Strategic Marketing Management of Turkish Airlines

1. Introduction

A comprehensive marketing plan for Turkish Airlines, particularly focusing on its services, product differentiation, target markets and customer segments is vital to ensure its survival against the existing services provided by its competitors - British Airways, Pegasus Airlines and Easyjet.

The objective of this strategic marketing management plan is to further develop Turkish Airlines market share in summer 2010 and winter 2010/11 period through marketing programs and initiatives. The task undertaken begins with overview of the company, its products for the worldwide market and competitive advantage. In order to better understand where Turkish Airlines should focus its strategic marketing management campaign and how it should differentiate its product several analyses are made. The report also looks at the airline internal strengths and weaknesses through SWOT analysis and identifies the airline external operating environment through PEST analysis. Marketing promotions highlighted in this strategic marketing management plan serve to increase market share in the short term while the advertisements seek to increase product and brand awareness in the long term. Finally, the report will be concluded with an overall summary of the company situation, market share and evaluation of its future marketing activities.

2. General Description of Turkish Airlines

THY – Turkish Airlines, Inc. is the national flag carrier airline of Turkey, headquartered in the Turkish Airlines General Management Building on the grounds of Atatürk Airport in Yeşilköy, Istanbul. It operates scheduled services to 128 international and 39 domestic cities (38 domestic airports), serving a total of 167 airports, in Europe, Asia, Africa, and the Americas. The airline's main base is at Atatürk International Airport, with secondary hubs at Esenboğa International Airport, Sabiha Gökçen International Airport, and Adnan Menderes Airport. In 2006, 2007, 2008 and 2009, THY carried 17 million, 19.7 million, 22.5 million, and 25.1 million passengers with total revenues of US $2.23, US $3.0, US $4.5, and US $4 billion, respectively. THY has been selected by Skytrax as providing the best economy class food services in the world and as Europe's Fastest Growing Airline. According to 2010 data, Turkish Airlines is Europe's 3rd best and Southern Europe's best airline. The airline has more than 15,000 employees. THY has been a member of the Star Alliance network since 1 April 2008. Turkish Airlines is in talks with JAT of Serbia to establish a new company instead of JAT Airways that is in debt. Turkish Airlines is currently an official sponsor of FC Barcelona, Manchester United F.C., Maroussi Basketball Club and the Turkish Airlines Euroleague Basketball. The airline also has an endorsement deal with Kobe Bryant and 2010 tennis season No.1 Caroline Wozniacki has become the new face of Turkish Airlines Business Class and Comfort Class until 2014 and in the PTT Thailand Open.

History of THY

1930s 1940s: Early years

Turkish Airlines was founded under law no. 2186 in ANKARA under the name “STATE AIRLINES ADMINISTRATION" as a department of the Ministry of Defence. State Airlines Administration, now Turkish Airlines, started operation with five aircraft and 23 seating capacity on August 1933.

The Fleet in 1933

2 King Bird (5 seats) 2 Junkers F-13 (4 seats) 1 Tupolev ANT-9 (10 seats)

In 1938, the name was changed to "General Directorate of State Airlines" and was operated under the Ministry of Transportation

In 1945, DC-3 aircraft joined the fleet

In 1947, the first international flight was held between Ankara and Athens via Istanbul.Under the control of Adil Gozender and Orhan Ayata,The DC-3 aircraft registered as TC-ABA took off from Ankara in the morning at 10.00 to Athens after making transfer in Istanbul.The journey last 2 hours and 40 minutes totally.