INTRODUCTION This is a case study as requested for the submission as an individual Practical Assignment for the module of Retail Marketing
This is a case study as requested for the submission as an individual Practical Assignment for the module of Retail Marketing (DM 4004 FP) in the HIgher NItec in Visual Merchandising.
The brand selected is Singapore Airlines (SIA), the national carrier of Singapore, which was incorporated in 1972. Being one of the most successful airlines in the world, SIA was presented with numerous accolades and awards. SIA is also listed on Singapore Exchange, with Temasek Holdings being its majority shareholder ¹ (Singapore Infopedia, 2010).
2.1 Company Background
SIA origins date back to the formation of Malayan Airways Limited (MAL) by British Imperial Airways, Straits Steamship Company and Ocean Steamship Company of Liverpool, formally established in Singapore on 21 October 1937. MAL laid dormant for almost a decade before making its first maiden commercial flight on 1 May 1947 due to doubts over the commercial viability of a Singapore–Malaya air route back then, as well as the outbreak of World War II 1 (Singapore Infopedia, 2010).
Thereafter, MAL expanded continuously. On 16 September 1963, MAL was renamed to Malaysian Airways upon the formation of the Federation of Malaysia. However, the airline was renamed again to Malaysia-Singapore Airlines (MAS) in May 1966, following the exit of Singapore from the Federation on 9 August 1965 1 (Singapore Infopedia, 2011).
Despite MAS was lucrative, both Singapore and Malaysia governments had disagreement over the airline’s corporate direction. Eventually it led to the separation of MAS so that each country will have its own national airline. In 28 January 1972, Mercury Singapore Airlines was incorporated as the Singapore carrier. As Mercury Singapore Airlines had the same acronym as the dissolved Malaysia-Singapore Airlines, exasperated Malaysia intended to take legal action against Singapore. On 27 June 1972, Mercury Singapore Airlines was renamed as Singapore Airlines to resolve the issue 1 (Singapore Infopedia, 2011).
Incorporation of Malayan Airways Limited by British Imperial Airways, Straits Steamship Company and Ocean Steamship Company of Liverpool.
Singapore Airlines was incorporated after the split when Malaysia-Singapore Airlines ceased operations.
Singapore Airlines introduced the first non-stop air services from Singapore to the USA, flying to/from Los Angeles and Newark. 2 (SeatMaestro, n.d).
Singapore Airlines’ award-winning magazine, SilverKris, goes online 2 (SeatMaestro, n.d)..
CURRENT MARKET SITUATION
3.1 Market Situation
The airlines industry remains strong 4 (Zhang, B., 2018) and it is experiencing a prolonged period of growth and profitability 3 (Woods, T., 2018). According to Airports Council International, there was a significant increased in the number of passengers as nowadays airlines are becoming safer and more efficient 4 (Zhang, B., 2018).
The increased in demand also represents the increased in passengers’ expectation on quality, price and service 4 (Zhang, B., 2018). Newly emerged low-cost airlines over the past decades increased competition between airlines, creating an environment of squeezing profit margins 3 (Woods, T., 2018).
In addition to the intense competition and rising cost, airlines faced major disruptions over the past couple of years and these complex challenges that plague airlines were caused by anything down to natural catastrophe 4 (Zhang, B., 2018).
3.2 Retail Trends and Issues
BRAND GOALS AND OBJECTIVES
4.1 Brand Goals and Objectives
The following can be found in Singapore Airlines Sustainability Report FY 2017/18:
8 (Singapore Airlines, 2017)
Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality, and to maximising returns for the benefit of our shareholders and employees.
EXCELLENCE – We strive to be the best we can be. Every time.
SAFETY – We put safety at the core of everything we do. Every time.
CUSTOMER-FOCUS – We understand our guests so we can truly delight them. Every time.
CARE – We care for our people and community. Every time.
INTEGRITY – We go out of our way to do the right thing. Every time.
TEAMWORK – We work as one team to achieve our goals. Every time.
Singapore Airline strives to serve their customers
4.2 SWOT Analysis
Local brand- highly supported by local market.
A world-renowned airline.
Largest Asian airline in Europe CAPA, resulting in competitive advantage over other Asian airlines.
Most awarded airline in the world.
Developed a premium branding over the years, one of the most expensive airlines in the world.
Customers view SIA as expensive and overly luxurious, resulting in them not engaging with SIA.
May face existential crisis if demand for airline decreases in international markets as Singapore is a small country and SIA depends on international traffic.
SIA currently only flies to 35 countries. There are many opportunities for them to expand their list of destinations.
SIA could also increase their flight frequencies in their current market.
SIA faces threats from both direct and indirect competitors such as Emirates Airline, All Nippon Airways, China Southern Airlines, China Eastern Airlines, Air China, Qatar Airways, and Etihad Airways.