MarketAnalysis
TrendAnalysis
Luxuryaviationisshiftingfocusfromaproducttoa service.Theindustryisrecognizingthebenefitof procurementfromonetrustedsource.Onlinebuying experiencehasbeennecessarytomeetdemandsof Millennialconsumerswhichhasshiftedexpectations regardingpriceandavailabilitytransparency.Unlike commercialaviation,privateaviationhasseena25% increaseindemandasaresultofthepandemic.
Consumer Segments
Boeingsellsitsproductstocorporationsand agenciesaroundtheworld.Thismeansthatthe firm'smarketinggoalsarebusiness-to-business (B2B)innature.Theseairlinecompaniesform Boeing'sprimarymarket.Suchclientspurchasetheir aircraftdirectlyfromBoeing.Mostoftheproducts designedandmarketedbyBoeing,therefore,target theseprimarycustomers.Therearealsosecondary marketsthatsupportBoeing'sbusinessmodel.For instance,thecompanyreceivesordersfromdifferent governments,suchastheUnitedStatesgovernment. Aswell,otherstate-managedairlinesacrossthe globepurchasetheiraircraftfromthiscompany. VariousagenciessuchasNASAalsopurchasetheir equipmentfromthecorporation.Secondarymarkets havealsomadeiteasierforBoeingtoachieveits businesspotentials.Thesecustomersusuallyplace ordersinadvance.However,thesesecondary customerspresentasmallerpercentageofBoeing's totalannualsales.
CompetitiveMarketAnalysis
TheBoeingCompanyfacesfiercecompetitionwithintheaerospace industry,particularlyfromAirbus,LockheedMartin,andRaytheon Technologies,etc.OneofBoeing'sgreatestsuccesseshasbeenits extensivebrandrecognition;whilemanyofitscompetitorsremain relativelyunknowntothoseoutsidetheindustry,Boeinghasbecome renownedpredominantlyasanaircraftmanufacturer.
Airbus
BLikeBoeing,Airbuspositionsitselfasapioneerintheaerospaceindustry, manufacturingcommercialaircraftandspaceanddefensetechnologies. ItisheadquarteredinLeiden,Netherlands.Together,AirbusandBoeingown aroundhalfoftheglobalcommercialairlinermarket.Thoughtheyare roughlymatchedintermsofthemarketshare,Boeingusedtobethe leader.Airbusclaimsonitswebsite,‘weaimforabetter-connected,safer andmoreprosperousworld,’astatementwhichhelpstoclarifythe directioninwhichthecompanyhopestohead.Itisclearlyaimingtomatch theconcernsofthe21stcenturybyemphasizinganongoingcommitment toasetofethicalprinciplesregardinginclusivityandenvironmentalissues. Inthisrespect,Boeingwillneedtoconnectwithitscustomersonamore personalandethicalleveltocontinuetocompeteeffectively.
s
RaytheonTechnologies(RTX)isamultinationalaerospacecompanywiththreemainfocuses:safer,more connectedflight,smarterdefensesystems,andintelligentspacetechnologies.Likemanyofitscompetitors, asignificantportionofRaytheon'srevenuecomesfromUSdefensecontracts(aroundtwo-thirds),which meansRTXcouldseerevenuedropslightlyinthecomingyearsasthegovernmentadministrationmoves awayfromdefensespending.LikeLockheedMartin,Raytheonhasaclearfocusondiversityandinclusion withinitsrecruitmentpolicy,anditswebsiteconsolidatestheideathat‘ourpeopleandcapabilitiesforman innovationpowerhouse.’
BombardierIncisanaviationcompany foundedin1942inQuebec,Canada,and headquarteredinMontreal.Muchsmallerthan manyothercompetitors,Bombardierinitially manufacturedcommercialjetsandpublic transportvehiclesbeforeannouncinganew strategicfocusonbusinessaviationin2020. Bombardier'sflagshipaircraft,theGlobal7500, istheworld'sbiggest,longest-range,andmost advancedbusinessjet.Duetoitsstrategic focuswithintheaviationindustry,itisan indirectcompetitorofBoeinganddoesnot poseasignificantthreat.Thatbeingsaid, Bombardierhasaclearcustomerandpeoplecentricfocus,somethingBoeingcouldperhaps learnfromsinceithascometorelyonitspreexistingreputation.Thereisalsoasignificant drivetowardssustainabilitywhichcomes acrossclearlyfromBombardier'swebsite.
StrategicPositioning
Purpose
ThepurposeofBoeingBusinessJetsisto offerconsumersanarrayofBoeingproducts thatcanbeuniquelycustomizedforthe privateandbusinesssectorsbybringingthe bestofcommercialaviationintotherealmof privatetravelwithunmatchedreliability.
StrategicPositioning
Productshaverobustcharacteristicswhich provideanexcellentvaluepropositiontothe privatemarket.Mostoftenofferinglarger, morepersonalizedspace,andworldwide supportfromBoeing.
StrategicPositioning
ThenewgenerationofBoeingBusinessJets willpreserveBoeing'scompetitivepricing. However,thepurchasepricewillbehigher thancurrentBBJmodelsduetothestandard featuresupgradesandfullyelectric technology.Additionalcostswillbeincurred tomanufacturetheaircraftsbutthevalue propositionwillbeenhancedbytechnology andsustainability.
StrategicPositioning
Placement
Boeingisawellestablishedbrandknownfor bothit'sprivateandcommerciallines.The newgenerationofBBJwillofferconsumersa uniqueexperiencethroughmade-to-order availability,aligningwiththecurrentBBJ offerings.
StrategicPositioning
Boeingwillpromotethenewgenerationof BBJthroughpressreleaseanddirect-toconsumermarketing.Itwillleverageits establishedcustomerrelationshipsto proposethevalueofthefullyelectricaircraft.
StrategicPositioning
Boeingwillpromotethenewgenerationof BBJthroughpressreleaseanddirect-toconsumermarketing.Itwillleverageits establishedcustomerrelationshipsto proposethevalueofthefullyelectricaircraft.
StrategicPositioning
People
ThenewgenerationofBBJwillfocuson privateandbusinesssectorsthatprioritize quality,convenienceandmobility.Itwill enhancethevaluepropositionforthese targetsegmentsthroughluxurytechnology andsustainability.
Part2
ConsumerAnalysis
Target Segments
Forthenewgenerationofluxury technologyforBoeing,wewillfocuson privateandcharterconsumersegments. Theseluxuryconsumershavethe disposableincometopurchaseor chartertheBoeingBusinessJet(BBJ) models.Thisconsumersegment includescorporationsandindividual consumers.
Luxuryconsumersandcorporations
Themarketspacewillbeindividualluxuryconsumersand corporations.Theluxuryconsumersarethosewhomhavedisposable incomeandahigh-profilelifestylewhichprovidesthemtheabilityto ownorcharterprivatejets.Corporationsoftenownprivatejetsfor businesstravelpurposes.Thenewtechnologywillaimtomeet consumerneedswithineachofthesesegments.
Privateaircrafts
TheBoeingBusinessJet(BBJ)modelsareprivateaircraftsspecifically designforluxurybusinesstravel.Thenewgenerationwilloccupy marketspacewithintheprivateaircraftindustry.
Market Space
Convenienceandcomfort
Thetargetconsumersseekconvenienceandcomfort.Thenew technologywillfulfillbothoftheseconsumerneeds.Convenience includeshavingon-demandaccesstoaprivateaircraftbutwillbe enhancedwiththenewtechnology.Theon-boardWiFiwillallowthem tostayconnectedwhileinroutetodestinations.Comfortwillbe elevatedbytheaddedfeaturesincludingmassagechairsandsmart TVs.
Luxuryandsocialstatus
Mental Space
Privateaircraftconsumersseekaluxuryexperienceforsocialstatus aswell.Thenewgenerationwillprovideconsumerstoreceiveluxury serviceexperiencethroughtechnology.Additionally,thefullyelectric aircraftswillbolstertheconsumers' statusbyprioritizingsustainability consciousnessthroughtheirtravel.
Quality
KeyFactors
Consumersarelookingforvaluepropositionthatoffers robustcharacteristicssuchaslargerspace, personalizationandunmatchedreliability.
Convenience
Targetsegmentsmostoftendesireaccesstothesame amenitiesastheyhaveonthegroundthroughmeans ofentertainmentorconductingbusiness.
Mobility
Bringingconveniencefeatureswiththemontravel allowsconsumerstostaymobilebutreliabilityisalso necessaryforsuccessofthiskeyfactor.
BoeingLUX580
NewProductLine
Boeing'snewmodel-LUX580,asthenamesuggests, isaluxuryAirbus.Toreducegreenhousegas emissionsintheaviationindustry,thiswillbean electricaircraft.theLUX580ismainlypoweredby electricityandcanprovideguestswithafasterand greenerflight.Atthesametime,thehigh-techcabin designandseatdesignwillalsobringguestsa home-likeluxuryflightexperience.
Mock-Ups
Sketchofaircraftexterior
TheLUX580isatechnology-richelectricaircraft,thereforeithas hugebatteries.Thephotoaboveshowstheluxuriousmassageseats inthecabin.Ithasanadjustabletransparencyglasscoverto protecttheprivacyoftheguests,andthereisacontrolpanelinside theseattoadjustallthepartsandanglesoftheseat.Theseat's smartTVcanbeeasilypositionedviaatelescopicstandtosuitthe guestsneeds,andtheTVcanbeusedtocallflightattendantsorto orderfood,aswellastoselectfromawiderangeofentertainment options.Thereisalsoasmallseparatestoragecompartmentunder theseatforgueststostoretheirbelongings.
CabinFeatures
WiFi
WiFiwillbeastandard featureavailabletoall passengersontheLUX580. Thiswillallowtravellersto remainconnectedwhileen routetotheirdestination.
SmartTV
TherewillbeSmartTVsfor passengerstocontinueto bingetheirfavoriteseriesor watchmoviesduringtheir travels.Thiswillbeespecially beneficialtofamiliesoron longerflights.
MassageChairs
Asshowninthemockup,the BoeingLUX580willfeature custommassagechairsthat willcatertothepassengers needsfortheultimate comfortexperience.
MoodBoard
On-BoardLuxurySuite
FlightDeck
ElectricEngine
DevelopmentProcess
Identifying opportunities inthemarket
Thereisanincreasedfocuson sustainabilityand environmentaleffortsaswell asservice.Theaircraftindustry hasbeenmakingstridesto providetransparencyand improveemissions.Afully electricaircrafthasnotyet beendeveloped.Shiftingfocus toserviceprovided,the consumerexperienceisa priority.
Research feasibilityand consumer needs
Researchindicatesaneedfor electricaircraftsinthe industry,Manyinthemarket haverealizedthepotential advantagesandimproved efficiencythiswouldprovide. Researchalsoshowsthatthe industryhasshiftedtofocus onexperienceand consumersprefercomfort, quality,andconvenience.
Develop conceptthat fulfillsmarket demands
TheBoeingLUX580fulfillsthe demandsofthemarket throughconsumerexperience andhighefficiency.Asafully electricaircraft,zero emissionswhichwillbe transformativetotheindustry. Consumerneedswillbe fulfilledbyprovidingthem withcomfort,quality,and convenience,throughaluxury experienceduringtravel.
Part4
Distribution&Marketing
DistributionPlan
AsBoeing'sluxuryairplaneproduct,Boeingonlyaccepts purchasesthroughBoeing'sworldwidedistributionnetwork. Wewillofferbothpurchaseandleaseoptions,withadiscountof approximately50%onpurchase.
Theaircraft'sunparalleledelectricalsystemsandrangeflexibility allowoperatorstoprofitablyopennewroutesandoptimizefleetand networkperformance.Fortheirpassengers,it'sauniquein-flight experiencethatismorecomfortableandlessfatiguing.The Dreamlinereffect.Itsthebetterwaytofly.
DistributionChannels
AerospaceandAviationTradeShows
Participateinvarioustradefairstoshowournewaircraftmodelsto customersanddemonstratethefunctions,environment,andadvantages oftheaircraft.Havein-depthcommunicationwithcustomers.
DedicatedWebpage
Creationofadedicatedwebpageontheofficialwebsitefor LUX580,showingthemodelandtheaircraftparameters.Playthe demonstrationvideooftheaircraft.Aswellasorderinginformation.
PromotionSchedule
MarketingPlan
Boeingwillleverageitssocialmediapresencetoannouncethelaunchof thenewLUX580.Thepostswillbepromotedusinggeofencingtotarget consumersinthecountry.Socialmediaadvertisingwillproducethe highestROI.Boeinghashighlyestablishedsocialmediafollowing.Ithas 1.5millionfollowersonFacebookandInstagram,and587millionfollowers onTwitter.Therewillbeamicrositeaspartofthecampaigntocapture thespecifictargetaudience'svisitstothewebsite.Printwillbeusedas anotheradvertisingmethodbutwillnotbeaseasytotrackROI. ThecampaignwillbeginprelaunchinMArchandconcludepostlaunchin August.ThemonthsofMarch-Augustarehighvolumetravelmonthsso thiswillbeanidealtimetolaunchtheLUX580.
Part5 Summary
KeyFindings
Boeinghasover140,000employeesinover65locations aroundtheworld(Boeing,2021).Itsdistributioncenters arestrategicallylocatedindifferentcountriestoensure smoothandefficientdeliveryofspareparts.These centersareconnectedviadigitalsystemstoensure smoothoperations.Boeinghasregionalwebsitesas welltoaddresslocalneeds.
KeyFindings
Boeingpromotesitsproductsandserviceson television,innewspapers,andmagazines.Itspends millionsofdollarseachyearonbothdigitalandnondigitaladvertising.Boeingsponsorsevents,projects, andorganizationstoenhancethebrandimage.Italso usestheofficiallogoinalltheaircraftcarriersto spreaditsnameacrosstheworld.Boeing’smainand regionalwebsitescontainingdetailedinformation aboutit,serveasgoodpromotionaltools.The companyalsousessocialnetworkingsitessuchas Facebook,Twitter,Instagram,Pinterest,andYouTube.
Justification
Aviationpioneershavedreamedaboutthepossibilityofelectricflight fordecades.BeforetheWrightBrothers,innovatorsexperimentedwith batteriesandelectricmotorstopowerairshipsandballoons.In1883, FrenchmilitaryengineersArthurConstantinKrebsandCharlesRenard usedbatteriesandanelectricmotortopowerLaFrance,asteerable, hydrogen-filleddirigible.However,itwouldbedecadesbeforebattery technologyadvancedenoughtopowerfull-sizedaircraft.When longer-lastingnickel-cadmiumbatterieswereinventedinthe1970s, thefirstmannedaircraftwithanelectricmotortookflight—butonlyfor about10minutes.Bythe1980s,energy-denselithium-ionbatteries wereinvented,whichledtoaresurgenceinelectricaircraft development.
Justification
Today,over200companiesworldwideinvestinstartupsandprojects todevelopalltypesofelectricaircraft,fromretrofithybrid-electric generalaviationaircrafttolong-range,commercialplanes,toelectric verticaltakeoffandlandingurbanairtaxis.Theelectricaviation movementisgainingtractionquickly,especiallyastheindustryfaces mountingpressuretoreduceharmfulemissions.Andbeyondthe obviousenvironmentalbenefits,thereareothercompelling advantagestoadvancingelectricaviation,includingreducedfuel costs,quieteroperations,andincreasedreliability.Therefore,ourfully electricaircraft,LUX580,canperfectlymeetthemarketdemand.
Justification
Basedonresearch,thereisanincreaseddemandintheprivatejetsector primarilyasaresultoftheCovid-19pandemic.Consumersareshowing preferencetohealthandsafetynowmorethanever.Theindustryhasalso shiftedfocusfromaproducttoaservicewhichprioritizestheconsumer experience.Consumerneedsintheaviationmarketarequality,comfort,and convenience.
Additionally,withincreasedawarenessinregardtoenvironmentalissues,the aircraftindustryhasnotbeenimmunetoregulations.Thereisanurgencyto improveemissionsandsustainabilityefforts.Sofar,theindustryhas managedtoprovidemoretransparencyandmadestridestowards efficiency.
TheBoeingLUX580willbetransformativetotheindustryasazeroemissions, fullyelectricaircraft.Thecabinwillincludestandardfeaturesthatcaterto theconsumerneedsbyofferingon-boardWiFi,smartTVs,andcustom, built-inmassagechairs.
ExecutiveSummary
Boeinghasbeenaninnovatorinaerospaceinnovation.The businessneedstokeepaimingtoenhanceeveryitemthey develop.Boeinghasalsobeenaleaderinnewdesignsof planesandtheinnovationthatsupportsthem.Andallelectricaircraftcouldgivethecompanyagreater competitiveadvantage.
Boeingusestechnologytoattractitscustomersaswellas seeknewcustomers.Byupgradingmarketingthrough technologyorputtingonapresentationusingtechnology, Boeingisconstantlyshowingwhytechnologyisnecessary. Boeingreliesonthetechnologyofdatabasesand communicationoftechnologytolookintoitsday-to-day activities.Boeingalsoreliesontechnologytocompetewith itscompetitorsandkeepcustomershappy.Boeingisa globalcompanythatreliesontechnologydaily,for communicatingwithcustomersandensuringanefficient businessisbeingrun.Managementreliesonadvanced technologyforcommunicatingwithemployeesandits customersaswellasmakingsurethecompanyisefficient andsuccessful.
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