Foreign business traveller will be the target(1094 words)

Published: 7/16/2001

1094 It appears that Aeroflot may be finally addressing the branding of its business both with the reports that it will employ the London based Indentica, a brand consultancy that describe itself as “a creative insights business, with a commitment to making things happen”. The agency already has experience of the Russian market through work on vodka brands and was recently employed to develop a premium export vodka brand for the Russian state alcohol agency Rosspirtprom. Indentica would not confirm its employment by the Russian flag carrier, but if it has won the contract, it will undoubtedly have a challenging task in demolishing some of the very negative perceptions of the airline. Currently keeping lucrative business travellers, both foreign and Russian, flying with foreign carriers in and out of Moscow. For Aeroflot however, the view of the airline as it currently manifests itself, is largely unfair and historical, ignoring the significant changes at the carrier over the last few years. Even the cabin crew previously dour in the extreme, are now briefed to smile at the passengers. Service on board although not top notch, has certainly improved, as have the aircraft. The rather shabby remnants of the Russian built long haul fleet are now largely consigned to domestic routes by noise regulations or the simple expression of desire by Russian passengers to fly Western aircraft over the domestic product. Even the dowdy terminals of Shermeteyevo will soon be a thing of the past with the opening of the third terminal in 2003. Identica will also have to combat the marketing of the airline over the last few years that could only be described at best as rudimentary and incomprehensible at its worst. A situation ably demonstrated by the airline's use of the device of a flying elephant for the airline's advertising in the late nineties without any real understanding the multiple connotations of such an image or evident reason for the choice. The airline is also dogged by the continuing safety fears of the airline, often ill founded and always ill informed, and this will be a key priority to be addressed to varying degrees among the airline's two primary audiences the domestic traveller and the international business traveller. Within the first category you can add the budget travellers both domestic and foreign, and the passengers from the Indian sub continent that find the transit through Moscow a cheap option. They invariably travel by the airline because it is cheap! A better branding may make them feel better about the choice, but their choice is primarily driven by price. For them the airline's safety record is important, but not paramount. The concern on the safety record is largely the domain of the seasoned business traveller. He or she and it is largely he, is concerned about safety and despite the statistical evidence that shows Russian airline's to be no more dangerous than any major carriers in Europe or the US, and in some cases safer. He continues to be driven by stories such as the tragic accident a few years ago involving an Aeroflot Airbus, when it appeared the pilot has handed control of the plane to his young son. The fact that this was a one off is irrelevant in terms of perception and the event is implanted in the popular consciousness and continues to present a barrier to Aeroflot use. An added challenge when the fear of the airline has become institutionalised. With certain major organisations both private and public specifically forbidding passage on Aeroflot because of the perception of risk. For the airline's predominantly Russian customers, the risks of air travel are taken in their stride and on a relative basis, many feel that Aeroflot is a step up from the more basic regional carriers. Aeroflot will continue to get these customers at least on scheduled flights for the time being, competitors however, are beginning to emerge and they are potentially threatening the Aeroflot share. Siberia Airlines (Sibir) is lobbying hard for scheduled routes to London, on top of connections to Frankfurt and could pose a serious threat. Less concerned about the number of western aircraft in the fleet, but focussing on the more basic elements of good service, such as clean toilets, Sibir has moved from an obscure regional carrier to a major national player, with Aeroflot one way or other firmly within its sights. The need to differentiate the carrier from the fast improving competition is therefore a growing challenge for the lower end of the market as well as the top, although the business traveller remains the airline's primary target. In the business traveller segment, the principle task is giving the airline sufficient profile and reputation to keep those Russian business customers that they currently have and not let them migrate to other carriers as the availability of funds allows them to take the foreign option as a natural progression. To prevent this Aeroflot has to continue embracing the concept of international business travel playing the national flag. While sufficiently lifting the perception of reliability, quality and service to meet its current reality and woo those foreign business travellers who currently believe that the airline is a second-class option, if not a third-class option, into its aircraft. Aeroflot and its advisors appear to have already realised that value for money is simply not enough to sell the airline to prospective passengers and that the focus of marketing has to be the business traveller, but change although accelerated over the last couple of years, can be a slow process at the airline. The airline will therefore have to be careful to find the balance between the marketing positioning and the delivery of a consistent and improving service. The involvement of Indentica, has the hall marks of the ongoing changes initiated by McKinsey, to restructure the airline into what is effectively a super regional carrier focussed on its core market in Russia and the CIS, and integrated into a global alliance with Delta and Air France. That repositioning is underway and the examination of the airline's positioning suggests that the management recognises its weaknesses and are looking for solutions. No small development for an airline that four years ago was not noted for its circumspection.The big question will be however, does Aeroflot carry too much baggage of the past and the current Russian air transport system. Could the solution be the dropping of the Aeroflot name in favour of new title and brand image? It will be interesting to see what Identica comes up with…if they get the contract of course.

Article ID: 2648