1. 1 10 STEP Marketing Plan for CEBU PACIFIC AIR Sheilanor C. Turingan June 2011 http://sheilanorturingan.blogspot.com

2. This 10 Step Marketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes. Disclaimer http://sheilanorturingan.blogspot.com

3. Steps 1 to 5Cebu Pacific targets budget travelers Cebu Pacific’s travel base is the price-conscious young travelers. PTM wants more travel which may mean less comfort. Direct competitors are Airphil, ZestAir, SEAir and PAL. Opportunity of bringing air travel closer to more Filipinos. Market size for domestic passengers is 16M. http://sheilanorturingan.blogspot.com

4. Discount Carriers is the Name of the Game Cebu Pacific offers year-round Low Fares, has more domestic destinations. Promo fares are the lowest, yet regular fares are more expensive. Cebu Pacific has captured worldwide audience through its website. Booking at your fingertips! Cebu Pacific dominated the market through its Low Cost Strategy. http://sheilanorturingan.blogspot.com

5. 1. Cebu Pacific’s travel base is the Price-Conscious Young Travelers 21-35, Male of Female, Class AB and C1 (Upper Middle Class), Single or Married Young/ starting professionals, Junior executives who want to travel for leisure and are price-conscious They usually travel on long weekends and holidays and who prefers less comfort and more travel. http://sheilanorturingan.blogspot.com

6. PTM wants more travel which may mean less comfort Ability to Travel is a “status” symbol Satisfies the need to belong Traveling with family, friends and colleagues Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler 6 http://sheilanorturingan.blogspot.com

7. 2. PTM wants low fares!!! Traveling with family, friends and colleagues satisfies the need to belong Traveling has become a status symbol, satisfying the esteem needs Price-conscious travelers choose Cebu Pacific over any other airline because of its promotional seat sale for most of its international and domestic routes. They demand value for their money, yet chooses thrift over luxury. http://sheilanorturingan.blogspot.com

8. 3a. Direct and Indirect Competitors Direct: AirPhil, Zest Air, PAL, SEA Air Indirect: WG&A Philippines, Negros Navigation, Sulpicio Lines, Inc., MBRS Lines, Viva Shipping Lines, Bus Lines Variables: Price, Purpose, Flight Frequency, Routes, Accessibility http://sheilanorturingan.blogspot.com

9. 3b. Cebu Pacific dominates the Low Cost Carrier Industry as of 2011 http://sheilanorturingan.blogspot.com

10. as of 2011 3c. Cebu Pacific’s Competitive Positioning Low cost, Great Value! http://sheilanorturingan.blogspot.com

11. 4. Cebu Pacific’s Low Fare, Great Value Strategy Cebu Pacific changed the landscape of the domestic airline industry through its LOW FARE, GREAT VALUE STRATEGY Because of competition, other airlines such as AirPhil, Zest Air and SEA Air were forced to cut fares and offer promos. Traditional Positioning was based on luxury, reliability. http://sheilanorturingan.blogspot.com

12. 4. Cebu Pacific’s vision: It’s time everyone flies!! Cebu Pacific pioneered in creative pricing strategies, as it manages to offer the lowest fare Cebu Pacific has fulfilled its vision of effectively bringing air travel closer to more Filipinos Cebu Pacific continue to dominate the industry as it increases flight frequency and invest in modern and efficient aircraft. http://sheilanorturingan.blogspot.com

13. 5a. Market Size for Domestic Passengers is 16M data source: http://www.centreforaviation.com http://sheilanorturingan.blogspot.com

14. 5b. Cebu Pacific’s Market share is 48.2% data source: http://www.centreforaviation.com http://sheilanorturingan.blogspot.com

15. 5b. Cebu Pacific’s international traffic growth is 39.7% Cebu Pacific international air traffic growth http://sheilanorturingan.blogspot.com

16. 5c. Consumer data indicatesmarket size of P91.504B Average travel per consumer = 3 Leisure – 2x a year Business – 1x a year Yearly Airfare cost – 3 * P5,719 * based on average price comparison Total Industry 16M * 5,719 = P91.504B http://sheilanorturingan.blogspot.com

17. 5c. Average all-in domestic fare is P5,719.00 Average fare: 5,719.00 http://sheilanorturingan.blogspot.com

18. 5. Competitor’s Domestic Market Share is 47.399B Competitor data= 47.399B Company data = 44.105B Customer Usage data = 91.504B http://sheilanorturingan.blogspot.com

19. 6a. Cebu Pacific’s routes 260 flights daily 16 International Destinations 33 Domestic Destinations http://sheilanorturingan.blogspot.com

20. 6a. Cebu Pacific has more domestic routes 33 18 11 24 http://sheilanorturingan.blogspot.com

21. 6a. Cebu Pacific’s websitehttp://www.cebupacificair.com http://sheilanorturingan.blogspot.com

22. 6a. Competitors’ Website http://www.zestair.com.ph/ http://sheilanorturingan.blogspot.com

23. 6a. Competitors’ Website http://www.airphils.com/ http://sheilanorturingan.blogspot.com

24. 6a. Competitors’ Website http://www.flyseair.com/ http://sheilanorturingan.blogspot.com

26. Earlier booking gets the lower fares

27. Options for prepaid baggage at the time of booking (15,20,25,30 kg) http://sheilanorturingan.blogspot.com

28. 6b. Cebu Pacific’s Promotional Seat Sale http://sheilanorturingan.blogspot.com

29. 6b. Cebu Pacific’s Tour Packages http://sheilanorturingan.blogspot.com

30. 6b. Cebu Pacific’s On-Time Performance Global Standard 77% Internal Standard 85% http://sheilanorturingan.blogspot.com

32. Price endings of “8” or “9” – 488, 588, 888, 1099, 1499

33. Options for add-ons – insurance, prepaid baggage, seat selection

34. Earlier booking (6 months to 1yr) means lower fareshttp://sheilanorturingan.blogspot.com

35. 7. Cebu Pacific’s Airfare is one of the most expensive! http://sheilanorturingan.blogspot.com

37. Low fares only during promos/odd days/forward booking (6mos-1yr)

38. Promotional sale almost every month with limited seats and limited time.

39. No-frills fares, other services provided as an option – food, blanket

40. Expensive regular fares to counter promo fares.http://sheilanorturingan.blogspot.com

41. 8a. Which of these modes does your product use?** Pls. rank most used, 1-highest use 1 3 2 4 5 http://sheilanorturingan.blogspot.com

43. Announcement on leading newspapers

44. Social networking sites: Facebook, Twitter, Youtube

45. Enewsletter for Seat sale alerts

46. Press releases

47. Word of mouth from passengershttp://sheilanorturingan.blogspot.com

48. 8a. Cebu Pacific’sPromo Announcements http://sheilanorturingan.blogspot.com

49. 8a. Cebu Pacific has captured worldwide audience through its website http://sheilanorturingan.blogspot.com

50. 8a. Cebu Pacific’s Facebook Page Cebu Pacific Air Company 241,848 people like this http://sheilanorturingan.blogspot.com

51. 8b. Follow Cebu Pacific on Twitter! http://sheilanorturingan.blogspot.com

52. 8b. Cebu Pacific generates 10M views on YouTube Dancing Female flight attendants http://youtu.be/Lqh8e2KYIrU http://www.youtube.com/watch?v=Lqh8e2KYIrU http://sheilanorturingan.blogspot.com

53. 8b. Cebu Pacific’s Press Releases: The airline with flying colors WWF Award Changi Award: ISO 9001:2008 Certificate: Marketing Communication Effectiveness Awards 2007 http://sheilanorturingan.blogspot.com

54. 8b. Cebu Pacific’s Online Press Releases CEB breaks 1M passenger record in one month CEB flies 2.8 million passengers in Q1, posts 12% increase CEB pilot best in the country; wins Airline Pilot of the Year award CEB website most popular travel site in the Philippines http://sheilanorturingan.blogspot.com

55. 8d. Competitor’s PromoAir Philippines http://sheilanorturingan.blogspot.com

56. 8d. Competitor’s PromoZest Air http://sheilanorturingan.blogspot.com

57. 8d. Competitor’s PromoPAL http://sheilanorturingan.blogspot.com

58. 8d. Competitor’s PromoSEAir http://sheilanorturingan.blogspot.com

60. Trademark low fares are being anticipated by budget travelers.

61. The only airline who can provide the lowest fares and can fly the most passengers to the most destinations most frequently.http://sheilanorturingan.blogspot.com

63. Call center for Manila and Cebu offices

64. Nationwide ticketing offices

65. Partner Sales Agents

66. CEB Biz for Corporate & Government Sales

67. 3rd party Sales Outletshttp://sheilanorturingan.blogspot.com

68. 10. Cebu Pacific’s winning strategy: LOW COST PRODUCER Low Cost Producer Supply and Distribution Leverage Differentiation Niche http://sheilanorturingan.blogspot.com

69. 10. Cebu Pacific’s winning strategy: LOW COST SERVICE Low Cost Producer through efficient operations: - youngest fleet, average of 2.5 yrs – less maintenance - E-ticketing – paperless ticketing - expanding network – increased flight frequency, more routes, more destinations - less comfort, more travel as more travelers choose thrift over luxury http://sheilanorturingan.blogspot.com

70. 49 SUMMARY http://sheilanorturingan.blogspot.com

71. Steps 1 to 5Cebu Pacific targets the budget travelers Cebu Pacific’s travel base is the price-conscious young travelers. PTM wants more travel which may mean less comfort. Direct competitors are Airphil, ZestAir, SEAir and PAL. Opportunity of bringing air travel closer to more Filipinos. Market size for domestic passengers is 16M. http://sheilanorturingan.blogspot.com

72. Discount Carrier is the Name of the Game Cebu Pacific offers year-round Low Fares, has more domestic destinations. Promo fares are the lowest, yet regular fares are more expensive. Cebu Pacific has captured worldwide audience through its website. Booking at your fingertips! Cebu Pacific dominated the market through its Low Cost Strategy. http://sheilanorturingan.blogspot.com

73. 10 STEP Marketing Plan for CEBU PACIFIC AIRReferences http://www.philippines-travel-guide.com/ferry-list-philippines.html http://www.slideshare.net/lenilynne/go-lenilynne-v53-10-step-marketing-6946834?from=ss_embed http://loqal.ph/business-and-finance/2010/02/09/budget-carriers-boost-rp-airline-industry-growth/ http://www.bworldonline.com/Research/populareconomics.php?id=0188 http://www.mb.com.ph/articles/297732/cebu-pacific-air-targets-fly-12-million-passengers-2011 http://www.mb.com.ph/articles/261113/cebu-pacific-now-rp-s-largest-airline-terms-passenger-flown-q1 Domestic Airline Research by Canda, Flores-Gaspar,Guevarra, Turingan Zhou Xue “Vicky www.cebupacificair.com/ http://sheilanorturingan.blogspot.com

74. 53 10 STEP Marketing Plan for CEBU PACIFIC AIR Sheilanor C. Turingan June 2011 http://sheilanorturingan.blogspot.com