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Marketing and Brand StrategyPower Group

OUTLINE● British Airways Background● Market Trend● Competitors Analysis● SWOT Matrix● Ansoff Matrix● Keller’s CBBE Model● IMC Proposal

BRITISH AIRWAYS● UK largest airline● Based in Heathrow (Terminal 5)● British heritage ● Trusted brand

Range of services

- First/Business/Economy Class - Hotel and flight combination- Car hire

Source: British Airways, 2015; Smithers, 2015

PEST: MARKET TRENDPolitical

Fear of terrorism (Massey, 2015)

⇒ Tighter Security⇒ Arising cost (adapting to procedures)

Economical Drop in oil price (Carlson, 2015)Reduce operational expense

⇒ Budget travel ⇒ Rise in interest rate

Social

25-39: 2% increase (ONS, 2015)Holiday/Leisure travellers (Mintel, 2015)

⇒ Leisure/Package offers ⇒ Competitive pricing

Technological

73% of mobile phone and digital users (Mintel, 2015)

⇒ Use of various online media ⇒ Upgrade service

COMPETITORS ANALYSIS HIGHLIGHT

Strength Weakness

Positive Brand Image Lack of engaging Marcoms

Brand Extension Poor in-flight experience

Lower cost / High coverage Poor brand image

Innovative Lack of brand awareness

In-flight Wi-Fi Using Cheap workforce

COMPETITORS ANALYSIS HIGHLIGHTTarget Audience Marcoms

25-39 Travel Package

18-24 Sky News Snow Report

25-39 Low Fares

25-44ITV Wales Weather

Social Media

25-38 New Years Deals

Source: YouGov, 2015

POSITIONING MAP

FINANCIAL ANALYSIS - REVENUE

Source: Mintel (2015)

PASSENGER GROWTH RATE

2010-2014 2015-2020

3% 18%

FINANCIAL ANALYSIS - PROFIT

Ryanair drop fares to encourage customers

BA made loss due to strike, high cost

BA sponsored London Olympics

Norwegian’s expansion

SWOT MATRIX

- Strong brand image, large fleet ⇒ penetrate budget travel

- Cooperation with hospitality service ⇒ meet demand of leisure travellers

- Higher price for much more premium service ⇒ money-value

- Online platform ⇒ create

communication with more interactive, feelings and positive image

- Nation-image, high budget invest in safety ⇒ gain trust, reinforce decision

- Heritage image, reputation ⇒ gain preference over budget airlines

- Perceived as premium brand ⇒ lose segment of budget airline

- Conservative and slow respond to market

ANSOFF MATRIX Current BA position

● Premium airline

Product Development

● In-flight Wi-Fi service● Improve passenger flight

experience

Market Development

● Expand Budget airline market● Growth in budget travellers*● Increased travellers within EU*

Source: Statista (2015)

KELLER’S CBBE MODEL

Source: Keller et al (2015)

CURRENT ADVERTISEMENT

Source: Creative Club (2014)

INTEGRATED MARKETING COMMUNICATIONS PROPOSAL

Option 1

Medium budget

Shorter time frame

High ROI

SMARTER WAY FOR TRAVEL

● Benefits: ○ Great Value○ Uncompromised Quality○ Easy Access To Airports○ Emphasise Stress-free experience

ReferencesBritish Airways. (2015). History and heritage. British Airways. Available from http://www.britishairways.com/en-gb/information/about-ba/history-and-heritage [Accessed 15 December 2015].

Carlson, D. (2015). Airlines – but not passengers see benefits as crude oil as prices drop. The Guardian. Available from http://www.theguardian.com/business/2015/mar/15/airlines-passengers-crude-oil-prices-drop [Accessed 7 December 2015].

Creative Club. (2014). British Airways Advertisement. Creative Club. Available from https://www.creativeclub.co.uk/fs.aspx [Accessed 14 December 2015].

Keller, L, K. Aperia, T. and Georgson, M. (2012). Strategic Brand Management: A European Perspective. 2nd Edition. England: Pearson Education.

Mintel. (2015). The premium budget vs traveller –UK – February 2015. Mintel. Available from http://academic.mintel.com/display/715892/ [Accessed 6 December 2015].

Mintel. (2015). Digital trends – UK – March 2015. Available from http://academic.mintel.com/display/732273/?highlight#hit1 [Accessed 6 December 2015].

Massey, R. Simons, W, J. and Marsden, R. (2015). European aviation chiefs force British Airways to carry an extra person in the cockpit at all times – but experts fear it may make planes more vulnerable to terrorism. Daily Mail. Available from http://www.dailymail.co.uk/news/article-3014474/EasyJet-Virgin-Atlantic-making-planes-vulnerable-terror-attacks-knee-jerk-new-safety-measures-wake-Germanwings-tragedy-say-air-safety-experts.html [Accessed 7 December 2015].

ReferencesONS Population Size. (2015). C4.3 2014-based Numbers surviving at exact age. Available from http://www.ons.gov.uk/ons/datasets-and-tables/index.html?pageSize=50&sortBy=none&sortDirection=none&newquery=surviving&content-type=Reference+table&content-type=Dataset [Accessed 14 December 2015].

Smithers, R. (2015). British Airways Named UK’s Most Popular Brand. The Guardian. Available from http://www.theguardian.com/business/2015/mar/02/british-airways-named-uks-most-popular-brand [Accessed 5 December 2015].

Statista. (2013). Amid the Euro Crisis, Europeans turn to low-cost Airlines. Statista. Available from http://www.statista.com/chart/1571/amid-the-euro-crisis-europeans-turn-to-low-cost-airlines/ [Accessed 13 December 2015].

YouGov. (2015). YouGov Brand Profiles. Available from https://yougov.co.uk/profileslite#/ [Accessed 7 December 2015].