In preparation for this discussion, review the websites of Cessna (Links to an e
ID: 460562 • Letter: I
Question
In preparation for this discussion, review the websites of Cessna (Links to an external site.) and Embraer (Links to an external site.). After you become familiar with the companies by searching the links and reading about the businesses, go to the Business Jets products for each of the companyies. Evaluate the websites’ marketing material (i.e. videos (Links to an external site.), brochures (Links to an external site.)) for each company as you apply the determinants of service quality (Links to an external site.) (Hunt Library Article - See table 1 on article page 47 or view scroll page 7). How does Cessna and Embraer differentiate their products and services from the competition? What are their market segments? Consider categories of organizational buyers, segmentation of buyers, and method of segmentation.
Explanation / Answer
Embraer has carefully avoided the big players of the commercial aircraft market. With its new design 170/190 series it decided to take advantage of the 70-110 seat gap in the commercial airplane jets. The jets produced in this series would be larger than the 50-70 seat jets however, smaller than the smallest Boeing or Airbus jets. Embraer forecasted a trending demand for such planes; hence it introduced the product with another advantage of less intense price competition.
Cessna has been spending close to 30% of its revenue in R&D to bring up new and differentiated products. They always have been thriving to build a new pipeline of products that are distinct. Even they plan on introduction of new products as per the market condition. If the market is distressed then they will wait for it to strengthen and then introduce their product so as to gain advantage of the market condition.
Both companies do thorough market research and technological advancements in their production of aircrafts.
The market segments for both the companies are private jet owners, military jets, commercial aircrafts and agricultural aircrafts users.
For each market segment they accordingly design their plane so as to suit the users and add value to their purchase.