Retail Store Strategy (Week 4)

3 Elements of Retail Store Strategy

Demographic Details of SIA'S target market :

Who? :
- Working Adults
- Families on Vacation
- Tourists from other Countries (who want to visit Singapore)
- Travellers from Singapore (for eg Singapore Muslims who want to go on a Pilgrimage)
- Business Associates
- Schools (which regularly organises Overseas Programs for their Students such as Polytechnics)
- Students from Singapore who wish to pursue education overseas

Income :
Middle-Low Income Group (For Tiger Airways)
Middle-High to High Income Group (For Singapore Airlines)

Gender :
Both female and male

Age Group :
18 years old and above (For Tiger Airways)
30 years old and above (For Singapore Airlines)

Interests :
Customers who travel for leisure, education, religion or business purposes.

1) Merchandise Assortment

SIA only provides one category : Commercial Flights
However, they provide many assortment in that one category.
There are 3 different classes of flights : First, Business and Economy
For Tiger Airways, there is only one standard (Economy) class.
SIA aims to reach out to the different income groups of travellers.
SIA ensures that all of its planes are the youngest, most advanced, most fuel efficient and safest planes in the skies. The average passenger fleet is about 6 years.

2) Customer Service

SIA : High Customer Service
For SIA, they are well known to have one of the best cabin crew in the world. They provide extensive recruitment training to ensure that each and every one of the cabin crew members is not only highly hospitable, but also efficient, reliable and knowledgeable. SIA's cabin crew basic duties include : teaching passengers the emergency procedures, ensuring that passengers comply with the flight regulatory procedures, serving food and drinks, ensures proper seating (specific seating) and ensuring passengers' comfort (They will always be by the passengers' side). For First Class, the cabin crew will attend to you individually.

For Tiger Airways, the cabin crew provides basic customer service. Their main duties include : teaching passengers the emergency procedures, ensuring that passengers comply with the flight regulatary procedures and ensuring that every passenger is properly seated (free seating). They only attend to your enquiries when you request for them. Most of the time, they are out of sight.

3) Communication Mix

SIA communicates to its customers mainly via its website : singaporeair.com
singaporeair.com provides extensive information on SIA's flights and FAQs.
SIA relies greatly on TV ad commercials and radio broadcasts too.

Summary

Singapore Airline's strategy is using its services. The excellent services provided by SIA is what attracts the consumers. They pay attention to fine details and consumers can enjoy different experience at the different cabins provided. Other than that, SIA also uses its pricing strategy. Using the different cabins provided, SIA allows consumers to decide for themselves whether they are willing to pay more for a fine experience or pay lesser and enjoy a normal service. However, the threat of the budget flights still remains. Consumers don't mind taking a bumpy flight with little or no services for a short trip (for eg from Singapore to Thailand). Thus, SIA decided to launch Tiger Airways so that they don't lose the market share of lower market. The last strategy that SIA uses is communication mix. They advertise themselves using air stewardesses in uniform in almost all the advertisements. This has made the 'Singapore girl' an icon. SIA uses strong branding management to create the image of a dedicated and professional brand. SIA built the brand with thoughts of innovation, best techonology, genuine quality and excellent customer service. They stayed through with their brand attributes and thus, won over many consumers' minds despite being the youngest fleet of aircaraft amongst all carrier.

Done by Yarasyimah and Phyllis