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Egypt Air Strategic Marketing Plan

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Page 1: Egypt Air Strategic Marketing Plan
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satisfaction

It is no longer

enough to satisfy

customers. You must

delight them.

It is more important

to do what is

strategically right

than what is

immediately

profitable.

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-EGYPTAIR is the world-famous, national airline of Egypt, based in the

city of Cairo.

-Over 75 years, has experienced,When EGYPTAIR started operation on 7th May 1932.

-Its 2 aircraft carrying 4 people between Cairo and Alexandria.

-In 1960 it was the first in the Middle East and Africa to use the Comet C-4 jets.

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-Currently, EGYPTAIR has73 aircraft serving 85 destinations in 60 Countries with over 1200 weekly flights.

-The airline has stakes in

%) 60(Air Cairo

%) 20(Smart Aviation Company

%) 100(Air Sinai

-

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-In 2004, EgyptAir became the first IOSAcertified airline in Africa. In 2006.

-Egypt Air rated as a "3 Star Quality Certified Airline".

-In 2007, EgyptAir's passenger traffic increased by 21% to 7.8 million passengers.

-In 2008, EgyptAir's passenger traffic increased by 6% to 8.2 million passengers.

-EgyptAir became the 21st member of Star Alliance in a ceremony held in Cairo on 11 July 2008.

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Transport and travel to specific destinations.

Transportations and planes.

: Prepared them with

planes

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Defining Target Market Needs, Wants,

Demand

SEgmenTIng

TaRGeTIng

PosITioning

Marketing Research

Marketing Mix 7Ps

Product

VarietyQualityDesignFeatursBrandPackagingSizeServicsWarranyReturn

Price

Price ListDiscounsAllowancesPaymentCredit

Place

ChannelsCoverageAssortntLocationInventoryTranspot

Promotion

PromotionAdvertsingSales ForcePublic relationDirect marketing

People

Competence

ReliabiltiyCaring

AttitudeGoodwill

Process

Customer focus

IT supportExperien

ce perflghtInflight

postflight

Physical Evidence

On ground

In flight

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Marketing research in the early days, to increase sales than to understand customers

Over time, marketers increasingly recognized the importance of understanding buyers, Focus groups, questionnaires, and surveys.

According to an old Spanish saying, “To be a bullfighter, you must first learn to be a bull.”

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A Five Steps Process

Define the Problem &Research objectives

DevelopThe research

plan

Collect the information

Analyze the information

Present thefindings

Evalioute

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What information do I need?

Actually we was asking about both the Advantages & the Disadvantage .

Why do I need this information?

We need that information so we can Investments for the advantages , and find Solutions for the disadvantages.

Define the Problem &Research objectives

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DevelopThe research

plan

Data Sources

ResearchApproaches

ResearchInstruments

SamplingPlan

ContactMethods

Designing the Research plan calls for decisions on:

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Data Sources

InternalSources

ExternalSources

Customer Services

BookingServices

CustomersWeb

Reports

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while I was at the Egypt Air Travel Agency, I watched a situation .. A customer was upset becouse of ignorying him and late to book a ticket becouse of problem at the reservation program system

ResearchApproaches

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They all gathering on they have Delay situation with the Egypt airlines.

No enough places for hand-bages.

Lies.

Very old plane.

The uncomfortable , Stains and Trash.

Monitors bad quality.

Research

Approaches

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Unfriendly crew

Food and Services below Star Alliance standard.

No seat allocation even though I have been confirmed by the agent

Unorganized process

The plane was dirty

Bad Image.

Business seats 45⁰ with no leg support legroom was quit poor to put a laptop

Lights didn’t work.

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Crew appeared tired and upset.

Lavatories dirty and bad.

Entertainment system 10 years old.

Crew was smoking on board.

Passangers askes ,crew ignored

It was cold and no enough blankets.

They had a problem with their computer booking system.

Windows seats.

No one said thank you or good bye

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It’s cheap.

Hours magazine

Staff were good with family

The best pilot

ResearchInstruments

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We appled the research with around

25 passangers and 2 travel agency

SamplingPlan

PassangersTravelAgency

Probability Where sampling error could be measured • Cluster Random Sample

(Area)

Non Probability

When cost & time in Probability sampling is high

• Convenience Sample (Accessible)

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ContactMethods

Arranged Interviews

Intercept Interviews

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Collect the information

Analyze the information

Present thefindings

Evalioute

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1. Star Alliance.2. Direct distenations.3. Features.4. Capital.5. Government Company.6. The best pilots

1. Personals.2. Services3. Delay.4. Technical problems.5. Image6. Aircraft

1. New distenations.2. Tourism attractions.3. Market shar4. Event.5. Economy crises.6. Social rules7. Social Club

1. Other Companies.2. Weather forcast.3. Natural crises.4. Privatization

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Our vision is to reflect our external appearance

Of the Egyptian civilization , progression and culture expressing about Egyptian role for The

World Nations.

To Cearte value for our customers through present a full life on our planes and enhance the relashinship between the customers and

our employees to serve them better.

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Internal & External

Enhance & Enlarge

Increase & Growth

Increase staff motivation& Professionalism.

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Market segmentation:

- Who

- What

- How

- When

- Where

- why

Effective segmentation:

1-Measurable

Africa 8m, asia 58m,

Europe 74m, N.A 101m,

S.A 24m.

2-substantial

3-accessible

4-differentiable

5-actionable

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According to regions as they differ in habits, needs and

languages.

Income (classes)

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Segment attractiveness:

Economic class

-is profitable

-have large size

-have low risk

-have huge market.

Company’s objectives:

Economic class will

obay our bjectives in the future.

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Egyptair market coverage strategy:is concentrated marketing.

Airplanes services are offered to:1-domestic distinations2-africa: e ,w ,n & s 3-asia: c , e , s , se, sw4-europe 5-north america

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M1 M2 M3

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Types of Product :

Our Product is more than a Services.

Customer

Segmentat

ion

Market

Selection/

Focus

Targeting

Value

Positioning

Product

Developm

ent

Service

Developm

ent

Sourcing

Making

PricingDistributing

Serving

Sales

Force

Sales

PromotionAdvertising

Choose the Value Provide the Value Communicate the Value

Value Creation and Delivery Sequence

Strategic Marketing Tactical Marketing

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The current aircraft of Egypt Air 73 planes, comparison between the other Airline,the squadron of Egypt Air need supporting ,we planing to reach the aircraft force to 223 planes through the next 10 years.

So …. We thought we can support our aircraft by two ways :

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1- Buying 9 new plane a year, this new aircraft will have a remarkable features,They will be the types of Boeing 777 & Boeing 737 which will allocated to the International Journey or Trips.

2- Buying 6 planes of Embraer 1000 & Embraer 190 for the domestic trips and for the new branch of Egypt Air.

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The new aircraft will ramarkable with a special features which will make Egypt Airline one of the top ten Airlines in the world.

the Helium Seats will coverd with a nutural soft leather and that will make the passengers feels like they rest on air .

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( Cabins & Special Seats ) we will have a new Unique Furniture :

The cabins will have a privacy and many equipments like DVDs, handfree and mic etc …

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The seats will provide with 180⁰ expand and electronic tools

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Sleep Cabins for the very long destinations, Also it will have Helium bed , and all the relaxing equipments.

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The new aircraf must provided with Satellite Internet Wireless for busniess operations.

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The new aircraft will have An Operating System

so the passengers can make a phone calls for anywhere they want , and we gonna make a

( Telephone Cart System )

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(Restaurant on Plane) we will make a movement restaurant for every flight , which will remarkable with it variety and delicious foods

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We gonna devote a part of the new planes for sleep cabins for the long destinations,So the passengers can sleep comfortably and even don’t feel that they are travelling.

The sleep cabins must contain a very comfortable Helium beds with DVDs and Luxury tools.

At first this Class will be 20% of the new planes at the first stages.

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The first class on the new planes will divided into two seats types ( Cabins & Seats ) they will be able to stretch to 180⁰ with a privacy spaces.

Every seat will have a DVD screen and remote control,even there is a control panel on every seat.

The DVD screen will announce at first the Safety

Instructions, It will have an information about the destination,after that he can watch several channels (( News, Animals, Business, Entertainment … etc ))

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Also we gonna have the latest Movies from different cultures, So he can make a choice.

Every seat will have a brochure for the destination where he go , and he can take it with him after fligh

Many different magazines, papers and books

And will have a mic and handfree to enjoy listening the music

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The busniess class is higher than the economy class and lower than the first class

The busniess class also will divided into two kinds : Seats & Cabins both of them will enjoy with satellite internet wireless, So they can follow their busniess ,

Also the seats will enjoy with DVDs,brochures,180⁰ seats and medial level of luxury.

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we will have an economic class but not an economic class it will improve and develop class.

We will provide it with DVD screen and a comfortable seats with 180⁰ dgree to extand.

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Accirding to the current economic situation by the reason of financial crises, IATA announced that the airlines demand will have asharp decline becouse of that crises.

So we thought that we can establish .. .. ..

( Egypt Air Economy Airlines )

We will dedicate 16 planes at first to serve that new company, the first stage this company will serve the Domestic & The Middle East destinations, untill the company become 40 planes or more, after that it can the other

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Destinations in all over the world, and we will develop those old 10 planes and prepare them to be in a good shap and good services.

The new palnes of embraer 1000-190 will divided into two 3 levels :

It will have all the facilities of the luxury egypt air business class with the internet and Helium seats.

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It will be between the business class A and the economy class, but will enjoy with business facilities with internet.

Will be sheep & clean and suitable for a new economy class.

Actually we gonna use our new economy company to support the Hajj and Minor Hajj

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The food and beverage gonna divided to different levels up to every class

We will improve our food services with a better quality.

The first class will serve by the best and delegious food and beverage we can present which make the passangers will enjoy having meals.

Even the busniess & economy class will have a good quality of food and beverage and they can make a choise from a variety menus.

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Babies will enjoy travelling with us . We will divide the babies into to ages stages

• Babies between 4 to 12 years will dedicate a place to them prepared to have fun and play.

• Even they could have a kids books to read with their family, and animation movies for them.

• Babies under 4 years will set up a special seats for them to be close to their mamas,and special toys and tools for them.

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A rescue crew trained well on how to save the passangers at the dengerous situation with the rescue tools.

With the rescue crew on the plane we must have a medical care crew to make sure of our customer care and health , which will be trained well about all the hard condetions could happened.

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We designed a part of the plane to show our offering on the plane where the passanagers can make a shopping

It will began with a nerrow limitation nad if it makes a good processing , we will enlarge it to be a full shopping services.

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PRODUCT

IMPROVEMENT

PRODUCT

DEVELOPMENT

MARKET

DEVELOPMENT

PRODUCT

Differentiation

Existing Product

NewProduct

NewMarket

ExistingMarket

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P.Kotler: Watch the product life cycle,but more

important watch the market life cycle.

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Egyptair market objectives:

market share

High lowest price

price quality

leadership

high price

expensive R&D.

market positioning

Market

Leader

Quality

leader

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LE 15 occasions LE 10 LE 15

LE 10

50 150

100 105

quantity per price quantity per price

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: max. current profit& market share

: from the past.

: fixed, variable, total & average cost.

: use markup pricing method.

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Upon value: 1st,business & sleep classes

upon cost :2nd& economic classes.

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Advertising Sales Promotion PR Personal Selling Direct MarketingPrint ads Contest, games Press release Sales Presentation CatalogsBroadcast ads Lotteries Speeche Sales Meetings TelemarketingBillboards Gifts eminars Incentives EmailDisplay sign Samplin Sponsorship Trade Shows TelPackaging-outer Trade Charities FaxPackaging-insert Rebate Events Mailings Motion Pictures Coupons Co. Magazine E-shopping Brochures Low-interest-finance Lobbying Point-of-purchase-display

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Print and broadcast ads Brochures and booklets Posters and leaflets BillboardsDisplay signs Symbols and logos Internet

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Premiums and gifts

Fairs and trade shows ( Dubi )

Exhibitions

Coupons

Rebates

Low-interest financing

Entertainment

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Build image

Handle crisis

Media coverage

Authentic and credible

Wide reaching

Can be dramatic

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Sales presentations

Sales meetings

Incentive programs

Fair and trade shows

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Sales promotion

ترويج المبيعات

Personal Selling

البيــع الشخصى

Advertising

Public Relations

العالقات العامة

Introductionمرحلـة تقديم المنتج

Growthمرحلة نمو المنتج

Maturityمرحلـة النضج والتشبع

Declineمرحلة االنحدار

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AfricaAlgeria

Cot D'ivoireEritreaGhanaKenyaLibya

NigeriaSouth AfricaSudan

TanzaniaTunisiaUganda

AustralasiaAustralia

Hong KongIndiaJapanKorea

MalaysiaPakistan

PhilippinesSingapore

Taiwan

Thailand

EuropeAustriaBelgiumCyprus

DenmarkFrance

GermanyGreece

HungaryItaly

NetherlandsPolandRussiaSpain

SwedenSwitzerland

TurkeyUnited

Kingdom

Middle EastBahrain

IraqJordanKuwait

LebanonOmanQatar

Saudi ArabiaSyria

United Arab Emirates

Yemen Arab Republic

North & South

AmericaArgentina

Brazil CanadaU.S.A.

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Abu Simbel - Abu Simbel Airport

Alexandria - Alexandria International Airport

Assiut - Assiut Airport

Aswan - Daraw Airport

Cairo - Cairo International Airport Hub

Hurghada - Hurghada International Airport

Luxor - Luxor International Airport

Marsa Alam - Marsa Alam Airport

Marsa Matruh - Mersa Matruh Airport

Sharm el-Sheikh - Sharm el-Sheikh International Airport

Sharq Al-Owainat - Sharq Al-Owainat Airport (operated by EgyptAir Express)

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BCG Matrix – Growth Share Matrix

High

High

Low

Low

Relative Market Share

Problem Children

DogCash Cow

StarMarketGrowthRate

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Competitive Advantage

High

High

Low

Low

Relative Cost

Outstanding Success

Maintain Cost advantage

Hope for market growth

Maintain SpecialtyDegreeofDifferentiation

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Tendency to Buy

Undifferentiated

Well-Known

Unique

Un-known

Product Characteristics

You have it made

Sales, Advertisingand Branding are keys

Focus differentiationRequired (Product/Price)

Promotion & Sales, Distribution are key

Customer knowledge of Company

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Distribution Channel types & levels

Consumer Marketing Channels

Egypt Airlines

ConsumerEgy Air Channels

Egy Air Channels

Travel Agency

Zero Level Channel (Direct Marketing)

One Level Channel

Two Level Channel

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Company

Wholesaler

Retailer

Customer

Company

Wholesaler

Retailer

Customer

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People are the most important element of any service or experience. Services tend to be produced.

so the attitude, skills and appearance of all staff need to be first class.

Competence

Reliability

Caring Attitude.

Responsiveness.

Initiative

Problem Solving ability

Goodwill

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Training.All customer facing personnel need to be trained and developed to maintain a high quality of personal service. Training should begin as soon as the individual starts working for an organization during an induction. The induction will involve the person in the organization's culture for the first time, as well as briefing him or her on day-to-day policies and procedures. At this very early stage the training needs of the individual are identified. A training and development plan is constructed for the individual which sets out personal goals that can be linked into future appraisals

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Customer ServiceMany products, services and experiences are

supported by customer services teams. Customer services provided expertise (e.g. on the selection of financial services), technical support(e.g. offering advice on IT and software) and coordinate the customer interface (e.g. controlling service engineers, or communicating with a salesman). The disposition and attitude of such people is vitally important to a company. The way in which a complaint is handled can mean the difference between retaining or losing a customer, or improving or ruining a company's reputation. Today, customer service can be face-to-face, over the telephone or using the Internet. People tend to buy from people that they like, and so effective customer service is vital. Customer services can add value by offering customers technical support and expertise and advice.

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Decision to make trip

Check inBages, seats, passport

Select carrier

Passport control

Make reservations

Wait for flight

pay

Process to gate

Documentation

Board to gate

Conirmation

Board aircraft

Travel to airport

Stow hand baggage

Site down

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Fasren seat belt

Safety demonstration

Basic inflight amenities:

-Audio/Video-Seats

-Pillows,blankets-Toilets Shopping

Transfer activitiesInformational

announcements

Inflight diversions:-Newspapers

-Games for kids-Food

-Movies-Audio

-Medical help-physical exercise

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Land

Transit stop airport

Take off again

Arrive at destination

Disembark Book next flight

Leave Airport

Customs

Bag retrieval

Immigration

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Booking offices

Paper work

Barnd logo

Tickets

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Air craft

Seats

Good inner , exteriors

Cleanliness

Uniforms

Ambience

Baggage

Labels or tag

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A Difference is worth establishing to the extent that it satisfies the following criteria:

Important

Distinctive

Superior

Communicable

Preemptive

Affordable

Profitable

Highly valued benefit to buyers

The difference isn’t offered by others or the company offer it in a more distinctive way

Superior to other ways of obtaining such benefit

Visible to buyers

Difference cannot be easily copied to competitors

Buyer can afford to pay the difference

The company will find it profitable to introduce the difference

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Product

• Features Characteristics that supplement the product’s basic function

• Performance QualityThe level at which the product’s primary characteristics operates

• Conformance QualityDegree to which produced units are identical & meet promised specs

Service

• Customer trainingTraining customer employees

Tools for competitive Differentiation

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Tools for competitive Differentiation

Personnel

• Competence Required skill & knowledge

CourtesyFriendly respectable & considerate(they know how)

• CredibilityTrustworthy(No broken promise)

ResponsivenessRespond quickly to request & problems

Communication

Channel

• Coverage

• Performance(star – public)

Image

• Identity Vs ImageIdentity is the ways that the company aims to identify itself or position its product.Image is how the public perceives the company or its products

• SymbolsTriggers company or brand recognition (Brand Logos)

• Written & audiovisual MediaConvey a storyline or mood or a performance level

• AtmospherePhysical space in which the company produces or delivers its products

• EventsThe company could build an identity through the type of event it sponsors

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