Choose any company that engages in B2B marketing and sales such as GE, Boeing, AC Delco etc..and discuss their marketing plan using the 4 Ps as your guide( use them as the components of the marketing plan) . Also, include a critique of their plan and what you would do to improve upon it. It should be 5 to 7 pages with 3 to 5 sources. Please us MLAAPA and include a bibliography.
Analysis of Boeing Marketing Plan
Boeing is one of the leading aircraft suppliers in the world. A large percentage of individuals are conversant with the use of Boeing parts in manufacturing airplanes. Over the years, the company’s sales have significantly increased. However, with the subsequent crashes in the firm’s airplane models, consumer trust in the brand dwindled. The company adopted a marketing strategy that aids in boosting its sales. After the crash, the firm should enhance its approach to re-build the lost trust. If the company fails to review its marketing plan, the corporation might collapse; therefore, it is essential to analyze its marketing strategy to boost its longevity in the aircraft niche industry.
Overview of Boeing Company
Boeing is an international corporation that is dependent on aircraft manufacturing. Forbes reveals that the company specializes in manufacturing commercial airplanes, space, defense, and security systems. Haddad et al. explain that the firm’s products range from advanced information and communication systems, business and military aircraft, performance-based logistics and training services, weapons, launch systems, satellites, and electronic and defense systems (2). According to Forbes, the firm was founded by William Edward Boeing in 1916, with its headquarters in Chicago, Illinois. With over 141,000 employees and a yearly turnover of 58.2bn, the company has grown. Its current CEO, Dave Calhoun, ensured that the company was voted among the best employers in 2020 (Forbes).
Al-Najjar et al. (4) reveal Airbus as the firm’s main competitor. Nonetheless, the competition does not affect Boeing’s leadership position in the aerospace industry (Al-Najjar et al. 4). Concisely, Boeing is an international firm that leads in the manufacturing and supply of commercial and military aircraft and the aftermath services.
Analysis of Marketing Plan Based on its Positioning Strategy
The marketing plan of the corporation can be reviewed through its positioning strategy. The 4Ps: Product, price, position, and promotion, reveal how the firm is strategic in its marketing. They highlight how the firm customizes its product, pricing, place, and promotion to boost its sales. These 4Ps determine the success of the firm’s sales in the aerospace industry.
The corporation customizes its products to boost its sales. Boeing specializes in the production of a variety of aircraft to meet consumer demands. Its commercial planes are tailored to meet foreign and domestic needs based on passenger and cargo stipulations (Al-Najjar et al. 4). The firm manufactures high-capacity planes to increase the number of passengers that can be conveyed at a time. Al-Najjar et al. depict that Boeing airplanes were manufactured to meet the large passenger capacity (4). Its model, Boeing-747-400, can ferry up to 450 travelers in a single flight (Al-Najjar et al. 4). Equally, military airplanes differ depending on state needs. Being a supplier of over 150 states, the corporation has specialized its products according to specifications (Haddad et al. 2). Summarily, the firm’s product customization boosts its competitive advantage in the aerospace niche industry.
Diversification of the product mix enhances the corporation’s sales. As outlined, the company produces commercial, security, space, and defense aircraft and systems (Forbes). The manufacturing of these products ensures that the company does not rely on a single source of income. Equally, diversification of the products warrants the company to enjoy economies of scale. With a large market base, the cost of production decreases while the sales increase; thus, optimizing profits.
The pricing of the company’s products enhances its sales in the aerospace industry. According to Forbes, the corporation made over 52.8bn revenue. The high revenue turnover indicates that the company’s pricing is favorable to the market. Low sales often mark high pricing, while fair and low pricing translates to increased sales. Therefore, the firm’s revenue indicates that its products are cost-effective. With reasonable pricing, the corporation has enhanced its marketing. Forbes suggests that the price to sales valuation measure is 2.37. The figure demonstrates that the corporation utilizes its pricing to gain leverage in the aerospace industry.
The corporation’s international presence helps in enhancing its sales. Haddad et al. note that the corporation has subsidiaries in competitive markets such as; United States, Asia, Europe, and the Middle East (2). The company’s products are used in over 150 states worldwide (Haddad et al. 2). Setting up subsidiaries across the globe increases the firm’s market base. As a result, the corporation benefits from economies of scale. Indeed, its positioning helps in optimizing the corporation’s profits.
The corporation utilized a change of leadership to elevate its sales. Welch (4) reveals that the former CEO, Muilenburg, was focused on profits and costs. However, the new CEO, Calhoun, prioritizes safety and engineering in the firm’s corporate culture (Welch 4). Welch further elucidate that during an interview, Calhoun stated in New York Times 2020 that the corporation takes responsibility for the flawed control system in 737 Max and promises to revamp all models. Restructuring the aircraft model would ensure the passengers’ safety engineering (Welch 4). The interview won the hearts of the consumers as they slowly started to trust the corporation. Calhoun’s apology tour further helped in promoting the brand as legitimate. The willingness of a corporation to accept its mistakes and rectify them is one of the indicators of a consumer-focused firm. Therefore, Calhoun’s actions promoted the firm; thus, boosting its sales.
Critique of The Marketing Plan
The company’s product defects jeopardize the firm’s leverage in the aerospace market. The flawed airplane model Boeing 737 Max led to adverse crashes that resulted in the death of 346 people in 2018 and 2019 (Welch 1). Welch reveals that the airplane model, 737-Max, depicted failures in its automated flight control system (1). The failure of the company to ensure system security and safety prompted distrust among consumers (Welch 1). Welch (5) reveals that as a result of the negative public perception of 737-Max, approximately 350 of them were grounded. As a result, the company registered losses due to the malfunctioning of its product. Concisely, the corporation’s faulty aircraft hinder the success of the firm’s marketing strategy.
The corporation should focus on manufacturing standardized parts and technology. Al-Najjar et al. (5) highlight that Airbus surpassed Boeing products due to their standardized features and technology. Coping the mechanism can help boost the firm’s products. Equally, standardizing the engines and control systems will aid in the eradication of flaws in the aircraft’s system. The company will avoid instances of 737-Max. As a result, the corporation will improve the product design and model; thus, making it’s a profitable brand. Indeed, standardizing parts and technological components of the firm’s products and services will boost its productivity.
The company should increase the production of cargo aircraft. With Covid-19, there are flight restrictions to hinder movement. Welch (6) depicts that the ongoing pandemic hinders the firm’s normal operations due to social distancing. However, the regulation allows the passage of cargo. The company, therefore, should take advantage of the situation and increase the aircraft’s cargo capacity (Welch 6). Widening the cargo capacity in the new models will increase the demand for aircraft that will ferry passenger’s cargo. With the high demand, the company will supply its product to the airlines; thus, boosting its sales. Indeed, the production of cargo aircraft will aid in optimizing the company’s profits.
The corporation should re-brand its aircraft. With the adverse impact of 737-Max crashes, individuals are wary of boarding a similar model. Welch (6) reveals that convincing individuals to fly using 737-Max would be hard. With the wrong perspectives, the company will hardly make sales. Therefore, it is essential to re-brand the aircraft. After revamping the flawed control system, the corporation should re-name the plan. Having a new name would attract passengers to try it out. They might be cautious of it at first, but they will trust the company’s products again with time. Certainly, re-branding would help in marketing the corporation’s products.
In conclusion, Boeing corporation specializes in the manufacturing of aircrafts both for business and military purposes. The firm also provides aftermath services such as weapons, launch systems, satellites, and electronic and defense systems. Through the 4Ps (Price, Product, Place, and Promotion), the company has leveraged its productivity in the aerospace industry. They showcase the firm’s higher competitive advantage over competitor companies such as Airbus. However, the shortcomings in the 4Ps hinder its progress. For illustration, the major 737-Max crashes resulted in negative consumer perspectives. However, the corporation can make a comeback. Revamping the flawed models and re-branding them will help in regaining consumers’ trust. If the recommendations are taken seriously, the company will make a more significant comeback in the market.
Al-Najjar, Nabil, et al. “Boeing and Airbus: Competitive Strategy in the Very-Large-Aircraft Market.” Kellogg School of Management Cases (2017).
Forbes. “Boeing (BA)”. Forbes, https://www.forbes.com/companies/boeing/?sh=d88d7c11d085.
Haddad, Malik, David Sanders, and Giles Tewkesbury. “Selecting a discrete multiple criteria decision-making method for Boeing to rank four global market regions.” Transportation Research Part A: Policy and Practice 134 (2020): 1-15.
Welch, James. “Will Boeing soar again? Navigating a corporate recovery process.” Journal of Business Strategy (2020).