airlines brand strategy
TRANSCRIPT
Consumer Perceptions
This is by no means a scientific survey. We simply called six people and asked
them five questions
Each respondent has a number instead of a name
They were all based in Saudi Arabia.
Dipstick Survey
1. SIA, Malaysia Airlines, Saudi Arabian Airlines
2. Emirates, Saudi Arabian Airlines, Sri Lankan
3. Saudi Arabian Airlines, Emirates, Qatar
4. Saudi Arabian Airlines, Emirates, Gulf Air
5. SAMA, Saudi Arabian Airlines, Qatar
6. Saudi Arabian Airlines, BMI, Emirates
Name three airlines flying in and out of KSA (Top-of-mind awareness)
1. SIA
2. Sri Lankan
3. Saudi Arabian Airlines
4. Saudi Arabian Airlines
5. Emirates
6. Saudi Arabian Airlines
Which airline do you prefer When you’re buying your own ticket?
1. Saudi Arabian Airlines
2. Emirates
3. Saudi Arabian Airlines
4. Saudi Arabian Airlines
5. Emirates
6. Saudi Arabian Airlines
Which is your preference if you are being sent on business?
1. SIA
2. Sri Lankan
3. Saudi Arabian Airlines
4. None
5. Qatar
6. None
Which airline you feel cares about you as a customer?
1. SIA – Lexus LS 460
2. Emirates – Land Cruiser
3. Saudi Arabian Airlines – Mercedes Benz
4. Gulf Air – BMW, Infinity
5. Qatar – Rolls Royce
6. BMI – Mercedes, BMW
If each of those airlines were a brand of car what would they be?
All participants have Saudi Arabian Airlines at the top of their minds.
4 out 6 prefer Saudi Arabian Airlines for their business trips.
Emirates & Qatar are working hard and gaining a good reputation in KSA
Other airlines are under-communicating
Learnings
Airlines Brand Strategy
December 2007
Creative Cut retains the intellectual property rights to this document. Unauthorized usage of the
ideas presented herein, or replication in any form is strictly prohibited
In a highly competitive and rapidly changing
industry where brand is the ultimate
differentiator, (Al Arobi for Trading Services)
sought to reposition there airline and find new
ways to reach its various customer segments.
We will work in partnership with (Al Arobi for
Trading Services) to identify new or hidden
market opportunities and to help position their
brand for short-term impact and long-term
value. We will then help articulate that
positioning through a clear and codified brand
architecture system.
How Competitive is the Business in the Arab region?
Customers expect the higher standards of comfort &
service, but for a value of money fares.
Airlines have to fight hard to win business from all
segments of the market.
The introduction of low cost or single class airlines in ME
was inevitable.
Fragmentation in the region’s airline industry has started
to happen & will grow.
No frills carriers in the region are not a major competitor
as they only fly to intra-Arab destinations.
A larger number of Arab tourists take their vacation within
the region.
A number of businessmen travel within the region as they
are business hotspot.
World Scenario
The successful low cost airlines are more profitable than
established carriers
Ryanair has a market capitalisation of about £3 billion
Globally, the largest and most successful low cost airline is
Southwest in the US
Pattern & Determinants of Demand in Airline Industry
Multiple periodic cycle
Vary by Day
Months
Causes for these cyclical changes
Employment Schedule & tie-ups
Wages and Salary
Seasonal Changes in Climate
School Hours and Vacations
Occurrences of public or religious Holidays
Market Scene – Some Facts &
Analysis
Source: Economist Intelligence Unit
Population: 27,601,038
Pop growth rate: 2.06%
Age Structure: 0 - 14 years 38.2%
15 - 64 years 59.4%
65+ years 2.4%
Literacy: 78.80%
Saudi National's Expenditure on Tourism: $17 billion External/Internal
Preferences to Fly on Low-Cost Airlines: 10 million people including expatriates
Country Analysis Saudi Arabia
Country Analysis Saudi Arabia
26 Airports with a 28% growth of no.
of arriving & departing passengers
(1995 -2004)
Most popular reason for Saudis traveling abroad:
70% Holiday
Inbound tourism (2005)
Trips: 8.037 millionOutbound tourism (2005)
Trips: 4.403 million
Source: international visitor survey
Country Analysis Saudi Arabia 2005
356
1463
138
511
1043
0 500 1000 1500
B ahrain
K uwait
Oman
Qatar
UAE
Inbound Tourism x 1,000 Trips
GCC Countries
413
202
8
49
718
0 200 400 600 800
B ahrain
K uwait
Oman
Qatar
UAE
Outbound Tourism x 1,000 Trips
GCC Countries
Source: international visitor survey
Country Analysis Saudi Arabia 2005
800
52
279
69
49
9
577
262
0 200 400 600 800
E gypt
Iraq
J ordan
L ebanon
L ibya
P ales tine
S yria
Y emen
Inbound Tourism x 1,000 Trips
Other ME Countries
734
304
49
705
433
0 200 400 600 800
E gypt
J ordan
L ebanon
S yria
Y emen
Outbound Tourism x 1,000 Trips
Other ME Countries
Source: international visitor survey
Country Analysis Saudi Arabia 2005
Source: international visitor survey
46%
5%13%
25%
1%10%
R eligious
L eis ure/S hopping
V is itingF riends /R elatives
B us ines s
Health R elated
Other
70%
18%
8%4%
L eis ure/S hopping
V is itingF riends /R elatives
B us ines s
Other
Purpose of Visit
Inbound Outbound
Sector Analysis Travel, Hotels and Resorts 2005 (GCC)
Source: PARC
37%
15%7%
28%
12%1% A irlines
Hotels & R es orts
C ar R entalS ervic esR es ort Areas
Travel S ervices
Other S ervices
Sector Analysis Top Brands – All Media 2005
Source: PARC
Rank Brand Value
1 Emirates Airlines 8,492
2 Dubai Resort Area 7,429
3 Saudi Arabia 5,750
4 Saudia Airlines 5,631
5 Etihad 3,335
6 Malaysia Resort 3,202
7 Qatar Airway 2,957
8 Gulf Air 2,512
9 Egypt Resort 2,099
10 Turkey Resort Area 2,053
GCC ( 000 US$ )
Sector Analysis Media Split % 2005 (GCC)
Source: PARC
32%
17%2%
47%
2%
Televis ion
Magaz ine
Outdoor
News paper
R adio
Sector Analysis Media Expenditure
Source: MindShare
Sector Analysis Media Expenditure
Source: MindShare
OUTDO
OR
PR E S S
TV
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
Mil
lio
n $
HOL IDA Y RES ORTS CENTER
HOTEL
TRA V EL A GENCY
Expenditure Split by Media 2007Expenditure Split by Media 2006
Communications – a snapshot
Outdoor Press Radio
1. Airlines focus mainly
on destinations and
number of flights
2. They also use generic
messages to enhance
top-of-mind awareness
1. Airlines mainly use full
or half page colour ads
in graphic
2. Press is most used to
communicate short-
term fare offers or new
news, i.e. routes and
schedules
1. Radio is used from time
to time by most airlines
when they have special
fare offerings or news
TV
1. Most airlines create hi-
production value TV
ads
2. Most messages are
constantly innovative
but stay with the brand
promise
Messages in Most Popular Media Mix
"Creative without strategy is called
'art'. Creative with strategy is called
'advertising'.”
Jef I. Richards
Our role is to make it “clear”
Do people “get” your strategy ?
vision actions expressions experience+ + +
Create a Brand Strategy
Positioning breaks through barriers of
oversaturated markets to create new
opportunities.
Lissa Reidel
FolioOne Ltd.
Position your Brand
Brand
Awareness
Public space
experience
Individual space
experience
Planning
Trip
reservation
arrival
Check-in Check-out depart Follow-up
& memory
Brand
Awareness
continues
Create Customer Experience
Awareness1
Conversations2
Experiential3
Personal4
Consumer
Press
Posters
Public
Transportation
Magazines
Radio
Online
Advertising
Wireless
Advertising
Outdoor Ambient
TV
Loyalty
Schemes
Advertorials/Expert
DR Press
Competitions
Vouchers
Member
Schemes
Direct Mail
DR TV
Consumer Lifestyle
Entertainment
Event
Sponsorship
Cause
Related Promotions
Sponsorship/
Partnership
On Pack
Consumer
Trade
Shows
In store
POS
Content
Creation
Editorial
Online
Content
DR Online
SMS/Mobile
Viral / WOM Email
By Choosing the right Brand Touchpoints
Don’t treat me like
a child“one message doesn’t fit all”
Deliver the right message to each segment
Let go of mindless segmentation
Treat markets like “people”
Bring back the love
And you might get some in return
A Brand is NOT just a Product!
Story
Design
Emotions
Communication
Uniqueness
Ubiquity
Evolution
Longevity
Great Brands Need
Where do we go
from here ?
Accountability to the Customer
Create Meaningful Propositions (client)
Communicate with Respect, Insight, Passion
(agency)
Create Brand Vision (client)
Create Values Statement (client)
Customer Delight at all Touchpoints (agency)
Brand building partnership
World-Class Communications
Cost-effective media buying (across the KSA region)
Evaluation
Cost-effective production
Honest pricing
Partnership
What can Creative Cut Do for You
Baseline information to Request from You
Brand History
Marketing Plan
Existing Marketing Research
Strategic Planning
1
2
3
4
* To be provided by the client for proper brand positioning and creative
communication solutions
Brand Mission
Scope reason for
existence
Brand Target
Usage communication
Brand Insight
Need & usage drivers
Product features
Brand Positioning
Platforms
Competitive slotting
positioning
Brand Truth
Brand Benefits
Life link
Brand Promise
Most compelling
Reason to buy brand
Brand Soul
Brand beliefs
(values of brand)
Brand Personality
Behavior
communication
Message
Tagline
Appearance
Appendix 1: Model for your Brand Communication
Conceptualizing ideas for consumer
promotions
Road shows – across GCC
B to B creative solutions
(for hospitality industry, trade, wholesale etc)
Creative development of all types of Point-of-Sale paraphernalia
Licensed Door-to-door
sampling operation – KSA wide
(homes & offices)
In-store sampling (wet & dry)
Organizing & implementing
promotions (including legal
approvals & permissions)
Product launch events (planning,
organizing & executing such
events)
Access to all female universities
across KSA (for sampling, annual days,
brand education etc)
Corporate events (e.g. inauguration//facilities/outlets,
annual day, employee day, etc
Creative Cut
BTLServices
Appendix 2: BTL Services
Outdoor:
Visibility of the ad in all major cities using the
latest outdoor medium.
Mobile Marketing:
SMS, MMS, Bluetooth etc.
Radio:
Program sponsorships, interruption campaigns
etc. on major local station Or Pan Arab.
Internet:
Banner ads, Flash, Advergaming, opt-in
e-mail advertising etc.
Newspaper:
All Local and Pan Arab Dailies and Weeklies or
free Newspapers
Magazines:
All Local and Pan Arab Weeklies and Monthlies.
Television:
TVC’s, Programmerssponsorships etc.
on Satellite TV (free to air & cable)
Creative Cut
ATLServices
Appendix 3: ATL Services