The primary goal for a successful marketplace initiative is the identification of the targeted population to solidify the brand identity to secure brand equity. In doing so, the marketing segmentation creates a winning strategy that adapts to the changing marketing trends. The supply and demand matrix presents a corporate paradigm for the senior management team to effectively implement decision making to structure the business interests. Therefore, the Boeing Company and Airbus Company outlined a strategy that at times proved to express successful and other times damaging to the core initiatives of the company.
Over the years of existence from initial conception, the Boeing Company focused on directly designing and building airplanes for certain targeted markets. The main target population for Boeing is the United States government, in which, the aircraft design catered to specific characteristics with reoccurring demand for streamline aircraft. The Boeing Company set the platform to mergering business relations to formulate a unified business-to-business connectivity that assist in the final production of product (Boeing.com, 2008). For instance, the manufacturer of engines and the integral parts necessary to building successful planes – that empowered the Boeing Company to staying as the leader for many years.
The marketplace approach implemented by Boeing Company focused on the direct relationship with the primary clientele – the government to redesign planes for a lighter and robust engine. The Boeing Company focuses on design that reinvents the 700 series to stimulate the demand for the product line infusing effective competitive market equilibrium (Baye, 2009). Case in point, the superefficient 787 dreamliner centered on the core attribute the government requested to accomplish needed tasks, therefore, the Boeing Company restructured the bidding by underbidding, reduced employee staff and salary budget.
The approach allowed for the Boeing Company to stay competitive as a leader up to 2002 before Airbus punctured the dominated market. The Boeing Company up until that point demonstrated profitable returns by focusing on streamlined design specifically catered to the targeted segment and significantly reducing labor costs to promote a strong returned on investments. The bottom line succeeded but the internal matrix of staff suffered in the pursuit to staying the leader in the airline marketplace. The Boeing Company concentrated on reducing its overhead costs in the manufacturing, designing airplanes, and streamlining final assembly of its product.
The Boeing Company renegotiated contracts with clients to satisfying the needs of its primary client by selling off facilities. The financial impact of such deals of unloading production plants presented the initiative to reduce investment in factories and equipment and infuse funding to catered to the specific targeted population preferences. However, the market approach by Boeing to follow a theme of creating airplanes under current trends prices proved challenging. The effort too sustaining the leader in the industry whose growth in emerging markets depends largely on the artificial stimulation of demand, moreover, the management team struggled to balancing the concept that a good deal of the economic growth in airlines is driven by simple demographics.
In regard with Airbus Company, the marketplace approach focused on diversification in the target population in large commercial airliners by designing, building, selling, and supporting with capacity of a 100 seats or more concepts (Airbus, 2008). The Airbus Company operation streamlined their facilities to produce more than one aircraft every working day, therefore, the concept to deliver lighter aircraft faster down the production line. The European based company, Airbus, focused on an effective strategy that dealt with weight accounting to transform the commercial airline industry.
The marketplace approach by Airbus Company commitment to delivering a lighter aircraft created a newer concept on weight accounting that presented a successful returned of investment. The Weight Accounting strategic activity outlined the Airbus use of profound tools to monitoring and controlling firm weight targets that are critical to attaining success in the marketplace. The approach to the demand in the market allowed Airbus Company to increase sales from 2003 to 2005 that surpass Boeing Company with additional client’s orders preferring Airbus. Unlike Boeing Company, the senior management team at Airbus utilized the facilities for production by streamlining the assembly line with perfected designing of aircraft.
The approach by Airbus reflected in the changes in demand that is comparative statistics on how equilibrium is determined in a competitive market. The concept illustrated by Airbus is to formulate the balancing of how government policies on price ceilings and price floors affect the market to incorporate decision making on providing supply. The results presented the demand to analyze the impact of changes in market conditions on the pursuit to sustain brand equity. Therefore, the global demand at times of current trends empowered Airbus to impact the market by delivering the increase of supply to offset the brand identity of Boeing. In addition, the brand equity of Boeing suffered by allowing an opportunity for Airbus to solidify its new marketplace approached to take center stage.
The benefits of using demographic segmentation for targeting a business audience is the increase of the share of the customer in the market, high customer equity, and brand equity that provides continued growth for business operations. The art and science of choosing the target markets and building profitable relationships with them is the foundation of marketplace management. The formula for the marketplace marketing management agenda is the philosophy for an effective design plan for a customer-driven strategy. It is the rivalry between Boeing and Airbus that demonstrates similarities in marketplace approach to solidify their aircraft design to successfully compete with managed costs. The Boeing and Airbus differences in the production of the design are the more defined flexibility to the market Airbus mastered compared to Boeing. The Airbus production line centered on several types of core attributes needed to build the plan and streamlined the overall time to complete the product. Furthermore, the Airbus increase of supply delivering into the marketplace and superior customer value showcases the company’s differences in influencing the global markets.
The Airbus strategy creates not just a preference of the brand product or service but value proposition. The benefit of the value proposition creates more a dedication from the targeted demographic when marketing Airbus Company’s products. It provides a synergy with the core values of the company’s business objectives to infuse the product into the market for a longtime relationship with the targeted audience. The demographic segmentation to the targeted audience increases the projected outcome for Airbus as the dominate business entity in the marketplace.
The Airbus profitable relationship expands in global and domestic markets to a vilified brand positioning in the marketplace. The approach can relate to a high demand during a particular season that stretches the budget of the company to manage the demand with sufficient supply as in the case with Airbus. The risk management applied by Airbus focused on not narrowly on specific products like Boeing, rather than, on beneficial aspects of the actual targeted marketplace. The many opportunities arises when the strategic management is implemented to adapt to trends in production in a diversified measures for higher demand and producing a high quality product to sustain the brand equity.
Baye, Michael R., (2009) Managerial Economics and Business Strategy Fifth Edition, Retrieved from August 2, 2008, McGraw-Hill / Irwin, Boston, MA
Airbus.com (2008) The Official Website of Airbus Company, Retrieved August 1, 2008, from http://www.airbus.com
Boeing.com (2008) The Official Website of Boeing Company, Retrieved August 1, 2008 from http://www.boeing.com/news/releases/2008/q3/080702b_nr.html