Business-to-Business Marketing at Flight 001
chapter 6 Business-to-Business (B2B) Marketing 201
Video Case 6.2 Business-to-Business Marketing at Flight 001
with logos and slogans for products you don’t want and will never own.
The folks at Flight 001 appreciate the work we do and want our employers to reward us with some better swag, so they offer a corporate gifting program to help big business say thank you with a little more style. “Everything is for travel, everything is useful,” says Brad John of his travel boutique, Flight 001. “At all these big compa- nies, everyone travels and we’re useful, so we’re really the perfect item for a corporate gift.” To guard against re-gifting, Flight 001’s consultant works one-on-one with corporate clients to find just the right gift.
It’s nice that Flight 001 is looking out for the workers of America, but they get a return as well from the corporate gifting program. While Flight 001 has been very successful in its first 10 years in business and has plans to open at least 20 new shops in the next few years, it is important to the brand that it maintain its local, independent boutique feel. Part of that is resisting the lure of splashy paid advertising. With that off the table, the company uses programs like corporate gifting to get their products in the hands of their ultimate retail customer, the business traveler. The online travel search engine, Orbitz, recently placed a huge order for Flight 001’s passport and document folder. Flight 001 agreed to print the Orbitz name on it, and Orbitz gave the folder away to its best cus- tomers. The program was a huge success, and Flight 001 saw an increase in requests for similar sales.
In the wholesale market, Flight 001 has been successful in identifying like-minded customers such as Northwest and Song airlines. One of their more successful partnerships has been with Jet Blue, an airline known for serving a younger, hipper traveler. Flight 001 offers some of their travel gear branded with both the Jet Blue and Flight 001 name via the airline’s store.
Flight 001 hopes to start selling its products wholesale to bou- tique and luxury hotel chains. While they have sold to hotels in the past, they haven’t had much success. An emerging trend in bou- tique hotels is an expanded mini-bar offering high-end cosmetics and other travel products for that late-night impulse buy. John is hoping to see Flight 001 products next to the macadamia nuts and Toblerone bars soon.
In comparing Flight 001’s consumer retail market with its business-to-business market, John says, “Is it the most exciting part? No. But it’s a very easy business.”
Questions
1. How does marketing Flight 001’s products to give as gifts to companies such as Orbitz affect sales at Flight 001’s retail stores?
2. What potential conflicts might arise between Flight 001’s wholesale business to Jet Blue and Northwest and Flight 001 retail business? Do you think their wholesale/retail strategy is sound? Why or why not?
By the time each of us retires, we will probably have acquired thousands of useless gifts from our employers, clients, and vendors. Teeny staplers, space pens, solar desk clocks, binders, cheap calculators, and, of course, the ubiquitous tote bag emblazoned
21782_06_ch06_p168-201.indd 20121782_06_ch06_p168-201.indd 201 29/09/10 9:30 AM29/09/10 9:30 AM
Copyright 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.