Jet Blue is an airline that is based in the United States of America. It is committed towards ensuring that individuals, goods and services are transported easily across the globe from one place to another. The company has branches in United States, Mexico and The United Kingdom. The latter two are foreign branches of the airline. The implications of having branches are far fetching: both positive and negative.The United Kingdom and the USA are countries in which the airlines can reach its intended growth prospects.
Analysis of the United Statespolitical situation
The United States of America enjoys a long period of peace and stability. The central government organizes most of the activities and headed by the US president, the government has long since been stable. Currently President Barrack Obama is at the helm of leadership spearheading growth prospects for the country. The effects of this; an increase in the number of investors and thus money in the United States. This means that more people can now afford a flight to other countries. This should make Jet Blue Airlines Company achieve tremendous improvement.
The United Kingdom has a stable system of leadership also. Headed by the Prime Minister, the government of UK is also committed to ensuring a safer and better future for citizens and foreigners within the United Kingdom. This has consequentially led to more money flowing into the country and thus a ready market for transportation services provided by Jet Blue.
The two countries offer ready market for the products that they deal in. They are politically stable meaning business is carried out in a peaceful environment. The citizens also have money and as such their purchasing power is high. The products are able to move fast in this kind of environment.
Sustainable growth and development has been noted in the United States as well as United Kingdom. The two countries have lately had a fewer number of people who are unemployed every passing year. This is because investors have contributed immensely towards job creation. The countries income per capita has also risen with sustainable growth being maintained for both the agricultural and industrial markets. The number of people in these countries who can comfortably afford a flight both within the national and international cross section is way higher. This therefore means that investment for Jet Blue now and more so into the future has some very promising prospects.
This has to do with introducing products to consumers in the market. This may be dome by doing public shows, constant advertisements, promotions etcetera so as to reach out to all customers. Jet Blue has to do enough of these in the two countries. There are enough forums for marketing that can lead to sustainable growth of the company. The company will have to communicate more to consumers in the market. This will make it possible to maintain customers due to the business image and as well help to reach out to the wider market.
Branding strategies include use of color to make the products to stand out. A rare color type is most viable in this situation. A striking color may be used for the planes belonging to the company in both of these countries. The plane color will help distinguish it from others such as the fly Emirates and Qatar airlines.
Branding may further involve the use of unique logos and catching information. Jet Blue is known for its use of courteous statements such as welcome and thank you. More of such should be seen since they are an effective way of reaching out and making the airline become unique in its own capacity.
Product modification is important means differentiating the product. This may be done by making sure the product is different from other products. Branding is part of product modification. The flights may be modified in such a way as to incorporate incentives to customers. Snacks maybe introduced in the flights to help attract more and more consumers. Currently, the airlines are known for quality flight services which incorporate quality attendance on customers.
Pricing strategies are very important. Some of the factors that affect pricing include: The demand of a service affects its pricing. When the demand for commodities is very high, there is likelihood that the cost of that commodity will also be high. This is because the demand curve which slopes from left to right will meet the supply curve at a higher price level. The manufacturers also take the increased demand to their advantage and may increase the profit margin. The supply of commodities also affects its pricing. When supply of commodities is high the price is likely to go down. This is because each of the sellers will be competing to supply goods at low prices to counter the competitor. This will be the same for each seller thus the price of the commodities will go down.
The profit margin also influences prices. When a high mark up or margin is set on the cost of sales and the sales level respectively, this affects the price of the commodity. The commodity is likely to cost more. When a low profit margin is required however, the commodity costs less. The margin refers to the ratio of profits to the sales level. The figure of margin is therefore greatly dependant on the level of sales. If the profit margin increases the sales figure must go up so as to maintain the same margin. This means increased costs of commodities.
The cost of production also influences pricing. When the production costs are high, this is passed on to the final consumer so he or she has to pay highly for the same. When the costs of production are low however, the commodity will cost less. The profits of a product are set on the costs of production pus the costs of operation. The added cost on this reflects the profit margin. This is the reason why most companies focus on reducing costs of operation as much as possible. In so doing, the companies not only maximize profits but also take care of the final consumer who pays less for the products.
It is important to consider the 7ps
The product, price, place, promotion, physical layout, provision of customer service and processes are what the 7ps stand for. (Geoffrey Nicholson, 2007) This is important in a market situation that is competitive and that has many players. The seller must focus on all of these if beating his or her competitor is anything to go by. The Toyota Company competes with several other companies like Mercedes, Nissan, Mitsubishi and many others. It must therefore put into consideration each of the P’s stated above so as to stand tall in the presence of all these competitors.
The product- Companies must focus on quality of products as well as their safety. This means that the company must produce products that meet customer needs. The customers must be satisfied that the goods they are having are quality in that they will meet their needs. Customers must be in a position to satisfy the wants they have.
Place- the products must be placed in the market that is relevant to ensure that customers buy them accordingly. The most convenient market should be selected such that customers buy goods as much as possible.
Promotion- It is important for all companies to advertise the products they are having. The business must engage in extensive marketing for the same.
Physical layout- the business must be laid out in such as way that is attractive to customers. The fronts and method of partition must be attractive also.
Provision of service- The services offered to customers must be such as to meet their needs. The services offered must also be high quality services such that all customers will not complain.
Processes- Customers must ensure good pass the required processes so that they become quality finished products. Customers must be such as to be satisfied at the end of it all.
Premium Pricing-This refers to the process of keeping the prices of commodities high so as to form a favorable perception among buyers (Geoffrey Nicholson, 2007 ) Customers usually associate expensive products with high quality. A seller may decide to set the price of leather shoes way above the costs of production. He does this so as to take advantage of people’s psychology. Jet Blue started this way as a way to attracting the rich citizens who are also its customers. These people associated the high prices with quality and as such significant profits have been achieved.
Price Skimming- A marketer sets a high costs at first for his products. This is so until he recovers his sunk costs and before competition starts stepping in. After this, he or she lowers the price of commodities considerably. The sunk costs are the costs that the business person incurred while starting the business. It would be his or her wish to retrieve this amount within the shortest time possible. This is the breakeven point where the revenue equals to the costs of operation. The business person must take advantage and maximize profits during the initial stages. Price skimming is also applied by sellers so as to have customers’ preference later on. This is because customers will first associate the product with high quality and thus when prices reduce they will want to buy more from the selle.
Mark-up pricing- Mark up refers to the ratio of profits to the cost of sales. The higher the profits, the higher the mark up. The marketer will therefore set his price depending on the cost of sales. A constant percentage is thus added by the seller to the cost of sales to come up with the selling price. A greater percentage means greater burden to the consumer in terms of the selling price. A less percentage however implies that the consumer will actually pay less for the goods and services.
The entry of other players in the market is no easy task. The companies must have to undergo very rigorous tasks so as to find their way into the lucrative investment. This therefore means that Jet Blue should take advantage of this to establish a very wide market for its services. The entry of Jet Blue into the market further will be affected by such factors as the quality of marketing strategies such as advertisements and the quality of services they offer to their customers. This will help the company fight external pressure from competitors.
The company offers direct services to its customers. Apart from the British Airways, other airlines cannot subject any form of threat in terms of competition to the company. The company thus has a chance to consolidate itself further into becoming one very renowned and esteemed provider of quality and first class facilities.
Suppliers are few in both countries. The British Airways is on company equal to as much task. This gives the company a chance to consolidate its position further and become a leading service provider for transport facilities.
Buyers are endowed with a huge purchasing power. They citizens of the United States of America and the United Kingdom are ready and willing to pay for quality flight services. This may vary in prices depending on quality of flight. Whichever the case, the citizen’s demand for these products has been incremental. Most likely, the company will sail through into the future with tremendous aspects.