Burnett and Starcom snag MAS global deal
<p>KUALA LUMPUR: Malaysia Airlines has consolidated its global </p><p>advertising account with Leo Burnett and media agency Starcom after </p><p>completing a review, which included Bates, Naga DDB, Ogilvy & Mather, </p><p>Grey Worldwide and TBWA-ISC. </p><p><BR><BR> </p><p>Burnett and Starcom were the incumbent agencies in Malaysia, but </p><p>overseas work was handled by a myriad of agencies. </p><p><BR><BR> </p><p>The airline moved to consolidate its business to achieve consistency in </p><p>branding and to save costs. </p><p><BR><BR> </p><p>"A lot of the creative work coming out from overseas was off strategy. </p><p>They want to have a consistent positioning for global branding," said </p><p>Charles Cadell, managing director of Burnett Malaysia. </p><p><BR><BR> </p><p>The new work aims to move away from the tactical initiatives employed in </p><p>the past - mostly ads announcing new routes - and to build some brand </p><p>cachet, while still generating an immediate sales increase. </p><p><BR><BR> </p><p>Cadell attributed the win to Burnett investing in research to discover </p><p>what routes Malaysia Airlines should focus on to maximise its return on </p><p>investment. </p><p><BR><BR> </p><p>In some instances, Burnett staff went on flights to discover first-hand </p><p>what the passenger numbers were and the split between economy, business </p><p>and first class traffic. </p><p><BR><BR> </p><p>Malaysia Airlines desperately needs a boost in passenger numbers because </p><p>it has been losing money since 1997. The sharp downturn in travel </p><p>post-September 11 has also hit the airline hard. </p><p><BR><BR> </p><p>Last year, the airline lost RM1.33 billion (US$350 million) </p><p>compared with RM259 million in 1999, contributing to the company's debt </p><p>of RM9.4 billion. </p><p><BR><BR> </p><p>Other problems include its failure to join Star Alliance or One World, </p><p>the two global loyalty programmes airlines rely upon to attract business </p><p>travellers. </p><p><BR><BR> </p><p>The carrier also needs to balance the bottomline demands of becoming </p><p>more competitive, while working in the national interest, which includes </p><p>operating unprofitable routes - such as some flights to South America - </p><p>because the Malaysian Government feels its helps with foreign </p><p>relations. </p><p><BR><BR> </p><p>At the same time, the airline is subsidising flights to east Malaysia </p><p>because the Government feels it helps with national integration. </p><p><BR><BR> </p><p>Burnett's account win includes the passenger airline, mass cargo </p><p>business, frequent flyer programme, which is called Enrich, airport </p><p>ticket sales business Golden Boutique, holiday business Golden Holidays </p><p>and the Kuala Lumpur International Airport (KLIA). </p><p><BR><BR> </p><p>The win excludes online advertising, web development and direct </p><p>marketing work. </p><p><BR><BR> </p><p>Burnett is employing staff to handle the extra work and has promoted </p><p>Masila Mohd Ariff from group brand director to international account </p><p>director on Malaysia Airlines. </p><p><BR><BR> </p><p>Some Burnett offices around the world will continue to work for Delta </p><p>Airlines as there is no conflict because the two airlines compete on </p><p>different routes, according to Cadell. </p><p><BR><BR> </p>
Please sign in below or access limited articles a month after free, fast registration.
If you don’t yet have an account, you can register for free to unlock additional content. For full access to everything we offer, view our subscription plans.
Sign In
Register for free
✓ Access limited free articles each month
✓ Email bulletins – top industry news and insights delivered straight to your inbox
Subscribe
✓ Unlimited access to all Campaign Asia content
✓ Real-world campaign case studies and career insights
✓ Exclusive reports, industry news, and annual features