product augmentation for lufthansa
TRANSCRIPT
Marketing Products & Brands
TEAM G: Silvana, Cagan, Vincent, Maryam, Clara, Joey
British people spend approximately 30 hours preparing for a holiday, spread over a five-week period (more than double the length of their trip)
Agenda
1. Problem2. Recommended Augmentation3. Why it makes sense in the
market?4. Why consumer would be
interested?5. Future Trends6. Competitors7. Competitive Advantage8. Communication/Implementation
Plan9. Conclusion – Value Proposition
ProblemSignificant decrease in the use of travel agencies.
“Do-it-yourself” booking.
60% of leisure travelers and 41% of business travelers make their own travel arrangements, generally via Internet.
Study shows that the most stressful part of the trip is the planning stage.
People are looking for more productive ways to spend their time in-flight. (wi-fi, movies, sleeping).
What if we combine these two?
Lufthansa
Onboard Travel AdvisorGet ready for your trip, Get most of it
How does it work?
Implemented within the in-flight entertainment screen.Log-in with your e-mail.
Choose your interests.Art, History, Sports, Music, Local
Events, Nightlife, Food, Local Culture.
Get information/videos about your interests from local experts (Top 10 Restaurants, Bars, Sightseeing)Upcoming events (Concerts, Cultural Events, Exhibitions)
Save it or Send it to your mail, so you can reach the information even after you leave the plane.
“Now we are no longer talking so much about what Lufthansa does or what we do for our
passengers. Rather the focus is on the people we are doing it for.” --Reinhold Huber, SVP of Product
and Marketing
“BLESIURE” TRAVELLERS
56% of 18-35 age group in 2015 94% of this age group in 5 years
Top activities: Sightseeing
Dining Arts and Culture
Sites like TripAdvisor are losing credibility. People are looking for expert/local opinions..
Why it makes sense in the market?
• Customer will be able to use their time while they are onboard to explore their personalized trip options.
• Some passengers are interested in the locals and cultural experiences and need trusted advisor to assist them in taking their decisions.
• They want to use their time in-flight more productively.
• It is better option than using inflight magazine: hygiene, interactive, eco friendly, customized info.
Why would our passengers be interested?
• In-Flight Wi-Fi
• Personalization
• D-I-Y (Do It Yourself) Attitude and Control
• Importance of Experiences
Future Trends
KLM in partnership with YELP, Trip Advisor, Airbnb is sourcing information for the passengers and for their needs by dedicated sections in the travel guide website.
However, none of our competitors (Air France, KLM, Air Berlin, Easy Jet) have it personalized or in-flight.
Competitors
First mover advantage
Better understand the consumer
Data is Money
Better targeted promotion
Increase in future sales of repeat customers
Brand Association with Travel and New Experiences
Experiences
Increased Brand Perception and Word of Mouth
Competitive Advantage
Use existing database to send them an e-mail,newsletter promoting the new service.
Online Channels
Bilboards in airports.
Agreements with travel bloggers for content and promotion.
Communication/Implementation Plan
To international business fliers with little or no time to plan their trip in advance, and leisure fliers that seeks cultural & local experiences; Lufthansa on-board travel advisor is a tool that provides the most interactive and nonstop personalized travel planning assistance, by allowing passengers to enrich their out-of-flight experience in their destination
Value Proposition