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Transcription of this question: 4.Oktopus Air (O A)Oktopus Air (0.4) is an airline targeting both business and economy class passengers. Customershave praised OA for its ethical objectives, its commitment to below market prices for both marketsegments and its mission statement: “In the air, we care for everyone!”Employees have praised OAS Chief Executive Offlcer (CEO), Eythor Karlsson, for his situationalleadership style. flights are usually full and customer feedback is excellent.Two social changes are affecting 04• Obesity is increasing. Very obese passengers are finding difflculty fitting into seats. On fullflights, some passengers sitting next to a very obese passenger have complained about a lack Ofspace. OA has decided to charge very obese passengers for two seats. A refund Of one seat willbe given ifthe flight is not full. Pressure groups representing very obese people have argued that0.4 is acting unethically. Eythor defended the decision, arguing that competitors were alreadycarrying out the same practices. He added that very obese passengers can create safety problemsduring an emergency evacuation Of the airplane.• The second change is the increasing number of families with young children travelling in businessclass. Business passengers are complaining that young children are too noisy and are threateningto fly with competitor airlines. Eythor has suggested to 04 Board of Directors that a market gapcould be filled if 04 offered a family-only service, once a day, with additional play areas for youngchildren and hence fewer passenger seats. Eythor has indicated that OA will need to raise pricesfor this service, change its promotional method for this service and create a new marketing mix.Some consumer groups recognize the good intentions Ofa family-only service; however they fearit could actually increase the hostility towards families with young children on Other flights thatOA offers.(a)(b)(c)(d)Describe one possible above the line and one possible below the linepromotional method for 0.4.Explain three stakeholder conflicts at 0.4.Analyse how the two social changes could affect OA’s abilityto fulfil itsmission statement: “In the air, we care for everyone!”Discuss an appropriate marketing mix for OAS proposed new “family-onlyservice”[4 marks][6 marks][6 marks][9 marks]

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