Airlines: Brand-new approach is vital

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hey started thinking about it before the airline even had a name: What brand would they create for their new carrier, and how would they make it stick?

"If your only claim to fame is low fares, and suddenly those fares are matched, if there's no reason to fly the product, why would you? So we set out to differentiate the product and differentiate the brand," said someone involved in those early strategy sessions

The result was the most successful startup in recent aviation history: JetBlue. Yet the airline industry is more noted for its lack of branding than its branding successes. Airlines like JetBlue and Virgin Atlantic stand out not only because they have been branded successfully but also because so many others have not.

"Pretty much universally, no one thinks airlines are doing a very good job," said Richard Ford, executive creative director for Landor, a New York-based branding company that has worked for more than 40 airlines in as many years.

"There's very little differentiation from one airline to another," Ford said, leading consumers to ask the airborne equivalent of a question that often confronts supermarket shoppers: What really is the difference between Maxwell House and Folgers?

Ford, other branding experts and some airline marketers said the growing commoditization of the airline industry has moved branding issues to center stage.

Making the effort

Some airlines are trying harder to distinguish their brands.

For example, America West decided in March 2002 to take advantage of its lower costs to adopt a simplified and business-friendly fare structure, reduce ticketing restrictions and recast itself as the second-largest low-fare airline in the U.S.

ATA decided a few years ago to move away from its leisure-only image. Since then, it has done away with the palm tree on its logo and livery, received new aircraft, added frequency to business routes and launched a frequent-flyer program. Now, it is installing business class on its entire scheduled-service fleet.

Delta recently hired a top fashion designer to create a new uniform for flight attendants and gate agents, which it said would strengthen the brand.

United is painting a new livery on its aircraft to represent "the spirit of the United brand," replacing shades of gray with a dark blue belly, bright white top and large "United" lettering.

United also launched a new ad campaign using New Yorker cartoonists and award-winning animators. American, too, has reinvigorated its advertising, using customer testimonials to promote its low fares for leisure travelers, and its network, frequent flyer program and upper classes for business travelers.

"I think the arrival of low-cost carriers dramatically increases the need for us to start to build a brand that is differentiated," said Robert Britton, American's managing director for advertising.

Airlines, however, must be wary of the quick fix.

"There actually are airlines that believe you just put a TV in your seatback and you'll be just like JetBlue. That's not the case," said JetBlue CEO David Neeleman. Branding experts agree.

"Branding is not just about the color you paint your airplane; it's about the way you do business," said James Gregory, CEO of CoreBrand in Stamford, Conn.

CoreBrand managing director and COO Larry McNaughton, who once worked for TWA, said a brand is a "sum of experiences."

As one airline executive put it, "The brand stands for a promise."

Ben Kline knows what happens when an airline breaks a promise. He worked at Fallon McElligott when it launched a United ad campaign called "Rising."

The ads empathized with the business traveler's "pain and suffering" and promised United was "rising" to meet their expectations with better service. But the campaign fell flat, Kline said, when travelers discovered United really hadn't changed much and "couldn't deliver."

Kline, with the Leo Burnett ad agency, estimated airline branding is 90% experience and 10% advertising and even then "only to the degree that the ad is reinforcing the experience."

"The experience drives preference to such a heightened degree that it makes your advertising look puny by comparison," he said.

"The branding game in the airline business needs to evolve from livery and brand advertising to brand experience. He who can come up with [the most] powerful, compelling brand experience is going to win."

Success stories reveal some shared characteristics:

Southwest

Southwest built its reputation and image over decades, emphasizing low fares, efficiency, friendliness and fun -- even if passengers have to scramble for unassigned seats. The formula, combined with an internal focus on low costs, has led to 52 straight quarterly profits, which also has been good news for its profit-sharing employees.

It is an airline that always capitalizes the word "customer." It makes no pretense of offering frills, focuses relentlessly on a low-fare message and works hard to build employee morale -- even to the point of sending flowers to a gate agent for a work anniversary.

Regional promotions manager Derek Kuester said the most important element of his airline's branding is its focus on its message -- and following through.

"In our case, we may underpromise and overdeliver," Kuester said. "We're not trying to be all things to all people. We are what we are. It's not a first-class seat to China."

JetBlue

A few years ago, with U.S. travelers irate about industry mistreatment and Congress considering a "passenger bill of rights," JetBlue's founders decided on a mantra: "Bring humanity back to the industry."

The mantra became the basis for its strategic decisions, such as adopting a "rational and reasonable" fare structure and a "no overbooking" policy, and for the culture it wanted to create, said Gareth Edmonson-Jones, a JetBlue spokesman involved in the strategy sessions.

With its base at Kennedy Airport, JetBlue also opted for an edgy persona "because we decided that's how New Yorkers like to be spoken to," he said. Starting with a small ad budget, JetBlue relied on public relations and promotions that reinforced its chosen persona. For example, JetBlue held its launch press conference at a Soho bar called Idlewild (Kennedy Airport's former name), which modeled its interior on an aircraft and featured bartenders dressed as pilots and waitresses as flight attendants. Edmonson-Jones said JetBlue liked the attitude it conveyed.

New aircraft, leather seats and live TV did help differentiate the product. Low fares also help, but they aren't everything: Neeleman said JetBlue now charges the higher average fare on almost every route where it faces direct competition.

Just as critical, Neeleman said, has been his airline's determination to treat every customer with respect.

Like Southwest, JetBlue emphasizes employee relations, from profit-sharing to sending JetBlue slippers to its at-home reservations agents, to its leaders striving to meet every new worker. As Edmonson-Jones put it, "What we try to communicate internally is, 'We're all the brand.' "

Virgin Atlantic

Virgin's branding is part product, part one man's personality.

When Richard Branson started the airline in 1984, he wanted to make flying fun again while providing value and challenging convention, said Ginnie Leatham, Virgin Atlantic's head of brand. Branson's record industry background gave the airline a rock 'n' roll image, and early flights included jugglers and musicians.

The brand, however, has evolved. About 10 years ago, Leatham said, Virgin made a big push to establish its credentials as a serious option for business travelers. The new message focused on offering first-class service at business-class fares, emphasizing extras such as in-flight massage and complimentary limo service.

The airline also believes a "halo effect" from its Upper-Class service has boosted sales in economy, which already benefited from individual video monitors and a premium economy section. Then, of course, there's Branson as pitchman. Virgin's chairman has dressed up as Elvis for the launch of Las Vegas service and as Robinson Crusoe for new service to Grenada and Tobago.

"We're very fortunate to have a chairman who will do virtually anything for the brand," Leatham said. Nonetheless, she added, "you can do all these fun stunts, but if underneath you can't deliver, it very soon becomes hollow. What you do has to have some integrity."

Singapore Airlines

Some airlines choose a brand identity that meshes with its home country's image. Examples abound, including "great Asian service, German efficiency or British humor," said Bernd Schmidtt, executive director of the Center on Global Brand Leadership at Columbia Business School. But great brands can't rely solely on their homeland's image, he added.

Singapore Airlines is a prime example. One of the industry's most recognizable advertising characters is its "Singapore Girl," appearing for more than three decades in her batik sarong kebaya as the personification of the airline's Asian warmth and hospitality.

With a small domestic market, Singapore chose its brand identity as the best way to reach a global market, said Gerry Oh, vice president, marketing communications and development.

"We focus on service because service cuts across all market segments and all geographies," he said. "Whether you are in London, the U.S. or Asia, when you're the recipient of good service you always remember."

The airline, however, knows it must consistently deliver on its promise. To that end, every new employee undergoes 14 weeks of "basic training" on items such as grooming, service, safety, presentation and handling of passengers. Workers also attend a yearly refresher program and familiarization classes for new products.

The carrier remains committed to a modern fleet and product upgrades. But even Singapore has seen its "hardware" advantage lessen and must rely on the "soft skills" of service to set itself apart, Oh said. "The brand," he said, "builds loyalty."

To contact reporter Andrew Compart, send e-mail to [email protected].

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