Air France: The Load Factor Puzzle in Business Class
(8 pages of text)
In late 2016, the marketing head at Air France India needed a strategy to acquire additional business-class customers. Although Air France India had been performing well in the economy-class segment, revenues in the business-class segment remained a challenge. Which customer group should the airline target to acquire more business-class travellers? How should the company increase its brand image for this target customer group? And how should the company reach out to these new customers? The marketing head also needed to decide whether the company should act alone and implement a strategy of direct marketing, pursue a partnership using a co-branding strategy, or utilize a combination of those options.
This case is suitable for both undergraduate and graduate courses in introductory and specialized marketing. It is ideal for use in discussions on direct marketing, international marketing, and the consumer behaviour of premium-class customers. Students will develop their analytical and strategic decision-making skills, specifically in terms of
- customer acquisition when targeting customers of premium services and products in an international market;
- co-branding and direct marketing of premium services and brands; and
- brand management, consumer behaviour, and marketing strategies in the Indian market.
India, Large, 2016
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