Since price is the main competitive edge for all commercial airlines, the key marketing area for any is to compete on services alongside price. The target customers are working and retired individuals aged 25 to 60 living in the UK and Europe. To appeal to the price conscious mind of the target group a commercial airline company could offer a membership club that gives rewards on flights taken by an interrelated group. The main message is: “Commercial airline is better for your family and friends; better for you”. The club is to support build the airline brand as a favourite airline since it rewards people for flying and over powers the frequent flyer concept by giving points based on group travels.
The promotion would start with a direct communication to the airline registered website visitors providing them with the details of the club and asking them to refer at least three more individuals to register with the site. It is estimated that this first level of communication would generate more than 64,000 new records and more than £314,000 in revenue. The numbers would double through a brand awareness campaign targeting customers through online advertisement, TV commercials, outdoor display ads, and press advertisement. The allocated budget is set initially to £1.4 million for the first quarter of 2010 and would be followed by another run of the most effective communication channel to establish the club within the minds of the target consumers.
The campaign success would be measured against the completed registration on the site and the increase in conversion rate. Furthermore, a survey would be provided to customers who registered and the results would bring more insights and better understanding of how the travel club would serve the commercial airline as a customer loyalty program.
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