Report on

A Case Study
On EMBRAER executive jets
Bangladesh

Principles of Marketing

JAGANNATH UNIVERSITY
Department of Accounting and Information systems
Date Faculty
of submission:
20 November
of Business
Studies 2012

Principles of Marketing
A Case Study On
(Market Segmentation, Target Marketing & Positioning)

Prepared For
Mr. Md. Babar
Assistant Professor
Department of Accounting & Information Systems
Jagannath University

Prepared By
Group Phoenix
Section
:A
Session
: 2010-2011
th
BBA 6 batch
Department of AIS
Jagannath University
Date of Submission

23 September, 2013

Page | 2

Principles of Marketing

Group Name: Phoenix

Details
Group Leader

Dipongkor Paul

Serial

Name of the Members

ID No.

1.

Dipongkor Paul

114411

2.

Imran Hossain

114489

3.

Md. Sumon Ahmed

114493

4.

Dibosh Sarkar

114517

5.

Tahmina Afrose

114521

6.

Sujon Nag

114533

7.

Farhana Ahmed

114537

8.

Koushik Haldar

114587

Page | 3

Principles of Marketing
Letter of Transmittal

23 September, 2013

MD. BABAR
Course Instructor
Principles of Marketing
Department of AIS
Faculty of Business Studies
Jagannath University
Subject: Letter regarding submission of Report on Market Segmentation, Targeting &
Positioning Strategy

Dear Sir,
We feel immense pleasure in presenting to your good self, the term report on MARKET
SEGMENTATION, TARGETING & POSITIONING STRATEGY as part of our course
requirement. We found this report to be truly challenging in many aspects, indeed very
interesting in relation to the various interpretational and engrossing exercises. In this report we
have applied our contextual knowledge in real life scenarios. In making the study, we had to
take help from the various sources of internet and class lectures of our course teacher. We are
grateful to him for extending generous help.
We acknowledge the contributions to our course teacher for the guidance. We have tried to use
our academic knowledge on real life case.
We are pleased to be granted this vital opportunity and grateful for your versatile assistance. We
hope that our work will please you.
Yours Sincerely,
Dipongkor Paul
Roll: 114411
On behalf of the Group Phoenix
Section- A
Department of AIS
Faculty of Business Studies
Jagannath University

Page | 4

Principles of Marketing
Acknowledgement

Conducting an analysis on Embraer Executive Jets is a rewarding task that requires both
mental stamina and attention to detail. The varied nature of the matters dealt with has entitled
references too many sources, starting from books to class lecture and to all of these we gladly
acknowledge our ineptness for the ideas and information they have provided.
Now, we are glad to thank our honorable course teacher Md. Babar, whose vast support,
advice, encouragement and guidance ensured that this analysis saw the light of day. Whenever
we face any kind of obstacle, we went towards him and he never made us upset. We are really
thankful to him for his humble attitude toward us.
Last but not the least, our group members whos devoted afford make it easy for all of us to
accomplish the report within the time at an efficient manner. If they were not being so loyal to
their work it would not be possible to systematize a high-quality project like that.

Page | 5

Principles of Marketing
Executive Summary

The global business jet industry consists of six principal producers that accounted for nearly all
production worldwide during 200611. Deliveries of business jets reached an all-time high in
days. Beside this, In Bangladesh, day by day, the necessity of the jet craft is growing day by
day. Nonetheless, the share of global production and market held by Embraer increasing day by
day during the period under examination as the economic downturn cut the profitability of
small and medium-sized enterprises, which are leading sealing of business jet aircraft, and
created an ongoing investment environment. So that it is clearly mention that Bangladesh will
be its potential market.

Page | 6

Principles of Marketing
Table of Contents

Title

Page No.

Letter of Transmittal

Acknowledgement

Executive Summary

Chapter One: Introduction

1.01
1.02
1.03
1.04
1.05
1.06

Background of the study;

Object of the Study;
Methodology of the study;
Scope of the study;
Limitation of the study;
Literature Review;

10
10
11
13
13
14

Chapter Two: Company Profile

2.01
2.02
2.03
2.04
2.05
2.06

Introduction;
Tradition & background;
Evolution;
Mission of the company;
Vision of the company ;
Products of the company;

17
18
19
20
20
21

Chapter Three: Analysis of marketing strategy

3.01
3.02
3.03
3.04

Market Overview;
Market Segments;
Target Markets;
Positioning Strategy;

27
28
29
30

Chapter Four: Findings, Recommendations & Conclusion

4.01
4.02
4.03
Appendix
Reference

Findings;
Recommendations;
Conclusion;

35
37
37
38
43

Page | 7

Principles of Marketing

Chapter One

Introduction

Page | 8

Principles of Marketing

Market segmentation is a marketing strategy that involves dividing a broad target market into
subsets of consumers, who have common needs, and then designing and implementing
strategies to target their needs and desires using media channels and other touch-points that best
allow to reach them.
Market segments allow companies to create product differentiation strategies to target them.
A target market is a group of customers that the business has decided to aim its marketing
efforts and ultimately its merchandise towards. A well-defined target market is the first element
to a marketing strategy. The marketing mix variables of product, place (distribution), promotion
and price are the four elements of a marketing mix strategy that determine the success of a
product in the marketplace
Market positioning means identifying and attempting to occupy a market niche for a brand,
product or service utilizing traditional marketing placement strategies (i.e. price, promotion,
distribution, packaging, and competition).
Positioning is also defined as the way by which the marketers attempt to create a distinct
impression in the customer's mind.
This Paper consists of five main sections. Section one consists of Introduction of the base topic
on which the paper has been made; Section two consists of Company Profile; Section three
consists of Analysis and findings of the case study; Section four consists of

Page | 9

Principles of Marketing

1.01 Background of the study

As we know this is a research project, we focused on market segmentation, targeting &
positioning. Now the question is how? We will
focus on the research method. In contrast we will
try to adapt any type of method to get into segment
of market, target consumer & product positioning
in the consumers mind because without satisfying
the consumers no company can survive. We have
chosen Embraer as our preferred Company. Like
how they segment their markets, target customers & set position and put smile on the faces of
audience and consumers. This includes how they identify attractive market segments and
choose the target marketing strategy and also how they position their products for maximum
competitive advantage in the market place.

1.02 Object of the study

As we are working on market segmentation, target marketing and positioning research project,
our primary objective is to get in the mind of marketers.
We have find out how they are getting something and how
they want to get something. Marketers always want to put
a smile on their consumer face. They always care about
what their consumer think, how they think. We have
chosen an airlines company whose main objective is to
manufacture jets and sell or rent them. So we have to
research about their marketing strategy of segmentation,
targeting and positioning.

Page | 10

Principles of Marketing

1.03 Methodology of the Study

The primary data of this research paper has been collected from the official website of the
Embraer Company. The web address has been given in
the reference at the end of the Chapter 5. The secondary
data has been collected from the websites of the clients of
the said company who resides in Bangladesh. Some data
has also been collected from different websites that
relates to the topic of the case study. A set of survey
questionnaire was created for a little survey of data
collection. Some examples are:

How many segmentation of market they have for their product?

How they target market?

What kind of customers they target?

1)

How many segmentation of market they have for their product?

Market Sementation

27%

37%
Geogrphic
Psychographic

9%

Demographic
18%

9%

Socuo-cultural
Behavioral

Page | 11

Principles of Marketing

2)

How they target market?

Target markets

25%

Differentiated
Concentrated

75%

3)

What kind of customers they target?

Types of customers

31%

38%
Airlines Companies
Multinational Companies

8%

Multimillioniars
23%

Rentals

Page | 12

Principles of Marketing

1.04 Scope of the Study

Thirteen questions were randomly asked to general people two of which were broad. Those
broad questions were asked only to know peoples preferences
What people like and what not. There were total respondents.
They were asked about what they like, why they like, how they
like and other important things to understand their behavior
towards different types of products & services. After knowing
about their behavior and preferences it would be a lot easier to
make good, creative and effective services. We got the information from the customers whom
are habituated to get service from Embraer that most of them like to travel in second class. But
the VIP class is for the elite persons. If the persons feel comfort after getting the service from
Embraer they will tell about it to the nearest people. So it shows that good service will make
people have the service it again and again which may create good word of mouth. Mostly old
aged people care about comfortable travelling service, because they care about health. Almost
all aged people like this type of comfortable service. But slightly young boys and girls like it
more because they care about new technology and are trendy.

1.05 Limitations of the Study

We are using very unfamiliar method thus it has some limitations. It might bring some negative
results. People have different taste so people should think rationally.
Research work is very much comprehensive. It is an accumulation of
both information and creative thinking which requires a great effort
and a long sound planning. Because of some unavoidable reasons; we,
sometime, faced problem in some portion of the report. But we tried
our level best to overcome this.
On top of that our topic was about segmentation, targeting & positioning strategy of a company
which is a very comprehensive topic in todays world. But studying this topic we found some
new concept as well. In this respect there may be some lacking in the report because of our
knowledge limitation. There may be some errors and lacking but all these errors are totally
unintentional. At the end we are very happy to present this report to the readers and its success
will depend on the positive response of the readers.

Page | 13

Principles of Marketing

1.06 Literature Review

Hudson (2008) summarized the criteria that used usually for segmenting hospitality and
tourism markets as: demographic segmentation; psychographic
segmentation; geographic segmentation; benefit segmentation;
behavior segmentation.
Mintel (2002) went further to add another form of
segmentation, i.e. criterion segmentation, and identified two
main segments in the e-travel market segmentation of
customers - lookers and bookers.
McCabe (2009) was more focused and pointed to three bases
for

marketing

segmentation

which

are:

Demographic,

Behavioral and Psychographic.

The various segmentation criteria reflected the differences between customers and the need to
select the right target market.
Armstrong and Kotler (2000) asserted the importance of targeting the right market to fit an
organizations capabilities.
Hudson (2008-95) strongly supported their point and stated:
There is no area in the market plan that surpasses the selection of target markets in
importance.
Armstrong and Kotler (2000) pointed to the impossibility of an organization targeting a large
market if it suffers from lack of staff abilities to enable the company to serve this large
population of customers. There are various assessment criteria which result in successfully
targeting a market.
McCabe (2009) stated five characteristics which help marketers to designate the targeted
market: attainable; measurable; large enough; defendable; sustainable.
Baineset al. (2008) pointed to another approach to select the appropriate target market which
builds on assessing the attractiveness of each of several factors, such as: market growth;
segment profitability; segment size; competitive intensity within the segment; the cyclical
nature of the industry (i.e. the seasonality of the industry).
Hudson (2008) highlighted different key criteria for the target market: well defined; accessible;
identifiable; homogeneous; networking; the same needs and reasons for purchasing the service
Page | 14

Principles of Marketing

or product. Thus, the previous criteria for the target market can be summarized as: identifiable;
measurable; large enough; accessible; attainable; sustainable; defendable; homogeneous
(common criteria including common needs to purchase the product); networking; profitable.
The decision for adopting the previous characteristics relied on the employed targeting approach
in the organization.
Armstrong and Kotler (2000) and Baineset al. (2008) stated three main targeting approaches:
undifferentiated marketing (one marketing mix for the whole market); differentiated marketing
(various marketing mixes for various market segments); concentrated marketing (one marketing
mix for various targeted segments).
The appropriateness of each of these approaches depends on the organizations size, financial
resources and type of business.

Positioning is the third phase of the STP process.

Baineset al. (2008) & McCabe (2009) clarified how it should work. In this phase, the product
will be adjusted according to the results of the marketing research results, followed by creating
an image fitting the targeted segments values.
Furthermore, Hudson (2008) pointed to using this phase in achieving sustainable advantage
over competitors.
McCabe (2009) and Hudsons (2008) understanding of positioning was clear in the Phoenixbased case in China which changed its original plan of building four and five-star hotels to
building 100 three-star hotels.
There are different ways to achieve a good position in the market.
Tapp (2005) and Combe (2006) pointed to differentiation.
Additionally, Baineset al. (2008) named two ways to position the brand: functionally and
expressively (symbolically). By functionally Baineset al. (2008) emphasized the features
and benefits. Expressively reflected various elements: ego, social and the hedonic satisfaction.
Hudson (2008) was more specific and mentioned three steps to achieve a good position in the
market: product differentiation prioritizing and selecting the competitive advantage
communicating and delivering the position.
Armstrong and Kotler (2000) reorder these steps in strongly recommending identifying the
right competitive advantage to differentiate the product.
In brief, a complete STP process should help marketers to achieve better position in the market
and attain the right target market

Page | 15

Principles of Marketing

Chapter Two

Company Profile

Page | 16

Principles of Marketing

2.01 Introduction
Today, Embraer is the worlds fourth-largest commercial aircraft manufacturer. Its ERJ 135/145
airframe served as the foundation for the companys first business jet, the Legacy 600, which
was introduced in 1999. In the past decade, Embraer has developed the Phenom 100 and 300
small-cabin jets, the Legacy 450 and 500 midsize jets and the Lineage 1000 bizliner. The
longer-range Legacy 650 was certified last year.

Embraer stands on the proud shoulders of Brazilian aviation pioneers whose work dates back to
the early 18th Century and the dawn of powered flight. The father of Brazilian aviation, Alberto
Santos-Dumont, is heralded as the first person to make a controlled flight in an engine-powered
air vehicle, the Hydrogen Dirigible No. 1, in 1898. He later won the 1901 Deutsch de la
Meurthe prize for piloting a dirigible around the Eiffel Tower for half an hour. In 1906, three
years after the Wright brothers successfully flew in the United States; Santos-Dumont made his
first public flight in a heavier-than-air aircraft known as the 14-bis, in Champs de Bagatelle, on
the outskirts of Paris.
Embraers aviation roots are strong and deep. Now the worlds third largest aircraft
manufacturer and a leading force in aerospace technology and innovation, Embraer has
delivered more than 5,000 executive, commercial and defense aircraft in its 40+ years which are
now operating in over 90 countries.

Page | 17

Principles of Marketing

2.02 Tradition & background

ONE COULD SAY ITS THE HAT THAT LAUNCHED A THOUSAND
SHIPS
One hundred years ago, a young Brazilian aviator wowed the people of Paris with the successful
flight of his monoplane design. This man was Alberto Santos-Dumont, and the signature
Panama hat he wore made him stand
out

in

crowd.

Inspired by Santos-Dumont, Embraer

is one of the worlds leading aircraft
manufacturers, a position achieved
through the commitment to full
customer satisfaction. Throughout its
40-year history, Embraer has been
involved in all aspects of aviation. In
Addition to design, development,
manufacturing, sales and technical support for commercial, agricultural and executive aviation,
Embraer

also

offers

integrated

solutions

for

defense

and

security.

It has produced more than 5,000 aircraft that operate in 80 countries on five continents, and it is
the market leader for commercial jets with up to 120 seats. Embraer manufactures some of the
best executive jets in operation, and is now entering a new level in the defense segment.

Page | 18

Principles of Marketing

2.03 Evolution
Created on August 19, 1969, Embraer - Empresa Brasileira de Aeronutica, was a mixed capital
company under government control. With the
support of the Brazilian Government, the Company
would transform science and technology into
engineering and industrial capability. In addition to
starting the production of the Bandeirante, Embraer
was commissioned by the Brazilian Government to
manufacture the EMB 326 Xavante, an advanced
trainer and ground attack jet, under license of
Italian company Aermacchi. Other developments
that marked the beginning of Embraers activities
were the EMB 400 Urupema high-performance
glider and the EMB 200 Ipanema agricultural
airplane.
By the end of the 70s, the development of new
products, such as the EMB 312 Tucano and the EMB 120 Brasilia, followed by the AMX
program in cooperation with the companys Aeritalia (now Alenia) and Aermacchi, allowed
Embraer

to

reach

new

technological

and

industrial

level.

The entry into service of the new EMBRAER 170/190 family of commercial aviation in 2004,
the confirmation of Embraers definitive presence in the executive aviation market with the
launch of new products, as well as the expansion of its operations into the aviation services
market, established solid foundations for the future development of the Company.

Page | 19

Principles of Marketing

2.04 Mission
Embraers business is to generate value for its shareholders by fully satisfying its customers in
the global aviation market. By generate value, we mean
maximizing the Companys value and ensuring its perpetuity,
acting with integrity and social environmental awareness.
The Company concentrates on three business segments and
markets: Commercial Aviation, Executive Aviation, and
Defense Systems.
The values that mold the attitudes and unite actions to ensure
the Companys perpetuity are:
- Our people;
- Our customers;
- Company excellence;
- Boldness and innovation;
- Global presence;
- Sustainable future

2.05 Vision
Embraer invests in its global presence. To achieve this goal, Embraer brings together the best
technological and financial conditions, in addition to all
production, sales, and service resources. The company has
operating units in several places around the world. Embraer
is a multinational corporation headquartered in Brazil with
facilities located in the United States, France, China,
Singapore and Portugal. Our global presence includes
manufacturing, service centers, customer support, parts distribution centers and sales offices.
Embraer Executive Jets is headquarted in Melbourne, FL, USA along with a Phenom
assembly line, our global Customer Center and the future home of Embraer Engineering and
Technology Center USA. Legacy, Lineage, and additional Phenom manufacturing, along with
aircraft design and development and Customer Support Contact Center, are located at the
corporate headquarters in So Jos dos Campos and other locations in Brazil.

Page | 20

Principles of Marketing

2.06 Products of the Company

Here are some products of the Company-

Embraer Executive Jets: Embraer Phenom 100

General characteristics
Capacity: 4 passengers standard (6 max)
Payload: 595 kg (1,312 lb)
Length: 12.80 m (42 ft 1 in)
Wingspan: 12.30 m (40 ft 4 in)
Height: 4.4 m (14 ft 3 in)
Useful load: 1,535 kg (3,384 lb)
Max. takeoff weight: 4,750 kg (10,472 lb)
Power plant: 2 Pratt & Whitney Canada PW617F-E turbofans, 7.2 kN (1,695 lbf) each
Performance
Maximum speed: 722 km/h,449 mp/h (390 ktas)
Range: 2,182 km
Service ceiling: 12,500 m (41,000 ft)

Page | 21

Principles of Marketing

Embraer Executive Jets: Embraer Phenom 300

General characteristics
Capacity: 6 passengers (standard configuration) maximum of 9 incl. 1 in cockpit
Length: 15.9 m
Wingspan: 16.2 m
Height: 5 m
Max takeoff weight: 7,951 kg
Power plant: 2 Pratt & Whitney Canada PW535E turbofans, 14.2 kN (3,200 lbf) thrust
each
Performance
Maximum speed: 834 km/h
Range: 3,650 km
Service ceiling: 13,716 m

Page | 22

Principles of Marketing

Embraer Executive Jets: Embraer Legacy 450

General characteristics
Capacity: 7 to 10 passengers
Length: 19.15 m
Wingspan: 20.25 m
Height: 6.74 m
Max takeoff weight: 17,690.40 kg
Fuel capacity: 7,949.34 l
Power plant: 2 Honeywell HTF7500E
Performance
Maximum speed: Mach 0.83
Range: 4,260 km
Service ceiling: 14,000 m
Minimum Take Off Distance: 1,524.00 m

Page | 23

Principles of Marketing

Embraer Executive Jets: Embraer Legacy 500

General characteristics
Capacity: up to 12 passengers, 8 standard
Length: 20.52 m
Wingspan: 20.24 m
Height: 6.73 m
Power plant: 2 Honeywell HTF7500E Turbofan engines, 29.1 kN (6,500 lbf) thrust
each
Performance
Range: 5,556 km at Mach 0.78
Service ceiling: 14,021 m (46,000 ft)
Rate of climb: 19.1 m/s

Page | 24

Principles of Marketing

Embraer Executive Jets: Embraer Legacy 600

General characteristics
Capacity: 13 passengers
Length: 26.33 m (86 ft 5 in)
Wingspan: 21.17 m (68 ft 11 in)
Height: 6.76 m (22 ft 2 in)
Empty weight: 16,000 kg (30,000 lb)
Max. takeoff weight: 22,500 kg (49,604 lb)
Power plant: 2 Rolls-Royce AE 3007/A1P turbofans, 39,2 kN (8,810 lbs) each

Performance
Maximum speed: 834 km/h (450 kt, 518 mph)
Range: 6,060 km (3,250 nm, 3,740 mi)
Service ceiling: 12,496 m (41,000 ft)

Page | 25

Principles of Marketing

Chapter Three

Analysis of Marketing
Strategy

Page | 26

Principles of Marketing

3.01 Market Overview

Now-a-days airlines business is very popular. It considered as a well established sector in the
North American market, a growing sector in the European
market and a developing but promising sector in Asian
market. We believe this could present an opportunity for
long-term growth and a potential for increased profitability
in Bangladesh.
It is one of the most important parts of modern business for
marketing research and analysis. If anyone goes to the whole potential market, it will bring only
disaster for the company. We have to select a target segment from the potential market and
communicate with them in order to inform them about the service of any particular company.
The services Embraer offers are unique and exclusive. So they have to identify the consumer
segment that is willing to take these unique and exclusive services and is affordable of
experience them.

Page | 27

Principles of Marketing

3.02 Market Segmentation

Market segmentation is a marketing strategy that involves dividing a broad target market into
subsets of consumers who have common needs,
and then designing and implementing strategies to
target their needs and desires using media
channels and other touch-points that best allow to
reach them
Geographic Segmentation
Embraer is a Brazilian aircraft manufacturing
company. They import their aircrafts directly in Bangladesh and provide those executive jets to
multi millionaire consumer as well as different airlines company or group of industries like
Square, Uniliver etc.
Demographic Segmentation
In demographic segmentation, they consider those air lines companies which are new
entrants as well as well-known in the market. As people from all generation now-a-days are
very concerned about the recreation, they usually go to foreign country for entertainment
through different aircrafts. So, multi millionaire consumer as well as different airlines company
or groups of industries are their target customer.
Socio-Cultural Segmentation
Again they consider one variable, social class. As our aircraft are very expensive
because they are luxurious jet so they segment the market for that consumers whose are upper
class considering the affordability and consciousness.
Psychographic Segmentation
Since the air transport system is the most expensive way of transportation not everyone
is able to afford this service. Therefore, they target multi millionaire who want to avail
luxurious service.

Page | 28

Principles of Marketing

Behavioral Segmentation
There are three variables for Embraer like benefits, readiness and attitude toward
service. Embraer basically segmented for airlines as well as group of industries; as
consumers always try to find out the benefits in a service. As Embraer provides luxurious
quality in relatively low price, it satisfies them better. By the readiness, they segmented as
unaware (airlines who are not aware of Embraer aircraft services) and interested (airlines who
are interested of Embraer aircraft services). By the attitude toward services, they segmented as
enthusiastic (highly satisfied), positive (satisfied or not dissatisfied) and rational (logical airlines
who have both satisfaction and dissatisfaction bout the service).

3.03 Target Markets

EMBRAER Executive Jets Bangladesh use two kinds of strategies for target marketing;
differentiated and concentrated marketing.
Under differentiated marketing they offer two types of
products and services. If they sell 2-3 plane in a year
then they consider themselves successful and it is
possible in our country if the target customers cannot
buy for different reasons then EMBRAER can also
offer them rent service.
Under concentrated marketing, EMBRAER target different types of multinational company,
rich people in Bangladesh and also public air transportation service provider, Bangladesh
Biman.
They usually make a sales team to inform and push the richest people to buy a plane that
is benefited for the person also they can earn huge money from the sector. Sales people always
influence the people and try to analyze every sector how they maintain and earn huge money by
make a presentation slides.

Page | 29

Principles of Marketing

3.04 Positioning Strategy

Embraer Executive Jets are high-end products. Only multimillionaire persons can effort to buy
one of the jets form out product line. Our other
services are exclusive and high-end as well.
Our current marketing strategy is based upon our
assessment of the worldwide commercial airline
market and our assessment of the current and future
needs of our customers. We actively market our
aircraft to airlines and regional affiliates of major
airlines through our regional offices in the United States, Europe and Asia. Our success
depends to a significant extent on our ability to discern our customers needs, including needs
for customer service and product support, and to fill those needs in a timely and efficient
manner while maintaining the high quality of our products. Our market and airline analysts
focus on the long-term trends of the market, competitive analysis, product enhancement
planning and airline analysis. In terms of direct marketing to our customers, we rely heavily on
addressing the media, as well as participating in air shows and other cost-effective events that
enhance customer awareness and brand recognition. We have regional sales offices in Le
Bourget, France, Ft. Lauderdale, Florida, Beijing, China and Singapore. We sell our ERJ 145
regional jet family in the Chinese market exclusively through our joint venture in China, which
has secured 11 orders from Chinese airlines since the beginning of 2004.

Unique selling position

Time is money. Save your time and earn more money. Add value to your life. Take your life
and your business to another level.
Looking to continue to grow our business and to increase our profitability, we intend to
continue to offer our customers cost-effective, high quality, and reliable aircraft and services.
The key elements of our strategy are the following:
Continuing to market commercial aircraft
We are fully committed to continuing to market our ERJ 145 regional jet family and to
aggressively market our mid-capacity aircraft, the EMBRAER 170/190 jet family. As of
March 31, 2009, we had more than 870 units of the ERJ 145 jet in commercial operation. We
Page | 30

Principles of Marketing

are currently evidencing increased demand for the ERJ 145 jet family in the secondary market
due to its reliability and strong operating benefits. We believe that airlines can continue to
benefit from this regional jet family, which we believe has helped our customers over the last
ten years to pursue their goal of achieving profitable operations. We believe a significant market
opportunity exists for the EMBRAER 170/190 jet family with regional airlines that are
expanding their fleet, increasing their penetration into higher density markets and adding longer
routes, as well as with major and low-cost airlines that are right-sizing their fleet in order to
adjust capacity to meet demand in less dense routes. As of March 31, 2009, we were leaders in
the 70-120 seat categories in terms of number of aircraft sold. Additionally, we believe that our
commercial aircraft will provide us with significant opportunities to increase our
competitiveness by offering our customers a full range of jets in the 30-120 seat categories.
Strengthening Position in the Executive Jet Market
We believe that the executive jet market provides us with significant growth opportunities. We
expect to offer products in all categories of the executive jet market, from the entry-level to the
ultra large categories. We have developed the Legacy 600, a super midsize, the Phenom 100, an
entry-level jet, and the Lineage 1000, an ultra large jet, and are developing the Phenom 300, the
Legacy 450 and the Legacy 500, executive jets in the light, mid-light and mid-size categories,
respectively. We have endeavored to understand and respond to market and customer needs,
continually improving the product and customer support for our executive jets.
Continue to Pursue Market Niche Opportunities in the Defense and Govt. Market
We currently offer products for transportation, training, light-attack, intelligence,
surveillance and reconnaissance. Since our products offer multi-mission capabilities at a
competitive price and are designed to be operated in any environment at low operating costs, we
believe our products meet the needs of governments in countering present threats which are a
global concern, such as terrorism, drug dealing and weapon smuggling.
Continuing Focus on Customer Satisfaction and Support
We believe that our focus on customer satisfaction is fundamental to our entrepreneurial
success and our business strategy. Providing high quality customer support is a key element of
our customer focus and is critical to our ability to maintain long-term relationships with our
customers. As the number of our aircraft in operation continues to grow, and our executive
aviation business expands, we have further increased our commitment to providing our

Page | 31

Principles of Marketing

customers with an appropriate level of after-sale support, including technical assistance, pilot
and maintenance training and spare parts, as demonstrated by the expansion of our Nashville,
Tennessee, maintenance, repair and overhaul, or MRO, facility, and the acquisition of OGMA,
an MRO facility in Portugal, which we began operating in March 2005. We intend to continue
to focus on providing our customers with high quality customer support by expanding our
presence worldwide, both through our own operations and agreements with authorized service
centers. In 2007 we created a new business area called Aviation Services. We also started the
construction of a service center at Williams Gateway Airport in Mesa, Arizona.
Continue to motivate our employees and improve our production processes and managerial
practices.
We are constantly seeking to exceed our customers expectations. In order to achieve
that, we must, on a daily basis, continuously try to implement the most efficient production
processes and best managerial practices. Because the success of our products and services are
ultimately a combination of the contribution of our employees and the production processes we
have developed over the years, we recognize that we must continue to motivate our employees
and refine our production processes. To that effect, we have implemented, and intend to further
develop, corporate programs based on a lean manufacturing philosophy, such as the Embraer
Entrepreneurial Excellence Program (P3E), that are designed to strengthen our internal culture
of excellence and improve the efficiency of our operations.
Looking for business growth and to increase our profitability, our strategy is to continue to offer
our customers cost-effective, high quality, reliable aircraft and services. The key elements of
our strategy are the following:
Strengthening our Position in the Business Jet Market.
We have developed the Legacy, a line of business jets based on the ERJ 135 regional
jet. Since the launch of the Legacy in 2000 and its entry into service in 2002, we have
endeavored to understand and respond to market and customer needs, continually improving the
product and customer support. The knowledge accrued resulted in significant enhancements
while creating the right conditions for us to identify new opportunities in the business aviation
market. In May 2005, we expanded our product portfolio to complement the Legacy offering
with jets for the very light and light categories. These business jets can provide companies,
including fractional ownership companies, individuals and the emerging business of air taxi

Page | 32

Principles of Marketing

companies a cost-effective and personalized alternative to commercial airline travel.

Increasing Penetration into the Defense Market
We plan to develop and market additional defense products and thereby increase sales in
this segment of our business. We intend to increase our participation in the international
defense market by actively marketing our existing products initially developed for the Brazilian
Air Force, including our EMB 145 Intelligence, Surveillance and Reconnaissance aircraft and
the Super Tucano (ALX).
Reviewing Strategic Growth Opportunities and Enhancing Existing Relationships.
We intend to review strategic growth opportunities, which may include joint ventures
and acquisitions, and other strategic transactions and enhance our existing relationship and
strategic alliance with the European Aerospace and Defense Group. For example, we recently
increased our customer service capabilities with the acquisition of OGMA through a consortium
led by us with EADS participation.

Page | 33

Principles of Marketing

Chapter Four

Findings,
Recommendations &
conclusion

Page | 34

Principles of Marketing

4.01 Findings
Business structure of EMBRAER Executive Jets Bangladesh:
The business and marketing strategy has been discussed in the previous chapters. The business
structure of the Embraer executive jets Bangladesh is given below on the picture-

Page | 35

Principles of Marketing

Segmentation Strategy of Embraer

Key Dimensions

Segmentation Variables

Logical Breakdowns

Specific Location

Dhaka city and major divisions.

Sole distributer (Dhaka)

Geographic
Outlets

Dealer storeroom
(Different Airlines
Company)

Psychographic

Lifestyle

Luxurious

Income

High

Generation

Young and aged people

Social Class

Upper class

Benefits

Exclusive service

Demographic

Socio-cultural

Readiness

Unaware
Interested

Behavioral
Enthusiastic
Attitude toward service

Positive
Rational

Page | 36

Principles of Marketing

4.02 Recommendations:
1.

The company needs to focus on attracting more

customers by introducing new and varieties products
and services.

2.

Introduce and develop new & hi-tech jets to maintain

the existing customers as well as attracting new
customers.

3.

The company may also start providing maintenance

service or selling spare parts for manufactured jets or for those which are already in
use.
4.

The company should extend its size.

5.

The company has to provide attractive offers so clients are available to it.

6.

It has to up-to-date its current activities on regular basis.

7.

Diverse market can be tackled through proper distribution channel.

8.

Company should recruit efficient employee. To increase Efficiency, Company should

make arrangement of different training session to its employee.

4.03 Conclusion
In the whole procedure, we wanted to apply our text knowledge in real life in the aspect of
company & marketing strategy for market segmentation, targeting & Positioning. As we could
analyze any existing company of Bangladesh but due to
lack of internal data, we emphasized on a multinational
company. How a company uses marketing at the time of
introducing new product and select different marketing
strategies relative to our topic is discussed in this topic.
We describe on the basis of academic knowledge in real
life scenarios. This report will help us to market any
product in future. As we go through the various source of internet, survey in real life, research
deeply on contextual areas, we ensure our report reader and user a real taste of marketing and
strategy, a company uses or adopts.

Page | 37

Principles of Marketing

Appendix
The Sale and Pricing Strategy of the company :
Sales and marketing
Distribution
We will introduce a new virtual tradeshow platform, providing our consumers the
opportunity to attend the Embraer Executive jet tradeshow event by logging in from their own
computer. These events will consist of online training sessions, online general sessions with key
note speakers and online tradeshow booths all designed to educate, motivate and inform
consumers about our jets. We will operate reservation call centers to support our airlines
community in Dhaka which will allow us to provide flexible and extended hours of operations.
We will maintain websites that allow consumers to see our aircrafts.

We will place a significant focus on building strong relationships with our consumer
before, during and after their buying for customer engagement and continued loyalty. As part of
this focus, we will establish ongoing social media platforms to increase awareness for both
repeat and new airlines company and we will emphasize marketing through our loyalty
programs. As a result, we should be able to seek our goal

Promotional Activities
Promotional strategy is one of the important things that bring success to an organization.
Promotional strategy designed in a way which will encompass the images of the most treasured
elements of the product, the fascinations of technologies which will shape the future. In todays
highly competitive environment, the promotion part of the marketing mix plays a crucial role in
helping advertisers stay in touch with prospective customers.

Page | 38

Principles of Marketing

Embraer Aircraft will be on the stage of introduction. The reason behind its on
growth stage because we will newly entered in the market. We need the help of electronic media
for publicity for our business. By this, Airlines Company will know that what kind of product,
we provide.
The promotion mix of Embraer is below:
Advertising
Sales promotion
Direct marketing
Event sponsorship
Team selling
Embraer will follow the following promotional strategies to achieve success:
Advertising - The advertising plan of Embraer will be planned in a way that it reaches all the
airliners or potential users looking for an aircraft which is excellent in terms of quality. The
strategy is developed to reach the target airlines through using radio, newspaper and magazine.
Advertising objectives:
To aware customers:
The main objective of their advertising is to aware customers of Embraer. Though the
target market is widely spread, Embraer will inform the target customers about their products.

Page | 39

Principles of Marketing

To increase sales:
The second objective is to increase their sales because an advertisement helps a lot to
increase the sales of any company.
To increase brand preference and loyalty:
Since the target, market is wide, so Company has to build a strong brand image over
their competitors. Embraer will have loyal customers but it need to advertisement to increase it.
Out of different advertising media like print, radio etc,
Sales PromotionEmbraer will follow sales promotion as a promotional tool. Sales promotion is generally
defined those activities that provide extra incentive to sales force, distributors and the ultimate
consumer. Embraer follows both trade promotion and consumer Promotion:
Consumer promotion:
Embraer follows this consumer promotion but not frequently. They provided seasonal
price reduction, especially in when the aircraft selling is low. It also they can provide some
attractive gifts to their consumer.
Trade Promotion:
Embraer will use incentives promotional tool. In this case they use push strategy. They
encourage the distributors to sell more. The activity is like, depending on the amount/number of
product the distributor get discount. But in this case the dealers have to sell the targeted amount
first and then they will get 5% discount or sometimes-specific amount of money.
Direct marketingThis direct marketing is only for the big institutional buyers like, defense force of Bangladesh
Biman etc. in the direct marketing they provide special offer or discount for these buyers.
Personal sellingEmbraer will go for personal selling as well. They have marketing people who tried to sell
Embraer aircrafts to big airlines.

Page | 40

Principles of Marketing

Event sponsorshipEvent sponsorship is becoming very popular and Embraer aircraft will also use it for publicity.
Event sponsorship helps Embraer to establish public relations.
Advertising through electronic mediaThe TV advertisement is becoming more popular and it will help the Embraer to reach more
closure to consumers. TV is one of the major tools for the mass marketing. It will also help the
Embraer to create brand awareness.
Team selling:
We sell Embraer executive jet through working like a team which includes marketing manager,
financial analyst, aeronautical engineer etc. We need marketing manager for publicity of our
jets, financial analyst for financial survey and aeronautical engineer to support the technical.
Its also we follow below this steps to convince our consumer Prospecting
Pre-approach
Approach
Needs identification
Presentation
Sales Process
Sales process will be done through
Direct sales for Jets
Online Booking for Jet Rent
Online booking for Flight Scheduling
Fixed Interval Maintenance might be confirmed through phone or e-mail
Competitors:

Competitor could be Bangladesh Biman and other travel agency in our country. We
should reduce price for our customer to travel short time and get discount card if the person

Page | 41

Principles of Marketing

travel at least 10 times in a year because the person could be our loyal customer and we also can
give information in our customer by mobile short message service.
Market research:
First of all we need to collect data from different sources who will travel business
purposes and which area and we need to analyses which place is safety for us for price,
maintenance and other facilities. While our air plane is small and easily land anywhere that why
it is our main idea to capture the market. In our country our biman could not maintain actual
time. So we can get the market. Our customer is huge but they could not get benefit from
Bangladesh biman so they are not travel by air.
Financial Performance of Embraer:

Page | 42

Principles of Marketing

Reference:
1. The Economic Times [http://economictimes.indiatimes.com/topic/History-of-aviationin-Bangladesh]

2.

Embraer Executive Jets[www.embraerexecutivejets.com/]

3.

Embraer [http://worldairlinenews.com/tag/embraer/]

4.

Principles of Marketing by Philip Kotler and Gary

Armstrong [Pearson Prentice Hall (tenth edition)]

5.

Wikipedia [http://en.wikipedia.org/wiki/Main_Page]

6.

Business Jets [http://bjtonline.com/business-jet-news/themajor-business-airplane-manufacturers-at-a-glance]

End

Page | 43

Principles of Marketing

Page | 44