nick cooper, landor
TRANSCRIPT
Nick CooperExecutive Director, Head of Insights & Analytics, EMEA
12 May 2016
THE RISING IMPORTANCE OF BRAND IN
TRAVEL & TOURISM MARKETS
Agenda
Section 1: Context for brand
Section 2: Industry consolidation
Section 3: Implications for brand
Section 4: Brand experience
Section 5: Implications for consumer insights
It’s all getting much more competitive out there
SECTION 1 - Context for brand:
Travel & Tourism – Context for brand
A critical industry, directly and indirectly accounting for 9.5% of global GDP (source: WTTC)
Traditionally driven by operational excellence and financial disciplines:• Seasonality• Thin margins• Commoditised offer
Branding an afterthought, not a central driver of the business.
Travel & Tourism – Context for brand
Today, the industry is undergoing rapid change:
Consumers have more options than ever
Consumers are better informed than ever
Continuous disruption
Implications
You have to fight for your right to be noticed
TOM is more critical than ever
Communications are bigger and faster than ever; they can work for you or against you…
SECTION 2 – Industry Consolidation:
Airlines
Hotels & Tour Operators
Rapid pace of consolidation
UnitedContinental
US AirwaysAmerican
DeltaNorthwest
LufthansaAustrianSwissGermanwings
Air FranceKLM
British AirwaysIberianVuelingBritish MidlandAer Lingus
AIRLINES:
Rapid pace of consolidation
MarriottStarwood
AccorFRHI Holdings
FosunClub Med
“hospitality mega-merger”
ExpediaTravelocity
EQTKuoni
TUI AGTUI Travel plc
HOTELS & TOUR OPERATORS:
Implications
You have to be clear about what you stand for
Scale creates greater ability than ever to invest in marketing and building brands
You have to make decisions about which brand to back
Choosing your best brand bets
United and Continental chose…
Delta and Northwest chose…
US Airways and American chose…
SECTION 3 – Implications for brand:
Why bother with brand?
…Because if you don’t someone else will!
So how can brand help?
Brand builds equity across four key metrics:
Differentiation
Relevance
EsteemKnowledge
Drives price premium and recommendation
Drives trial, consideration, and market penetration
Drives customer loyalty
Drives understanding of a brand
Source: BAV
So how can brand help?
There has to be a compelling reason for consumers to choose you…differentiation is often the foundation, leading to notoriety or status
Branding is no longer about defaults or purely practical benefits.…you have to build your own brand story, although it is increasingly
possible to project this
Brand is becoming a huge lever for success...and you will go backwards unless you use it fully
BRAND STORY
St Mary’s Axe The Walkie Talkie Heron Tower
St Mary Axe
The Leadenhall Building20 Fenchurch Street
“How was your trip to the City of London?”
Err…
St Mary’s Axe The Walkie Talkie Heron Tower
The Gherkin
The Cheese GraterThe Walkie Talkie
“How was your trip to the city of London?”
Well…
St Mary’s Axe The Walkie Talkie Heron Tower
The Gherkin The Cheese GraterThe Walkie Talkie The Shard
SOME BRANDING PRINCIPLES:
Provenance:It may be right or wrongBut it is unavoidable…
Provenance:… so distill the good parts from the bad and leverage them to create advantage
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Authentic truth:Ensure the basis of the brand is credible, authentic, true and…
Authentic truth:Ensure the basis of the brand is credible, authentic, true and…magnetic and desirable
Amplify:Identify valuable, desirable, differentiated assets…
Amplify:… assets that combine ownable ideas with those elements of provenance that you have selected
SECTION 4 - Brand Experience:
If you want to change
perceptions, change
reality.
In Travel & Tourism, changes in perception usually happen only gradually
This is because brands in these sectors are especially influenced by provenance.
Which can hold you back or… propel you forwards
But it is possible to accelerate
AuthenticCharming
Arrogant Uncaring
UnreliableNot trustworthy
Not innovativeNot dynamic
Emerging attributes
Approachable
Trendy
Progressive
Energetic
Trustworthy
After the 2012 Olympics
Source: BAV, France, October 2012
Traditional attributes
Before the 2012 Olympics
BRAND STORY
A STORY OF TRANSFORMATION
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We are remarkable…
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PLACEHOLDER FOR VIDEO
SECTION 5 – Implications for consumer insights:
What do we need to
discover?
Every brand idea is based on an authentic truth…
… or you will be found out. 1
Create desire and magnetism…
… if not why would anyone want it? 2“Build it and they will come”
Leverage positive provenance…
… as a hyperlink to building the perceptions you want. 3
Create a sense of belonging so that there is a human relationship…
… “it’s mine and I know how to experience it.” 4
Take advantage of the speed generation…
… what used to take decades now takes years…
... what used to take years now takes months. 5
Insights becomes a key driver of the brand and therefore the business
Authentic truth
Desire & magnetism Speed
Positive provenance
1 Belonging
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THANK YOU