British Airways - Lecture notes 6 PDF

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British Airways The main problem was that British Airways (BA) had inconsistent advertisement across different countries, and that the strategies focused mainly on its differentiation and superiority of product rather than to improve their image. It also related its boundary based restrictions to major disadvantages of BA’s advertising agency, Foote, Cone & Belding (FCB). Saatchi and Saatchi (S&S) advertising agency developed a concept campaign to strengthen BA’s image and prestige, and not just emphasise on its specific products, services and price promotions. Many of the issues BA was facing was that the airline was rated poorly on friendliness, inflight service, value for money, and punctuality. Adding on to that, BA’s image varied from good in the US, neutral in Germany and weak in France and Hong Kong. The potential problem in the case is that BA is unsure on whether it is important to focus on funds diverted to tactical advertising in local markets or focus mainly on the concept campaign. To remedy the potential problem, BA should promote a consistency in advertising schemes which will emphasise the aspects of BA on a global scale. BA must also continue to focus on the concept campaign as it will potentially reduce expenditures and is essential for BA in the long-term effectiveness. The concept campaign will allow BA to increase positivity in brand image, as their five objectives can be met and maintained, thus maximise profits. To remedy the above issues, BA must create and build brand loyalty and customer relationships by improving their staff service and by avoiding delay and cancellation of flights.

In this case, BA relates to the theory of Segmentation and Targeting. Segment Marketing is when the business segments the market into groups, while focusing on some and forgetting the rest. What BA has done was focused on the markets of Business and Leisure within their concept campaign in 1983-84. Target Marketing is when a business targets some and forgets the rest, and strategizes on either undifferentiated, differentiated or concentrated marketing. In this case, BA uses differentiated because their Business campaign focuses on advertising their product features and businessmen that want direct flights locally to/from UK. Whilst in their Leisure campaign it focuses on good value for money, bundles of prices on airline, car rental, package tours, etc. BA had benefited from this use of theory because of their contradictory previous campaign emphasis on being the “world’s favourite airline.” Significantly, BA is responsible for the failure of their brand image, because they fell in love with the commercial that advertised to a mass marketing, which is a waste of resources (the 5 M’s). In relation to theory in advertising particularly the 5 M’s: 1. Mission – commercial advertising was informative, campaigns were persuasive. 2. Money – based on percentage-of-sales method. 3. Message – big idea of commercial established 5 objectives (pointing out BA being a worldwide great airline), whereas the business and leisure campaign had more of an effective message (customer benefits). 4. Media – available in exhibit 8, 11, and 14. 5. Measurement – E.g. leisure campaign emphasised spot tv, where late advertising deadline meant that fare changes could be quickly communicated to consumers.

Segmentation – type (financially – economy, business, first class)

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o Business – money is time – direct flight, flying locally from/to UK. o Leisure – positioning for leisure is BA is a value brand. More for less. Main customer – targeting businessmen putting adverts in business magazines Target customers that want direct flights – time is money Target customers that was to go local in the UK Leisure customers – customers that look for value

Segmentation and targeting Lost segments, unsure on what their segments are Mass marketing – waste of resources Segmentation strategy – is it working? As a business person you would only take BA if flying locally Offer prices and consumer value

Advertising – informative, persuasive, reminder. - Informative commercial advertising - Campaigns are persuasive 5 M’s

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Their commercial emphasised traditional British values Low exposure - only expected to reach 40% of the population BA concept commercial could only be advertised within cinemas Impact of culture - does not appeal to other cultures besides Western cultures "Contradictory - their concept campaign emphasis on "world's favourite airline" emphasises on country's with low market share – credibility The big idea of the commercial fine company, accessible – doesn’t o In theory BA is responsible for the failure of the brand image. Failed because they fell in love with the commercial. o Commercial established 5 different objectives, whilst pointing out a simple message of BA being a great airline. Business campaign and leisure campaign o Business one – focus on product features o Leisure one – bundles for the prices of ticket, airline, hotels....