Ales Airlines Director Cargo Srishti Malkotia's Reports




Marketing plan 

The marketing of air cargo is basically selling up the space of the aircraft as much as possible to gain maximum profits. To understand and construct the marketing plan we first will understand the 4Ps of marketing mix.
Product 
Price 
Place 
Promotion 
PRODUCT 
We will mainly have 2 products. Basic product and additional product. Our basic product will be known as “airport to airport”. As the name suggests it will provide shipping from one airport to another. This service will include the following services-
• Warehousing facilities
• Documentation work ( Manifest, Master Airway bill and House Airway bill)
• Flight planning  (direct flight or transit flight)
• Shipping
Our basic product will utilize the space of the aircraft in an efficient way. We can also provide specification to our basic product by giving it a time definition. The customer can choose that option of time definition as per his/her discretion. This can prove to be very profitable.
Normal delivery- 5-7 days
Fast delivery- 3-4 days
Express- 1-2 days
Our additional product will be a Door to Airport, Airport to door service or add the Customs procedure providing. Airlines found that these are creating Product Differentiation and lead them to become the Market Leader, but the procedure on ground such as custom procedures is quite difficult for airlines. Then the airline can hire outsource, which is freight forwarder, to do it while other option is to coordinate with the integrators. 
PRICE
We can set two rates for our product
1. Official rate 
It will be as per International Air Transport Association (IATA). This rate of each airline is not different so it does not make competition in the market. It is calculated by weight (per Kg or pound) and distance. There are many types of official rate-
• Normal rate 
• Quantity rate (high volume cargo)
• Specific commodity rate (when government promote to transport same product)
• Class rate (for high value products such as gems, gold, human body, life stock, magazine).

2. Market-driven rate 
This rate will be set by us to attract customers. This rate cane be used for marketing. This is generally set according to the competitive situation, season, and flight frequency. 

Law of price setting
• Pricing to stay profitable- Airlines like to transport the high yield product that are time definition cargo, express cargo and door to door cargo, and use the contribution (profit) to be the indicator of success. Normally the airlines gain the contribution about 40-5-% of revenue. 
• Pricing to generate business- This pricing emphasizes the max payload to make no empty flights.

PLACE
The air cargo marketing is difficult for airlines because the airlines do not sell the load to exporters directly. The exporters buy the load from large and small freight forwarders. Some freight forwarders are large consolidators who collect the cargo from small freight forwarders. Then the airline should consider that they should make the marketing for exporters or freight forwarders
The freight forwarders are both airlines’ customers and airlines’ competitors. Nowadays, some airline change their business model from compete with the freight forwarders and integrators to become a partner of them to make mutual profits. 
PROMOTION
The customer will not come to use the air cargo service to us although we provide high quality services because the customer do not know the quality of our services. Hence it becomes our duty to let the customer know about our quality with help of promotions. We can use the following 5 promotional tools.
1. Public Relations- We can release our annual reports, conduct our seminars and let people know about our targets through speech which will highlight the tasks that we have achieved and the goals that we have set for the future. By this the customer will get to know where we stand in the market. 
2. Advertising- It is one of the most powerful tools of promotion. Printing of advertisement which can reach general public will gain their attention to our company. 
3. Direct Marketing 
4. Sales Promotion- To attract more customers we can have discounts and to sustain the current clientage we can have special privileges for frequent flyers.  
5. Personal Selling- We can make personal sales call to let people know about the current discounts that we have. This will enable us to grab a huge number of market.

Srishti Malkotia 
Director of Cargo Department 
Ales Airlines Inc. USA 
Bio- 
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