Know-How Exchange : Student Questions

I would segment the company's products (routes, passenger and freight products, plus any non-airline products such as resorts, hotels, catering, etc).

Then segment the customers according to who buys which products.

Arrange theproducts and customer segments into a rectilinear matrix and assign revenue and gross margin values to the intersects (e.g. Russian business travellers to London = $400M revenue per annum, $60M GM) and pick the key product/segment intersects which add up to and account for a total of around 80% of gross margin. Should give you a fairly clear picture of where Aeroflot stands.

If you want to go ahead and do more work to figure how Aeroflot could further develop its market, first analyse the value proposition they offer each segment, then figure how to do it better, and which segments could be addressed with which new or existing products.

Hope this helps.