Consumer Perceptions
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 2007



Creative Cut retains the intellectual property rights to this document. Unauthorized usage of the
ideas presented herein, or replication in any form is strictly prohibited
In a highly competitive and rapidly changing
industry where brand is the ultimate
differentiator, (Al Arobi for Trading Services)
sought to reposition there airline and find new
ways to reach its various customer segments.
We will work in partnership with (Al Arobi for
Trading Services) to identify new or hidden
market opportunities and to help position their
brand for short-term impact and long-term
value. We will then help articulate that
positioning through a clear and codified brand
architecture 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
Market Scene – Some Facts &
Analysis
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 National's 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 million




Most 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                        202
K uwait                                             1463
                                                                                                      413
B 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                                         577

P ales tine        9                                                     S yria                                     705

   L iby a             49
                                                                      L ebanon        49
L 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
            5000000
Million $




            4000000
            3000000
            2000000
            1000000
                  0
                               R
                               O
                           O




                                        SS
                          TD




                                    E
                      U




                                   PR
                      O




                                             TV




                      Source: MindShare
Communications – a snapshot
Messages in Most Popular Media Mix


      Outdoor                       Press                         Radio                            TV

1. 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 news
2. 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 called
'art'. Creative with strategy is called
            'advertising'.”

           Jef I. Richards
Do people “get” your strategy ?


Our role is to make it “clear”
Create a Brand Strategy




    vision       +        actions   +   expressions   +   experience
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     continues
Awareness

            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 love

And you might get some in return
A Brand is NOT just a Product!
Great Brands Need


                          Story
                         Design
                        Emotions
                     Communication
                       Uniqueness
                        Ubiquity
                        Evolution
                        Longevity
Where do we go
from here ?
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 Jeddawi
jeddawif@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 Target

Usage 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.

Airlines brand strategy

  • 1.
  • 2.
    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.
  • 3.
    Name three airlinesflying 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
  • 4.
    Which airline doyou 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
  • 5.
    Which is yourpreference 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
  • 6.
    Which airline youfeel cares about you as a customer? 1. SIA 2. Sri Lankan 3. Saudi Arabian Airlines 4. None 5. Qatar 6. None
  • 7.
    If each ofthose 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
  • 8.
    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
  • 9.
    Airlines Brand Strategy December 2007 Creative Cut retains the intellectual property rights to this document. Unauthorized usage of the ideas presented herein, or replication in any form is strictly prohibited
  • 10.
    In a highlycompetitive and rapidly changing industry where brand is the ultimate differentiator, (Al Arobi for Trading Services) sought to reposition there airline and find new ways to reach its various customer segments.
  • 11.
    We will workin partnership with (Al Arobi for Trading Services) to identify new or hidden market opportunities and to help position their brand for short-term impact and long-term value. We will then help articulate that positioning through a clear and codified brand architecture system.
  • 12.
    How Competitive isthe 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.
  • 13.
    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
  • 14.
    Pattern & Determinantsof 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
  • 15.
    Market Scene –Some Facts & Analysis
  • 16.
    Country Analysis SaudiArabia 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 National's Expenditure on Tourism: $17 billion External/Internal Preferences to Fly on Low-Cost Airlines: 10 million people including expatriates Source: Economist Intelligence Unit
  • 17.
    Country Analysis SaudiArabia 26 Airports with a 28% growth of no. of arriving & departing passengers (1995 -2004) Inbound tourism (2005) Outbound tourism (2005) Trips: 8.037 million Trips: 4.403 million Most popular reason for Saudis traveling abroad: 70% Holiday Source: international visitor survey
  • 18.
    Country Analysis SaudiArabia 2005 Inbound Tourism x 1,000 Trips Outbound Tourism x 1,000 Trips UA E 1043 UA E 718 511 Qatar 49 Q atar 138 O man 8 O man K uwait 202 K uwait 1463 413 B ahrain 356 B ahrain 0 500 1000 1500 0 200 400 600 800 GCC Countries GCC Countries Source: international visitor survey
  • 19.
    Country Analysis SaudiArabia 2005 Inbound Tourism x 1,000 Trips Outbound Tourism x 1,000 Trips Y emen 262 Y emen 433 S y ria 577 P ales tine 9 S yria 705 L iby a 49 L ebanon 49 L ebanon 69 J ordan 279 304 J ordan Iraq 52 E gypt 734 E gy pt 800 0 200 400 600 800 0 200 400 600 800 Other ME Countries Other ME Countries Source: international visitor survey
  • 20.
    Country Analysis SaudiArabia 2005 Purpose of Visit 10% 4% 1% R eligious 8% L eis ure/S hopping L eis ure/S hopping 18% 25% 46% V is iting V is iting F riends /R elatives F riends /R elatives B us ines s B us ines s Health R elated 70% O ther 13% O ther 5% Inbound Outbound Source: international visitor survey
  • 21.
    Sector Analysis Travel,Hotels and Resorts 2005 (GCC) 1% A irlines 12% Hotels & R es orts 37% C ar R ental S ervic es R es ort A reas Travel S ervic es 28% O ther S ervic es 7% 15% Source: PARC
  • 22.
    Sector Analysis TopBrands – All Media 2005 GCC ( 000 US$ ) 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
  • 23.
    Sector Analysis MediaSplit % 2005 (GCC) 2% 32% Televis ion Magaz ine O utdoor 47% News paper R adio 17% 2% Source: PARC
  • 24.
    Sector Analysis MediaExpenditure Source: MindShare
  • 25.
    Sector Analysis MediaExpenditure 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 5000000 Million $ 4000000 3000000 2000000 1000000 0 R O O SS TD E U PR O TV Source: MindShare
  • 26.
  • 27.
    Messages in MostPopular Media Mix Outdoor Press Radio TV 1. 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 news 2. 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
  • 28.
    "Creative without strategyis called 'art'. Creative with strategy is called 'advertising'.” Jef I. Richards
  • 29.
    Do people “get”your strategy ? Our role is to make it “clear”
  • 30.
    Create a BrandStrategy vision + actions + expressions + experience
  • 31.
    Position your Brand Positioning breaks through barriers of oversaturated markets to create new opportunities. Lissa Reidel FolioOne Ltd.
  • 32.
    Create Customer Experience Public space experience Brand reservation Check-in Check-out depart Follow-up Awareness Brand & memory continues Awareness Planning arrival Trip Individual space experience
  • 33.
    By Choosing theright 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
  • 34.
    Deliver the rightmessage to each segment Don’t treat me like a child “one message doesn’t fit all”
  • 35.
    Let go ofmindless segmentation Treat markets like “people” Bring back the love And you might get some in return
  • 36.
    A Brand isNOT just a Product!
  • 37.
    Great Brands Need  Story  Design  Emotions  Communication  Uniqueness  Ubiquity  Evolution  Longevity
  • 38.
    Where do wego from here ?
  • 39.
    Accountability to theCustomer Create Brand Vision (client) Create Values Statement (client) Create Meaningful Propositions (client) Customer Delight at all Touchpoints (agency) Communicate with Respect, Insight, Passion (agency)
  • 40.
    What can CreativeCut Do for You  Brand building partnership  World-Class Communications  Cost-effective media buying (across the KSA region)  Evaluation  Cost-effective production  Honest pricing  Partnership
  • 41.
    Baseline information toRequest 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
  • 42.
    For more information,please contact: Faris Jeddawi jeddawif@creativecut.com
  • 43.
    Appendix 1: Modelfor 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 Target Usage communication Brand Positioning Brand Soul Brand Personality Platforms Brand beliefs Behavior Appearance Competitive slotting (values of brand) communication positioning
  • 44.
    Appendix 2: BTLServices 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)
  • 45.
    Appendix 3: ATLServices 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.