Marketing Audit for Boeing

Marketing Management 586 Spring 2006 By: James Parker, Kellie Logan, Sally Wencel, Barry Corum, Jeff Thul

History of the 787 Dreamliner

Started assembly in 2006. Designed due to declining air travel after the attacks on September 11, 2001. Increase fuel costs

The 787s Features

The 787s Features

The 787s Production Process

Boeings new streamlined production process.

The Macroenvironment
Global population growth in developing countries. Increase in average life expectancy in western civilization. Increase of disposable income in developing countries.

The Macroenvironment
World Trade Organization (WTO) litigation between U.S. and Europe Response to customer wants and needs Energy and material conservation Increasing world wide demand for commercial airlines.

The Macroenvironment

20 Year Market Potential

The Macroenvironment
Competition
Airbus Industries of Europe
Formed in 1970 From a Fledgling to a Formidable Opponent Since 2000 Airbus has been the number 1 in sales In 2005, achieved a 51% share of global market

Market, sales, and delivers to end user.

The Macroenvironment
Differences between Boeing and Airbus
Airplane size Point-to-Point vs. Hub-to-Hub
Its more accurate to say that we have two distinct views of the market. We believe that airlines ultimately respond to what passengers want more opportunities to fly where they want to go, when they want to go. Randy Basler VP Marketing

Boeing SWOT Analysis

Strengths
Innovation and Technical Expertise Strong reputation of quality and industry leadership Long-standing customer relationships International customer base Supplier-Component Manufacturer Networks Commercial Aircraft is one of six business divisions

SWOT Continued
Weaknesses
Development Costs for new products: $8-10 Billion Reliance on Suppliers-Component Manufacturers (both strength and weakness)

Opportunities
New technologies to build lighter, longer range aircraft New airline customers in Asia and Pacific market Airline travel pattern changes supporting Boeing product line

SWOT - Continued
Threats
Aggressive Airbus Price Discount Practices
WTO dispute regarding EU subsidies

Changing economics
Domestic airline bankruptcies

Changing governments, politics and business partners based in those countries

Example: Dubai Port management controversy

Air travel vision could be wrong

Mission Statement
The Commercial Airplanes segment is involved in developing, producing and marketing commercial jet aircraft and providing related support services, principally to the commercial airline industry worldwide.

Market Strategy
Three prong strategy
Establish international partners in production Use light weight materials Develop new midsized aircraft

Sales department overhaul What are the results?

Market Strategy Payoff

Confirmed Orders

Marketing Productivity
Objective: Profitability Expects to earn almost 57% of the revenue for the 787 Competitor: Airbuss A350

Marketing Function Audits

Product Line Objective Program to replace 737 Derivatives R Us Price: 737 lower than A350 Differentiating their product

Marketing Function Audits

Differentiating their product Central themes of advertising
Technology Cost Effectiveness

International Air Show Randys Journal

www.boeing.com/randy/

Scott Carson