egypt air strategic marketing plan
TRANSCRIPT
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satisfaction
It is no longer
enough to satisfy
customers. You must
delight them.
It is more important
to do what is
strategically right
than what is
immediately
profitable.
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-EGYPTAIR is the world-famous, national airline of Egypt, based in the
city of Cairo.
-Over 75 years, has experienced,When EGYPTAIR started operation on 7th May 1932.
-Its 2 aircraft carrying 4 people between Cairo and Alexandria.
-In 1960 it was the first in the Middle East and Africa to use the Comet C-4 jets.
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-Currently, EGYPTAIR has73 aircraft serving 85 destinations in 60 Countries with over 1200 weekly flights.
-The airline has stakes in
%) 60(Air Cairo
%) 20(Smart Aviation Company
%) 100(Air Sinai
-
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-In 2004, EgyptAir became the first IOSAcertified airline in Africa. In 2006.
-Egypt Air rated as a "3 Star Quality Certified Airline".
-In 2007, EgyptAir's passenger traffic increased by 21% to 7.8 million passengers.
-In 2008, EgyptAir's passenger traffic increased by 6% to 8.2 million passengers.
-EgyptAir became the 21st member of Star Alliance in a ceremony held in Cairo on 11 July 2008.
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Transport and travel to specific destinations.
Transportations and planes.
: Prepared them with
planes
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Defining Target Market Needs, Wants,
Demand
SEgmenTIng
TaRGeTIng
PosITioning
Marketing Research
Marketing Mix 7Ps
Product
VarietyQualityDesignFeatursBrandPackagingSizeServicsWarranyReturn
Price
Price ListDiscounsAllowancesPaymentCredit
Place
ChannelsCoverageAssortntLocationInventoryTranspot
Promotion
PromotionAdvertsingSales ForcePublic relationDirect marketing
People
Competence
ReliabiltiyCaring
AttitudeGoodwill
Process
Customer focus
IT supportExperien
ce perflghtInflight
postflight
Physical Evidence
On ground
In flight
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Marketing research in the early days, to increase sales than to understand customers
Over time, marketers increasingly recognized the importance of understanding buyers, Focus groups, questionnaires, and surveys.
According to an old Spanish saying, “To be a bullfighter, you must first learn to be a bull.”
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A Five Steps Process
Define the Problem &Research objectives
DevelopThe research
plan
Collect the information
Analyze the information
Present thefindings
Evalioute
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What information do I need?
Actually we was asking about both the Advantages & the Disadvantage .
Why do I need this information?
We need that information so we can Investments for the advantages , and find Solutions for the disadvantages.
Define the Problem &Research objectives
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DevelopThe research
plan
Data Sources
ResearchApproaches
ResearchInstruments
SamplingPlan
ContactMethods
Designing the Research plan calls for decisions on:
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Data Sources
InternalSources
ExternalSources
Customer Services
BookingServices
CustomersWeb
Reports
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while I was at the Egypt Air Travel Agency, I watched a situation .. A customer was upset becouse of ignorying him and late to book a ticket becouse of problem at the reservation program system
ResearchApproaches
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They all gathering on they have Delay situation with the Egypt airlines.
No enough places for hand-bages.
Lies.
Very old plane.
The uncomfortable , Stains and Trash.
Monitors bad quality.
Research
Approaches
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Unfriendly crew
Food and Services below Star Alliance standard.
No seat allocation even though I have been confirmed by the agent
Unorganized process
The plane was dirty
Bad Image.
Business seats 45⁰ with no leg support legroom was quit poor to put a laptop
Lights didn’t work.
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Crew appeared tired and upset.
Lavatories dirty and bad.
Entertainment system 10 years old.
Crew was smoking on board.
Passangers askes ,crew ignored
It was cold and no enough blankets.
They had a problem with their computer booking system.
Windows seats.
No one said thank you or good bye
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It’s cheap.
Hours magazine
Staff were good with family
The best pilot
ResearchInstruments
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We appled the research with around
25 passangers and 2 travel agency
SamplingPlan
PassangersTravelAgency
Probability Where sampling error could be measured • Cluster Random Sample
(Area)
Non Probability
When cost & time in Probability sampling is high
• Convenience Sample (Accessible)
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ContactMethods
Arranged Interviews
Intercept Interviews
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Collect the information
Analyze the information
Present thefindings
Evalioute
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1. Star Alliance.2. Direct distenations.3. Features.4. Capital.5. Government Company.6. The best pilots
1. Personals.2. Services3. Delay.4. Technical problems.5. Image6. Aircraft
1. New distenations.2. Tourism attractions.3. Market shar4. Event.5. Economy crises.6. Social rules7. Social Club
1. Other Companies.2. Weather forcast.3. Natural crises.4. Privatization
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Our vision is to reflect our external appearance
Of the Egyptian civilization , progression and culture expressing about Egyptian role for The
World Nations.
To Cearte value for our customers through present a full life on our planes and enhance the relashinship between the customers and
our employees to serve them better.
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Internal & External
Enhance & Enlarge
Increase & Growth
Increase staff motivation& Professionalism.
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Market segmentation:
- Who
- What
- How
- When
- Where
- why
Effective segmentation:
1-Measurable
Africa 8m, asia 58m,
Europe 74m, N.A 101m,
S.A 24m.
2-substantial
3-accessible
4-differentiable
5-actionable
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According to regions as they differ in habits, needs and
languages.
Income (classes)
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Segment attractiveness:
Economic class
-is profitable
-have large size
-have low risk
-have huge market.
Company’s objectives:
Economic class will
obay our bjectives in the future.
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Egyptair market coverage strategy:is concentrated marketing.
Airplanes services are offered to:1-domestic distinations2-africa: e ,w ,n & s 3-asia: c , e , s , se, sw4-europe 5-north america
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M1 M2 M3
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Types of Product :
Our Product is more than a Services.
Customer
Segmentat
ion
Market
Selection/
Focus
Targeting
Value
Positioning
Product
Developm
ent
Service
Developm
ent
Sourcing
Making
PricingDistributing
Serving
Sales
Force
Sales
PromotionAdvertising
Choose the Value Provide the Value Communicate the Value
Value Creation and Delivery Sequence
Strategic Marketing Tactical Marketing
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The current aircraft of Egypt Air 73 planes, comparison between the other Airline,the squadron of Egypt Air need supporting ,we planing to reach the aircraft force to 223 planes through the next 10 years.
So …. We thought we can support our aircraft by two ways :
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1- Buying 9 new plane a year, this new aircraft will have a remarkable features,They will be the types of Boeing 777 & Boeing 737 which will allocated to the International Journey or Trips.
2- Buying 6 planes of Embraer 1000 & Embraer 190 for the domestic trips and for the new branch of Egypt Air.
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The new aircraft will ramarkable with a special features which will make Egypt Airline one of the top ten Airlines in the world.
the Helium Seats will coverd with a nutural soft leather and that will make the passengers feels like they rest on air .
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( Cabins & Special Seats ) we will have a new Unique Furniture :
The cabins will have a privacy and many equipments like DVDs, handfree and mic etc …
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The seats will provide with 180⁰ expand and electronic tools
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Sleep Cabins for the very long destinations, Also it will have Helium bed , and all the relaxing equipments.
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The new aircraf must provided with Satellite Internet Wireless for busniess operations.
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The new aircraft will have An Operating System
so the passengers can make a phone calls for anywhere they want , and we gonna make a
( Telephone Cart System )
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(Restaurant on Plane) we will make a movement restaurant for every flight , which will remarkable with it variety and delicious foods
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We gonna devote a part of the new planes for sleep cabins for the long destinations,So the passengers can sleep comfortably and even don’t feel that they are travelling.
The sleep cabins must contain a very comfortable Helium beds with DVDs and Luxury tools.
At first this Class will be 20% of the new planes at the first stages.
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The first class on the new planes will divided into two seats types ( Cabins & Seats ) they will be able to stretch to 180⁰ with a privacy spaces.
Every seat will have a DVD screen and remote control,even there is a control panel on every seat.
The DVD screen will announce at first the Safety
Instructions, It will have an information about the destination,after that he can watch several channels (( News, Animals, Business, Entertainment … etc ))
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Also we gonna have the latest Movies from different cultures, So he can make a choice.
Every seat will have a brochure for the destination where he go , and he can take it with him after fligh
Many different magazines, papers and books
And will have a mic and handfree to enjoy listening the music
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The busniess class is higher than the economy class and lower than the first class
The busniess class also will divided into two kinds : Seats & Cabins both of them will enjoy with satellite internet wireless, So they can follow their busniess ,
Also the seats will enjoy with DVDs,brochures,180⁰ seats and medial level of luxury.
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we will have an economic class but not an economic class it will improve and develop class.
We will provide it with DVD screen and a comfortable seats with 180⁰ dgree to extand.
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Accirding to the current economic situation by the reason of financial crises, IATA announced that the airlines demand will have asharp decline becouse of that crises.
So we thought that we can establish .. .. ..
( Egypt Air Economy Airlines )
We will dedicate 16 planes at first to serve that new company, the first stage this company will serve the Domestic & The Middle East destinations, untill the company become 40 planes or more, after that it can the other
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Destinations in all over the world, and we will develop those old 10 planes and prepare them to be in a good shap and good services.
The new palnes of embraer 1000-190 will divided into two 3 levels :
It will have all the facilities of the luxury egypt air business class with the internet and Helium seats.
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It will be between the business class A and the economy class, but will enjoy with business facilities with internet.
Will be sheep & clean and suitable for a new economy class.
Actually we gonna use our new economy company to support the Hajj and Minor Hajj
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The food and beverage gonna divided to different levels up to every class
We will improve our food services with a better quality.
The first class will serve by the best and delegious food and beverage we can present which make the passangers will enjoy having meals.
Even the busniess & economy class will have a good quality of food and beverage and they can make a choise from a variety menus.
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Babies will enjoy travelling with us . We will divide the babies into to ages stages
• Babies between 4 to 12 years will dedicate a place to them prepared to have fun and play.
• Even they could have a kids books to read with their family, and animation movies for them.
• Babies under 4 years will set up a special seats for them to be close to their mamas,and special toys and tools for them.
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A rescue crew trained well on how to save the passangers at the dengerous situation with the rescue tools.
With the rescue crew on the plane we must have a medical care crew to make sure of our customer care and health , which will be trained well about all the hard condetions could happened.
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We designed a part of the plane to show our offering on the plane where the passanagers can make a shopping
It will began with a nerrow limitation nad if it makes a good processing , we will enlarge it to be a full shopping services.
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PRODUCT
IMPROVEMENT
PRODUCT
DEVELOPMENT
MARKET
DEVELOPMENT
PRODUCT
Differentiation
Existing Product
NewProduct
NewMarket
ExistingMarket
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P.Kotler: Watch the product life cycle,but more
important watch the market life cycle.
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Egyptair market objectives:
market share
High lowest price
price quality
leadership
high price
expensive R&D.
market positioning
Market
Leader
Quality
leader
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LE 15 occasions LE 10 LE 15
LE 10
50 150
100 105
quantity per price quantity per price
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: max. current profit& market share
: from the past.
: fixed, variable, total & average cost.
: use markup pricing method.
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Upon value: 1st,business & sleep classes
upon cost :2nd& economic classes.
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Advertising Sales Promotion PR Personal Selling Direct MarketingPrint ads Contest, games Press release Sales Presentation CatalogsBroadcast ads Lotteries Speeche Sales Meetings TelemarketingBillboards Gifts eminars Incentives EmailDisplay sign Samplin Sponsorship Trade Shows TelPackaging-outer Trade Charities FaxPackaging-insert Rebate Events Mailings Motion Pictures Coupons Co. Magazine E-shopping Brochures Low-interest-finance Lobbying Point-of-purchase-display
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Print and broadcast ads Brochures and booklets Posters and leaflets BillboardsDisplay signs Symbols and logos Internet
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Premiums and gifts
Fairs and trade shows ( Dubi )
Exhibitions
Coupons
Rebates
Low-interest financing
Entertainment
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Build image
Handle crisis
Media coverage
Authentic and credible
Wide reaching
Can be dramatic
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Sales presentations
Sales meetings
Incentive programs
Fair and trade shows
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Sales promotion
ترويج المبيعات
Personal Selling
البيــع الشخصى
Advertising
Public Relations
العالقات العامة
Introductionمرحلـة تقديم المنتج
Growthمرحلة نمو المنتج
Maturityمرحلـة النضج والتشبع
Declineمرحلة االنحدار
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AfricaAlgeria
Cot D'ivoireEritreaGhanaKenyaLibya
NigeriaSouth AfricaSudan
TanzaniaTunisiaUganda
AustralasiaAustralia
Hong KongIndiaJapanKorea
MalaysiaPakistan
PhilippinesSingapore
Taiwan
Thailand
EuropeAustriaBelgiumCyprus
DenmarkFrance
GermanyGreece
HungaryItaly
NetherlandsPolandRussiaSpain
SwedenSwitzerland
TurkeyUnited
Kingdom
Middle EastBahrain
IraqJordanKuwait
LebanonOmanQatar
Saudi ArabiaSyria
United Arab Emirates
Yemen Arab Republic
North & South
AmericaArgentina
Brazil CanadaU.S.A.
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Abu Simbel - Abu Simbel Airport
Alexandria - Alexandria International Airport
Assiut - Assiut Airport
Aswan - Daraw Airport
Cairo - Cairo International Airport Hub
Hurghada - Hurghada International Airport
Luxor - Luxor International Airport
Marsa Alam - Marsa Alam Airport
Marsa Matruh - Mersa Matruh Airport
Sharm el-Sheikh - Sharm el-Sheikh International Airport
Sharq Al-Owainat - Sharq Al-Owainat Airport (operated by EgyptAir Express)
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BCG Matrix – Growth Share Matrix
High
High
Low
Low
Relative Market Share
Problem Children
DogCash Cow
StarMarketGrowthRate
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Competitive Advantage
High
High
Low
Low
Relative Cost
Outstanding Success
Maintain Cost advantage
Hope for market growth
Maintain SpecialtyDegreeofDifferentiation
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Tendency to Buy
Undifferentiated
Well-Known
Unique
Un-known
Product Characteristics
You have it made
Sales, Advertisingand Branding are keys
Focus differentiationRequired (Product/Price)
Promotion & Sales, Distribution are key
Customer knowledge of Company
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Distribution Channel types & levels
Consumer Marketing Channels
Egypt Airlines
ConsumerEgy Air Channels
Egy Air Channels
Travel Agency
Zero Level Channel (Direct Marketing)
One Level Channel
Two Level Channel
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Company
Wholesaler
Retailer
Customer
Company
Wholesaler
Retailer
Customer
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People are the most important element of any service or experience. Services tend to be produced.
so the attitude, skills and appearance of all staff need to be first class.
Competence
Reliability
Caring Attitude.
Responsiveness.
Initiative
Problem Solving ability
Goodwill
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Training.All customer facing personnel need to be trained and developed to maintain a high quality of personal service. Training should begin as soon as the individual starts working for an organization during an induction. The induction will involve the person in the organization's culture for the first time, as well as briefing him or her on day-to-day policies and procedures. At this very early stage the training needs of the individual are identified. A training and development plan is constructed for the individual which sets out personal goals that can be linked into future appraisals
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Customer ServiceMany products, services and experiences are
supported by customer services teams. Customer services provided expertise (e.g. on the selection of financial services), technical support(e.g. offering advice on IT and software) and coordinate the customer interface (e.g. controlling service engineers, or communicating with a salesman). The disposition and attitude of such people is vitally important to a company. The way in which a complaint is handled can mean the difference between retaining or losing a customer, or improving or ruining a company's reputation. Today, customer service can be face-to-face, over the telephone or using the Internet. People tend to buy from people that they like, and so effective customer service is vital. Customer services can add value by offering customers technical support and expertise and advice.
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Decision to make trip
Check inBages, seats, passport
Select carrier
Passport control
Make reservations
Wait for flight
pay
Process to gate
Documentation
Board to gate
Conirmation
Board aircraft
Travel to airport
Stow hand baggage
Site down
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Fasren seat belt
Safety demonstration
Basic inflight amenities:
-Audio/Video-Seats
-Pillows,blankets-Toilets Shopping
Transfer activitiesInformational
announcements
Inflight diversions:-Newspapers
-Games for kids-Food
-Movies-Audio
-Medical help-physical exercise
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Land
Transit stop airport
Take off again
Arrive at destination
Disembark Book next flight
Leave Airport
Customs
Bag retrieval
Immigration
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Booking offices
Paper work
Barnd logo
Tickets
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Air craft
Seats
Good inner , exteriors
Cleanliness
Uniforms
Ambience
Baggage
Labels or tag
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A Difference is worth establishing to the extent that it satisfies the following criteria:
Important
Distinctive
Superior
Communicable
Preemptive
Affordable
Profitable
Highly valued benefit to buyers
The difference isn’t offered by others or the company offer it in a more distinctive way
Superior to other ways of obtaining such benefit
Visible to buyers
Difference cannot be easily copied to competitors
Buyer can afford to pay the difference
The company will find it profitable to introduce the difference
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Product
• Features Characteristics that supplement the product’s basic function
• Performance QualityThe level at which the product’s primary characteristics operates
• Conformance QualityDegree to which produced units are identical & meet promised specs
Service
• Customer trainingTraining customer employees
Tools for competitive Differentiation
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Tools for competitive Differentiation
Personnel
• Competence Required skill & knowledge
CourtesyFriendly respectable & considerate(they know how)
• CredibilityTrustworthy(No broken promise)
ResponsivenessRespond quickly to request & problems
Communication
Channel
• Coverage
• Performance(star – public)
Image
• Identity Vs ImageIdentity is the ways that the company aims to identify itself or position its product.Image is how the public perceives the company or its products
• SymbolsTriggers company or brand recognition (Brand Logos)
• Written & audiovisual MediaConvey a storyline or mood or a performance level
• AtmospherePhysical space in which the company produces or delivers its products
• EventsThe company could build an identity through the type of event it sponsors
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