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Boeing Selling a Dreamliner

Essay by   •  March 21, 2012  •  Case Study  •  6,264 Words (26 Pages)  •  6,402 Views

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Boeing 787 Dreamliner

Q1 . Discuss the nature of the market structure and demand for the dreamliner. What are the implications of this for boeing and its customers?

Ans.The market structure for the Dreamliner is that of an oligopolistic nature which means there are few aircraft manufactures who sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft.

The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, "It's not just an evolutionary step...it borders on revolutionary." This statement is supported by many industry insiders. (Kotler & Armstrong, 2010, p188) With such support, the emotions of the airline companies jumped at the chance to place an order even with the understanding that the estimated time for delivery was at least 4 years and there was little research to support some of the added luxury amenities.

Q2. What examples of the major types of buying situations do you see in the case? Discuss the implications of each in terms of marketing strategy.

Ans. There are 3 major types of buying situations that we see in this case and they are straight rebuy, modified rebuy, and new task.

1. Straight Re-Buy : Straight rebuy is the process that occurs when a consumer makes another purchase of the identical goods in the identical amount under the identical terms from the identical supplier. Consumers that often engage in a straight re-buy of a product are an attractive target group for the marketing efforts of a manufacturing business.

2. Modified Re-Buy : Modified rebuy is a buying situation were an individual buys goods that have been purchased previously but changes either the supplier or some other element of the previous order like the producers of luggage.

3. New Task : New task is a business buying situation in which the buyer purchases a product or service for the first time.

Q3. List the specific features of the Dreamliner. What customer benefits result from each?

The specific features of the Dream Liner are that it is 60 percent quieter than other planes in its class and the interior is designed to reduce long-haul flying misery and to better imitate life on the ground. It also features more legroom, has lightening that auto adjust erito different time zone shifts, there is higher cabin pressure and humidity, making the flying experince more comfortable and reducing common flying symtoms such as Headaches, Dry mouth and Fatigue. The Dream Liner also boasts the largest ever overhead storagebins. The Dreamliner also has 19-inch self-dimming windows, wireless internet and entertainment systems.

The cockpit of the 787 is also loaded with tech toys that will enhance safety and cut departure delays. The advances includes a system that self-monitors the plane's vital function and reports maintenance requirments to ground-based computer systems.

Boeing 787 Dreamliner

Q1 . Discuss the nature of the market structure and demand for the dreamliner. What are the implications of this for boeing and its customers?

Ans.The market structure for the Dreamliner is that of an oligopolistic nature which means there are few aircraft manufactures who sell large quantities to its buyers. With Boeings biggest competitor Airbus unable to compete with the Dreamliner product, Boeing has the chance to take over the market for commercial aircraft.

The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline travel, the demand for the Dreamliner will increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that will increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, "It's not just an evolutionary step...it borders on revolutionary." This statement is supported by many industry insiders. (Kotler & Armstrong, 2010, p188) With such support, the emotions of the airline companies jumped at the chance to place an order even with the understanding that the estimated time for delivery was at least 4 years and there was little research to support some of the added luxury amenities.

Q2. What examples of the major types of buying situations do you see in the case? Discuss the implications of each in terms of marketing strategy.

Ans. There are 3 major types of buying situations that we see in this case and they are straight rebuy, modified rebuy, and new task.

1. Straight Re-Buy : Straight rebuy is the process that occurs when a consumer makes another purchase of the identical goods in the identical amount under the identical terms from the identical supplier. Consumers that often engage in a straight re-buy of a product are an attractive target group for the marketing efforts of a manufacturing business.

2. Modified Re-Buy : Modified rebuy is a buying situation were an individual buys goods that have been purchased previously but changes either the supplier or some other element of the previous order like the producers of luggage.

3. New Task : New task is a business buying situation in which the buyer purchases a product or service for the first time.

Q3. List the specific features of the Dreamliner. What customer benefits result from each?

The specific features of the Dream Liner are that it is 60 percent quieter than other planes in its class and the interior is designed to reduce long-haul flying misery and to better imitate life on the ground. It also features more legroom, has lightening that auto adjust erito different time zone shifts, there is higher cabin pressure and humidity, making the flying experince more comfortable and reducing common flying symtoms such as Headaches, Dry mouth and Fatigue. The Dream Liner also boasts

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