Boeing’s Positioning and Targeting Strategy

Boeing is predominantly known as an Aerospace and Defense Company. Because Boeing has a very specific key demographic and specific market that they specifically target, many of their products are based on the specific needs of their customers. Because Boeing is predominantly a player in both Aerospace and Defense their target market falls solely on both ends of that spectrum.

Boeing’s Positioning and Targeting Strategy:

Targeting:

Boeing’s targeting is quite limited. Unlike B2C, in B2B there is very rarely a mass market and Boeing is no exception to the rule. The companies targeting is aimed mainly at its existing clients and its profit margins are squeezed by these well knowledgeable clients mainly because they themselves are professionals and know the cost of production for airplanes. Boeing has therefore been forced to offer certain trade discounts and other measurable benefits to its clients with whom it has a strong relationship albeit their clients only have two main suppliers.

Boeing’s existing targeting strategy as aforementioned is aimed at its existing clients. These clients have been discussed in the segmentation section of this report. They are Boeing’s corporate clients and they include commercial airline companies, governments and governmental agencies and other non-governmental organizations (N.G.O’s) such as private companies. Boeing’s most valuable target is the commercial airline companies it serves.

There are many types of commercial airplane buyers but the main two are essentially strictly organized short distance low capacity airlines such as Ryan Air and all of the “others”. The reason for this uneven division is because although there are more of the “others” operating worldwide a lot of Boeing’s recent revenue has come from the short distance low capacity airlines due to their profitability. Boeing’s targeting is now familiarized with a couple of repeat customers that continue to boost Boeing’s revenue. Boeing targets its low capacity short distance clients through major financial and aviation trade publications with its 737 family mainly and uses clever advertising like its recent 737 advertisement which read “The most comfortable planes in the world are those that leave the gate on time .” This type of advertising appeals immensely to low cost operators as the longer they have they’re plane stationed on the ground the more costly it is for them. Leaving the gate on time is part of the low cost strategy.

Positioning:

From a buyers point of view there are many criteria that apply to buying a new plane from Boeing. Two main criteria that describe Boeing best are its capacity and distance. These criteria are relatable to Boeing’s business buyers because for today’s airline companies the choice is whether or not to operate a