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Assess the likely importance of its market positioning to the success of a business, such as Emirates. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 1
Question 1
Assess the likely importance of its market positioning to the success of a business, such as Emirates.
Worked Solution & Example Answer:Assess the likely importance of its market positioning to the success of a business, such as Emirates. - Edexcel - A-Level Business - Question 1 - 2017 - Paper 1
Step 1
Market positioning is an effort to influence consumer perception
Answer
Market positioning aims to shape how customers view a brand or product in comparison to competitors. For Emirates, this involves establishing a high-end perception through superior service and quality offerings. By differentiating their airline as premium, they tap into a lucrative market segment willing to pay more for added value.
Step 2
Emirates aims to position itself in the higher price/higher quality end
Answer
By investing in high-quality aircraft and exceptional customer service, Emirates effectively communicates its premium brand image. This strategy attracts affluent travelers who prioritize luxurious experiences over cost, thereby increasing profit margins.
Step 3
Positioning is important for differentiation
Answer
Emirates’ positioning helps distinguish it from competitors like British Airways or low-cost airlines. Customers who place value on service might prefer Emirates due to its reputation and high service standards, making them less price-sensitive.
Step 4
Potential challenges in market positioning
Answer
However, it is essential to recognize that market positioning in the airline industry is susceptible to external economic factors such as recessions or security issues. These could shift consumer priorities away from luxury toward more practical considerations such as ticket prices and convenience.
Step 5
Significance of ticket price and consumer budget
Answer
For many consumers, particularly families, ticket prices can represent a large portion of their travel budget. Thus, while positioning is critical, it must be balanced against practical considerations, such as travel costs and the convenience of scheduling.