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Air New Zealand Marketing Strategy

Submitted by leongb on July 26, 2008

Category: Business
Words: 3052 | Pages: 13
Views: 44
Popularity Rank: 113,961
Average Member Grade: N/A (Add a Comment / Grade this Paper)

Introduction
Air New Zealand Limited was incorporated in 1940 registered in New Zealand, initially founded as Tasman Empire Airways Limited. Air New Zealand is a government owned airline based in Auckland; the exterior design of the aircraft carries the national flag.
It provides air passengers international and domestic transport services to 48 destinations. Focus cities include Wellington International Airport, Christchurch International Airport, and Los Angeles International Airport.

“Air New Zealand also encompasses business units providing engineering and ground handling services. Subsidiaries extend to booking systems, travel wholesaling and retailing services.” (Air New Zealand, 2008).

Market Analysis:
Market Demand:
In February 2008, it was reported that Air NZ had a strong load factors for long-haul flights that was up 2.7% to 82.5%, but short-haul flights were down by 12% as a result of strong domestic and trans Tasman competition.
The United States’ economic slowdown impacted on the airline industry. Demand is growing with Air NZ, increased passenger demand by 4-5% and increased in freights by 2-3%, but slowed down from the previous year of 7.4% increase for passengers and 4.3% for freight (Bradley, 2008).
Market/Product structure analysis

Air New Zealand (Air NZ) offers international and domestic transportation, cabin crews provide comfort orientated hospitality to ensure consumers are well looked after on their journey. Their products standard in most of the airlines but Air NZ offers extra lower prices tickets for domestic, Pacific and Tasman routes.

Price list from the lowest - the Smart Saver fares, Flexi Saver fare, Flexi fare then to the more expensive Premium Economy and Business Class are available for domestic, Tasman and Pacific routes.
In addition, the long-haul passengers may choose the service price range from Global...

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