Marketing Audit for Boeing

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Marketing Audit for Boeing

• Marketing Management 586
• Spring 2006
• By
• James Parker, Kellie Logan, Sally Wencel,
• Barry Corum, Jeff Thul

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History of the 787 Dreamliner

• Started assembly in 2006.
• Designed due to declining air travel after the
  attacks on September 11, 2001.
• Increase fuel costs

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The 787s Features
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The 787s Features
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The 787s Production Process
Boeings new streamlined production process.
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The Macroenvironment

• Global population growth in developing countries.
• Increase in average life expectancy in western
  civilization.
• Increase of disposable income in developing
  countries.

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The Macroenvironment

• World Trade Organization (WTO) litigation between
  U.S. and Europe
• Response to customer wants and needs
• Energy and material conservation
• Increasing world wide demand for commercial
  airlines.

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The Macroenvironment
20 Year Market Potential
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The Macroenvironment

• Competition
• Airbus Industries of Europe
• Formed in 1970
• From a Fledgling to a Formidable Opponent
• Since 2000 Airbus has been the number 1 in sales
• In 2005, achieved a 51 share of global market
• Market, sales, and delivers to end user.

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The Macroenvironment

• Differences between Boeing and Airbus
• Airplane size
• Point-to-Point vs. Hub-to-Hub
• Its more accurate to say that we have two
  distinct views of the market. We believe that
  airlines ultimately respond to what passengers
  want more opportunities to fly where they want
  to go, when they want to go. Randy Basler
  VP Marketing

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Boeing SWOT Analysis

• Strengths
• Innovation and Technical Expertise
• Strong reputation of quality and industry
  leadership
• Long-standing customer relationships
• International customer base
• Supplier-Component Manufacturer Networks
• Commercial Aircraft is one of six business
  divisions

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SWOT Continued

• Weaknesses
• Development Costs for new products 8-10 Billion
• Reliance on Suppliers-Component Manufacturers
  (both strength and weakness)
• Opportunities
• New technologies to build lighter, longer range
  aircraft
• New airline customers in Asia and Pacific market
• Airline travel pattern changes supporting Boeing
  product line

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SWOT - Continued

• Threats
• Aggressive Airbus Price Discount Practices
• WTO dispute regarding EU subsidies
• Changing economics
• Domestic airline bankruptcies
• Changing governments, politics and business
  partners based in those countries
• Example Dubai Port management controversy
• Air travel vision could be wrong

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Mission Statement

• The Commercial Airplanes segment is involved in
  developing, producing and marketing commercial
  jet aircraft and providing related support
  services, principally to the commercial airline
  industry worldwide.

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Market Strategy

• Three prong strategy
• Establish international partners in production
• Use light weight materials
• Develop new midsized aircraft
• Sales department overhaul
• What are the results?

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Market Strategy Payoff
Confirmed Orders
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Marketing Productivity

• Objective Profitability
• Expects to earn almost 57 of the revenue for the
  787
• Competitor Airbuss A350

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Marketing Function Audits

• Product Line Objective
• Program to replace 737
• Derivatives R Us
• Price 737 lower than A350
• Differentiating their product

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Marketing Function Audits

• Differentiating their product
• Central themes of advertising
• Technology
• Cost Effectiveness
• International Air Show
• Randys Journal
• www.boeing.com/randy/
• Scott Carson