Prepare
To set the stage, read the following articles and consult the Green Airport
· The $: Air Service Development Fund (Warwick Beacon)
https://warwickonline.com/stories/4-airlines-get-3375m-to-promote-16-new-routes-irish-trade-mission-slated,127652
· The Challenge: How to… market new routes as an airline (Routes Online)
https://www.routesonline.com/news/29/breaking-news/270467/how-to-market-new-routes-as-an-airline/
· (Optional) Blog Articles for Marketing Ideas…Aviation Marketing Insights (Simplifying)
http://simpliflying.com/aviation-marketing-insights/
Scenario
You are hired as a marketing intern at Green Airport. It’s your first week on the job and your boss just walked into your office announcing the recipients of the Air Service Development Fund (Warwick Beacon). – a $3.375 million dollar incentive program to promote 16 new routes. The challenge is “airlines open new routes every day but don’t always market them effectively” (Routes Online, 2017, .para 2). Your boss has asked you to put your marketing knowledge to the test and develop a budget to assist one of the four airlines with a launch campaign to promote one of their new domestic air travel routes. The commercial route will transport both passengers and cargo.
Your budget to promote this launch was $200,000 (which included a 10% contingency for unexpected costs). As you develop the breakdown of estimated expenses, be sure to consider the role of public relations and aviation interest groups in your launch strategy. Thankfully, your superior management skills resulted in actual expenses of $5,000 under budget. Additionally, your boss said the anticipated revenue forecast after six months was $1,000,000. According to IATA. (2018)
https://www.iata.org/en/programs/cargo/
, on average, the cargo business generates 9% of airline revenues, representing more than double the revenues from the first class segment.
Six Months Later
Your boss asked for a summary of the launch event. Document the estimated and actual costs using the Budget Spreadsheet (xlsx)* Listed in the attachment section, and provide a rationale for the differences between the estimated and actual expenses. In a two-page business memo, answer the following question: Was the new route launch campaign a success? by referencing components within the budget spreadsheet (include as an attachment).
*Note: the template content (campaign tactics, income sources, and figures) are examples and should be updated during the planning process to align with your campaign strategy.
>Expenses
0.00
.00
Internet
$300.00 Estimated .00
$500.00 Total Estimated $500.00 Total Estimated $500.00 Total Estimated $600.00 Total Estimated $300.00 Other Total Estimated $200.00 Total Estimated Estimated Social Networks Traditional Media Publicity Miscellaneous Marketing Event Management Program Prizes 500 200 500 500 600 300 200 Actual Social Networks Traditional Media Publicity Miscellaneous Marketing Event Management Program Prizes 300 500 800 600 800 500 300
$3,800.00
Social Networks Traditional Media Publicity Miscellaneous Marketing Event Management Program Prizes 300 500 800 600 800 500 300
Made in Office 2007 for office2007.com
Launching a New Route for an International Airport Estimated Estimated 300 0
$500.00 200 .00
.00
100 $100.00 Estimated Estimated 300 $2,000.00 200 $2,000.00 100 $5.00 $500.00 Estimated Estimated 100 $20.00 $2,000.00 100 $50.00 $500.00 50 $5.00 $250.00 Estimated Estimated 400 $20.00 $6,000.00 300 200 $2,000.00 100 $500.00 Estimated Estimated Admissions Ads in program Exhibitors/vendors Sale of items 2000 8500 7250 15000 Actual Admissions Ads in program Exhibitors/vendors Sale of items 650 2750 1510 10000 Launching a New Route for an International Airport Estimated $32,750.00 $2,800.00 Total income Estimated Actual 32750 14910 Total expenses Estimated Actual 2800 3800 Turnitin Report Formatting Title Page Citation Outline
Launching a New Route for an International Airport
[Date]
Event Budget for Aiport/Airlines Partnerhip: (name of your airlines here)
Social Networks
Estimated
Actual
Actual Cost Breakdown
Twitter
$
5
0
$
300
Facebook
Pintrest
Other
Total
$500.00
Traditional Media
Actual
Newspapers
$
200
Magazines
Cable TV
Radio
Direct Mail
$200.00
$500.00
Publicity
Actual
Graphics work
$800.00
Photocopying/Printing
Postage
$500.00
$800.00
Miscellaneous Marketing
Actual Estimated vs. Actual
Telephone
$600.00
Transportation
Stationery supplies
Fax services
$500.00
$600.00
Event Management
Actual
Food
$800.00
Drinks
Supplies
Staff and gratuities
$600.00
$800.00
Program
Actual
Performers
$500.00
Speakers
Travel
Hotel
$300.00
$500.00
Prizes
Actual
Free Air Travel Certificates
$300.00
Other gifts
$200.00
$300.00
Total Expenses
Actual
$2,800.00
$3,800.00
* The numbers in each category are fictitious and have been provided as an example.
Income
Event Budget for Event Name: INCOME
Admissions
Actual Income Comparison
Actual
10
Adults @
$5.00
$1,500.00
50 Children @
$2.00
$
400
$
100
50 Other @
$1.00
$50.00
$2,000.00
$650.00
Ads in program
Actual
Actual
100 Covers @
$20.00
$6,000.00
50 Half-pages @
$10.00
$500.00
50 Quarter-pages @
$250.00
$8,500.00
$2,750.00
Exhibitors/vendors
Actual
Actual
50 Large booths @
$1,000.00
10 Med. booths @
$5,000.00
2 Small booths @
$10.00
$7,250.00
$1,510.00
Sale of items
Actual
Actual
300
Items @
$8,000.00
200
Items @ $15.00
$4,500.00
$3,000.00
100
Items @
$10.00
$1,000.00
0
Items @
$5.00 $0.00
$15,000.00
$10,000.00
Total Income
Actual
$32,750.00
$14,910.00
Profit – Loss Summary
September 18, 2008
Event Budget for Event Name: PROFIT/LOSS SUMMARY
Actual Profit vs. Loss
Total income
$14,910.00
Total expenses
$3,800.00
Total profit (or loss)
$29,950.00
$11,110.00
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