“Sucked dry: For the first time, Mango Airlines’ dire financial situation is revealed as business rescue looms”

By Ray Mahlaka• 27 July 2021

Mango, a state-owned airline, last recorded a profit in 2018 despite several efforts by the board and management to turn its fortunes around. The low-cost airline plunged into a loss of R497-million in 2020, a disruptive year for the wider aviation industry ”

Assume that you are the marketing research executive for Mango Airlines. Ticket sales have declined drastically due to the COVIDI9 pandemic. You have been requested to submit a marketing research report to the board members of the Airline. You may use the following link to commence your research: https://www.dailymaverick.co.za/article/2021-07-27-sucked¬thyfor-the-first-time-mango-airlines-dire-financial-situation-is-revealed-as-business-rescue-looms/

Based on the problem definition, approach, research using secondary data, as well as the results of data analysis and interpretation, a report is required to be constructed.

The following Objectives have been identified by the Airline:

1. Increase in market share
2. Continued long-term growth
3. Increase in profitability
4. Achieving better operating efficiency
5. Higher capacity utilization
6. Increase in customer satisfaction
7. Provision of reliable service
8. Improving employee productivity

The following steps are to be considered when compiling the report:

1. Define the nature and extent of the marketing problem / opportunity/ situational analysis.
2. Identify/ set research objectives.
3. Determine the research design.
4. Collect the secondary data.
5. Prepare and process the secondary data.
6. Interpret the results and compile the research report.
7. Propose recommendations to the Board of Management of Mango Airlines.

To perform the steps highlighted above, a situational analysis, or internal and external marketing environment analysis, ought to be carried out. This creates a picture of the internal and external situation surrounding the problem or opportunity. The situational analysis gathers information about:

8. The marketing objectives and strategies of the Airline: the product, distribution, price and marketing communication. strategy.
9. The resources of the Airline: more specifically its strengths, weaknesses, opportunities and threats..
10. The enterprise market: in other words, specific information about the customers, the market structure and competition..
11. The general situation in the external environment: including the economic conditions, socio-cultural factors, technological. developments and political action (macro-environmental factors).

Answer ALL the questions in this section. Question 1

1.1  Introduction/ Executive summary  (10 marks)

1.2  Research Report  (70 marks)

1.3  Conclusion (10 marks)

1.4  Referencing (5 marks)

1.5  Presentation  (5 marks)

Answers to Above Questions

1.1 Introduction

The impact of covid-19 is massive on the airline industry, as the majority of the airlines suffered huge losses because of their operations. The situation of Mango Airlines also looks critical and the business is therefore eyeing for increased market share and profitability in its operation. This requires the consideration of complete environmental analysis so that appropriate strategies can be developed to achieve effective organisational performance……….