Unit 2 Marketing Management – British Airways Assignment

Introduction

This assignment was initially developed by our assignment writer, and the primary aim of this Unit 2 Marketing Management British Airways Assignment report is to prepare a marketing plan for British Airways. This report gives a brief overview of the segmentation, targeting and positioning strategy followed by British Airways, the United Kingdom's (UK) largest airline. Students looking for in-depth insight into this topic can avail the assistance from our expert assignment help services. At Locus Assignments, we make every effort to supply students with the best and suitable answers. Aside from this, this report has also discussed SWOT analysis, PESTEL analysis, marketing mix and Michael Porter's five forces in the context of British Airways. The report examines the promotion strategies adopted by British Airways to attract customers and also gives the vision, mission and objectives of the company. This report will also examine the current marketing strategies of British Airways. Through strategic analysis, some key recommendations that British Airways can make are detailed.

Corporate Overview

British Airways is the UK's flag carrier and one of the world's leading airlines, and also maintains one of the largest route networks internationally. It is also rendered to one of the world's largest airlines, based on the number of flights on a roll and the number of destinations it serves. To oversee British Overseas Airways Corporation, British European Airways, and two other small regional airlines, the UK government created the British Airways Board in 1972. However, subsequently, all four airlines joined together to create British Airways in 1974. British Airways operates scheduled air services for passengers and cargo and operates to over 160 destinations around the world. Airline marketing, aircraft maintenance and financing, insurance services and package holidays are offered by British Airways (International Airlines Group, 2024).

The firm has registered steady growth with rising competition since the airline industry was privatised over the years. British Airways has been identified as a pioneer airline in adopting green technology and making eco-friendly strategic choices. In an effort to curb greenhouse gas emissions, British Airways has been a key promoter of initiatives by European countries, actively participating in sustainable aviation fuels initiatives and fleet renewal to reduce its footprint, as revealed in recent corporate reports (International Airlines Group, 2024). The firm was also affected by the global economic recession of 2008 in its revenue; however, it has proven to be resilient ever since. British Airways has always been committed to providing quality and world-class services to customers.

British Airways has a fascinating history and a robust place in the aviation sector. If you are preparing such case studies or require assignment help services for the same, allow our experts to give you well-researched and detailed solutions. Upload assignment specifications now and proceed with it immediately!

Contemporary Methods

In comparison to its competitors in the airline sector, British Airways has a commanding position. The company has developed proper strategies for promoting its brand in the local and global markets. British Airways has developed a number of customer-focused schemes to build trust and loyalty among customers. The company's goal is to be the most responsible airline, and with regard to fleet size, international destinations, and international flights, it is the largest airline serving in the United Kingdom. British Airways has utilised computing and mobile technology to provide efficient service to consumers, constantly improving its digital footprint and mobile app features for enhanced customer interaction (Marketing91, 2024). The company has developed a range of strategies, including:

• The availability of business-class-oriented mobile application services has led to improved customer experiences with easier booking, check-in, and onboard services.
• The firm has also provided mobile and texting services to business-class passengers on board, thus enhancing connectivity and productivity.
• To deliver better services, British Airways has upgraded its current fleet of aeroplanes by investing in more efficient and comfortable aeroplanes.
• Strategies have been developed to manage cost-focused operations, improving efficiency in a bid to maintain competitiveness in a competitive market.
• In order to make the flight more comfortable, British Airways has come up with ways to alter the aircraft to include cabin comfort and amenities.
• Ticket price management is an ongoing and highly effective approach that balances good quality service at affordable prices (International Airlines Group, 2024; Marketing91, 2024).

Segmentation, Targeting, and Positioning (STP)

The STP model has helped organisations to examine market situations. The model consists of three separate steps:

• Divide the market
• Target the best customer
• The positioning of goods or services.

Customer segmentation strategies will be useful in planning for future growth. Therefore market segmentation of British Airways can be described as:

Step 1: Segmentation

The division of the whole market into several sub-markets based on some characteristics is referred to as segmentation. Segmentation of target markets can be done through different methods. British Airways' market segmentation comes under four sections: demographic, geographic, behavioural, and psychographic.

• Demographic Factors: British Airways has differentiated the market along several demographic factors such as income, gender, age, and education. In response to low-cost carriers, British Airways has modified its price policy to appeal to additional demographic segments.
• Psychographic factors: Segmentation could also be done by the attitude and lifestyle of customers. British Airways segmented its customers on the basis of the mode of travel, i.e., business and leisure and both. Spacious seating and a courteous cabin crew, and quality food and drinks have been offered by British Airways to make the customers brand loyal, catering to customers who value service and comfort over price.
• Geographic Factors: British Airways has segmented its United Kingdom and European domestic flights according to regional characteristics and the density of passengers. For instance, a higher number of domestic and international flights are operated in regions where the use of air travel is high, reflecting sensitivity to major traffic points.
• Behavioural: This segmentation divides people based on product or service use habits, brand loyalty, and benefits sought. British Airways always focuses on business travellers and frequent flyers by providing loyalty programs and high-value products (Cognitive Market Research, 2025).

Step 2: Targeting

To successfully market their services and products, organisations deliberately target specific market segments, a process referred to as targeting. Target markets may be identified using many frameworks: an organisation may target one market using a single product (single-segment concentration) and target several market segments using many offerings. British Airways is an example of single-segment concentration because it offers four different packages of services for various groups of consumers. British Airways' service offerings available are economy, premium economy, first-class, and executive, serving specific groups of customers. British Airways targets a group of citizens who are part of the main ABC1 market, and those who enjoy the luxury services offered by the airline. By expanding its short-haul market, British Airways again confirmed that it desired to appeal to a greater range of consumers.

Step 3: Positioning

The last step of the STP (Segmentation, Targeting, Positioning) process is positioning. This involves the identification of a marketing mix best suited to the targeted customer segment. British Airways never positions itself as providing the lowest fares like most of its competitors. Instead, the airline targets mainly urban cities where most of its business professionals live and do their business, thus solidifying its image as a premium, international airline. British Airways has recently declared its brand positioning as "A British Original," which reflects its unique blend of British heritage, warmth, and global reach, with a focus on appealing to customers who require authenticity and quality. Customers continue to view its offerings as of high quality, which is a key success for British Airways. To achieve enduring growth, British Airways needs to continuously develop and properly communicate its unique value proposition (British Airways Media Centre, 2022; Marketing91, 2024).

PESTEL Analysis

It is most often a framework used to evaluate an organisation's external macro environment based on political, economic, socio-cultural, technological, legal and environmental factors. All these elements impact the development and growth of any organisation. This is a highly effective tool used by organisations when they introduce new products or services, as well as highly effective when using competitive strategy in the future. British Airways' PESTEL analysis involves a study of the impact of these external forces on the airline.

• Political: Political powers, through legislative and policy actions by the government, have the potential to influence the economy or particular industries greatly. An example is the imposition of new taxes or charges by the government, affecting the overall framework of revenue collection by organisations. British Airways is subject to government legislation to be able to continue its operations. Because the threat of terrorism has been ever-present, safety for passengers has been the government's top concern, an influence that is felt by the entire airline business. British Airways is also confronted with trade unions, which organise strikes to force companies to meet employees' needs, a perennial problem for the airline business (International Airlines Group, 2024).
• Economic: Economic considerations like inflation, exchange rates, and economic growth are significant drivers of business growth. The global financial crisis has notably impacted various organisations in various sectors, especially the airline sector. Moreover, devaluation of the pound against other currencies has negatively impacted the operational efficiency of British Airways. Over the past few years, the rise in landing charges has also impacted the revenue profile of British Airways. Volatility in oil prices around the world has also impacted exchange rates, thereby impacting the airlines sector. Moreover, economic and social development have been impacted negatively by over-taxed international air transport. To reduce tax burdens, the International Air Transport Association (IATA) organises various campaigns and campaigns actively to offer a more favourable economic environment for airlines (International Airlines Group, 2024).
• Social: These determinants, such as the collective attitudes and beliefs of populations, and determinants like the age structure and population growth, have been influential in shaping the airline industry. The rising median age of the population in the United Kingdom is a cause of concern, as older people tend to have lower disposable incomes and prefer other modes of travel. In addition, rising unemployment rates influence consumer spending habits. On the other hand, British Airways can capitalise on the increased preference of older citizens to travel by reconfiguring its services to accommodate the needs of this age group. Additionally, the increased public awareness of climate change also has a significant influence on consumer behaviour towards more environmentally friendly modes of travel (International Airlines Group, 2024).
• Technological: British Airways has utilised contemporary technology to upgrade the quality of services provided to its clients. The company has created an online ticket purchasing system, which has turned into a standard procedure in the sector. The online system also provides a more competitive arrangement for British Airways, as consumers can easily compare prices of various airlines on various websites. Nevertheless, the contemporary technology platform has developed benefits for consumers and airlines, including personalisation and efficiency in operations. The company has launched in-flight Wi-Fi services for consumers, an incredible achievement, and continues to invest in state-of-the-art technology to improve its engineering, operational efficiency, and quality of flight services (Marketing91, 2024).
• Environmental concerns: The government of each nation has set out environmental laws specifically designed for airline operations. British Airways shows concern for not causing harm to the environment and takes major steps to reduce noise pollution. In order to reduce the noise issue of residents who reside near airports, British Airways uses planes that are equipped with noise reduction technology. The company's image can be soiled if it fails to uphold its environmental mandate, especially in the wake of increased scrutiny of carbon emissions and its efforts to become net-zero (International Airlines Group, 2024).
• Legal: British Airways has been affected by the operations of trade unions and is involved in legal issues with its employees. There have been several legal issues in the airline sector; British Airways has encountered legal issues when government authorities placed merger restrictions, for instance, earlier proposals between British Airways and American Airlines. In addition, British Airways has also faced the effects of cabin crew strikes that led to various legal issues. Low-cost carriers have been a challenge for British Airways, as they provide equivalent services at reduced costs, leading to ongoing regulatory and legal challenges in competitive markets.

PESTEL analysis offers some key insights on British Airways based on some diverse influences, such as political, economic, social, technological, environmental, and legal, that affect its current operations. When creating new business strategies, these elements have to be taken into consideration, and they have to be integrated into the strategic planning process. Different government policies have affected British Airways and other carriers; due to environmental concerns, British Airways has planned its strategy to fulfil government requirements and regulations. Further, the organisation has received numerous awards for its contribution to society, such as being recognised as a leading airline in Western Europe.

Understanding British Airways' PESTEL analysis is important to comprehend the airline sector. Having trouble doing such analyses for your assignment, look to our professional assignment helpers and receive quality, customised assistance. Contact Locus Assignments today for your customised help!

Michael Porter's Five Forces

In the analysis of British Airways' position in the market, Porter's five forces can prove to be a helpful analytical tool. Porter's five forces analysis is a positive framework that allows organisations to analyse competitive forces in any given industry (Porter Analysis, n.d.). The five forces are:

1. Barrier to new entrants
2. Threat of substitutes
3. Bargaining power of buyers
4. Bargaining power of suppliers
5. Competitor industry

Threat of new entry	Competitive rivalry	Buyer power	Supplier power	Threat of Substitution
Barriers to new entry Time and cost of entry Cost advantages Technology protection	Number of competitors Customer loyalty Quality differences Degree of transparency	Number of customers Price sensitivity Total amount of trading Buyer information availability	Number of suppliers Strength of the distribution channel Size of suppliers Ability to substitute	Cost of change Substitute performance Quality depreciation Buyer switching cost

In order to increase profitability, Porter’s five forces analysis will enable British Airways to make strategic decisions. British Airways' market situation can be explained through the five forces:

Strength	Threat/Force
Low	The threat of new entrants
	• There are various significant barriers in the airline industry such as high capital investment, stringent regulatory requirements, establishing economies of scale, and achieving product differentiation.
	• New airline companies have to face tough competition from existing players, particularly established full-service carriers like British Airways. Experienced staff is very important for an airline company to survive and compete effectively.
	• Competing on limited routes and gaining access to prime airport slots, especially at constrained hubs like Heathrow, poses significant challenges for new entrants.
	• Difficulty in finding suitable airports with available capacity further limits new entry.
Low	Threat of substitutes
	• There is no real alternative to long-haul air travel in terms of cost and time, making this segment less susceptible to substitution.
	• In short-haul or short-distance flights, British Airways faces significant substitutes such as high-speed rail networks (e.g., Eurostar), road transport, and carpooling, particularly within the UK and Europe.
	• Hence, British Airways needs to continually focus on enhancing its domestic flight offerings and overall value proposition for shorter routes to mitigate this threat.
	• Therefore, British Airways generally faces fewer direct threats from substitutes in its international long-haul operations compared to short-haul segments (Porter Analysis, n.d.).
High	Competitive Rivalry
	• British Airways has mainly focused on both short and long-haul flights. In terms of pricing and service offering, there is increasing differentiation pressure between British Airways and its numerous competitors, including budget airlines and other flag carriers.
	• The short-haul flights are more intensely affected due to the proliferation of low-cost carriers offering highly competitive prices and increased capacity.
	• Competition has intensified due to variations in ticket prices, dynamic pricing strategies, and aggressive promotional campaigns across the industry.
	• Major competitors like Virgin Atlantic and other European and Middle Eastern carriers actively contest market share, leading to high competitive rivalry (Cognitive Market Research, 2025; Porter Analysis, n.d.).
High	Supplier power
	• The power of bargaining has increased for key suppliers due to the highly specialised nature of the airline industry. This includes aircraft manufacturers (Boeing, Airbus), engine suppliers, and highly specialised maintenance providers.
	• British Airways is often restricted to a sole supplier of jet fuel at specific airports, which can create a dependency and impact operational costs.
Medium	Buyer power
	• In the airline industry, the buying power of consumers is significantly influenced because there are several airlines that offer different prices and service bundles, providing consumers with numerous choices.
	• Online ticket booking platforms and aggregators have dramatically increased competition, as consumers can easily compare prices of different airlines through various websites, leading to greater price sensitivity.
	• Corporate clients and travel agencies often have high bargaining power due to the volume of business they provide.
	• Most consumers are now highly aware of technology like using the internet, making bargaining power generally high due to price transparency and ease of switching (Porter Analysis, n.d.).

SWOT Analysis

To analyse British Airways' strengths, weaknesses and potential for improvement, SWOT analysis would be the ideal approach. SWOT is an acronym used for strengths, weaknesses, opportunities and threats.

Strengths:

• The company is an iconic brand in the aviation industry, with a large fleet and extensive global services, boasting one of the most extensive route networks globally (International Airlines Group, 2024).
• British Airways operates a fully equipped, state-of-the-art fleet of aircraft, consistently upgrading for efficiency and comfort.
• The company operates on all continents with many outlets around the world, thus making it a global force to be reckoned with.
• Customers have shown strong brand loyalty and are confident on the basis of its rich history and quality delivery of service.
• Strategic partnerships and agreements, as evidenced by its participation in being part of the Oneworld alliance, enhance its global footprint and competitive strengths.
• Its biggest strength is its operations team, which handles customers extremely well, with a reputation for excellent service.

Weaknesses:

• A rise in the price of fuel is a major menace to the aviation industry because it directly affects the costs of operation. Higher fuel prices lead to a rise in ticket fares, hence impacting revenue as well as industry competitiveness.
• The slowdown of the UK economy and economic uncertainty globally also affect the financial stability of British Airways, which impacts demand for premium travel.
• Operational difficulties, particularly those of big hub operations such as those in Heathrow Airport, can lead to issues and work against the customer experience.
• The profitability and operation of British Airways have been greatly impacted by non-fuel expenses, which include staff salaries, airport charges (landings), and maintenance.
• Middle Eastern carriers, along with other rapidly developing foreign carriers, are strong competitors to British Airways, particularly on connecting and long-haul flights that often offer competitive fares as well as advanced aircraft technology (International Airlines Group, 2024; Cognitive Market Research, 2025).

Opportunities:

• Reduced costs of aircraft acquisition and maintenance, driven by technological advances and industry trends, have reduced operating expenses for all carriers and have created many opportunities for fleet renewal and expansion.
• British Airways has vast growth prospects in emerging economies like China, India, and the Middle East, where air transit demand is high in nature.
• The company can go ahead with its international expansion efforts through innovative means and build current alliances and affiliations.
• In developing economies, the airline can also initiate alternative flights on global routes, reaching out to new passenger bases and sources of revenue.
• Embracing digital transformation for better customer experience, ease of operations, and personal marketing (Marketing91, 2024).

Threats:

• In the European market context, British Airways has encountered intense competition from many players that including seasoned flag carriers and aggressive low-cost carriers, resulting in intense price competition.
• The aviation industry has been severely impacted by global crises such as pandemics, political tensions, and economic recessions, which may further result in a sharp fall in passenger demand.
• Rising and volatile fuel costs are an ever-present bugbear for British Airways and other carriers. Continuous fuel price rises enable businesses to increase ticket prices, thus potentially dampening demand.
• With fierce competition from other players in the industry, British Airways has to spend significant amounts on advertising and promotion campaigns to place its brand in the spotlight and sustain its market share (Cognitive Market Research, 2025).
• Higher regulatory mandates on emissions and sustainability targets can lead to higher operational costs.

Marketing Mix

To encourage brands or products in the market, the organisations use the notion of the marketing mix. The 7 Ps of marketing, used by British Airways, are Product, Price, Place, Physical Evidence, Process, People, and Promotion (Marketing91, 2024). They can be explained as:

Element	Key Factors and British Airways Application
Product	• Technology: Modern aircraft, in-flight entertainment, Wi-Fi. • Design: Cabin layout, seat comfort (Economy, Premium Economy, Business, First). • Quality: Safety standards, service reliability, premium lounge access for higher classes. • Branding: Strong global brand identity, "A British Original" positioning (British Airways Media Centre, 2022). • Packaging: Flight tickets bundled with various service levels (e.g., baggage, meals, seat selection).
Price	• Cost of goods and services: Variable pricing based on class (Economy, Premium Economy, Business, First), route, booking time, and demand. • British Airways uses segmented pricing strategies to cater to diverse customer needs, from budget-conscious leisure travellers to high-spending business clients, ensuring varied offerings from £100 for economy to £400+ for business class (Marketing91, 2024).
Place	• Direct sales: Primarily through its official website and mobile app, reducing reliance on intermediaries. • Online platform: Key distribution channel, allowing global reach and direct customer interaction. • Multi-channel: Partnerships with online travel agencies (OTAs) and corporate booking systems. • Retail/Wholesale: Limited physical presence, shifting towards digital distribution for efficiency (Marketing91, 2024).
Promotion	• Advertisements: Global campaigns across traditional and digital media (TV, print, social media, online video). • Direct marketing: Targeted email campaigns, loyalty program communications. • Special offers: Seasonal discounts, package deals (e.g., "Christmas gift vouchers"). • Public Relations: Media engagements, sponsorships of events related to health awareness, cultural events, and partnerships to enhance brand image. • Digital Marketing: Significant investment in SEO, SEM, content marketing, and social media engagement (Marketing91, 2024; Froggy Ads, 2024).
People	• Customers: Focus on understanding diverse customer segments (business vs. leisure, premium vs. economy). • Management: Strategic leadership driving customer-centric policies. • Staff members: Highly trained cabin crew, ground staff, and pilots are crucial for service delivery. • Culture: Emphasis on professionalism, British service, and customer satisfaction; employee relations are vital for consistent service quality.
Process	• Service delivery: Streamlined booking, check-in, baggage handling, and boarding procedures. • Standardisation: Consistent service protocols across flights and customer touchpoints. • Technology integration: Use of digital systems for efficiency in operations, from flight planning to customer service interactions.
Physical Evidence	• Facilities: Modern airport lounges, well-maintained aircraft interiors and exteriors, clearly branded check-in counters. • Interface: User-friendly website and mobile application design, consistent branding across all digital and physical touchpoints, and staff uniforms. • The tangible aspects of British Airways' service environment underscore its commitment to a premium and reliable travel experience.

The next table defines some of the marketing mix factors, in addition to the most relevant factors that can be applied to individual factors. British Airways' marketing mix can be discussed as below:

• Product: British Airways has provided quality services, and the services provided have effectively fulfilled the wants and needs of the consumers. Flight tickets have been provided at reasonable prices, and all the requirements of the customers have been fulfilled by the company. In-flight services have been provided at the best, and they consist of Wi-Fi, freshly cooked food, drinks, and plenty of seating options that are characteristic of its multi-class cabin layout (Marketing91, 2024).
• Place: The 'placing' refers to the distribution of the manufacturer's products and services to the final consumer. In the context of suitable distribution channels, the organisational products cannot reach the consumers. British Airways sells its products mainly through its official website and mobile app, which has resulted in a significant reduction in the cost to traditional retailers. The company first depended on travel agents; however, with technological advancements, the distribution system has been transformed, and direct digital sales are preferred for increased efficiency and better customer relationship management (Marketing91, 2024).
• Pricing Strategy: British Airways has segmented the price of its services according to customer demand and requirements. For instance, customers on journeys between destinations in economy class may be comparatively low in price as compared to those on upgraded services in business or first-class sections. In a reflection of customer demands, British Airways has effectively segmented ticket prices and services, showing a value-based pricing strategy that supports its premium market position (Marketing91, 2024).
• Promotion: To promote its services or products, British Airways utilises a broad range of promotional activities. Direct marketing, wide public relations, specific advertisements, and a plethora of sales promotions are the key ways in which the company decides on its promotion strategies. To promote its services, British Airways continues to apply special offers, such as discounted fares for holiday seasons like Christmas or through "Christmas gift vouchers." The company widely utilises both print and electronic media for the distribution of its products and services, as well as carrying out digital advertisements on social media. Other promotional activities include sponsoring big events and partnerships, which are routinely placed in magazines and through health awareness campaigns, all of which are in an effort to extend its brand image (Marketing91, 2024; Froggy Ads, 2024).
• People: The success of a company is largely based on its human capital, as the production and consumption of services and goods are actually done by human beings. British Airways appreciates the key role played by people in the campaign process, given that they are the direct contact with customers. Hence, there is a requirement to recruit and always train the right people, ranging from ground crew and cabin crew to managers, to facilitate the provision of effective, consistent, and quality services to customers, thereby generating customer happiness and brand loyalty (Marketing91, 2024).
• Process: The services also depend heavily on systems and practices used within firms. In order to save costs and enhance customer satisfaction levels, British Airways has developed efficient distribution systems in addition to organised procedures and procedures for ensuring smooth operations, processes ranging from online reservations and check-ins to handling of baggage and provision of in-flight services.
• Physical evidence: In the service industry, it is necessary that the services are unique and of good quality since tangible signs have a crucial role to play in the impression of the customers. British Airways has always provided good quality and service to its customers, so its brand presence is strong in its airport lounges, modern aircraft interiors, and digital platforms, thus making effective service delivery on international and domestic flights possible (Marketing91, 2024).

Conclusion

This British Airways marketing management task peaks with the marketing mix analysis, SWOT analysis, PESTEL analysis, and Porter's five forces model relevant to the airline. British Airways has operated successfully in various destinations over time; however, simultaneously, it also has to cope with continuous challenges in the form of intense competition, volatility in operating costs, and changing customer expectations. In order to remain competitive, including the low-cost carriers, the airline continuously alters its strategies by leveraging its strong brand and premium service, while continually enhancing its offerings and strengthening its customer value proposition (International Airlines Group, 2024; Cognitive Market Research, 2025).

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About the Author

Oliver Thompson is a seasoned aviation analyst and marketing strategist, based in London. With over a decade of experience dissecting airline business models and consumer behaviour, his insights provide a fresh perspective on the dynamic challenges and innovative solutions within the global aviation industry, particularly focusing on legacy carriers like British Airways.