2 Be Airlines2 Be Airlines
Advertising strategyAdvertising strategy
Presented by the management teamPresented by the management team
Management TeamManagement Team
CEO : CEO : Simone HujisSimone HujisCFO : CFO : Piercarlo OddonePiercarlo OddoneCIO : CIO : Joan MoreauJoan MoreauVP Communication : VP Communication : Eugene KolesnikovEugene KolesnikovVP International operations : VP International operations : Suraj BasnetSuraj BasnetVP Sales and marketing : VP Sales and marketing : Kentaro KodakaKentaro Kodaka
Advertising Advertising - Definition -- Definition -
PPaid and non-personal and identified sponsoraid and non-personal and identified sponsor
Distinguish advertising from sales promotion, PR, Distinguish advertising from sales promotion, PR, personal selling, and direct marketingpersonal selling, and direct marketing
NNot frequent flyer program, sponsorship, company ot frequent flyer program, sponsorship, company magazine, mailingsmagazine, mailings
IIncludes brochures, posters, billboards, audiovisuals, ncludes brochures, posters, billboards, audiovisuals, and reprint of adsand reprint of ads
UUsed to direct a message to a target public and to build sed to direct a message to a target public and to build brand preferencebrand preference
Start up of 2 BeStart up of 2 Be
Luxury airline: Not just transportation but Luxury airline: Not just transportation but extra services like massage, extra services like massage, fashionfashion adadvicevice, e-shopping, e-shopping, tailor, sauna, hair dresse, tailor, sauna, hair dresser r etc.etc.
Only flying on selected destinations;Only flying on selected destinations; Singapore-LondonSingapore-London Tokyo-LondonTokyo-London London – New YorkLondon – New York New York – Los AngelesNew York – Los Angeles Los Angeles – SydneyLos Angeles – Sydney Sydney - SingaporeSydney - Singapore
MissionMission
Target market:Target market:Air travelers between following destinationsAir travelers between following destinations
London-NY, London-Tokyo, NY-LA, London-London-NY, London-Tokyo, NY-LA, London-Singapore, Singapore-Sydney, Sydney-LASingapore, Singapore-Sydney, Sydney-LA
Customers: Senior executives, wealthy Customers: Senior executives, wealthy individuals & and their familiesindividuals & and their families
Market positioningMarket positioningCorporate imageCorporate image
High qualityHigh qualityHigh service High service
MissionMission- Marketing mix -- Marketing mix -
Product (transport from A to B)Product (transport from A to B) Transportation + ExperienceTransportation + Experience Deliverable luxurious goods*Deliverable luxurious goods*
PricePrice Flat priceFlat price All in one*All in one*
Place Place Designated flightsDesignated flights Airport LoungesAirport Lounges
PromotionPromotion Private marketingPrivate marketing Public advertise (Fill-ins)Public advertise (Fill-ins)
Experience & EntertainmentExperience &
EntertainmentTransportationTransportation Food & DrinksFood & Drinks VIP Lounges & Sleeping SeatsVIP Lounges & Sleeping Seats
Tangible Intangible
MissionMission
Advertising Objective Advertising Objective Specific communication taskSpecific communication task
CCreate create consumer awareness of onsumer awareness of our our super luxurious airlinesuper luxurious airline
Achievement levelAchievement level 70 million70 million people people
70,000 passengers needed 70,000 passengers needed per monthper month Conversion rate: 1/1000Conversion rate: 1/1000
Specific audienceSpecific audience Potential customers from major cities worldwidePotential customers from major cities worldwide
Specific time periodSpecific time period 3 months 3 months (Sept till Dec)(Sept till Dec)
MissionMission
Hierarchy of effects model Hierarchy of effects model
Awareness Knowledge
Liking preference conviction purchase
Repeat purchase
Convince made right choiceReinforcement advertising
(NA)
Reminder advertising(NA yet)
Persuasive advertising2nd stage (3 months)
Informative advertising 1st stage (3 months)
Advertising objectivesAdvertising objectives
MissionMission--British AirwaysBritish Airways Case- Case-
Target Market•Customers: Leisure travelers but mainly business customers•Destination: “World’s favorite airline”
Positioning•Innovative and world class service for business customers•Extensive, affordable airline for leisure travelers•Serious company
Service•Segmented by class•Broad range of services from Executive Club Lounge services to special support for passengers with disabilities
MoneyMoney Brand equity Brand equity The 5 considered factorsThe 5 considered factors
Stage in product life cycleStage in product life cycle New – We need large advertising budgeNew – We need large advertising budge
tt Market share & consumer baMarket share & consumer ba
sese None of them -None of them - We need large advertisinWe need large advertisin
g budgetg budget Competition & clutterCompetition & clutter
StrongStrong - We need large advertising budg- We need large advertising budgetet
Advertising frequencyAdvertising frequency Medium - Our unique product will capturMedium - Our unique product will captur
e consumer’s minde consumer’s mind Product substitutabilityProduct substitutability
High - We need large advertising budgetHigh - We need large advertising budget
MoneyMoney Population to reachPopulation to reach
Europe (B, CH, D, E, F, GB, I, NL, Monaco)Europe (B, CH, D, E, F, GB, I, NL, Monaco) 131 M131 MJapan, Taiwan & AustraliaJapan, Taiwan & Australia 70 M70 MNorth America (US, Canada)North America (US, Canada) 150 M150 MTotalTotal 351 M351 M
Our CampaignOur Campaign AAverage price of a 30-second prime time verage price of a 30-second prime time ad ad in the US in the US
networks: networks: $125,000$125,000 Same rate in Japan, lower rates in the other countriesSame rate in Japan, lower rates in the other countries
7 weeks over a 3 month period, 49 days7 weeks over a 3 month period, 49 days 5 prime time ads 7 days a week, 3 off peak 5 days a week5 prime time ads 7 days a week, 3 off peak 5 days a week 1 Ad per hour over 24 hours on CNN International 1 Ad per hour over 24 hours on CNN International
Advertising Budget: Advertising Budget: €120 M€120 M
MessageMessage-Generation--Generation-
Incidental to useIncidental to use
Product in useProduct in use
Results of useResults of use
Ego satisfactionEgo satisfactionSocialSocialSensorySensoryRationalRational
Customer visualizationCustomer visualizationof reward of reward
Direct product rewardDirect product reward
BAAir FranceSingapore
Easy JetRyan Air
2B Airlines
Joan Maloney Framework
MessageMessage-Evaluation and selection--Evaluation and selection-
Core selling proposition (Dik Twedt)Core selling proposition (Dik Twedt) Exclusiveness, high desirabilityExclusiveness, high desirability
Positioning statementPositioning statement Key message :Key message :
““Luxurious experience”Luxurious experience” ““Traveling has 2Be fun”Traveling has 2Be fun”
TargetTarget Affluent people, rich partnersAffluent people, rich partners
Communication objectiveCommunication objective To know (Generate brand awareness)To know (Generate brand awareness) Unique experienceUnique experience
Support for promiseSupport for promise TestimonialTestimonial Emphasis on on-board servicesEmphasis on on-board services
e.g. hair dressers and masseusee.g. hair dressers and masseuse Media selectionMedia selection
TVTV Upscale magazinesUpscale magazines
MessageMessage-Execution--Execution-
Execution Execution Emotional positioning Emotional positioning Importance Importance
Picture, headlinePicture, headline
MediaMedia
Media selectionMedia selection 70 M of influenced people -> TV channels (CNN, BBC & 70 M of influenced people -> TV channels (CNN, BBC &
nationals) all over the worldnationals) all over the world Image of luxury -> Business magazines (WSJ, FT, BW), Image of luxury -> Business magazines (WSJ, FT, BW),
Specialized web sitesSpecialized web sites Target of rich ladies -> Specialized newspapersTarget of rich ladies -> Specialized newspapers
Reach, frequency, and impactReach, frequency, and impact Reach : 50% of the population of urban areasReach : 50% of the population of urban areas FrequencyFrequency
8 times per day (3 times in daytime and 5 times for prime time) for 8 times per day (3 times in daytime and 5 times for prime time) for national broadcastingnational broadcasting
For CNN, once every hour 24 hours a dayFor CNN, once every hour 24 hours a day ImpactImpact
20% of the people reached remember 2Be20% of the people reached remember 2Be
MediaMedia
Media timingMedia timing Macro schedule Macro schedule
Create awareness of new airline so, not seasonalCreate awareness of new airline so, not seasonal Delay factorDelay factor
September start advertisement campaignSeptember start advertisement campaign December 15 (before Christmas) for first flight December 15 (before Christmas) for first flight
Micro scheduleMicro schedule Intermittent / risingIntermittent / rising
Geographic allocation (language, national airport/airline)Geographic allocation (language, national airport/airline) World wide : CNN world wideWorld wide : CNN world wide National : USA, UK, Japan, Singapore, AustraliaNational : USA, UK, Japan, Singapore, Australia Surrounding countries : France, Germany, TaiwanSurrounding countries : France, Germany, Taiwan
MediaMedia--Competitors-Competitors-
Media used by companies during the last 50 yeaMedia used by companies during the last 50 years for advertising arers for advertising are Posters Posters National eventNational event TV add / Co-brandingTV add / Co-branding
For a larger scale (worldwide), companies partnFor a larger scale (worldwide), companies partner in business groups (SkyTeam, etc…) that maer in business groups (SkyTeam, etc…) that manage the image of the whole group at an internatnage the image of the whole group at an international level (Newspaper / TV)ional level (Newspaper / TV)
MeasurementMeasurement
AdvertisingAdvertising
SalesSalesAdvertisingAdvertising
AwarAwareenessness
FeaturesFeatures
CompetitorsCompetitors
Y = α + β * X + εY = Effect on awareness or sales
X = Advertising
OtherOther
MeasurementMeasurement
Communication effectCommunication effectPre-testingPre-testing
In the target cities (Tokyo, Singapore, London, In the target cities (Tokyo, Singapore, London, New York, Los Angeles, Sydney)New York, Los Angeles, Sydney)
Consumer feedbackConsumer feedbackPortfolio test Portfolio test Laboratory test Laboratory test (measure heart beat, sweating, opening of pupils)(measure heart beat, sweating, opening of pupils)
Post-testingPost-testingAfter 3 months campaignAfter 3 months campaignTest how much brand awareness increased Test how much brand awareness increased
British Airways ShuttleBritish Airways Shuttle case case-Mission--Mission-
Remain market leader in domestic air-travel Remain market leader in domestic air-travel Withdrawal of backup & turn up and take off serviceWithdrawal of backup & turn up and take off service Goal: raise awareness of high travel Goal: raise awareness of high travel frequency and cofrequency and co
nvenient time schedule of nvenient time schedule of British Airways Shuttle as British Airways Shuttle as domestic carrierdomestic carrier
Target audience: Male domestic air-travelers between Target audience: Male domestic air-travelers between 35-44 years35-44 years
British Airways ShuttleBritish Airways Shuttle case case-Money & Message--Money & Message-
Money: Money:
Budget 1M pounds used Budget 1M pounds used intenseintense media media strategy & standout from competition in strategy & standout from competition in cluttered marketcluttered market
Message: Message:
High frequency & convenient scheduleHigh frequency & convenient schedule Rational positioningRational positioning Wake-up & finish the meeting theme Wake-up & finish the meeting theme HumorousHumorous
British Airways ShuttleBritish Airways Shuttle case case-Media--Media-
Media: Media: Media type: Media type: BillboardBillboard and radio and radio Intensive Intensive in peak hours: 6-9 AM 12 spots & 5-in peak hours: 6-9 AM 12 spots & 5-
7 PM 8 spots7 PM 8 spots Well branded commercial radio stationsWell branded commercial radio stations London, Southeast, Glasgow, Edinburgh: London, Southeast, Glasgow, Edinburgh:
Outdoor and radio: 21 April-4 May Outdoor and radio: 21 April-4 May Manchester: Manchester:
Outdoor: 21 April-4 May Outdoor: 21 April-4 May Radio 5 May – 16 MayRadio 5 May – 16 May
British Airways ShuttleBritish Airways Shuttle case case-Measurement--Measurement-
MeasurementMeasurement Pre-test & post-test: Pre-test & post-test:
awareness increased awareness increased 12%12%
Staggered approach Staggered approach worked better than worked better than combined, Manchester combined, Manchester awareness increased awareness increased 18%18%