Analysis of the business environment using actual and current information sources to support your analysis using analytical tools such as PESTLE

Assessment 1: Weighting 40%. Group Report

Students will be required to analyse the given case, ComfortAir plc. and critically assess its current digital marketing activities and using appropriate theories suggest justified and measurable improvements.

Assessment 1, Case Study

ComfortAir plc.

Case Study Briefing

Few inventions have changed how people live and experience the world as much as the invention of the airplane. During both World Wars, government subsidies and demands for new airplanes vastly improved techniques for their design and construction. Following the World War II, the first commercial airplane routes were set up in Europe. Over time, air travel has become so commonplace that it would be hard to imagine life without it. The airline industry, therefore, certainly has progressed. It has also altered the way in which people live and conduct business by shortening travel time and altering our concept of distance, making it possible for us to visit and conduct business in places once considered remote.

The airline industry exists in an intensely competitive market. In recent years, there has been an industry-wide shakedown, with far-reaching effects on the industry's trend towards expanding domestic and international services. In the past, the airline industry globally, was at least partly owned by governments. This is still true in some countries, but increasingly all major airlines have come to be privately held. The industry has many characteristics e.g:

· International – 130+ seat planes that have the ability to take passengers just about anywhere in the world. Companies in this category typically have annual revenue in excess of $2 billion.

· National – Usually these airlines fly smaller planes and have revenues between $100 million and $1 billion.

· Regional – Companies with revenues less than $100 million that focus on short-haul flights.

· Cargo – These are airlines that generally transport goods. Many global companies like Amazon, have developed their own cargo fleets

Airport capacity, route structures, technology and costs to lease or buy the physical aircraft are significant in the airline industry. Other substantive issues are:

· Weather – Weather is variable and unpredictable. Extreme heat, cold, fog and snow can shut down airports and cancel flights, which costs an airline money.

· Fuel Costs – According to the Air Transportation Association (ATA), fuel is an airline's second largest expense. Fuel makes up a significant portion of an airline's total costs, although efficiency among different carriers can vary widely. Short haul airlines typically get lower fuel efficiency because take-offs and landings consume high amounts of jet fuel.

· Labour – According to the ATA, labour is an airline's No.1 cost; airlines must pay pilots, flight attendants, baggage handlers, dispatchers, customer service and others.

· Landing Slots – These present another significant expense for airlines who fly to popular destinations.

Your brief: You are to take on the role of a marketing consultant for a new passenger airline: ComfortAir plc

The airline is based in the UK and plans to operate on the European passenger sector having secured landing slots from January 2024 in the following Cities : London, Paris, Frankfurt, Milan, Athens, Istanbul, Brussels, and Amsterdam. More landing slots could be added in future years.

ComfortAir will use a fleet of smaller planes of 150 seats, built in China. Designer fitted using quality materials in the cabin, with luxurious look and feel, and intent to serve healthy gourmet sandwiches and fresh fruit juices

READ CAREFULLY

Tasks

In your assessment you need to address the following tasks:

Assessment 1: 40% of module marks

Market Analysis. Analyse the business environment: You should provide a thorough, logically structured analysis of the market, using actual and current information sources to support your analysis.

You will need to consider internal and external influences (including industry dynamics such as competition, regulatory environment, fuel crisis, staffing) and use facts and figures, where appropriate, to provide evidence to support your analysis.

The analysis should be based on current market data use audit tools such as Porter’s Five Forces. This needs to be kept as brief as possible for ComfortAir’s Leadership team. Up to 10 slides and 500 words (excluding one slide with Executive Summary -not an introduction -and one for Bibliography)

Key issues the company faces: Based on your analysis, you should identify what are the main challenges and barriers and what are the key drivers for ComfortAir to succeed. The key issues should be relevant to marketing and be supported by the reliably sourced facts from your business analysis.

Assessment Submission Structure

Assessment 1:

Submit PowerPoint slides for group presentation to clearly address the findings required by the brief above (Maximum of 10 slides and 500 words, excluding Executive Summary, bibliography/references).

Note : This is a practical assignment and marks are awarded for addressing the consulting brief, providing evidence of market research, and market sizes specifically. ComfortAir needs a recommended solution from you, not an outline of the theories …

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