Airbus, the renowned aircraft manufacturing company, has been locked in a fierce rivalry with Boeing since the 1990s. This rivalry has greatly influenced Airbus’ marketing strategy as they compete for dominance in the large jet airliner market. Recognizing the need to continuously adapt to stay competitive, Airbus leverages various marketing tactics to attract airlines globally.
In order to effectively cater to the diverse needs of the aviation industry, Airbus has developed tailored marketing strategies for specific segments including commercial airlines, government entities, private jet operators, and freight companies. This segmentation allows Airbus to offer customized solutions and establish meaningful customer relationships across the industry.
In its marketing strategy, Airbus places a strong emphasis on seat width. Through extensive research, they have demonstrated the benefits of wider seats in enhancing passenger comfort during flights. This focus on passenger experience differentiates Airbus’ offering in the market.
To effectively communicate the value proposition of wider seats, Airbus has devised a comprehensive three-step marketing strategy. This includes proving the benefits through thorough research, allowing people to experience the comfort difference first-hand, and telling a compelling story through captivating marketing campaigns.
With a diverse range of stakeholders in the aviation sector, including commercial airlines, government entities, private jet operators, and freight companies, Airbus tailors its offerings to meet the unique needs of each segment. This customer-centric approach is a key factor in Airbus’ success.
With over 134,000 individuals employed, Airbus stands as the largest aeronautics and space company in Europe. Their product portfolio includes the popular A320 family, introduced in the mid-1980s, which has captured a significant market share in the short-haul and medium-haul segments. The A320neo family, an evolution of the A320 design, remains a dominant force in the aviation industry, highlighting Airbus’ commitment to fuel efficiency.
Moreover, the Airbus A380, with a staggering passenger capacity of up to 853, is tailored for airlines looking to maximize passenger numbers on high-traffic routes. Airbus’ focus on product differentiation is evident in their wide range of aircraft models designed to cater to the specific needs of different airlines and market segments.
In addition to aircraft manufacturing, Airbus offers a range of services to keep airlines’ planes operational. This includes maintenance, training for technical staff, tools for repairs, and access to spare parts. By offering comprehensive solutions, Airbus ensures a seamless experience for its customers.
Airbus segments the commercial jetliner market based on the airline’s business model, distinguishing between low-cost vs. full-service carriers and freight vs. passenger airlines to meet specific operational needs. This targeted approach allows Airbus to address the unique requirements of each segment effectively.
Brand building plays a vital role in solidifying Airbus’ position in the aviation industry. Their marketing strategy highlights innovation, technology leadership, and a strong commitment to environmental responsibility. By emphasizing these key values, Airbus aims to differentiate its brand and attract like-minded customers.
Key Takeaways:
- Airbus has developed tailored marketing strategies to cater to specific segments in the aviation industry.
- The focus on seat width is a key element of Airbus’ marketing strategy to enhance passenger comfort.
- Through a comprehensive three-step marketing strategy, Airbus communicates the value proposition of wider seats.
- Airbus serves a diverse range of stakeholders in the aviation sector, tailoring its offerings to meet their unique needs.
- Airbus emphasizes product differentiation and offers a wide range of aircraft models to cater to different airlines and market segments.
The Battle Between Airbus and Boeing
When it comes to the aviation industry, two giants stand firmly at the forefront – Airbus and Boeing. These industry leaders continually compete to capture market share and drive innovation in aircraft manufacturing. Through their marketing strategies, these companies employ various tactics to gain an edge over one another in this highly competitive market.
Over the years, both Airbus and Boeing have enjoyed success and faced challenges. In terms of orders and deliveries, from 2007 to 2016, Airbus received orders for 9,985 aircraft and delivered 5,644, while Boeing received orders for 8,978 aircraft and delivered 5,718 during the same period. In 2019, Airbus recorded $78.9 billion in revenue, surpassing Boeing’s $76 billion and making it the largest aerospace company by revenue that year. However, both companies experienced a decline in profits, with Boeing’s operating losses amounting to $2 billion in 2019, compared to $12 billion in profits the previous year, and Airbus’ profits decreasing from $6 billion to $1.5 billion in the same period.
Market share is another crucial aspect of this battle. Airline fleet forecasts predicted that from 2016 to 2035, Airbus would secure a 45% market share with 12,090 deliveries, while Boeing would hold a 43% share with 11,550 deliveries. Specifically, Airbus was projected to deliver 23,531 single-aisle aircraft, while Boeing was expected to deliver 28,140 during the same period. The FlightGlobal fleet forecast indicated that 7,960 twin-aisle aircraft would be delivered, contributing to a total value of $1.284 trillion from 2016 to 2035.
One significant milestone occurred in 2016 when the Airbus A320 family surpassed the Boeing 737 series as the highest-selling airliner, with Airbus receiving orders for 15,193 aircraft and Boeing receiving orders for 15,136 aircraft. By October 2019, Airbus had delivered 9,086 A320 family aircraft since the late 1980s, with 6,107 on firm order, while Boeing had delivered 10,563 737 series aircraft since the late 1960s, with 4,573 on firm order during the same time period. Additionally, in July 2021, Airbus had a 65% share of the single-aisle backlog, while Boeing held a 35% share.
As competition continues, both Airbus and Boeing strive to maintain their market dominance through technology advancements and strategic branding. Airbus, known for its first-mover advantage in introducing the fly-by-wire system, continues to push the boundaries of innovation. Similarly, Boeing is aiming to achieve net-zero carbon emissions at its facilities by 2030, while actively promoting the use of sustainable aviation fuels in their commercial airplanes.
To further highlight this fierce battle of innovation and market share, here is a table comparing key statistics between Airbus and Boeing:
| Year | Parameter | Airbus | Boeing |
|---|---|---|---|
| 2019 | Revenue (in billions) | $78.9 | $76 |
| 2019 | Operating Profits/Losses (in billions) | $1.5 | -$2 |
| 2016-2035 | Forecasted Market Share | 45% | 43% |
| 2016-2035 | Projected Deliveries | 23,531 single-aisle aircraft | 28,140 single-aisle aircraft |
| 2016-2035 | Twin-Aisle Deliveries (Value) | 7,960 (Total value of $1.284 trillion) | N/A |
As we explore Airbus’ marketing strategy further, it will become evident how this battle for market dominance impacts the brand’s decisions and approach.
Segmented Marketing Strategies
One of the key components of Airbus’ marketing strategy is market segmentation. By identifying distinct target audience groups and tailoring their marketing messages accordingly, Airbus is able to effectively reach and engage with their customers.
Airbus employs various segmentation methods commonly used in the airline industry, including geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. By dividing their customer base into specific segments based on factors such as location, age, income, interests, and travel habits, Airbus can create personalized marketing campaigns that resonate with each segment.
For example, Airbus understands the importance of fuel efficiency and environmental sustainability to their target audience. With the implementation of winglets, Airbus has reduced CO2 emissions and fuel consumption, resulting in cost savings for airlines. This message is particularly powerful for environmentally conscious travelers and airlines looking to reduce their carbon footprint.
Through segmentation, Airbus is able to differentiate itself in the market by highlighting the features and capabilities that appeal to each segment. By crafting tailored marketing messages, Airbus stands out from its competitors and creates a unique value proposition for its customers.
The Benefits of Tailored Marketing Messages
Segmented marketing strategies offer several advantages for Airbus. Firstly, by understanding the specific needs and preferences of different segments, Airbus can develop products and services that meet their customers’ requirements. This customer-centric approach allows Airbus to deliver value to their target audience and build strong brand loyalty.
Secondly, tailored marketing messages enable Airbus to effectively communicate the unique advantages of their products and services to each segment. By highlighting the fuel efficiency, reduced emissions, and cost savings offered by Airbus aircraft, the company can capture the attention and interest of airlines and travelers who prioritize sustainability and operational efficiency.
Additionally, segmented marketing strategies help Airbus optimize their marketing efforts and resources. By tailoring promotions based on booking frequency, travel purpose, spending habits, and loyalty status, Airbus can ensure that their marketing messages reach the right customers at the right time, through the most effective channels.
Overall, segmentation and tailored marketing messages are key components of Airbus’ marketing strategy. By understanding their target audience, dividing them into distinct segments, and delivering personalized messages that highlight the unique benefits of their products, Airbus differentiates itself in the market and creates meaningful connections with their customers.
The Importance of Seat Width in Airbus’ Strategy
Passenger comfort has always been a priority for Airbus. As part of their marketing strategy, Airbus emphasizes the significance of seat width in enhancing the overall flying experience. Extensive research and data analysis have demonstrated the positive impact of wider seats on passenger comfort during long-haul flights.
Airbus argues for a standard seat width of 18 inches (45.72 cm) for long-haul aircraft, which is greater than Boeing’s use of 17-inch (43.18 cm) seats. This commitment to provide additional space for passengers stems from Airbus’ goal to prioritize passenger well-being and satisfaction.
Collaborating with the U.K.’s London Sleep Center, Airbus conducted a study that revealed a 53% improvement in passenger sleep quality with an 18-inch seat compared to the standard 17-inch. This research-based evidence further solidifies Airbus’ determination to advocate for wider seats as a means of enhancing the flying experience.
Elevating Passenger Comfort
One of the driving factors behind Airbus’ focus on seat width is the recognition of the changing body sizes and comfort needs of passengers. According to statistics from the World Health Organization (WHO) and the Centers for Disease Control (CDC), obesity rates have risen dramatically worldwide in the past few decades.
The CDC reports that over one-third of U.S. adults are obese, while the WHO shares that nearly 50% of men and women in the WHO European Region were overweight in 2008. These statistics highlight the importance of providing adequate space and comfort for passengers of all body sizes.
Airbus’ commitment to wider seats aligns with their goal of enhancing passenger experience and distinguishing their aircraft offerings from competitors like Boeing. By prioritizing passenger comfort and advocating for a minimum seat width of 18 inches, Airbus aims to provide a superior flying experience that sets their planes apart in the market.
The Trade-Off Between Comfort and Profitability
The discussion surrounding seat width emphasizes the delicate balance between passenger comfort and airline profitability. While wider seats contribute to enhanced comfort, narrower seats can potentially allow for more seats abreast and increased passenger capacity per plane, which can be financially advantageous for airlines.
However, Airbus’ marketing strategy recognizes that passengers have shown a willingness to prioritize low fares over seat comfort. This consumer preference can influence airlines’ decisions on seat configurations. Therefore, Airbus’ strategy to promote wider seats not only aims to enhance passenger comfort but also recognizes the importance of offering a differentiated product in a highly competitive market.
It is worth noting that different seat width standards exist across aircraft models and airlines, highlighting the complexity involved in determining cabin layouts and configurations. Adoption of an 18-inch standard seat width for long-haul economy class, as advocated by Airbus, could have commercial implications, including potential regulatory hurdles, aircraft redesign requirements, and cost implications for airlines.
Table: Seat Width Comparison
| Aircraft Model | Airline | Seat Width | Number of Abreast Seats |
|---|---|---|---|
| Airbus A330 | Various | 18 inches+ | 8 |
| Airbus A350 XWB | Various | 18 inches+ | 10 |
| Boeing 787 | Various | 17-18 inches | 9 |
| Boeing 777 | British Airways | 17 inches | 9 |
The table above compares the seat widths and seating configurations of popular aircraft models from Airbus and Boeing. It highlights how Airbus models such as the A330 and A350 provide 18-inch or wider economy seat widths, accommodating passenger comfort needs. In contrast, Boeing’s 787 and 777 aircraft generally offer narrower seats, with some options for 17-18-inch widths and nine-abreast seating arrangements.
By considering passenger comfort and advocating for wider seats in economy class, Airbus demonstrates its commitment to providing an exceptional flying experience and maintaining a competitive edge in the market.
Marketing Strategy Steps
Airbus employs a carefully crafted marketing strategy to effectively communicate the value proposition of their wider seats. This three-step approach involves conducting research, providing experiential marketing opportunities, and implementing targeted marketing campaigns.
Step 1: Research
As part of their marketing strategy, Airbus conducts extensive research to provide empirical evidence of the benefits of wider seats. This research allows them to gather data on the increased comfort and improved passenger experience that their seating design offers. Through scientific studies and customer feedback analysis, Airbus can effectively communicate the value of wider seats to their target audience.
Step 2: Experiential Marketing
To further engage their target audience and allow them to experience the comfort difference firsthand, Airbus incorporates experiential marketing into their strategy. They provide opportunities for potential customers to physically sit in their wider seats and feel the difference in comfort and space. By creating immersive experiences, Airbus effectively showcases the value and advantages of their seating design.
Step 3: Marketing Campaigns
Once Airbus has gathered research data and provided experiential marketing opportunities, they leverage their findings to create impactful marketing campaigns. These campaigns are designed to tell a compelling story and highlight the benefits of Airbus’s wider seats. Through captivating visuals, persuasive messaging, and storytelling techniques, Airbus effectively communicates their value proposition to their target audience.
By following this comprehensive three-step marketing strategy, Airbus successfully communicates the value of their wider seats to their target audience. The combination of research, experiential marketing, and targeted campaigns allows Airbus to effectively deliver their message and differentiate themselves in the market.
- Marketline. (2015). Airbus Group. Retrieved from [insert link to Marketline]
- Cansino. (2017). [insert full reference]
Target Audience of Airbus
Airbus, with its global presence and extensive range of aircraft solutions, caters to a diverse target audience within the aviation industry. Its marketing strategy aims to address the specific needs and requirements of various segments, including:
- Airlines: Airbus collaborates closely with commercial airlines, providing them with innovative and efficient aircraft to enhance their operations. The company offers a wide range of aircraft models, such as the A220, A320, A330, A350 XWB, and the iconic A380, serving different seating capacities and designed for shorter domestic routes or long-haul international journeys.
- Government Entities: Airbus partners with government entities worldwide, providing them with customized solutions for defense and space industries. These solutions cater to national security, transportation, surveillance, and scientific missions, among others.
- Private Jet Operators: Airbus offers business jet solutions for private individuals and corporations who require luxury and high-performance aircraft for their travel needs. These private jets provide customized interiors and advanced technologies, ensuring a comfortable and exclusive flying experience.
- Freight Companies: Airbus understands the vital role of freight companies in global trade and logistics. The company offers cargo aircraft, such as the A330 and A350, equipped to handle the transportation of goods efficiently and reliably.
By identifying and understanding the unique needs of each market segment, Airbus can tailor its products and services to meet their specific requirements effectively. This customer-centric approach allows Airbus to build strong partnerships and maintain its position as a leader in the aerospace industry.
Airbus Market Presence and Reach
Airbus boasts an extensive global network of 180 locations and 12,000 direct suppliers, enabling it to deliver its innovative aircraft solutions worldwide. With more than 140,000 employees globally, Airbus leverages a diverse and skilled workforce to support its various business operations.
Furthermore, Airbus consistently invests in research and development, driving innovation in aviation technology and maintaining its competitive edge. As of 2015, Airbus holds more than 3,700 patents, showcasing its commitment to advanced engineering and design.
| Key Statistics | Revenue (2015) | Orders (2016) |
|---|---|---|
| Total Revenue | 45,854 million Euros | 16,761 orders |
| Revenue Growth | 6.4% | – |
| Market Share | 57% | – |
The revenue generated from its passenger aircraft business alone accounted for over 70% of Airbus’ total revenue in 2015. This demonstrates the strong demand for Airbus’ aircraft solutions from the target audience, including commercial airlines and private jet operators.
With a 57% market share in the aerospace industry, Airbus stands as a major player and competes with companies like Boeing, Bombardier, and Sukhoi in the capital-intensive market segment. The company’s success is further fueled by its focus on sustainability and responsible aviation practices, reducing environmental impact and promoting a greener aviation industry.
Marketing Strategies of Airbus
Airbus has implemented effective marketing strategies to establish its presence in the highly competitive aviation market. By utilizing segmentation, product differentiation, and brand building, Airbus has gained traction and achieved significant success in expanding its customer base and capturing market share.
One crucial aspect of Airbus’ marketing strategy is segmentation. Recognizing the diverse needs and preferences of their customers, Airbus offers a wide range of aircraft models tailored to specific market segments. By customizing their product offerings, Airbus effectively caters to the requirements of different airlines and markets, ensuring maximum customer satisfaction.
Product differentiation plays a pivotal role in Airbus’ marketing strategy. The company emphasizes the unique features and benefits of their aircraft, distinguishing them from competitors’ offerings. For example, Airbus highlights the efficiency of their aircraft, showcasing that the A300’s operating costs are 20% lower per trip compared to rival models. This emphasis on cost-efficiency makes Airbus an attractive option for airlines seeking cost-effective solutions.
Brand building is another critical component of Airbus’ marketing strategy. The company positions itself as a leader in innovation, technology, and environmental responsibility. This branding strategy enables Airbus to portray its commitment to delivering cutting-edge aviation solutions while maintaining a focus on sustainability and reducing its environmental impact. This approach helps build trust and loyalty among customers, further strengthening Airbus’ brand image.
To effectively showcase their aircraft and connect with potential buyers, Airbus embarked on a comprehensive product strategy. This strategy involved conducting a goodwill tour across North and South America, where Airbus exhibited their aircraft to aviation industry professionals and prospective clients. This direct engagement enabled Airbus to create awareness, showcase their product offerings, and establish valuable connections, ultimately leading to increased sales and market penetration.
Furthermore, Airbus leveraged its product’s unique features to gain a competitive advantage. For instance, the A300 had only two engines compared to competitors’ three, providing economic advantages in terms of fuel efficiency and maintenance costs. This distinction made Airbus’ products more appealing to airlines looking for cost-effective and reliable solutions.
Overall, Airbus’ marketing strategies have played a pivotal role in their success. By implementing segmentation, product differentiation, and brand building, Airbus has effectively positioned itself as a leader in the aviation industry, capturing market share and expanding its customer base.
| 1970s | 2022 | |
|---|---|---|
| Number of A300s Delivered | 81 | – |
| Number of Airlines | 14 | – |
| Airbus Employees | – | 133,000 |
| Revenues (EUR) | – | 58.76 billion |
Airbus Forecast
According to Airbus’ Global Market Forecast, the aviation industry is set to witness significant growth in the coming years. The forecast predicts a surge in demand for new aircraft, driven by various factors including emerging economies, expanding airline networks, and the need for more eco-efficient airliners.
One of the key highlights of the forecast is the projected increase in North America’s commercial aircraft services market. The market is estimated to reach a value of US$45 billion by 2042, marking a 45% increase from the current US$31 billion. This growth can be attributed to the rising demand for maintenance, passenger-to-freighter conversion, and used serviceable material, estimated at a combined value of US$17 billion.
The maintenance market in North America is expected to experience the highest average annual growth rate of 4.1% between 2023 and 2042. This growth will be primarily driven by enhancements such as cabin and system upgrades, as well as the increasing demand for aircraft connectivity. The market is projected to reach a value of US$4.1 billion, contributing significantly to the overall growth of the commercial aircraft services market.
Training and operations in the North American aviation sector are also expected to see an upward trajectory. The forecast indicates an increase from US$2.5 billion in 2023 to US$3 billion in 2042. To meet the demands of this expanding market, the industry will require an estimated 366,000 skilled professionals over the next two decades, including 104,000 pilots, 120,000 technicians, and 142,000 cabin crew members.
Airbus places a strong emphasis on the need for digitally enabled and connected aircraft services. The forecast predicts that aircraft connectivity will reach 90% fleet coverage by 2042, highlighting the growing importance of advanced technologies in the aviation industry.
In recent years, Airbus has seen consistent growth and success. The company has reported record revenues every year since 2010 and has witnessed net orders of its aircraft more than double the number of deliveries. Airbus’ commitment to innovation and sustainability has significantly contributed to its profitability and cash generation, with a notable improvement in 2014.
Overall, Airbus’ Global Market Forecast provides valuable insights into the future of the aviation industry. It indicates a positive growth trend, driven by emerging economies, increasing demand for eco-efficient airliners, and the need for enhanced connectivity. As the industry continues to evolve, Airbus remains at the forefront, shaping the future of flight.
North America’s Commercial Aircraft Services Market Forecast
| Year | Market Value (in billions) | Compound Annual Growth Rate (CAGR) |
|---|---|---|
| 2023 | $31 | – |
| 2042 | $45 | 45% |
Adding Strength
In order to maintain its leading position in the aerospace industry, Airbus invests heavily in research and development. By focusing on innovation and technological advancements, Airbus aims to strengthen its competitive advantage and meet the evolving needs of the market.
Collaboration and synergies play a significant role in Airbus’s research and development strategy. The company actively seeks partnerships with other industry leaders, academic institutions, and research organizations. This collaborative approach allows Airbus to leverage diverse expertise and resources, enabling the development of cutting-edge technologies and solutions.
One area of research that Airbus is particularly committed to is aero-acoustics. With the aim of addressing noise issues in commercial aircraft, Airbus participates in aero-acoustics research projects. By investing in this field, Airbus strives to enhance passenger comfort and reduce the environmental impact of its aircraft.
Through its research and development efforts, Airbus strengthens its ability to deliver innovative and high-performance aircraft that meet the demands of the market. By embracing collaboration and investing in aero-acoustics research, Airbus ensures that its products are at the forefront of technological advancements while considering the needs of passengers and the environment.
Conclusion
Airbus has established itself as a dominant player in the aviation industry, thanks to its successful marketing strategy and focus on key success factors. The competition with Boeing has driven Airbus to continually innovate and improve its products, setting new standards for comfort, quietness, and efficiency. This has contributed to Airbus’ market positioning and its impressive market share of 55% against Boeing’s 45%.
Innovation is a key driver of Airbus’ marketing strategy, and its A350, A320neo, and A321neo aircraft have gained popularity among airlines worldwide. Recent orders from Saudia Group, Brussels Airlines, and United Airlines demonstrate the trust that airlines place in Airbus’ innovative and sustainable solutions.
Furthermore, Airbus understands the importance of sustainability and has made strides in reducing its environmental impact. By focusing on sustainable practices and partnerships, Airbus is positioning itself as a leader in the industry. Its strong financial performance, with revenue exceeding €65 billion and a brand value of USD 16.1 billion, further supports its success and market strength.
In conclusion, Airbus’ marketing strategy, driven by competition, innovation, and sustainability, has positioned the company as a global leader in the aviation industry. Its ability to adapt to industry trends and meet the evolving needs of customers ensures its continued success and dominance in the market.
