VISION ONE – THE DISCOVERY AGENCY

MEASURING

BRAND EQUITY Case Study

The UK Airline Market It’s just over 20 years since low-cost airlines transformed UK air travel. Long-standing brands, once synonymous with air travel’s glamour and prestige, found their positions under attack from carriers who stripped back the frills and battled on price. In 2016, budget brand EasyJet carried far more passengers than any other UK airline, flying over 63 million people to their destinations. Second placed British Airways flew around 42 million. However, their operating revenues tell a different story. In 2013/14, BA’s operating revenues were more than double those of EasyJet. While both these companies run airlines, they clearly take a very different approach. What role does brand equity play in the way that they, and other airlines, reach their market?

Measuring Brand Equity It’s no secret that there’s more to a brand than its logo. Each time we encounter a brand – by seeing it, hearing about it or experiencing it – we build up a sense of what that brand is about. Some brands make us feel good. Others… don’t. But our perception matters because it affects our readiness to buy. We call this brand equity. At Vision One, we know that understanding brand equity is only half the story. The other half is knowing how to improve it. But you can’t do one without the other, and that means measuring brand equity in order to take the next step. In this case study, we look at how British Airways’ brand equity shapes up. We all know it’s one of the world’s leading airlines, but by measuring its brand equity, we can start to see where future opportunities lie.

Airline Brand Equities

It’s tough at the top. British Airways scores well on the brand pyramid and its customers’

willingness to pay a premium, and has a strong brand equity rating of 63. However, lower scores

for its brand

identity and its delivery against customers’ needs and values means Emirates and Virgin Atlantic

both fly higher.

1. The brand pyramid Brand awareness is just the start of a customer’s journey. This pyramid shows how many are taking the steps towards true loyalty. 2. Brand stature Is the brand perceived to be a leader or follower? Is it unique or a “me too”? 3.Brand delivery Promising much without delivering is a recipe for a sinking satisfaction score. 4. Brand utility Arguably the most important factor, this shows how well a brand meets market needs and its ability to

command a price premium.

Brand Pyramid

The brand pyramid is made up of 5 key metrics * Awareness * Consideration * Purchase * Satisfaction * Loyalty Every brand has a unique brand structure, and comparing these scores with key competitors helps to identify future opportunities. British Airways has a strong brand pyramid, although compared to both Emirates and Virgin Atlantic, its customer satisfaction is lower than you might expect.

The Brand Equity Wheel Getting to the heart of brand equity means taking a spin round this wheel of fortune.

Meeting Rational & Emotional needs

When it comes to airlines,

customers’ values and needs

tend to be rational rather than

emotional. Saving time, good

value and convenience all top

the table.

EasyJet achieves the best score for

customer

value. Its good value offering is seen to

be particularly strong, but it also satisfies

the emotional need of belonging.

Ryanair is also known for its good value,

but it fails to deliver any real brand value

for passengers.

In contrast, British Airways is recognised

for its longevity, overall appeal, quality

and variety.

£ Value £ Value is a KPI that helps identify the ability of a brand to command a premium price - i.e. a

brand customer would potentially be happy to pay more for.

The Emirates, one of the world's most profitable airlines appears to be the brand that most people would pay more. British Airways and Virgin are some distance behind but as expected well above the budget airlines of EasyJet and Ryanair.

Brand Stature

Brand Stature comprises of two key components. Brand Differentiation which is universally regarded by brands as a fundamental component of any brand and reflect the ability of the brand to stand out from the crowd. Leadership is key and reflects the stature of the brand - as many shoppers will tend to follow conventional wisdom and buy 'big' brands.

Discover your Brand's Secrets

Visit our website for more information on our B2B and Consumer brand equity and brand tracking agency services.

0203 693 3150

Get in Touch

Vision One Research Ltd, 85-87 Bayham Street London, NW1 0AG www.visionone.co.uk