MAS ready to rebuild brand image as pitch dust settles

So at last, the pitch is over. Almost a year after Media predicted that Malaysia Airlines would review its creative and media requirements, the ailing airline selected Ogilvy & Mather and MindShare to succeed Leo Burnett and Starcom on one of Asia's most high-profile accounts.

By some standards, furthermore, the pitch was hardly the protracted saga that many expected, after the examples set by recent Malaysian mega-reviews.

Instead, we had the curious sight of MAS 'parking' the business with Publicis, rather than stomach three more months with Burnett while the pitch unfolded. Thirty-one tendering agencies were cut down to seven, before Ogilvy beat out competition from three others, including the highly-fancied TBWA-ISC, to take creative.

MindShare's win over Carat and ZenithOptimedia raised few eyebrows; according to some sources, albeit those from GroupM, the agency has not lost a pitch in Malaysia in two years.

But where exactly does the whole process leave MAS? The airline's problems have been well-publicised: it recently reported its first profit in five quarters, after slashing jobs, shutting down unprofitable routes and introducing more fiscal discipline.

Much of this is down to the 'turnaround team' headed by MAS chief executive Idris Jala, who — unsurprisingly — has also slashed the airline's advertising budget this year.

MAS' adspend is believed to be less than half of that now, skewed towards below-the-line and tactical work. While many see the cuts as understandable, the decision to decelerate above-the-line is met with more concern.

"If they are serious about being a world-class airline, they can't be a best-kept secret," says one agency source familiar with the account.

"If they want to go back to being one of the premium airlines in Asia, they have to advertise above-the-line. It would definitely make sense to do some targeted brand communications."

According to MAS senior GM of corporate communications Indira Nair, however, that will not happen any time soon. Instead, Nair says the airline is re-examining all aspects of its customer touchpoints, as it aims for a channel planning approach that will be led in conjunction with MindShare.

"I think I would disagree with MAS' previous strategy of equating brand communications with ATL," says Nair. "We are looking at 125 initiatives to improve touchpoints — to me, that's branding, because that's about the experience the customer has of the brand."

So while ATL may not necessarily get the boost that creative agencies crave, Nair is confident that overall marketing spend will rise in 2007. In a significant departure, meanwhile, she points out that business class will not necessarily form the core of MAS' marketing platforms — instead, the airline is readying a proposition based around Malaysian hospitality.

"What we are now looking at is Malaysian hospitality across all classes. It's a cultural revolution that MAS is beginning, which has to become a way of living for this airline," explains Nair.

Rumour has it that the airline revised its agency fees downwards on more than one occasion this year — hardly the ideal beginning for a fruitful relationship with its new partners. Even on that count, however, Nair is sanguine — pointing out that the indicative pitch budgets were RM 40 million (US$11.2 million) and RM 10 million for media and creative, respectively.

"For me the fee is irrelevant — what is relevant is the return on our investment," says Nair. "My own view is that agencies put a lot of bodies in the team — but do these bodies provide something that a client can't do themselves?"


 

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