Global Marketing Plan

Ryan O’Connor, BSc Aviation ManagementStudent ID: 07034315

Maximising Revenue Opportunities & Strengthening Our Brand

Contents• Introduction: The World’s Leading Quality Global Alliance Brand

(Member Airlines, Strengths & Opportunities, Threats & Weaknesses, Positioning)

• Key Marketing Opportunities for 2011-2012(Our Marketing Matrix To Drive Sales & Revenue Growth)

• Global Geographic Marketing Initiatives(North America, South America, Europe, Asia Pacific, Middle East, Russia, Africa)

• Marketing Initiatives Timeline• Strategic Positioning• Setting KPI’s• Summary

Introduction: The Leading Alliance• 12 of the world’s biggest and best airlines + 20 affiliates • Providing its customers and carriers with services and value no

airline can deliver on its own.• Offering the market-leading range of alliance fare and sales

products.• Committed to innovation to improve customer service.• Winner of more international awards for airline alliances than

either of its competitors.• Serving an unrivalled international route network.• The alliance with the strongest collective profitability record.

(Source: Oneworld)

Introduction: Our Member AirlinesOne of the biggest airlines in the worldOne of the leading international airlinesThe top carrier between Europe and Latin AmericaAustralia’s strongest brand and one of the worlds top LH A’sOne of the most highly regarded Asian airlinesOne of Asia-Pacific’s largest airlinesThe major Nordic European airlineThe leading Latin American airlineOne of the leading Central America/Mexican airlinesOne of the highest quality airlines in Central & E EuropeThe first middle eastern airline to join a global allianceRussia’s leading domestic carrier

Future Member Airlines: Kingfisher & Air Berlin• Joins 2011-2012• 380 daily departures• 69 Destinations (61 in India)• 11.6m pax (23% of Dom.India Market)• Most extensive domestic India network• Add’s 56 cities to the OW route map• Further strengthens OW in core growth market• King Club FFP to be fully integrated

• Joins at the beginning of 2012• Currently serves over 160 destinations• 600 daily departures• 28mllion pax in 2009

• Add’s 75 gateways to the OW Route Map• topBonus FFP to be integrated• New Brandenburg Airport Opportunities• BA to support integration process

Introduction: Our Positioning & Strengths• Oneworld Has A Strong Market Position In Key Business Markets

– Number one alliance at top 5/8 premium pax hubs (LHR/JFK/LAX/HKG & NRT)– American Hubs – JFK/ORD/LAX/DFW/MIA– British Airways – LHR Hub is world’s leading international airport– Iberia – Leading carrier between Europe and Latin America– Cathay Pacific – Hong Kong Hub– JAL – Tokyo Hub’s– Kingfisher Airlines helps build presence in key growth market– Still remain weak in African continent at present– We remain the world’s leading quality global airline

• This makes us the first choice for business/premium leisure travellers• Greater yields allow us to innovate better than our competitors

Introduction: Weaknesses• We still maintain weaknesses in our network which need

addressing:

– South American domestic partners (mergers could affect LAN positioning) however, grow now coming via GOL through bilateral agreement with AA

– African Domestic traffic is underserved by OW members– Middle East remains weak despite Royal Jordanian as our member– Canada domestic traffic is also underserved though improving via AA

bilateral agreement with WestJet.

– Whilst we have taken steps to improve our networking offering, we must continue to seek further alliances partners that helpto strengthen out network

Key Marketing Opportunities 2011-2012

PRICE

PLACE

PRODUCT

PROMOTION

Key Marketing Opportunities 2011-2012

PRODUCT

Marketing Matrix: Product• Further Develop Premium Economy Offering Across Alliance

• Grow our premium lounge portfolio from 550 to 560 by end of 2012• Launch OW product analysis to ensure continuity

• Continue premium brand strategic positioning via continuous product innovation such as BA new FIRST cabin.

• Global advertising campaign in core business/premium leisure markets to further develop OW brand awareness

Key Marketing Opportunities 2011-2012

PRICE

Marketing Matrix: Price• Maintain premium product strategy on transatlantic routes but

with strategic sales during low demand periods to stimulate the market

• This will also give price sensitive consumers an opportunity to sample our quality product offering whilst improving our load factors during quieter periods

• Build more competitive pricing matrices through our new JBA’s including AA/BA/IB – AA/JAL – AA/QF

• First to offer RTWT – Build on this further with RTWT sale price of £999 during January sale period + member airlines to promote individually on their websites

Marketing Matrix: Price

Source: Anna Aero

Key Marketing Opportunities 2011-2012

PLACE

Marketing Matrix: Place• Greater focus placed on online advertising spend

• Increased advertising spend at key hub airports on billboards (LHR/JFK/MAD/HKG/LAX)

• Greater advertising efforts in emerging markets - Latin America & China

• New opportunities for development at MAD/BCN & BBI

Key Marketing Opportunities 2011-2012

PROMOTION

Marketing Matrix: Promotion• Oneworld member airlines have a strong history of innovative

product advertising

• Going forward, we are going to develop a global advertising scheme based around the alliance itself, rather than individual members.

• This has already begun with the launch of UP

Global Geographic Marketing Initiatives

Oneworld Has A Strong Market Position In Key Markets

Let’s take a look at some of our regional marketing activities for the next 12-18 month period...

GGMI: North American Market

• Our North American campaign shall focus on our new agreement with the Walt Disney company & The Pink Pound

• Focussed on developing traffic to Florida/California

• Special Offer fares

• Flight & hotel packages with Disney Resort Hotels

• Key Destinations (MIA/LAX/SFO)

GGMI: North American Market

GGMI: South American Markets

• We are focusing our South American Efforts Around two events:• 4th-7th November - Buenos Aires Pride 2011• 17th-21st February - Rio de Janeiro Carnival 2012

– Key tourist events– Strong pull for the pink pound

– We can capitalise on the communities higher disposal income by selling our premium product offering for these events and showing that we are the alliance of choice on these routes...

GGMI: South American Markets

GGMI: European Markets

• Shall continue to focus on marketing our already strong position on the North Atlantic, and in particular our new JBA for AA/BA/IB

• In addition, our key marketing events for the European market for the period will be:

• Cannes Film Festival in 11th-22nd May 2011

• Royal Ascot/Wimbledon June & July 2011

• World Cruise Departures 2012

GGMI: European Markets

GGMI: Asia-Pacific Markets

• We shall further develop our alliance benefits for our customers via advertising our new agreements:

• AA/JAL - JBA• QF/AA – New Agreement in process

• Cathay Pacific shall increase Oneworld alliance advertising in HKG to boost our position as the business travellers first choice for travel

• FHA 2012 Conference/Exhibition

GGMI: Asia-Pacific Markets

GGMI: Middle Eastern Markets

• Despite our Royal Jordanian partner, we remain weak in the ME.

• Going forward, we shall now begin investigating the potential of developing Amman as a Oneworld hub, to mitigate against the threat of EK/EY & QR.

• We shall step up advertising in course business markets such as Dubai & Abu Dhabi, but efforts are somewhat hindered by the strength of local carriers

• MENA Conference 2012

GGMI: Middle Eastern Markets

GGMI: Russian Market

• Traditionally Oneworld has been weak in the Russian market

• Thanks to our newest alliance member, S7 Airlines, this has now changed.

• Our marketing budget in Russia will now be considerably increased +20% for 2011-2012 period

• Boosts awareness of Oneworld brand and give customers greater choice when travelling long haul via S7 domestic network

GGMI: Russian Market

GGMI: African Market

• Our presence in Africa still remains a weak market for OW

• We shall make further use of our OW affiliate Comair to further build our network and product offering

• Long-term development could see Comair becoming a full member of Oneworld

• Oneworld members serving the African market will increase advertising regarding our Comair partner

GGMI: African Market

Marketing Initiatives Timeline

Event/Period

Summer ‘11 – Winter ‘11 Spring ‘12 – Winter ‘12

Mar

Apr

May

Jun

Jul

Aug

Sept

Oct

Nov Dec Jan

Feb

Mar

Apr

May

Jun/

Jul

Cannes Film Fest.

Ascot/Wimbled.

Pride Events

World Cruise Dept.

LON Olympics

Worldwide Sale

Disneyworld Prom

MENA 2012

Food&HotelAsia

Strategic Positioning For The Future• Continue to grow business traffic through strategic hubs

(Target Premium Business Growth, new corp. contracts, achieve < +5% by Q4)• Further investments in premium product innovation

(lounges & technology, plus further investment in product continuity across alliance members)• Maintain position as No.1 choice for business/premium leisure travellers• Defend core hubs JFK/DFW/LAX/ORD/MIA/LHR/MAD/HKG/• Poss. Development of Amman as Oneworld ‘Defence mechanism ‘ to EK/EY/QR Threat• Increase premium leisure product offering

(Premium Ecom for both short term and long term benefits)• Maintain & further grow transatlantic business as part of the JBA

(increase share on core routes now that markets are improving)• Monitor the situation in Japan esp. BA/AA/JAL frequencies

(Near term still to be seen as to traffic impact, long term could have greater implications)

Setting KPI’s For The Future• Alliance members to report combined profitability by year end 2012 (-$2.5b 2010)• Grow Oneworld brand awareness from 50%-65% by year end.• Increase system wide load factor from 77.9% (1/01/2011) to 85% by year end.• Grow FFP membership levels from 103m to 110m by 2015 by building on CRM• Move to common Global Distribution System (GDS) pref. Amadeus.• Increase the number of Oneworld lounges from 550 to 560 by end of 2012• Increase online advertising spend by 20% on core sites (ft.com, Wall St Journal)• Full integration of Kingfisher and Air Berlin into the Oneworld family• Further technology development – iPad/iPhone/Android apps• Capture core growth markets today to benefit in the future:-

– Further investment is needed in China/India & South America markets– Potential for new airline members in these markets– Greater alliance benefits

(Source: Oneworld)

Summary• Continue to grow business traffic through strategic hubs

• Further investments in premium product innovation

• Maintain position as No.1 choice for business/premium leisure travellers

• Defend core hubs JFK/DFW/LAX/ORD/MIA/LHR/MAD/HKG/

• Poss. Development of Amman as Oneworld ‘Defence mechanism ‘ to EK/EY/QR Threat

• Increase premium leisure product offering

• Maintain & further grow transatlantic business as part of the JBA

• Monitor the situation in Japan esp. BA/AA/JAL frequencies

Thanks For Listening...

Ryan O’Connor, BSc Aviation ManagementStudent ID: 07034315

Maximising Revenue Opportunities & Strengthening Our Brand