by Shashank Nigam | August 11th, 2008
3 Comments
Image by John Creasey via Flickr
One of my aviation junkie buddies from Singapore recently posed an intriguing question:
For airlines, does the product come first or the brand? Essentially, if an airline is losing money (as is the case with many airlines these days), does the management concentrate on revitalizing the product so that it can turn a profit in the short term, or is it better to focus on brand building, for long term sustainability?
On the surface, the answer may appear simple enough – what’s the point in thinking about long term profits, if you’re not sure of surviving another month with the current product offerings and operations?
More importantly, concentrating on just the brand without a strong product is like putting lipstick on a pig. It just doesn’t work, regardless of the quality of the lipstick. Especially so in the highly volatile, and very competitive airline industry. This concept is visible in the latest United Airlines advertisements shown during the Olympics, which show animated figures supposedly (since there it is difficult to infer) enjoying the luxury of United’s new international first class. It’s so far removed from the reality that the nickle and dimed customers probably don’t feel any connection with it. Here’s a sample of that advertisement.
