The problem situation

AtlanticaAirways isoneof the world's largestandoldestairline services spreadover70 countries in Europe,NorthAmerica,SouthAmericaandAustralia.Theairlines started in theyear1985 inCanada, andwithin4yearshadexpandedtothewholeofNorthandSouthAmericas.Intoday'sdate,ithas23% marketshareindomesticairlineswithinUSA.

AtlanticaAirwaysis5star-ratedairlinesduetoitsconsistentlyhighstandardsofstaffservicedeliveryin onboard and airport environments. It has been listed in the Fortune 500 companies at the 292nd position.Overthepast3yearsthough,itwaswitnessedthatithasbeenlosingitsgroundinthemarket shareespeciallyintheinternationalairways.Henceacommitteewasappointedtolookintothereasons ofthisfallandthefollowingreasonswerepointedoutbythecommittee:

  • Despiteall thecomfortand the luxuryprovidedbyAtlantica, its flightsareoverpricedandcan onlybeaffordedbycorporate firmsandcelebrities.Otherairlinecompanieshaveall launched cheapflightoffersfortheircustomers.
  • AtlanticaAirwayshasalwaysbeenknownfor itsroyaloldEnglishfeel in itsflights. Inafamous dialogue between Canadian president and United Kingdom's PrimeMinister, the latter was quoted to have said "Atlantica is like a tribute to our Queen from your side". But over the past few years a change in policy was done, to make it appear more like a corporate workplace as was the case with other airlines, which was not appreciated by its customers.
  • Theairline suffers froma lackof innovation in itsmarketing strategywithalmostno schemes andoffersthroughouttheyear.Thecompanyhasfailedtoattracttheyouthtouseitsservices. In the 2008-09 survey, the average age of person using Atlantica for travelwas 56. Also, its policyovertheyearshasnotallowedittocollaboratewithtourismcompanies,whichhashurtit alot.
  • The absence of Atlantica in Asia has hurt it the most. According to a statistic, India's internationalairtravelincreasedthreefoldinthepast8years,whileChina'sairtraffichasgrown consistentlygrownatratemorethan10%annually.Withcorporateandindustrialboominthese countries, other airlines have moved to these places, and consequently around 15% of the customershavestartedusingotherairlines. ThecommitteesuggestedthefollowingsuggestionsforrestoringthemarketshareofAtlantica:-
  • Providing services in Asia as soon as possible startingwith China and India and thenmoving towards South East Asia and Central Asia. This plan needs to be completed before the CommonwealthGames2010 inDelhitostartwithhugeprofit.Thecompanyalsoplanstogive cheaper airfare to sportspersons from countrieswhere Atlantica is present, by collaborating withtherespectivecommittees/boardsofsports.
  • StartinganewservicenamedAtlanticaLitewhichischeaper.Thisserviceismorerecommended for Indian andChinesemarkets. Initially thiswillworkunder the supervisionofAtlantica and thenwillseparatetooperateasanewairlineservice.CompanywillneedtobrandAtlanticaLite differentlyfromAtlantica.
  • RestoringtheRoyalOldEnglishfeelabouttheairlines.
  • A change in policy allowing both Atlantica and Atlantica Lite to have collaborationswith the tourism industry. Also more offers, schemes and competitions should be there for the customers.

The report of committee was discussed in ameeting of Board of Directors. They concluded by agreeingtolaunchAtlanticaLite,thenewcompany,whichwilloperatebothinthedomesticaswell asthe internationalmarkets, in Indiaby January2010.Lateron,byseeingtheperformanceof the new company, even Atlantica will be launched in India. A complete plan was chalked out, with deadlinestolaunchAtlanticaLiteandAtlanticainvariouspartsofAsia.

ThecompanyhasapproachedyoutodothebrandingofAtlanticaLite.Theyhavemadeitclearthat the whole advertising campaign should be such that nobody considers it a subsidiary under Atlantica. The company has given you the freedom to design the campaign and some of the suggestionsofthecommitteemightbeoverlooked.Theyhaveaskedyoutodomarketresearch in Indiaandcomeupwiththefollowing:

  1. IntroductoryScheme:Thecompanywantsthisschemetospeciallyattractyoungcrowdtouse itsservicesandhasalsoaskedyou todo researchonsimilaroffersbyotherairlinesand their resultsandhowyourofferwillbebetterthananyoftheotherexistingoffers.
  2. OfferofSportsCommittees:SinceCWGisapproaching,thecompanywantstocashinbigtime. Thecompanyhasaskedyoutoprepareaschemeforsportscommitteessothattheywoulduse theirservices.

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