Calculator Allowed: Yes



Transcription of this question: 5.JustJet (JJ)JustJet (JJ) is a leading European airline. It operates low-price flights across Europe branded asJustJet. Currently it only offers an economy service and charges for on-board meals and drinks.JustJet has strong brand awareness in Europe. The business is very profitable. However, theeconomy “no frills” market has saturated.After reviewing the results of focus groups, the JJ board of directors proposed launching a secondservice, called JustJetplus (JJplus). This service will offer first-class-only flights to non-Europeandestinations. Between 2006 and 2008 other airlines offering a first-class-only service failed. JJsdirectors believe its brand name and financial strength are strong enough to succeed.JJ will purchase airplanes with first-class specifications only for the new JJplus service.Passengers will have first-class seats that convert into beds, individual tablet computers,high-quality food and free Wi-Fi. Although JJplus will charge expensive first-class fares for allseats, its prices will nevertheless be lower than the first-class tickets offered by their competitors.Flights will be daily to non-European destinations, such as New York and Brazil, Russia, India andChina (BRIC).The target market consists of two market segments:vacationers seeking luxury travel at a lower price than the first-class tickets offered bycompetitorsbusiness flyers, such as entrepreneurs from BRIC countries.To break even, JJplus must sell 90% of the seats on each flight.(a)(b)(c)(d)Define the term market segment.Explain one advantage and one disadvantage for JJ of using focus groups as amethod of market research.Using the Ansoff matrix, explain JJs strategy of offering the first-class-only service,JJplus.Evaluate JJs proposal to launch the JJplus service.[2][10]

Leave a Reply