Airlines brand strategy

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
5. Emirates

Which is your preference if you are being sent on business?

2. Emirates
5. Emirates

Which airline you feel cares about you as a customer?

1. SIA
2. Sri Lankan
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



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



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


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

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

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

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