(Client’s Full Name)
MBA 6203 Final Project
Executive Summary
This report examines the importance of having a brand which stands out in the airline industry. Hence, the concept and philosophy behind the brand name, logo, slogan and brand identity of the Business Class Only Airline, LuxAirways based on the Kapferer’s Brand Identity Prism.
Furthermore, this report aims to make the best suggestions for launching LuxAirways nationally, regionally, and globally in respect of promotion, price, product and place. These suggestions would be made in light of the interpretation of the Travel Industry Forecast Review. It is the purpose of this report to show any other additional implications that the Travel Industry Forecast Review will have on your proposed business.
In addition, this report will make recommendations of innovative and new high-end services which are not currently utilized by any other airline in the industry. It is intended that such recommendations will add value to the business as well as its customers. The process used to develop and assess these high-end services will be illustrated and explained.
The Brand Name, Logo, Slogan and Brand Identity for the Proposed Business Class Only Airline Based on the Kapferer’s Brand Identity Prism
Excellent branding is especially important in a very competitive industry such as the airline industry. Additionally, excellent branding ensures that an airline stands out for the discerning traveler who is accustomed to the best and ultimate in luxury. The competitive nature of the airline industry is implied by the report, DesignAir’s Top 10 Cool Airline Brands 2014 which was done by DesignAir’s Jonny Clark. The report reveals several new entries which have entered the list. These include: JetBlue, Fiji Airways, Emirates, Quatar, Qantus and British Airways (Clark pars. 3, 5, 6, 8, 9, 10). Consequently, these airlines have displaced several airlines from the previous lists. For example, Southwest, Kulula, Cathay Pacific and Porter, which were all on the DesignAir’s Top 10 Cool Airline Brands 2012, did not make the list for 2014 (Clark pars. 2, 8, 9, 10).
Therefore, it is imperative that the branding for the proposed Business Class Only (BCO) Airline target the VIP traveler who has impeccable taste and has a discerning eye for the sophisticated and the refined. The brand name which was chosen for the BCO Airline is LuxAirways (see fig. 1). The tagline for this brand is the following: “Discover the Height of Luxury.” The use of this brand name and tagline are justified because the aim of the proposed BCO Airline is to specifically target a VIP clientele who expect to receive the very best that a luxurious airline can offer them. The logo, which is illustrated in figure 1, has the colors red and blue. The psychological meanings of the color red in business are energy, passion, action, strength, excitement, attention-getting, stimulating, energizing, driven and determined (Scott-Kemmis par. 9). However, it should be noted that the color red can have negative psychological meanings such as aggression, anger, domineering, over-bearing, resentful, ruthless and intolerant (Scott-Kemmis par.10). Hence, a balancing color should be used along with the color red. A good balancing color would be blue which has the psychological meanings of loyalty, trust, integrity, tactful, caring, concerned, calm and peacefulness (Scott-Kemmis par. 9). Interestingly, light blue is a suitable color for businesses in the travel industry, specifically airlines, since this color is associated with the color in the sky or water (Scott-Kemmis par.14).
Figure 1. Logo and Tagline of LuxAirways
Furthermore, the capital ‘L’ has a circle surrounding it since this shape is used to symbolize universality, the earth, or a globe. Since an airline refers to global travel, this shape is suitable to be used in the design of the logo. Additionally, this circle accentuates the initial letter, ‘l’, in luxury so that the prospective customer can be reminded of the word luxury, thereby, creating a mental association.
The brand identity of LuxAirways is based on the Kapferer’s Brand Identity Prism. The physique represented by the logo, which is described above. The aircraft interiors and the airport lounges have a sleek, modern, and cosmopolitan. The personality is elegant, sophisticated, cosmopolitan and technologically-savvy. The relationship the airline should have with its clientele should be friendly, personal, and accommodating. The culture of LuxAirways is global, has the ability to adapt to local markets, entertainment- and sports-based and has the ability to provide excellent and intuitive service for the most discerning clientele. The personal reflection of the customer who uses the services of LuxAirways is a successful business traveler, an insider and adventurous. The self image of the customer who uses the services of LuxAirways states the following: “When I travel on this airline, my expectations are exceeded and I get access to exclusive events and experiences through their concierge services” (see fig. 2 below)
Figure 2. Brand Identity of LuxAirways
The National, Regional, and Global Launch of LuxAirways Based on the 4 P’s of Marketing (Promotion, Product, Price and Place)
According to the infographic, What makes great airline marketing, located on the website of airlinetrends.com, there are five major categories which must be considered by an airline which desires to have a successful marketing strategy: experiential, social, digital or mobile, traditional or themed campaigns (Kollau pars. 4-7). The most popular type of campaign used to launch a new airline, for instance, is the use of a social campaign. Raymond Kollau explains that this type of campaign is typically used by airlines because it is “[p]erfect for engaging today’s Connected Travellers” (par. 8). In addition, a “large variety of campaigns can be run” using this method of marketing. A social campaign will be the perfect strategy to be used for launching LuxAirways internationally. A good social platform to use to promote the launching of LuxAirways would be LinkedIn. The product which would be promoted is a discounted ticket for the inaugural flight of LuxAirways. LuxAirways could create a LinkedIn group and create a contest to promote this discounted ticket for a potential customer. The initial price of the ticket should be discounted so as to bring awareness and create a ‘buzz’ regarding the services offered by LuxAirways. LinkedIn would be the ideal social platform to promote LuxAirways’ launch and inaugural flight since it is most likely that the customer that this airline would like to attract (as described in its brand identity above) has a social presence on LinkedIn. Another option would be to invite influential bloggers in the luxury travel industry who would be able to create a buzz about the airline on various blogs. These blogs could include: SimpliFlying, A Luxury Travel Blog, Mrs. O Around the World, The Cultureur, The Travel Hack and Just Luxe. Lufthansa used a similar marketing strategy where they invited aviation bloggers to board their first A380 Flight which later generated “tremendous awareness via social media” (“Top 10 Route Launches,” simplyflying.com, par. 2).
A good option for the national and regional launch of LuxAirways would be to have an extravagant launch party at Mandarin Oriental Hong Kong. The Mandarin Oriental is known for its luxurious service and accommodations. It would be a suitable for LuxAirways to partner with the Mandarin Oriental in this manner since they would both cater to the same client, who is a discerning, VIP traveler, and was described in LuxAirways’ brand identity. Furthermore, the location Hong Kong is chosen because based on the recent market report entitled, Travel Industry Forecast Review, Chinese travelers spend the most amount of money on traveling (Euromonitor International 4, 31). Additionally, the inaugural flight could be from Hong Kong to Dubai. This is because according to the findings presented in the Travel Industry Forecast Review, arrivals from China are primarily “business visitors, with strengthening economic ties between the two countries” (Euromonitor International 47). Moreover, it should be noted that Chinese travelers are more willing to spend on luxurious goods and services when compared to other travelers (Euromonitor International 31).
The above global, national, and regional launches fulfill the four P’s of marketing. The four P’s are product, place, price, and promotion. The product being offered by LuxAirways is a discounted ticket of the airline’s inaugural flight. The place for the launches is on the internet and Hong Kong, China. The price of the ticket is discounted so as to generate interest in the promotion of the launch of the airline. The promotion is via the social media platform of LinkedIn and top luxury travel blogs on the web.
The Implications of Recent Findings of Euromonitor International’s Travel Industry Forecast Review for LuxAirways
The recent findings of Euromonitor International’s Travel Industry Forecast Review have several implications for the proposed Business Class Only airline, LuxAirways. This report will not only determine the airport’s planned launches as indicated previously, but it will also determine the markets which the airline will focus on for its initial flight destinations. According to the report, the Middle East airlines (especially in the United Arab Emirates) appear to be doing quite well (Euromonitor International 48). The Travel Industry Forecast Review indicates that the three largest airlines in that region (which are Qatar Airlines, Etihad, and Emirates) “continue to expand with a growing number of flight destinations globally” (Euromonitor International 48). The report also noted that even smaller airlines are experiencing growth in that part of the world (Euromonitor International 48). Additionally, the report notes that consumer confidence within the United Arab Emirates “continue to enjoy the highest incomes” in the Middle East region, and the consumers’ spending in that region reflects that observation made by the report (Euromonitor International 50). Furthermore, the consumer’s in that region are very technologically savvy since they continuously demand “higher quality, cutting-edge versions of audio-visual consumer electronics” (Euromonitor International 50). Therefore, it can be suggested that premium airport lounges be opened in Dubai, Qatar, and Abu Dhabi, and the headquarters be located in one of these destinations. The aircraft of the airline should accommodate Wi-Fi and mobile connectivity, the seats should have USB ports, touchscreens and other cutting-edge and innovative features present in the most advanced in-flight entertainment (IFE) systems. The airline should ensure that the relevant network systems are implemented to facilitate mobile bookings.
Another region which would also benefit from the implementation of technologies to facilitate mobile bookings is Russia. The report indicates that the use of smart phones is expected to increase in Russia by 2017 (Euromonitor International 41). The Travel Industry Forecast Review reports that Russian consumers are already spending significantly on smart phones (Euromonitor International 41). The report noted that Russia’s mobile phone penetration recently increase to 98 percent of households (Euromonitor International 40). Moreover, the Russian consumer considers travel spending as a top priority as at October 2013, according to the report (Euromonitor International 37). Therefore, LuxAirways should facilitate flights travelling to and from Moscow.
In addition, LuxAirways should facilitate flights from Hong Kong since, as mentioned previously, the Chinese traveler is willing to spend a significant amount of money on travelling, as indicated by the report.
Other flight destinations should also include Johannesburg, South Africa and Lagos, Nigeria. This is because the Travel Industry Forecast Review indicates that in South Africa, “business guests are consistent year round” (Euromonitor International 44). Moreover, the recent market report reveals that other Sub-Saharan countries in Africa, such as Nigeria, are frequented by business travelers (Euromonitor International 44). The report indicated further that Nigeria is the “most valuable hotel market” in Africa, with “sales of almost US $1.3 billion in 2013” (Euromonitor International 44).
Recommendations of New High-End Services for the LuxAirways Customer that are not currently Offered by Any Other Airlines
The following recommendations of new high-end services for the LuxAirways airline, which caters to the VIP traveler, who is accustomed to the best in luxurious travel services, was developed and assessed with the help of new airport trends in cabin design and service presented by the online magazines, Airline Trends and The Design Air.
Based on the assessment of current airline and airport trends, it was noticed that there is currently no commercial airline on the market which has an on-board spa offering a menu of spa services. The Emirates Airlines offer an on board shower spa on their A380 aircraft, but there is no spa service in-flight or in most of their departure lounges at the airport. Consequently, LuxAirways will have a competitive edge in the airline industry by having an in-flight spa offering a menu of spa services.
Currently, in the industry there are airlines which offer a concierge service, such as Etihad, which offers the option of not only having an in-flight chef but also a butler trained by the Savoy Butler Academy, who acts as a concierge and maître d’ hotel as well as a butler, as a part of Etihad’s The Residence travel experience (Clark par. 7). Additionally, Four Seasons has a new airline where the customer is given the option of enjoying an “‘air cruise’” where he is travelled to various Four Season Hotel locations all over the world (Kollau pars. 4&5). In addition to an on board chef, the Four Season private jet also accommodates a concierge who helps the client to “plan spa treatments and tee times” at golf courses at the various Four Seasons Hotel locations (Kollau par. 7). However, there is still yet to be seen an airline which offers luxury concierge services such as those being offered by concierge companies such as Bluefish Concierge, Black Door Experiences, and Pure Entertainment Group. These concierges offer bespoke travel experiences, such as chartering a submarine to explore the sunken Titanic ship, having laser dog fights in fighter jet planes, going backstage to enjoy a concert with U2 and VIP admissions to awards and fashion shows and their after parties, for instance. In order to have a competitive advantage in the industry, LuxAirways could partner with one or more of the above mentioned concierges to help to tailor the client’s travel experiences according to her preferences. Agents of these concierges could be located at the departure lounge and be on-board as well. The concierge should have a separate function from the butler who will also be on-board the LuxAirways aircraft, along with an in-flight chef and stewardesses.
The Residence travel experience being offered by Etihad Airways is currently the most luxurious experience that one can have on a commercial aircraft (Clark par. 1). This airline offers the VIP traveler the option of having multiple rooms while on board. The Residence has the following rooms: living room, double bedroom, and an en-suite shower room (Clark par. 1). LuxAirways can have a competitive edge by offering five rooms on-board which could include: a master bedroom (with full-length bed with memory foam mattress, bedside unit, vanity and full- length wardrobe); a guest room (with full length bed, vanity, bedside unit and wardrobe); a meeting/ conference room (with video conferencing and teleconferencing facilities, mobile and Wi-Fi connectivity and a business conference table); and an en-suite shower room (with washbasin, toilet, and full-length shower).
The above services will add value to the business and the customers by not only allowing LuxAirways to gain a competitive edge in the airline industry, but they will also meet and exceed the expectations of the discerning VIP traveler.
Works Cited
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