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1
2
PHILIPPINE AIRLINES
Vincent Raymond A Adriano
Edwina M Arceo
Vivian T Dabu
Maria Farrah Feliciano
Irish G Sanchez
3
COMPANY PROFILE PAL Holdings (PSE PAL) ndash holding company
part of a group of companies owned by
business tycoon Lucio C Tan
13th largest corporation in the Philippines in
terms of revenue and 21st largest in terms of
assets in 2005 Philippinesrsquo Top 500 Largest
Corporations
61st largest airline in the world in terms of
revenue passenger kilometers flown
Mission to serve as a partner in nation-building
4
COMPANY PROFILE February 26 1941 ndash established by a group of
businessmen led by Andres Soriano and former Senator Ramon Fernandez who served as its Chairman and President
March 15 1941 ndash airlinersquos first flight with a single (twin-engine 5-seater) Beechcraft Model 18 NPC-54 between Manila and Baguio
September 1941 ndash Philippine government invested in PAL paving the way for its nationalization
February 14 1946 ndash resumed operations after WWII interruption servicing 15 domestic points with 5 Douglas DC-3s
5
COMPANY PROFILE July 31 1946 ndash first Asian airline to cross the
Pacific Ocean with a chartered Douglas DC-4
ferrying 40 American servicemen to Oakland
California from Neilson Airport (Makati) with
fuelling stops in Guam Wake Island
Johnston Atoll and Honolulu
December 1946 ndash regular service between
Manila and San Francisco Designated as
the countryrsquos flag carrier
6
COMPANY PROFILE 1950s ndash founding of the countryrsquos own national
airline
1960s ndash first privatization with then PAL
Chairman Benigno Toda Jr acquiring a
majority stake in the airline
1970s ndash one airline policy under Marcos
government comprehensive modernization
program implemented
1980s ndash massive modernization of domestic
fleet
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
2
PHILIPPINE AIRLINES
Vincent Raymond A Adriano
Edwina M Arceo
Vivian T Dabu
Maria Farrah Feliciano
Irish G Sanchez
3
COMPANY PROFILE PAL Holdings (PSE PAL) ndash holding company
part of a group of companies owned by
business tycoon Lucio C Tan
13th largest corporation in the Philippines in
terms of revenue and 21st largest in terms of
assets in 2005 Philippinesrsquo Top 500 Largest
Corporations
61st largest airline in the world in terms of
revenue passenger kilometers flown
Mission to serve as a partner in nation-building
4
COMPANY PROFILE February 26 1941 ndash established by a group of
businessmen led by Andres Soriano and former Senator Ramon Fernandez who served as its Chairman and President
March 15 1941 ndash airlinersquos first flight with a single (twin-engine 5-seater) Beechcraft Model 18 NPC-54 between Manila and Baguio
September 1941 ndash Philippine government invested in PAL paving the way for its nationalization
February 14 1946 ndash resumed operations after WWII interruption servicing 15 domestic points with 5 Douglas DC-3s
5
COMPANY PROFILE July 31 1946 ndash first Asian airline to cross the
Pacific Ocean with a chartered Douglas DC-4
ferrying 40 American servicemen to Oakland
California from Neilson Airport (Makati) with
fuelling stops in Guam Wake Island
Johnston Atoll and Honolulu
December 1946 ndash regular service between
Manila and San Francisco Designated as
the countryrsquos flag carrier
6
COMPANY PROFILE 1950s ndash founding of the countryrsquos own national
airline
1960s ndash first privatization with then PAL
Chairman Benigno Toda Jr acquiring a
majority stake in the airline
1970s ndash one airline policy under Marcos
government comprehensive modernization
program implemented
1980s ndash massive modernization of domestic
fleet
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
3
COMPANY PROFILE PAL Holdings (PSE PAL) ndash holding company
part of a group of companies owned by
business tycoon Lucio C Tan
13th largest corporation in the Philippines in
terms of revenue and 21st largest in terms of
assets in 2005 Philippinesrsquo Top 500 Largest
Corporations
61st largest airline in the world in terms of
revenue passenger kilometers flown
Mission to serve as a partner in nation-building
4
COMPANY PROFILE February 26 1941 ndash established by a group of
businessmen led by Andres Soriano and former Senator Ramon Fernandez who served as its Chairman and President
March 15 1941 ndash airlinersquos first flight with a single (twin-engine 5-seater) Beechcraft Model 18 NPC-54 between Manila and Baguio
September 1941 ndash Philippine government invested in PAL paving the way for its nationalization
February 14 1946 ndash resumed operations after WWII interruption servicing 15 domestic points with 5 Douglas DC-3s
5
COMPANY PROFILE July 31 1946 ndash first Asian airline to cross the
Pacific Ocean with a chartered Douglas DC-4
ferrying 40 American servicemen to Oakland
California from Neilson Airport (Makati) with
fuelling stops in Guam Wake Island
Johnston Atoll and Honolulu
December 1946 ndash regular service between
Manila and San Francisco Designated as
the countryrsquos flag carrier
6
COMPANY PROFILE 1950s ndash founding of the countryrsquos own national
airline
1960s ndash first privatization with then PAL
Chairman Benigno Toda Jr acquiring a
majority stake in the airline
1970s ndash one airline policy under Marcos
government comprehensive modernization
program implemented
1980s ndash massive modernization of domestic
fleet
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
4
COMPANY PROFILE February 26 1941 ndash established by a group of
businessmen led by Andres Soriano and former Senator Ramon Fernandez who served as its Chairman and President
March 15 1941 ndash airlinersquos first flight with a single (twin-engine 5-seater) Beechcraft Model 18 NPC-54 between Manila and Baguio
September 1941 ndash Philippine government invested in PAL paving the way for its nationalization
February 14 1946 ndash resumed operations after WWII interruption servicing 15 domestic points with 5 Douglas DC-3s
5
COMPANY PROFILE July 31 1946 ndash first Asian airline to cross the
Pacific Ocean with a chartered Douglas DC-4
ferrying 40 American servicemen to Oakland
California from Neilson Airport (Makati) with
fuelling stops in Guam Wake Island
Johnston Atoll and Honolulu
December 1946 ndash regular service between
Manila and San Francisco Designated as
the countryrsquos flag carrier
6
COMPANY PROFILE 1950s ndash founding of the countryrsquos own national
airline
1960s ndash first privatization with then PAL
Chairman Benigno Toda Jr acquiring a
majority stake in the airline
1970s ndash one airline policy under Marcos
government comprehensive modernization
program implemented
1980s ndash massive modernization of domestic
fleet
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
5
COMPANY PROFILE July 31 1946 ndash first Asian airline to cross the
Pacific Ocean with a chartered Douglas DC-4
ferrying 40 American servicemen to Oakland
California from Neilson Airport (Makati) with
fuelling stops in Guam Wake Island
Johnston Atoll and Honolulu
December 1946 ndash regular service between
Manila and San Francisco Designated as
the countryrsquos flag carrier
6
COMPANY PROFILE 1950s ndash founding of the countryrsquos own national
airline
1960s ndash first privatization with then PAL
Chairman Benigno Toda Jr acquiring a
majority stake in the airline
1970s ndash one airline policy under Marcos
government comprehensive modernization
program implemented
1980s ndash massive modernization of domestic
fleet
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
6
COMPANY PROFILE 1950s ndash founding of the countryrsquos own national
airline
1960s ndash first privatization with then PAL
Chairman Benigno Toda Jr acquiring a
majority stake in the airline
1970s ndash one airline policy under Marcos
government comprehensive modernization
program implemented
1980s ndash massive modernization of domestic
fleet
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
7
COMPANY PROFILE
1990s ndash re-privatization and second
expansion
January 1995 ndash Lucio C Tan became the new
Chairman and CEO
1996 ndash US$4 billion modernization and re-fleeting
program aimed at making PAL one of Asiarsquos best
airlines in 3 years
1997 ndash rebranded itself as ldquoAsiarsquos sunniest airlinerdquo
commenced unprofitable routes (eg Manila to New
York via Vancouver)
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
8
COMPANY PROFILE 1998 ndash full impact of Asian financial crisis
aggravated by industrial action by its union
September 23 1998 ndash complete shutdown of PAL
operations the first Asian airline to do so and one of
the largest corporate failures in Philippine history
October 7 1998 ndash resumed operations with services to
15 domestic points out of Manila
December 7 1998 ndash submitted a ldquostandalonerdquo
rehabilitation plan to SEC
June 4 1999 ndash SEC approved the rehabilitation plan
after Lucio C Tan and his associates infused another
US$200M capital
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
9
COMPANY PROFILE 2000s ndash returned to profitability with
Php442M in its first year of rehabilitation after
6 years of heavy losses
Continued with restructuring (outsourcing of
maintenance and engineering division to LTP)
aggressive marketing strategies (rewards
programs and online booking) re-fleeting and
modernization and openingrestoring of domestic
and international destinations
October 4 2007 ndash released from receivership
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
10
COMPANY PROFILE IATA Operational Safety Audit
February 2007 ndash accredited by International Air Transport Association
Airline Turnaround of the Year 2007
November 2007 ndash granted by Centre for Asia Pacific Aviation for its strategic contribution to the aviation industry through a significant transformation by successfully restructuring its operations through innovative cost-cutting measures resulting in operating profitsrdquo
Most trusted airline brand for Filipino consumers
May 2010 ndash granted by respected international publication Readerrsquos Digest in its annual Asia-wide survey
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
11
COMPANY PROFILE 2010s
Continued re-fleeting and modernization
Labor disputes vs Outsourcing
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
12
PROBLEM IDENTIFICATION
The approaches that PAL has used to stay
competitive in the global airline industry
How service differentiation enables an
airline such as PAL to stay ahead in the
fight for market share
Does being first always translate into a
successful marketing strategy
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
13
A PAL APPROACHES Re-fleeting and modernization program
Addingrestoring international routes
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
14
A PAL APPROACHES
Strategic local routes
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
15
A PAL APPROACHES Refurbishing of its Domestic Terminal 2
and NAIA facilities ndash renovated Mabuhay Lounge
exclusive check-in counter for Mabuhay Class passengers
Express Counter
refreshment bar
medical clinic
expansive waiting lounge
two baggage carousels in the arrival section
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
16
A PAL APPROACHES Codeshare agreements as of February
2011
Cathay Pacific
Emirates
Etihad Airways
Qatar Airways
Gulf Air
Malaysian Airlines
Airphil Express
Garuda Indonesia
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
17
A PAL APPROACHES SLOGANS AND ADVERTISING
Mabuhay
Asias First Airline
Welcome Aboard the Philippines
Shining Through - concurrent with the slogan The beauty of the Philippines that heavily promoted Philippines as a tourist destination The TV advertisement clip won a finalist in Clio Awards
Pilipino Para sa Pilipino (Filipino for the Filipino)
On the Wings of Change
Asias Sunniest
With You All the Way
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
18
A PAL APPROACHES SLOGANS AND ADVERTISING
Its About Experience - introduced after its 60th Anniversary It attempts to highlight the fact that PAL is the first and longest-serving airline in Asia under its original name The slogan was also used in the airlines ad spot featuring Kevyn Lettau which incidentally featured her song Sunlight
Love at Thirty Thousand Feet is the de facto theme song of the airline It was composed by Jose Mari Chan and is still being used today The song has many variations including a version for the PALs Swingaround tour package advertisement
Clearly no 1
With us Youre always no 1
Asias First Shining Through - introduced for PALs 70th anniversary it combines two previous PAL slogans Asias First Airline and Shining Through
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
19
B SERVICE DIFFERENTIATION Legacy airline - being the known flag carrier in the
past having carried past Presidents of the country it augurs well to Filipinos abroad who are coming home for a visit or for good after long absence
Availability and accessibility - with codeshare partners as well as presence in 31 international and 29 domestic destinations
Comfort and style - Filipinos are very particular with ldquostatus symbolrdquo ldquocomfortrdquo and the perks that comes to with the ldquostatusrdquo
Mabuhay club members perks and benefits
2 classes Mabuhay (business) and Fiesta (economy)
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
20
B SERVICE DIFFERENTIATION TRAVELERSrsquo AMENITIES
Mabuhay lounges
Seating comfort ndash more leg room and space to
recline
Meals and beverages
LCD television screen showing actual time
altitude temperature estimated time of arrival
and others
State-of-the-art inflight entertainment systems
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
21
C BEING FIRST = SUCCESSFUL
MARKETING STRATEGY ldquoThe re-fleeting program enabled PAL to be
dubbed as the first airline in the world to operate the full range of new-generation Airbus aircraftrdquo
PAL is an example of a company that have tried to be first in service and product innovation but failed due to many factors
One factor is acquiring too many aircrafts while matching them with unprofitable routes
Union activism and employees discontent aggravated this
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
22
MARKET ANALYSIS AIR TRAFFIC DEMAND FROM PHILIPPINES
(domestic amp International)
Year OampD Passengers Change Market Leaders
2010 27886183 116 Philippine Airlines (323)
Cebu Pacific (298)
2009 24997378 93 Philippine Airlines (351)
Cebu Pacific (289)
2008 22862890 117 Philippine Airlines (355)
Cebu Pacific (243)
2007 20473663 115 Philippine Airlines (352)
Cebu Pacific (211)
2006 18369474 84 Philippine Airlines (361)
Cebu Pacific (157)
2005 16946099 - Philippine Airlines (388)
Cebu Pacific (141)
Source IATA BSP (January 2010 ndash December 2010)
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
23
IDENTIFICATION OF ALTERNATIVES
Product - fly in style and comfort Fiesta (Economy) class
Pricing - vs budget fares
Promo or seat sale
Process - online booking
People - labor unrest
Outsourcing and restructuring
Communication - advertising
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
24
CRITICAL ISSUES LOW-COST CONCEPT OF BUDGET AIRLINES
From Manila to LAXLASSFO
Web fares from Manila to Las Vegas Los Angeles or San Francisco
PAL-Hilton Cebu Promo
Avail of our irresistible package promo in Cebu and stay at world-
renowned Hilton Cebu Resort and Spa Valid for sale and travel from 15
September 2010 until 31 March 2011
Special Web Fares ndash Calendar Pricing
All-year-round special fares when you book online
Regular Buy One Take One
Enjoy our buy one take one offers on Mabuhay (Business) class for
selected routes Available for sale at any PAL Ticket office
PAL Corporate Sales
Special perks and added convenience for our corporate clients courtesy
of PALs Corporate Sales unit
Domestic Fares
We offer special discounts for specific individuals
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
25
CRITICAL ISSUES SELF-SERVICE TECHNOLOGIES ndash online
booking service that accepts ticket purchases
and credit card payments for all flights
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
26
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
in-flight catering to SkyKitchen Philippines
airport (cargo handling) services to Sky Logistics
call center reservation operations to ePLDT Ventus
downsize medical IT and HR units
Results Savings and improved employee-per-aircraft ratio
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
27
CRITICAL ISSUES OUTSOURCING AND RESTRUCTURING
Effects
retrenchment of some 2600 employees
help reduce its accumulated net losses and deficit
brought about by surging fuel prices
the ban of its entry into 27 European Union member-states and
the suspension of its remittance facilities by the International Transport Association
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
28
ANALYSIS
Aside from the news briefings PAL has no
aggressive marketing strategy to combat
the negative issues besetting it
labor unrest and its effects on its flight schedules
performance and commitment
affordability and accessibility of its flights
on time arrivals and safe travel
positive image of its Chairman and CEO and
corporate social responsibility
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
29
RECOMMENDATIONS
LEGACY AIRLINE FSC and not LCC
Improve on this distinction
Be involved in promoting the Philippines as a
tourist destination
Be involved in the efforts of the government to
assist distressed OFWs and calamity-stricken
countries
Continue its CALL FOR EXCELLENCE
campaign to serve its market better
Operational efficiency
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
30
REFERENCES 1 Philippine Airlines httpenwikipediaorgwikiPhilippine_Airlines
httpenwikipediaorgwikiAirline
wwwphilippineairlinescom
httptourism-philippinescomphilippines-airlines-review
httpwwwskyscrapercitycomshowthreadphpt=859722
httpwwwcentreforaviationcomnews20100903philippine-airlines-struggling-as-cebu-pacific-becomes-largest-carrier-in-the-philippinespage1
2 Marketing Management- An Asian Perspective httpwwwpearsoned-asiacommarketingmanagement asia
2homehtml
3 Differentiation Strategies Differentiate Your Product Differentiate Yourself
httpwww1000venturescombusiness_guidedifferentiation_ strategyhtml
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
MABUHAY
31
Atty Vivian T Dabu
Marketing for Managers
Ateneo-Regis AGSB Clark
ian8dabuyahoocom
