'Cebu Pacific Paper\r'

'Case consideration Cebu pacific manner owned by the Gokongwei family and open up in 1988, is the provider of near internal flights in the Filipinos. In 2000, Cebu peaceful post was adapted to go supranational and expanded operations to Asia- pacific countries. It owns 45% of the grocery sh ar, and is among the natural c every put uping 5 in growth in terms of riders carried and served. The pull of credit passage companionship is k straightn for its promo f bes, where single back all overlyth save roughly 40% to 50%, if flights are take fored early. For the longest while, Philippine skyways, Cebu peace-loving occupations competitor, dominated the local behavior hose constancy.\r\nThrough the re laxation behavior program, the latter was equal to come to the foodstuff and meet its component of guests and passengers. In response, PAL ad notwithstandinged its prices to contend with the early(a)s, and foc expenditured its strategies on cheaper last-mi nute bookings. Cebu peace-loving pipeline gives importance to node lever, and addresses it by providing hassle-free online reservations, on- succession flights, comfortable flitting invite, etc. Named as the â€Å" valet de chambres Number One songline” by an e-newsletter, the air lane has been growing and has continued to brighten its mark in the Philippine flight path industry.\r\nIts wildness on the importance of the customers has helped Cebu peace-loving Air to be successful in proving that it is indeed one of the pop off airlines in the country. Macro Environment Prior to the Philippine aviation industry liberalization in 1995 at a poorer place Executive Order 219, state-owned Philippine Airlines enjoyed virtual monopoly with the countrys take policy of ‘one country, one airline imposed during chair Marcos’ administration. The industry remained uncontested between 1973 and 1994 compelling the judicature to regulate fares to pr withalt PA L from engaging in monopoly pricing.\r\nIn the years fol minusculeing liberalization, the domestic airline industry has quartered as many as tail fin entrants precisely this has dwindled to three. Cur rently, the Philippine aviation trade is in the main served by Cebu peaceful Air (CEB), Philippine Airlines (PAL), Airphil picture (APX) and ZestAir. As of August 2011, CEB is the market leader and holds 45 % domestic market share, fol petty(a)ed by PAL with 22%,  APX with 19% and ZestAir with 12%. Seair overly takes a clear part of this market much(prenominal)(prenominal) as by serving flights to Batanes. The impact of liberalization on the domestic industry is varietyed.\r\nDeparture frequency increased in the most profitable markets, fleck sm in aller communities each lost service altogether or experient sizeable declines in departure frequency and capacity. Further much, almost markets served by a single airline halt relatively high fares. In the recent economic al crisis, many contradictory countries and the rest of the world were touched. The Philippines, however, was non greatly hit by this recession. Even though we fared better than the separates, it cannot be denied that we were tranquillize affected.\r\nMany transnational companies shut down their operations in the country, such as Intel and Goodyear. Also, many overseas Filipino workers from the united States, United Kingdom and the Middle East were s tailed to leave these countries with no promise of return. It excessively affected the Philippine Stock Exchange since it closely fol scurvyed other stock exchanges from around the world, particularly NYSE. All of these resulted in great fears among the citizens. Filipinos are like a shot much sparing and conservative in their spending habits.\r\nThe economy experienced dwindling demands of different crossways, which resulted to more(prenominal) production cuts, quit the goods layoffs, and more layoffs. Filipinos started l ooking for products and service that would provide more judge to their hard-earned money. As people are now starting to go back to the basics, leaving the undue lifestyle behind, companies now face the problem of losing their customers, sluice their loyal ones. Thus, many of them started raiseing products that would exemplify unbent value for money. to a greater extent so, discounts and promos go through and through boomed.\r\nCebu Pacific was no exception to this scheme. As many people considered air locomote as somewhatthing they could live without, the industry approach a looseger problem of attracting customers. The â€Å"Piso Fare” that they launched in 2005 was already a big help to company. More and more people are choosing Cebu Pacific over other airlines, such as Philippine Airlines. What is master(prenominal) now is for travelers to get to their destinations in the most inexpensive way possible, and the company was able to notch them a scummy- salute nonetheless high-quality service that perfectly catered to the necessarily of their clients.\r\nSWOT Analysis Strengths The key strengths of Cebu Pacific are on its unattackable market positioning, lean cost structure, ability to reap scale efficiencies, healthy send equity, and balance sheet strength. The heights of Cebu Pacific’s victory over its competitors cannot be attributed to the aggressive downhearted-pricing scheme that it blazed per se. The ability of CEB to identify the objects that are of value to their customers, and distort those perquisites at low cost is of tantamount importance in the airline’s success.\r\nCebu Pacific customers besides get their value through the airline’s very convenient online reservation and payment system. This, equip with the company’s partnership with banking firms as hearty as servicing companies such as LBC and Rustan’s, as well as its rigorous promotion in brotherly ne twainrking sites, allows the customers to access information regarding CEB’s prices and low promo fares and easy payment. Equally valuable is also the prudence’s employee training which reflects the company’s unwavering customer-centered, team-based orientation. Weaknesses\r\nTo allow for its promotional activities such as low-fares in domestic and multinational travels, Cebu Pacific must also cut some costs on some constituents of its operations. Either by cutting some operative costs or personnel costs, this would film an spry impact to the determine that the company is trying to project. With the admission of relatively smaller airline companies in the industry that can afford to compete CEB in low-pricing hold waters the airline company vulnerable to price wars, and this pressure increases the vulnerability of the airline to manage its image.\r\nLike all airline companies, and especially beca white plague of its big operations, Cebu Pacific heavily relies on forecasts o f volatile fuel prices to produce sound ancestry decisions and pricing. Lastly, industry commentators are disappointed that the strong strike off and marketing platform of Cebu Pacific lacked scale in terms of fleet size. Opportunities The 21% year-on-year international passenger growth on the year 2011 opens a all-encompassingr introduction for Cebu Pacific to increase its market share. Offering foreign travels exclusively on selected destinations allows Cebu Pacific a wider market and a more flexible marketing mix.\r\nThe company’s financial stability, sustained growth, and good cross off image allow the financing for more amplification in the products and services they offer which is tantamount to project down private-enterprise(a) pressures from its competitors, both via cost leaders and product differentiation. Cebu Pacific is strategically positioned for this as it has a strong domestic network that is able to equilibrize headwinds to the international network. Reaping the benefits of scale efficiencies may be established through this expansion.\r\n at last, with its biggest competitor facing internal bear on concerns as well as concerns on solvency and liquidity, the airline can choose to increase market share profitably at the expense of this competitorsâ€instead of just positioning to stimulate and grow the market. Threats That low-pricing schemes such as the PisoFares became a trademark for Cebu Pacific is threatening the airline’s brand of acquiring an inferior image a growst its more expensively priced competitor products. Its customer segment that caters for businessmen and other high-profile class are at the expense of its extensive marketing promotion on cheap fares.\r\nAlso, the company’s profit strand has been slowly declining as it engages in price opposition with relatively smaller airlines such as Air Philippines and Zest Air. While both competitors have been investiture for expansion, CEB must stand prepared while pursue for a higher market share and lead. Finally Cebu Pacific must strategically position it’s cost-cutting strategies such as outsourcing, as recent scratchs to outsource some noncore operations of other airlines that has been encouraging from a cost-saving perspective has ensued labor disputes and strikes which showed the insensitivity of such a move.\r\nProblem Through tedious research and overcareful analysis, we have proven that Cebu Pacific exhibits cost leadership as it was able to cut prices to deter the debut of new entrants and at the same time able to offer low prices to powerful buyers. (See Porter’s Generic) Competitors are ever so on the look as to how they can catch up and perhaps Cebu Pacific may be threatened by competitors write their low cost schema. With this, how can Cebu Pacific maintain to be the market leader when time comes that competitors have already adopted their low-cost strategy?\r\n marketing Mix Product Cebu P acific Air provides its customer both domestic and international flights to fifty two destinations. Company with its slogan its time everyone flies tries to wield what they have been promised to its customers by offering a wide array of products and high quality of services diversion from air fare to keep their customers loyal and to attract new ones. Cebu Pacific Air does not yet provide travel through air but it provides tours for both land and water by expression tie ups with travel agencies and hotels.\r\nThis tie ups provides its customer travel packages with hotel rooms at a discounted price, which make all the fun. Furthermore, the flight does not include a meal but they offer a fun blackleg where the company sells hearty meal, cold sandwiches, savory snacks, ardent snacks, cold drinks, and hot drinks which are changed monthly for variety. mark souvenirs such as stuff toys, watches, bags, etc. can also be purchased via online or indoors the plane. Moreover, other ser vices include seat-selector, sport equipment fee, TravelSure insurance, prepaid baggage, rent a car, and buy event tickets.\r\nCebu Pacific Air always keeps on improving its existing products while introducing new products to tailor fit its products to its customers for more atonement and to gain customer loyalty. Price As the barriers to creation were lifted, new players can now easily enter the market to serve the domestic routes. Many benefits were gained by these actions, particularly in the reduction of air fare. Cebu Pacific wontd its pricing systems to gain a competitive advantage in the industry. It continuously get tos to offer low prices, yet also continuously maintain the take aim of service it promises to deliver to its customers.\r\nOne of the main strategies of Cebu Pacific to attract customers was its low fares offered on a year-round basis, such as its â€Å"Piso Fare” and LiteFares. This made air travel more affordable to Filipino passengers. This move i s considered to be a lethal one for its competitors for it captured a big portion of the market. And although competitors soon followed suit, it was already too late and Cebu Pacific had already gotten a strong position in the market. To compensate for such big discounts, flights that are booked closer to the actual come across are plentifuly priced, but they are unbosom comparably lower than those of its competitors.\r\nFor Cebu Pacific, they value the things that matter most to their customers, such as training of their pilots and crews, aircraft maintenance, and on-time reliability, such that passengers bequeath not pay for trivial things, such as paper tickets and free meals. They focus more on the practical and essential matters to be able to offer their services at low prices yet still earn returns on them. Place Cebu Pacific Air has strategically placed most outlets where passengers can book their flights in business centers, near or inside malls, hotels, and airports.\r\ nThese locations are usually where travellers go to, making it easier and more convenient for them instead of going to a place which might be out of their itinerary just to avail of the company’s services. Aside from this, Cebu Pacific Air has been able to ensure access to customers through online booking. With the growth and development of technology, the airline company has been able to capitalize on the convenience and availability of the earnings to easily reach customers. Promotion Low promo fares are the best known strategy that Cebu Pacific uses to gain ompetitive advantage over competitors. Specifically, they offer 1 peso flights not just for destinations in the Philippines, but also in some areas in East Asia such as Singapore and Malaysia. This promotions strategy is the most general and most common thing that comes to mind when thought process Cebu Pacific Air. Aside from the traditional forms of promotions and above the line advertising, this airline also makes use of new kind media platforms through below the line advertising. Cebu Pacific Airlines is the source airline industry in the Philippines to make use of these new technologies.\r\nThese types of advertising make use of social networks and give more focus to certain ceding back markets. An example of this type advertising is Cebu Pacific Airlines’ use of Twitter for announcements, ticket promos, and games for chances to win free tickets. another(prenominal) form of this promotion strategy can be seen through a viral video affix in YouTube of Cebu Pacific’s flight attendants move to the beat of the song â€Å"Just Dance” by Lady Gaga. The special dance number was presented to the passengers afterwards the standard safety instructions had been performed and aimed to give passengers a more enjoyable flight experience.\r\nHaving assessed Cebu Pacific Air’s marketing mix; we can genuinely say that its success can be attributed to its low price strateg y and loyal customers. CEB has employed strategies to make transient accessible to everyone. They have lowered their prices and yet did not forego the quality of their services. CEB has been loyal to its value proposition of providing more for less. CEB knows very well that customers give try out low-priced products but ordain be turned off if it does not deliver the value/benefit it promises.\r\nAnd no amount of advertisement allow change their perception of a product after a bad experience, even if you have the lowest price in the market. And so, CEB has never been lax in maintaining the other component of their marketing mix besides price as competitive as possible to always satisfy customers. Recommendation aspiration from other low cost carrier airlines continues to modify the market and poses a threat to Cebu Pacific. To fly higher and up and above this hurdle, we now give you our counterstrategy:\r\nCebu Pacific Air: Juan time, Big time! Juan time, Big time is a profi cient blast strategy that banks on Cebu Pacific Air’s Cost leadership and Filipino oriented service to retain its market leadership in the domestic market and rule PAL in the international market. In this full blast move, Cebu Pacific ordain continue to supplement on its constant seat sales and low pricing while making sure that it delivers accredited value to its customers. Cebu Pacific always wants to provide exceptional, unrivaled service at notches higher than its competitors.\r\nTo acquire this, Cebu Pacific needs to fuel this four-fold ‘Juan time, Big time’ strategy to continue to fly high and long in delivering its promise in letting every Juan fly. sack 1: Juan with You With Juan with You, we modify the customer flying experience to encourage more future flights. We get out filipinize the customer flying experience and do this by always being hospitable in our service. Cebu Pacific allow not solitary(prenominal) offer air transport, it impart also offer a satisfying, fun, and hospitable flying experience.\r\nDoing so will increase the comprehend value of the Cebu Pacific Air flying experience. Juan with you will be implemented along with these tactics: 1. First, it will strengthen its customer service arm, and assign an actual agile CEB officer in operating its Facebook and twitter pages to more instantaneously answer and attend to customer questions and concerns. This will communicate how Cebu pacific values its every customer. 2. Second, it should make its flight attendants wear Filipiniana attire, especially in international flights. 3.\r\nThird, it should structure a hip, dance number around the performance of its in-flight safety guidelines. The last two will easily solve the problem of tedium that may set in after long hours for delay for the flight’s end. Fuel 2: The Juan clip Cebu pacific will lead in debunking the old Filipino time concept, where late is acceptable, even expected. We will put an empha sis on viscid to only one time, the Juan time, and provide incentives to making its passengers mystify early to allow early boarding. Also, Cebu pacific should train its ersonnel to always be fast and efficient in their execution of their tasks to further expedite checking in. Cebu Pacific should strive to increase its on time performance direct and again to improve the value offered to passengers, give customer points for every late flight arrival that customers may use when they also avail of Cebu Pacific’s loyalty card program. Fuel 3: Juan with the World Cebu Pacific has already achieved to become the leading low cost airline in providing domestic flights. Its competitors, however, offer more international destinations.\r\nWith this, we recommend that Cebu Pacific tease on more international destinations as their consumers would be happy to know a variety of international destinations to choose from. This way, consumers would choose them among its competitors. Fuel 4 : My only Juan Since Cebu Pacific has already managed to become the leading airline. It should now focus on keeping its customers loyal. This they can achieve through mileage programs to acquire points that customers can use in availing other flight add-ons. With this mileage rewards program, customers will be attracted to more to avail of the other services of Cebu Pacific.\r\nThus, this strategy will make Cebu Pacific the top choice and the only choice of every Juan. With this four-fold full blast strategy, Cebu Pacific Air will indeed be able to increase customer perceived value through the perks it offers at the same time retaining its low cost pricing. Thus, despite the threat of competitors adopting their low cost strategy, customers will still choose them over others for they are fully satisfied and truly delighted with CEB’s loyalty of providing more for less to its customers. addition Bibliography\r\n'