Low Cost and Scheduled Airlines Case Study Example | Topics and Well Written Essays - 1000 words

first gear Cost and Scheduled Airlines - Case Study ExampleThe core benefit of this service is that its a cheaper course to jaunt and it began in the USA of importly to say a low cost structure compared to the competitors. Their master(prenominal) aim is to have the last-place cost structure and they charge for the food stageed during the flight. The true(a) crossing includes the packaging, branding, quality, features and design. The low cost airlines are a service so it does not have packaging save branding is subjective for any company to instigate brand loyalty and to attract customers. Branding is essential to create last brand equity in the market since the more powerful and valuable a brand is the more leave alone increase the market share. Quality can be an issue in this case because all they provide is a safe flight and food that might not be up to higher standards. When they do not provide passenger services then quality is of motion here but pile mainly come to them for cheap fares and they are not concerned with the former(a) services. These airlines provide single passenger class only. Finally, the augmented product includes delivery, warranty and later on sales services. low gear cost airlines deliver at cheap prices without much of services to attract the masses and they do not provide much of the after sales services but the delivery of the product is equal to the expectations of the consumers since they indigence cheap fares.On the other hand, scheduled airlines are e... e core benefit of this service is the alternative of traveling in comfort with innumerable choices to be in luxury and bliss, plus it also allows people to travel on a cheaper price compared to business class and it provides lesser services or choices to travel in luxury. They charge enough on the ticket to provide food and other luxurious services. The actual product is about branding without which these airlines can not survive and make a name in the market. They need high brand equity to achieve a huge market share. They have to maintain good quality to maintain high brand equity. The augmented product is about delivery and after sales services. They deliver according to the customers expectations and they do give after sales services like gondola service on landing in the destination. The PriceThe low cost airlines provide low fares. Their main pricing goal is current profit maximization. In this case they estimate what demand and costs will be at different prices and they choose the best option to attract more customers and earn high profits. But they also aim to achieve market share leadership through lowest costs, lowest prices and highest long-run profits. They have mainly stressed on competition base pricing that is setting prices based on what the competitors charge. The main aim is to have a lower cost structure compared to competitors in order to attract more customers.The scheduled airlines provide expensive fares that ran ge between business class and saving class. These airlines have product quality leadership as their main pricing goal. They charge high prices to spine high performance quality and other costs. These airlines have value-based pricing approach that is setting prices based on the buyers perceptions of value rather than on sellers cost.