British Airways Advertising - Assignment Example

British Airways Advertising Introduction The airline industry remains to be fast growing and highly competitive. The industry promotes economic growth, international investment, world trade and tourism therefore it is important to globalisation that takes place in the industry. Owing to these dynamics, the airline industry has become a requirement in the contemporary world and since the industry has numerous attractive business opportunities, there is increased competition and the industry has seen drastic changes over the years. One segment that that has undergone drastic changes is the European Airline Industry. The ‘open skies’ agreement with the US in 2007 and government deregulation in the 90s has seen the two major airline sections alter their strategies to stay in line with these changes (Data Monitor, 2014). There two major sections, one is the major global carriers for instance, British Airways and low budget carriers such as Ryanair. In addition to the 9/11 attack, the volatile economic effects and the rise in oil prices has seen a number of airlines go into liquidation. This essay analyses British Airway’s adverting strategy. British Airlines is the leading airline in the UK and its history can be dated back to 1919, however, the British Airways Group began its operations in 1974 (Data Monitor, 2014). During its years in operation the entity has moved from a government-owned entity to a private firm and has undergone a series of reorganisations making it the second largest airline in Europe and third globally. Currently, the airline has flights in over 300 destinations across the world and has over 33 million passengers (Data Monitor, 2014). It is clear that the airline has been adversely affected by the global economic crisis calling for the need to review their advertising strategy to reach a high number of consumers and manage its brand more effectively. Campaign Strategy British Airways launched a major campaign in eleven years with a £20m funding by using its employees to promote the desirable qualities of the airline a few months after solving the controversial cabin crew dispute (Sweeney, 2011). The TV advertisement was displayed on British Airways Facebook page and was first aired in the UK and US markets before it was aired to other global markets. The outdoor campaign and supporting press was included in seven advertisements stressing on the skill and experience of the British Airways staff. One print advertisement was done on a baby jacket to draw attention to the fact that the staff members were trained to deliver babies if need be the other advertisement featured the human heart to show that the airlines transport precious cargo including donor organs. The campaign came after the 18 month cabin crew dispute that experienced 22 days of cabin crew strikes and cost £150m (Sweeney, 2011). This campaign adopted the airline’s motto "To Fly, To Serve" that is imprinted on the company’s coat of company, on the lining of the cabin crew uniforms and pilots’ hats (Sweeney, 2011). The main focus is the customer service that is provide by British Airways. The chief executive officer, Keith Williams stated that the campaign marked the start of a new chapter for the company after a tough period characterised by political instability, global recession and the 9/11 terror attack (Sweeney, 2011). The global ad campaign that was worth about £20m and it’s the largest campaign ever since the "21st century air travel" that was held in 2000 (Sweeney, 2011). The campaign cost more than £1m to lay out and featured numerous celebrity passengers such as Jerry Hall, Michael Owen, John Lennon, Alfred Hitchcock and an image of Margaret Thatcher as stated by Sweeney (2011). It was the first time that the company had carried out a main television advertisement in two years (Sweeney, 2011). This campaign shows how the company has changed over time as it has made use of shots from the original planes that were basic and much smaller. As the technology has evolved over the years, it states that the airline has retained the same morals and values thereby remaining relatively the same. The main emphasis is made on truth and loyalty and creates trust between the airline and its customers. BA has taken a different approach in their publishing strategy. Instead of advertising using the conventional methods of television and newspapers, they first published the advertisement on Facebook. By showing the advertisement on a social media site, British Airways targeted the younger generation (British Airway, 2014). This is owing to the fact that the company has managed to get loyal customers over the years, what is important is to get the attention of the younger generation. The most outstanding aspect of the advertisement is the attention that is paid to staff representation in place of the customers. The creative team behind the campaign ensured that they mention what the company was and what they stood for. Additionally, it showed the company’s dedication to its employees. The other important aspect of the advertisement is the concord. The concord is considered to be an iconographic symbol that shows the airline’s pride. The motto "To Fly, To Serve” is the main focus of the advert and has been imprinted on the smallest details (Sweeney, 2011). Above all, the motto shows improved continuity and dedication. As the advertisement progresses, generations evolve. It starts off with old-fashioned individuals and this can be observed through their clothes. Over time, it becomes modern to what we have in the modern times. In so doing, the airline shows that it has been around for a long time and whilst things around them have change, the airline has improved while the customers have remained the same. To sum up, the British Airways campaign, "To Fly, To Serve" focuses on morals and values (British Airways, 2014). It is all about the truth not covering up the real issues with glamour. This is an ideal way of presenting the campaign as the customers know that they can rely on the airline and are most likely to choose it over other airlines. Evaluation of the Campaign It is important to evaluate the company’s promotional mix in relation to the above-mentioned strategy. To begin with, promotion refers to the efforts by a company to fuel demand for its products or service without making any changes to the product mix and distribution channel. The campaign strategy; “To serve. To Fly” is thereby viewed to be a promotion strategy (British Airways, 2014). Promotion refers to any communicative action whose main aim is to further an idea in distribution channels or move a product or service forward (Hackley, 2005: 34). It refers to the efforts made by marketers to persuade customers to buy the product or service and recommend it to other consumers. Philip Kotler stated that promotion is made up of all the instruments in the marketing mix whose major role is persuasive communication (Mackay, 2005: 47). The airline market is highly competitive therefore production that is based on expectation of demand cannot be overemphasised. Strategies such as the one discussed above are important for a number of reasons. It bridges the gap between the consumer and producer, revives demand, stimulates demand, inform the marketing intermediaries, shows the need of communication in expansive markets and gives meaning to other factors in the marketing mix (Jobber, 2004: 26). The campaign strategy discussed above was mainly done through social media sites and through other avenues such as TV, magazines, radio channels and websites. Although the campaign mainly targeted the younger generation, it would be a narrow idea if the campaign was done on a single form of media. Sale promotion is a short-term incentive that was aimed at increasing the ticket sales. It is highly efficient in combating marketing campaigns by the major competitors (Iyer, 200: 461). The company sells holiday packages and hotels on their website thereby increasing the loyalty of their customers. In addition to the improved staff dedication, the company gives offers throughout the year such as an exemption in check-in fees. Other promotion activities that go hand in hand with the advertising strategy include free accommodation, free travel insurance and competition to win free holidays. In the modern times it has become difficult to inform the right people about the right products and their prices owing to increase in the media channels including TV, Magazines, Radio and the Internet (Dwyer, 2005:17). Individuals are only aware of the existence of products when they can access information about them. The campaign adopted emotional advertising especial when they stated that the airline cabin crew could deliver babies and they transported valuable cargo such as organs that were meant for transplants (Sweeney, 2011). British Airways adopted direct marketing in the campaign and the best example of the tolls that were used in this approach is through direct mail. This method has gained increased popularity as it is much easier for the company to supervise the response that is gained through this communication (Jobber, 2004: 26). Additionally, information that is sent through this mode of communication can be personalised to the receivers. However, direct marketing encounters a number of problems such as intrusion of privacy and misuse of personal data. However, British Airways is reputable for its esteemed services that respect the privacy of consumers and give them the opportunity to get important information about fares, special offers and new features about the company. Additionally, the customers can subscribe for the company’s direct marketing while mobile users can take advantage of the special offers through the SMS alerts. The other concept that was adopted in the above campaign is personalised selling. Personal selling was a popular trend in selling products and services until sophistication and technology took over the advertising space (Mackay, 2005: 52). This takes place when a company’s representative or manager comes into direct contact with customers. Customers are satisfied with this personalised service as they feel that they are talking to an informed person makes the customers feel satisfied that they are talking to a competent individual. This approach was undertaken to improve the company’s sales. The other concept that is adopted by the company is integrated marketing communications. This is owing to the fact that communication with British Airways is influenced by its customers as well as other stakeholders in the market (Strategic Direction, 2006: 24). The target audiences for an advertising company can be divided into two, the internal and external groups. There are five important communication methods that including public relations, sales promotions, advertising, direct marketing and personal selling. All these methods were adopted in the advertising campaign discussed above. Public Relations refers to the process of helping an entity and its publics adapt equally to each other. Examples of public relation tools used in the campaign include public service ads and interview shows. Sales promotion is the commonly used tools to increase sales and examples include special events, premiums, cash prizes and price reductions (Strategic Direction, 2006: 24). Advertising is the pillar of promoting a company’s goods and it is done through the various channels of advertising. Direct marketing is also key aspect in the marketing communication mix and it is mainly done through direct mail. Finally, personal selling involves the sale of the products or services offered by a company through a representative. This mode of advertising cannot work independently and it should be incorporated in the MC Mix. Recommendations To sum up, British Airways is one of the key players in the airline strategy that has seen drastic changes since it was established in 1974. The past decade has been tough on the company following the 9/11 terror attack and the economic recession. These factors led to a decline in the company’s profits prompting the establishment of campaign strategies to return the airline to its former profitability. The “To fly. To serve” campaign was introduced in 2011 following the cabin crew strike. This campaign was launched on Facebook since it mainly targeted the younger generation and as earlier stated, it was the largest campaign organised in the past decade. Although the strategy was successful, the company is advised to make a number of changes that can be helpful. The company is advised to ensure team work among its employees as it creates a positive image for the company among consumers. Secondly, the company should ensure that it remain in touch with the changes in the world of marketing and advertising British Airways should conduct further research on advertising strategies that are practical for the firm in the modern world. Finally, the company is advised to take advantage of increased popularity of social media sites in advertising. References British Airways (2014). British Airways, viewed May 7, 2014 from http://www.britishairways.com>.< Data Monitor (2014). British Airways Plc, viewed May 7, 2014 from . Dwyer. J. (2005) Communication in business, Pearson Education: Australia. Hackley. C. (2005) Advertising and promotion: Communicating brands, SAGE: London. Iyer. G., Sobermann. D. & Villas-Boas, M. (2005) ‘The targeting of advertising.’ Marketing Science, vol. 24, no. 3, pp. 461-476 Jobber. D. (2004) Principles and practice of marketing, McGraw Hill Education, England: Berkshire. Mackay. A. (2005) The practice of advertising, 5th Ed, Elsevier Butterworth-Heinemann, Sydney: Australia. Strategic Direction (2006) ‘The importance of marketing strategy: Gaining the competitive edge with Integrated Marketing Communications (IMC).’ Strategic Decision, vol. 22, no. 8, pp. 23-24. Sweeney, M. (2011) British Airways to launch biggest ad campaign in 11 years, viewed May 7, 2014 from . Read More