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Moreover, CepFly campaign, a partnership with Vodafone, is a supportive promotion to reward the passengers with flight points which could be used as sales discounts afterwards.
Within the global scope, that would be comparedly harder. Pegasus Airlines would be identified as a rising threat with higher growth rates than the average of the industry in domestic flights.
Pegasus Airlines has followed the way of blue-ocean thinking by determining unoffered factors to the public and created value innovation.
The issue Pegasus Airilines has to face is that customer loyalty is not as desired in the target segment of the company.
On the other hand, Turkish Airlines has a high degree of customer loyalty for higher classes of pasengers and thrives to focus on target market of PA through the fighter brand of AnadoluJet.
Customer base of PA is not valuable as the customer base of TA and vulnerable against strategy of AnadoluJet whereas the customer base of TA is much more valuable but the vulnerability is existent for economy class of passengers.
Total market expansion has been realized through the period of liberalization removing the barriers for new entrants into airline industry. New customers have been attracted with price discounts, the frequent consumption of current customers has been provided by offering additional services and priveleges.
Promotion factor of marketing mix has been the key point in both of these efforts. Turkish Airlines has been aware of retaining market share in the domestic industry whereas expanding market share in the global industry.
Flank defense is applied against Pegasus Airlines by placing AnadoluJet as a low-cosr carrier and mobile defense is applied by broadening destination network around the world which would reinforce Turkish Airlines to improve possible future centers.
Pegasus Airlines has applied flank attack in a segmental dimension targeting low-cost positioning and excluding different classes.
Due to limited options in the market, the suppliers have a great impact on the airline indutsry. The impact is even greater on Pegasus Airlines due to the limited variety of airplane types.
Only two types of Boeing airplanes are used in air transportation services of Pegasus Airlines. Through the new period of heightened competition in the domestic airline industry, the companies are seeking to retain and expand market share from which buyers benefit by taking flights with lower costs.
But the bargaining power would be less influent in global flights. Competitors such as AtlasJet, Pegasus Airlines has held positions in the market.
On the other hand, government regulations, alliances between national flag carriers in disfavour of private companies, government incentives reinforcing the position of Turkish Airlines within global scale through trade agreements, high capital requirements would decrease the possibility of new entries into the market.
The intense competition has led to shrinking revenues and declining ticket fares compared to the past years. 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.
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