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ELAL PRESENTATION-Lior Pridor

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ELAL PRESENTATION-Lior Pridor

  1. 1. CASE STUDY- EL-AL ISRAEL AIRLINE PRESENTED BY: LIOR PRIDOR 1
  2. 2. COMPANY OVERVIEW • Incorporated on November 15, 1948 as a state owned company. In 2003, steps for privatizing the Company have begun, and its shares were offered to the public. • The increasing number of competitors carriers for flights between Israel and Europe caused a problematic business situation since El-Al‘s association with Israel affected many of the company’s services • El-Al now had to be presented as one that is valued by international standards and provide value for its costumers regardless of the company’s origin • As a response to the increased competition, in 2014 the Company launched a new aviation brand in the name of "UP" under which discounted flights were operated in the form of low cost flights to destinations in Europe. 2 EL-AL AIRLINES n.d, EL-AL Israel Airline History. Retrieved from http://www.elal.com/en/About-ELAL/About-ELAL/History/Pages/default.aspx
  3. 3. PERCEPTION OF THE BRAND IMAGE The logo’s ‘Mere Exposure effect’ The use of the Israeli flag image and colors all elicit favorite attitudes simply because we have been expose to it in the past. Personally Relevant Stimulus Using associations to Israel in order to appeal to consumers’ goals, values and needs. El-Al uses the national anthem and Israeli celebrities in order to target the consumer attention Patrick Perelsztejn 6.4.2008, EL-AL HATIKVA ISRAEL 60, Television clip. Retrieved from https://www.youtube.com/watch?v=iVS1yoZMY9I 3
  4. 4. Perception of Brand Image, Brand Personality and Routes of Processing Brand Image Uses a strong linkage of Cognitive and Emotional association to Israel. Uses scripts regarding the sequences of actions that relates to purchasing and using the product- Hebrew speaking crew, Kosher business etc… Motivation Ability and Opportunity High Motivation- high personal relevancy. EL-AL answers unique needs for the consumers. Ability- using previous knowledge about the brand history is required. Opportunity only for the target audience who wants to fly to and from Israel Brand personality High on Competence- expertize presented in the different operation El Al participated along the years High on Warmth- connection to the Israeli culture and the contribution it has to the Israeli society. Based on: Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer behavior. Nelson Education. Aaker, J. L. (1997). Dimensions of brand personality. Journal of marketing research, 347-356. Malone, C., & Fiske, S. T. (2013). The human brand: How we relate to people, products, and companies. John Wiley & Sons. 4
  5. 5. North America Campaign Analysis Two different Market Segments Israeli consumers who are looking to travel to North America . Non Israeli consumers looking to visit Israel EL-AL AIRLINES 12.10.2014, The Israeli Journey starts with EL-AL. Retrieved from https://www.youtube.com/watch?v=QQI3lEwWtgM Rabel rabel rabel 7.20.2015 EL-AL Boston. Retrieved from https://www.youtube.com/watch?v=5DMYzvwiaW8 5
  6. 6. North America Campaign Analysis  Using Attractive Actors and Pleasant Music -More noticeable and often arouse positive feelings and attract consumers to watch the commercial. By pairing them with the brand consumers will ultimately attribute the positive feelings with the conditioned stimulus- the El-Al brand  Concrete and Vivid Imagery- concrete stimulus are easier to process than abstract ones. Consumers match the images to the goals they look to achieve in using the brand US US CS Effecting Consumers’ Attention: Based on: Burroughs, W. J., & Feinberg, R. A. (1987). Using response latency to assess spokesperson effectiveness. Journal of consumer research, 295-299. Kellaris, J. J., Cox, A. D., & Cox, D. (1993). The effect of background music on ad processing: A contingency explanation. The Journal of Marketing, 114- 125. Pavlov, I. P. (1932). The reply of a physiologist to psychologists. 6
  7. 7. North America Campaign Analysis  Using a Surprising Stimulus: The use of the stimuli out of context arouse the viewer curiosity as it makes an effort to process and analyze the situation ultimately leading to increased attention Effecting Consumers’ Attention: Based on: Menon, S., & Soman, D. (2002). Managing the power of curiosity for effective web advertising strategies. Journal of Advertising, 31(3), 1-14. 7
  8. 8. North America Campaign Analysis Similarities and Differences between campaigns for High MAO central route processing attitude formation: Aspect Factors influencing attitude Non Israeli market segment Israeli Market segment Emotional Symbolic consumption- tendency for consumers to focus on meanings beyond the tangible, physical characteristics of material objects Connectedness function- address the consumer connectedness to the Israel society and the experience of visiting it Emblematic function- states that by using the brand the consumer connects to his social group Emotional Appeal-affective shaping of consumers’ attitude toward trying the product Consumers viewing the commercial can place themselves in the situation presented and experience the positive emotions triggered from it. Cognitive Match between the Consumer Values and the brand Individualistic values- The ability of the experience to match different individual goals as they visit Israel. Equality values- different ethnicities, religions and ages enjoying the brand Individualistic values- The advantage of the vacation while enjoying the quality and familiarity of home. Masculinity Positive attributes formed from having an army trained male pilot Based on: Levay SJ, (1959), Symbols for Sale. Harvard business review 37 (4), 117-124 Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer behavior. Nelson Education. Kim, J., & Morris, J. D. (2007). The power of affective response and cognitive structure in product-trial attitude formation. Journal of Advertising,36(1), 95- 106. 8
  9. 9. The ‘Open Sky’ Crisis  The ‘Open Sky’ agreement created a free-market environment thereby increasing competition.  In response the company launched a new aviation brand in the name of "UP", under which low cost flights are operated in an attempt to increase Operational Effectiveness.  El-Al trade off, presented by the strategic positioning, creates a uniqueness for the brand. Nevertheless El-Al management choose to keep the UP brand and try to match current competitors by providing low cost flights. Based on: Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company: Strategic issues for diversified groups, New York, 285-314 9
  10. 10. The UP Brand as EL-AL Horizon Two  Horizon Two- the single minded drive to increase revenues. The Up brand provides access to the new market of low cost flights. ??? Based on: Baghai, M., Coley, S., & White, D. (2000). The alchemy of growth: Practical insights for building the enduring enterprise. Da Capo Press. 10
  11. 11. EL-AL Functional Fit Israel Airline Only Israeli air force pilots are hired Only Israeli security Longer security process Low rate for organized Jewish groups Executing operations for bringing Jews to Israel Jewish Heritage Keeping a Kosher business Does not operate on Saturdays and high holidays Traditional Israeli food is served on flights Israeli movies and shows during flight Kosher Meals Based on: Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company: Strategic issues for diversified groups, New York, 285-314 11
  12. 12. UP and EL-AL Strategic Positioning “Not just an airline”- consumers look for the experience of Israel as they use the brand Consumers are looking for a fast and efficient service from the airline The importance of maintaining high level security Security is not important if it hurts check in times. Need Based Positioning Access Based Positioning Comparing Costumers’ Needs and Accessibility of services for EL-AL and the new UP Brand. Based on: Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company: Strategic issues for diversified groups, New York, 285-314 EL-AL consumers Low Cost airlines Consumers 12
  13. 13. RECCOMENDATIONS 1.Two Separate Brands: El-Al should present a separate brand from UP in order to minimize the overlap of attributes and present a new brand image specifically for the target consumer of low cost airlines. THE NEW UP BRAND ATTITUDE FORMATION Emotional Aspects: Changing colors and removing the Israeli flag. Focusing more on emotional appeal of the new presented brand than the emotions elicited by the Israeli associations. Cognitive Aspects: Presenting supportive arguments: Best quality of pilots, Efficient way to fly etc... Presenting an attractive source which is similar to the target consumer : business men, young couples etc…. 13
  14. 14. RECCOMENDATIONS 2. Building horizon 3: The El-Al brand presented horizon one as the experience of Israel. This quality can be a useful association when forming the third horizon which will involve cooperating with other products who offer the Israel experience. Brand extensions will present horizon three as a well-organized travel experience for both domestic costumers traveling abroad and international consumers visiting Israel. 14 EL-AL AIRLINES n.d, UP Web site. Retrieved from http://www.flyup.co.il
  15. 15. References  Aaker, J. L. (1997). Dimensions of brand personality. Journal of marketing research, 347-356.  Baghai, M., Coley, S., & White, D. (2000). The alchemy of growth: Practical insights for building the enduring enterprise. Da Capo Press.  EL-AL AIRLINES 12.10.2014, The Israeli Journey starts with EL-AL. Retrieved from https://www.youtube.com/watch?v=QQI3lEwWtgM  EL-AL AIRLINES n.d, EL-AL Israel Airline History. Retrieved from http://www.elal.com/en/About-ELAL/About- ELAL/History/Pages/default.aspx  Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer behavior. Nelson Education.  Kim, J., & Morris, J. D. (2007). The power of affective response and cognitive structure in product-trial attitude formation. Journal of Advertising,36(1), 95-106.  Levay SJ, (1959), Symbols for Sale. Harvard business review 37 (4), 117-124  Malone, C., & Fiske, S. T. (2013). The human brand: How we relate to people, products, and companies. John Wiley & Sons.  Patrick Perelsztejn 6.4.2008, EL-AL HATIKVA ISRAEL 60, Television clip. Retrieved from https://www.youtube.com/watch?v=iVS1yoZMY9I  Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company: Strategic issues for diversified groups, New York, 285-314  Rabel rabel rabel 7.20.2015 EL-AL Bostong. Retrieved from https://www.youtube.com/watch?v=5DMYzvwiaW8  EL-AL AIRLINES n.d, UP Web site. Retrieved from http://www.flyup.co.il 15

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