Customer Perspective
In order to measure the successfulness of Boeing to its customers, we need to look at its
customer relationship management (CRM) system and its market share. By analyzing Boeing’s
market share and CRM system, we can see how the company performs in long run form the
past. A high market share generally means the product is well accepted by the targeted
consumer group, and vice versa. In addition a substantial and well maintained CRM system can
keep customer’s loyalty and establish a good cooperate brand image.
Objectives
Objective 1 : Increase Market Share
Boeing and Airbus dominate the commercial aircraft market; therefore, if Boeing wants to
increase its market share in this industry, it must gain it from Airbus’s share. The following tables
show the variation of Boeing and Airbus market share in orders and deliveries of the last 5 years:
Orders
2010 (3 quarters)
Boeing 484 (51%)
Airbus
465 (49%)
Deliveries
2010 (3 quarters)
Boeing 386 (48%)
Airbus
417 (52%)
2009
142 (34%)
271 (66%)
2008
662 (46%)
777 (54%)
2007
1413 (51%)
1341 (49%)
2006
1044 (57%)
790 (43%)
2009
481 (49%)
498 (51%)
2008
375 (44%)
483 (56%)
2007
441(49%)
453 (51%)
2006
398 (48%)
434 (52%)
**Data is gathered from Boeing and Airbus Official Website
Market share of the two aircraft manufacturers can be determined by comparing their order
and deliveries rate. According the tables, both companies’ orders and deliveries rates are about
50:50. If Boeing wants to increase its orders and deliveries rates, it can invest on manufacturing
technology and increase marketing/promotional campaign. By investing more on manufacturing
facilities, Boeing can increase its production capacity, which means that the constructing time
per aircraft can be shorten; in addition, by increase performing marketing activities, Boeing can
attract/appeal to more potential customers in order to increase the order rate. Since the
competition between Airbus and Boeing is intensive, our expected market share gain is 1% in 2
years.
Objective 2: Expand into new target market segment
While the current target market of traditional major national airlines is saturated, Boeing needs
to expand and appeal to newer airlines. First of all Boeing needs to find out which geographic
regions have the greatest growth in aircraft orders. In order to do this, Boeing can look through
the past sales record and identify them. Then a detail demographic and geographic marketing
analysis on those regions is needed because a new market entry strategy may be needed.
According to the orders information form Boeing’s website, we have constructed the following
table to illustrate the demographic distribution of orders through November 23, 2010:
North
America
Alaska
Airlines - 2
South
America
GOL
Airlines 20
American
Airlines - 35
LAN
Airlines 1
Continental
Airlines - 7
Midwest
Airlines - 1
Europe
Africa
Australia
Middle
East
Azerbaijan
Airlines - 3
Asia
Other
ALC - 54
Ethiopian
Airlines 10
Virgin
Blue
Airlines 41
Air Austral 2
Luxair - 2
Emirates 30
Air China 24
Business Jet
/ VIP
Customer(s)
-3
FedEx - 8
Norwegian
Air Shuttle
ASA - 15
Turkish
Airlines 20
Qatar
Airways - 2
BOC Aviation
-8
GECAS - 40
Royal
Jordanian 3
Saudi
Arabian
Airlines 20
Somon Air
-2
Cathay
Pacific
Airways - 6
Okay
Airways
Company
Limited - 10
Russian
Technologies
- 50
SpiceJet - 30
Xiamen
Airlines – 10
140
Unidentified
Customer(s)
- 25
Southwest
Airlines - 25
United
Airlines - 25
95
21
91
10
41
60
76
Based on the table above, Asia seems to have the greatest potential growth in orders in the
future and Boeing may consider invest more in searching and marketing in Asia in order to
achieve the growth of sales.
Objective 3: Increase the number of repeat customer
Many airlines may have large demand in additional aircrafts, but they do not have the significant
fund to process the one time purchasing, so Boeing offers leasing and other finance options to
finance its aircrafts. In order to make current customers transform into future/repeat
customers, a customer loyalty program is needed. We suggest that the customer loyalty
program will offer lower finance rate and additional after sales service/warranty to clients if
they continue to use Boeing’s products and services. Our target is to increase the customer
return rate by 5% in 3 years. The target return rate is low because the commercial aircraft
manufacturing market is competitive. If Boeing loyalty program is not attractive, customers are
most likely going to choose Boeing’s competitor – Airbus. The lag indicator of this objective is to
compare the rate of customer return after the new loyalty program with the current year rate.
Objective 4: Increase customer satisfaction level
Customer satisfaction level can directly affect Boeing’s brand image, its reputation, and the rate
of return customers; therefore, Boeing should consider carrying out a detail quantitative and
qualitative analysis to its customer. The examination group should include not only the top
management of airlines, but also personals that work closely or use extensively of Boeing’s end
product. Basically, the analysis involves two targeted groups: the airlines’ staff and the
customers of the airlines.
We suggest analyzing the airlines’ staff because they are the first group of people that work with
Boeing aircraft. By gathering feedback from them, Boeing can increase its understanding toward
the satisfaction level of the after sales service of the company is providing. For the airlines’
customers, Boeing needs to know how they feel about Boeing’s aircrafts in order to gain
improvement in products’ development. The customer satisfaction level analysis will start at the
beginning of 2011 and continue until the next year. When the result of the first year is gathered,
the after sale service support & training program will take place. By comparing the result that
will be collected after performing the program, Boeing will see if there is improvement in
between the two years, and our targeted rate of increased satisfaction level is 5% over the two
years.
The balance score card
Objectives
Measures
Target
Increase market Share
Compare Boeing’s New order
and Deliver Rate with Airbus
Order and Deliver Rate
increase by 1% in 2 years
Expand to New Customer
Group
Identify which Geographic
Region has the Highest
Growth in Sales
Increase the number of
repeat Customer
# of repeat customers
Increase Customer
Satisfaction Level
Compose Detail Quantitative
and Qualitative Consumer
Analysis
Find out new target
segment then search on
it
Customers return rate
increases by 5% in 3
years
Increase Customer
satisfaction level by 5% in
2 years
Initiatives
Invest on
Manufacturing
Technology and
increase
marketing/promotional
activities.
Detail Demographic
and Geographic
Marketing Analysis
Customer Loyalty
Program
After Sale Service
Support & Training
Program