Ch. 11- Developing and Managing Product

It is the industry norm for a legacy carrier to offer service to most popular destinations; Delta reducing routes to a similar schedule as the low-cost airlines is not an option in this multi-billion dollar industry. In order to gain market share from low-cost airlines, Delta must offer a better product in terms of service. Many customers will pay a premium if the level of service provided is higher than the low-cost, no-frills alternative. 

Delta can use its advantage in the amount of capital over the smaller, low-cost airlines by investing in more comfortable seats, better facilities, and an increase in customer service personnel. If Delta is able to pull customers from Southwest and other low-cost competitors, the competitors' margins may drop to unacceptable levels and they may pull out of a market-leaving Delta to reap the benefits of its legacy status. While many people travel on price alone, if Delta can gain brand allegiance among legacy carriers, it will benefit the whole Delta system.

Ch. 8 - Segmenting and Targeting Markets

Looking at our company, Delta Airlines, I found that the male-female ratio of their consumers is almost equal at 52.3% female and 47.7% male with index numbers of 101 and 99 respectively. This statistic holds true to the competitor’s data. When I looked at regional statistics I found that 44.6% of Delta’s customers live in the Southern region, 20.4% live in the Northeast region, 19.4% in the Western region and 15.7% live in the Midwest region. It is important to note that this data was prior to the Delta-Northwest merger. This is likely due to the fact that Delta Airlines is headquartered in Atlanta, Georgia. Hubs have the tendency to give consumers more options for non-stop flights which is a preferred method to travel. On the other hand, since one airline may operate the majority of the gates at a hub, consumers have limited options from other airlines. With fewer choices consumers may become loyal users of Delta. Simmons data shows that people of the South have an index value of 122 which further supports that they would become “brand” loyal to Delta.

Delta has continued pursuing the Millennial market, which are people aged 16-34 years old. According to Marketrealist.com the future of airline travel will be dominated by the millennial by 2020. Millennials make up 25.9% of the population as of 2016 and contribute to $44 billion in revenue to our economy. They are known to be the most educated, diverse and technology-proficient generation ever.

Ch. 15- Marketing Communications

Delta has a strong promotional strategy. They inform, persuade, and remind potential buys their products/services they offer. They have upgrades their mass communication technique as of May 2015 when they launched a program that not emails costumers about 11-16 times per month.

There are many airlines that Delta is in competition with. An example of one of their competitive advantage strategies was an advertisement that said, “If you’re not comfortable, you must be on a different airline.” When they address their competitors they focus on other airlines as a group, not singling out one particular airline. 

Delta airlines pride themselves on having excellent communication, especially interpersonal communication. Their check-in representatives are courteous and are able to explain any questions the potential customer may have. They are specifically trained to Delta Airlines high standard of the relationship between the customer and the employee.

Some promotion opportunities Delta uses are: Delta Sky Magazine, Delta Sky Club, I-flight Wi-Fi, and Customer retargeting. They have separate divisions that handle all of the outlets they offer.

Addressing the AIDA process (Attention, Interest, Desire, Action), Delta grabs the attention of their existing loyal customers and potential ones with enticing slogans that portray opportunity and relaxation. They spark an interest from the audience by showing new destinations. They also create desire by promoting low cost ticket prices and extra upgrades that are possible in flight. Finally, being the successful each customer eventually takes action and buys the actual airline ticket from Delta. 

Ch. 10 - Product Concepts

Chapter 10 described private concepts and the areas that surround it. My application to my company Delta Airlines is as followed.  My product is to satisfy consumer’s needs and wants. A product line has closely related products in various shapes and sizes; Delta had multiple types of airplanes. There are 36 different aircrafts in their fleet ranging from the Boeing 767 and the Airbus 330. In general they have more than 800 aircrafts in their fleet. Including in the line, their non-commercial options, such as Delta’s private Jet and charter options. Apart of their product mix are Delta Skymiles from American Express. They not only offer airline travel but a special credit card where you earn rewards with Delta Airlines.

Transitioning into co-branding, American Express is apart of their cooperative branding marketing strategy. In addition to American Express they also co-brand with the Skyteam Alliance. The reasoning behind cooperative branding with these already established companies is because they receive the same advertising treatment and benefit from each other brand equity.

Delta uses its brand to distinguish their company/product from other airlines; Specifically, their now red triangle widget, representing the Greek letter “Delta” from their first jet service. Delta uses this logo to symbolize the speed of jets. This now leads into Trademarks.

Trademarks are the exclusive right to use a brand or part of a brand. Others are prohibited from using the brand without permission. Consequently when a Trademark is used without permission that can lead to Trademark infringement. In a case where Delta Airlines obtained $22 million dollars in a default judgment against a operator of a travel club scheme. Delta alleged that 39 individuals and corporate defendants had violated federal and state trademarks and racketeering statues. They used Delta’s name and trademark without permission. Including the use of Delta’s name and logo on post cards and letters carrying out fraudulent scheme to sell “travel club” membership, creating the impression that Delta had sent them. This information above was gathered form NVflyer.com, which is a review of developments affecting airlines and travel agents written in 2015.