United Airlines Case Study

1375 Words6 Pages
$1.1 billion; equivalent to $2.75 per share (Jones, 2014). The Success factor that United necessitates has a pronounced influence on travelers, because it illustrates in numerical data how much it has accomplished over a period of time. United’s success translates into customer preference because they focus on what’s important to their customers. Social class is defined as “a division of a society based on social economic status” (Oxford Dictionaries, 2015). Virtually all human can be categorized in a form of social class. There are compound forms of social class levels, which include lower lowers, upper lowers, working class, middle class, upper middles, lower uppers and upper uppers (Kotler & Keller, 2012, pg. 151). . Each social class…show more content…
Firstly, the company will want to identify within the marketplace what they can offer that other airlines cannot. Secondly, United Airlines needs to be able to make their service reachable to the consumer. “Consumers in the segment must be able to receive your marketing messages to know the product or service exists, understand what it can do for them, and recognize how to buy it” (Sean 2014). Thirdly, the company needs be aware on how consumers will react to their service, negatively or positively. The target market ultimate goal is to provide ideas that will help increase profitability, and be in line with the board of director’s goal for the organization. By reviewing the attractiveness of each segment, a conclusion can determine if the target market will be…show more content…
The five market segments United can pursue: full market coverage, market specialization, product specialization, selective specialization, or single-segment concentration. Full market coverage is when “a firm attempts to serve all customer groups with all the products they might need” (Kotler & Keller, 2012, pg. 232). Market specialization is when a “firm concentrates on serving many needs of a particular customer group” (pg. 234). With selective specialization, “a firm selects a subset of all the possible segments” (pg, 234). Single-segment concentration, “the firm markets to only one particular segment (pg. 234). Even though these market segments are great tools, I wouldn’t recommend them for United Airlines. United should pursue a product specialization strategy; “the firm sells a certain product to several different market segments” (pg. 234). This type of strategy will permit United Airlines to improve on its reputation for quality in brand development. By expanding its market through product specialization, United can build a stronger brand for its
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