Luxurious experienceLuxurious experienceon board?on board?

2 Be Airlines2 Be Airlines

Advertising strategyAdvertising strategy

Presented by the management teamPresented by the management team

Management TeamManagement Team

CEO : CEO : Simone HujisSimone HujisCFO : CFO : Piercarlo OddonePiercarlo OddoneCIO : CIO : Joan MoreauJoan MoreauVP Communication : VP Communication : Eugene KolesnikovEugene KolesnikovVP International operations : VP International operations : Suraj BasnetSuraj BasnetVP Sales and marketing : VP Sales and marketing : Kentaro KodakaKentaro Kodaka

Advertising Advertising - Definition -- Definition -

PPaid and non-personal and identified sponsoraid and non-personal and identified sponsor

Distinguish advertising from sales promotion, PR, Distinguish advertising from sales promotion, PR, personal selling, and direct marketingpersonal selling, and direct marketing

NNot frequent flyer program, sponsorship, company ot frequent flyer program, sponsorship, company magazine, mailingsmagazine, mailings

IIncludes brochures, posters, billboards, audiovisuals, ncludes brochures, posters, billboards, audiovisuals, and reprint of adsand reprint of ads

UUsed to direct a message to a target public and to build sed to direct a message to a target public and to build brand preferencebrand preference

Start up of 2 BeStart up of 2 Be

Luxury airline: Not just transportation but Luxury airline: Not just transportation but extra services like massage, extra services like massage, fashionfashion 　　 adadvicevice, e-shopping, e-shopping, tailor, sauna, hair dresse, tailor, sauna, hair dresser r etc.etc.

Only flying on selected destinations;Only flying on selected destinations; Singapore-LondonSingapore-London Tokyo-LondonTokyo-London London – New YorkLondon – New York New York – Los AngelesNew York – Los Angeles Los Angeles – SydneyLos Angeles – Sydney Sydney - SingaporeSydney - Singapore

AgendaAgenda

MissionMission MoneyMoney

MessageMessage

MediaMedia

MeasurementMeasurement

MissionMission

Target market:Target market:Air travelers between following destinationsAir travelers between following destinations

London-NY, London-Tokyo, NY-LA, London-London-NY, London-Tokyo, NY-LA, London-Singapore, Singapore-Sydney, Sydney-LASingapore, Singapore-Sydney, Sydney-LA

Customers: Senior executives, wealthy Customers: Senior executives, wealthy individuals & and their familiesindividuals & and their families

Market positioningMarket positioningCorporate imageCorporate image

High qualityHigh qualityHigh service High service

MissionMission- Marketing mix -- Marketing mix -

Product (transport from A to B)Product (transport from A to B) Transportation + ExperienceTransportation + Experience Deliverable luxurious goods*Deliverable luxurious goods*

PricePrice Flat priceFlat price All in one*All in one*

Place Place Designated flightsDesignated flights Airport LoungesAirport Lounges

PromotionPromotion Private marketingPrivate marketing Public advertise (Fill-ins)Public advertise (Fill-ins)

Experience & EntertainmentExperience &

EntertainmentTransportationTransportation Food & DrinksFood & Drinks VIP Lounges & Sleeping SeatsVIP Lounges & Sleeping Seats

Tangible Intangible

MissionMission

Advertising Objective Advertising Objective Specific communication taskSpecific communication task

CCreate create consumer awareness of onsumer awareness of our our super luxurious airlinesuper luxurious airline

Achievement levelAchievement level 70 million70 million people people

70,000 passengers needed 70,000 passengers needed per monthper month Conversion rate: 1/1000Conversion rate: 1/1000

Specific audienceSpecific audience Potential customers from major cities worldwidePotential customers from major cities worldwide

Specific time periodSpecific time period 3 months 3 months (Sept till Dec)(Sept till Dec)

MissionMission

Hierarchy of effects model Hierarchy of effects model

Awareness Knowledge

Liking preference conviction purchase

Repeat purchase

Convince made right choiceReinforcement advertising

(NA)

Reminder advertising(NA yet)

Persuasive advertising2nd stage (3 months)

Informative advertising 1st stage (3 months)

Advertising objectivesAdvertising objectives

MissionMission--British AirwaysBritish Airways Case- 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

MoneyMoney Brand equity Brand equity The 5 considered factorsThe 5 considered factors

Stage in product life cycleStage in product life cycle New – We need large advertising budgeNew – We need large advertising budge

tt Market share & consumer baMarket share & consumer ba

sese None of them -None of them - We need large advertisinWe need large advertisin

g budgetg budget Competition & clutterCompetition & clutter

StrongStrong - We need large advertising budg- We need large advertising budgetet

Advertising frequencyAdvertising frequency Medium - Our unique product will capturMedium - Our unique product will captur

e consumer’s minde consumer’s mind Product substitutabilityProduct substitutability

High - We need large advertising budgetHigh - We need large advertising budget

MoneyMoney Population to reachPopulation to reach

Europe (B, CH, D, E, F, GB, I, NL, Monaco)Europe (B, CH, D, E, F, GB, I, NL, Monaco) 131 M131 MJapan, Taiwan & AustraliaJapan, Taiwan & Australia 70 M70 MNorth America (US, Canada)North America (US, Canada) 150 M150 MTotalTotal 351 M351 M

Our CampaignOur Campaign AAverage price of a 30-second prime time verage price of a 30-second prime time ad ad in the US in the US

networks: networks: $125,000$125,000 Same rate in Japan, lower rates in the other countriesSame rate in Japan, lower rates in the other countries

7 weeks over a 3 month period, 49 days7 weeks over a 3 month period, 49 days 5 prime time ads 7 days a week, 3 off peak 5 days a week5 prime time ads 7 days a week, 3 off peak 5 days a week 1 Ad per hour over 24 hours on CNN International 1 Ad per hour over 24 hours on CNN International

Advertising Budget: Advertising Budget: €120 M€120 M

MessageMessage-Generation--Generation-

Incidental to useIncidental to use

Product in useProduct in use

Results of useResults of use

Ego satisfactionEgo satisfactionSocialSocialSensorySensoryRationalRational

Customer visualizationCustomer visualizationof reward of reward

Direct product rewardDirect product reward

BAAir FranceSingapore

Easy JetRyan Air

2B Airlines

Joan Maloney Framework

MessageMessage-Evaluation and selection--Evaluation and selection-

Core selling proposition (Dik Twedt)Core selling proposition (Dik Twedt) Exclusiveness, high desirabilityExclusiveness, high desirability

Positioning statementPositioning statement Key message :Key message :

““Luxurious experience”Luxurious experience” ““Traveling has 2Be fun”Traveling has 2Be fun”

TargetTarget Affluent people, rich partnersAffluent people, rich partners

Communication objectiveCommunication objective To know (Generate brand awareness)To know (Generate brand awareness) Unique experienceUnique experience

Support for promiseSupport for promise TestimonialTestimonial Emphasis on on-board servicesEmphasis on on-board services

e.g. hair dressers and masseusee.g. hair dressers and masseuse Media selectionMedia selection

TVTV Upscale magazinesUpscale magazines

MessageMessage-Execution--Execution-

Execution Execution Emotional positioning Emotional positioning Importance Importance

Picture, headlinePicture, headline

MessageMessage-Execution--Execution-

Air France “Make the sky the best place on the earth”

MediaMedia

Media selectionMedia selection 70 M of influenced people -> TV channels (CNN, BBC & 70 M of influenced people -> TV channels (CNN, BBC &

nationals) all over the worldnationals) all over the world Image of luxury -> Business magazines (WSJ, FT, BW), Image of luxury -> Business magazines (WSJ, FT, BW),

Specialized web sitesSpecialized web sites Target of rich ladies -> Specialized newspapersTarget of rich ladies -> Specialized newspapers

Reach, frequency, and impactReach, frequency, and impact Reach : 50% of the population of urban areasReach : 50% of the population of urban areas FrequencyFrequency

8 times per day (3 times in daytime and 5 times for prime time) for 8 times per day (3 times in daytime and 5 times for prime time) for national broadcastingnational broadcasting

For CNN, once every hour 24 hours a dayFor CNN, once every hour 24 hours a day ImpactImpact

20% of the people reached remember 2Be20% of the people reached remember 2Be

MediaMedia

Media timingMedia timing Macro schedule Macro schedule

Create awareness of new airline so, not seasonalCreate awareness of new airline so, not seasonal Delay factorDelay factor

September start advertisement campaignSeptember start advertisement campaign December 15 (before Christmas) for first flight December 15 (before Christmas) for first flight

Micro scheduleMicro schedule Intermittent / risingIntermittent / rising

Geographic allocation (language, national airport/airline)Geographic allocation (language, national airport/airline) World wide : CNN world wideWorld wide : CNN world wide National : USA, UK, Japan, Singapore, AustraliaNational : USA, UK, Japan, Singapore, Australia Surrounding countries : France, Germany, TaiwanSurrounding countries : France, Germany, Taiwan

MediaMedia--Competitors-Competitors-

Media used by companies during the last 50 yeaMedia used by companies during the last 50 years for advertising arers for advertising are Posters Posters National eventNational event TV add / Co-brandingTV add / Co-branding

For a larger scale (worldwide), companies partnFor a larger scale (worldwide), companies partner in business groups (SkyTeam, etc…) that maer in business groups (SkyTeam, etc…) that manage the image of the whole group at an internatnage the image of the whole group at an international level (Newspaper / TV)ional level (Newspaper / TV)

MeasurementMeasurement

AdvertisingAdvertising

SalesSalesAdvertisingAdvertising

AwarAwareenessness

FeaturesFeatures

CompetitorsCompetitors

Y = α + β * X + εY = Effect on awareness or sales

X = Advertising

OtherOther

MeasurementMeasurement

Communication effectCommunication effectPre-testingPre-testing

In the target cities (Tokyo, Singapore, London, In the target cities (Tokyo, Singapore, London, New York, Los Angeles, Sydney)New York, Los Angeles, Sydney)

Consumer feedbackConsumer feedbackPortfolio test Portfolio test Laboratory test Laboratory test (measure heart beat, sweating, opening of pupils)(measure heart beat, sweating, opening of pupils)

Post-testingPost-testingAfter 3 months campaignAfter 3 months campaignTest how much brand awareness increased Test how much brand awareness increased

British Airways ShuttleBritish Airways Shuttle case case-Mission--Mission-

Remain market leader in domestic air-travel Remain market leader in domestic air-travel Withdrawal of backup & turn up and take off serviceWithdrawal of backup & turn up and take off service Goal: raise awareness of high travel Goal: raise awareness of high travel frequency and cofrequency and co

nvenient time schedule of nvenient time schedule of British Airways Shuttle as British Airways Shuttle as domestic carrierdomestic carrier

Target audience: Male domestic air-travelers between Target audience: Male domestic air-travelers between 35-44 years35-44 years

British Airways ShuttleBritish Airways Shuttle case case-Money & Message--Money & Message-

Money: Money:

Budget 1M pounds used Budget 1M pounds used intenseintense media media strategy & standout from competition in strategy & standout from competition in cluttered marketcluttered market

Message: Message:

High frequency & convenient scheduleHigh frequency & convenient schedule Rational positioningRational positioning Wake-up & finish the meeting theme Wake-up & finish the meeting theme HumorousHumorous

British Airways ShuttleBritish Airways Shuttle case case-Media--Media-

Media: Media: Media type: Media type: BillboardBillboard and radio and radio Intensive Intensive in peak hours: 6-9 AM 12 spots & 5-in peak hours: 6-9 AM 12 spots & 5-

7 PM 8 spots7 PM 8 spots Well branded commercial radio stationsWell branded commercial radio stations London, Southeast, Glasgow, Edinburgh: London, Southeast, Glasgow, Edinburgh:

Outdoor and radio: 21 April-4 May Outdoor and radio: 21 April-4 May Manchester: Manchester:

Outdoor: 21 April-4 May Outdoor: 21 April-4 May Radio 5 May – 16 MayRadio 5 May – 16 May

British Airways ShuttleBritish Airways Shuttle case case-Measurement--Measurement-

MeasurementMeasurement Pre-test & post-test: Pre-test & post-test:

awareness increased awareness increased 12%12%

Staggered approach Staggered approach worked better than worked better than combined, Manchester combined, Manchester awareness increased awareness increased 18%18%

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