Luxurious experience on board?

1. Luxurious experienceon board?

2. 2 Be Airlines Advertising strategy Presented by the management team

3. Management Team • CEO : Simone Hujis • CFO : Piercarlo Oddone • CIO : Joan Moreau • VP Communication : Eugene Kolesnikov • VP International operations : Suraj Basnet • VP Sales and marketing : Kentaro Kodaka

4. Advertising - Definition - • Paid and non-personal and identified sponsor • Distinguish advertising from sales promotion, PR, personal selling, and direct marketing • Not frequent flyer program, sponsorship, company magazine, mailings • Includes brochures, posters, billboards, audiovisuals, and reprint of ads • Used to direct a message to a target public and to build brand preference

5. Start up of 2 Be • Luxury airline: Not just transportation but extra services like massage, fashionadvice, e-shopping, tailor, sauna, hair dresser etc. • Only flying on selected destinations; • Singapore-London • Tokyo-London • London – New York • New York – Los Angeles • Los Angeles – Sydney • Sydney - Singapore

6. Agenda Message Measurement Mission Money Media

7. Mission • Target market: • Air travelers between following destinations • London-NY, London-Tokyo, NY-LA, London-Singapore, Singapore-Sydney, Sydney-LA • Customers: Senior executives, wealthy individuals & and their families • Market positioning • Corporate image • High quality • High service

8. Mission- Marketing mix - • Product (transport from A to B) • Transportation + Experience • Deliverable luxurious goods* • Price • Flat price • All in one* • Place • Designated flights • Airport Lounges • Promotion • Private marketing • Public advertise (Fill-ins) Transportation Food & Drinks VIP Lounges & Sleeping Seats Experience & Entertainment TangibleIntangible

9. Mission • Advertising Objective • Specific communication task • Create consumer awareness of our super luxurious airline • Achievement level • 70 million people • 70,000 passengers needed per month • Conversion rate: 1/1000 • Specific audience • Potential customers from major cities worldwide • Specific time period • 3 months (Sept till Dec)

10. Mission Hierarchy of effects model Advertising objectives Awareness  Knowledge Informative advertising 1st stage (3 months) Persuasive advertising 2nd stage (3 months) Liking  preference  conviction  purchase Repeat purchase Reminder advertising (NA yet) Convince made right choice Reinforcement advertising (NA)

11. Mission-British Airways Case- • Target Market • Customers: Leisure travelers but mainly business customers • Destination: “World’s favorite airline” • Positioning • Innovative and world class service for business customers • Extensive, affordable airline for leisure travelers • Serious company • Service • Segmented by class • Broad range of services from Executive Club Lounge services to special support for passengers with disabilities

12. Money • Brand equity • The 5 considered factors • Stage in product life cycle • New – We need large advertising budget • Market share & consumer base • None of them -We need large advertising budget • Competition & clutter • Strong- We need large advertising budget • Advertising frequency • Medium - Our unique product will capture consumer’s mind • Product substitutability • High - We need large advertising budget

13. Money • Population to reach Europe (B, CH, D, E, F, GB, I, NL, Monaco) 131 M Japan, Taiwan & Australia 70 M North America (US, Canada) 150 M Total 351 M • Our Campaign • Average price of a 30-second prime time ad in the US networks: $125,000 • Same rate in Japan, lower rates in the other countries • 7 weeks over a 3 month period, 49 days • 5 prime time ads 7 days a week, 3 off peak 5 days a week • 1 Ad per hour over 24 hours on CNN International Advertising Budget: €120 M

14. Message-Generation- Direct product reward Rational Sensory Social Ego satisfaction Customer visualization of reward 2B Airlines Results of use Product in use Easy Jet Ryan Air BA Air France Singapore Incidental to use Joan Maloney Framework

15. Message-Evaluation and selection- • Core selling proposition (Dik Twedt) • Exclusiveness, high desirability • Positioning statement • Key message : • “Luxurious experience” • “Traveling has 2Be fun” • Target • Affluent people, rich partners • Communication objective • To know (Generate brand awareness) • Unique experience • Support for promise • Testimonial • Emphasis on on-board services e.g. hair dressers and masseuse • Media selection • TV • Upscale magazines

16. Message-Execution- Execution • Emotional positioning • Importance • Picture, headline

17. Message-Execution- Air France “Make the sky the best place on the earth”

18. Media • Media selection • 70 M of influenced people -> TV channels (CNN, BBC & nationals) all over the world • Image of luxury -> Business magazines (WSJ, FT, BW), Specialized web sites • Target of rich ladies -> Specialized newspapers • Reach, frequency, and impact • Reach : 50% of the population of urban areas • Frequency • 8 times per day (3 times in daytime and 5 times for prime time) for national broadcasting • For CNN, once every hour 24 hours a day • Impact • 20% of the people reached remember 2Be

19. Media • Media timing • Macro schedule • Create awareness of new airline so, not seasonal • Delay factor • September start advertisement campaign • December 15 (before Christmas) for first flight • Micro schedule • Intermittent / rising • Geographic allocation (language, national airport/airline) • World wide : CNN world wide • National : USA, UK, Japan, Singapore, Australia • Surrounding countries : France, Germany, Taiwan

20. Media-Competitors- • Media used by companies during the last 50 years for advertising are • Posters • National event • TV add / Co-branding • For a larger scale (worldwide), companies partner in business groups (SkyTeam, etc…) that manage the image of the whole group at an international level (Newspaper / TV) 1930 1952

21. Measurement Advertising Awareness Advertising Sales Features Competitors Other Y = α + β * X + ε Y = Effect on awareness or sales X = Advertising

22. Measurement • Communication effect • Pre-testing • In the target cities (Tokyo, Singapore, London, New York, Los Angeles, Sydney) • Consumer feedback • Portfolio test • Laboratory test (measure heart beat, sweating, opening of pupils) • Post-testing • After 3 months campaign • Test how much brand awareness increased

23. British Airways Shuttle case-Mission- • Remain market leader in domestic air-travel • Withdrawal of backup & turn up and take off service • Goal: raise awareness of high travel frequency and convenient time schedule of British Airways Shuttle as domestic carrier • Target audience: Male domestic air-travelers between 35-44 years

24. British Airways Shuttle case-Money & Message- • Money: Budget 1M pounds used intense media strategy & standout from competition in cluttered market • Message: High frequency & convenient schedule • Rational positioning • Wake-up & finish the meeting theme • Humorous

25. British Airways Shuttle case-Media- • Media: • Media type: Billboard and radio • Intensive in peak hours: 6-9 AM 12 spots & 5-7 PM 8 spots • Well branded commercial radio stations • London, Southeast, Glasgow, Edinburgh: Outdoor and radio: 21 April-4 May • Manchester: Outdoor: 21 April-4 May Radio 5 May – 16 May

26. British Airways Shuttle case-Measurement- • Measurement • Pre-test & post-test: awareness increased 12% • Staggered approach worked better than combined, Manchester awareness increased 18%

27. Now we are ready to take off!!!