M RahmanMarketing mix of Air Canada (7Ps of Air Canada)
This is a detailed analysis of the marketing mix of Air Canada. It explores the 7Ps (Product, Price, Place, Promotion, Process, People, and Physical Evidence) of Air Canada. It also examines how the airline has been using these marketing techniques to persuade customers to buy its services. Air Canada was founded in 1937. It is the largest airline in Canada, headquartered in Montreal.
Products and services of Air Canada
Air Canada’s flight services are generally divided into three categories i.e. Air Canada Signature Class/ Business Class, Premium Economy Class, and Economy Class. Signature Class is a luxury service where passengers can enjoy state-of-the art amenities, luxurious cuisine and unmatched services. This service includes dedicated check-in counters and speedy security clearance (Air Canada, 2020). On the other hand, Economy Basic is the lowest priced service of the airline which is offered on limited international flights only. It should be mentioned that most services of the airline accompany complimentary food and beverages.
Price and pricing strategies of Air Canada
Different cabin services come up with different prices. For instance, Signature Class is the most expensive service, whereas Economy Basic is the cheapest. This shows that Air Canada pursues differentiation pricing strategies. It should be mentioned that though the airline is the largest in Canada, it is not necessarily the cheapest in the domestic market. The ultra-low-cost providers in the country are Swoop and Flair Airlines (FlyForLess, 2020).
Place/distribution channels of Air Canada
Customers can book their tickets from the official website of Air Canada. Likewise, they can also use many third parties e.g. Skyscanner, Expedia, Kayak, etc. to book flights and other related services. Air Canada flies to 98 countries and regions to connect 210 airports (Air Canada, 2020). However, it should be mentioned that not all services are offered on all destinations. For instance, Air Canada Signature Class is available on European, Asian, Pacific and South American routes only. This shows that the airline pursues selective distribution strategies for some of its services.
Promotional strategies of Air Canada
Air Canada promotes itself by using several media platforms. For instance, it has a YouTube channel where it posts videos with a variety of information. However, it does not update videos regularly which is an area of improvement. Likewise, it has a limited number of subscribers too. On the other hand, it is posting more frequently on Facebook and has around 1.4 million followers. Similarly, it is active on Instagram as well and has around 890 thousand followers. It is worth mentioning that Air Canada often uses email marketing as well.
In addition to digital advertising and email marketing, Air Canada uses regular sales promotions as well. For instance, its promotion code sometimes offers passengers 20%-30% discounts. Likewise, being the largest in Canada, and the flag carrier has helped the airline build a very good brand image. Its CSR activities e.g. disaster relief aid for Canadian floods and Hurricane Dorian have also impacted positively on its brand image.
People of Air Canada
Air Canada is one of the best Diversity employers in Canada. It is also on of the top 100 employers in the country. Around 38,000 people of different walks of life work with the company (Francais, 2020). The airline also works with several charities to raise money for the communities it serves. However, it should be mentioned that customer satisfaction score is not that great for the airline (DeClerq, 2019).
Processes in Air Canada
Air Canada has streamlined its processes for employees as well as customers. Customers can book flights online on the official website, and some third-party sites as well. Likewise, they can use web, mobile, and airport self-service kiosk to check in. Air Canada uses a video assessment method as part of its recruitment process for some job roles.
Physical evidence of Air Canada
Air Canada has a nice logo. Though it has changed several times, it has always remained concise. The maple leaf has always been the focal point. Similarly, the airline’s official website is nice, and user friendly. However, some of the pages of the site show 404 errors which is not good for visitor experience.
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Last update: 17 October 2020
References:
Air Canada (2020) Air Canada, available at: https://www.aircanada.com/uk/en/aco/home.html (accessed 16 October 2020)
DeClerq, K. (2019) Study finds customer satisfaction with Air Canada has declined slightly, available at:https://toronto.ctvnews.ca/study-finds-customer-satisfaction-with-air-canada-has-declined-slightly-1.4443036 (accessed 10 October 2020)
FlyForLess (2020) Cheap Domestic Flights in Canada, available at: https://www.flyforless.ca/cheap-domestic-flights-in-canada.html (accessed 15 October 2020)
Francais (2020) Air Canada Releases Sustainability Report Highlighting Progress and Continued Commitment to Environmental, Social and Governance (ESG), available at: https://www.newswire.ca/news-releases/air-canada-releases-sustainability-report-highlighting-progress-and-continued-commitment-to-environmental-social-and-governance-esg–874826265.html (accessed 15 October 2020)
Author: M Rahman
M Rahman writes extensively online and offline with an emphasis on business management, marketing, and tourism. He is a lecturer in Management and Marketing. He holds an MSc in Tourism & Hospitality from the University of Sunderland. Also, graduated from Leeds Metropolitan University with a BA in Business & Management Studies and completed a DTLLS (Diploma in Teaching in the Life-Long Learning Sector) from London South Bank University.
