Dipstick Survey 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.
Name three airlines flying in and out of KSA (Top-of-mind awareness) 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
Which airline do you prefer When you’re buying your own ticket? 1. SIA 2. Sri Lankan 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. Saudi Arabian Airlines 2. Emirates 3. Saudi Arabian Airlines 4. Saudi Arabian Airlines 5. Emirates 6. Saudi Arabian Airlines
Which airline you feel cares about you as a customer? 1. SIA 2. Sri Lankan 3. Saudi Arabian Airlines 4. None 5. Qatar 6. None
If each of those airlines were a brand of car what would they be? 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
Learnings 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
Airlines Brand Strategy December 2007Creative Cut retains the intellectual property rights to this document. Unauthorized usage of theideas presented herein, or replication in any form is strictly prohibited
In a highly competitive and rapidly changingindustry where brand is the ultimatedifferentiator, (Al Arobi for Trading Services)sought to reposition there airline and find newways to reach its various customer segments.
We will work in partnership with (Al Arobi forTrading Services) to identify new or hiddenmarket opportunities and to help position theirbrand for short-term impact and long-termvalue. We will then help articulate thatpositioning through a clear and codified brandarchitecture 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
Country Analysis Saudi Arabia 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 Nationals Expenditure on Tourism: $17 billion External/Internal Preferences to Fly on Low-Cost Airlines: 10 million people including expatriates Source: Economist Intelligence Unit
Country Analysis Saudi Arabia 26 Airports with a 28% growth of no. of arriving & departing passengers (1995 -2004) Inbound tourism (2005) Outbound tourism (2005) Trips: 8.037 million Trips: 4.403 millionMost popular reason for Saudis traveling abroad: 70% Holiday Source: international visitor survey
Country Analysis Saudi Arabia 2005 Inbound Tourism x 1,000 Trips Outbound Tourism x 1,000 Trips UA E 1043 UA E 718 511 Qatar 49 Q atar 138 O man 8 O man K uwait 202K uwait 1463 413B ahrain 356 B ahrain 0 500 1000 1500 0 200 400 600 800 GCC Countries GCC Countries Source: international visitor survey
Country Analysis Saudi Arabia 2005 Inbound Tourism x 1,000 Trips Outbound Tourism x 1,000 Trips Y emen 262 Y emen 433 S y ria 577P ales tine 9 S yria 705 L iby a 49 L ebanon 49L ebanon 69 J ordan 279 304 J ordan Iraq 52 E gypt 734 E gy pt 800 0 200 400 600 800 0 200 400 600 800 Other ME Countries Other ME Countries Source: international visitor survey
Country Analysis Saudi Arabia 2005 Purpose of Visit 10% 4% 1% R eligious 8% L eis ure/S hopping L eis ure/S hopping 18%25% 46% V is iting V is iting F riends /R elatives F riends /R elatives B us ines s B us ines s Health R elated 70% O ther 13% O ther 5% Inbound Outbound Source: international visitor survey
Sector Analysis Travel, Hotels and Resorts 2005 (GCC) 1% A irlines 12% Hotels & R es orts 37% C ar R ental S ervic es R es ort A reas Travel S ervic es 28% O ther S ervic es 7% 15% Source: PARC
Sector Analysis Top Brands – All Media 2005 GCC ( 000 US$ ) 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 Source: PARC
Sector Analysis Media Split % 2005 (GCC) 2% 32% Televis ion Magaz ine O utdoor 47% News paper R adio 17% 2% Source: PARC
Sector Analysis Media Expenditure Source: MindShare
Sector Analysis Media Expenditure Expenditure Split by Media 2006 Expenditure Split by Media 2007 HOL IDA Y R ES OR TS C ENTER 7000000 HOTEL 6000000 TR A V EL A G ENC Y 5000000Million $ 4000000 3000000 2000000 1000000 0 R O O SS TD E U PR O TV Source: MindShare
Messages in Most Popular Media Mix Outdoor Press Radio TV1. Airlines focus mainly 1. Airlines mainly use full 1. Radio is used from time 1. Most airlines create hi- on destinations and or half page colour ads to time by most airlines production value TV number of flights in graphic when they have special ads fare offerings or news2. They also use generic 2. Press is most used to 2. Most messages are messages to enhance communicate short- constantly innovative top-of-mind awareness term fare offers or new but stay with the brand news, i.e. routes and promise schedules
"Creative without strategy is calledart. Creative with strategy is called advertising.” Jef I. Richards
Do people “get” your strategy ?Our role is to make it “clear”
Position your Brand Positioning breaks through barriers of oversaturated markets to create new opportunities. Lissa Reidel FolioOne Ltd.
Create Customer Experience Public space experience Brand reservation Check-in Check-out depart Follow-up Awareness Brand & memory continuesAwareness Planning arrival Trip Individual space experience
By Choosing the right Brand Touchpoints TV Press Wireless Direct Mail Email Magazines Advertising Loyalty Competitions Schemes In store Event Cause Sponsorship Related Promotions POS SMS/Mobile Content Sponsorship/ Creation Partnership Online Advertorials/ Public Expert Consumer Vouchers Advertising Transportation Editorial On Pack Viral / WOM Email Consumer Online Consumer Lifestyle Trade Content Entertainment Member DR Press Shows Schemes Radio DR Online DR TV Posters Outdoor Ambient 1 Awareness 3 Experiential 2 Conversations 4 Personal
Deliver the right message to each segment Don’t treat me like a child “one message doesn’t fit all”
Let go of mindless segmentation Treat markets like “people” Bring back the loveAnd you might get some in return
Accountability to the Customer Create Brand Vision (client) Create Values Statement (client) Create Meaningful Propositions (client) Customer Delight at all Touchpoints (agency) Communicate with Respect, Insight, Passion (agency)
What can Creative Cut Do for You Brand building partnership World-Class Communications Cost-effective media buying (across the KSA region) Evaluation Cost-effective production Honest pricing Partnership
Baseline information to Request from You 1 Marketing Plan 2 Existing Marketing Research 3 Brand History 4 Strategic Planning * To be provided by the client for proper brand positioning and creative communication solutions
For more information, please contact:Faris Jeddawijeddawif@creativecut.com
Appendix 1: Model for your Brand Communication Message Brand Insight Brand Truth Brand Promise Need & usage drivers Brand Benefits Most compelling Tagline Product features Life link Reason to buy brand Brand Mission Scope reason for existence Brand TargetUsage communication Brand Positioning Brand Soul Brand Personality Platforms Brand beliefs Behavior Appearance Competitive slotting (values of brand) communication positioning
Appendix 2: BTL Services Creative Organizing & Conceptualizing development implementing ideas for of all types of promotions consumer Point-of-Sale (including legal promotions paraphernalia approvals & Creative Cut permissions) BTL Access to all B to B creative Services solutions female universities across KSA (for hospitality In-store sampling (for sampling, industry, trade, (wet & dry) annual days, wholesale etc) brand education etc) Licensed Corporate events Product launch Door-to-door (e.g. inauguration/ events (planning, sampling /facilities/outlets, Road shows organizing & operation annual day, – across GCC executing such – KSA wide employee day, etc events) (homes & offices)
Appendix 3: ATL Services Television: Newspaper: TVC’s, Programmers Magazines: All Local and Pan Arab sponsorships etc. All Local and Pan Arab Dailies and Weeklies or on Satellite TV Weeklies and Monthlies. free Newspapers (free to air & cable) Radio: Internet: Program sponsorships, Banner ads, Flash, interruption campaigns Advergaming, opt-in etc. on major local station e-mail advertising etc. Or Pan Arab. Creative Cut ATL Services Outdoor: Visibility of the ad in all Mobile Marketing: major cities using the SMS, MMS, Bluetooth etc. latest outdoor medium.