point especially
with the main focus on cabin staff attire, cleanliness and ambience. Cooperate image and identity are supported by
cooperate branding. Here branding of Aircrafts, premises and staff uniforms needs to be taken in to consideration.
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5.0 Implementation and Control
5.1 Schedule of the Key Activities (2015)

Marketing Marketing Activities Responsibilities 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Mix 2015 2015 2015 2015
J F M A M J J A S O N D
Infrastructure Head of IT
Development &
‘Oneworld’ system
integration
Product Market research
On board service
improvements(Installation
of on air mobile & Wi-Fi) Head of Sales
‘Oneworld’ product & Marketing
launch
Launch of direct flight
operations
Price Competitor pricing Head Of
Analysis Finance
&Revenue
management
Opening Flagship Head of Sales
ticketing offices in major and marketing
cities
Place Optimization of online
booking channels
Website development and Head of IT
maintenance
Channel development Head of Sales
and marketing
TV Advertising
Print media
Radio
Sales Promotions
Promotion Sponsorships Head of Sales
Direct marketing and Marketing
Social media marketing
Personal selling
Training and development Head of HR
People Employee reward
programme
Implementation of Head of IT
Amadeus Altea Suite
,ERP & CRM systems
Process Customer satisfaction Head of Sales
survey and Marketing
Implementation of quality Head of Quality
management system Assurance
Branding Head of Sales
Physical and Marketing
Evidence Aircraft recognition Head of line
maintenance
Table: 18 Schedule of key activities Page 14 of 40
5.2 Resource Allocation
Activities Total cost

Rs. 000,000
Infrastructure development and ‘Oneworld’ system integration 7.5
‘Oneworld’ product launch 2.5
On board service improvements (Installation of mobile and Wi-Fi) 25
Market research 3.75
Opening of ticketing offices in major cities 30
Optimization of online booking channels 7.5
Website development and maintenance 3.75
Channel development 2.5
TV Advertising 33.5
Print media 12.5
Radio 7.5
Sales Promotions 15
Sponsorships 300
Direct marketing 25
Social media marketing 2.5
Personal selling 17.5
Training and development 25
Employee reward programme 12.5
Implementation of Amadeus Altea Suite ,ERP & CRM systems 5
Customer satisfaction survey 1.25
Implementation of quality management system 1.25
Branding 7.5
Aircraft recognition 100
Total Cost 648.5
Table: 19 Resource Allocations
5.3 Balance Score Card
Please refer Appendix 03 for the Balance Score Card
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Task Three
Sri Lankan Airlines Evaluation Report
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To : Senior Management of Sri Lankan Airlines
From : Marketing Manager
Date : 01st of December 2014
Subject : Evaluation Report of Sri Lankan Airlines
Executive Summery;
Sri Lankan Airlines is the state-owned flag carrier of State of Sri Lanka and it is one of the few airlines in the world to
be awarded as the “world’s friendliest cabin staff” rating by Skytrax.
In relation to the average industry growth rate of over 5 %, the growth of the company in terms of passenger traffic
has been an average of 2% for last 05 years despite the increased number of aircrafts, destinations and frequency. The
rationale behind the low growth rate of passenger numbers has been identified as low level of customer loyalty and
lack of potential to grow in its currently operating markets. The major reasons behind the issues as identified in the
marketing audit may include problems with customer relationship management, decline of service delivery standards
& branding and positioning.
The customer relationship management processes of the company has not implemented techniques such as key client
relations and CRM systems to manage the high income customer segments and the current loyalty program of the
company does not offer cooperate sector based benefits. The degree of visibility and incorporation with sponsorships
and CSR projects of the company with the brand is not adequate. In order to position the company in the market to
gain a competitive advantage, lack of product differentiation has been an issue as major competitors also have similar
offers.
Despite the continues effort to improve its services and products offered to the passengers the company has not been
able to maintain its position as “world’s friendliest cabin staff” recently and it is an indication of the decline in service
delivery standards. This has a strong connection with poor internal marketing, level of employee motivation
orientation.
Apart from above mentioned reasons one of the major reasons to this has been identified as lack of market
development in most potential regions such as Asia Pacific. (Ex: Australia)
Due to the economic growth, political stability and strong international relationship of the country with Australia will
allow Sri Lankan airlines to take the maximum out of this development.
The evaluation report will be carried out to address the below areas in relation to the marketing audit and marketing
plan proposed for Sri Lankan airlines.
1. How marketing planning can benefit Sri Lankan airlines?
2. The role of marketing audit as a part of marketing planning process and identifying the problems associated with
information gathering and analysis.
3. How an appropriate competitive strategy has been developed as a part of the plan?
4. Problems that may encounter in the implementation of the marketing plan and practical proposals for resolving
them?
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6.0 Explanation and assessment on the ways in which marketing planning can
benefit Sri Lankan Airlines?
Marketing planning is essential to the success of the company as it provides the basis from which all the other
operational and management plans are derived from.
According to McDonald & Wilson “ Marketing planning is simply a logical sequence and series of activities leading
to the setting of marketing objectives and the formulation of plans for achieving them “ & they further state “
The overall purpose of marketing planning and its principle focus is the identification and creation of sustainable
competitive advantage “
According to Dibb & Simkin (2008) “ Marketing planning is a systematic process involving assessing the
marketing opportunities and capabilities, determining marketing objectives, agreeing target market and brand
positioning strategies, seeking competitive advantage, creating marketing programme , allocating resources and
developing a plan for implementation and control .”
In the context of Sri Lankan airline, the marketing audit has been carried out to identify the current situation of the
company and marketing plan has been developed to determine the future activities to be performed in order to
improve the customer conversion rate from initial enquiry through to purchasing the service.
6.1 The Marketing Planning Process

The marketing planning process consists of the following main stages;
Factors Sri Lankan Airlines Description
Analysis Where are we now? Here an analysis will be done on both internal and external
environment in order to where the company stands in terms of
market position, resource and capabilities, strengths and
weaknesses. Furthermore it will give an idea about the other
factors in the external environment that may affect the
organization and industry in general
Planning Where do we want to be? Here the objects will be defined on where the company wants to
be and strategies will be developed based on resources and timing
available
Implementation How do we get there? The developed strategies will be implemented as per the
scheduled timing and allocated resources.
Control How do we ensure our In order to ensure that the set objectives are achieved the
arrival? performance will be measured against the set objectives using
performance metrics and control mechanisms will be introduced.
Table : 20 Stages of Marketing Planning Process
Page 18 of 40
6.2 Benefits of the marketing Plan
To identify the benefits of the Sri Lankan Airline’s marketing plan, Drummond’s reasons for planning could be used
as a framework.
Advantage Description Impact on Sri Lankan Airlines

Through marketing planning Sri Lankan
As strategies are based on the factors such as current can adopt its marketing mix according to
Adopting for position, resources, capabilities and core competencies it the changes in the external environment
changes enables Sri Lankan to be proactive & offensive rather while keeping the organizational
than being reactive & defensive. This will minimize the directions set. (Please refer Task 2 / 4.0
company being pushed and pulled in multitude directions Marketing mix Programme) Further
in reacting to changing market conditions. more it will develop the response time
for changes.
Through marketing audit the organization can identify the

resources needed in order to take the maximum out of the Through marketing planning Sri Lankan
Resource opportunities arise. Here the requirements on resource Airlines can manage resources more
allocation elements (6Ms) Material, Machine, Man, Method, Money effectively & efficiently in order to
and Minutes will be taken into consideration. achieve its marketing objectives set.
Furthermore it will identify the gaps in the current (Please refer Task 2 /5.2 resource
resource allocation and its effective utilization. allocation)
Marketing plan can be used as a vehicle

Marketing planning will provide a common base for for communicating the organizational
Consistency everyone to work as it acts as a point of agreement on objectives and the role that everyone
objectives, strategies and tactics set. It gets everyone plays. Apart from that they should
aligned, contributing and unites the organization in ensure that everyone is agreed to the
achieving the organizational goals. objectives set. (Please refer Task 2 / 2.2
Marketing Objectives)
Sri Lankan Airlines should identify the

gap between the external and internal
Integration Marketing planning integration and coordination of all marketing communication and
marketing activities can be achieved in order to generate synchronize. Proper coordination and
synergy. (Please refer Task 2/ 4.0 Marketing Mix integration of the marketing activities
Programme) will generate synergy that will help
achieve the objectives set.
Effective communication is the key to

Communication As discussed the marketing plan can be used as a vehicle the successful implementation. Clear
& Motivation to communicate the strategic intent to its stakeholders. communication on role of employees
and how they can contribute to the
success will generate sense of ownership
and motivation.
Marketing plan provides a framework to measure and

control. In the plan Key Performance Indicators (KPI’s) Effective monitoring and control ensure
Control can be set and monitoring mechanism can be developed. the resources are used effectively and
Through the marketing audit the company can identify efficiently and set objectives are
the controllable elements and this could be used to achieved with in the given time period.
control the resource elements identified.
Page 19 of 40
Table : 21 Drummond’s reasons for planning
7.0 Critical evaluation of marketing audit as a part of the marketing planning
process and identification of problems associated with new information
gathering and analysis encountered in undertaking the marketing audit
7.1 Importance of undertaking a Marketing Audit

Airline industry is a highly sensitive industry to the changes of the external market conditions. On the other hand it is
one of the rapidly growing industries with promising profit potential. Therefore, provided that Sri Lankan airline
identifies the internal strengths and weaknesses, and external opportunities and threats the company can take the
maximum out of these opportunities and manage threats to minimize the negative impact of them on the organization.
Marketing auditing will be an essential tool to achieve these tasks.
In the context of Sri Lankan airlines a marketing audit has been undertaken in order to analyze the internal and
external environments and based on this a marketing plan has been developed to identify and implement its strategies
in order to increase its growth rate by introducing its services to Australian market.
Kotler and Keller (2006) defined marketing audit as “ A comprehensive, systematic, independent and periodic
examination of a company’s or business unit’s marketing environment, objectives, strategies and activities with a
view of determining problem area and opportunities, and recommending a plan of actions to improve the
company’s performance”
The marketing audit analyses the areas such as macro environment, task environment, customers, competitors,
competitive advantage, strategy, structure, systems, productivity and the elements of the marketing mix. It recognizes
the fact, that in order to be successful there has to be an integration and coordination in between these functions.
It give an assurance that the company is well aware of the context in which it operates and can be used to make
adjustments to the marketing plan by pointing out trends in the market and areas of improvement. Furthermore it will
provide company a performance baseline for measuring performance.
It provides a blueprint of the business as it helps to understand where it is now, where it wants to be how it will reach
there. The audit is the centre of the planning process as it provides the basis on which cooperate and marketing
decisions are made.
In the con text of Sri Lankan airlines the marketing audit has been enable the company to understand the areas of
strengths, which could be used to gain competitive advantage, and areas of weaknesses which need to be improved. It
has uncovered inefficiencies that had not been identified before. It has sparked life into the new strategy and direction
to achieve its objectives while reminding its initial cooperate goals and direction.
7.2 Characteristics of an effective marketing audit

According to Kotler and Keller (2006) the marketing audit of Sri Lankan airlines should meet the following key
aspects:
Factors Impact on Sri Lankan airlines

The marketing audit of the Sri Lankan airlines can be identified as a comprehensive audit as it is
horizontally cover the company’s marketing environment, objectives, strategies organizations and
systems (Please refer Appendix 2- Marketing Audit) and vertically takes a deep look into the
Comprehensive current customer relationship management activities and the effectiveness of the loyalty
programme and customer conversion rate. (Please refer Appendix 2 – rationale for the chosen
scenario). Furthermore it takes a deep look in to Key elements of the marketing mix (Please refer
Appendix 2- Marketing function audit)
Page 20 of 40
The effectiveness of the marketing audit has been improved by the incorporating and orderly
sequence of diagnostic steps. Apart from that it has adopted industry specific quality audit
‘Skytrax’ which evaluated product and service standards against a variety of different quality
Systematic measures.
 Vs. Quality Benchmark
 Vs. Potential quality levels for airline
 Vs. Target quality levels designated for airline
Due to closed communication policy of Sri Lankan airlines, audits on certain areas such as
financial performance is conducted by in house group of auditors, but they consist of people the
Independent operations being evaluated. The other areas of the operation such as products and service delivery
are audited by independent research agencies such as ‘Skytrax’. Therefore the audit findings can
considered as unbiased and adequate for effective planning.
The ‘Skytrax’ audits are conducted annually. But internal audits are conducted when things goes
Periodic wrong or in the event of implementation of new marketing plan. The frequency of the audits need
to be improved as is operates in a highly sensitive industry.
Table: 22Characteristics of an effective audit
7.3 Components of Marketing Audit
Audit Description Analysis tools used

Marketing The MACRO environment was audited to identify the PESTEL analysis
Environment opportunities and threats and impact on the
organization’s performance
Marketing Strategy The task environment was audited in order to identify Poter’s Five force analysis
the industry trends, customers, competitors and
company’s competitive position, competitive Davidson’s Source of competitive
advantages and impact on the organization from these advantage
forces. Furthermore it gives a general idea about the
industry Poters’s generic strategy
Marketing The feasibility of marketing objectives in related to Ansoff’s Growth Matrix
Objectives the market conditions have been evaluated along with
the compatibility of the marketing objectives with the
business vision and mission.
Marketing The structure of the marketing function has been Marketing Departmental Structure
Organization evaluated on the formal structure, functional
efficiency and interface efficiency
Marketing Systems Marketing systems were evaluated for the evaluation Marketing Systems
of the structure, technology implemented, processes
and mechanisms used and efficacy MkIS
Marketing The products and the markets were audited for the BCG matrix and Passenger Load
Productivity profitability and cost effectiveness. The products and Factors
markets that need to be invested and divested have
been identified
Marketing The elements of the marketing mix have been 7 P’s
Function evaluated
Table: 23 Components of Marketing Audit
Page 21 of 40
7.4 Information Gathering and Analysis

7.4.1 Sources of information and techniques used
In order to gather information required for the marketing audit both primary and secondary research data gathering
techniques have been used.
Here to gather information on the internal environment mostly primary research techniques have been used and to
gather information on the external environment secondary research techniques have been used.
Primary Sources Secondary Sources

Interview with the senior managers of Sales & Marketing Annual report of Sri Lankan Airlines
and HR departments.
Interview with the Sales & Marketing team members Annual report of Airline industry by Australian
government
Information on the company websites and social media Journal articles on Australian aviation industry
sites
Annual reports of Competitors
Skytrax reports
CAPA ( Center for Aviation) reports
Table: 24Soources of information
7.4.2 Issues encountered in gathering information
Primary Research
1. Labour intensive operation

Collecting primary data is highly labour intensive operation.
2. Marketing Appointments
It was difficult to get an appointment from the senior managers of Sri Lanka airlines due to their busy
schedules. (Colombo/ Katunayake – Sri Lanka)
3. Closed communication policy of Sri Lankan Air lines
Sri Lankan airline has a closed communication policy. Therefore the employees were reluctant to share
information and the people in the lower level of the hierarchy had no valuable information to provide.
4. Lack of knowledge
Some of the employees were lack of their knowledge about company and industry.
Secondary Research
1. Unavailability of the information
Due to the confidentiality, sensitive information on the competitors was not freely available.
2. Lack of independent research agencies in the region
Unlike other parts of the world there are not much independent research agencies in the South Asia and Asia
Pacific regions.
3. Poor documentation and data management
Some of the data was documented and not in a proper order. Due to lack of integration between the systems
used, data gathering was difficult and time consuming.
4. Insufficient time
Time available for data gathering was not adequate.
Page 22 of 40
7.4.3 Issues encountered with information analysis
1. Unavailability of information in the correct format and up-to-date

Some of the information available was not up-to-date and they were not in the relevant format and incomplete.
2. Incompatibility of data formats
As data was gathered from many different sources the data formats were not compatible with each other for
analysis purpose.
3. Difficulty with analyzing qualitative data
In the service industry the importance of qualitative data is high as they provide a great depth into consumer
attitude but they need to be converted in to quantitative format for evaluation purpose. The process of
evaluating qualitative data is not well regulated.
8.0 Justification of how competitive strategy has been developed using

Segmentation, Targeting and Positioning approach
8.1 12C Frame work for Australia
8.1.1 SLEPT Analysis
Factor Description
Social Total Australian population is 23.13Mn. Capital is Canberra and English is the primary language
used in Australia. Most of the Australians do like to travel as an interest. Average life expectancy
is 82.1 years.
Age Structure – (0 -15 years) = 19%, ( 15-64 years ) = 67%, ( 65 & above ) = 14%
Legal The common law system, as developed in the United Kingdom, forms the basis of Australian
jurisprudence. It is distinct from the civil law systems that operate in Europe, South America and
Japan which are derived from Roman Law. There are advantages to business investors as the law
is favourable to them.
Economical GDP = 1.561 trillion USD (2013), GDP per capita = 67,468.07 USD (2013).
Tourism - International visitors consumed 26 billion USD in goods and services produced by the
Australian economy in 2013. This is 11% of exports of goods & services. Top destinations for
Australians travelling overseas for 2013 were New Zealand, US, UK, Thailand & China
Political Australia’s liberal democracy is built around a constitutional monarchy and the British
Westminster system with the American federal structure grafted on it. Politically country is well
establish and has created a friendly environment to start up new businesses and investors.
Technological Australia’s ICT has developed significantly in last decade. House hold access to internet has
grown from 1.1 Mn to 6 Mn from 1998 to 2013. There were more than8.5 Mn active internet
subscribers in Australia by 2013.
High Technological equipment and systems being introduced in Airport to provide a efficient
service.
Table : 25 SLEPT Analysis of Australia (Source: Australian Bureau of Statistics)
Page 23 of 40
8.1.2 12C’s Frame work
Factor Impact on Australia
Choice Sri Lankan Airlines has operated its flights to Australia 15 years ago. With the merger of Emirates
SL Airline has stopped its flights. It is high time to starts its operations to this market under new
market development since potential is very much higher.
There are about 02 main competitors to SL Airline which are Cathay Pacific & Emirates. Qantas
Airways is the flag carrier of Australia. But currently it is not interested in extending operations to
Sri Lanka. Therefore there is no significant competition taking place with Qantas. It owns more
than 65% of market share in Australia.
Concentration Australian market is as big as USD 105.3Bn. And industry expected to grow more than 8%.
Recently people have become more concern above the price factor and prefer to fly in budget air
lines as well.
Culture & By nature Australians do like to travel in their leisure time. People like to travel by air more than
Consumer sea transportation.
behaviour
Consumption Market segment & Share
Road Transportation- 41%, Rail Trans. – 18%, Water trans. – 2% , Passenger trans. – 30%, Air
Trans. – 9%
Currency Australian Dollar is the currency being used. AU$ 01 = Rs. 124
Currency restrictions- In Australia the maximum amount a resident or a non resident can bring in
or take out is AU$ notes not exceeding equivalent to AU$10, 000 per person. If the limit is
exceeding there is a custom approval process that has to be adhere
Capacity to Pay Per capita income has been increased up to US$ 67,468. Even though the passengers are affordable
to bare the costs they are price sensitive.
Channels International investors mainly operate through agents, direct and franchise.
Distributional infrastructure –
Infrastructure has been developed rapidly in the past decade. Currently Australia has 139 airports
with 28 International equipped with latest technology.
Commitment Whoever enters to Australia for business purposes must take in to account the multicultural
population and the strong economic and social disparities due to lots of migrants are present in the
country. The selection of an agent or a channel should be based on the agent or channels years of
experience. It is better to have a support from local company as well in order to avoid conflicts.
Since Sri Lankan Airline has operated flights in the past it has a fairly good understanding about
the customers.
Communication Both ATL and BLT methods are used for promotional purposes. Internet, Social media, TV, press
and radio are the main ATL promotional methods whereas PR campaigns and sponsorships are the
main BTL promotional methods.
Contractual When investing in Australia there is a set of legal obligations which the investor must adhere.
Obligations These are common to all other countries and no such significant & extraordinary obligations.
Covets Minimum restrictions and people have more freedom and very open minded including the
migrants. No special requirement required except the friendly service which already provides by
the Sri Lankan crew.
Table: 26 - 12C’s Framework Model for International Marketing
Page 24 of 40
8. 2 STP Strategy
STP strategy allows for identification and classification of the customers in to homogeneous groups. Then the
company can determine which of these segments are viable target markets and the respective drivers of each of these
segments can be identified in order to develop a product differentiation strategy to gain a competitive advantage.
By reducing the risk involve with deciding where, when, how and whom the products will be marketed the company
can increase its marketing efficiency by directing its effort towards the designated segments while increasing the value
delivered to the customers.
Stages of STP Strategy
Develop a
Selecting Develop
Situational Segmenting suitable
Target product
Analysis the Market Marketing
markets Positioning
Mix
Figure: 17 Satges of STP
8.2. 1 Segmentation
Segmentation is the process of subdividing the market in to subset to identify customers with similar needs and wants.
According to Dibb et al, segmentation is “the process of grouping of customers in markets with some heterogeneity
into smaller, more similar or homogenous market”
In the context of Sri Lankan airlines, Demographic variables are considered in developing the marketing plan and the
effectiveness of the market segmentation should match the following criteria.
Criteria Impact to Sri Lankan airlines

Measurable Segments can be measured according to the size and the income generated
Substantial Profitable segments can be identified with the data available
Accessible Sri Lankan airlines has the capability to reach these segments
Differentiation Segments can be differentiate from each other
Actionable Company can develop specific marketing programmes to cater these segments profitably
Appropriateness Chosen segments are compatible with the business objectives of the company and what Sri
Lankan airlines offer
Stable The chosen segments will help to improve conversion rate and profitability
Table: 27 Segmentation Criteria
As per market segmentation developed in the marketing plan using the IBM’s value based customer segmentation, it
has been identified that most profitable markets that Sri Lankan airlines should focus on are the high value and high
frequency. (Please refer Task 02 Marketing Plan – Market segmentation)
This segmentation has enabled the company to effectively analyze the attractiveness of segments identified in terms of
frequency and monitor value. Applying the Shell directional policy matrix, Sri Lankan airline can further analyze the
competitive strengths and capabilities in order to cater these segments.
Page 25 of 40
Market Segment Attractiveness

Sri Lankan Airlines Competitive
Unattractive Average Attractive
Weak Strongly Avoid Avoid Possibilities

Secondary Targets
Strengths
Average Avoid Possibilities Regional flyers

Domestic young blood
Low-Tire Road warriors
Prime targets
Strong Possibilities Secondary targets Cooperate masses
Hoppers Global Stars
High-Tire Road warriors
Captains of the industry
Table: 28 Shell Directional Policy Matrix
Based on Shell Directional policy matrix Cooperate masses, Global stars, High-tire Road warriors and Captains of the
industry have been chosen as prime targets due to the attractiveness of those segments and the resource capability of
the company to cater them. Company should identify the needs of the segments such as Low-Tire Road warriors,
Regional flyers and domestic young blood improve in weak areas such as legroom, perks & nonstop services to make
them a prime target due to the attractiveness of those segments. Hoppers have been set as a secondary target due to
low level of market attractiveness, yet the company has the capability to cater them. (Please refer Task 2- Marketing
plan/Figure:14 IBM Analysis)
According to Doyle (1994) through effective segmentation the company can gain following advantages:
1. Through the identification of specific needs of these segments a distinctive marketing mix can be developed in
order to increase the value delivered to the customers. This will result in improved customer satisfaction and
in turn will help to succeed in the new Australian market which SL Airline has decided to expand under new
market development.
2. Through the development of distinctive marketing mix company can differentiate itself from the competition
and gain a competitive advantage.
3. Through focused communication using specific channels identified the company can improve the
effectiveness of the communication.
4. Through the effective allocation of resources on the identified profitable segments will minimize the wastage.
8.2.2 Targeting
Once the target segments have been defined, both similarities and the differences of those segments will be identified.
The segments identified will be grouped based on the similarities identified. Then the elements of the marketing mix
will be adjusted according to the varied needs of segment groups identified. Sri Lankan airlines therefore adopt a
‘Differential target market strategy’. Here secondary target markets with high market attraction also will be taken into
consideration. Therefore targeting approach would be as follows:
Page 26 of 40
Marketing Mix 01 Group 01

Focus will be on the loyalty programme Cooperate masses, High-Tire Road
benefits such as Air miles, Flexibility, warriors, Domestic young blood, Regional
seamless transfers & perks flyers and Hoppers
Marketing Mix 02
Focus will be on self-esteem needs such as Group 01
status, prestige, recognition & individual Global stars, Captains of the industry
attention
Marketing Mix 03 Group 01

Focus will be on comfortability Low-Tire Road warriors
Figure: 18 Targeting Approach
As Sri Lankan airlines adopt a differentiation strategy along with cost leadership, it is not advisable to differentiate the
marketing mix for each segment as it may represent additional cost for customization of marketing mix elements.
Furthermore it will minimize the ability to achieve economies of scale, which result in lower profit margins.
8.2.3 Positioning
Debb at al (2006) “Positioning is not what is done to the product, but what is created in the mind of the customers”
Kotler & Keller (2006) define competitive Positioning as “The act of designing the company’s offer and image so
that they occupy a meaningful and distinctive position in the target customers mind”
As discussed in the marketing plan current positioning strategy as a high quality premium brand with a premium price
is not appropriate for price sensitive segments in the market. (Please refer Task 2- Customer Segmentation)
Therefore Sri Lankan airlines has been suggested to reposition the brand based on the alliance with ‘Oneworld’,
personalized service achieved through effective CRM, Ethical marketing and sponsorships in order to deliver a higher
perceived value for the customers. Through this the company can differentiate itself and create a competitive position
in the target market. Through this position strategy the company can gain advantage due to following factors:
1. Alliance of ‘Fly Smiles’ with ‘Oneworld’

As per ‘Skytrax’, ‘Oneworld’ is the biggest global alliance in the world in 2013. It is the second largest global
airline alliance in the world and it is associated with quality, safety, service and punctuality. The alliance
would provide the customers access to a global network with enhanced benefits and rewards while providing
additional revenue and cost savings for the airline.
Sri Lankan airlines is the first in the South Asian region who was qualified to be a member of a global airline
alliance and it will be difficult for the major competitors in the region to match the benefits given with
‘Oneworld’. Apart from that ‘Oneworld’ has a special benefits for the cooperate customers.
Page 27 of 40
2. Customer Relationship Management (CRM)
Marketing Plan suggested the use of CRM techniques such as key client relations and implementation of
sophisticated CRM system to identify personal needs of customers and personalize service offered
accordingly. Through effective CRM, the company can create and deliver unique set of benefits that is
difficult replicate by the competitors.
3. Ethical Marketing
The marketing plan suggested the incorporation of ethical marketing initiatives such as sponsorships for
charity, green marketing activities and other cooperate social responsibility projects as a part of the
positioning strategy. Due to the increased concern on the other two elements of ‘the triple bottom line’-
People and the planet, not only for profit, consumers learn to trust ethical brands and remain loyal to them.
4. Sponsorships
Association with the Asian Rugby Union and sponsorship for the ‘Asian Rugby Tournament’ will give Sri
Lankan airlines a huge opportunity to increase the brand awareness and visibility in Asia. This will create
brand preference and loyalty among the other target markets.
It is evident that Sri Lankan airlines intend to position itself as a high quality ethical premium brand, which offers
highest level of benefits, flexibility, safety, security along with the best products and services with individual attention
through the positioning strategy.
8.3 Development of the Marketing Mix

In line with the STP strategy development of the marketing mix has been discussed in the marketing plan. (Please
refer Task 2 – 4.0 Marketing Mix Programme)
8.4 Performance evaluation of the Marketing Plan

8.4.1 Benchmark
Sri Lankan airline should benchmark its closest competitors Emirates & Cathay Pacific. Main areas to be benchmark
are as follows.
 Full service package
 Process of issuing the services
 Pricing of the services
 Customer Relationship Management
8.4.2 Metrics
To measure the effectiveness of the marketing plan, Sri Lankan Airline will need to use range of metrics to measure
the performance and evaluate whether the set goals and objectives are met.
Profitability Efficiency Metrics Innovation Metrics Effectiveness Brand Equity

Metrics Metrics Metrics
Revenue Speed of customer Satisfaction rate of Level of service quality Level of brand
service benefits added to existing awareness
product range
Profit margins Customer loyalty rate Success range Number of customer Brand strength
complaints
Increase in profit Market share for data Effectiveness of reach Brand value
after tax package
Earnings per share Number of new No. of comments and Level of trust
customers likes in web page
Return on capital
employed
Table : 29 Evaluation Metrics
Page 28 of 40
9.0 Identification of the potential issues that may encounter when implementing
the marketing plan and presenting a practical proposal to resolve them
According to Piercy (2002) “The real strategic problem is not strategy, it is managing the implementation and
change”
Despite of the effort put into the development of the marketing plan the success of the marketing depends on the
proper implementation.
McKinsy’s 7s framework can be used to identify the problems related to the implementation of marketing plan.
Figure: 19 McKinsy’s 7s
Component Issue Description Action Plan
The company should adopt a

Delay in A reactive strategy has been proactive strategy in order to improve
adjustment of the implemented as opposed to a the response time for the changes in
strategy proactive strategy market conditions and to gain
competitive advantage
Strategy
A top-down management style has
Isolated planning been implemented and the senior Hybrid system needs to be
management does the planning implemented and middle management
without any involvement from the also needs to be involved in planning
middle management. Therefore
problems occur in the executions of
plans
Requirement of dual authority and Technology such as Sharepoint web

Complexity of the dual communication in projects application platform, teleconferencing
matrix structure where employees have to report to and intercom should be used to avoid
more than one manager may cause the dual communication. Job
confusion and conflicts descriptions and chain of command
should be specified in order to
Structure Due to high level of communication minimize duplication of work and the
Expensive to required, matrix structures are confusion and conflicts caused by
maintain expensive to maintain dual authority.
The level of integration and Interface efficiency can be improved

Lack of interface coordination between different by improving internal marketing and
efficiency divisions are low due to the lack of interpersonal skills of the coordinators
interface efficiency who are at the key positions
Page 29 of 40
Lack of As the company has different Company should implement a ERP

integration software solution providers and the solution which consist of all the
Systems between the level of integration between the relevant modules needed for the
systems used systems are low. This has caused operation. Here integration with
duplication of work due to manual ‘Oneworld’ software modules also
feeding of data for data migration needs to be considered
Productivity of the employees Proper training need to be provided to

Lack of effected by lack of knowledge of the ensure that systems are used
knowledge of the effective use of systems available effectively
staff and use of new systems
A democratic leadership style should
Level of bureaucracy is high and the be adopted which allows for
High level of power is not evenly distributed. This innovation and creativity. Power
Style formalization and has hindered the speed of decision should be evenly distributed and there
centralization making process. should be room for diversion from
standards and procedures for the
benefit of the customers
In the implementation of new plan The company should invest in the

Lack of required the existing employees may not have personal development of employees.
Skills skills required technical of interpersonal The skill levels of employees should
skills needed be monitored and assessed.
The compatibility of the plan
Compatibility There is a set of core values that are developed, with these core values
Shared Values with the shared evidenced in the cooperate culture should be considered and adjustments
values of the and general work ethics should be made accordingly
company
People who are specialized in relevant
It is difficult to find the people with fields should be appointed in key
Staff Human resource required level of general capabilities positions and gaps in required
for the successful implementation of competencies should be identified for
the plan training and development purpose
Table: 30 McKinsy’s 7s
9.1 Proposal for developing an action plan

Through a preparation of action plan for the implementation of marketing plan the company can improve the
coordination between activities and minimize the risk of failure. Following format could be used for this:
Campaign Title
Campaign Duration
Campaign
Objectives
Marketing Activity Resources Required Staff Responsible Deadline Cost
10.0 Conclusion
The evaluation report outlines the importance of undertaking planning process in order to introduce Sri Lankan
Airline’s services to new market which is Australia under new market development strategy and improve loyalty with
an evaluation of the role of marketing audit as a part of the planning process and issues encountered in gathering data.
I have further justified how STP has been used to develop a competitive strategy and finally outlined the barriers that
may encounter in the implementation of the plan and practical proposals for resolving them.
Page 30 of 40
Appendix - 01
Sri Lankan Airlines – Company Profile

History
‘Air Ceylon’ was established in 1947, as a state owned national carrier. In 1978, it was shut down by the Sri Lankan
government due to bankruptcy and ‘Air Lanka’ was established as the new national carrier. ‘Air Lanka’, fully owned
by Sri Lankan government, was privatized to the Dubai-based Emirates group in 1998, for a 10 year period. As a
result in 1998, ‘Air Lanka’ rebranded as ‘Sri Lankan Airlines’.
Today, Sri Lankan airlines is the national carrier for Sri Lanka, an award winning airline with a firm reputation as a
leader in service, comfort and safety in the Asian region, connecting the nation to 68 destinations in 34 countries.
Company Vision To be the most preferred airline in Asia

Company Mission We are in the air transportation business. We provide our customers with a reliable and
pleasant travel experience. We provide our business partners with a variety of innovative,
professional and mutually profitable services. We meet Shareholder expectations of profitably
marketing Sri Lanka and contributing towards the well-being of Society. We are a competent,
proactive and diligent team. Our contribution is recognized and rewarded
Company Tagline “You’re our world”
Table 01: Company Vision & Mission
Financial Performance
2012 2013 Variance

(Rs. Millions) (Rs. Millions) (Rs. Millions)
Revenue 92,868 119,571 26,703
Operating Expenditure 111,776 143,972 32,196
Net Profit (19,778) (21,750) (1,972)
Table 02: Financial performance of Sri Lankan- Source: Annual report 2012/2013.
Sri Lankan airlines has

a made a revenue of
Rs. 119,571 million in
2013 with a Rs. 21,750
million loss due to high
operational costs.
Figure 01: Financial Performance of Sri Lankan airlines Source: Annual Report
A Sri Lankan airline was named the Best Airline in Central Asia (04 consecutive times) by Skytrax, Best Airline in
South Asia (03 consecutive times) from Travel Trade Gazette and World’s Friendliest Cabin Staff by Skytrax.
Sri Lankan airlines operate in the air travel and leisure industry and offer a range of products and services. The
subsidiaries and divisions of Sri Lankan airlines include: Sri Lankan Cargo, Sri Lankan Catering, Sri Lankan Air Taxi
& Sri Lankan Holidays.
Page 31 of 40
Spicejet Proportion of Passenger traffic by region
Singapore 2% Home Market Share
Airlines
2%
Jet Airways Other
2% 16%
Qatar
Airways
Mihin 3% Sri Lankan
Lanka Cathay Air lines
4% Pacific 52%
9% Emirates
11%
Figure 02: Sri Lanka’s Market Share Figure 03: Passenger traffic by Region
Source: Centre for Aviation (CAPA)
Table shows the market share of the airlines in Sri Lanka. Sri Lankan airlines tops with a share of 52%. Emirates &
Cathay Pacific gain the market share respectively. Table shows the passenger traffic by region. Sri Lankan operates in
top 05 regions when it comes to passenger traffic. (Middle East, Western Europe, South Asia, South East Asia &
North East Asia)
Customer Segmentation of Sri Lankan Airlines
Passenger Traffic by Air Line in 2013

12
10
8
6
4 Passenger
2 Traffic by
0 Air Line
Sri Emirates Cathay Qatar
Lankan Pacific Airways
Airlines
Figure 04: Customer Segmentation (Annual Report) Figure 05: Passenger traffic by Airline (CAPA)
Sri Lankan Airlines has aircrafts with Business and Economy classes. 9% of the passengers travel in the Business
class which accounts for 55% of the income.
Proportion of passenger traffic by the class
First Class Business Class Economy Class
Global Average 1.70% 4.60% 93.70%
Cathay Pacific 2.70% 7.30% 90%
Emirates 2.60% 13.20% 84.20%
Sri Lankan Airlines 0% 9% 91%
Figure 06: Proportion of passenger traffic by class (Source: Centre for Aviation- CAPA)
Page 32 of 40
Appendix – 02
Rationale for the chosen scenario

Sri Lankan airline is one of the fastest growing airlines in the world in terms of passenger traffic. Average growth rate
has been over 2% for the last few years. However in related to the annual international passenger traffic growth rate of
5% and comparing to the expansion of the airline in terms of destinations and frequency, Sri Lankan airline cannot be
satisfied with its current growth rate in terms of passenger traffic. The major reason behind the low growth rate
compared to industry has been identified as lack of opportunity to grow and potential in existing markets.
Industry vs. Sri Lankan Growth
6.0% Growth Rate of Sri Lanakan Airline
4.0% 5%
Industry
2.0% Growth Rate 0%
0.0% Sri Lankan 2009 2010 2011 2012 2013
Growth Rate
2009 2010 2011 2012 2013 -5%
Figure: 07 Figure: 08
Source: CAPA- Centre for Aviation
Company’s ambition is not to be the number one in Asia in terms of passenger numbers, but to be the benchmark in
the airline industry in Asia, by which standards and levels of services of the others are measured.
As per Boeing Current market outlook for 2013/2014 the airline industry is expected to grow at existing growth rate of
5% annually for next 10 years, Asia and Asia Pacific will see the strongest passenger growths. As majority of
passengers that Sri Lankan airlines carry comes from those markets, the company has the potential to improve its
profits and passenger traffic by introducing its services to Asia Pacific market.
Tourists and Sri Lankans who live in Australia are quite significant when considering the numbers. In 2012 close to
56,800 Australians has visited Sri Lanka. Sri Lankan Australians are the 12th largest ethnic group in Australia,
numbering 86,412 by 2011 which shows a 38.8% growth compared to previous year. The city of Melbourne contains
just under half of the Sari Lankan Australians. Fewer than 20% are estimated to live outside New South Wales and
Victoria. In August 2013, 63,000 Sri Lankan born people were working in Australia including 32% professionals and
20% clerical and administrative workers. Therefore there is a significant opportunity to Sri Lankan Airline to grow in
this market by introducing its services to Australia.
As the marketing manager for Sri Lankan airline I have been asked to develop a marketing plan in order to introduce
Sri Lankan airline’s services to Australia which is the most potential customer in Asia Pacific region in order to
increase current growth rate from 2% to 7% in three years. In order to identify the current position of Sri Lankan
airlines and Internal & External factors which may effect in the execution of a marketing plan focusing on introducing
services to Australia, a marketing audit will be carried out. Following is the Planning Gap of SL Airlines.
Sales (US$ Mn)

US$ 1075 Mn Corporate Objective
US$ 980 Mn Sales Forecast The Planning Gap of SL Airline
US$ 830 Mn Operations Forecast
Figure: 09 Planning gap of SL Airline Page 33 of 40

Time
Marketing Audit
Macro Environment
PESTEL Analysis
Factor Impact and Implication Strength

Political
Political stability in the The political stability has affected the economy of the country and the airline
country industry in a positive way. Since the end of the civil war in 2009 there has been a High +
significant increase in the number of tourists arrive in Sri Lanka.
Foreign relations with the Relationship with Europe, US and other developed countries has been fairly low
Government with the Sri Lankan government. This has created a gap with the world and it has Medium +
affected in a negative way to the local air lines. But with Australia recently
government has developed a better relationship which will help to Sri Lankan
airline to establish.
Political unrest in countries Political unrest in countries served by the airline has caused a negative impact on Medium -
the air line. (Ex: Thailand – Bangkok is a main destination for the airline)
Economic
Per Capita Income Current per capita income is US$ 1884. Government is aiming to increase it up to
US$ 4000 by 2016. This has positively affected the industry since citizens will High +
have more chances to spend for entertainment and travel.
Economic down turn in the While this may affect the growth of the industry and turn the passenger traffic in a
other parts of the world negative way. It has presented certain advantages to the company, such as Medium +
diversion of the passenger traffic of those airlines & acquiring ex-employees.
Booming tourism in Sri This has a direct effect on the airline. Tourists prefer to choose Sri Lankan High +
Lanka Airlines since it is the national carrier of the country.
Rise in fuel prises Continuous rise up in fuel prices has severely hit the industry & the company High -
Social
Increase in aging population This has affected the industry as well as the Sri Lankan airlines in a positive way. High +
This has increased the opportunities for travel & leisure sector.
High number of Sri Lankans Close to 100,000 Sri Lankans live in Australia. Medium +
live in Australia
Increased popularity on There is a high demand from passengers to fly to popular destinations for High +
overseas vacations vacations depending on their objectives and popularity of Australia as a
destination has been increased among local customers.
Technological
Development in ICT & E- It has improved the level of interaction with customers while presenting cost High +
commerce advantages.
Invention of fuel efficient & ‘Air bus’ aircrafts which ‘Sri Lankan airlines’ uses are supposed to be old
energy saving aircrafts compared to competitors in the industry. It is a disadvantage when it comes to Medium -
fuel & energy saving. This has a negative impact on the airline in terms of costs.
Environmental
Increase flight disruption cost Flight disruption cost increases due to frequent weather & climate changes in
Medium -
Sri Lanka’s unique Geographically Sri Lanka is a hub in Asia. It is a country in between East & West
geographical location Asia. Therefore it has quick access to anywhere in the Asia. Medium +
Legal
Increase of industry related This may affect the operating cost & the final price which will be charged from
taxes & Insurance premiums the customer. High -
EU,s legislations on carbon This forces airline to have fuel & energy saving aircrafts which will increase the
Emission investment on new Aircrafts. Currently Sri Lankan airline is not using fuel & Medium -
energy saving ‘Air bus’ aircrafts since they are very old.
In order to protect the local airlines, the local governments may limit the
Open Skies policy frequency of flying to certain destinations & access to air travel routes. This may High +
affect the expansion of the airline and in turn level of connectivity. Ultimately this
may affect the passengers in terms of ease of booking & transit.
Table: 03 PESTEL Analysis
Page 34 of 40
Micro Environment
Industry Analysis
In order to identify the current competitive position of Sri Lanka Airlines, trends in the industry and where
the power lies, following Michael Porter’s Five forces analysis could be used.
Factors Detail Impact
The bargaining power of the jet fuel suppliers is high as the company has to import fuel from
Middle East countries. In terms of manufacturing of Aircrafts is dominated by few companies
such as Airbus, Boeing, A J Walter & Rolls-Royce. The bargaining power of the suppliers is high
Bargaining due to few suppliers available in the market and high cost involve in switching suppliers. The
recent missing MH 370 which was a Boeing 787, therefore it has raised certain questions about High +
power of
the safety standards of the airlines which are using Boeing aircrafts. This may be an advantage
Suppliers when it comes to Sri Lankan airlines since they use Airbus aircrafts and it will help them to
improve the confidence level of its potential customers. The bargaining power of the travel agents
is decreasing with increased use of online booking systems and E-commerce.
Bargaining It is high due to the price based promotions between airline and emergence of low cost airlines.
power of Low level of switching cost between the airlines is crucial factor when it comes to selecting the Medium -
buyers airline.
Due to economic boom in Asia, Middle East and growth of the airline industry the intensity of
Intensity of competitor rivalry is high. Due to alliances among different airlines and the emergence of low High -
competitor cost airlines such as ‘Air Asia’, ‘Fly Dubai’ in the region and local budget airline which is ‘Mihin
rivalry Lanka’ has become even fierce.
Due to the high growth rate of the industry it has been very attractive for new entrance. As
Threat of new mentioned above emergence of the low cost/ budget airlines could be considered as a potential High -
entrants threat. However due to high level of investment and long time taken for ROI may act as a barrier
for new entrance.
Threat of new Sea cargo is a substitute to the air cargo. Also low cost airlines will be a substitute for high
substitute quality service providers which will be at high costs. Introduction of new transportation modes Medium -
such as Hyper-Loops, which will be faster & safer than air travel, may be a threat in the future.
Table: 04 Porter’s Five force analysis
Customer Analysis
(Please refer Appendix 1, Figure 04 for customer segmentation)
Competitor Analysis
(Please refer to Appendix 1, Figure 05& O6 for competitive position and proportion of passenger traffic of
the key players by the class travelled.)
Major direct competitors of Sri Lankan Airlines may include Emirates and Cathay Pacific as they target the
same segments in the market apart from First class and offer similar products and services with a full service
operation. All three companies have adopted a premium strategy for the Business class and value for money
for the Economy class.
The largest in the region (Asia, Asia Pacific & Middle East) and has been in the industry for 29
years. Fully owned by the UAE government. Emirates is the key competitor for Sri Lankan
because is flies to all destinations where Sri Lankan flies (South Asia, Middle East, Far East,
Europe ect. Currently Emirates fly to Australia as well)
It is the national airline of Hong Kong. It is one of the fastest growing airlines in Asia and Asia
Pacific. Also Cathay Pacific is a founding member of the Oneworld Alliance.
Airline Number of Destinations Key growth strategy

Aircrafts
24 68 destinations in 34 Penetration and Market development (focus on
countries expanding both in terms of destinations and frequency)
Page 35 of 40
206 140 destinations in 80 Penetration (focus on increasing the frequency)
countries
116 112 destinations in 42 Product development (focus is on the profitable niche

countries market)
Table: 05 Competitor comparisons by size and destination (Source: Company websites)
Competitive Advantage
Following are the major achievement of Sri Lankan Airlines in past few years.
 Best Airline in Central Asia (04 consecutive times) – Skytrax
 Ranked as 04th in Central and South Asia by Skytrax in 2013
 Became a proud member of Oneworld alliance – New loyalty programme
 Best Airline in South Asia (03 consecutive times) from Travel Trade Gazette
 World’s Friendliest Cabin Staff – Skytrax
 World’s Most Reliable Operator of Airbus A340s (small fleet) – Airbus Industry
 Best Overall In-flight Entertainment (small fleet), twice – World Airline Entertainment Association
Marketing Strategy Audit

Company Vision and Mission
The vision and mission statements are stated in a marketing oriented manner (Please refer to the
Appendix 1 Company background for vision and mission statements.)
Marketing Objectives
The marketing objectives of the company may include:

 To be the number one airline in Asia by 2017
 To increase the Business class passenger traffic proportion up to 15% by end of 2017
 To increase the passenger numbers to 15 million by 2017
 To increase weekly flight frequencies up to 252 by end of 2016
 To identify a potential market and start operations by end of 2017
Ansoff’s Strategy Matrix
Product Development Growth strategy for Sri Lankan Airlines could be used using
Ansoff’s Strategy Matrix. Sri Lankan group focuses on all
Existing New four strategies. Here it has been only airline sector taken in
to consideration.
Market Development
Market Product Development

Penetration Oneworld Loyalty Increase of flight frequency can be identified as a market
Existing
Sri Lankan Airlines Programme/ penetration and increase of destination and entrance to new
& Cargo Hot Seats potential markets can be identified as market development.
Recently launched Super Business Class service is a

Market Diversification diversification in to a profitable niche market.
Development
New
Sri Lankan Airlines Super Business Class Hot seats and recently becoming a member of Oneworld
& Cargo
alliance is identified as a new product development.
Through these service levels will be continuously improved.
Figure: 10 Ansoff’s Strategy Matrix
Page 36 of 40
PLC of Sri Lankan Airline BCG matrix for Sri Lankan Airline
Question Mark Star
SL Airline
Market Growth
High
Dog Cash cow
Low Current position of

SL Airline
Low High
Introduction Growth Maturity Decline Market Share
Figure: 11 PLC Figure: 12 – BCG Matrix
Currently Sri Lankan air line is in the maturity stage of its Product Life Cycle. Reason behind it has been SL Airline is
not bringing in new destinations frequently. It is enjoying current market share in existing markets. Also SL Airline
has been position in the dog segment in BCG matrix due to lack of market growth and market share in its currently
operating destinations. Past few years company and the local market has been grown at 2% and 3% respectively. SL
Airline accounts for a market share of 07% in its operating destinations as an average.
Currently Asia Pacific region is growing by 9.3% and Australia is expected to grow by 8.2% between 2015 & 2020.
Therefore it will be very attractive for SL Airline to start its operations in this new market.
Identification of a potential New Market
Possitive Negative
Country Entry No. Of Economic Industry Airline Total Policies and
barriers Airports growth % growth % industry Value Population regulations
(US$ Bn)
Bangaladesh Low 02 6 8 9.7 160Mn Moderate Motivation
for Investors
USA High 885 2.8 4.3 840 316 MN Low Motivation for
Investors
Australia High 139 4 8 105.3 23.1 Moderate Motivation
for Investors
Nepal Low 36 3.6 4.7 2.3 27.7Mn Moderate Motivation
for Investors
Table: 06 Identifying a potential market (Source: www.google.com)
The above table analyses the current situation of identified markets. According to these data Australia is the highest
potential market with opportunities and lower risks. Currently Qantas Airways is enjoying 65% of market share which
is the highest in the region. Therefore Sri Lankan Airline has a significant opportunity which suits to its strengths in
order to enter to the Australian market under Market Development strategy.
Page 37 of 40
Marketing Organization Audit
Director Figure 13: Marketing department Structure
Marketing
Snr. Manager Snr. Manager

Revenue Snr. Manager Snr. Manager
Cooperate
Sales Inflight Department
Communication Management
Manager Manager Manager Station Station Manager

Station ManagerTraining &
Cooperate Revenue Revenue Manager Manager Indian SC & Development
Communication Airline Cargo Europe Middle & Far Male
East
Director Marketing is overall responsible to all the marketing related activities and directly reporting to CEO. Under
director marketing there are 04 senior managers covering all key areas. It is a flat Marketing departmental structure
and less complicated where it is very easy for decision making and implementation.
Marketing Systems Audit (Table: 07)

Marketing Information System Marketing Planning System
The MKIS is consisting of different software solutions by range The integration of revenue management and production
of different service providers. Therefore the integration planning within the marketing function has improved
between the systems used is low and cause problems in data marketing planning. The Director Marketing has the main
migration. Recent introduction of CRM system module, which responsibility for setting the direction in marketing planning.
runs on iPads used by ground and cabin staff, provides essential The company conducts marketing research and analysis to
information needed for an effective service delivery. Internet inform the planning process. Apart from that software
and Intranet mail system used as main internal communication programme are used to assist the planning teams.
channel.
Marketing Control System New Product Development System
Due to the availability of systems key decision maker get an The NPD teams of the cabin and ground services are active.
up-to-date information with regard to the performance on They do continue R&D to ensure highest level of quality
different aspects of the marketing division. Apart from that service is delivered. Here marketing division is actively
monitoring and control mechanism are integrated in the system. involved in NPD process by giving suggestions and feedback
for improvement. Response for new products and processes by
customers are being analyzed before continuation.
Marketing Function Audit

Product & Products are in high quality and service is customer focused. Business class mainly focuses on quality conscious
Service segments in the market and Sri Lankan offers a super BC service. Economy class focuses on the price conscious
segment.
Price Price varies based on the class travel, season and degree of alteration flexibility of the booking. Pricing strategies of
major competitors are taken in to consideration. Pricing strategy can be identified as high, but yet competitive.
Place Sri Lankan uses an exclusive and selective channel of travel agents and global network of regional offices. With the
development of online booking and check in systems the role of mediators has become insignificant.
Promotion Sri Lankan uses all ATL, BTL & TTL media for the promotions. Company has also focus on its online community
and use of new media such as SMS, Social networks. Due to the aggressive advertising strategy of the key
competitors in the region the noise that Sri Lankan Airlines made in the market is not adequate. Brand visibility and
PR has not been properly positioned in the market.
People Highly professional and trained staff. Friendliness of the staff is very well known across the world. Company focuses
on developing technical skills as well. Due to low level of internal marketing loyalty of the employees have reduced.
Process Sri Lankan airline is a highly process driven organization. Careful market research has done when designing the
process. It always ensures the high quality of service is delivered. But due to highly centralized nature of the
organization has caused longer time taken for decision making as they need higher management approval.
Physical Ambiance is pleasant in Aircrafts and premises. Spatial layout and functionality serves the purpose. Cooperate
Evidence branding does not in corporate sponsorships and CSR activities of the organization.
Table: 08 Marketing function audit
Page 38 of 40
Appendix –03
The Balance scorecard
Perspective Objective Strategic Measures Target Initiatives
New Market Market Share in the 0.05% Introduction of new flights and schedules
Development new market to Australia. Obtaining licences from
airports
Customer Improved loyalty benefits and quality
Perspective standards of products and services,
personalized service through CRM,
discounts in pricing
Improve customer Passenger growth rate 25% Increased brand visibility
growth rate
Improve customer Skytrax ratings 5-star Improved CRM, enhance service standards
satisfaction and airline and cabin facilities
loyalty
Increased Operating profit 10% Execution of four growth strategies and
operating profits margins improved productivity of employee
Financial Return on capital ROCE 15% through internal marketing to help
Perspective employed company to become profitable
Increase cash Cash flow 20%
flow
Level of Airlinetrends.com No.01 in Continues product and process
innovation Asia development based on careful market
research
Learning Motivated and Employee satisfaction 50% Improved internal marketing,
and growth loyal workforce surveys communication and employee benefits
Empowered and Balance Score card 50% Staff training and decentralization of
competent power and authority
workforce
Internal Improve service Mystery customer 50% Implementation of ERP and CRM
business delivery process survey
process Increased Yield gap, Share of 30% Improved customer satisfaction through
customer value target segments reliable business processes
Table: 09 Balance Score card
Page 39 of 40
References & Bibliography
Books, Articles and Reports

 Drummond et. Al(2008) - Drummond et. Al(2008), Strategic Marketing Planing and control, 3rd Edition.
Burlington, USA
 Dibb, S and Simkin, L (2008). Marketing planning A workbook for marketing managers. London: South-
Western Cengage Learning
 Hooley, G. et al (2008). Marketing strategy and competitive positioning. 4th ed. London: FT Prentice Hall.
 Kotler, P. et al (1999). Principles of Marketing Second European Edition. 2nd ed. London: Prentice Hall
Europe.
 Keller, K(2003) Strategic Brand Management, Irwin Mcgraw- Hill
 Kotler P., Keller K (2006) Marketing Management: A south Asian Perspective (13th Ed) Prentice Hall of India
Pvt Limited, New Delhi
 Dr. Meenu Gupta, Dr. Upali Mahanama, Dr. Ranjan Madanayaka (2008)Marketing skills in management, 1st
edition, New Delhi
 Megicks P., Donnelly R., Harrison G.(2009) Marketing Planning Process
 Mcdonald, M (2007). Marketing plans: How to prepare them, How to use them. 6th ed. Oxford: Butterworth-
Heinemann
 Michael E. Porter (2004), Competitive Strategy. New York, NY.
 Malcolm Mcdonald and Ian Dunbar (2010) Market Segmentation: How to do it How to profit from it (4 th Ed)
 P. Doyle and P Stern( 2006) Marketing Management and Strategy, fourth edition. Harlow, England.
 Wilson R and Gillian C(2005) Strategic Marketing Management, Planning, Implementation and Control(3rd
Ed), Oxford, Jordan Hill
 Annual reports of Sri Lankan airlines, Emirates and Cathay Pacific

 Marketing Planning Process - Strategy School of Business Student Kit
Websites
 http://www.srilankan.com/en_uk/lk
 http://www.srilankan.com/corporate/en_uk/Airline/profile
 http://centreforaviation.com/
 http://www.lankabusinessonline.com/news/sri-lanka-national-airline-hit-by-competition,-needs-protection:-
president/303408010
 http://www.skyscanner.net/flights-to/lk/airlines-that-fly-to-sri-lanka.html
 http://www.srilankan.com/corporate/pdf/annual-
report/SriLankan_Airlines_Annual_Report_2011_2012.PDF
 http://www.slideshare.net/saatvi/srilankan-airline-industry-analysing-challenges-and-critical-success-
factors#
 http://www.oneworld.com/
 http://www.ibm.com/us/en/
 http://en.wikipedia.org/wiki/Sri_Lankan_Australian
 http://www.sltda.lk/statistics_at_a_glance
 http://kent.edu.au/kent/wp-content/uploads/2014/04/Report-Writing-Workshop-Master-Part-b-T12014.pdf
 http://www.abs.gov.au/websitedbs/d3310114.nsf/home/Population%20Pyramid%20-%20Australia
 http://www.slideshare.net/iamankitsharma/pest-analysis-of-australia
Page 40 of 40

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Marketing Planning Process Membership No.

540 - Marketing Planning Process

Option 01 – Growth of an existing service into a new international market -

Task One = Marketing Audit - 06 Pages

Task 02 – Marketing Plan

Task 03 – Evaluation Report

Appendix 01 – Company Back Ground.....................................................................................................................................31

1.0 Situational Analysis

1.1 Current Positioning

1.2 Critical Issues

Table: 10 Critical issues

1.3 Other Issues

2. Safety and security issues

1.4 Over View of the market

1.5 Competitor analysis

1.6 Future Trends

1.7 TOWS Matrix

External Opportunities External Threats

2.0 Campaign Objectives

2.2 Marketing Objectives

Table: 14 Marketing Objectives

3.0 Strategy Formulation

3.1 Marketing Segmentation

3.1.1 Segment Evaluation

High Corporate Masses High-tire road warriors Global stars

Low Frequency of Travel High

Figure: 14 IBM Analysis (Source: IBM Analysis)

3.2 Targeting Approach

Marketing Strategy Benefits delivered to customers Positioning prompts

Sri Lankan = Emirates = Cathay Pacific=

High Price Seamless transfers, flexibility & Personalized service

High Quality Cooperate sector benefits Cooperate citizenship

Figure 16: Perceptual Maps of SL AIrline

4.0 Marketing Mix Programme

4.1 Product Strategy

4.2 Price Strategy

4.3 Distribution Strategy

4.4 Promotion Strategy

4.5 Extended Marketing Mix Strategy

4.5.1 People Strategy

4.5.2 Process Strategy

4.5.3 Physical Evidence

5.1 Schedule of the Key Activities (2015)

5.2 Resource Allocation

Activities Total cost

5.3 Balance Score Card

Please refer Appendix 03 for the Balance Score Card

To : Senior Management of Sri Lankan Airlines

From : Marketing Manager

Date : 01st of December 2014

Subject : Evaluation Report of Sri Lankan Airlines

1. How marketing planning can benefit Sri Lankan airlines?

6.1 The Marketing Planning Process

Factors Sri Lankan Airlines Description

Table : 20 Stages of Marketing Planning Process

6.2 Benefits of the marketing Plan

Advantage Description Impact on Sri Lankan Airlines

Through marketing audit the organization can identify the

Marketing plan can be used as a vehicle