Download Airtours Case Study Swot Analysis

David Kilburn
Head of Business Development
Chartered Marketer
Barclays Fellow in Marketing
Definition of Marketing
Marketing is the management process
responsible for identifying, anticipating
and satisfying customer
requirements
profitably
Airtours Case Study
Swot Analysis
•
•
•
•
•
•
Strengths
Vertical integration
Experienced management team
Ambitious acquisitions
Diversifying its market and reducing
dependence on U.K. market
Good range of choice of holidays
Different distribution channels
Airtours Case Study
Swot Analysis
•
•
•
•
Weaknesses
Proliferation of brand names – could cause
confusion
Prodigious growth – will the bubble burst?
Bewildering range of acquisitions
Local company with international ambitions
Airtours Case Study
Swot Analysis
•
•
•
•
Opportunities
To become the number one U.K.Tour Operator
To be the market leader
To diversify in to other tourism related sectors
such as green tourism, ecotourism
To anticipate future trends in the travel industry
Airtours Case Study
Swot Analysis
•
•
•
•
•
Threats
Consumers tire of the same old holidays to
Spain, Portugal, Majorca, Ibiza, etc.
Growth of low cost airlines
Consumers can plan their own holidays and put
the package together saving 10% on the cost of
using a travel agent
Economic downturn, rising interest rates
Changing consumer behaviour
Airtours Case Study
Future Challenges
•
•
•
•
•
•
Staying one step ahead of the competition
Political and Economic uncertainty
Unpredictable Consumers
Terrorism
War
Airport security
Airtours Case Study
Branding Strategy
• Proliferation of brands across the business
Why?
• Gives consumers more choice
• Sub brands can be more up market or discount
• Brand probity of umbrella brand (Airtours)
can be enhanced or damaged by performance
of sub brand
Airtours Case Study
MyTravel rebrand
• The company had expanded rapidly and offered
a confused message to consumers
• Consumers were seeking alternative types of
holidays – fed up with packages
• On the one hand - a good idea to rebrand
• On the other hand – consumer confusion can
lead to loss of brand equity and falling sales
Airtours Case Study
Reasons why MyTravel has
performed badly
• Rebranding coincided with a downturn in the market
caused by terrorism and economic uncertainty
• The company grew too large and confused customers
with too many brands and business units
• Innovative and entrepreneurial founder, David
Crossland has retired so the company has lost its
visionary leader.
• Difficult market conditions, heavy discounting reduces
profitability and damages brand equity.