Strategic Planning for Digital Marketing Communications - Saudi Arabia Airlines - Essay Example

?INTRODUCTION: SAUDI ARABIA AIRLINES (SV) Saudi Airlines (SV) since its establishment in the year 1945 has a d aim to be one of the best airlines in the world with slogan “" To enhance the reputation of SV and improve its image within the Kingdom and abroad” (Saudi Airlines c, 2012). The airline began journey with single twin engine aircraft and with objective to become one of the best airlines of the world currently holding 102 aircrafts fleet (Saudi Airlines a, 2012). Along with Airline service, it provides auxiliary ground services to its own, other domestic and international airlines. SV has expanded footings catering section for airlines (Saudi Airlines a, 2012). SV has partnered with Sky team Alliance; a group of 18 international Airlines to provide more flexibility, convenience and choices to customer of member alliances (Saudi Airlines b, 2012). SECTION 1: CHALLENGES AND OBJECTIVES Section 1a: “General” marketing communications challenges ISSUES CHALLENGES 1 Global business is moving around the slogan of “Be Global – Act Local” (Amey, 2012). Globalization &Localization on increasing destination as well as service. 2 Tightening of policies, increasing taxes resulting in job losses; counts up to 1.6 mn in UK in 2010 the trend continues till date (The Economic Times, 2012), US waiting for sustained pick up in consumption, Top ten areas of change in consumer spending worldwide are aimed to be financially considerate (Delotte, 2011). Adopting product marketing that persistently stands business product to be best value for money spent. 3 Spending moved from bricks to clicks and now on to mobile. 52% of US consumers using mobile for purchases overall with more than 20% of air-tickets are purchased through mobile. Availability and adaptability with most digital mediums. 4 51 % rely on online shopping for product search and evaluation. In 2012, 167 million people shopped online with average amount of $1800. Sufficient information with easy purchase option to attract customer base. Accelerated pace of globalization with media in general and social media in specific Performance is open is for anyone and everyone for evaluation; more importantly beyond managements control. Priority challenges and risks: Globalization expansion in China (Amey, 2012). Increased accessibility: increased communication through interactive mobile. Huge risks are associated as increasing pace of digital has not been adopted with similar pace. Currently flight passengers’ account in 58% of Saudis, 22% of Arab and while70% is guest travelers. Consistent travelers are less (for instance, seasonal travelers in holy months). Travelers’ consideration of SV as best value for money can be ranked medium as it ranks n 6th among the top 10 economy class (Sky Trax, 2012) but mainly accounts for the guest. Focusing mainly on guests and not growing business class is risk. Digital connectivity for flight bookings only (Clear Trip, 2012). Industry challenges ISSUES CHALLENGES 1 Post 9/11Security issues. Redeveloping travelers trust along with strong force than 9/11 updates on various mediums. 2 Fuel prices and economic uncertainty increasing continuously shrinking profits. IATA project Airline profit $ 3.0 Bn. Maintaining effective flights schedule and promptly passing on updated information to customer at easiest disposal 3 Deregulation/privatization of airlines; advertising fare regulation (Zacks Equity Research, 2012) Retaining customer along with detailing price component of tax in advertisement 4 Blocks or strategic alliances to maintain Selection of marketing tactic to exploit benefits of alliances and possible issues. Priority challenges & risk 1. SV developed alliance with Sky team gained the benefits cost saving, flexibility etc but not marketed other than press releases updates on member websites (Sky Team, 2012). 2. For increasing efficiency its flight program Al- Fursan has been developed. This program has been provided with internet based marketing as present on the airline’s website; however, digital marketing aspect of communication does not appear to be adopted other than on board flight entertainment. SV Challenges ISSUES CHALLENGES 1 Many frequent flyers moved to other more competitive airlines such as Emirates Developed more frequent communication and extensive scale programs to catch level of competitor (Emirates). Emirates capturing air travelers with marketing communication programs such as Hello Tomorrow 2 Lacks communication strategy to promote its programs such Al- Fursan. Many existing members of program were actually not aware of being part of Al- Fursan Strong input from both service sides as well as marketing to reinforcing in customer books as Al- Fursan being SA flying program other than Saudi Aerobatic Team 3 Competitors were high above in ranking on success yard stick of digital communications. Clear identification of strategies to achieve earliest results. For instances, Services of Avaya in maintaining its call centre communication (27); offered response to in-bound calls only. Setting more adaptable goals and achieving it results along with capacity to respond and handle the level of transparency these mediums bring with them (such as Social media). 4 With increased destination meeting challenge of communicating with cultural adaptability . Designing marketing communication that increases its acceptability without marketing services that are prohibited from religious perspectives; as SA is religion based country. To meet the communication barrier SA has initiated loyalty program with ICLP that provide services to increase awareness about its programs especially Al- Fursan. Its development and expansion is satisfactory as ranked among top 5 regional airlines in 2011, but not communicating these facts are very much prone to lose competitive advantage to competitors like Emirates who has been playing highly aggressive in all domains (IATA, 2012). Section 1b: “Objectives” Challenge posed to SA is mainly related to lagging behind on communicating its strengthened muscles and capacity to its customers. For instance, SA didn’t under any campaign promoting its alliance with Sky Team. Moreover, on industrial levels it is lacking on promoting the successful counterfeiting of challenges posed by financial crises. Lastly, though attained the position of being among top 5 regional airlines, it had done nothing to en-cash this growing capacity. Only development on this front has been collaboration with ICLP. Hence, the leading and broad objective for SA is to develop comprehensive program for communicating and developing accessible relation with its customers. Therefore, these can be regarded as its objective for the year to come: Enhancing exiting and new customers’ awareness about SA and mainly Al- Fursan. Increasing interactive communication (mainly with social mediums) to and increase interaction rate by 25% by year end. Increasing blogging and traveler review on website mainly on review websites (taking ranking to minimum 3 stars). Developing brand image with linking it with customer priority. Conduct campaign initially with existing frequent traveler Reward point linked feedback system to take immediate response related to campaign (quarterly) Using SEO, increasing website ranking by 5% each quarter. Increasing promotional campaigns by 10% for enforcing traveler’s value for Airline (using recent researches from business consultation groups) Increasing more automated program for e-ticket buying with easy payment transfer from ATM. Along with this collaboration increasing advertisement on ATMS, electronic hoardings etc. Increasing language and country option of China on website by first quarter. SECTION 2: TECHNIQUES AND REQUIREMENTS Section 2a: “Critique of existing communications approaches” 1. WEBSITE SV’s website has almost all information related to whatever it has achieved so far but the website done not seem to influencing explorer to stay. Specifically as compare to the websites of competitors that compel to explore. Large number of tabs provide information related to its services; but lacks interactive protocol. Here is list of the three benefits that SV is fetching from website: Online booking service that is also supported by tutorial for new customer and payment option available from credit card. Online log- in option for its club members- Al. Fursan 3 different languages and country specific portal. This website has following weaknesses: Extensively loaded website with all on one page. SV is among the leading Airlines but manages just single club. As discussed in ICLP partnership, ICPL had to collect the data for analysis; which means that SV website is not maintaining any data base related to its users. Though Al – Fursan has log in portal but it does not appear to be highly utilized as analysis of ICLP has referred that customers who were already enrolled in the program had no clues about it they got enrollment from travel agency. This refers that most of the members do not visit SA website. SA does not provide any clues of their existence in social media. Unlike even the smallest business generate their awareness by forceful liking of their page on social media such Face book etc. 2. SOCIAL MEDIA Saudi Arabia Airline’s official page cannot be located on face book. Pages landed with search of Saudi Arabia Airline appeared to unofficial attempts from fans. These pages also cannot fetch some sizable traffic. This refers to biggest lacking from SA management on negligence related to the importance of social media. 3. SEARCH ENGINE OPTIMIZATION This option of increasing the brand awareness has also been avoided by SA. None attempt to find content related to SA went successful. Only SV website and recent joining of Sky Team can be traced in press releases. SEO are the most easy, cost effective measure to integrate awareness through awareness. However, SV has not conducted in this domain as well. 4. ON GROUND SERVICES Integrated communication technology has been adopted at Airports in Saudi Kingdom where self service kiosk can be utilized to get the boarding pass 24 hours before the flights. This relieves customers from standing in long queues at airports. This investment is shall be accounted for the customers who have already availed services of SV. Moreover, no information is available related to success of this Kiosk. 5. INFLIGHT SERVICES Considerable investment is made to provide entertain to the in-flight customers. It has facilitated separate channels, movies for various target customers even separate channel for their kids. 6. INTRA-S TAFF COMMUNICATION SV has developed an intra net for communication among employees. This enables all the record keeping of all decision made through the email based consent for approval or disapproval within staff. Section 2b: “Proposal” Aim of SV to increase digital marketing communication requires extensive plan to increase awareness about SV and mainly its Al-Fursan program. Currently its only domain is in-flight captive marketing; therefore; it is proposed that following options shall be worked out within this year; since firms has sound financial muscles it doesn’t not have strict resource limitation: Social Media Marketing Importance of social media requires no emphasis each link is connection to millions of people (Brenner, 2012). (a) Facebook campaign shall be developed and heavy promotion related to services of SV and interactive view and event sharing, contest, polls etc. It requires team of professional who remain connected to respond customer; increases engagement at social pages. (b) Twitter focusing more on one to interaction and enhancing corporate values. Posts from public figures will support endorsement. (c) Blogging and Community building where customers can post their views directly and indirectly related to aviation industry; their service and improvement suggestions etc. Blogging can be pursued with paid content with reputed journalist/ analyst sharing their view of travelling from SV. (d) You-tube channel specific to SV to enhance the brand awareness using video content to spread the glimpse of quality offered. Initially activating FB and Twitter would provide insight about the quality and quantity of response following which it can pursue other options of blogging and video. Improving Website Website requires review. For instance, it has only provided feedback form for Hotel reservation services. However, no testimonials have been provided about customer feedback. Such additions are necessary to retain even those customers who just visit the portal and leave with confusion about the quality of services. Moreover, increasing language option for China being the business hub of today’s world would also support is physical footings in China. SEO Marketing Increase SEO to increase its internet searches being the very cost effective way of increasing traffic to website. Since air travelling is not everyday meal for every next person; therefore, increasing traffic requires connecting people with lot many thing and transforming casual reader about one’s website to dedicated reader of updates and so potential customers. IMPROVING MOBILE CONNECTIVITY Provision of flight booking for most frequent flyer would also increase its connectivity with the customer. It can be done in a similar way of banks’ TPIN based service. Mobile connectivity has already taken the lead and is expected to increase in multiples in coming years therefore innovative attempt to maintain connectivity would also increase traffic to website for payment or such formalities. This would also provide data base related to travelling frequency and services priorities of customers. ATM BASED TICKED ISSUANCE ATM based connectivity also carries wide opportunities. Saudi Arabia has extensive ATM network, partnering with few banks (on initial level based on the stats related to top 3 banks with account of SV flyer) to develop program for booking ticked directly from ATM, get paid immediately would increase their connectivity to great extent. Section 2c: “Critical Success Factors” SOCIAL MEDIA Organizations are still learning about the best usage of social media. Jumping inn into the domain without strategizing can land firm into disaster. Developing department with cross functional members to maintain these activities only under the management of marketing communication expert (hire if required). First and foremost would be to train employees to facilitate the social website with respect to developments in their department. For instance, cabin crew updating status about the certain positive comments from flyer by tagging customer also would increase its traffic and this shall be considered core addition to the job responsibilities. It’s critical to develop the sense of belongingness within employees. Moreover, well thought and researched content, themes, contest, polls shall be posted; keeping under consideration that these are open forums and small mistake can spark the issue. Also facilitating other service providers such travel agency to contribute. SEO Since SV has main objective is to increase digital marketing; it requires increasing it search engine optimization efforts extensively. Increasing SEO rating would increase its digital visibility on net similar to competitors who rank neighboring in services (World Airlines Awards, 2012). MOBILE CONNECTIVITY Increasing Mobile connectivity would be leading success factor. It would bring travelling service details on the palm of customer, increasing convenience to great extent. Set protocols (such as TPIN based) would keep the security risk to minimum. ATM BASED SERVICES ATM based services would also contribute landmark in the marketing services of the SV. Provision of ticket and payment with reduced efforts input would attract large number of travelers. It would also attract travelers to get direct with airline who are unaware of internet based services and are dependent on travelling agency that increases cost. Introduction of such services, however, requires to be tested on technical and other yardsticks. Launch requires well designed software and hence shall be consult some agency with expertise to ensure flawless services. Alliance with banks for these services would increase its alliance portfolios; increasing synergies; also attracting customers who are banks client but has not been on SV platform. These critical success factors can play significant role in increasing loyalty as well attracting new customers to SV. Quality of services can be confidently assumed to be best that led it on the position of among leading Airlines mainly in Middle East. However, like other leaders such as Eitehad, Emirates and Qatar Airways those have worked on developing their digital marketing to increase awareness (Haq, 2010), SV has done least. It can be confidently assumed best quality will support marketing communication efforts; if well planned. Section 2d: “Key Performance Indicators” On a broader scope, SV’s only objective is to increase its marketing communication with existing customers and attract the newer base. Success of the proposed techniques needs evaluation on consistent basis and hence, following benchmarks have been decided: Approach KPI Annual Target SMM- Face book Monthly increase in fans (FF, Once travelled, Not travelled just joined), interacting, sharing current events, tagging, participation in polls, contest. % analysis of positive feedback and complaint Generate 10,000 fans each month, 0.25% posts each day (combination of SV and friends post), 20 post receiving 100 shares and 150 tags, 750-1000 participating each poll, contest receiving at-least 350-2000 participants (depending the price of gift). SMM: Twitter Number of responses on each SV tweet, number of customers Tweets, % increase every month, number of renowned persons and celebrities following. Gaining 3000 qualified followers’ first qtr increasing 75% each quarter. SMM: Blogging and Community Building Number of posts every week, quality of posts and comments and feedbacks At-least 10 posts each day, top 5 posts receiving 10 comments. 5 posts from renowned professional every week. SMM: Youtube Number of views on each post Achieving 500 views for each post initially with 25% likes and increasing it by 25% each quarter after first year. SEO Ranking on Google search Among top 10 in 1st Qtr and among top 3 by year-end WBSITE Increase In Traffic, interaction, flight and other services bookings, feedback posted. 25% increase in visitors, 10% increase in website bookings (mainly Chinese destinations of from Chinese nationals), 3% increase in feedback MOBILE Number of SMS sent using existing mobile service; number of bookings using new mobile system 25% increase in usage of mobile service, 500 bookings using new software in first quarter increasing by 20% each quarter ATM BASED SERVICES Number of bookings, increase in sales 2500 bookings in month of launch increase by 5% each month. SECTION 3: COMMUNICATIONS PLANNING Section 3a: “Integration” MEDIUM /APPROACH ONLINE APPROACH OFFLINE APROACH TYPE AND QUALITY OF SUPPORT SOCIAL MEDIA FB Liking FB to proceed In-flight entertainment channel Would generate fb fans in multiples at faster pace. SOCIAL MEDIA Twitter Blogging and print adds clearly stressing SV joining Appreciation for using online medium especially to corporate would enhance tweets increase following. SOCIAL MEDIA Blogging and community building Inviting ideas, experience related to air travel from schools, colleges, professionals, and travelers, writers and journalists Increased contribution would enhance the article base available on net linking best article to website hence increasing website viewership. SOCIAL MEDIA YouTube channel Flyers and broachers, launch campaign with Kiosk showing adds in malls and other relevant places Increasing number of viewership would associate sense of quality service with SV increasing its awareness. SEO Developing links connection; Running competition in events and institutes for writing related articles with winners content to be posted on website with reference. Similar benefits as that of blogging with indirect and less approach Website IMPROVEMENT Polls on FB, Tweets responses Competition among professionals; best idea to be adopted as part of website with awards; print media invites for competition participation Participants would spread the word around with families and friends involving support for winning. MOBILE BASED Posts on website , Social media continuous supporting campaign, YouTube ads News, TV add, sms to frequent flier, launch campaign, offering discounts, and conferences to support the integration of mobile as business partners. Information through sms and TV add would align its ranking among competitors in brand awareness aspect as well. Larger number of people would now be informed. ATM SERVICES Website, social media; YouTube ads Television Ads, News, ATM ads, sms to banks and SV clients of discount on ATM booking, print media ads, emails and broachers to travelers. Increase information through offline about increased number of services would increase awareness of to traditional medium associated flyers. Section 3b: “Media planning” MEDIUM /APPROACH Quarter 1 Quarter 2 Quarter 3 Quarter 4 SM - FB Start up of page building awareness of existence; developing awareness about up-coming competitions for other approaches Focus on enhancing core values and type and quality of service with increasing fans contributing their shares; customer and employees sharing of feeds. Increasing options for participants, theme based competition; increasing focus more on customer related to experience with food, seating, crew etc Maintaining updates related to seasonal promotions, best match options for tickets and increasing posts for tagging and sharing SM- TWITTER Platform for connecting corporate clients Focusing developing tweets mainly from satisfied flyers including renowned personnel such as celebrities Focusing on generating tweets / queries relate to ATM and mobile services; generating Continuing focus in activities of previous two quarters and generates more activity. SM- Blogging and Community Building Planning and developing platform for the competition; based on quality and quantity of response from other approaches Developing campaign for entries; evaluation of entries and selection of 500 entries Initiation competition among shortlisted ones; conducting other rounds of competition; building blogging community Final stages of competition; winner award campaign; continue building momentum in blogs and responses; SM- YouTube Collaboration with Research and advertising agency to get related you tube successful content relevant to aviation industry You tube channel launch campaign and launch Increasing rotation of adds on other channels such as FB; generate feedback and posts Continue with efforts in quarter 3 efforts SEO Beginning with general writers. Theme based completion (Saudi Airlines c, 2012); along with general entries General entries Theme based completion (Saudi Airlines a, 2012); along with general entries WEBSITE IMPROVEMENT Initiate polls and competition campaigning Competition Website improvement with incorporating winner’s ideas and titles. Evaluation of results related to efforts. MOBILE BASED Planning and development for the mobile activity Launch of mobile tickets services Campaign after reviewing and clearing issues related to mobile service Efforts to increase mobile sales ATM SERVICES Planning and development with collaboration with banks Development of software and facilitation of requirement resources. Continuing with qtr 2 activities and campaign Service launch. Section 3c: “Return On Investment” SV is already among the leading airline; but lacked far behind its competitors on application of digital media marketing. Digital marketing is mainly intended to influence the brand awareness of SV. Investment is measured in cost incurred in all these proposed plans. Return on this investment will be measured against average benchmark of result of activities. For instance, number of online bookings at current stage etc. After implementation, results shall be reviewed. For instance level of increase in online interaction. Level of these opinions actually provides opportunities for improvement and complaints related to services in all. Since being starter in media marketing and this would be revolutionary attempt to increase presence on virtual world; move from traditional print media advertisement. However, insight gathered from these sources would mean lot to SV airline. Increasing brand awareness would translate into sales (mainly from services of ATM and Mobile) while other would increase its visibility. Comparison of financial stats before and after these attempts would information. It can be confidently presumed that increased presence on virtual world would introduce SV to international customer more and its client base would get revision from Guest (assuming most of these guests are holy pilgrims) frequent flyers. Analysis would provide information to develop more fly References Amey, J. (2012). ‘THINK GLOBAL, ACT LOCAL’. Warwick. Available from http://www2.warwick.ac.uk/knowledge/business/thinklocal/ [Accessed 18 November 2012] ATKearney. (2012). Consumer Wealth and Spending: The $12 Trillion Opportunity. Available from http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/consumer-wealth-and-spending-the-12-trillion-opportunity/10192 [Accessed 18 November 2012] Brenner, J. (2012). Pew Internet: Social Networking. Pew Research Center, Available from http://pewinternet.org/Commentary/2012/March/Pew-Internet-Social-Networking-full-detail.aspx [Accessed 18 November 2012] Clear Trip. (2012). Saudi Airlines Online Booking. 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Yahoo!, Available from http://finance.yahoo.com/news/airline-industry-stock-outlook-may-192652058.html [Accessed 18 November 2012] Read More