Shandong Airlines Marketing Channel Optimization

China civil aviation industry has long been under the protection of governmental administration. Compared with the foreign airlines, it was far from the overall level of them. Enterprise operational mechanism lags behind, the internal structure is irrational, and domestic market competition is in disorder, particularly the market of the passenger agents is in great chaos.With China's continuously rapid economic growth and the acceleration of the process of economic globalization, the demand for air transport will continue to increase, then the efficiency and quality of transport services will also be put forward for higher requirements. In addition to the effects and influences of the major international events such as Shanghai Expo 2010 and Guangzhou Asian Games, Aviation is bound to usher in greater demand. Due to the rapid development of civil aviation sector and the gradual opening of the aviation market home and abroad, the airlines companies in China are needed to keep up with the concept, innovate the development ideas, and seriously study the advanced management concepts and methods of foreign airlines, thus maintain the competitive advantage in the fierce market competition. With the rapid development of air transport, the airline agents, as the main sales channel of airlines, are also gradually expanding. The high agency fees have also become a major cost of the airlines. Because of the mono airline marketing channel, the over-reliance to air agent became a more and more serious problem, which has become a drag on development and a serious barrier to the rapid and healthy development of the airlines. So the airline must take effective measures to improve and perfect their marketing channels.Shandong Airlines Group Co. Ltd. (SDA), a strong regional small and medium airline in China, established in 1994, has experienced several stages such as start-up, pluralistic development, and adjustment and joint, and has been relatively rapid development. But in face of the increasing competition in the aviation market, the company has also encountered unprecedented difficulties.This paper uses Dr. Philip Kotler's marketing management ideas as the theoretical basis of analysis. By studying the relative theories of marketing, it uses PESTE analysis,SWOT analysis, Boston Matrix and other analytical methods, and has analyzed and evaluated the problems existing in the macroeconomic environment, the competitive situation in this industry and the management of internal channels. It is concluded that in order to enhance the airline's market competitiveness, SDA must attach importance to the development and construction of marketing channels. And it is proposed to build customer-oriented and diversified channels strategy simultaneously including direct marketing and distribution. Finally, the paper constructively put forward that SDA should develop a new marketing channels strategy which is relational-based, and gradually releases from the impact of GDS.