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ETHIOPIAN AIRLINES ONLINE PROPOSAL
- 1. ETHIOPIAN AIRLINES BUSINESS PLAN & MARKETING STRATEGY FOR Identifying Business Opportunities in Sri Lanka Developed by: VMS AVIATION AIR SERVICES (PVT) LTD 48 A,DR LESTER JAMES PERIES MAWATHA, COLOMBO 05 SRI LANKA. TEL : 0094 11 2 502209 / 0094 11 2 502198 FAX : 009411 2 580737
- 2. Page 2 of 13 TABLE OF CONTENTS 1. INTRODUCTION Opportunity About this Document 2. MISSION STATEMENT 3. ADVERTISING STATEMENT 4. BUSINESS PLAN Proposal Services Communication of Information Benefits Combining Skills Market Research Expertise Sales and Marketing Fares Structure 5. OBJECTIVES OF ETHIOPIAN AIRLINES Short Term Medium Term Long Term 6. ADVERTISING Television Print Media - Newspapers - English/Sinhalese/Tamil Billboards in Strategic Locations Online Marketing Search Engine Optimization on Google/Social Media Integration Radio Magazines Joint Promotions with Tourism Promotion Bureau or Sponsor Prestigious Balls on a selective basis
- 3. Page 3 of 13 Sales Flyers and News Highlights Outdoor and Indoor Sporting Events Press Briefings / Press Releases Presentation of Coffee Mornings Agents Seminars 7. ONLINE AIRLINES IN SRI LANKA 8. AIR CARGO
- 4. Page 4 of 13 1. INTRODUCTION Opportunity Opportunity is available for ETHIOPIAN AIRLINES to maximize its presence and to reach the lucrative passenger/cargo market in Sri Lanka, thereby to increase revenue/yields. Key to achieve this potential is to develop and implement the right business plan and marketing strategy through a General Service Agreement. About this Document This document highlights the skills and expertise that we could give to help ETHIOPIAN AIRLINES online operation in Sri Lanka. It also outlines in broad terms our proposed business plan and marketing strategy. The business plan addresses a number of initiatives we have seen as necessary to maximize the potential of the online carrier in the market. 2. MISSION STATEMENT To create a profitable business environment for ETHIOPIAN AIRLINES to market its products in Sri Lanka by reinforcing its presence and brand awareness within. 3. ADVERTISING STATEMENT To position ETHIOPIAN AIRLINES in the market as a reliable and leading international carrier operating services to destinations in Africa, Europe, United States and Canadian. 4. BUSINESS PLAN Proposal Our business plan offers ETHIOPIAN AIRLINES the opportunity to maximize its revenue potential in the Sri Lankan market. Its key aspect is the marketing strategy. This programme is structured to allow its implementation in a series of stages. Each stage would be initiated in response to sales growth and availability of promotional funds. Our marketing strategy identifies a series of niche markets, which are to be targeted in stages.
- 5. Page 5 of 13 The targeted markets are: Expatriate population in Sri Lanka Consolidators and Retail Travel Agents Tour Operators Business Travellers-Locals/Expatriates Holiday and General Travellers Employment/Student/Seaman Traffic Our marketing strategy would position ETHIOPIAN AIRLINES as a modern International carrier providing safe, efficient and reliable travel services between Colombo and the airlines network of destinations, at economical prices. Services As ETHIOPIAN AIRLINES GSA, We would provide the following services: Comprehensive ground support such as ticketing, passengers and cargo services Account functions Remittances/Sales Returns, etc. Management and Information reports Provision of bank guarantees Provision of experienced, professionally skilled and competent staff to handle all aspects of the airline. Provision for the infrastructure and comfortable office space in a city location with ample parking facility. Communication of Information As the GSA, to ETHIOPIAN AIRLINES we believe that communication of information plays an important role in the interest of both parties. This aspect extends, but not limited to the provision of : detailed, accurate and up-to-date market information on a consistent basis. consultation and regular reports on all aspects of the GSA operations at appropriate intervals. reports on the political, economic and security environment of Sri Lanka on a periodic basis.
- 6. Page 6 of 13 Combining of Skills VMS Aviation Air Services will in consultation with the Country Manager of ETHIOPIAN AIRLINES, co-ordinate all aspects of the GSA operations by strictly adhering to the policy and procedures of the principal: Strategic Planning Product and Pricing Marketing including Advertising and Promotions Sales Management Accounting Airport Operations Market Research Market research would include an in-depth analysis of competitive fares, agent commissions, incentives, cost structures and trends in the local market relevant to ETHIOPIAN AIRLINES operations. Expertise GSA would provide ETHIOPIAN AIRLINES with extensive sales and marketing support in consultation with its local management. Our personnel include professionals from the airline travel industry with decades of experience. Sales and Marketing VMS Aviation Air Services Pvt Ltd would provide support to the carrier to market its current products and also promote new destinations as they are progressively introduced. Our network of branches throughout Sri Lanka would boost sales and marketing process. Fare Structure Our fare structure objective would be to maximize returns to the online carrier within the prevailing seasonal market conditions. Special attention would be focused to maximize passenger numbers on long haul sectors to increase revenue, these includes :
- 7. Page 7 of 13 Special Interest General Tour Holiday Corporate While each individual campaign would be tailor made to achieve optimum impact on its target, a combination thereof would help to enhance the public brand awareness. This would result in the generation of additional revenue and yield.
- 8. Page 8 of 13 5. OBJECTIVES TO EXPAND ETHIOPIAN AIRLINES OPERATIONS & REVENUE POTENTIAL IN SRI LANKA 1) SHORT TERM OBJECTIVE To stabilize ETHIOPIAN AIRLINES passenger numbers in economy class, especially within its network to achieve a viable operation to maintain route profitability. 2) MEDIUM TERM OBJECTIVE To sustain and improve ETHIOPIAN AIRLINES passenger numbers/yield in economy class to expand its revenue base progressively in relation to the number of frequencies. 3) LONG TERM OBJECTIVE To work towards increasing ETHIOPIAN AIRLINES market share in Sri Lanka through diversification, partnerships, synergies and linkages of new routes, markets and destinations. 6. ADVERTISING COMMUNICATION CHANNELS The following channels of communication are available for strategic and tactical exposure: 1) Television 2) Print Media - Newspapers - English/Sinhalese/Tamil 3) Billboards in Strategic Locations 4) Online Marketing Search Engine Optimization on Google/Social Media Integration 5) Radio 6) Magazines 7) Joint Promotions with Tourist Promotional Bureau or Sponsor 8) Prestigious Balls on a selective basis 9) Sales Flyers and News Highlights 10) Outdoor and Indoor Sporting Events
- 9. Page 9 of 13 11) Periodical Press Briefings 12) Presentation of Coffee Mornings 13) Agents Seminars TELEVISION The electronic media in the country has grown in importance and by far is the most popular and powerful source of communication to most parts in the Island. TV channels are frequently and widely used by many companies as an effective vehicle to communicate and push products and services targeted at different market segments. Sri Lankas national carrier and a few other leading foreign airlines use this media to run their commercials. PRINT MEDIA - NEWSPAPERS Print is considered an effective means of communicating tactical messages which all airlines are adapting to BILLBOARDS/HOARDINGS Statistics indicate there has been an upward trend in this form of advertising lately. However, the general consensus amongst the advertising world is that it is expensive and the return for money is relatively poor. ONLINE MARKETING Technology if harnessed correctly can help organizations to cut costs and run more efficiently. The internet itself is also a powerful marketing tool. Optimizing websites could lead to very profitable markets. They organically rank high on search engines such as google when specific keywords such as flights and Addis Ababa etc. are entered. Paid advertising on google using their Adwords component is also an option. Social integration with Facebook and Twitter is not only free but extremely beneficial in terms of brand exposure. RADIO With a wide variety of channels and target demographics, radio has been, and continues to be a profitable avenue for advertising in Sri Lanka.
- 10. Page 10 of 13 MAGAZINES Lanka Monthly Digest and Business Today are the two reputable and most sought-after monthly magazines in circulation in Sri Lanka, with a readership of approximately 10,000/12,000 respectively. Both magazines contain useful information, substance and quality - thus, making them a useful tool for communication amongst the upper crust of society. JOINT PROMOTIONS This form of promotion is particularly useful to reduce costs when budgets take a beating. However it is prudent to pick the right partner of a similar status and reputation to enhance and complement each others image. PRESTIGIOUS DINNER DANCES This is a soft platform commonly used by many, to gain mileage by granting tickets at selective prestigious DINNER DANCES. The objective can be either for strategic or tactical advantage. However, the key is to ensure the value is not diluted by other sponsors so that being exclusive would be productive. SALES FLYERS AND NEWS HIGHLIGHTS This is comparatively an expensive mechanism of expanding your reach to selective target markets and these factors would be given due to consideration in this regard. These factors would be given due consideration. INDOOR / OUTDOOR SPORTING EVENTS This exercise is primarily to generate goodwill amongst our key revenue contributors and a productive platform to interact and exchange ideas. Such occasions can be used to our advantage when promoting new destinations, new generation of aircraft, and increases in flight frequency, new routes, etc. Due to the frequent misinterpretation of facts and substandard reporting standards by the local press, it is recommended that at the conclusion of the meeting to distribute handouts reflecting the news release to the representatives present to ensure accuracy. Cordial relationships with key personnel at leading newspapers should be established to gain maximum exposure.
- 11. Page 11 of 13 PRESS BRIEFINGS AND PRESS RELEASES Organizing Press Briefings to ensure that the press accurately pick up and take interest in the messages that ETHIOPIAN AIRLINES wishes to send out is a viable option. Carefully constructed Press Releases that can be distributed at low cost can also increase brand awareness. COFFEE MORNINGS & SIMILAR EVENTS These events are organized by many professional associations and organizations year-round such as the Chartered Secretaries Associations, Foreign Embassies and leading hoteliers, etc. A database is in place to target these events at a minimum cost. AGENTS SEMINARS It is an accepted norm amongst airlines that 70% - 80% of total revenue is accrued through travel agents. Hence, a series of low cost update seminars directed at various levels of staff, based on the agenda is imperative. This is to educate, help, sustain and reinforce loyalty and support. A roster should be in place to activate these seminars.
- 12. Page 12 of 13 7. ONLINE AIRLINES IN SRI LANKA Online Airlines in Sri Lanka that are currently in operation: Airline Frequency Equipment SQ 7 X WEEKLY TO SINGAPORE B777 BA 3 X WEEKLY TO GATWICK B777 CX 7 X WEEKLY TO HONG KONG B777 TG 4 X WEEKLY TO BANGKOK A300 EK 14 X WEEKLY TO DUBAI B773/777 QR 21 X WEEKLY TO DOHA A321 KU 05 X WEEKLY TO KUWAIT A300 KE 03 X WEEKLY TO SEOUL A330 SV 04 X WEEKLY TO SAUDI ARABIA B747 MH 05 X WEEKLY TO KUALA LUMPUR B737 IC 07 X WEEKLY TO CHENNAI A320 MU 03 X WEEKLY TO KUMMING B737 IX 07 X WEEKLY TO CHENNAI B738 G9 09 X WEEKLY TO SHARJAH A320 9W 07 X WEEKLY TO CHENNAI B73H TK 04 X WEEKLY TO ISTANBUL A330 FZ 14 X WEEKLY TO DUBAI B737-800 SG 14 X WEEKLY TO CHENNAI / MADURAI DH8-300 RG 03 X WEEKLY TO ABU DHABI A319 8. AIR CARGO ADDING PROFITABILITY On some routes, where ticket sales alone do not generate sufficient revenue, adding a strong air cargo business would enable the service to operate in profit. EXPERTISE VMS AVIATION AIR SERVICES could offer considerable expertise in developing an air cargo operation for ETHIOPIAN AIRLINES Maximizing profitability of the operation by optimizing the mix of cargo is the key. We will provide a comprehensive report detailing the business plan and the marketing programme at appropriate time.
- 13. Page 13 of 13 We also append below the main export commodities that are airfreight out of Colombo. Items: 1. Garments ( Flat Pack) 2. Garments (GOH) 3. Food Stuff (Inclusive of Vegetables/Fruits) 4. Beetle Leaves 5. Live Fish 6. Live Plants 7. Cut Flowers 8. General Cargo FACTORS TO CONSIDER FOR A VIABLE OPERATION TO COLOMBO - Small office space at the airport for ET - Station Manager is not required as we have the expertise to handle an online operation - Initially the type of Aircraft to operate into Colombo 757 - Negotiate on the fuel price in Colombo - Negotiate catering rates in Colombo with Sri Lankan Catering - Negotiate Ground Handling rates with Sri Lankan Airlines - Target Inbound traffic into Colombo from all ET online destinations - Target the African Market / Europe and North America