Growth Rate of the Aircraft Manufacturing Industry
According of FAA Aerospace Forecasts, the number of commercial aircrafts is expected to grow from 7,626 in the year 2006 to 11,203 in the year 2020 with an average annual growth rate or 2.8% or 256 aircrafts (FAA Aero space, 2007, p. 14)
Trends in the Aircraft manufacturing Industry & Its effects on the industry
Of these the number of passenger jets in the mainline carrier fleet, in this period, would on an average increase by an average of 163 aircrafts per year to reach a total of 6,041 in 2020. The number regional jets has been forecasted to increase on an average by 3.4 % from 1,687 in 2006 to 2,689 in 2020. The turbo-piston aircraft is however expected to decline from 1056 in 2006 to 1,005 in 2020. The cargo jet aircrafts are projected to increase by 23 aircrafts per year, the narrow-body aircrafts are projected to decline by 4 aircrafts a year, and the wide-body jet fleet i.e. the Airbus A-380 segment is projected to increase by more than 37 aircrafts a year. (FAA Aero space, 2007, p. 15)
The demand for the business jets have been seen to increase over the past couple of years and this trend is expected to continue in the coming decade. Hence a demand for micro-jets is expected to rise in this period. The year 2005 saw a new type of aircraft “light sport aircraft”. Looking at the number of aircrafts being registered, the number of this type of aircrafts is projected to rise rapidly. (FAA Aero space, 2007, p. 16)
Boeing Company: Key Competitors
Following are they Key Competitors of Boeing:
1.Lockheed Martin Corporation – The Company’s aeronautic division manufactures military aircrafts and related technologies. Some of the products of the company are: “F-35 Joint Strike Fighter, the F-22 air dominance attack and multi-mission combat aircraft, the F-16 multi-role fighter, the C-130J tactical transport aircraft, and the C-5 strategic airlift aircraft” (Yahoo Finance, 2007, para 1)
2.European Aeronautics Defense and Space Company EADS N.V. – EADS has been formed by combing the following companies: The Daimler Chrysler Aerospace or DASA and Aerospace Matra from France, and Construcciones Aeronicas SA or CASA from Spain (Yahoo Finance, 2007, para 1)
3.Airbus S.A.S. – This is the world’s #1 commercial aircraft manufacturer. Some of the aircraft manufactured by the company are the A318, A319, A320, A321 of the single aisle type and A300, A310, A330, A340 of the wide body type. (Yahoo Finance, 2007, para 1)
4.Northrop Grumman Corp.- The company manufactures various types of aerospace systems for the US Government (Yahoo Finance, 2007, para 1)
5.General Dynamic Corp.- The airline division of this company manufactures business-jet aircraft for various clients like private individual, government agencies and corporations (Yahoo Finance, 2007, para 1)
6.GE Aviation – The company is world’s largest engine manufacturer for military and commercial airplanes (Yahoo Finance, 2007, para 1)
Marketing Mix
Product
This paper focuses on the Boeing Corporation’s aircraft products. The aircrafts produced by this company are the commercial jet aircrafts for the airline industry. The company manufactures aircrafts for 100-500 passengers. The products of the company include the following aircraft types: 737, 747, 767, 777, and 787 Dreamliner.
Price
The pricing strategy that Boeing, when it enters is new market is to use the penetration pricing strategy i.e. use low cost combined with better quality of products. This strategy was immensely successful in making the 737 family a well known name outside the US market. (Cavallone, Cassia, & Zappella, 2007, p. 5) A strategy that proved to be a failure however was that reduction of prices for the entire fleet at a time, and terming it as a sale. The repercussion of this was. Northrop and EADS captured strong market shares which were previously held by Boeing
Placement
As mentioned above, Boeing has different families of products for different market segment. Each of the family is placed in a different category. For instance 737 is aimed towards smaller and low cost airlines, 747 has a presence with almost every major airline, 767 and 777 are aimed towards airlines flying international and long distance etc.
Promotion
Aircraft manufacturing industry is a B2B business segment. The cost of products is huge while the numbers of products sold are less. The company regularly participates in fairs where its products are displayed. In addition to this the company also participates in indirect marketing by publishing its technical achievements in various technical fests via news and print media.
Works Cited
Online Articles
Cavallone M, Cassia F, Zappella C, 2007, International g Mix, 8th October 2007,
http://www.unibg.it/dati/corsi/6489/21318-4.%20The%20International%20M-Mix%20-%20Product%20and%20Pricing%20Strategies.pdf
Websites
“Commercial Airplanes”, 2007, Boeing, 8th October 2007,
<http://www.boeing.com/commercial/products.html>
“FAA Aerospace Forecast Fiscal years 2007-2020”, 16th March 2007. FAA-US
Department of Transportation,. 8th October 2007,
Pages taken from Yahoo Finance
Yahoo Finance. 2007. Yahoo Inc. 8th October 2007, <http://finance.yahoo.com/ >
“Airbus S.A.S Company Profile”. Yahoo Finance. 2007. Yahoo Inc. 8th October 2007,
<http://biz.yahoo.com/ic/40/40566.html >
“European Aeronautic Defense and Space Company EADS N.V. Company Profile”,
Yahoo Finance. 2007. Yahoo Inc. 8th October 2007, <http://biz.yahoo.com/ic/101/101208.html>
“GE Aviation Company Profile “.Yahoo Finance. 2007. Yahoo Inc. 8th October 2007,
<http://biz.yahoo.com/ic/57/57976.html>
“General Dynamics Corp.”, Yahoo Finance. 2007. Yahoo Inc. 8th October 2007,
<http://finance.yahoo.com/q/pr?s=GD>
“Lockheed Martin Corporation”. Yahoo Finance. 2007. Yahoo Inc. 8th October 2007,
<http://finance.yahoo.com/q/pr?s=LMT>
“Northrop Grumman Corp.”. Yahoo Finance. 2007. Yahoo Inc. 8th October 2007,
<http://finance.yahoo.com/q/pr?s=NOC>
