Working together for the Benefit of the Clients Jeff CACY Managing Director, Branding & Marketing BOEING
MODERATOR: Pierre JEANNIOT
Air Promotion Group Monaco Meeting 2012
Jeff Cacy, Managing Director Airline Marketing Services, Global Boeing Commercial Airplane Company BOEING is a trademark of Boeing Management Company. Copyright Š 2008 Boeing. All rights reserved.
Speaker comments may not fully represent the official position of Boeing and may not be used without permission.
Why is Boeing here? • We support more than 270 active airline accounts around the world and many of you in this room on a gratis basis to enhance your marketing capabilities. • We support government and infrastructure issues with professional analysis and support for all our customers. • We provide in depth analysis of airline premium customer desires. • We support government tourism initiatives and regulatory reform to provide ease of travel. • We advertise directly to consumers to support a “return to joy” as an expectation for air travelers. • We provide marketing expertise and market analysis to our customers. • We support global air travel initiatives! And have since 1916!
Copyright © 2008 Boeing. All rights reserved.
International branding-the story of the expectation for air travel is our challenge 1. Our business has to be absolute (always and never) 2. Our customers are economically segmented by their LEV 3. It is imperative we continually collaborate
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Simple Truths/Filters • People have had an aspiration to “go beyond the blue horizon” through time, more so in the 21st century • Travel is expected to be convenient, comfortable and offering choices • Increasing exogenous threats have less effect on demand for air travel (and for a shorter term) • There is “perfect information” in the 21st century…we are all in this together to serve the global public—aerospace, airlines, airports, regulatory agencies and travel industry organizations • The (traveling) public and press hold us all to a very high standard regarding technology improvements, process improvements and cultural considerations
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World air travel has grown 5.3% per year since 1978
LCC long haul Onboard: ancillary revenues Consolidation: Alliance expansion Networks: smaller airplanes, de-banking hubs Networks: growth via “secondary” airports All-business Onboard: single-class for short haul Smaller airplanes, debanking hubs LCCs: high utilization, direct short haul Distribution: direct to pax
Breakthrough new a/p winglets <<Regional Jets>>
Twin-engine long-haul airplanes Two-crew cockpits High bypass ratio engines 2nd Oil Shock Recession
Noise regulations Gulf War I Recession
Asia Financial Crisis
9/11 Gulf War II Recession SARS
1978
1980
1982
1984
Liberalization U.S. RPKs = Revenue Passenger Kilometers Source: ICAO, Scheduled Traffic Copyright © 2008 Boeing. All rights reserved.
1986
1988
Open Skies
1990
1992
1994
1996
1998
Liberalization Europe
2000
Financial Crisis Recession
Fuel price shock
2002
Avian Flu
2004
2006
2008
Liberalization Asia-Pacific
Air Travel is an Evolutionary Business
• … collaboration in our industry even more important • Use resources: Partners (airports, hotels, online technology; WIFI resources) Competitors (benchmark best industry practices, alliances) Suppliers (aerospace, food services, distribution channels, government tourism organizations)
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The Global Customer Base: -expects standardization (i.e. alliances) -similar processes, security and distribution access -newest technology
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I. Our Business is Absolute -- safety, ease of use, communication • convenience, comfort, confidence • Elitism and inconsistency • branded behavior at each customer touch point, personal interactions define impressions Copyright © 2008 Boeing. All rights reserved.
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Win international recognition
• The World Airline Awards (Skytrax) • OAG Airline Industry Awards • Global Traveler Magazine • Consumer Reports: Best airlines for today’s busy skies • The Zagat/NBC TODAY Show Airline Survey • Airline Quality Rating • USA Today: Today in the sky Copyright © 2008 Boeing. All rights reserved.
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Our Customers Are (LEV) Segmented
• How many passengers did you carry in 2011? • What country has the largest per cent of aging population? • How will we serve that segment with easy airport processes, easier to read documents for travel and immigration? Is our infrastructure at our facilities sufficient to allow easy access? • How will we relate to the online generation that expects to purchase air travel EVERYWHERE and will use those companies that support that option? Alternatively, how can we continue to relevantly support traditional models used by the “boomers” elsewhere? How are they all different? • How do we continue to be relevant to religious differences, gender differences and age differences at each customer touch point?
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Not All Passengers Are Equal: 15%-20% of your passengers (should) deliver 50% of your revenue 15%
Copyright Š 2008 Boeing. All rights reserved.
Measure Your Best Customers: all Customers • Are your best customers as good as your competitors; your alliance partner? • Does your hub airport support your best customers in the same way? • Is your touch point brand behavior consistent with all your best customers at each level relevant to their life time economic values?
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We have to Collaborate as an Industry
• Cast your participation net widely. • Your success is key to the entire global travel industry. • Take your place at the table!
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Identify hot local issues: Social Media commentary Corporate Social Responsibility Your airline has a personality (i.e. young, old, hip, traditional, loyal)
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Carbon footprint: a hot issue in Europe
Global man-made CO2
Emissions from human activities are increasing concentrations of greenhouse gases that lead to climate change.
Other Energy
Other Transport
10%
2%
Air Transport
Industrial Processes
3%
2% Of the greenhouse gases, CO2 has the longestlasting, global effects.
Road Transport
Land Use Change And Forestry
13%
25%
Other Industry
2% Cement
5%
Building Light and Heat
Chemicals
6%
Other Electricity and Heat
20%
12% 2000 IATA/WRI data Copyright Š 2008 Boeing. All rights reserved.
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Better communicate with your international audience? • Step into the shoes of your target audience and look through their eyes • Adopt international/local concepts, terminology and business practices • Get international endorsement and win internationally recognized awards and honors • Hire locals and professionals • Change the way to learn: from trial and error to doing it right the very first time Copyright © 2008 Boeing. All rights reserved.
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Thank you! Jean-Louis BAROUX, President Jim Foster, COO Frederick Despreaux, Marketing Director Julie Dufour, World Connect Coordinator …and to the 70 airlines of APG World Connect
BOEING is a trademark of Boeing Management Company. Copyright © 2008 Boeing. All rights reserved.
How to communicate your brand internationally
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