A Customer service plan for Cebu Pacific Air

• Main Authors: Apostol, Mylene C., Escolar, Charmaine L., Gregorio, Josefina S., Tugbang, Pamela T.
• Format: text
• Language: English
• Published: Animo Repository 1998
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/16760
• Institution: De La Salle University

Ten years ago, Filipinos could have not imagined that come 1995, the Philippine skies long ruled by a single airline would be opened to new domestic carriers such as Cebu Pacific Air. CPA started its operations in 1996 when the Philippine economy was in upswing. Coming in strong with its low fare, great value tagline, it became an instant hit to the price-sensitive market. CPA's on-board entertainment, Fun Flights also scored well to the young and vibrant market. Truly, Cebu Pacific's marketing strategy matched its target market as evidenced by capturing a 15% market share in 1997. However, in early 1998, CPA experienced a slump in its operations when one of its planes crashed in Mindanao and they were grounded for two months. This posed problems for the company particularly in alleviating the fear of the market. But CPA bounced back and regain the glory rightfully theirs, reaching passenger load factor as high as 87% in October 1998. In less than a year, CPA overcame that sad experience and moved on, expanding its destinations which would soon include Zamboanga in December 1998. Their growth in the Southern region was what inspired the proponents of this paper to suggest that CPA should strive to be the dominant airline in Regions 6, 7 and 11, and establish a hub in Cebu. Coupled with this, the proposal to be the Official Fiesta Airline of the Philippines is also suggested. This is to reinforce CPA's positioning in the market as the Fun Airline and to promote domestic tourism through the popular feasts being celebrated in the country. The proposed Customer Service Plan includes strategies that CPA should undertake to achieve its goal and objectives, both short-term and long-term. The following strategies are suggested: 1. Service Development Programs to improve internal and external affairs of the company 2. Pricing strategies should be maintained by CPA 3. Sales and Distribution strategies to make CPA more accessible and 4. Promotional and advertising materials to encourage the market to fly with CPA. These programs are geared toward improvement of customer relations and service performance of CPA and enhancement of its image and standing in the society. These are to be evaluated regularly through surveys, focus group discussions, and meetings. A total investment of P 10,636,272.00 for all programs is expected to assist CPA in achieving its goal and objectives. The Service Plan also provides financial projections until the year 2000 to help the company in the accounting of all its resources and an its financial system as a whole.