Dreamliner 787 Case Essay Example for Free

Dreamliner 787 Case EssayTara Lentini Week 3 Case appellative Boeing Dreamliner 787 talk over the nature of the market structure and demand for the Dreamliner. What atomic number 18 the implications for Boeing and its customers? The market structure for the Dreamliner is that of an oligopolistic nature which mean there ar 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 compress over the market for commercial aircraft.The demand for the Dreamliner is derived demand. Due to customer demand for comfortable fair priced airline business business travel, the demand for the Dreamliner leave behinding increase. Customers demand comfort during air travel and the Boeing Airliner promises added luxuries that allow increase customer purchases to those airlines with a Dreamliner aircraft. The chief project manager for the Boeing, Tim Cogan stated, Its n ot Just an evolutionary step it b effectlinesss on revolutionary. This statement is support by galore(postnominal) industry insiders. Kotler Armstrong, 2010, p188) With such support, the emotions of the airline companies umped at the chance to place an order withal with the understanding that the estimated term for delivery was at least 4 years and there was little research to support some of the added luxury amenities. What examples of the major types of buy situations do you see in the case? establish the implications of each in terms of marketing strategy? A new-task purchase is seen with the Dreamliner due to the fact that it is a new product being sold by Boeing.The buying team is comprised of numerous members and the team must break up on specifications regarding the product. The marketer (Boeing) tries to reach as galore(postnominal) key buying influences as possible alone also provides help and tellation. (Kotler Armstrong, 2010, pl 73) The amenities of the Dreamliner exit assist the buying team in make a decision whether or not the Dreamliner would be a smashing investment for the company and if so, how many to order. A straight rebuy is also seen in this case.Boeing listed the airliner at a price of $162 million with few customizable options for its buyers. (i. e. lay arrangements). Many aircraft buyers may expect already been customers f Boeing and atomic number 18 familiar with their business. A straight rebuy is delimitate by Kotler and Armstrong as the buyer reorders something without any modifications. Once the buyer purchases the aircraft the straight rebuy buying situation pass on result in a quicker sale with fewer individuals making a decision on options and product specifications.List the specific features of the Dreamliner. What customer benefits result from each? PASSENGER BENEFITS 60% quieter than other planes in its class It is always nice to sleep on a plane however, when seated near the engine it is serious to rest due to the noise. Many corporate travelers volition enjoy this benefit with the late and first morning travel legs. With the added legroom there will no longer be a need to specifically sit in the isle and more options that will equal the comfort of isle seats will come available.Lighting that automatically adjusts to succession zone shifts Changing time zones can be difficult for anyone Circadian rhythms, which are the internal clock we all have which tells us when we it is time for bed and when it is time to rise. These clocks are not easily adjusted when changing time zones. The Dreamliner will posse ignitor that imulates sunrise and twilight which will assist its passengers adjust to the change in time zones. (Micke, 2010) Higher cabin pressure and humidity reducing common flying symptoms such as headaches, dry mouth, and fatigue.All of these symptoms are not what close passengers look forward to knowing the Dreamliner decreases these symptoms will make it a f avored aircraft for many passengers. Large overhead storage bins It is always daunting not knowing if your carry on will fit into the overhead storage bins. We have all witnessed a passenger beating their luggage esperately hoping it will pop in before the flight attendant comes by to take it to be stored in the freight area. 19 inch self-dimming windows This is a wonderful feature for those who prefer a window seat but have to fght the sunlight to enjoy their flight.Wireless internet and entertainment system many travelers use the internet to stay connected while away. This option will give business travelers the ability to complete business while on the road. Time sensitive information can be conducted in-flight and travel will no longer be a burden for business travelers. The non-business travel can stay connected with family and friends to inform of flight status and arrival time. Also, wireless access will assist the passenger with passing the time during air travel. AIRCR AFT BUYER BENEFITS For the buyer of a Dreamliner Aircraft, the marketing aspect will be a breeze.Passengers are always looking for comfort when flying and this aircraft offers many luxury amenities. Airlines with a Dreamliner in their roster will have the ability to sell luxury air travel to its passengers without the luxury cost. The Dreamliner will offer a ighter aircraft resulting in less fuel needed for flights. This aircraft could replace outdated aircrafts that are no longer economically fit. The 787 will expand non-stop markets for its customers with a fuel range of 8,500 nautical miles and a maximum speed of Mach . 5. (Kotler Armstrong, 2010, p187) Also, the Dreamliner offers passenger capacity of 210 to 330 depending on sit arrangement ordered by the customer. With multiple configurations, the buyer of the aircraft has the option to decide what seating confguration would best meet their airline needs. For example, Southwest Airline only offers economy class, so they woul d order a Jetliner with one type of seating confguration. There is no need for Southwest to order a Jetliner with first or business class on a Dreamliner.Other airlines may find it needful to order multiple aircrafts with different seating arrangement to best meet its marketing and customer needs. Discuss the customer buying exhibit for a Boeing airplane. In what major ways does this process differ from the buying process a passenger might go through in choosing an airline? The buying process for an airline placing an order or a Dreamliner would first have to recognize a need for a new aircraft offering the retire due to age may look at the Dreamliner as good solution to add new innovative products to their fleet.Next the buyer would have to recognize the general specifications and measurement needed of an item. Here a buyer of the aircraft would consult engineers and technical personnel to discuss the options available on the Dreamliner Aircraft. For example, the technical staff should be consulted regarding the wireless entertainment system on a Dreamliner. The control tug may need odifications to look into interference will not be an issue with this type of system. convergence specifications needed to meet the airlines customer and marketing needs would have to be listed.In this process, the team decides on the best product characteristics and specifies them accordingly. (Kotler Armstrong, 2010, p177) As for the Dreamliner, the airline would specify the seat options available. For example, Southwest Airlines only offers economy seating for their passengers. If Southwest chooses to purchase a Dreamliner, they would specify one seating option or their aircraft. Once the order is placed for a Dreamliner, the buyer should conduct a performance review to ensure the product will be delivered on time and to ensure they are aware of any problems that may arise.At this tip of the buying process the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement. (Kotler Armstrong, 2010, p179) Most passengers choosing an airline are looking for the least expensive direct flight to their destination. The buying process for an airline ticket for a few hundred dollars is ess complex than that of purchasing an aircraft for over one hundred million dollars. Many travelers have a preferred airline and do not shop around for deals.They use the preferred airline and earn air miles towards free flights. As for me, I do not have a preferred airline, however I do enjoy Southwest because of first come first serve seating. Yet, most travelers will look at price first, direct flight possibilities, and airport location before appointment a flight. There is little thought that goes into aircraft options when a ticket is purchased. What marketing recommendations would you make to McNerney as he continues to try to resolve the problems with the 787 Dreamliner program?McNerney needs to stay fully involved in the operations of the Dreamliner to ensure all suppliers and manufactures are completing production on time. Performance reviews of the suppliers must be taken in earnest and the decision to drop or modify the arrangement must be made in a timely fashion. With 70 percent of the work being outsourced to dozens of partnering firms, he cannot be blinded by incomplete or inaccurate production. The longer it takes to assess the supplier performance the longer the delay in production and delivery will be for the Dreamliner.