China Southwest Airlines Marketing Analysis And Countermeasures

Writing Purpose:As a highly developing service industry with characteristics of high technology, vast investment and low benefits, the air passenger transportation is a centralized reflection of global economy trend. So far, four major alliances have been formed in the world, such as: Star, One World, Wings and Atlantic Excellence.Being one of the major airlines in China, China Southwest Airlines (CSWA) influenced by the long existing planned economy, and threatened by the three major group airlines and some local airlines, is in the competition situation of small scope and less benefit. The prospect of CSWA is somewhat poor. This article will focus on how CSWA is to cope with the challenge.Basic idea and logic structure:By discussing history of air transport development from international to domestic, using Porter Model to analyze five-competition power of air transport, it is concluded that the competitors inside the industry should be heavy concerned currently. CSWA should set up Focus strategy by SWOT analysis, and STP to take the golden chance of Western Region Development, and improve 4P's strategy and carry out marketing innovation. The contents and main ideas:Chapter one is mainly on the four major developing trends of China air transportation market by analyzing the feature of air transportation market. Comparing the development of CSWA with international air transportation market and China aviation market, four major aviation alliances resulted from the Global Economy.Chapter Two studies the substantial threaten and also opportunities for CSWA by analyzing the surrounding of China air transportation market and the five trends of the industry competition with Porter Model. The author recommends CSWA should carry out Focus Strategy compatible with its advantages and disadvantages. Chapter Three studies the target marketing strategy by segmentation of geography, population, physiology and behavior, and CSWA should implement selective professional marketing and position on the relationship advance and value advance in accordance with 3C Strategy. In Chapter Four, the author explores the marketing strategy improvement of CSWA. By analyzing the characteristics and level of air transportation product, CSWA should pay more attention to the interconnection of international, domestic trunk flights and regional flights, offers the Seamless service by code-sharing. The market price system of multi-cabin and multi-class will be a trend although there is discount disturbance corresponding to CAAC administration price system. The solution of place construction should combine BSP qualification with directive distribution and Internet booking by analyzing the advantages and disadvantages of current agency system. Image strategy can emphasize and promote Western Aviation by means of advertisements and multi-media. Finally author believes marketing innovation including one-to-one relationship marketing and Frequent Flight Passenger plan will be helpful to enhance CSWA's market.Main contributionThis article pays attention to how to improve CSWA marketing strategy by combining its own condition with theory, corresponding to CAAC price competition situation under transformation from planned economy to market economy, and believe it will play a role in its operation. Main contribution is forecasting trend of multi-cabin and multi-class market price system, marketing innovation including one-to-one relationship marketing and Frequent Flight Passenger plan.