Allegiant Air

Improved Essays
Allegiant Air’s Successful Marketing Strategy
The textbook author includes a case on airline company Allegiant Air. I would like to mention that I have never flown in a plane. I do not have a fear of planes, I just have not had the opportunity to ride one. Considering that my ultimate goal is to travel the world I know one day that opportunity will occur. I have not heard of Allegiant Air until I read this case, but from what I have read I assume they are the best option for flying within the United States and to our neighboring countries.

In the case Maurice Gallagher, owner of Allegiant Air, says they needed a strategy that was low-cost and could make money from day one. On page 50, it explains how companies determine their marketing strategy with two questions: Which customers will we serve (segmentation and targeting)? and How will we create value for them (differentiation and positioning)? I believe this case answers those questions on how Allegiant Air came up with their marketing strategy.
…show more content…
This involves market segmentation, market targeting, differentiation, and positioning. For market segmentation, the company must first determine which consumers will offer them the best opportunities. To do this the market can be divided/grouped based on geographic or demographic, in conjunction with different buyer needs, characteristics, or behaviors. The case author mentions that first, Allegiant looks for uncontested turf- routes neglected by larger, more established competitors. Allegiant has done their market segmentation and now chooses who to

Related Documents

  • Improved Essays

    Charline Marcelle Unit 3 Assignment 1 Capella University Professor: Angela Wu Marketing Segments The drive behind marketing segments is to allow the marketing folks to concentrate on the subject and perspectives of their products. When marketing segments are done properly it helps ensure the highest return. This all depends on the sale of the product and the types of buyers for the product. A lot of companies mold their marketing segments by using results of analysis and research.…

    • 763 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Mkt 421 Week 3 Assignment

    • 593 Words
    • 3 Pages

    A company to maximize its benefit needs positioning itself. Positioning is “the act of designing a company’s offering and image,” which creates and implants a distinguishing place in the minds of the targeted customers (Kotler & Keller, 2012, p. 276). For a positioning to be successful, a company must identify its competitors. Competitors are the companies that fulfill the same desires of the customers. Closest competitors to a company are those that make the same offers as the company to attract the same clientele.…

    • 593 Words
    • 3 Pages
    Improved Essays
  • Great Essays

    Situation Analysis: 5C’s One environment factor that provides opportunities for Allstar Allround brand is recommendations from doctors and physicians. These recommendations can increase this company’s market share, net income, and brand awareness. Allround brand offers 4- Hr. Multi Liquid medication.…

    • 1116 Words
    • 4 Pages
    Great Essays
  • Decent Essays

    In the recent year, United States airlines having been outsourcing their planes to becoming regional airlines. They are using cheaper tactics to get people to ride on their planes but are using crew members with lesser qualifications and want less pay to create a profit to their airlines, making the their passengers feel in danger and not safe what so ever. The Continental flight 3407 that crashed in 2010, happened because the pilot that they hired wasn't even owned by the Continental company but was from Colgan Airline, a cheaper and more profiting option. Airlines such as these have been exposed for breaking many of the Federal Avaition Adminstration's (FAA) rules of flying. Not meeting the rules of passenger safety by not enforcing the…

    • 327 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Situation Analysis The following situation analysis will summarise the processes, the nature and the importance of a market segmentation, assessing and evaluating the environments and contributing in effective research and planning when entering a new market. Tim and Amelia Kid seeks to gain market segment in the present of Canberra Business District (CBD), and the heart of the workforce in Canberra. The development of strong marketing strategies, as well as creating a sustainable focus for a competitive advantage, will allow Tim and Amelia Kid to accomplish in the present marketplace. Industry Overview Childcare centres in Australia ensures that the advanced learning and safety ethics continue to improve and provide higher quality of care…

    • 931 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    9/11 Case Study

    • 1159 Words
    • 5 Pages

    As it began to appear that the aviation industry’s economic status was starting to improve, the industry was faced with three more worldwide disasters; an increase in jet fuel prices, a declining economy, and Hurricane Katrina (Money.cnn.com, 2014). Airlines began making operational cuts in order to stay afloat financially and rise above their competition during this financial crisis (Money.cnn.com, 2014). Delta airlines cut seats on international and domestic flights and reduced and ended flights flying from “Cincinnati to London 's Gatwick Airport and Frankfurt” and “Atlanta and Detroit to Mexico City” (News, 2014). To remain competitive during this economic downfall Southwest Airlines, one of Delta’s competitors, cut non profitable flights, added fees, and continued to have airfare sales and promotions to gain new and keep old customers (News, 2014). This was a rough and unsteady period for the aviation industry.…

    • 1159 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Alliant Energy is a company which places a significant emphasis in diversity .Workplace diversity refers to the variety of differences among people including their age, religion, background, education, and other dimensions. Diversity in the workplace may be a great challenge but it also have some benefits. Individuals have different knowledge, perspectives, experiences, and opinion.…

    • 154 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    With ________ as a target market strategy, the firm concentrates on serving many needs of a particular customer group. • single-segment concentration • product specialization • market specialization • selective specialization 12. Company X's principal strength is its inbound and outbound logistics system; its relative weakness, however, is after-sales service. Its competitor, Company Y, however is often plagued with lagging shipments and an inflexible distribution setup. Company Y remains successful because it maintains a fully staffed service department and, as a result, the company is known for its dependable service.…

    • 1398 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Due to these days, there are many low cost airways appear worldwide. Thus, the firms that can tender the cheaper price will be gain the customers. Jetstar want to reach the lower price than others fare airlines so the company designs to adapt another strategy such as partnership strategy to transaction with the main competitors. For instance, according to Business Traveller Asia-Pacific (2010), Alan Joyce state that ‘‘Jetstar and AirAsia offer unmatched reach in the Asia-Pacific region, with more routes and lower fares than their main competitors, and this new alliance will enable them to maximise that scale.” “Figure 3 is image of Tony Fernandes, Alan Joyce and Bruce Buchanan share a laugh at the January 6 launch of the Jetstar - AirAsia alliance”.…

    • 747 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Furthermore, each of the segmented markets have qualities…

    • 1168 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    Klm Skyway Ads

    • 795 Words
    • 4 Pages

    KLM Royal Dutch Airlines gives off an impression that potentially choosing them will place the consumer on a pedestal and bring them to wherever their hearts…

    • 795 Words
    • 4 Pages
    Decent Essays
  • Great Essays

    Airasia Case Study

    • 1214 Words
    • 5 Pages

    I. INTRODUCTION a. Objectives and Scope AirAsia is a malaysian low-cost airline. It scheduled domestic and international flights and is Asia’s largest low fare airline. Nowadays, MIS is a significant factor that influence the airlines system. In this article, the writer will focused on the online booking department that generized with the MIS system.…

    • 1214 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    In accordance to the case, there are several opportunities that can be justify. Among them are withdrawal of traditional companies from the less traffic intense point to the most traffic intense point routes using regional airports, industry growth in European air travel industry, being a fine choice of most of the market due to recession and also success in ancillary services may lead the company to new markets for joint ventures. Market sharing growth as Ryanair, targets of reaching a hundred million passengers by March 2019 with an extensive new network transatlantic routes from the EU to the United States. Hence, by expanding to eastern and northern Europe, it could create the possibilities of business alliances, having their own mileage…

    • 839 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    B & G Shoprite Case Study

    • 1423 Words
    • 6 Pages

    Question 1: Market Segmentation is the process of grouping a market of potential buyers into distinctive groups of buyers that have mutual needs and respond equally to a marketing action. This help the companies like B & G Shoprite to target different groups of consumers perceiving the benefits of their products, A Close Shave. At the end of marketing segmentation, the Company (B & G Shoprite) will be able to establish their target market. B & G Shoprite should concentrate market efforts toward one or a few key market segments consisting with needs mostly close related to the new product A Close Shave.…

    • 1423 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Theoretical Part Market Entry strategy In internationalization process, companies implement various number of ownership strategies which determined the institutional form in market entry, formulation of ownership strategy depends on many factors; the situation of transaction costs – covering it in exporting process, share it with partners or to own facilities in targeted market- , economic of scale and scope, fiscal advantages, currency changes, decreasing political resistance, capital involvements of partners and intensity of partner involvement. Ownership strategies include; exporting, licensing and franchising agreements, production agreement, those previous strategies usually used to cover the transaction costs of national market when it…

    • 1589 Words
    • 7 Pages
    Improved Essays