British Airways

British Airways

Case: British Airways (BA) launched an advertising campaign in 1983 to improve the corporate image. Management of the advertising firm and BA contemplated the following issues after the launch of the campaign. First, what will they do if the campaign does not improve customer awareness, recall and other indicators? Second, if the concept campaign is a success, how long can they sustain it before it becomes old? Third, how to brace for completive backlash? Finally, how to split-up the advertising budget for 1984-1985 (since a large portion of the previous years budget was put in the concept campaign and not into local advertising).

Table I: British Airways Strengths and Weaknesses

Strengths Weaknesses

BA is the largest international airline in the world. Current image is weak, seen as inefficient and incompetent.

1983 Airline of the Year Financial situation is improving, but not great. "Industry observers cite that BA needs to continue improved financial performance before stock was to be offered to private investors.

Viewed as an airline with modern equipment and experience. Fragmented marketing techniques

Not viewed as a friendly airline or having value for the money.

Problems/Symptoms:

Ð'* Country managers do not share the enthusiasm of the London office for a central concept theme. Each region should have their own advertising campaign.

Ð'* The advertising aimed at Brand concept is costly, 14.2 million pounds of a 26 million pound budget. This cuts into promotional and local advertising.

Table II: Opportunities and Threats

Opportunities Threats

The concept campaign will project BA

Ð'* As a world wide leader of air travel

Ð'* Most successful airline

Ð'* Demonstrate superior product

Ð'* Value added to current customers

Ð'* Develop style.

These characteristics will draw in new customers. The concept campaign is costly and will deplete other countries local advertising budget.

Commercials done centrally can be used in markets that cannot be afforded in others. An ad with different voice overs can be seen in U.S (typically) and smaller markets (Caribbean and South Africa) Competition may force price wars after the campaign. Marketing budget to advertise incentive programs may not be available.

Opportunity to obtain a larger portion of the business passengers segment.

Opportunity to obtain larger percentage of the worldwide market. In the UK and US BA has a healthy portion of the market share (42 &14% respectively). However, in other countries the percentage is 5% and below.

Critical Issues

Does the global concept make sense for BA?

Pro:

Ð'* BA is globally weak in their image.

Ð'* They are seen as ineffective and incompetent.

Ð'* The service is poor (friendliness and