brand planning workshop findings

Tiger Brand Positioning Discussion Paper

December 19th, 2008

©SPINACH ADVERTISING 2008

Agenda

1. Marketing Objectives2. Draft Brand Greenprint 3. Market Context4. Positioning Options5. Positioning Recommendation6. Final Brand Greenprint


Marketing Objectives

1. Maintain targeted sales rate for 20092. Competitively position Tiger Airways brand and increase

footprint by:• Stimulating air travel market and passenger volume• Stealing market share

Growing the market is the purview of LCCs and has been strongly evidenced by the likes of Ryanair and EasyJet in Europe (along with 38 other LCCs), and Qantas’ Jetstar in Australia which claims to have grown the market by 10% in its first 2 years of operation.

The opportunity to steal market share from the premium airlines cannot be overlooked given the increased price sensitivity of consumers.

Low cost fares will drive sales, but where price and promotion parity occurs, the brand can assume the role of key differentiator and give customers a reason to choose Tiger Airways.


Greenprint


Why use the Greenprint?

The Spinach Greenprint provides clarity, consistency and inspiration for everyone who works on or with your brand.

• Focus and Inspiration• Brand foundations firmly in place in a dynamic environment.• Clear and compelling goal that is a unifying focal point for the

entire organisation.

• Clarity• Internal expectations of performance and behaviour are clear ie.

all staff members are clear about why they’re here and what they stand for.

• Consistency• Removes subjective interpretation and judgement about

priorities and goals.


Greenprint universal applications

• Marketing and Communications Program• Advertising• PR• Sponsorship• Guerrilla Tactics etc.

• Product development• Internal culture development• New business initiatives• Strategic alliances• etc.

our positioning

key stakeholdersour purpose our brand values features

priority markets

What we are trying to achieve

The way we do things

What we deliver Who we deliver to

Competitive Set

our vision

our brand personality

logo/tagline

what we’re not

emotional benefits

functional benefits

1

2

5

Our competitive focus

Groups we should consider in the communications mix

Where our focus should be by geographic market and/or target audience/segments.

Visual and audio identify and symbols

The company’s fundamental reason for existence beyond just making money.

A clear and compelling goal that is a unifying focal point for the entire organisation.

A statement used internally to articulate our promise to our customers expressed as a differentiated benefit.

The company’s essential and enduring tenets, not to be compromised for financial gain or short-term expediency.

The character traits that most define our brand.

Ensure character traits are clearly defined

Attributes that define our service and products

Tangible benefits derived from one or more service/ product attributes – the rational ‘what’s in it for me’ for the client

Intangible benefits derived from one or more service/ product attributes – the emotional ‘what’s in it for me’ for the client

tone of voice

You can say the right thing about a product or service but it doesn't guarantee that anybody will listen. How can we say it in a way that people will relate to?

3 4

our positioning


priority markets




Competitive Set

our vision


logo/tagline

what we’re not

emotional benefits

functional benefits

1

2

5

JetstarVirgin Blue

1. Shareholders2. Customers3. Staff4. Media

MelbourneAdelaide

Target:• Lower socio-

economic groups• Infrequent/first-

time travellers• Female skew

TigerTagline (tba)

To provide safe, reliable and convenient point-to-point air travel at the lowest possible price.

To become Australia’s preferred domestic carrier.

?

Competitive PassionateStraight forwardPragmaticGenuine

RudeCold

1. Low cost fares2. Fantastic deals.3. On-time

performance4. New aircraft.5. Online sales. 6. Passengers only pay

for what they want.7. Affordable

amenities.8. Ticket-less travel.

AffordabilityPunctualityReliabilityComfortable flying

Peace of mindSense of fair playEnabling:• New experiences• Family bonding• Freedom

tone of voice

Clear, honest and empathetic.

3 4

Customer championEfficientEmpoweringSingle-mindedEgalitarian


Market Context


Implications of economic slowdown

Category issues:• Challenge to stimulate domestic travel• Soft inbound tourism• Overall traffic volume prediction recently slashed from 4.5

per cent to 2.9 per cent (IATA)• Falling loads mean many operators are dumping capacity.

But, this challenging climate presents more opportunities for Tiger Airways than issues because:

• Cost will become increasingly significant for new and existing travellers.

• Tiger is well positioned to win from a recession with signs already of people downgrading travel choices with a shift from premium (World Travel Market 2008 report)

But…with more low cost carriers likely (Emirates & VivaJet to name two) differentiation within the LCC space becomes critical.

Source: Our Environment: A paper for Tourism Tasmania’s Strategic Planning Forum, 11/08


Brand Positioning

Some other factors to consider:

• Tiger cannot leverage first-to-market advantage. In the mind of the consumer, Jetstar is a low cost carrier. In addition, we have already had Compass Mark 1, Compass Mark 2, and Virgin Blue (in the early days).

• As well as deep pockets, Jetstar enjoys high top-of-mind awareness and No. 1 in the consideration set, evidenced by the google rating against ‘cheap flights’ key search term:

• No. 8 Jetstar• No. 18 Virgin Blue• No. 23 Qantas• No. 200+ Tiger

• While SEM and SEO can assist in driving brands up the google search ladder, tom awareness and brand consideration are critical to drive direct enquiry from the consumer.


Brand Positioning

• So, what will entice travellers to put Tiger on their consideration list? What makes them stand apart from Jetstar (as the key competitor)?

• ‘Cheaper flights’ is compelling, but not differentiating. And arguably, promoting this message alone in the market may benefit Jetstar more than Tiger while Jetstar are enjoying higher tom, salience, preference and more sizeable inventory.

Masterbrand Positioning

The Age “improves me”Potential Positioning Support

Product/ Service

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Which product proof point is the most compelling and differentiating to add to price?

Brand Positioning

• While Tiger cannot compete in areas of scheduling and ease at this stage, they definitely can substantiate efficient departure/arrival times with a current rating of 84%, as well as efficient ‘on ground’ process. The key consumer benefit being reliability.

• The point is that price + reliability = value.

• And differentiation and value have never been more important.

Positioning Options


Positioning – how it works

CONSUMER INSIGHT

The thing that you know about the consumer’s mindset that is most

relevant to your objective

CONSUMER INSIGHT



BRAND INSIGHT

The thing about your brand that addresses or answers the consumer

insight

BRAND INSIGHT


insight

POWERFUL TRUTH

The thing we’re going to say to make them

think/do/feel the desired out-take

POWERFUL TRUTH



+ =

What about me? I’d like to visit my friends and family too, but I can’t

afford it!

What about me? I’d like to visit my friends and family too, but I can’t

afford it!

Tiger Airways consistently delivers low cost, on-time air

travel


travel

Everyone deserves a reliable, cheaper way

to fly.


to fly.+ =

Tiger Airways



CONSUMER INSIGHT



CONSUMER INSIGHT



BRAND INSIGHT


insight

BRAND INSIGHT


insight

POWERFUL TRUTH



POWERFUL TRUTH



+ =

I’m sick of paying through the nose for

crap service.

I’m sick of paying through the nose for

crap service.


travel.


travel.


to fly.


to fly.+ =

Tiger Airways



CONSUMER INSIGHT



CONSUMER INSIGHT



BRAND INSIGHT


insight

BRAND INSIGHT


insight

POWERFUL TRUTH



POWERFUL TRUTH



+ =

I feel let down that air travel isn’t more

affordable.

I feel let down that air travel isn’t more

affordable.

Tiger Airways has the lowest operating costs

in the category.

Tiger Airways has the lowest operating costs

in the category.

Tiger Airways delivers consistently cheaper

flights.

Tiger Airways delivers consistently cheaper

flights.+ =

Tiger Airways

our positioning


priority markets




Competitive Set

our vision


logo/tagline

what we’re not

emotional benefits

functional benefits

1

2

5

Everyone deserves a reliable, cheaper way to fly.

OR/

Tiger Airways delivers consistently cheaper flights.

tone of voice

3 4

JetstarVirgin Blue

1. Shareholders2. Customers3. Staff4. Media

MelbourneAdelaide

Target:• Lower socio-

economic groups• Infrequent/first-

time travellers• Female skew

TigerTagline (tba)

To provide safe, reliable and convenient point-to-point air travel at the lowest possible price.

To become Australia’s preferred domestic carrier.

Competitive PassionateStraight forwardPragmaticGenuine

RudeCold

1. Low cost fares2. Fantastic deals.3. On-time

performance4. New aircraft.5. Online sales. 6. Passengers only pay

for what they want.7. Affordable

amenities.8. Ticket-less travel.

AffordabilityPunctualityReliabilityComfortable flying

Peace of mindSense of fair playEnabling:• New experiences• Family bonding• Freedom

Clear, honest and empathetic.

Customer championEfficientEmpoweringSingle-mindedEgalitarian


Recommendation

To position Tiger Airways in the Australian market as the only airline that passionately believes that:

Everyone deserves a reliable,cheaper way to fly.


Next Steps

• Agree positioning statement.• Sign off Brand Greenprint• Develop alternative creative expressions to

match the brand positioning.• Evaluate and select one to form the basis of

the 2009 Campaign strategy.

brand planning workshop findings

Travel

brand values

tiger airways brand

inspiration brand foundations

brand personality logotagline

service product attributes

spinach greenprint

air travel market

positioning key stakeholders