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British Airways - Brand strategy

The document outlines a marketing and brand strategy proposal for British Airways, detailing its background, market trends, competitive analysis, and proposed integrated marketing communications. Key points include a SWOT analysis identifying strengths like brand image and weaknesses such as in-flight experience, alongside financial insights and the Ansoff matrix for growth strategies. The proposal emphasizes the airline's premium positioning while considering the rise in budget travel demand and new technological implementations to enhance the customer experience.

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Carolyn Ong Charlie Tan Johnson Yu Tu Bui Uday Joshi w1569862 w1558845 w1543908 w1572120 w1561985 Marketing and Brand Strategy Power Group
OUTLINE ● British Airways Background ● Market Trend ● Competitors Analysis ● SWOT Matrix ● Ansoff Matrix ● Keller’s CBBE Model ● IMC Proposal
BRITISH AIRWAYS ● UK largest airline ● Based in Heathrow (Terminal 5) ● British heritage ● Trusted brand Range of services - First/Business/Economy Class - Hotel and flight combination - Car hire Source: British Airways, 2015; Smithers, 2015
PEST: MARKET TREND Political Fear of terrorism (Massey, 2015) ⇒ Tighter Security ⇒ Arising cost (adapting to procedures) Economical Drop in oil price (Carlson, 2015) Reduce operational expense ⇒ Budget travel ⇒ Rise in interest rate Social 25-39: 2% increase (ONS, 2015) Holiday/Leisure travellers (Mintel, 2015) ⇒ Leisure/Package offers ⇒ Competitive pricing Technological 73% of mobile phone and digital users (Mintel, 2015) ⇒ Use of various online media ⇒ Upgrade service
COMPETITORS ANALYSIS HIGHLIGHT Strength Weakness Positive Brand Image Lack of engaging Marcoms Brand Extension Poor in-flight experience Lower cost / High coverage Poor brand image Innovative Lack of brand awareness In-flight Wi-Fi Using Cheap workforce
COMPETITORS ANALYSIS HIGHLIGHT Target Audience Marcoms 25-39 Travel Package 18-24 Sky News Snow Report 25-39 Low Fares 25-44 ITV Wales Weather Social Media 25-38 New Years Deals Source: YouGov, 2015
POSITIONING MAP
FINANCIAL ANALYSIS - REVENUE Source: Mintel (2015) PASSENGER GROWTH RATE 2010-2014 2015-2020 3% 18%
FINANCIAL ANALYSIS - PROFIT Ryanair drop fares to encourage customers BA made loss due to strike, high cost BA sponsored London Olympics Norwegian’s expansion
SWOT MATRIX - Strong brand image, large fleet ⇒ penetrate budget travel - Cooperation with hospitality service ⇒ meet demand of leisure travellers - Higher price for much more premium service ⇒ money-value - Online platform ⇒ create communication with more interactive, feelings and positive image - Nation-image, high budget invest in safety ⇒ gain trust, reinforce decision - Heritage image, reputation ⇒ gain preference over budget airlines - Perceived as premium brand ⇒ lose segment of budget airline - Conservative and slow respond to market
ANSOFF MATRIX Current BA position ● Premium airline Product Development ● In-flight Wi-Fi service ● Improve passenger flight experience Market Development ● Expand Budget airline market ● Growth in budget travellers* ● Increased travellers within EU* Source: Statista (2015)
KELLER’S CBBE MODEL Source: Keller et al (2015)
CURRENT ADVERTISEMENT Source: Creative Club (2014)
INTEGRATED MARKETING COMMUNICATIONS PROPOSAL
Option 1 Medium budget Shorter time frame High ROI
SMARTER WAY FOR TRAVEL ● Benefits: ○ Great Value ○ Uncompromised Quality ○ Easy Access To Airports ○ Emphasise Stress-free experience
References British Airways. (2015). History and heritage. British Airways. Available from http://www.britishairways.com/en-gb/information/about- ba/history-and-heritage [Accessed 15 December 2015]. Carlson, D. (2015). Airlines – but not passengers see benefits as crude oil as prices drop. The Guardian. Available from http://www. theguardian.com/business/2015/mar/15/airlines-passengers-crude-oil-prices-drop [Accessed 7 December 2015]. Creative Club. (2014). British Airways Advertisement. Creative Club. Available from https://www.creativeclub.co.uk/fs.aspx [Accessed 14 December 2015]. Keller, L, K. Aperia, T. and Georgson, M. (2012). Strategic Brand Management: A European Perspective. 2nd Edition. England: Pearson Education. Mintel. (2015). The premium budget vs traveller –UK – February 2015. Mintel. Available from http://academic.mintel. com/display/715892/ [Accessed 6 December 2015]. Mintel. (2015). Digital trends – UK – March 2015. Available from http://academic.mintel.com/display/732273/?highlight#hit1 [Accessed 6 December 2015]. Massey, R. Simons, W, J. and Marsden, R. (2015). European aviation chiefs force British Airways to carry an extra person in the cockpit at all times – but experts fear it may make planes more vulnerable to terrorism. Daily Mail. Available from http://www.dailymail. co.uk/news/article-3014474/EasyJet-Virgin-Atlantic-making-planes-vulnerable-terror-attacks-knee-jerk-new-safety-measures-wake- Germanwings-tragedy-say-air-safety-experts.html [Accessed 7 December 2015].
References ONS Population Size. (2015). C4.3 2014-based Numbers surviving at exact age. Available from http://www.ons.gov.uk/ons/datasets- and-tables/index.html?pageSize=50&sortBy=none&sortDirection=none&newquery=surviving&content-type=Reference+table&content- type=Dataset [Accessed 14 December 2015]. Smithers, R. (2015). British Airways Named UK’s Most Popular Brand. The Guardian. Available from http://www.theguardian. com/business/2015/mar/02/british-airways-named-uks-most-popular-brand [Accessed 5 December 2015]. Statista. (2013). Amid the Euro Crisis, Europeans turn to low-cost Airlines. Statista. Available from http://www.statista. com/chart/1571/amid-the-euro-crisis-europeans-turn-to-low-cost-airlines/ [Accessed 13 December 2015]. YouGov. (2015). YouGov Brand Profiles. Available from https://yougov.co.uk/profileslite#/ [Accessed 7 December 2015].