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The rival of Turkish Airlines may be seen as Pegasus Airlines in the domestic market which has followed market penetration as growth strategy and targeted on economy class of passengers of Turkish Airlines as well.
Competition in low-cost airline industry has heightened due to penetration of Anadolu Jet into target market of Pegasus Airlines as a response to existence reason of Pegasus Airlines.
Within this intense competiiton, both of the airline companies offer sales promotions, sales discounts and allowances, advertisements, sponsorships, club membership priveleges to improve customer loyalty, brand equity, brand knowledge etc.
That has contributed to the efforts of competitors to name the airline as oligarchy. It is essential to create an open environment and remove the governmental pressure to retain the leading position among competitive forces.
The airline needs to have a more dynamic structure to deal with frequent promotions of Pegasus Airlines. Corporate Club is a critical factor to gain customer loyalty among higher classes of passengers.
It would reinforce to retain the target market of the airline through private offerings for the corporations. This campaign would be directed through two divisions; one for business class, the other for comfort class.
They would be involved in this campaign with a less range of offerings and promotions and a less annual flight expenditure rate would be demanded to broaden the network consisting of small and medium sized companies.
The system requiring to gain the miles to take a free flight will be functioning so slowly against dynamic structure of the competitive campaign which offers to use the flight points for sales discounts at any time.
For that reason, Turkish Airlines would need to take a step to transform the current membership strategy into a practical program offering innovative priveleges.
Within the vision of becoming a global force in the airline inudstry, Turkish Airlines would emphasize on cultural values to increase the recognition of Turkey as a tourist attracting destination.
The remarkable advertisements would refer to cultural values which would reveal the impression of dignified national flag carrier.
That would prevent Pegasus Airlines from becoming a market challenger directly against Turkish Airlines and force them to deal with the subsidiary.
But AnadoluJet has to follow an offensive strategy to compete increase of remaining stable. Till now, promotion strategy of the airline has not met the expectations.
The growth potential of this subsidiary would be presumed through additional services provided by Turkish Airlines which would turn it into a more cost-effective airline.
Brand recognition is to be increased as well which would be obtained with sponsorship dealings, membership camgaings, all-in-one services.
The firm would broaden destination network and expand the domestic share. It would be a significant movement to add some free services included in ticket fares since they are among significant factors affecting personal choices of the customers.
Pegasus Airlines needs to gain permittence for international flights and the period of this procedure is unpredictable. In addition, top management would strive to remove current barriers with lobbying activities.
The dealings with different companies to improve the recognition of the campaign should be taken into account. CepFly promotion by Vodafone and Pegasus Airlines would be a pattern for the next ones.
The dealings with hotels, car rental firms should be diversified to attract new customers to compete with Turkish Airlines. The biggest threat against Pegasus Airlines seems to be Anadolujet.
The low-cost policy followed against Turkish Airlines would be replaced with differentiation policy against AnadoluJet. Improved service quality, emphasis of comfort would be critical factors to be increase perceived value by the customers.
Pegasus Airlines has been initiator of low-cost policy and the firm has acquired a rising growth rate, a bigger fleet through this strategy and may be accepted as a rising threat against Turkish Airlines.
On the other hand, Turkish Airlines has focused on forming subsidiaries in additional services such as catering, refueling, ground, training, maintenance services to decrease the expenditures and create additional resources to fund the airline and two more airlines have been added to brand portfolio.
Turkish Airlines seeks to retain market share by differentation emphasizing on comfort and Anadolujet, the subsidiary of Turkish Airlines as low-cost carrier, has been a new entrant to capture the market share of Pegasus Airlines.
The other subsidiary, SunExpress, mainly focuses on expatriates living in Germany and the high potential of tourist attraction from Germany has been noticeable as well.
In order to compete with this airline and target group of customers, Pegasus Airlines will found a joint venture named AirBerlin Turkey with the partnership of AirBerlin.
In addition to these efforts, Turkish Airlines has broadened global sponsorship dealings to reinforce the brand equity and awareness around the world.
Through this vision, dealings with giant clubs, celebrities of the sports world have been carried out.
Both of the airlines have been pushing high in promotion efforts by offering club cards, priveleges, sales discounts with brand new campaigns.
As it seems, the airlines will be in search of the ways to increase brand equity, to acquire customer loyalty, to attract new customers, to expand market share of air transportation, to lead the market.
Due to broad experience in the industry, higher customer loyalty and customer satisfaction, availability in different classes within a broad range of destinations, Turkish Airlines would be evaluated as the leading airline ar present, but the rising growth rate compared to the others of Pegasus Airlines is a signal to view a different table in the future.
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