has been one of the best aircraft manufacturing company inthe world. The company manufactures various types of aircrafts whichinclude commercial airlines, rotorcrafts and military aircrafts.Additionally, the company offers maintenance services to theaircrafts that it sells to its customers worldwide. Today, thecompany has over 13000 commercial airlines across the world. Thecompany’s aircrafts are world class and use the latest technology.Canada is one of the countries where ’s products are widelyused. However, research has indicated that the commercial aircraftsare expensive and only cater for the first class citizens who havethe ability to pay for the services (Dunning, 2014). As a result ofthis, the demand for the commercial aircrafts remains low inCanada. It is therefore prudent for the company to introduce a newcommercial airline that will be able to cater for the low classcitizens in Canada such as farmers and the millions of low earners.
It is necessary for the company for launch a new small aircraftsthat can be used by the economy class and the low class people in thecountry. It is evident that there are numerous people in Canada whoare farmers and laborers who belong to middle class. It is evidentlyclear that the company will create a whole market that other aircraftmanufacturers are yet to notice. The small commercial aircrafts forthe economy class with a capacity to carry 45 passengers will be ahuge opportunity for . The aircrafts will have the ability tooperate within the country and also flying to the nearing neighborcountries (Luo, 2013). This will be a new product which call forvarious steps in managing the new product, marketing for the newproduct financial impacts for expanding into the production of thenew product.
The production of the new small commercial aircraft for the economyclass in Canada will require a new production plant. As a result, theproduction department will require new equipment, software andemployees. Therefore management of the new production unit will beextremely important. The production unit for this small aircraft mustbe located in Canada. The new unit must have an entire new managementteam headed by a chief executive officer. The executive officer mustbe held accountable for the implementation of the new product in themarket (Luo, 2013). The management team must carry out intensiveresearch in terms of the requirements of the small aircraft for theeconomy class in Canada. The management will be divided into variousdepartments including software development, quality assurance andassembling. Management teams will be led by leaders. The introductionof a new product in a market requires extreme care and effectivemanagement that will ensure the product is unique and penetrates intothe market successfully (Dunning, 2014). The chief executive officermust be in a position to direct the team tasked with the productionof the new craft. The team must produce an aircraft that will offerexquisite and satisfying experience to the clients at an affordableprice.
Marketing is another area that will require extreme care andprecision if the new product has to penetrate the market. Marketingmust be assigned to a team that is active and ready to overcome thenumerous challenges associated with introducing a new product in avolatile and competitive market. It is evident that there are otheraircraft manufacturers who produce small aircrafts for the middleclass in Canada (Luo, 2013). Therefore, the marketing team will havean enormous duty to market the commercial small aircraftamongst the middle class population in Canada. It is imperative forthe marketing team to carry out extensive research to find out themarketing strategies to be used. It is also critical for themarketing team to know the various channels to use to advertise andmarket the new product. Since the new product targets the middleclass, it is the role of the marketing team to come up withstrategies through which to advertise the product and the servicesoffered to them.
The marketing team must also involve the various airlines in Canada.These are the airlines that will offer the market for the newproduct. The marketing team must work with the airlines in order tomarket the product. It is worth remembering that onlymanufactures the aircrafts and also offers maintenance services, butdoes not operate any airline (Dunning, 2014). Therefore, the successof the product will largely rely on the airlines that operate inCanada. They include Air Canada, Air Canada Jazz, and WestJetairlines among others. These are the airlines that will purchase thenew product. However, the marketing team must ensure that theairlines realize the demand for small aircrafts for the middle classin Canada.
is a well-known and a worldwide respected company withbranches in over 20 countries. The marketing team must take advantageof the company’s reputation to market the new product. aircrafts have been one of the best and most safe in the entireworld. The marketing team must use this approach and good reputationto market the new product. aircrafts have also been praisedfor their comfort and state of the art technology. It is clear thatthe new product will not only offer comfort and safety, but it willalso be affordable to the millions of people belonging to the middleclass and the lower class in Canada (Dunning, 2014). In order tocompete with the other manufacturers of similar aircrafts, it isvital for the marketing team to use the specific attributes of theaircraft that form the selling point. For instance, safety,technology and affordability are some of the elements that themarketing team must exploit. Since the small aircrafts will have anextremely low consumption level, it is the role of the marketing teamto use it as the selling point.
Whereas the marketing team may apply the necessary strategies anduse the right channels to market the new aircraft, it is worthstating that the new product will take a relatively long time beforereaching the breakeven point. Although the manufacture of smallcommercial aircrafts for local flights is a new phenomenon in Canada,it is clear that there are other manufacturers who are alreadymanufacturing such aircrafts. It is imperative for the marketing teamto be extremely patient if they have to realize the fruits of theirefforts (Dunning, 2014). One factor that is constant is that themarket is available. The biggest issue is how to break into themarket. Marketing techniques will play a huge role in selling thesmall commercial aircraft.
It is clear that marketing a new product in a foreign country maypose numerous challenges as far as finances are concerned. Thecompany must commit enormous resources into the new venture in thehope that the product will sell and the company will realize thereturns on investment as soon as possible. It is evident that themanufacture of a new small commercial aircraft will require newmaterials, extra staff and a vigorous marketing exercise that will beextremely costly to the company (Luo, 2013). Additionally, marketinga new product in a foreign country might also pose various financialchallenges emanating from the various legal requirements (Dunning,2014). However, in this case, the company has a branch in Canada andtherefore it will be slightly easier to introduce and market the newproduct. It is abundantly clear that the company’s products arewell known in the said country and therefore will have an easyfinancial time launching the new product.
The expansion of the new product to Canada will be a great ventureby the company in light of the opportunity such a venture offers. Itis clear from research that small commercial aircrafts are in demandin Canada as a result of the increasing population of the middle andlower class citizens. The new product must be subjected to a thoroughmanufacturing process where safety and comfort elements of theaircraft will be addressed. Marketing the new product must be doneextremely well where the marketing team will concentrate on theselling points for the aircrafts worldwide. It is clear thatthe middle income and lower income farmers and laborers in Canadacannot afford the services of the luxurious big commercial airlinesin the country.
Dunning, J. H. (2014). New challenges for internationalbusiness research: Back to the future. Cheltenham, UK: EdwardElgar.
Luo, Y. (2013). Entry and cooperative strategies ininternational business expansion. Westport, Conn: Quorum.