EFFECTIVE PROMOTIONAL STRATEGIES ON PROFITABILITY OF AVIATION INDUSTRY
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EFFECTIVE PROMOTIONAL STRATEGIES ON PROFITABILITY OF AVIATION INDUSTRY
Chapter one
INTRODUCTION
1.1 Background of the Study
Marketing and promotional tactics in the aviation industry may fluctuate depending on the specific circumstances of each individual business, such as Arik Airline.
However, there are other methods to categorise some generic marketing strategies. A quick summary of the most prevalent categorising schemes by David J (2002) is provided below:
· Market dominance strategies categorise corporations according to their industry dominance. Market dominance techniques are typically classified into four types:
O Leader
O Challenger
O Follower
O Nicher
The recent pattern of corporate collapse in Nigerian airline industries is growing increasingly frightening, necessitating an urgent remedy to halt the trend. Many Nigerian companies are going out of business; many of them are engaged in relatively competitive industries, sectors, or brands.
Thus, any company that wishes to survive the negative trend must implement the necessary business marketing strategies and plans of action in order to make ends meet, break even, and make business gains/profits; an effective marketing plan thus emerges as a company’s saving grace if it is properly implemented.
A promotional plan is required to achieve a company’s short- and long-term aims. At its most fundamental, short-term planning is essential merely to determine where the company is now and where it will be next week, month, or year.
According to Curry (1999), marketers who do not do rigorous marketing strategy and research risk failing to meet their marketing promotional goals and objectives.
According to Catterall (1988), some marketing executives believe that academic research is irrelevant to their marketing challenges, whereas academics claim that marketing executives disregard their marketing research efforts.
Marketing planning and research are genuine, important, and costly processes that must be completed before making marketing management decisions.
According to Mechanically Osuagwu (2002).Marketing promotional strategy is a critical element in marketing decision making and plan building. Developing a really helpful marketing plan, on the other hand,
would require having solid and trustworthy information data about the business/organization/company and the market, as well as the uncontrolled components and elements that comprise the marketing mix in Arik Airline.
1.2 Statement of the Problem
Nigeria’s business environment is competitive and open to all types of business operators. The majority of these aircraft firms rely on the support of their customers and clients to stay in business.
Airline organisations in Nigeria have not benefited significantly from marketing strategy and plans due to a misunderstanding of the concept of marketing. Some people assume that marketing is only for financial businesses, such as banks and other financial institutions, or telecom companies. As a result, they rarely use marketing in their businesses.
Another issue with the Nigerian business environment. In terms of effective marketing strategy, most organisations take the wrong approach to marketing promotions.
However, the majority of Nigerian organisations utilise marketing to de-market other organisations. They use the media to spread derogatory information about other competing businesses and organisations.
As a result, the problem of unethical standards and unregulated information dissemination by organisations when marketing through advertising and other technological means has become uncomfortable in the corporate environment.
Finally, the overhead costs associated with organisational promotions have an impact on the business’s turnover and profitability.
As a result, the purpose of this study is to analyse the potential consequences of the aforementioned elements on the firm and society as a whole, as well as the impact of a successful marketing plan on a company’s profitability, with a specific focus on Arik Airlines.
1.3 GOALS OF THE STUDY
The study’s aims include the following:
1. To assess the effects of effective advertising methods on the profitability of the aviation business, with Arik Airline as a case study.
2. Determine whether an effective marketing promotion plan has a more negative or positive impact on a company’s profitability.
3. To develop strategies for implementing effective promotion plans in a company that now lacks such plans.
4. Make recommendations on what can be done to help businesses capitalise on the benefits of good marketing strategy and plans.
1.4 Significance of the Study
The significance of the research work will be:
1. To help Nigerian managers, marketing professionals at Arik Airline, and the general public to properly grasp the benefits and drawbacks of having an effective marketing plan in a company.
2. It will provide immediate answers to the drawbacks caused by unimplemented marketing promotion techniques.
3. To assist commercial organisations to capitalise on the benefits of excellent marketing promotion programmes for the company’s profitability.
4. It will also contribute to the body of knowledge and literature on the subject/topic under consideration for future reference.
1.5 RESEARCH QUESTIONS.
The researcher intends to address the following questions during the course of this research:
i) What are marketing promotion strategies?
ii) What are the aims of Arik Airlines’ strategies and plans?
iii) What are the challenges associated with the execution of these strategies?
iv) How effective are the tools utilised to implement these promotion strategies?
V) Does it genuinely boost the company’s profitability?
1.6 Statement of Hypotheses
The following null hypotheses are proposed and examined throughout the course of this investigation. Hypothesis One
Ho: Effective Marketing Promotion Strategy has little impact on the
Profits of Arik Airlines
H1: Effective marketing promotion strategy has an impact on Arik Airline’s profits.
Hypothesis two.
Ho: Effective market advertising cannot increase the turnover of Arik Airline.
H1: Effective market advertising can increase the turnover of Arik Airline.
1.7 SCOPE OF THE STUDY
The scope of this research is limited to the aviation industry in Lagos State. References to other organisations and areas are only for comparative purposes. The company chosen for the study is Arik Airline.
1.8 Limitations of the Study
The study’s key limiting issue is the time and cost of performing a survey on market promotions and strategies in the aviation industry. These are accountable for limiting the scope of the study to Arik Airline’s operations in Lagos’ main land and island locations. Another limiting element is the expectation that respondents will respond honestly and accurately to questionnaires.
1.9 Organisation of the Study
The first chapter is an introduction, the second is a literature review and theoretical framework, and the third is about research technique. However, Chapter 4 is the analysis and interpretation of the results, while Chapter 5 is the summary, recommendation, and conclusion.
1.10 Definition of Terms
Marketing refers to all of the operations carried out by an organisation in order to produce goods and services and make them available to customers.
Marketer: Anyone who sells products and services.
Advertising: All of the tactics and channels used to bring goods and services to the attention of customers.
Advertising practitioner: Anyone who practices advertising.
The advertising code contains all of the criteria that advertising practitioners must adhere to.
Purchase behaviour: How consumers react to advertised goods and services.
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