Building Customer Satisfaction

and Loyalty of
Biman Bangladesh

1 Kaushik Ahmed Reza, MBA 47E, Roll: 03

2 Shah Muntasir Mamun, MBA 47E, Roll: 04

Presented by:
3 Mohammad Mamunur Rashid, MBA 47E, Roll: 15

4 Md. Humayun Kabir, MBA 47E, Roll: 26

Bangladesh Biman

Vision
To establish Biman Bangladesh Airlines Limited in the
aviation market as a world-class airline.

Mission
To provide safe, reliable, efficient and economical air
transport services and to satisfy customers’ expectations
while earning sustainable profit and continuing to be a
caring employer.

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Bangladesh Biman

Tagline (স্লোগোন)

আকাশে োন্তির নীড়।

Your Home in the sky.

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Overview of Bangladesh Biman

Biman Bangladesh Airlines is the national airlines of Bangladesh.

It was formed on 4 January 1972 with 2500 skilled and unskilled manpower and with
a gift of DC-3 aircraft from Bangladesh Air force. .

At its peak, Biman operated flights to 29 international destinations, as far away as

New York City to the west and Tokyo to the east. But it was adversely affected by
corruption and mismanagement.

The airline was wholly owned and managed by the government of Bangladesh until
23 July 2007, when it was transformed into the country's largest public limited
company by the Caretaker Government of Bangladesh.

Biman currently flies passengers and cargo to 18 international destinations in Asia

and Europe.

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Services Provided by Biman
Domestic
Passenger
International
Service Cargo

Mail &
Others

Others Domestic
9% 9%
Cargo
11%

Passenger
Service Internation
80% al
5
91%
Route Plan

2 Continents 18 Cities 15 Aircrafts

International Route Domestic Route

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 SWOT Analysis

Related Internal
Strengths and Weakness environmental elements
Strengths
A. Biman is in the process of procuring more new generation  Technological
aircraft such as Boeing 777-300ER, 787-8 and 737-800 to its resources
fleet.  Human Resources
B. Experienced technical personnel  Physical & financial
C. Govt. supports with physical and financial resources resources
D. Hajj Flights
Weakness
A. Politically influenced recruitment system  Management
B. Lack of motivation among personnel  Human Resources
C. Lack of transparency in operation  Management
D. Absence of sales plan and public relation activities.
 Organizational
culture
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 SWOT Analysis
Related External
OPPORTUNITY AND THREAT environmental
elements
Opportunities
General A. Unexplored market in diff parts of world  Demographic
Environment B. Preference of air transport over other means of environment
Opportunities transportation  Socio-cultural
A. Postponement of Best Air & GMG Airlines environment
Industry
B. Exit of Air Asia from Bangladesh, British airways from  Competitors
Environment
Dhaka to London direct route operation provide
Opportunities  Substitute product
chance to gain the market share
Threats
A. Volatile energy market frequently increasing fuel cost  Political
General
B. Global economic recession affecting the frequency of environment
Environment
travel  Economic
Threats
C. Govt encouraging private domestic airline environment
Industry A. Emergence of new domestic airlines, i.e. Regent, Novo  Competitors
Environment Air and their expansion in international routes.
 Economic features
Threats B. Agressive pricing and efficient service by competitors.
 Competitors

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Competitors market share

Domestic Flight International Flight

4%

22% 25%
29%

50%
3%
4%
4% 10%
24% 4%
5% 6%
5% 5%

Biman Bangladesh Airlines (BG)
Regent Airways (RX)
United Airways (4H)
GMG Airways (Z5)
Biman Bangladesh Airlines (BG) Emirates Airline (EK)
United Airways (4H) Air Arabia (G9)
Jet Airways (9W) Qatar Airways (QR)
Flydubai (FZ) Etihad Airways (EY)
Gulf Air (GF) Thai Airways International (TG)
(Others)
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Passenger: Demographic Distribution
TOP 10 INTERNATIONAL MARKETS FROM BANGLADESH (non-
stop weekly departures)

7% UAE
7% 21% India
Thailand
8%
Malaysia
Qatar
8% 12% Pakistan
UAE
8% Nepal
12% Singapore
8%
9% Saudi Arabia

Unfortunately Biman does not fly all of these top-10 routes.

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Financial Performance
Profit/Loss trend
600
400
200
Crore BDT

0
(200)
(400)
(600)
(800)
2008 2009 2010 2011 2012
Profit/Loss 6 15 (80) (199) (545)

Fact: In its 41 years of operation, the national flag carrier had incurred
losses in 24 years and made profit in 17 years

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Research Methodology

Research Collect Present

Objective Information Finding

Research Analyze Decision

Plan Information Making

Data Sources Research Approaches

• Primary Data • Focused Groups Discussion
• Secondary Data • Surveys

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Research Findings: What customers say…

Probability for future recommendation

14 37%
12
29%
10

Definitely
8 not
20%
recommend
6
Definitely
4 11% recommend
2

0 3%
0
1
2
3
4

66% passengers are unhappy with the service

They’ll not recommend Biman to their friends
and family members.
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Research Findings: What customers say…

“I have travelled this airline twice now and its been a

disaster. Both occasions were delayed 3/4 hours at
Heathrow and that's just the beginning of our problems.
No explanation, staff do not answer questions. Once we
boarded there was no food or drink for 3 hours. We had
to argue with stewards for food and when it did arrive it
was not properly heated.” –Collected from SKYTRAX

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Research Findings: What customers say…

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Research Findings: What customers say…

One third of the passengers

(37.6%) who
reconfirmed/purchased tickets
from Biman sales centers reported
about encountering problems.

Major problems faced during

reconfirmation and
purchase are
•Wasting time (59.4%),
•Taking extra money for
reconfirming/ ticketing (21%),
•Creating artificial ticket crisis
(15.1%)– TIB report on Biman

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Research Findings: What customers say…

11 occurrences in the ASN

safety database
Frequent technical fault and
glitch

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What customer recommends…

Better availability of flight and passenger info

Better time management

Improved baggage handling system

Amiable attitude from flight crews

Clean and comfortable interior

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Way forward

3V’s Approach
for Customer Satisfaction Value
Choosing

Customer
Satisfaction
Value Value
Delivery Creation
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Marketing Strategy

Segmentation Targeting Positioning

S T P
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Market Segmentation

• Domestic
Geographic • International

• Age & Life Cycle Stage

Demographic • Income
• Gender

• User Status
Behavioral • Travel frequency
• Loyalty Status

• SEC
Psychographic • Lifestyle
• Personality

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 Brand Positioning

Correct services
weakness and
thereby enhance a
product’s appeal. Changing passenger
Identifying a
usage patterns to
strength that is both
include different or
unique and
additional uses for
important
the product

Finding unmet
Identifying right
consumer need and Positioning market segments
unexplored area

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IMC Mix
Mass Communication
• Billboard
• Magazine
• Social Media

Promotion
• Loyalty programs
• Discounts
• Tour packages

Public relation
• Corporate Collaboration
• Events
• Sponsorship

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Marketing Funnel

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Determinants of Service Quality

Reliability

Tangibles Responsive

Empathy Assurance
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Marketing Mix – 4P’s

Product Price 7P’s

People

Process
Place Promotion
Physical
Evidence
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The Service -Profit Chain

1. Internal
Service
Quality

2. Satisfied
5. Healthy
service and and
productive
Profit
Growth The service
Employee
Service -
Profit
Chain

4. Satisfied 3. Greater
and Loyal Service
Customer Value
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Appendix: Latest updates
Biman has decided to raise ticket price for a number of its international routes
from July 1, said Biman officials on 27th June 2013. (Source: New age)

In order to save the money, Biman had temporarily suspended four routes to
Manchester, Karachi, Hong-Kong and Delhi, though the Dhaka-HongKong and
Dhaka-Delhi routes were resumed last May. (Source: New age)

Biman will also introduce e-customers’ feedback and rating of services. Staff who
can surpass their targets will get extra bonuses.(Source: Daily Star)

Biman is aiming to be around 80% ontime over the next 6 months.

• May 2012 – 44.5% of flights ontime.
• May 2013 – 59.7% flights ontime.

The Ministry of Civil Aviation and Tourism has decided to exempt private domestic
airlines from aeronautical fees charged for landing and takeoff by their aircraft at
Bangladeshi airports. -9th June 2013

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Appendix: References
 Phillip Kortler, Kevin Keller, Abraham Koshy, and Mithileshwar Jha, Marketing
Management, 14th Edition. Dorling Kindersley (India) Pvt Ltd, 2010.
 Philip Kotler, Gary Amstrong, Prafulla Y. Agnihotri and Ehsan ul Haque, Principles of
Marketing, 13th Edition. Dorling Kindersley (India) Pvt Ltd, 2010.
 Bangladesh Biman Annual Report, 2010.
 Bangladesh Domestic & International Air Services Statistics, OAG aviation.
 Biman Bangladesh Airlines: A Diagnostic Study, TIB.

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Appendix: Survey Questionnaire

Page 1

Also available at this link!

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Appendix: Survey Questionnaire

Page 2

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Appendix: Survey Questionnaire

Page 3

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