Product Strategy Of The British Airways:

Product Strategy of the British Airways

1.1 Introduction to product strategy

Product is the most important component in an organization. Without a

product there is no place, no price, no promotion, and no business.

Product is anything that can be offered to a market to satisfy a want

or a need. It is the core ingredient of the marketing mix and is

everything favorable and unfavorable, tangible and intangible received

in the exchange of an idea, service or good (Kotler 11th edition,

2003). British Airways is a business offering service products,

flights across destinations, in the transportation industry. Service

is an intangible product involving a deed, performance or effort that

cannot be stored or physically processed, were customers directly

participate in the production process.

Product strategy is therefore very vital for the organization's

success. It needs to be developed and manage very careful in order to

be successful. British Airways product strategy includes flight

services, quality of flights, various destinations across Europe and

the world, executive class, business class, speed, security, support

facilities and years of experience. It provides the basic product and

various alternatives to satisfy all the different customer needs.

1.2 Product Levels

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If we have a brief look at Kotler's five-product levels theory, there

are five products levels in regards with the quality and the

expectation of the customers and each level adds more value to the

customer (Kotler 11th edition, 2003).[1]

1. At the beginning is the core benefit, the fundamental service or

benefit that the customer really buying. The most fundamental level is

the core benefits; what the customer really buys. In British Airways

customers buying flight tickets to satisfy their basic need which is

to flight from one destination to another.

2. The second level is the basic product, were customers book their

seat on a schedule flight to a particular destination. British Airways

flies to the busiest airports in Europe in 95 different cities and to

58 other destination across the world. It is by far the busiest

Airways company in the world operating a big number of airplanes

3. The third level is the expected product in other words the

condition buyers expect when the purchase their tickets. In British

Airways customers expect to have an allocated seat, meals and drinks,

on board entertainment good service, in contrast with Easy-Jet were

customer just buy a ticket with no allocated seat and without on board

service of food and drinks.

4. The fourth level is the augmented product that exceeds customer

expectation. The augmented product is the extra services that British

Airways provides and the support facilities. It has three different

executive classes for different needs: the blue, the silver and the

gold. For the member of the silver and gold there are executive

lounges in all the main airports where customers can relax away from

the noise and eat something or even have a shower and go to the gym.

Customer from the first class can even enjoy an on board sleep in

their own bed seat. For busy people were time is money British Airway

offers great services to eliminate any time lost.

1.3 Adding value to the customer (the augmented product)

In the product development a key factor is the company's positioning

in order to choose the best possible strategy. British Airways has

positioned it self as high standard, high quality airline and it's the

leader in its category. Thus the strategy that follows it is not stop

at the expected level but continues with emphasis to the augmented

product level. British Airways does not only concern for the core

product, but it pays a lot of attention to the augmented product as

well. It tries to satisfy all the different customer needs and

expectation from an economy class to the business and the first class

providing various services. It has different lounges for the first

class customer and an on-board menu for the food and wines than it has

for the economy class. British Airways offers business class seats,

blue / silver or gold card for frequent fliers and executive lounge at

all main airports. It also provides customers with free food and

drinks on flights and very good service. It has as well