Efforts to position SilkAir as Asia's preferred leisure airline are continuing, even though the Sars (severe acute respiratory syndrome) crisis has forced the airline to cut back on capacity and services, and put a temporary halt to its 'Where the world unwinds' campaign, launched in February.
But longterm, SilkAir is committed to building itself up as the best regional airline, not just an extension arm of its parent, Singapore Airlines, in the region. It has proven it can be a standalone airline in its own right by producing a S$17 million (US$9.5 million) profit last year. Investing in its new positioning is also critical as new low-cost leisure airlines prepare for take-off.
To this end, the new positioning will be more than just a change in tagline.
Part of the initial investment of $3 million will be spent on training and enhancing service offerings, and the current slowdown is a good opportunity to give delivery a real buff and polish.
Other key ingredients in becoming Asia's preferred airline, are to ensure it has the best array of exotic destinations in the network and value-for-money pricing. Along with new aircraft, this will support its longterm expansion plan to increase flight frequency and expand route network to more exciting destinations.
SilkAir hopes these efforts, and a consistent branding campaign, will bring high customer recall of the airline as the choice passage for a smooth and memorable holiday.
But this will need time. For 11 years, SilkAir has unwittingly educated the public to accept the airline as a mere subsidiary of SIA. It has no real identity of its own. To expect consumers to understand the brand has its own values will not be something that can be done quickly and without challenge.
Its SIA connection, too, has both advantages and disadvantages. An advantage is definitely the association with SIA's fine reputation; in the same breath, however, this is also a disadvantage, as SilkAir will always be held in the same mirror as its polished parent, even though its operating costs and structure are worlds apart from SIA. Once again, its success in rebranding will lie in its ability to properly define its core values and communicate these values to the consumers.
VITAL SIGNS
Route frequency growth in 2002 28%
Planned route frequency
growth in 2003 15%
Number of aircraft in operation 10 aircraft
Expected fleet size by 2006 16 aircraft
Route network* 119 weekly flights to 26 destinations,
including Indonesia, China, Thailand,
Cambodia, Bangladesh, Malaysia, the
Philippines, India and Myanmar
DIAGNOSIS
CHRISTOPHER LUCK, General manager, 141 Worldwide, Cambodia
Here's a classic case of a brand aiming to evolve itself to suit what the customer wants. Great news. But first, SilkAir needs to separate itself from the plethora of competition that vies for the Asian leisure dollar by doing and saying something that is different and appealing to the customer.
First, we must satisfy two key areas 1) Destination and 2) Cost. The right answers here will get SilkAir on the brand choice shortlist. Then it's the question of our brand positioning and how we can capitalise on that one thing that will grow SilkAir's business.
SilkAir has put significant effort into improving its service delivery and growing destinations in a broader effort to make the SilkAir experience 'easy' for customers. This brand essence is completely customer-centric and has enormous potential in the eyes of staff, trade and consumers.
It's one thing to force feed an ethos on staff via a communications campaign; it's another to practise it from within. The brand must be in sync with the reality of the experience and the experience must be superior to the competitors. Consumers are far more sensitive when travelling for leisure, it's a much more personal experience and the little things count; so all bases must be covered - easy!
CHRIS KYME, Managing partner, Bang, Hong Kong
SilkAir's challenge, as an airline which had taken off on the back of its parent, SIA, was to create a more independent image for itself. Of course, when you're just getting started, being seen as the smaller subsidiary of one of the best airlines in the world is no bad thing (a bit like being George Clooney's younger brother), but after 11 years it was time for SilkAir to, well, become SilkAir. To "properly define its core values and communicate those to the consumer".
Well, looking at the strategy and campaign that had just been unveiled before someone sneezed, I'd say that they had lift-off.
To reposition the airline more as an enabler of lifestyles, in this case, relaxation getaway holidays, was a smart move.
After all, for short haul flights to holiday destinations around Asia, it's not all about in-flight service, wider seats, five-star meals or the latest gadgets.
'Where the world unwinds' is clearly a step in the right direction, and I'm sure that a lot of very expensive thinking went into it.
But where do they go from here? No-one is flying right now, whether by choice or otherwise. And what with the atypical pneumonia outbreak and the potential of more terrorist attacks after the war in Iraq, who knows when life will get back to normal?
TREATMENT
LUCK'S PRESCRIPTION
- Clearly understand the customers and the factors that influence their purchase and repeat purchase decisions.
- Evolve the brand essence to 'easy'. Live it, breathe it.
- Go for a complete and integrated communications approach to ensure each of the brand's touchpoint reflects a uniform and consistent message.
- Create a memorable and lasting campaign based on a powerful creative idea.
KYME'S REMEDY
- This might be good time to get back on air because you can get more mileage advertising in a recession. Also by acknowledging the tough times, it could be tweaked to offer a window of escapism. Then when better times come, a lot of the foundation for a new image would already be in place.
- The message of 'unwind' lends itself beautifully to the proposition of hassle-free travel, as in 'the holiday experience starts with SilkAir'.
- Avoid price wars. The positioning would be better served by reassuring quality, service and expertise.