thy case
DESCRIPTION
Marketing PresentationTRANSCRIPT
STRUCTURE OF PRESENTATION
HISTORY OF TURKISH AIRLINESTurkish Airlines was founded in Ankara in 1933
First international flight was Ankara-Istanbul-Athens in 1947
It was renamed Türk Hava Yolları A.O with a capital of 60 TL in 1956
The company was reclassified as a “State Economic Enterprise” in 1984
Singapore flight was the first far east flight in June,1986
The capital of Turkish Airlines was 700.000 TL in March,1990
First class service started. THT (Turkish Air Transportation) incorporated company merged with Turkish Airlines in September,1993
Turkish Airlines decided to join Star Alliance in 4th August,2006
First commercial flight to Sydney was committed for the Olympic Games. New Frequent Flyer Program ‘‘Miles & Smiles’’ was launched in October,2000
Electronic ticketing(Ticketless Travel) implementation has begun for THY flight crew in 2003
...cont’d
Turkish Airlines decided to raise the number of flying points from 131 to 231 as part of agreement with Lufthansa in 2006
Turkish Airlines decided to join “Star Alliance” in 2006
PEST ANALYSIS
POLITICAL FACTORS
THY is a government-owned, national flag carrier
Labor agreement has powerful(Turkish Civil Union of Aviation)
Discounters suit themselves and make money from receipts thanks to regulations of government
...cont’dIn 2002, the new Turkish Government announced, it would not be subsidization for THY
The State Privatization Administration launched a public share offering
Trust of financial markets without the need for government guarantees
ECONOMICAL FACTORSTicket prices have risen because of the increasing in fuel costs
Air travel in Turkey will be the biggest growth market
THY sells tickets via theInternet so that sales costscan be minimized
...cont’dThe number of airline companies will be diminished and the condition of market will change because airline firms in Europe fortificates
The number of travelling tourist from Europe to Turkey cut down due to the terrorism
International economic situation,or global crisis
SOCIAL FACTORSIn international area, competitors use service culture enough to make their customers comfortable about the airline
They have always been transaction- oriented, not customer oriented
Swine flu,climate conditions and crash in Amsterdam
...cont’dPeople’s lifestyle of transportation is changed by development in aircrafts
Service culture problem, It will take time
Special days
TECHNOLOGICAL FACTORSSatellite programming, wireless internet access, satellite monitors at every seat and seat –back personal video screens in modish aircrafts
Reservation on telephone and on the Internet
THY uses IBM computers
...cont’dThe IT system of THY is the Tryon which is for reservation system.Turkish Airlines makes all procedures in that
Sophisticated information system and infrastructure to optimize complex operations
Availibility of pay phones on the plane
SWOT ANALYSIS
• THY has new fleets
• Strong financial statement
• Qualified staffs
• Member of the Star Alliance
WEAKNESSES• Poor promotion activities
• Advertising problems
• Brand loyalty is low
• Higher prices
OPPORTUNITIESCheap airline companies have limited international flightsTHY is one of the fastest growing airline in EuropeTurkey is a preferable tourism countryClose to the Europe
THREATS• Terrorist attacks
• Discount airline companies
• New entrants in domestic market
• Increasing costs
INDUSTRY ANALYSIS
COMPETITOR ANALYSISDOMESTIC COMPETITORS INTERNATIONAL COMPETITORS
...cont’d
...cont’dDomestic Competito
rsTHY Pegasus Onur Air Atlas Jet
Pricing - + + +
Service Quality
+ - - -
Number of Flying Points
+ - - -
Age & Width of Aircrafts
+ - - -
Financial Ability
+ - - -
PRODUCT LIFECYCLE
T.H.Y
...cont’d
• It operates a network of scheduled services to 120 international and 37 domestic airports
• Its fleet consists of 133 aircrafts & also 25 aircrafts were ordered
• In 2008, its total revenue was US$ 4.5 billion
PORTER’S GENERIC STRATEGIES
...cont’dLow-cost Airline Subsidiaries Star Alliance
Other Subsidiaries such as; Do & Co and Tgs Ground Services
Low-cost leadership strategy Differentiation strategy
Low-cost airline subsidiaries
Partnership with Opet
Using secondary airports in main cities
Star Alliance
Miles & Smiles
E-ticket
Direct flights from Russia to Antalya
Reservation Call Center
THY
STRATEGIC PARTNERSHIP & ALTERNATIVES
BENEFITS OF STAR ALLIANCE MEMBERSHIP
For Turkish Airlines; For Customers;Increase in revenues
Decrease in costs
Market development
More flight points
Ability to use lounges of member airlines
Higher frequencies
One ticket
Ability to connect baggages to destination point
Main Problems
Low prices of Discount Carriers
Do not implement a Customer-oriented Strategy
Related ProblemsThe price structure has a big space in the consumers’ minds
High price tickets comparing with the competitors
High expenditures of Turkish Airlines
The economic crises
Lack of customer services
RECOMMENDATION• They should focus on the east side of Turkey
• They should improve their services about the flyers’ satisfaction
• For attracting the clients, Turkish Airlines may give importance to Customer Service Culture
CONCLUSION
• Today, you can fly with Turkish Airlines’ aircrafts to 74 countries with 120 airports
• In order to flight safety, reliability, product line, service quality and competitiveness,Thy is the 4th rank in Star Alliance
• You can fly to 36 cities in Turkey
