Etihad Airways Market Segmentation

MARKET SEGMENT

Market segmentation refers to process of dividing a market, using certain criteria, into sub-groups that have similar needs, in order to understand and identify what would appeal to them and make decisions based on the results. Some criteria would include demographic data (age, social class, etc) behaviors; preferences etc. and understanding them would make it efficient and effective for an organization to meet its goals. It also benefits the organization by strategically allocating funds to support and develop market. One important tool that can be used to gain this data is through Etihad’s loyalty program – Etihad Guest. In an interview with ‘The National’, the chief executive of Etihad stated that the loyalty program sector

This is evident in how the majority of the airline’s customer base consists of business class passengers, making them the primary target audience. These customers are offered exceptional services, such as comfort, in – flight connectivity services etc. based on the their needs such as privacy and access to technology.

The secondary target audience would be the tourists and leisure travelers. Although an important customer base of the airlines, their experience would be considered up to par with the level of excellence, however their needs would be different, for instance they would focus more on the in – flight entertainment services and are more sensitive to costs.

SWOT ANALYSIS

STRENGTHS

• The geographical position of the United Arab Emirates is a major advantage as it is convenient for passengers to transit through Abu Dhabi to their final destination

• As one of the leading airlines worldwide, Etihad’s brand exposure is not only well reputed, it is recognized regionally, and internationally.

• Etihad Airways benefits the most during its peak seasons.

• UAE’s economic sectors are all interconnected therefore Etihad brings more business to the city and that contributes to the nation’s economy.

• Extensive coverage network

This gave the member countries (UAE) access to large amounts of capital that they were able to invest into diversifying their economies, one industry being aviation.

As a result, the rapid growth and stability of Emirates Airlines allowed Abu Dhabi to withdraw from Gulf Air and establish its own airline - Etihad Airways, leaving Bahrain as the sole owner of Gulf Air.

CONCLUSION

Since its inception in 2003, Etihad airways has come a long way in such a short period of time. Against its competitors, the various awards it has coveted especially in becoming a Skytrax 5 – star airline reflecting the kind of nation the UAE is. Their strive for excellence combined with their incorporation of their cultural values have made a statement to the airline industry and the world.

Since all economic sectors in the UAE are interconnected, the establishment of Etihad airways has greatly increased business, exposure, jobs, income, tourism, trade etc in the UAE and the GCC