Marketing Strategy of Airbus – Airbus Marketing Strategy

The global aircraft maker is the leading manufacturer and designer of aircraft catering to the nations worldwide. With 11 production sites across the globe, it has emerged as the dominant player in the aviation industry making air transportation easy and safe.

Airbus is European multinational dealing in aerospace, defence and civil aircraft. Currently, it employs more than 1,40,000 in its different businesses across the globe.

Table of Contents

Segmentation, targeting, positioning in the Marketing strategy of Airbus –

It uses a mix of different segmentation strategies such as demographic, geographic, and psychographic strategies in order to cater to the customers of different nations.

Selective targeting strategy is used by Airbus as its different aircraft are meant for a different set of customers.

It has positioned itself as an Airline carrier offering a value-based aircraft which are technologically advanced, aesthetically designed, safe & secure and their related services.

SWOT analysis – Here is the SWOT analysis of Airbus.

Mission- “To meet the needs of airlines and operators by producing the most modern and comprehensive aircraft family on the market, complemented by the highest standard of product support”

Vision- “To create better connected, safer, and more prosperous world”

Tagline-“Making Flight possible”

Competitive advantage in the Marketing strategy of Airbus –

Innovation & Research and Development: It holds more than 3700 patents (data: 2015) globally, thereby investing 2702 mn Euros in 2015 which is 1.3% more than the year 2014. In the year 2015, it opened Biz labs for speeding the transformation of groundbreaking ideas into business value propositions.

Strong presence in meta-market products: As Airbus group deals in Aircraft, Helicopters and space technology business segments which help the company in leveraging the technological advancements and incorporating the same in the interrelated businesses.

BCG Matrix in the Marketing strategy of Airbus –

The group primarily deals in three businesses:

The Airbus -deals in passenger aircraft with a fleet of aircraft ranging from 100 to more than 600 seats. It stars in the BCG matrix as it is the main business of the group generating more than 70 % of the total revenue (45,854 million Euros out of 64450 Euros in 2015).

Airbus Defence & Space: Globally it is top 10 suppliers of defence and space aircraft and 2nd largest in space business worldwide generating revenue of 20% in the total business of the group and therefore is starred in the BCG matrix.

Airbus Helicopters: This division is niche segment which offers a modern range of helicopters meant for civil & military rotorcraft industry. This business of Airbus is starred in the BCG matrix since it is the global leader in the same.

Distribution strategy in the Marketing strategy of Airbus –

The largest player in the aerospace industry having a presence in more than 175 countries and working with more than 12000 suppliers globally has helped the company in getting 16,761 orders consisting 815 A300/ 310 aircraft, 12000+ A320 aircraft, A330/340/ 350 XWB and 319 A380s of the aircraft worldwide (2016 data).

Brand equity in the strategy of Airbus –

Having 57% market share in the industry it operates and serves all the airlines globally which helped the company in increasing its reach and in diversifying its businesses into interrelated products such as military Helicopters, aeronautics products & services.

Competitive analysis in the Marketing strategy of Airbus –

Being present in meta-market segments or product categories has not only helped the company in increasing its revenue by 6.4% in 2015 to 64.5 billion Euros but also helped it in emerging as a competitive player. It is 2nd largest space company, top 10 Defence Company & world’s no. 1 in helicopter manufacturing company.

It competes with companies like Boeing, Bombardier, Sukhoi etc. in the highly capital-intensive market.  

Market analysis in the Marketing strategy of Airbus –

Changing lifestyle, Increasing economic activities between the emerging nations, government regulations, increasing migrations of people, cargo activity, political stability and increasing demand for air travel in the commercial aircraft market are some of the factors shaping the aircraft market.

Out of the various nations globally, China and India are the 1st and 4th most important market based on (ADV) aircraft delivery value.

Customer analysis in the Marketing strategy of Airbus –

Customers of Airbus range from the Airline companies to the defence departments of various countries to space & research institution who have differentiated needs and Airbus provide them with the customised aircraft and technological support.