Iberia Airlines Marketing Questions

Iberia Airlines

1. Dupuy, Leahy, and Bright all had three fundamentally different negotiation strategies. Dupuy, first, had most of the power in the negotiations considering he was the buying power. Both Leahy and Bright were trying to impress Dupuy and win Dupuy over in order to make their sales. Dupuy wanted to get the lowest possible price while still maintaining a lot of top benefits. Essentially, Dupuy's goal was to ultimately maximize profits for Iberia, whether that came in initial discounts or profits on the back end. Bright tried to gain personal appeal in his negotiations. He frequently had meetings with Dupuy and tried to show that doing business with Boeing would not be a mistake. Leahy, instead, focused on lowering the price as much as possible. Leahy knew that if Airbus could hit the price mark Dupuy provided, Airbus would win the deal and he was right.

2. Bright and Leahy had very different approaches going into meeting with Dupuy. Bright's marketing strategy was to provide additional benefits the Boeing aircrafts could bring. By providing benefits such as more seats, less fuel consumption, etc…Bright looked to point out ways the Boeing aircraft could save Iberia money in the future. Leahy looked to point out price differences now and the fact that there is an existing relationship between Iberia and Airbus. Leahy pointed out that the Airbus model costs about $25 million less than the Boeing model while also drawing upon the fact that Airbus and Iberia already have a strong existing relationship. Dupuy was attracted by the idea of a consistent Airbus fleet and Leahy used that to his advantage.

3. There were a few key factors that ultimately pushed Airbus over the edge. According to the article, both companies were extremely close down to the very end. The price point, however, is ultimately what won it for Airbus. The lower price point and the fact that the rest