Essay About Product Strategy Of The British Airways And Product Levels

Product Strategy Of The British Airways:
Essay Preview: Product Strategy Of The British Airways:
Report this essay
Product Strategy of the British Airways
1.1 Introduction to product strategy
Product is the most important component in an organization. Without a
product there is no place, no price, no promotion, and no business.
Product is anything that can be offered to a market to satisfy a want
or a need. It is the core ingredient of the marketing mix and is
everything favorable and unfavorable, tangible and intangible received
in the exchange of an idea, service or good (Kotler 11th edition,
2003). British Airways is a business offering service products,
flights across destinations, in the transportation industry. Service
is an intangible product involving a deed, performance or effort that
cannot be stored or physically processed, were customers directly
participate in the production process.
Product strategy is therefore very vital for the organizations
success. It needs to be developed and manage very careful in order to
be successful. British Airways product strategy includes flight
services, quality of flights, various destinations across Europe and
the world, executive class, business class, speed, security, support
facilities and years of experience. It provides the basic product and
various alternatives to satisfy all the different customer needs.
1.2 Product Levels
[IMAGE]
If we have a brief look at Kotlers five-product levels theory, there
are five products levels in regards with the quality and the
expectation of the customers and each level adds more value to the
customer (Kotler 11th edition, 2003).[1]
1. At the beginning is the core benefit, the fundamental service or
benefit that the customer really buying. The most fundamental level is
the core benefits; what the customer really buys. In British Airways
customers buying flight tickets to satisfy their basic need which is
to flight from one destination to another.
2. The second level is the basic product, were customers book their
seat on a schedule flight to a particular destination. British Airways
flies to the busiest airports in Europe in 95 different cities and to
58 other destination across the world. It is by far the busiest
Airways company in the world operating a big number of airplanes
3. The third level is the expected product in other words the
condition buyers expect when the purchase their tickets. In British
Airways customers expect to have an allocated seat, meals and drinks,
on board entertainment good service, in contrast with Easy-Jet were
customer just buy a ticket with no allocated seat and without on board
service of food and drinks.
4. The fourth level is the augmented product that exceeds customer
expectation. The augmented product is the extra services that British
Airways provides and the support facilities. It has three different
executive classes for different needs: the blue, the silver and the
gold. For the member of the silver and gold there are executive
lounges in all the main airports where customers can relax away from
the noise and eat something or even have a shower and go to the gym.
Customer from the first class can even enjoy an on board sleep in
their own bed seat. For busy people were time is money British Airway
offers great services to eliminate any time lost.
1.3 Adding value to the customer (the augmented product)
In the product development a key factor is the companys positioning
in order to choose the best possible strategy. British Airways has
positioned it self as high standard, high quality airline and its the
leader in its category. Thus the strategy that follows it is not stop
at the expected level but continues with emphasis to the augmented
product level. British Airways does not only concern for the core
product, but it pays a lot of attention to the augmented product as
well. It tries to satisfy all the different customer needs and
expectation from an economy class to the business and the first class
providing various services. It has different lounges for the first
class customer and an on-board menu for the food and wines than it has
for the economy class. British Airways offers business class seats,
blue / silver or gold card for frequent fliers and executive lounge at
all main airports. It also provides customers with free food and
drinks on flights and very good service. It has as well