Air New Zealand (ANZ) is a New Zealand (NZ) based airline company and its main goal is to become the best in every target market by creating a workplace full of people who are committed to customers in a distinctively NZ way. In this marketing strategy analysis report, a brief background of ANZ will be provided, followed by internal and external analysis. Next, a SWOT analysis output will be conducted based on the information from the internal and external analysis. With the output from the SWOT analysis, a new product will then be developed and a three months marketing plan will be presented.
1.1 History of Air New Zealand
ANZ first appeared in 1940 under the name of Tasman Empire Airways Limited (TEAL) and began with its operations using short empire flying boats on trans-Tasman routes only. The routes became wider after the end of the Second World War when TEAL started to provide services to Auckland, Wellington and Fiji. TEAL renamed into Air New Zealand in 1965 and started offering trans-Pacific services to the United States of America and Asia. At first, ANZ was under the control of the NZ Government but it was privatized it in 1989. ANZ then went through a really tough time in the next decade; however, it recovered in 2001 due to the NZ$885 million rescue plan from the NZ Government. From 2001, ANZ was continuing to grow and returned to profitability in the following years. Unfortunately, the profits of ANZ dropped dramatically in 2009 due to the global financial crisis and the increased in oil prices.
2 External analysis
A number of external factors could affect our ability to achieve our strategic goals and objectives, so the analysis is of those factors, including customers, competitors, markets and environment, is very important.
2.1 Customer analysis
ANZ targets business as well as leisure customers. To improve its customer orientation, ANZ continues to invest heavily in long-haul products (like "Skycouch", new space seats in the premium economy class, mew ovens and so on) and the services including all international services (seatback on-demand digital entertainment) and new long-haul direct services (Auckland-Vancouver, Auckland- Shanghai and Auckland-Beijing) (Star Alliance nd). As a
result, the number of long haul passenger increased by 4.3% while the number of short haul passenger deteriorated by 1.7% in 2011 (Air New Zealand annual review 2011).
2.2 Competition analysis
Because of the high competitive pressure, which had caused Virgin Blue significant deficits, the company decided to withdraw its domestic operations from NZ in 2010. As a result, the market share of ANZ increased, and the competitive situation in the South Pacific market changed. Now the NZ market will become a duopoly (ANZ vs. Qantas/Jetstar) with ANZ holding 85% market share. However, Jetstar will continue to capture market share with the discount battle on domestic trunk routes, and they announced that they would grow the domestic NZ operations. Moreover, Qantas promotes operations in the domestic NZ market that attack some of the lucrative regional routes of ANZ (CAPA Centre for Aviation 2010). Therefore, domestically the main competitor of ANZ is Jetstar/Qantas.
2.3 Market analysis