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Author Topic: Blowing wad (money) on marketing  (Read 1673 times)

Offline swiftus27

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  • Posts: 4395
Blowing wad (money) on marketing
« on: February 10, 2010, 04:30:50 PM »
Just curious if anyone else is doing this.  I am spending a lot of money in marketing early just so I can have some decent LFs when my RI is up. 

Is this a bad idea?  Other airlines in my home base of Sydney are going for planes.   This has left me with no cash on the short term.  In fact, I am about even every week. 

My marketing stops in July, at which point I will start focusing on saving money up for Jets.   My competition is going DC6/7 heavy and I hope the 721s I ordered do some good (since they fly at double the speed). 

Any thoughts?   My company image is at 42 right now.  I figure it will hit 60 before I pull the marketing back a bit.

Misterfeep

  • Former member
Re: Blowing wad (money) on marketing
« Reply #1 on: February 10, 2010, 04:34:56 PM »
I am looking at something similar and wondering the same thing.  Will it payoff?

Talentz

  • Former member
Re: Blowing wad (money) on marketing
« Reply #2 on: February 10, 2010, 06:18:27 PM »
Depends. Going heavy marketing is good only if you don't have the option to expand. If the used market is tight then throwing your extra money into marketing makes sense. Once you've reached a high CI you can come back and flood the routes your competition is flying without fear of losing alot of money. (Because high CI can negate high RI at the start of a route. High CI + route frequency = you control the route.)

The actual base strategy of this is to keep spending your cash on something. Be it aircraft expansion, marketing or something else. Never let your money just sit, because its a waste. Only times you should let your cash pile up is when you have nothing better to do/end game mode.

That said, Sami did tweak marketing not too long ago. It is a bit harder to reach higher CI levels now. So make sure your not over doing yourself to get at a high level. Though CI 60 sounds reasonable. Don't think you can get to CI 100 off less then 5 aircraft ;)



Talentz

Offline isuzu777

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  • Posts: 364
Re: Blowing wad (money) on marketing
« Reply #3 on: February 11, 2010, 07:24:06 AM »
Better than my results. My CI went down to negative 25 with no explanation!
~Sonata Airlines- Song of the Skies~

Offline oggie84

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Re: Blowing wad (money) on marketing
« Reply #4 on: February 11, 2010, 09:19:32 AM »
Better than my results. My CI went down to negative 25 with no explanation!

Check your aircraft condition...

Rather than increasing at the start of this world, my CI was actually falling. I found it was to do with my aircraft being in very bad condition.

MunMaRu

  • Former member
Re: Blowing wad (money) on marketing
« Reply #5 on: February 11, 2010, 04:02:48 PM »
Try to use new plane and keep your plane condition above 80%. Decrese some ticket price will increase you a pax and CI !  ;D

My CI reach to 60 with low ticket price and some marketing.

Offline swiftus27

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Re: Blowing wad (money) on marketing
« Reply #6 on: February 11, 2010, 04:14:41 PM »
Well, the CI is up to 58 now.  My RI is climbing as well.  All in all, I think the plan did okay.  I probably should have spent less and focused on getting more 721s or DC9s.

Offline Daveos

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Re: Blowing wad (money) on marketing
« Reply #7 on: February 12, 2010, 12:50:05 AM »
Aircraft leases have now kicked in too, as we've had the first ones for 4 months.  What fun!  ;D

SirGrant

  • Former member
Re: Blowing wad (money) on marketing
« Reply #8 on: February 12, 2010, 04:16:40 AM »
it can be hard to judge, but i've experimented with the marketing/ acft buying strategy.

you can spend to much on marketing at the start of a game IMO ..   :)

Aahz the Pervect

  • Former member
Re: Blowing wad (money) on marketing
« Reply #9 on: February 12, 2010, 07:17:29 PM »
noob here - got into this scenario late, so am trying to squeeze into a market. So I went marketing heavy and now have a few routes at 97 RI. My question is what happens if I now pull that marketing? If nothing else changes (i.e. no price changes, no major screw-up that causes an extra neg modifier) is that RI of 97 stable, or will it erode with no more $$ being pumped into the marketing campaign?

Diff subject....but :) - I've noticed that I can save $40-70k+ (a LOT for this struggling regional company) if I terminate a lease early and pay the fee rather then deal with the C Check's. Is that considered an exploit?


Thanks!

Talentz

  • Former member
Re: Blowing wad (money) on marketing
« Reply #10 on: February 12, 2010, 07:36:21 PM »
noob here - got into this scenario late, so am trying to squeeze into a market. So I went marketing heavy and now have a few routes at 97 RI. My question is what happens if I now pull that marketing? If nothing else changes (i.e. no price changes, no major screw-up that causes an extra neg modifier) is that RI of 97 stable, or will it erode with no more $$ being pumped into the marketing campaign?

Thanks!

As long as you continue to fly the route daily, RI will always grow till it reaches 100.


Diff subject....but :) - I've noticed that I can save $40-70k+ (a LOT for this struggling regional company) if I terminate a lease early and pay the fee rather then deal with the C Check's. Is that considered an exploit?

Thanks!

No... that's considered fair play and if done right, smart...

Talentz

Offline swiftus27

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  • Posts: 4395
Re: Blowing wad (money) on marketing
« Reply #11 on: February 12, 2010, 07:43:53 PM »
100% agree with Talentz there.  No point in paying for a C check when you are 1 month away from turning the plane in.  That is a risk that the plane's owner must take.

Aahz the Pervect

  • Former member
Re: Blowing wad (money) on marketing
« Reply #12 on: February 12, 2010, 08:59:53 PM »
Apprec the fast replies!!

Thanks! (goes to start yet another spreadsheet)



 

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