Delta Airlines
Delta Airlines is one of the most famous airlines in the aviation industry. Founded by C.E. Woolman in 1925, the company is headquartered in Atlanta, Georgia. It is the leader in domestic and international travel (Delta Airlines, 2023). Delta provides flights and airline tickets to a network of more than 280 destinations over 54 countries on six continents. It serves about 200 million customers annually (Delta Airlines, 2023). The company offers air transportation services for cargo and passengers domestically and globally. The company enjoys a strong market position, brand image, and global presence.
The Marketing Mix
The term marketing mix describes a set of activities an organization employs to implement its marketing strategy. Organizations incorporate various aspects of the marketing mix to develop a differentiated positioning and competitive advantage in the market. The central components of the marketing mix this paper will look into include pricing, product, promotions, and place.
Product strategy
The product is the source of value delivered to customers. The company competes in refinery and airline. The scope of this paper is the airline segment. The Airlines provide air transportation services for cargo and passengers. Regarding transportation services for passengers, the airline targets business-class people. Passenger transportation is the major service, accounting for 92.65% of Delta’s total revenue (Delta Airlines, 2023). Passenger transportation is the biggest segment for both the international and domestic markets. Cargo transportation service accounts for less than 2% of total revenue. This marketing mix strategy allows the company to diversify. Most organizations plan and arrange for these trips. Its products are well differentiated to meet the needs of different segments. For example, the airline provides five unique travel experiences that include Delta Premium Select, First Class, Main Cabin, Delta Comfort+ TM, and Delta One TM (SkyTeam, n.d). Delta Airlines serves business and upper-middle customer base. The most expensive Cabin, the Delta One ticket, has the best services, including entertainment, access to Delta Sky clubs, drinks, meals, and skin products. Main Cabin is the cheapest but with fewer services. Delta entered into strategic partnerships with China Eastern, Virgin Atlantic, Korean Air, WestJet, Air France-KLM, and Aeromexico to bring competition to the industry. “Delta’s premium product line is elevated by its unique partnership with Wheels Up Experience” (Delta Airlines, 2023). Delta also offers maintenance and repair services to other airlines.
Pricing Strategy
Competitive and market factors influence prices. Delta provides both premium and low-class services. Prices are determined by competition and fuel prices. However, the Airline provides differentiated products at varied price ranges to accommodate diverse customer preferences. Premium services like First Class and Delta One TM are highly-priced. Basic and Main classes are cheaper, but passengers can purchase extra amenities. Delta’s flyer program also gives discounts to customers. Customers who travel by Delta Airlines earn mileage credits.
Delta has managed to keep its ticket prices higher by increasing flying experience. For instance, the company has added craft beer, flight movies, and high-quality food for better customer experiences.
Place Strategy
Delta Airlines operates in a system of international gateways, hubs, and major airports in big cities. The company offers scheduled air travel services for cargo and passengers around the globe. The Airline makes at least 4,000 flights daily, serving more than 280 destinations in 54 countries. Amsterdam, Mexico City, Detroit, Tokyo-Narita, London-Heathrow, Boston, New York-JFK, Paris, Los Angeles, and Minneapolis-ST. Paul is one of the key hubs (SkyTeam, n.d).
Promotional Strategy
The Airline prides itself on a strong brand portfolio shaped by a well-defined advertising strategy. Delta’s name recognition and good brand image ensure a good reputation in customers’ eyes. The company uses numerous channels to promote the brand. The Airlines’ app and website are the main promotional and marketing outlets (Rothaermel & King, 2017). These channels include online campaigns, television commercials, and social media engagement. The livery channel focuses on rebranding. Briefly describe how this company advertises. Delta’s promotional strategy is based on digital marketing, advertising company, product promotion, sales, and marketing. Delta’s loyalty flyer program rewards its customers with mileage credit for flying on the Airline. Customers can redeem their mileage credit for travel.
Social Media Marketing
Social media marketing is essential when expanding reach to a larger user base. No wonder Delta uses the platform to increase reach. Delta has a strong presence and visibility on social media platforms such as Facebook, X, YouTube, LinkedIn, Instagram, and Snapchat to communicate its message of an amazing travel experience. Delta’s Facebook handle has over 3.3 million followers, followed by X (1 million), Instagram (1 million), LinkedIn, and YouTube (Rothaermel & King, 2017). The @DeltaAssist program on Twitter provides customer services to flyers. These platforms intensify accessibility and information sharing between the airline and customers.
Conclusion
Delta combines four market mix elements into its market strategy to gain a competitive advantage. These elements are price strategy, product strategy, promotional strategy, and place strategy. These strategies have helped the company to thrive in a highly competitive environment.
Recommendation
Although Delta is a successful airline, there is room for improvement to make it more competitive. As a marketing manager, I would implement a product differentiation strategy. The aim is to give the airline more freedom to innovate and stay ahead of the competition.
References
Rothaermel, F. & King, D.R. (2017). Delta Airlines Inc. McGraw Hill Education.
Delta. (2023, Oct 11). Factsheet: Corporate Stats and Facts. Retrieved October 29, 2023 https://news.delta.com/corporate-stats-and-facts
SkyTeam. Delta Airlines. Retrieved October 29, 2023 https://www.skyteam.com/en/about/delta-airlines/