British Airways

Paper Summary:

This paper outlines a marketing plan for the European Passenger Business of British Airways (BA). BA's communications strategy to date is reviewed and new objectives and targets to be achieved over the next year are set, in order to increase brand awareness and a loyal customer base. BA's current situation and strategy is analyzed and the key problems and areas of weakness that need to be addressed are identified.

From the Paper:

"However, events over the past three years (both internal and external) have hit profit margins and damaged the brand's reputation and image, which have impacted sales. The Future Size and Shape plan was developed and implemented in 2002 to restructure the business and reduce costs, in order to achieve profits. Associated reductions in employee numbers amount to around 15,000. However, employee dissatisfaction has grown, with unions threatening strike action on an annual basis (August bank holiday weekend 2003 and 2004). Most recently this culminated in 100 flights being cancelled at Heathrow, partly due to staff shortages, which was estimated to have cost BA 10m. Press coverage has been highly negative partly fuelled by BA's poorly planned compensation offer (free flights to some employees, whilst customers have to apply for their money back). BA's share price (see figure 1) has been affected by these developments, in addition to external factors such as fuel price rises."

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