Product Strategy of the British Airways

Product Strategy of the British Airways

1.1 Introduction to product strategy

Product is the most important component in an organization. Without a

product there is no place, no price, no promotion, and no business.

Product is anything that can be offered to a market to satisfy a want

or a need. It is the core ingredient of the marketing mix and is

everything favorable and unfavorable, tangible and intangible received

in the exchange of an idea, service or good (Kotler 11th edition,

2003). British Airways is a business offering service products,

flights across destinations, in the transportation industry. Service

is an intangible product involving a deed, performance or effort that

cannot be stored or physically processed, were customers directly

participate in the production process.

Product strategy is therefore very vital for the organization's

success. It needs to be developed and manage very careful in order to

be successful. British Airways product strategy includes flight

services, quality of flights, various destinations across Europe and

the world, executive class, business class, speed, security, support

facilities and years of experience. It provides the basic product and

various alternatives to satisfy all the different customer needs.

1.2 Product Levels

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If we have a brief look at Kotler's five-product levels theory, there

are five products levels in regards with the quality and the

expectation of the customers and each level adds more value to the

customer (Kotler 11th edition, 2003).[1]

1. At the beginning is the core benefit, the fundamental service or

benefit that the customer really buying. The most fundamental level is

the core benefits; what the customer really buys. In British Airways

customers buying flight tickets to satisfy their basic need which is

to flight from one destination to another.

2. The second level is the basic product, were customers book their

seat on a schedule flight to a particular destination. British Airways

flies to the busiest airports in Europe in 95 different cities and to

58 other destination across the world. It is by far the busiest

Airways company in the world operating a big number of airplanes

3. The third level is the expected product in other words the

condition buyers expect when the purchase their tickets. In British

Airways customers expect to have an allocated seat, meals and drinks,

on board entertainment good service, in contrast with Easy-Jet were

customer just buy a ticket with no allocated seat and without on board

service of food and drinks.

4. The fourth level is the augmented product that exceeds customer

expectation. The augmented product is the extra services that British

Airways provides and the support facilities. It has three different

executive classes for different needs: the blue, the silver and the

gold. For the member of the silver and gold there are executive

lounges in all the main airports where customers can relax away from

the noise and eat something or even have a shower and go to the gym.