SimpliFlying

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I was recently reading an article by Harvard Business School Professor John Quelch, who discussed eight refreshing ways of marketing in a recession. Inspired by that article, I decided to take a shot at coming up with ways in which airlines can market themselves to achieve a superior brand authority in a recession. Here are three of those ideas.

1. Build trust through empathy

In recessionary times, people need the comfort of knowing that they’re not alone in their troubles. While the rest of the world changes, the brand which remains consistent to the promise as much as possible would win the hearts of many.

Airlines should take small steps to build trust. One suggestion by Patrick Hanlon is to empathize. People don’t want to be reminded of their problems even when they fly - it’s an oasis of privacy, where they are disconnected from the world. For starters, the in-flight crew can smile more and be more patient with passengers. It’s the small things that build trust. And trust built in tough times is bound to turn into true loyalty when good times return.

2. Offer better value - more discounts, less promotions

It’s a known fact that in a recession, almost 50% of consumers look to switch to a brand that provides them with more value, or at least more perceived value. Greater value can be demonstrated to the consumer if he pays the same or less price for a better quality product. Promotions like extended credit or mail-in rebates don’t tend to work as well, since the “barrier to purchase” is not lowered. Hence, instead of nickle-and-diming customer, airlines should look to improve the quality of service. For starters, now that oil prices have nosedived, some of the fuel-surcharges imposed on the customers should be lowered or removed. The increased price elasticity will likely result in greater overall demand for services.

3. Connect – go online to interact with flyers

In this recession, all companies have an inexpensive market research tool at their disposal - Web 2.0. Airlines should actively monitor feedback sites like suggestionbox.com, fluther.com and epinions.com to see what the buzz is about their airline (or even competition) and then adapt quickly to customer tastes. These are also good forums to showcase how seriously feedback is taken - another good way to build trust.

Moreover, airlines should think of innovative ways of becoming part of online communities that their flyers frequent - such as Second Life, Facebook and Twitter. JetBlue already does a great job with this.

A recession is a good time to build long-term loyalty, and innovative airlines can take advantage of these unique circumstances to gain significant market share from their competitors.

Do you know of examples of airlines that are marketing themselves well in this recession? Would Virgin Atlantic emerge stronger thanks to their “Airphoria” campaign? Would JetBlue create greater loyalty by following passengers on Twitter? What can airlines from other industries in this regard? Let’s hear your thoughts in the comments…

Selling air tickets by auction is nothing new. Airlines have done it in the past for one-off charitable causes, like Singapore Airlines’ first A380 flight. There are even sites dedicated to selling air tickets by auction, like Skyauction.com and Priceline.com.

But JetBlue Airways has once again demonstrated that it’s a leader when it comes to using the latest technologies to bring in more business. This time, they’ve began auctioning more than 300 round-trip flights and six vacation packages on eBay, and all of the offerings carry a starting price tag of five or ten cents plus taxes and fees. The auction will continue through Sept. 14.

There has been ample debate on leading airline forums on whether this move will work or not. The debates can go on forever, but here are three good reasons why this is a genius move by JetBlue and other smart airlines will follow in its footsteps.

1. There is no such thing as bad PR

JetBlue is good at creating buzz and has now tapped on probably one of the cheapest ways of methods of marketing - technology. Since the website’s launch, there has been many reports supporting or criticizing the move. Ultimately, it’s all leading to move potential customers landing on the JetBlue eBay store. As Guy Kawasaki puts it, there is no such thing as bad PR (an Inquirer report that rated his Truemors site as the worst on the net resulted in over 240,000 hits in a single day!).

2. More channels = more customers = more revenues

Leading brand management authority Sergio Zyman’s definition of marketing success is to “sell more stuff, to more people, more often, for more money, more efficiently.” By launching a new selling channel via eBay, JetBlue will be reaching out to new types of potential customers who are probably younger and technologically savvy. Moreover, since eBay is a self-regulated system, the efficiency of selling tickets is bound to improve as well.

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Airlines are finding innovative ways these days to engage the customer in the online world. Singapore Airlines organized an online design competition for their A380 launch flights to London. Malaysia Airlines keeps an active blog written by a number of their employees. JetBlue Airways follows its customers on Twitter! Now, the oldest big daddy of budget airlines, Southwest, has capitalized on its own popular blog to launch a blogging competition. The winner gets to blog on the official Southwest blog alongside Christi Day, its current author. What a great way to engage the customer.

You submit, you vote, you win!

Till the end of August, customers can submit a one-minute audition video on the official website and fellow customers will be able to view all video submissions and vote for their favorites. The top three ranked submitters will be invited to Las Vegas at the BlogWorld Expo in September and be given secret video assignments to complete. These will then be uploaded on the website as well, and customers will vote to choose a winner. How democratic!

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It is always good to learn from the best - and when you think of the most memorable brands in the world, Starbucks ranks right at the top. Like Ritz-Carlton, Starbucks can offer key lessons in branding to airlines, many of which often don’t cost a lot to implement and can create great leverage for the brand.

What does the brand stand for?

In his book, A New Brand World, Scott Bedbury - the former Chief Marketing Officer of Starbucks - details how he personally led the creation of the formidable Starbucks brand. This is how he explains the Starbucks core identity.

“The Starbucks brand’s core identity is less about engineering a great cup of coffee than about providing a great coffee experience….the Starbucks brand is about what Abraham Maslow might have called the coffee “gestalt” - the atmospherics.”

Similarly, airlines need to understand that they’re not in the business of just transporting people point A to point B. Even freight companies like Fedex and UPS talk about principles like on-time delivery, rather than transportation. The first thing airlines need to realize is they will only survive in the long term if they deliver a decent pleasant flying experience - after all, passengers can be on-board the plane anywhere from one hour to twenty two hours (I’ve been on one!). As it is, going through security and immigration before getting on the plane is extremely stressful. They need to feel cared for and enjoy the in-flight experience.

Airlines like JetBlue in the US do it well, with their on-board amenities and convey the message across well too, with their “Flying - That’s why we created Jetting” campaign. Just like Starbucks, it talks about delivering an experience, and not so much the basics of transportation. Singapore Airlines talks about bringing back the “romance of flying” - which is indeed becoming a novelty these days. Simply put, these airlines know what their core brand identity is, and work to deliver an experience that is consistent with it.

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The JetBlue Airways in-air communications division, LiveTV, purchased the Airfone network from Verizon in early June 2008. The purchase includes 100 ground to air transmission stations as well as any remaining corporate and government customers. More importantly, LiveTV plans to use the network for voice, email and other online services on board planes, starting with their own aircraft. This has been an exciting journey, ever since JetBlue acquired LiveTV from Thales earlier in the decade.

The airplane is an island no more

With LiveTV in-seat video, every passenger on the aircraft gets a personal TV screen with up to 36 channels of live satellite programming, a GPS map channel and four additional channels of stored content. In addition to this, LiveTV allows people to listen to XM Satellite radio, and now with the acquisition of AirFone, connect with those on the ground using their communication devices too. Having built a strong and popular product, JetBlue has now started to encash on LiveTV.

Time to set the cash registers ringing

The LiveTV product provides authentic value-added services to JetBlue’s customers. The keyword here is authentic. Unlike a number of other airlines who seem to be charging for basics like a cup of water in order to make money, LiveTV actually charges for a real value added service. The best part is that many of the channels and services on LiveTV are free, and customers can pay more for what they really want - a very sound business model.

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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.

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