ALEX RANGEL & ROBERTO GUDIÑO

View more work at: www.robertogudino.com

Emirates Airlines was founded in 1985 and is fully owned by the United Arab Emirates

(UAE) government of Dubai through the Emirates Group. The birth of Emirates Airlines came

about from a dispute between Dubai’s rulers and the owners of Gulf Air (Gulf), a regional

airline, as Gulf was reducing its flights to Dubai in the early 1980s.

Emirates Airlines is an independent and self-sustained company within the Emirates

OVERVIEW Company Synopsis

Business Model

Emirates flies to over 120 destinations in over 70 countries. The airline’s global reach has helped

turn Dubai into a commercial and aviation hub. From its base in Dubai, Emirates

operates over 1,200 flights per week across six different continents and has over 170

aircraft in its fleet with plans to add additional large capacity Airbus and Boeing aircraft.

Destinations

120Countries

70Flights

1,200Continents

6Aircraft

170

OVERVIEW

Destination MapOVERVIEW

Business Model

An integral part of Emirates Airlines business model is the company’s strategic use of its

operational base in Dubai; a large portion of their current flights center around Dubai

International Airport (DIA) which allows the company to experience certain cost benefits. Since

the government of Dubai owns the airline, Emirates profits from heavy government

subsidies, government regulated labor costs and fuel prices below typical market value which in

total help the airline maintain a positive earning year to year.

OVERVIEW

Subsidies Fuel PricesLabor Costs

Branding - LogosOVERVIEW

1999, English serif typeface, Dubai roots

1985, Arabic calligraphy

Branding - SlogansOVERVIEW

“Dubai ... The Perfect Holiday Blend.” 99

“Hello Tomorrow.” 12

“Fly Emirates over 100 Destinations.” 02

Branding - SponsorshipsTo expand their international brand

appeal, Emirates began sponsoring

multiple sport franchises and

cultural events which included:

soccer, rugby, sailing, horse racing,

cricket, symphony orchestras as well as

film and jazz festivals.

Two of their most notable and highly

visible sponsorships came when Emirates

Airlines helped finance both the 2010 and

2014 FIFA World Cup Finals.

OVERVIEW

SSize, spread operations across markets

Diverse portfolio with 132 destinations

Substantial brand awareness

Strong backing from UAE and Dubai Gov’t

W

TO

OVERVIEW

Substantial amount of indebtedness

Lease liabilities approximately $9.7 million

Difficulty entering developed regions

Not a member of any aviation alliance

Developed substantial global partnerships

60 country agreement with the UAE

Opportunity to expand its operations

Americas lucrative new area for growth

Competition in low cost carriers

Carriers such as China Airlines, Etihad

Airlines and Qatar Airways

Volatility in aircraft fuel prices

Government Ownership

Because of government ownership interest in Emirates, the government can artificially

manipulate fuel and labor prices as well as wave airport fees in order to help

streamline production costs. By repressing operating costs and having a commercial fleet that

can service most of Europe, Asia, Africa and the Middle East without refueling has

given rise to Emirates Airlines success.

OVERVIEW

MarketsOVERVIEW

MIDDLE-EAST INDIA EUROPE

CompetitionOVERVIEW

Growth Factors

Emirates’ success has been spurred by three independent factors:

First is their favorable geographical location which places over four billion

people within an eight-hour flight from their central hub in Dubai.

Access to cheap fuel through subsidies.

Emirates is owned by Emirates Group which is state property of the UAE allowing the

company to receive subsidies which help keep operating costs low.

In order to continue its growth, Emirates needs to rely less these factors and find new markets.

OVERVIEW

New Markets

Emirates Airlines has a notable presence in Africa but has been reluctant to grow its

presence there due to practical concerns regarding financial return on investments when dealing

with a politically unstable African market.

Europe has been a practical market to expand into because of its wealth and geographic

access, it comes with heavy regulation and competition from legacy airlines that have a

well established presence. To continue their financial growth Emirates needs to penetrate

into new markets that have a fiscally viable consumer base.

OVERVIEW

Target SummaryEmirates currently targets both upper-middle class

and upper class business and leisure travelers with incomes

over $75,000. Emirates’ business and leisure travelers

expect both world-class service and accommodations across

various touch points including lounges, airplane seating,

and in-flight services.

Our proposed target market for expanding into a new region

falls within this socio-economic range. Because

Emirates Airlines has a small presence in Latin America

relative to other destination regions in its portfolio we are

OVERVIEW

Current TargetOVERVIEW

VALS Categories Claritas/PRIZM Categories

Innovators Wealthy Older Family Mix

Innovators are typically wealthy, mature,

commanding individuals with strong

self-esteem. They are very engaged

consumers, and their purchasing

behavior reflect sophisticated tastes for

upscale, specific products and services.

This is a very affluent group that typically

have a wide range of social, economic and

lifestyle achievements such as high income,

advanced degrees, and complex and

sophisticated tastes. A majority of the

members of this group reside within large

metropolitan areas and are typically

married with few children. Their age ranges

from 45-64 and they have an average annual

household income of $88,837.

Proposed TargetOVERVIEW

VALS Categories Claritas/PRIZM Categories

Achievers Upper-Middle Younger with Children

Achievers have goal-driven behaviors

and a profound sense of responsibility

toward their family and career. Their

social lives are structured around family,

religion, and success at work. Achievers

like to live ordinary lives and are not as

quick to adopt new trends as Innovators.

These individuals serve as the midpoint on

the socioeconomic scale. This group is very

representative of the stereotypical

American household from past generations.

They are frequently upper-middle-class,

young married couples with children.

Analysis

SolutionEmirates Airlines has only twelve destinations in North

and South America with only three of those terminals

being in South America. This represents an opportunity

for Emirates to continue expansion into North America

with long-term potential for expansion into key South

American markets.

North America is the next logical step in expansion

for Emirates because of its current market presence in

the region. In addition, North America has substantial

purchasing power and a demographic that does extensive

international traveling.

Current Destinations

ANALYSIS

Gateway to South AmericaMiami has a vibrant economy that centers on

international finance, commerce and trade. According to

the Globalization and World Cities Study Group &

Network, Miami became listed in 2010 as an “Alpha”

city which indicates its status as a global center that

links major economic regions into the world economy.

The 2010 US Census reports that 61.7% of the city of

Miami is of Hispanic or Latino origin and that 59% of

the residents are foreign-born according to the United

Nations Development Program.

Proposed Destination

Miami

ANALYSIS

Gateway to South America

This local market receives both heavy domestic and international traffic due to it’s perception

as a subtropical vacation and holiday destination. It receives an exceptionally high number of

Hispanic and Latino travelers coming from South America.

While the city of Miami has a rich cultural and historical tie to Latin America it also benefits

greatly from its status as a domestic market within the United States. Miami is an ideal

location for expansion for Emirates Airlines because of its diverse international traffic flow, the

potential to gain access to key South American travelers while also profiting from a wealthy

American target consumer.

ANALYSIS

Primary Research

• Business people from the Miami-Dade metropolitan area

• Online survey distributed to local business workers

• “Audience” feature to customize research respondents

• Sampled 51 respondents living within Miami-Dade

• Self-identified as business and financial operation occupants

• Fifteen survey questions regarding behavior & preferences 51Respondents

15Questions

ANALYSIS

Findings: Destinations

51%

Asia

Middle-East

Europe

Latin-America

Pacific

35%

53%

2%

4%

6%

International Travelers

ANALYSIS

Findings: Amenities

Gourmet Dining Walk-up Bar WiFi Lie-flat Beds In-Flight Entertainment Seat Comfort

59%

24%

10%8%

0%0%

ANALYSIS

Findings: Brand AwarenessMagazines

Newspapers

Television

Blogs & Online Articles

Billboards

Social Media

Word of Mouth

Google Search 10%

27%

10%

6%

33%

4%

10%

ANALYSIS

Findings: Tone and Lifestyle

Competency Sophistication Sincerity

16%

29%

35%

ANALYSIS

Findings: Tone and Lifestyle

Adventurous Independent Family Oriented

49%

29%

14%

ANALYSIS

ANALYSIS

Messaging

Because Emirates is a luxury brand with a relatively high purchase value the messaging will also

have to reinforce the merits behind purchasing such a high valued choice. This is where

accommodation and inflight service will need to be highlighted and represented as the superior

choice compared to the competition. Features such as comfort and inflight entertainment will be

very important to appeal to family dynamics.

It is advisable that Emirates Airlines uses the luxuries and accommodations of their economy class

as a focal point since this is the likely choice of the target demographic. The brand personality

should come across as being skilled and qualified as well as having a sense of sophistication.

ANALYSIS

Channels

For distribution, Emirates Airlines should begin with a traditional media strategy. Television is an

effective way of targeting large amounts of people as well as easily portraying the values

mentioned above. Television also allows marketers to specifically target the Hispanic and Latino

components of the city by placing advertisements on Latino channels.

This is an expensive endeavor but we believe the cost advantage of acquiring an international

consumer base with ties to Latin America is worth the investment. This will provide Emirates with

substantial long-term growth in a new market.

ANALYSIS

ExecutionsANALYSISANALYSIS

ANALYSISANALYSIS

ANALYSISANALYSIS

ANALYSISANALYSIS

ExecutionsANALYSISANALYSIS

ANALYSISANALYSIS

ANALYSISANALYSIS

ANALYSISANALYSIS

Conclusion

Emirates Airlines is in a position to secure their financial growth if they make the right market

decisions now. Even though Emirates has a modest presence within North America they need to

continue their growth while also laying the foundation for further expansion into South America.

South Florida and specifically Miami can be a critical strategic location to secure that growth for

the coming years.

ANALYSIS

Thank you

View more work at: www.robertogudino.com