Marketing Mix of Delta Airlines: 7 P’s
|Company Name||Delta Airlines|
|Industry||US Aviation Industry|
|Net Revenue 2018||$44.44 billion|
|Net Income 2018||$3.94 billion|
|Leading Competitors||Southwest, American, United, JetBlue, Skywest, Alaska, Republic, Spirit, Frontier.|
Delta is one of the leading airline companies based in the United States. As one of the leading airline operators in the US, Delta enjoys a large market share and has maintained a strong presence in the North American market. The leading position of Delta Airlines in the United States market can be attributed to its large fleet size and industry-leading partnerships. The headquarters of Delta airlines is in Atlanta, Georgia. Its CEO is Ed Bastian and the company employs around 88,680 people.
Over the past several years, the financial performance of Delta airlines has continued to grow stronger. Delta’s net revenue reached $44.4 billion in 2018. The US airline industry is considered highly challenging and full of risks. However, Delta’s strong focus upon operational efficiency, customer service, and customer experience have helped the brand retain its popularity and market position.
In this marketing mix, you will learn about the seven P’s or the seven components and how the company has managed each of them.
Delta operates flights to more than 300 destinations across 60 countries. The company offers more than 5000 daily departures as well as more than 15000 affiliated departures. Since its foundation in 1925, Delta has grown into one of the largest global airline companies. Its large fleet includes 871 operating aircraft. Delta owned 675 of these and leased 196 (as of 2018). Regional carriers also operate 445 aircraft on behalf of delta airlines.
The products and services offered by Delta airlines also include a wide range of premium services. Leading inflight products and services provided by Delta include Delta Comfort+, Delta One, Delta Premium Select, First Class and Main Cabin among many more. Delta comfort+ is available for customers on nearly all the Delta and Delta Connection aircraft. There are several premium conveniences included as a part of Delta Comfort+ which include among others, snacks and complimentary Starbucks, beer, wine and spirits on most flights. Delta Premium select on the other hand is a superior economy cabin available only on select international routes of Delta airlines. Some of the premium conveniences included as a part of Delta Premium Select include dedicated flight attendant, high-resolution entertainment screen as well as TUMI amenities and priority Sky service among many more. Apart from its large range of premium services, Delta also offers Basic Economy (E booking class) services. Other services by Delta airlines include Delta cargo, shuttles, private jets and Delta vacations. The company also offers special services for passengers with disabilities.
Delta airlines has its head office in Atlanta, Georgia. It has an industry-leading route network that covers more than 300 destinations across 60 countries. The company has also partnered with other international airline brands to expand its global presence and route coverage. Delta has adopted a hub and spoke model of business operations. Its business is centered around some key hubs and key markets. The main hubs in the operations of Delta airlines include airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Mexico City, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, São Paulo, Seattle, Seoul-Incheon and Tokyo-Narita.
Monroe is a wholly-owned subsidiary of Delta Airlines which has its operations in Philadelphia, Pennsylvania. The Trainer refinery facility operated by Monroe includes pipelines, terminals, and terminal assets which allow the refinery to supply jet fuel to Delta’s airline operations throughout the Northeastern US including company operations in NewYork.
With regards to pricing, Delta airlines has adopted an approach that enables it to cater to the demands of various customer segments including basic and economy to premium.
This pricing strategy has helped it retain its market share amid stiff competition while also maintaining the image of a customer oriented airline business.
Apart from the basic economy services through which Delta offers flight services at competitive costs, the company has brought a large range of premium services targeted at affluent travelers. In this way, Delta’s flight services are available to customers at various price points based upon their preferences. However, its large range of premium services has helped attract wealthy customers in larger numbers and generated extra cash flow. Its varied pricing strategy has also helped the company manage the price competition in the industry. Since Delta has achieved a strong competitive edge, that has also helped the brand manage the price competition in both the economy and premium segments.
With regard to promotion, the most common channels used by leading players in the Airline industry include digital channels and social media. Its website and app are leading channels of marketing and promotions for Delta airlines. However, social media is also one of the leading channels for promotions, publicity and sharing information with passengers and followers throughout the globe. Delta calls its marketing strategy customer oriented marketing. Apart from digital promotions, the company also uses other channels to gain publicity like fashion shows and art projects. In 2017, the company was listed as one of the top ten most innovative companies by BizBash for its outstanding marketing strategy. However, one important factor that has helped the company grow its popularity and strengthen its position in the US airline industry is its focus on customer experience. Delta airlines also invests heavily in CSR and sustainability to maintain a strong social image.
The airline industry is a labor-intensive industry and any airline brand has to hire skilled professionals for successfully running its business operations. Apart from skilled pilots other staff that constitute the workforce of Delta Airlines Inc include Flight attendants, ground support personnel and other personnel. Delta airlines had employed 88,680 people as of end 2018. The Ceo of Delta Airlines is Ed Bastian. Since employees are an important source of competitive advantage in the airline industry, Delta places a special focus on human resource management and its organizational culture. Apart from hiring, competitive salaries and performance management, the company also places a heavy focus on diversity and inclusion to maintain an employee and customer friendly work culture.
Operational effectiveness is an important focus area for Delta airlines. During recent years, Delta has made heavy investments into technology to improve its operational effectiveness and offer its customers higher convenience and superior flying experience. The company has made heavy investments in customer-facing technology such as delta.com, mobile device applications, check-in kiosks, customer service applications, application of biometric technology, airport information displays, and related initiatives as well as the security of these initiatives. The company has also upgraded and continues to upgrade its technology infrastructure and the supporting IT systems. Higher operational efficiency has resulted in superior customer experience and improved processes leading to higher popularity and increased demand.
The tangible aspects of the flight experience include the fleet, the airport infrastructure, and the branded merchandise mainly. The website and app, as well as online transactions, have replaced the need for paper bills. However, Delta’s enormous fleet, as well as inflight amenities, are a significant part of the physical evidence of its business processes.
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|APA||Pratap, A. (2020, February 4). Delta Airlines Marketing Mix. Retrieved from https://notesmatic.com/2020/02/delta-airlines-marketing-mix/|
|MLA||Pratap, Abhijeet. “Delta Airlines Marketing Mix.” Notesmatic, 4 Feb. 2020, notesmatic.com/2020/02/delta-airlines-marketing-mix/.|