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Case Study: Major Airline Carriers

Summary

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The airline industry has spent the past decade concentrating on digging themselves out of the hole that 9/11 and fuel costs have dropped them in. They did that by cutting costs. Only a few of them reacted to the downturn by developing a brand that creates preference.

It may be because the airlines themselves, deep in their souls, believe there is little difference between them and strive to keep passengers through affinity programs. They have, as we discussed earlier, developed a model that traps travelers and, with the marketing all being relatively the same, passengers believe they are all basically the same. That may mean airlines will begin looking at a new model in the future.

The airline industry does have a handicap in that technological advances have been few while the rest of the world has ridden advances to take advantage of the “control” desire running strongest through our world.

In the face of that, it’s more important now than ever that airlines develop brands that are truly meaningful to passengers and are positioned against the competition to create preference and steal market share. Most of them are basing their brands on category benefits - getting to places, for example - so it feels like no difference. We then just prefer one over the other based on price, location or being trapped in an affinity program.

Southwest is continuing to hit its brand mark straight on, but it has its limitations. It appeals to those who only care about cost and haven’t had the ability to fly before because of cost. For the rest, Southwest may not the brand for them.

Continental has taken most advantage of the current dissatisfaction among passengers by aligning itself with that feeling and positioning it against the rest. That final point is crucial. Northwest, which has primarily promoted category benefits, has a few spots about service.

Northwest "The Runner"

The key difference between Northwest and Continental, though, is that Continental has positioned itself against the market. Northwest is only talking about itself, as though it lives in a vacuum. (Sometimes, the difference between a successful brand and a less successful one is slim as paper.)

Delta remains in search of a meaningful brand and its merger with Northwest may alter the landscape and lead them to capture a unique position. American seems content to establish itself as the standard of category benefits and play defense in its leadership position.

The dark horse is United. It has the elements of the strongest brand in the market - heritage, brand equity markers, an aspirational tone - but it has stepped slightly away from what once made United great and has struggled to position it against the competition.

There’s a solution to that for United, which involves more forcefully using Gershwin and bringing back Hackman (if available) and reminding passengers what flying used to be, especially if/when the market rebounds. It wasn’t that long ago when flying was an experience and wasn’t treated as a commodity. You dressed up to fly (remember that?) and it was something special, even pleasantly surprising.

There is nothing surprising about flying any more, other than the disappointing shock of realizing your flight has been delayed for hours and you’re trapped at the airport. (And, yep, Continental has a spot about that too.) Airlines have lost their way and, barring a new model that can give control to the passenger, they can find their way by taking advantage of the opportunities that exist in the market.

It is not all doom and gloom for airlines because, with the category basically having the same marketing, there is great opportunity for an airline to stand out, rise above the fray and be heard. In fact, often the best times to re-brand is during a downturn in the economy because once all things are equal brand is about all customers have to choose on. In racing, you don't make up time or pass on the straightaways. You make up time on the turns. The one who speeds through the turns and considers who its passengers are when they use the brand - and all of the major airlines have the capability and brand equity to do just that - will take the checkered flag.

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About Stealing Share

Stealing Share is a brand development firm that arms its clients with the tools they need to drive competitive advantages. We conduct research and provide corporate strategy, positioning, training and brand design with one goal in mind: To steal market share for our clients.

Our experts are all about the science of persuasion, and have proven it with brands and companies all across the world. We uncover the fears and belief systems of your target audiences so your brand can align itself with them and create preference. It’s how we steal market share.




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