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Singapore airline's lock-in strategy

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- Time: 2014
- Organization: College(undergraduate)
- Class: Network Economy (Economics)
- Project description: Research on Singapore Airline's lock-in strategy.

Published in: Business
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Singapore airline's lock-in strategy

  1. 1. Singapore Airlines Lock—| n Strategy
  2. 2. "/ ./ /'/ ‘ "/ /. /'/ ‘ ’/ /. /X/ ‘ ‘l Loyalty Program — Kris Flyer What iS Kris Flyer? Frequent Flyer Program (Mileage Program) How can customers earn Miles? /Airlines: Star Alliance network airlines nor: /A . Im1i. u1 7 E, ... .,. _J / Jswlss I , o a World s %AEG£AN Avnanca & lflfpousu AIRLINES Tfl. .. Largest M " C "‘ N " 0" 55"“ brussels airlines P TAPPORTUGAL A . an I {filmy an/ my copamrllnes E Scandinavian Airiincs e3 THAI N ei-W0 rk Am ~5wz£Au~D% ‘CROAYIA AIRLINES 335%” ‘, ,,, .,,5 fi 1‘unxnsuAuu. m:s ANA. ' Enunrn/ mi smear-one Amunas U N IT E D ASMA WU, _,ES’l l{lh10pmn on-was’ 1 Q2‘ soum Anucnu Amwus U-s AIRWAYS
  3. 3. _ _ _ _ ’/ K/. /K" T1?‘/ §/‘ ’ L _ Loyalty Program - Kris Flyer i_ What is Kris Flyer? Frequent Flyer Program (Mileage Program) How can customers earn Miles? VAirlines: Star Alliance network airlines V Non-Airline Partners: Co—brand credit cards (Singapore, Australia, Japan, Hong Kong, Indonesia, Malaysia, Taiwan. and United Arab Emirates) ‘mans! rm: .-<: :PPSCum ; ‘ 1‘. i it . l’PSC1am. n‘. . —¢, _ . -,
  4. 4. _ _ _ , ’/ K/. /K" T1?‘/ §/‘ ~ L _ Loyalty Program - Kris Flyer i. _ What is Kris Flyer? Frequent Flyer Program (Mileage Program) How can customers earn Miles? VAirlines: star Alliance network airlines V Non-Airline Partners: Co—brand credit cards, Credit and charge cards (33 credit cards around the world including American Express and Citi Bank), Hotel and service residents (31 brands including Hilton, Hyatt, and | nterContinental), Car rental, Telecommunication, and Cruise V Promotions. - Provide seasonal promotion with various companies
  5. 5. ‘ Loyalty Program - Kris Flyer .4, f l‘ *1 ll’ 3 ' 2 ' — I . LI . Eu‘ : .9 l CruiseEscapes The Economist Europcar Dounle KrisFl_i‘er miles i1 Feo — 31 KrisF| yer miles and other Benefits i1 Earn 1.000 miles with subscription. Douole KrisF| ;ier miles and a10°/2 i. vlar201-1»; Feb-31lilar201-$2 discount i1 Fez — 31l. lar201-1: W3 i “. i‘-v. ,/,3’ ll 1 , z,“{_ s _« Fairmont Singapore HERTZ InterContinenta1® Hotels M1 Singapore Triple Ki| SF| _v'eI’ miles and a special Douole KrisFlyer miles. US$25 off and Group >. “.'in 50.000 KrisFl~, 'er miles i1 Fen - discount [1 Feb -31 l.1ar201-$1 special rates :1 Fe: J—31 l. lar2014: Double KrisFli'er miles and 209": 31”ar2m4i dining discount i1 Fen — 31l. lar2014‘:
  6. 6. ’$/ K./ /$1‘ “-/ '-/ X/K. /" ’. /K. /'/ X/‘ 3/K. /‘ZK/ ‘ Loyalty Program - Kris Flyer The more you fly, the more benefits you receive If customers gain more mileage, their membership can be upgraded to higher ties where they can enjoy exclusive benefits and greater recognition lllwll‘ I’ 2177/ "‘, l;; ‘ if’ ‘_ _ i (7: ‘ " : .—. :._§ 4.. .‘. (N 1 '( . ~w Hi " [ ‘ I V’: E ' -‘Z 1 L-' _ Vt. . . J. ‘/ "" J 1 fit ‘W
  7. 7. Loyalty Program - The PPS Club What is PPS Club? Membership program that provides higher level of service and personalized attention HOW can customers become El member? They automatically attain membership when they accrue a PPS Value of $25,000 within a period of 12 consecutive months. PPS Value: It is in Singapore dollars, and can be earned when customers travel in the Singapore Airlines suites, First or Business Class on Singapore Airlines or $ilkAir
  8. 8. " _ Loyalty Program — The PPS Club “ 25% Tier Bonus on KrisF| yer Miles “ Guaranteed Reservation * Priority Check-in Increased Check-in Baggage Allowance “ Priority Boarding *‘ Access to Singapore Airlines Si| verKris Lounges, Si| kAir Lounges, Star Alliance Gold Lounges, Virgin Australia Lounges, and Virgin Atlantic Clubhouses The PPS clur : i;, »«sl: §§; l tr-‘é A — ’ . , -, I ‘‘ ' T. _. ~—*‘. l? - _ _ v 1 1 An; I ' - __ — ’ _* — -. ‘~'}’_. J' $4‘; - ' ’
  9. 9. "K. /' x” / ‘ 1“ Most airlines have - similar aircraft (Airbus/ Boeing) that ensures safety ° Similar destinations ° similar service ° similar loyalty program +| t’s getting hard to Differentiate Singapore Airline enhance their brand value by ‘Experience Marketing’ Intentional activities which immerse people within brand through the stimulation of their senses, which result in a positive, emotional tie to the company
  10. 10. Experience Marketing (1) Consistency on their visual brand image — Singapore Girl T"? '”‘<. >’0" ‘O’ V Visual trade mark and brand making us the: world's most awarded airline. V Asian values and hospitality V Caring, warm, gentle, and elegant Since 1972, the image of the Singapore Girl has appeared in many advertisements. in 2004, The Singapore Girl won the Outstanding Contribution to Tourism Award for the 18”‘ Singapore Tourism board's tourism award . “- v } , ‘ '. ~, ’ ,3». : . _Aji ‘.8 i~‘3«= *.-<-~‘. /«*1 < I. a'_'. .’ xi-‘. A41 F)/ £., -11:- 4
  11. 11. Experience Marketing (2) Awake senses — sIA’s Aroma V Singapore Airlines introduced Stefan Floridian Waters by the end of 1990s V It is an aroma which has been specifically designed as a part of Singapore Airlines V Flight Attendants(Singapore Girls) use this as perfume Vlt is blended the entire fleet of planes including towels and seats
  12. 12. Experience Marketing (3) Cuisines V World Gourmet cuisine in all classes V Have advisory panels consist of world famous cooks and sommelier (4) KrisWor| d V In-flight entertainment system V Widescreen LCD TV V A range of movies, TV, music, games, and interactive programs V Built-in office software with USB port V In-seat AC power port
  13. 13. Experience Marketing Awake customer's senses & Build consistent brand image
  14. 14. / /'/ l ‘'. /. /J‘ 35$/ /‘ ". /. /N/ /‘ Is their strategy successful? International passengers for major airlines (%) I QANTAS I JETSTAR I MALAYSIA AlRLlNES I SINGAPORE I AIR NZ I THAI AIRWAYS BRWISH I EMIRATES El FREEDOM AIR - AIRASIA x - AIRWAYS - VIRGIN 3 CATHAY PACIFIC 1 JAPAN - OTHERS
  15. 15. Is their strategy successful? 2013 Startrax World Airline Awards 2013 gOmlUiU'| -hL, JlJI-A . _. . _. 0-4 N D-‘ U) 0- -A 0-‘ UI H O 0-‘ l v- Q 0- O [U 0 Emirates Qatar Airways Singapore Airlines ANA All Nippon Airways Asiana Airlines Cathay Pacific Airways Eohad Airways Garuda Indonesia Turkish Airlines Qantas Airways Lufthansa EVA Air Virgin Australia Malaysia Airlines Thai Airways Swiss Intl Air Lines Korean Air Air New Zealand Hainan Airlines Air Canada '_? Gi’, :OVJ: NLnI. u N 055350353 1- KO "/ ./ /'/ ‘ "/ /. /'/ ‘ ’/ /. /X/ ‘

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