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  • 7/27/2019 Brand Analysis Lufthansa - Brand Management

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    Brand Management - Lufthansa

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    Tongji University Shanghai

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    1. Overview

    Deutsche Lufthansa is a globally operating aviation company that comprises of approximately

    400 companies as well as subsidiaries. Founded in the year 1953 it is currently employing

    around 120.000 people all over the world. Lufthansa's registered office and corporate

    headquarters are located in Cologne. Frankfurt Airport is Lufthansas primary traffic hub, the

    majority of Lufthansas employees (Pilots, ground staff and flight attendants are based there),

    even though the LAC (Lufthansa Aviation Center) is located there. Frankfurt is followed by

    the secondary hub Munich Airport and then Dsseldorf Airport, where the subsidiary

    Germanwings is based. Lufthansa is also one of the five founding members of the Star

    Alliance, the world's largest airline alliance, formed in 1997. It consists of five business

    segments, which encompass the areas of passenger transportation, airfreight and airline

    services: Passenger Airline Group, Logistics, MRO, Catering and IT Services. All of the

    business segments occupy a leading position in their sectors and in some cases are the global

    market leaders.

    a)

    Passenger Transportation

    The Passenger Transportation business segment is the core business activity of Deutsche

    Lufthansa. It operates a network of scheduled flights that carry passengers from one

    destination to another. The airlines belonging to Lufthansa are considered among the best in

    the world. It operates a fleet of more than 650 aircrafts with over 200 destinations in around

    85 countries.

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    This segment includes Deutsche Lufthansa AG, Air Dolomiti, Lufthansa CityLine, SWISS

    and the Eurowings group, including Germanwings and the other brands which are displayed

    in the picture above.

    The destinations in Europe, America and also the Asia/Pacific region belonging to their major

    sales market. The customer base of Lufthansa can be split up in 3 sections which accounting

    for more than 2/3 of the total companys revenue.

    Corporate customers

    Travel agency chains

    Private costumers

    b) Logistics

    Deutsche Lufthansas wholly-owned subsidiary Lufthansa Cargo AG is in charge of airfreight

    and the marketing of air cargo capacities. It serves airfreight product segments, from td.Pro

    the standard segment, to express like td.Flash and some specialized segments. The range of

    Lufthansa Cargo covers over 500 destinations. Lufthansa corporates in his network with 120

    business partners and over 1000 freight forwarders and original dispatchers.

    c) MRO-Services

    The MRO (Maintenance, Repair, Overhaul) is the Lufthansa Technik service which is among

    the worlds leading providers of maintenance repair and overhaul services for commercial

    airlines. Lufthansa Technik is divided into six division, from Overhaul, Engines, Components,

    Maintenance, Landing Gear and Completion. The group operates through 27 MRO

    destinations while serving more than 600 companies are located worldwide and with

    maintenance centers in Frankfurt, Munich and Berlin.

    d) Catering

    With the LSG Service Holding AG (Brand Name: LSG Sky Chefs) Lufthansa is also offering

    catering services and integrated in-flight solutions. It is the worlds largest provider of this

    kind of catering, serving nearly 300 international airlines including all major international

    airports.

    e) IT Service

    The companys Information Technology (IT) services segment provides IT services through

    the Lufthansa Systems group. for the airline and aviation sectors. From Airline Management

    Solutions, Passenger Airline Solutions, Airline Operations Solutions, Industry Solutions and

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    Infrastructure Services for airlines as well as other companies to run services in their

    infrastructure. It serves nearly 180 regular customers principally in the aviation industry,

    logistics service providers, banks and financial service providers, industrial companies and

    public transport operators. Currently, it has operations in Germany and some other foreign

    countries.

    Lastly, Deutsche Lufthansa classifies its geographic segments into six regions namely:

    Europe including Germany,

    North America

    Asia/Pacific

    Middle East

    Central and South America and Africa

    2.

    Brand history

    If you take a deep look into the history of Lufthansa you can trace it back to 1926 when

    Deutsche Luft Hansa A.G. was founded in Berlin. It was renamed into Deutsche Lufthansa in

    1933 and became Germanys flag carrier until 1945, when all services were suspended

    following the defeat of Germany in the Second World War. During the Post-War Era

    Germany put great efforts into create a new national airline. At this point in time the

    Aktiengesellschaft fr Luftverkehrsbedarf (Luftag) was founded on the 6. January 1953 in

    Cologne. So far West Germany hadnt have sovereignty over its own airspace so there was an

    uncertainty when the new airline could become operational. In the beginning of August 1954

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    Luftag finally purchased the name and logo from Deutsche Lufthansa to continuing the old

    tradition of the German flag carrier. Shortly after the acquisition, Lufthansa got approval to

    start scheduled domestic flights in West Germany. Linking the German airports Hamburg,

    Dsseldorf, Frankfurt, Cologne and Munich, soon followed by international flights. In 1987

    Lufthansa, together with Air France, Iberia, and Scandinavian Airlines, founded Amadeus, an

    IT company (also known as a GDS) that would enable travel agencies to sell the founders andother airlines' products from a single system. In 1988 Lufthansa gained a new corporate

    identity, so their fleet, cabins, city offices and airport lounges got redesigned. The now

    biggest and worlds first multilateral airline alliance Star Alliance was founded on May 18,

    1997 by Lufthansa, Air Canada, Scandinavian Airlines, Thai Airways, and United Airlines. In

    the following years, Lufthansa acquired SWISS in 2005, Brussels Airlines, and Austrian

    Airlines in 2009.

    3.

    Brand positioning

    In this paper, I will only concentrate on the main brand Lufthansa which is connected to theairline as itself. Other business segments, which are belonging to the Deutsche Lufthansa AG

    as well, will not be touched in this paper. Lufthansa is positioned as a premium airline in the

    market. They are charging higher prices for their quality product then their competitors. High

    Quality is associated with the brand Lufthansa it links the message better to it, that is why

    Lufthansa can differentiate themselves from their competitors.

    a) Points of Parity

    The Points of Parity of Lufthansa are those associations or particular attribute or Lufthansa

    that can attract the customer easily. Lufthansa as a brand has a reputation as a high quality

    airline, as well as a good reputation for excellent service. Furthermore safety is one of the

    most important concerns of Lufthansa. This Point of Parity is enhanced also from the history

    and background of the airline, based in Germany, so here comes the association with the good

    reputation that products Made in Germany earned in the last century. Good service is also

    associated with Lufthansa as a brand. Its a symbol for a premium airline which offers and

    personal individual service for all their flight guest, starting at economy to the first class.

    Another aspect that customer implies with the brand is the feeling for holiday, exploring

    another place in the world and having a great time. A journey that means flying from one

    destination to another is still something very special even for a lot of people in Germany.

    Arriving at the airport and getting on a plane is really exciting. Lufthansa could manage it

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    over their long tradition to associate this feeling to their own brand. Hereby also the elements

    and feelings of having a reunion, business meetings, holidays and going to a special event are

    contributing to the value of the brand. These intense feelings and emotions of excitement and

    joy are essential for it.

    b) Points of Difference

    Points of Difference are attributes that people and customers strongly associate with

    Lufthansa itself. In that case people strongly evaluate and positively believe that they couldnt

    find any of these attributes at a competitive airline. If it comes to Lufthansa and their Points of

    Difference, people are linking an exclusive imagery, premium price, premium individual

    service, innovation, history of the brand, made in Germany (an airline people can trust) and

    the strongly industry leadership to them.

    c) Brand positioning

    Positioning means finding the proper locations in minds of a group of consumers or market

    segment, so that they think about a product or service in the right or desired way to maximize

    potential benefit to the firm. Positioning requires determining a frame of reference and the

    ideal points of parity and points of difference by using the brand associations.

    The German Lufthansa AG is one of the most successful airlines in the world. Looking at the

    development over the last 15 to 20 years, showing the development of "state enterprise" to the

    early 90s in an international aviation group, Lufthansa significant changes, but also medium

    and large crises "experienced" has. Lufthansa introduced and faces such challenges and is

    again rich success. The

    "Product Lufthansa" triggers

    but the external observer,other emotions - check it

    out: Think of Lufthansa ...

    and what do you see? -

    Clouds, airplanes. And that's

    what makes the attraction of

    a brand: Luft Hansa is not

    only an air transport

    undertaking, but "Lufthansa"

    triggers dreams and

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    emotions. Because flying is still for many special, Lufthansa can offer in the form of

    Corporate Culture and Identity, tradition, values and images. Furthermore Lufthansa is

    focusing with his main brand on business clients, which are using Lufthansa as travel platform

    to get from one meeting to another. Lufthansa is offering high-class individual transportation

    service to their customers. This service can be divided into several parts. First there is the

    main part of transportation. The company is offering the clients a transportation from oneplace to another destination via aircraft. But this is the same service that other similar airlines

    offer their clients as well. The differentiation between Lufthansa as a high-class premium

    airline and their competing airlines is the 360 package with focus on serving the client. From

    the check in till landing at the airport it is providing an irreproachable customer service in the

    air as well on the ground with several lounges for business and first class passengers.

    Additionally some service aspects as, foldable chairs, the latest newspapers, blankets, pillows,

    entertainment system and of course inclusive food and drinks belonging to the high class

    service of Lufthansa compared to the budget airlines.

    Another important point while focusing on the brand positioning of Lufthansa is the

    Partnership with FC Bayern Mnchen AG. Lufthansa is the one and only mobility Sponsor of

    the soccer club. Flying the players and staff to all games around Europe. This sponsorship is

    really important, both German brands are highly successful in their area of operation. They

    symbolize the success story of companies Made in Germany. Increasing the brand

    awareness through linking both brands in the home and international market. Lufthansa is

    using special planes to carry even the fans to Champions League games. So if Bayern Munich

    is winning the Champions League it will increases Lufthansas brand awareness as well.

    Additionally both companies are producing several TV spots together to increase the well-

    known connection between these brands.

    But Bayern Munich is not the football club Lufthansa is working together with. The German

    national football team is also sponsored by the company.

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    d) Who are the main competitors?

    The European airlines like Air France-KLM and IAG, as well as US carriers such as Delta

    Airlines and American Airlines are Lufthansas main competitors in intercontinental traffic.

    But however the upcoming and fast growing airlines from the Gulf region like Etihad

    Airways, Qatar Airways and Emirates are moving into the center of the competitive focus of

    Lufthansa. When only taking the European traffic into account, the main competitors ofLufthansa are Easy jet as well as Air Berlin.

    e) How the brand is similar with these competitors?

    Lufthansa and their main competitors offering nearly the same kind of service while

    transporting them from one destination to another on. In today's aviation market, it is no great

    differentiation between the different airlines. Each competitor differentiates only in detail

    from each other if it comes to special individual services, age and equipment of the plane

    fleet. Service offerings before and after start and landing as well as some other aspects as

    food, drinks and so on.

    f) Market Segmentation

    In the following I will take a closer look on the customer segmentation strategy of the German

    Lufthansa air carrier, which with 514 airplanes and 193.000 passengers per day is one of the

    largest European airlines. When analyzing Lufthansas consumer segmentation it becomes

    obvious that Lufthansa isnt one homogenous company and brand but a large multinational

    corporation which owns multiple brands and smaller airlines. In general these different brands

    can be allocated to three different consumer segments. The first segment is the budget

    segment. In this segment, which was already explained in the section above, Lufthansa

    concentrates all its low cost carriers like Germanwings and holdings of Jetblue Airways. The

    second segment, which is the largest and most important one, is the segment of normal

    travelers, which travel economy class, business class or first class. In this segment Lufthansa

    concentrates its core brand Lufthansa Passenger Airlines, Swissair or Austrian Airways. The

    third general segment is the private jet segment, in which Lufthansa offers premium

    customers the special service of a private jet. In this paragraph I will concentrate on the

    segmentation strategy of Lufthansas core brand Lufthansa Passenger Airlines and show the

    four customer segments Lufthansa has identified.

    Lufthansa divides their customers into three different groups according to their respective

    customer equity level. With equity level Lufthansa means the past value of a customer based

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    on the value the customer created by flying or consuming Lufthansa services and the expected

    future value a customer is most likely going to contribute. Lufthansa divides this segment into

    three classes M1, M2 and M3 at which M1 is the lowest equity level and M3 is the highest

    level. Lufthansa rewards customers with a high equity level by inviting them into special

    frequent traveler programs and tries to encourage travelers with a low equity level by offering

    attractive flights to motivate them to use Lufthansa more.

    As mentioned above, Lufthansa rewards customers with a high equity level by inviting them

    into frequent traveler programs. Lufthansas frequent traveler program Miles & More is made

    up of three different levels which can be reached by flying miles with Lufthansa airplanes.

    The lowest level is the Base level which has no privileges or special services but simply

    enables customers to participate in this program and to collect miles in order to advance to the

    next traveler level. The second level is the Frequent Traveler Level (FTL). These travelers are

    awarded with a higher waiting list priority, free baggage allowance and access to Lufthansas

    business lounges. The third level is the Senator level which already provides the traveler with

    many comforts such as even higher waiting list priority, and other status symbols. The last

    and highest level after the status segmentation of M1-3 is the HON-Circle, in which very few

    frequent travelers are gathered and provided with the best service and comfort possible. This

    includes private lounges at the airport, a luxury shuttle service from the gate to the airplane

    and a private hotline only for HON members.

    The individual reason of traveling is another segment that is used by Lufthansa to develop

    products and prices which meet their customers needs. Lufthansa splits this segment in

    business travelers and vacation travelers and thus use the same approach which was

    introduced by me in the beginning. Each customer groups have to be targeted differently and

    have to be offered different services in order to satisfy their needs. Giving an example,

    Lufthansa is introducing its FlyNet program right now, which offers Wi-Fi access during the

    flights and by doing so enabling business travelers to work with the internet during the flight.

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    2. Brand Elements

    a) Brand Name and Logo

    Deutsche Luft Hansa AG 1927 Deutsche Lufthansa AG 1927

    Deutsche Lufthansa AG 1964 till today

    The German Lufthansa AG, based in Cologne, is one of the largest global corporations in the

    civil aviation industry and combines several interesting features in their logo. The Lufthansa

    was founded in 1926 and is today one of the best known brands in the field of aviation. Otto

    Firle, graphic designer and architect of the DLR (German Luft-Reederei) designed in 1918 the

    first logo of Deutsche Lufthansa today. It was an ascending bird more specifically the bird

    should symbolize an ascending crane. The first appearance of the Lufthansa logo was during

    the existence of Deutsche Luft-Reederei (DLR) in 1919. The crane mark was adopted later by

    Deutsche Luft Hansa in 1926 and furthermore became finally the corporate identity of

    Lufthansa. Today its one of the worlds most famous and instantly recognizable logos in the

    field of aviation.

    The Logo as itself is consisting of three different colors; blue, yellow and white. The meaning

    of these colors symbolizes modernism, excellence and commitment in the service. Even

    though the combination embodies peace, safety, optimism, trustworthiness and a sense of

    responsibility of the company to the customer. Another important point in the design of the

    Lufthansa logo is the use of one of the most used famous typefaces in the world. The

    Helvetica is an often-used classic font that is based in the group of linear sans serif typeface

    with neo-classical characters. For this reason it is very easy to recognize and identify the

    Lufthansa logo among other brands, because brands like BMW, Deutsche Bahn and Toyota

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    are using the same font style. Over the years the logo of Lufthansa has undergone a few

    overhauls. In 1955 the introduced the first redesign, the company changed the name from the

    blue and yellow sign of DEUTSCHE LUFT HANSA to LUFTHANSA and switched the

    colors. Now the blue crane emblem appeared on a yellow parabola. So far the last change

    happened in 1967 that is still representing the official Lufthansa logo. The airline changed the

    letters to Lufthansa and used a new font Helvetica. Even though, this time the crane waspositioned inside a small circle against a yellow background.

    Really untypically is the fact, that the last change of the logo is quite a while ago. People

    already recognize the actual logo since a while. Maybe another small change could turn into a

    higher brand awareness, because people always are interested in changes and

    b) Characters

    Lu and Cosmo representing Lufthansas character for the younger generation. Both of them

    like to travel around the world to visit new places. They are comic versions of crane animals;

    means there is a link to

    the Lufthansa logo. So

    Lufthansa is increasing

    their brand awareness

    already in the child

    age. Furthermore Lu

    and Cosmo are

    walking around as a mascot in some lounges for families for example the Kinderland at the

    airport in Munich.

    c)

    SlogansLufthansas current slogan is Nonstop you, with this slogan the airline is promising their

    guest that we take nonstop care of you all the time, when you are flying with us and was

    officially launched at the ITB Berlin in

    2012. It was release to repositioning the

    brand Lufthansa, from now on there is no

    longer talk about what is Lufthansa doing,

    for their passenger but for whom they are

    doing. "Nonstop you" on the one hand

    describes the known leading role of

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    Lufthansa in the business travel segment, which is backed by a dense route network,

    comfortable lounges, personalized services and many innovations. In addition, the new

    campaign speaks more clearly than before to the private traveler. The focus is on the

    passengers and their experiences, wishes and dreams that are linked with flying Lufthansa.

    d) Jingles

    Whether in the air or on the ground: If you're traveling with Lufthansa, you are going to

    experience the brand with all senses, no matter where you are. The sound of the corporate

    identity therefore was produced by MetaDesign that travelers from all over the world will

    experience starting at their first contact with Lufthansa. The brand touches the customer at all

    different levels, from the Internet to booking a flight and even at the airport, the audio motif

    appears again and again in many places. Another brand song is the Symphony of Angels

    that welcomes travelers during boarding with this very special sound all over the world.

    Furthermore in the Lufthansa terminal at JFK Airport New York the typical sound of the

    brand Another Perfect Day is present as well. This line of Lufthansa jingles is on the spot

    everywhere even at trade fairs, exhibition, TV commercials, radio advertising and even on the

    phone when customers are calling Lufthansa. These audio portfolio makes Lufthansa as a

    brand emotional easily recognizable everywhere.

    3.

    Current brand communication and content

    a) Promotion of the new Premium Economy Class

    So far, there is a two-class society on many flights. In the front you can find those seated

    persons who are on a business trip and behind the rest. Lufthansa now started to reallocate

    those seats through a breakthrough with another class of travel. Starting this December,

    passengers can experience more space, comfort with the normal service of the cattle class.

    Lufthansa is advertising it with the most important part of it the TV spot which is called

    Recorder. In the social web, the airline promoted the Premium Economy Class under the

    heading #premium time.

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    It occurs on the British musician Duncan Townsend. He familiarizes himself in the clip with

    the benefits of Premium Economy Class. The sound snippets that collects the artist on his

    journey of discovery, finally found the song "Rebel Yell" 80s icon Billy Idol. The Briton then

    texted: "More, more, more ..." - a fitting motto. Detail, the Lufthansa offer before on a

    microsite. Here demonstrate some of the protagonists each additional services. This can also

    be found on posters, ads and banners again. "For those who want more," is the message of

    Lufthansa to their potential customers. It should describe their experiences in the network

    among other artists and celebrities. There celebrated the Spot "Recorder" also preliminary

    premiere.

    4. Brand extension

    Mentioned below there are two highly successful strategies of advertisement that Lufthansa

    used to promote its brand for different customer segments. First it was the add campaign

    Nonstop you which was released in 2009 to promote the changing image of Lufthansa to a

    more. Hereby the passenger as individual was in the focus. Furthermore Lufthansa was

    aiming to a more family friendly image with the Muppets campaign in the beginning of 2014.

    a) Nonstop you

    Lufthansa launched 2009 a new ad campaign which has the slogan Nonstop you. It was

    released in print motifs, TV as well in the radio. The focus of this campaign was to show the

    experience from a passenger perspective, the very personal wishes, stories and events that are

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    ongoing behind every flight. Lufthansa tries to show and authentic situations, the real image

    what happening while traveling with Lufthansa. With for example individual combinations of

    Pictures and some headings like Buchung, Landung, Brandung (Booking, Landing, Surf).

    Important if it comes to the headings is that the 3 words rhyme themselves. This effect

    delivers a fluent approach to the reader.

    In the new campaign moving image will be an essential element in the media mix. In the TV

    spots, but also in the print motifs, it goes to the very personal wishes, stories and events from

    the perspective of passengers who stand behind every flight and make a flight with Lufthansa

    a special overall experience. This is also reflected in the imagery: The motifs are authentic

    and of course, the situations are true to life. The two used in the headings or triad, such as

    "booking. Landing. Surf "always refers to a passenger experience that is created by the travel

    with Lufthansa. The newly developed layout waived a strict stage and therefore opens up for

    the picture. The short, concise headlines provide a high recognition and a stringent national

    and international brand presence.

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    b) Muppets

    After working in the movie "Planes" in 2012 the cooperation between Lufthansa and the

    Disney Corporation goes into a second round. Together, the partners apply the German

    theatrical release of the movie "Muppets Most Wanted". Under the motto "Join the Muppets

    Lufthansa promoted the Disney movie with a broad online and offline campaign. By focusing

    on their brand values and therefore the enriching travel experience, Lufthansa wanted topresent itself with the help of Kermit & Co. as a family friendly airline. Therefore the focus

    on this campaign was mostly on family with children because of a specific logic. Usually it is

    the children who see a title and say: Mom, Dad, I really want to go into this film. In this case,

    it is rather the older generation that has grown up with the topic and says to the young: Come

    on, let's look at it together. These approach was used

    The Muppets brand superimposed or not outshine the Lufthansa brand. Here fit two strong

    brands to each other very well.

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    5. Brand strategy

    When analyzing the brand strategy and architecture of Lufthansa I first have to notice that the

    Lufthansa and their brands are categorized overall as an House of Brands, where most of the

    brands are not linked together in at all like Swiss, Germanwings and so on together with

    Lufthansa so they are acting like a Shadow Endorser. Even though for LSG Sky Chiefs

    Lufthansa is not connected at all to the catering brand. But on the other side we also have the

    Subbrands of Lufthansa like Lufthansa Cargo, Lufthansa City Line, Lufthansa Technik and so

    on, which are linked to the Master Brand Driver Lufthansa.

    a) Brand Hierarchy Levels

    To split up the Brand Hierachy of the aviation industry of Lufthansa we have to differentiate

    between the Corporate Brand (Lufthansa AG) which is separated into several airlines like

    Swiss, Lufthansa, Germanwings and so on, followed by the individual flights of these brands

    which is furthermore divided into the Modifier. Along with it we can divide this level of the

    brand hierarchy into the different service classes that airlines offering. Economy-, Business-

    and First Class. If I analyze the branding strategy of Lufthansa it is clear that company is

    focusing on the principle of simplicity that means not that many levels of hierarchy. At the

    same time the relationship among all brands is very clear and plausible.

    b) Brand Roles

    Taking the Lufthansa cooperation into account it is not so easy to separate the brand roles in

    the portfolio.

    Flanker: Its usually a fighter brand to create stronger points of parity with the

    competitors brand, so it can support the main brand of Lufthansa.

    Cash Cow: This brand doesnt need a virtually marketing support and has a sufficient

    number of customers. For the Lufthansa Corporation the Lufthansa City Line or

    Lufthansa Cargo is one of these brands.

    High-End Entry Level: Swiss and Lufthansa as premium airlines are contributing real

    value for the Lufthansa AG in total.

    Low-End Entry Level: On the other hand we have Jet Blue, which is using some of the

    Lufthansa background resources to operate flights for a low level budget.

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    c) Brand-product matrix

    Analyzing the Airline side of Lufthansa, the Brand-mix can be divided into two main groups.

    Cheap prices with minimum service (Germanwings, JetBlue, Condor etc.) and the other side

    where the individual premium service is in the focus by charging a higher price. These

    different brands are supporting themselves in the airline market.

    Economy

    Class

    Premium

    Economy Class

    Business

    Class

    First Class Cargo

    Lufthansa X X X X

    Germanwings X X X

    Swiss X X X X

    Jet Blue X X

    Austrian

    Airlines

    X X

    Lufthansa

    Cargo

    X

    If it comes to the low-end entry levels vs. high-end prestige ones, Germanwings as a low-end

    brand is profiting from the ownership of Lufthansa in many ways. The real value of

    Germanwings is improving by the image of Lufthansa through adding prestige to the brand.

    Because Lufthansa is positioned as a high level brand it isnt influenced by the low-end brand

    Germanwings at all. Furthermore it is kind of working as Flanker for Lufthansa to create

    stronger points of parity with the competitors brands. Therefore Lufthansa as a flagship can

    retain their positioning.

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    6. Conclusion and advice

    As it turned out there are many niches for specializing on specific consumer segments.

    However, big multinational air carriers have no other choice but to divide their passengers

    into different segments and try to offer the right products and services according to the

    segments particular needs. In fact the respective actions to attract customers are relatively

    similar amongst the big air carriers. The segments identified by Lufthansa may not be

    assignable to every other airline, but because of the different conditions on the local airline

    markets. Still, all of them are using loyalty programs which in my point of view are an

    important tool to create customer loyalty in all segments. Still, I am convinced that the

    importance of this kind of segmentation on the airline industry market will continue to

    increase in the future.

    By trying to analyze the customers behavior in the future this segment shows three different

    trends possible. The increaser will most likely use more Lufthansa products like flights or

    services in the future. He does not need to be convinced to travel with Lufthansa anymore.

    The right marketing strategy for this type of travelers would be to keep them informed about

    special offers or products there are interested in but not trying to push them too much risking

    to cause a rejection towards the company.

    The dropper will reduce their amount of traveling in the future. These people need to be

    convinced about the products and services offered in order to motivate them to fly more often

    with Lufthansa. The last and most dangerous group for a brands reputation is the group of the

    stopper. This group will not use Lufthansa products anymore which can happen because of

    multiple reasons. These customers can do a great damage to a brands reputation by spreading

    a bad word of mouth which is why they have to be dealt with very carefully.

    Based on increasing costs in several segments, many airlines have to save money by closing

    their additional services, even though customers still are expecting high class service. In my

    point of view, the segmentation between price sensitive customers and price insensitive

    customers like the global executives or more wealthy passengers will become more

    important in the future. Airlines known for their high class service such as Singapore Airlines,

    Qatar Airways, Lufthansa or Emirates will expand their range of products targeting the price

    insensitive passengers, while low cost carriers such as the earlier mentioned Ryanair and

    easyJet will gain more market share by continuing to offer services especially for the price

    sensitivepassengers.

    Microsoft-Konto 10/30/14 2:50 PM

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    7. References

    All References were available at 30th of October 2014.

    http://www.famouslogos.us/lufthansa-logo/

    http://www.ukessays.com/essays/management/the-turnaround-of-lufthansa-airlines-

    analysis-management-essay.php

    http://www.metadesign.com/de/clients/lufthansa

    http://famouslogos.net/lufthansa-logo/

    http://link.springer.com/chapter/10.1007/978-3-322-94637-9_3

    http://www.lufthansagroup.com/fileadmin/downloads/en/policy-

    brief/04_2014/epaper/epaper/LHG_Policybrief_2014-4.pdf

    http://www.lufthansagroup.com/en/themen/service-is-our-tradition.html

    http://www.lufthansagroup.com/en/press/media-library/press-kits.html

    http://www.markentechnik-blog.de/markenpositionierung-leistung-lohnt-

    sich/1465#sthash.lOcZwIp5.dpbs

    http://www.mediabuzz.com.sg/asian-emarketing/brand-n-ingameadvertising/2162-

    points-of-difference-or-points-of-parity-how-to-position-your-brand-competitively

    http://branduniq.com/2011/points-of-parity-versus-points-of-differentiation/

    http://www.ibrams.com/files/9513/6361/8417/iBrams_Case_Lufthansa.pdf

    http://newsroom.lufthansa.com/news/%E2%80%9Cnonstop-you%E2%80%9D-

    %E2%80%93-lufthansa-launches-new-ad-campaign

    http://download.springer.com/static/pdf/788/bok%253A978-3-8349-8744-

    0.pdf?auth66=1412725134_4ff50dd08c8494fa307541b8d15ef9e7&ext=.pdf

    http://de.slideshare.net/pinko0o/lufthansa-case-study

    http://www.onetoone.de/Kolle-Rebbe-positioniert-Lufthansa-neu-21580.html#

    http://www.youblisher.com/p/505265-Vergleich-Emirates-Airlines-Deutsche-

    Lufthansa-AG/

    http://www.lufthansagroup.com/de/presse/meldungen/view/archive/2012/march/08/art

    icle/2093.html

    https://www.youtube.com/watch?v=OqnQSmdPUOA

    http://www.wuv.de/kampagnen/kreation_des_tages/wie_die_lufthansa_den_bayern_sp

    ielern_das_abseits_erklaert

    https://www.youtube.com/watch?v=CV4U8JR4P7s

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    http://www.google.de/imgres?imgurl=http://meetinx.de/files/2011/12/lufthansa-

    werbung-mit-bayern-muenchen-590-1.jpg&imgrefurl=http://meetinx.de/lufthansa-

    werbung-featuring-fc-bayern-

    muenchen/&h=300&w=590&tbnid=xhFL3WVLWGax4M:&zoom=1&tbnh=90&tbn

    w=177&usg=__8Xf4Tuqjw0bADyyPgEEQH9Jp0EQ=&docid=-

    w_PlYHE76tb9M&sa=X&ei=HO01VKumMcil8AWEvoKQBg&ved=0CDYQ9QEwAw&dur=762

    https://dmai2.fluidreview.com/p/s/555722/

    http://www.lufthansagroup.com/en/press/news-

    releases/singleview/archive/2012/march/08/article/2093.html

    http://www.handelsblatt.com/panorama/lifestyle/lufthansa-will-sich-als-edel-fluglinie-

    positionieren-kleine-privatjets-und-grosser-service-seite-2/2480104-2.html

    http://reports.lufthansa.com/2011/ar/combinedmanagementreport/businesssegmentperf

    ormance/passengerairlinegroup/marketsandcompetition.html

    http://investor-relations.lufthansagroup.com/fileadmin/downloads/en/financial-reports/shareholder-info/LH-shareholder-info-2014-08-e.pdf

    http://investor-relations.lufthansagroup.com/fileadmin/downloads/en/charts-

    speeches/LH-the-way-forward-e-2014-07.pdf

    http://www.gaoshan.de/university/tp/term_paper-lufthansa-cathay-thai.pdf

    http://download.springer.com/static/pdf/54/bok%253A978-3-642-20080-

    9.pdf?auth66=1413172491_f57e0f7c87ffe89a6daf3f4b3fa59ba6&ext=.pdf

    http://dev.ulb.ac.be/cours/alle/PDF/LUFTHANSAmarketsdirect080930.pdf

    http://www.lufthansa.com/mediapool/pdf/09/media_964209.pdf

    http://reports.lufthansa.com/2011/ar/combinedmanagementreport/businesssegmentperformance/passengerairlinegroup/marketsandcompetition.html?cat=m

    http://www.onetoone.de/Kolle-Rebbe-positioniert-Lufthansa-neu_21580Teil3.html

    http://de.wikipedia.org/wiki/Lufthansa

    http://de.wikipedia.org/wiki/Geschichte_der_Lufthansa

    http://upload.wikimedia.org/wikipedia/de/c/c4/Subunternehmen_und_Beteiligungen_d

    es_Lufthansa-Konzerns.jpg

    http://www.partnersandnapier.com/work/lufthansa-airlines

    http://www.danpearlman.com/en/lufthansa-brand-movie/

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    http://www.austrianwings.info/2011/01/der-kranich-feiert-geburtstag-lufthansa-wird-

    85/

    http://www.logolook.de/2009/05/lufthansa-otto-firle-und-sein-kranich/

    http://www.lufthansagroup.com/de/presse/meldungen/view/archive/2014/july/24/articl

    e/3109.html

    https://de.answers.yahoo.com/question/index?qid=20090111073915AA7bWCs

    http://www.printfriendly.com/print/?source=site&url=http://www.ukessays.com/essay

    s/marketing/overview-and-market-analysis-for-lufthansa-airlines-marketing-essay.php

    http://www.managementstudyguide.com/branding-strategies.htm

    http://www.wuv.de/marketing/lufthansa_wirbt_fuer_aufgepeppte_holzklasse