Interpreting and Assessing the Mechanisms of an Award-winning Campaign - Essay Example

? Interpreting and assessing the mechanisms of an award-winning campaign BY YOU YOUR SCHOOL INFO HERE HERE Interpreting and assessing the mechanisms of an award-winning campaign 1. Introduction From 1998 until 2004, Travelocity was a struggling hospitality and travel brand maintaining limited sales success and brand recognition in most market segments. Some of the problems with establishing a solid brand identity included limited Internet usage in most consumer market segments (Hall and Nairn 2005), which was a product of the current stage of global technological revolution in the late 1990s. The company was also operating in highly competitive markets with more well-established brands such as Expedia, Opodo and Last Minute which had significant brand personality established and brand attachment/loyalty with existing markets. During this period from 1998 to 2004, Travelocity was having difficulty with establishing competitive differentiation and building a voice through integrated communications for competitive advantage. However, after 2004, Travelocity determined it was necessary to launch a new advertising campaign designed to give the company a better brand personality and establish brand recognition with profitable target market segments. After identifying competitive gaps in meeting the needs of the high volume 24-35 year old market, Travelocity finally established its competitive position in the travel industry. This report interprets and assesses the mechanisms that have driven this campaign, referencing marketing theory, psycho-social understandings of consumer culture, and how Travelocity has managed to establish positive cognitive and emotional connections with target customers in its award-winning campaign from 2004. 2. Market research leading to explicit knowledge in externalities Travelocity conducted significant market research and competitive analyses to determine how best to differentiate the business. Qualitative and quantitative research was targeted at mass market consumers to determine the level of spontaneous brand recognition that existed among competitive brands (Hall and Nairn, 2005). Survey analyses also indicated that many consumers had never even visited the Travelocity website and that many consumers did not believe Travelocity was differentiated positively against competing travel brands. This market research effort was the primary catalyst for problem recognition: The business needed a voice, needed brand recognition, and a strategy to position the brand effectively against competition. This market research effort, a well-invested activity, also identified the most appropriate target market (24-35 year old “novice” travellers) to give the company its first real sense of direction in promotion. 3. Why the 24 to 35-year-old buyer? The proactive market research activities allowed the business to examine competition with a critical and exploratory lens. It identified that the broadest segment of buyers, those who view travel websites and primarily between 24 and 35, were being overlooked by other travel brands (Hall and Nairn 2005). Other markets that consisted of frequent travellers maintained characteristics and attitudes that would have made Travelocity have to invest more capital and human capital into trying to attract and then subsequently retain these buyers, since they were more knowledgeable and discriminating about travel (Hall and Nairn 2005). According to Cui and Choudray (2002), a target market is most desirable when competition is in a weak position to respond to consumer needs and when the demographic maintains adequate resources. Additionally, the market is attractive when the brand has the ability to match a certain segment’s needs and requirements (Cui and Choudray 2002). Travelocity realised that lack of competitive emphasis in the 24 to 35-year-old market and their available financial resources could give the business a chance to differentiate and capture this market’s attention. According to Macrae (2011, p.2), this particular age group faces what is referred to as a quarter-life crisis: an emotional phenomenon where the young adult grows discontented with a “mediocre, ploddy and conventional lifestyle”, looking for more freedom and exploration of their youth. Travelocity, by its very design and function, maintained the ability to meet these needs of the youth buyer if they could create a psychological and lifestyle-based connection. Furthermore, a study conducted by Viacom Brand Solutions International identified that the 24 to 34 year old market looks toward “understated” brands as a means to affirm their identities (Executive Digest 2008, p.1). Based on these consumer characteristics, Travelocity realised it was equipped to make a significant values-based and lifestyles-based connection by using a heavy investment in promotion to attain market interest and build rapid brand recognition. Travelocity recruited a well-known celebrity in the UK, Alan Whicker, with considerable positive reputation and history with many markets domestically. Whicker was well-known for his in-depth interviews with international celebrities and political leaders, thus giving him more credibility as a world-traveller and a knowledge source. According to The Guardian: “He is a major TV star... (and) he has been a part of their upbringing...with the charm of a bygone age," People would open up for him. That's what he did for factual television” (Guardian.co.uk 2008, p.2). According to researchers, celebrity endorsers are considered credible when they maintain three specific characteristics, these are attractiveness, expertise and trustworthiness (Ohanian, 1990; Pornpitakpan, 2003), something well-established in British culture as it related to Whicker and his viability. Though Travelocity was concerned that Whicker might be too old to be a spokesperson, the majority of the target market customers were well-familiar with this endorser and already maintained trust in his ability to represent a company’s interests. Using well-known Alan Whicker was a wise and highly strategic endorsement plan that linked celebrity and credibility with the Travelocity brand concept. What this promotion accomplished, finally, was to give the brand a voice and establish its first real brand image that was relevant to the target market identified through research. 4. The integrated marketing successes Travelocity launched an integrated marketing communications strategy designed to penetrate the market with multi-media images associated with the brand. This included television, radio, billboards, print, and guerrilla marketing (Hill and Nairn 2005). The IMC promotion was well-directed at travel hotspots, such as airports and subways, therefore exposing many different mass market consumers. Print and television advertising consisted of target market-specific, youth-based advertisements to gain the attention of the 24 to 35-year-old markets, thus building a personality that was closely linked to consumer lifestyles, values and emotional needs related to travel purchasing. It was a well-coordinated IMC program that brought instant results for brand recognition and vastly improved the sales revenues by the end of 2004 as well as Travelocity website views by many different market segments. Integrating the campaign strategy to include multi-media finally differentiated the brand against competition by building a personality and attitude for the brand and its mission. 5. Why the integrated campaign was successful The campaign was highly successful as it finally established a recognizable brand for Travelocity, one that customers could find value with and also could be distinguished against competitive logos and brand concepts. “Branding is a core marketing practice that emphasises the continuity and connectedness of the firm with its external environment. Through branding, firms of different sizes are able to create, nurture and innovate their market-based assets. By creating market-based assets perceivable by the consumer, firms are able to nurture perceived brand value and consumer brand equity” (Abimbola 2001, p.101). In reference to the branding definition and its implications for businesses as provided by Abimbola (2001), the business now had a foundation for nurturing relationships with its target consumers and thus establish its purpose, values and ability to fill emotional and tangible needs of desired consumers. Prior to building brand recognition, the firm had no medium by which to exploit its market-based assets or provide a value proposition. The IMC also provided a catalyst for creating the type of brand personality that Travelocity wanted to maintain to nurture their new consumer attractions to the brand. Brand personality is the concept of transcending the physical product and service dimensions (tangibles) and to establish intangible human traits and attitudes to the brand. These included sincerity, excitement, sophistication and competence, all of which are necessary to transcend the boundaries of tangible service provision (Aaker 2006). Use of Alan Whicker provided sophistication and competence, whilst print advertisements built excitement through lifestyles-based conceptions and sincerity by reinforcing a consistent price/value and values-based message campaign. Consistently in Travelocity advertising assisted in building its own, well-positioned personality focused on quality. 6. Statistical success measures at Travelocity It is not just the emotions-based attributes of brand development that assisted Travelocity in establishing more sales revenue and customer spontaneous brand recall and recognition. It was the methodologies conducted by the firm that continued to give it significantly-important market information. Tangible metrics right off the website, using their internal information technologies, clearly indicated spikes in sales that occurred immediately after launching the integrated promotional campaign. Statistical variations in sales and visitor data provided for a rapid acknowledgement of the return on promotional investment that allowed the business to continue this campaign through to the end of 2004. The company was making logical capital investment decisions based on hard, statistical information about customers and profit so that no financial investments went unrecognised. These quantitative assessments of return on investment also indicated that it would be necessary to establish brand loyalty if Travelocity wanted to retain their target customers. Return purchasers were much lower, which influenced the development of an entire customer relationship management package (Hill and Nairn 2005). Again, Travelocity was making competent, logical and strategic-minded decisions about carrying on with the ?6.4 million investment well into 2005. The company made such award-winning decisions based on practical, real-world corporate data that justified more than just consumer sentiment and increased emotionally-based interest in this brand. 7. The successes of movement marketing The legitimate key to building brand loyalty is the ability to perform movement marketing. In this marketing theory, “You have to stop telling people about what your company makes and instead think about what you believe in. What you believe in has to touch a nerve with your target market” (Goodson 2011, p.2). Movement marketing slips away from traditional sales-based marketing and begins a sharing relationship with consumers. It was clear through the use of Whicker for endorsement that the business believed in sophistication, expertise and competence, thus giving the business a position on the market related to quality. By using youth actors in print advertising, as illustrated in the Travelocity case study, the proverbial nerve was touched in relation to youth buyer values for excitement in lifestyle that made positive emotional connections. Movement marketing for Travelocity contributed to its appeal without over-emphasizing its tangible services that are largely unique among competing travel brands. The focus of this marketing campaign allowed the business to build a brand without relying service dimensions or over-emphasis on pricing, which is only somewhat competitive for Travelocity compared to other more well-established competitors (Hill and Nairn 2005). The executive leadership at Travelocity also acknowledges pricing disparities that are justified by its current operational model that should not be highlighted to consumers. Negating pricing as a positioning tool brought this travel firm much more success in brand establishment. 8. Establishing brand attachment, not just recognition The executive leadership at Travelocity indicates that they are keeping some loyal customers (Hill and Nairn 2005), though some work needs to be done on loyalty-building. Before the firm can establish brand loyalty, it must first determine how to create brand attachments with its target consumers. Buyers that are attached to a brand will evolve to a point where they are willing to share resources with the services, such as social investments that will defend the brand against peer or media criticism (Aron, et al. 1992). Attachment also leads to higher investment in participating in brand communities, such as discussion forums in social media to help promote the brand (Muniz and O’Guinn 2001). This is evident in the case study acknowledgements of Travelocity’s “genius”, “smart and funny” and “memorable and engaging” brand and campaign concepts (Hill and Nairn 2005). Various creatives, business advertisers and travel marketers giving significantly-positive commentaries only provides more solid evidence of quality and trust, which in turn serves to influence customers about its position on the market as a quality travel organisation with its own unique and socially relevant attitude and value system. 9. Why intangible market connections matter to this campaign It was identified previously by Macrae (2011) that the 24 to 35-year-old markets have complex attitudes about lifestyle and their place in society that can impact self-esteem and self-evaluation outcomes. Travelocity must have recognised these consumer characteristics in its target markets to assist in promotional content. Macrae (2011) offered that markets in this age bracket are looking for new freedoms and an ability to improve the excitement and monotony in their current lifestyles. According to Greenwald, et al. (2002, p.4), “When the brand offers resources in the service of self-expansion, consumers will develop strong connections”. Based strictly on the service concept at Travelocity, it is well-positioned to provide these self-expansions through travel service delivery. However, by adding humour and reputational actors to its promotional philosophy, it is filling much more than tangible service needs, but establishing, for some, a permanent place in the minds of this market as compared to self-evaluations about the brand. The intangibles in Travelocity’s integrated communications strategy and promotions are linked directly with values and emotionally-charged needs of the consumer audience. This particular market is very technology-savvy and tend to use the Internet on a regular basis for their purchasing or social needs (Hill and Nairn 2005). Lifestyle connections are not only created by providing promotional content aimed at attitude and values, but also through the technological service delivery components most closely linked with tangible lifestyle and the tools used by markets to achieve their lifestyle goals and ambitions. Thus, it should be said that the service model and the intangible connections with customers are what give Travelocity more clout with its target audience that continues to improve profit and sales growth. 10. Travelocity and the promotion of attitude change The notion that the business genuinely understands its market characteristics is evident in its catch phrase, “The Inspirational Travel Experts” (Hill and Nairn 2005). The term inspiration is relevant to all of the aforementioned market characteristics of the 24 to 35-year-old market segment, which makes up the majority of all potential segments for targeting. Attitude change is prompted by giving the business a well-established competitive brand personality and then linking consumer goals and attitudes with the publicized corporate values that drive internal service concept, service offerings, and organisational culture. Further, by publicising Travelocity’s successes, it illustrates that the business genuinely wants to be recognised and establish relationships with customers and thereby builds consumer trust and positive brand sentiment. Trust is defined as a “willingness to be vulnerable” (Mayer, et al. 1995, p.712). This is something that Travelocity does by describing its failures and challenges with customers and its intentions to improve CRM and other brand-related components for better customer satisfaction and connection with Travelocity. This vulnerability is what also creates brand trust which can, in many cases, create brand equity for service variations or long-term loyalty against other travel companies. The figure below illustrates how brand recognition and brand discrimination occurs as a result of internal and external forces. Figure 1: Brand Recognition impacted by Brand Expression, Consumer Perception, and the External Environment. Source: http://www.beyond-branding.com/Globalin.pdf (2003). “The Brand Environment” As is clearly illustrated by Figure 1, the ability to establish brand recognition is directly correlated with the brand messages being delivered with an emphasis on target customer cultural conventions and perceptions of how the brand can meet the tangible needs of customers. Brand recognition occurs when customers find personal connection with lifestyle. Culture relevance to the novice, a rather youthful customer segment for Travelocity, is how they discern the brand from other competition as it relates to psycho-social attributes in the target market. Attitudes are influenced by many internally-driven and externally-driven factors, as shown by Figure 1, and Travelocity seems to understand all of these dimensions when constructing messages for target market delivery. 11. Conclusion The successes of Travelocity’s award-winning integrated marketing campaign have been clearly indicated. They include the creation of brand personality, improving spontaneous brand recall and recognition with customers, and taking a rather holistic viewpoint of the organization and its service dimensions to determine how best to change or build consumer attitudes about the brand. In a highly competitive environment, it is often difficult to differentiate or determine the dimensions of focus for positioning in order to create a unique and interesting brand concept. In this case, Travelocity considered all externalities that impact its previously-poor competitive position as well as internal factors that would impact growth in the travel sector. This company deserves all of the accolades it has received for its rapid turnaround through marketing. References Aaker, D.A. (1996), Measuring brand equity across products and markets, Management Review, 38(2), pp.102-120. Abimbola, T. (2001), Branding as a competitive strategy for demand management in SMEs, 3(2), pp.97-106. 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