A Study On Low - Cost Aviation Marketing Strategy Based On Dual - Brand Operation

As far as concern the development of the aviation industry in the world, the low-cost carrier (LCC) has become one of the trends. In recent years, Asia has been experiencing rapid development in LCC. Since many foreign LCC have entered China, it has had a huge impact on the Chinese traditional airlines. In response to the impact, China Eastern Airlines (CEA) must develop LCC business. As a traditional airlines, the development of LCC must adopt dual-brand strategy.Jetstar Hongkong Airlines is established recently as a joint venture of CEA and Australia Qantas Airlines (AQA). It is the first one of China state-owned airlines who operate LCC. How to strike a balance between traditional airlines and LCC, which occupy their own market segments to develop independently and achieve synergies?This article is written based on the theoretical research framework of Marketing Management, in Which CEA and Jetstar Hongkong is used as the object of study and a research is conducted to look into their marketing activities. The first half part of the article is an overview of the world’s aviation industry, the development of low-cost aviation and explores the CEA’s dual-brand strategy. The second half focus on Jetstar Hong Kong’s marketing strategy. The first step is to is to compare the marketing environment of Jetstar Hongkong, which included focusing on the assessment of the macro-market, the industry’s competitive environment, consumers’needs and the strategies of competitors. Using the Porter5Forces Analysis, it is found out that there is strong industry competition between various budget airlines. The second step taken is to examine the internal resources, the competitive advantages and disadvantages of Jetstar Hongkong. The research outcome help us in identifying the corecompetitive strengths of Jetstar Hongkong, namely, the ability to stimulate the market, the ability to control cost and the ability to plan flight schedules,etc. The third step is to introduce new viewpoints through the use of SWOT Analysis:In order to ensure further growth and development, the best strategy for Jetstar Hongkong is to build convenience flight net-work by right of CES and AQA. The fourth step involves evaluating the marketing strategies of Jetstar Hongkong, which include market segmentation, target choice and market positioning. The fifth step involves analyzing the marketing mix of Jetstar Hongkong, which consists of Product strategy, Pricing strategy, Distribution Channels, Promotion. In this case, the research results does reveal the core competitivity is lying in the constructing of flight net-work.Lastly, the conclusion of CEA’s dual-brand strategy and Jetstar Hongkong’s marketing strategy is put forward. Also, an analysis is given on the development potential of budget airlines in China. The conclusions raised are intended to be used by budget airline companies and the industry as forms of reference.