Product Augmentation for Lufthansa

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Marketing Products & Brands TEAM G: Silvana, Cagan, Vincent, Maryam, Clar Joey

Transcript of Product Augmentation for Lufthansa

Page 1: Product Augmentation for Lufthansa

Marketing Products & Brands

TEAM G: Silvana, Cagan, Vincent, Maryam, Clara, Joey

Page 2: Product Augmentation for Lufthansa

British people spend approximately 30 hours preparing for a holiday, spread over a five-week period (more than double the length of their trip)

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Agenda

1. Problem2. Recommended Augmentation3. Why it makes sense in the

market?4. Why consumer would be

interested?5. Future Trends6. Competitors7. Competitive Advantage8. Communication/Implementation

Plan9. Conclusion – Value Proposition

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ProblemSignificant decrease in the use of travel agencies.

“Do-it-yourself” booking.

60% of leisure travelers and 41% of business travelers make their own travel arrangements, generally via Internet.

Study shows that the most stressful part of the trip is the planning stage.

People are looking for more productive ways to spend their time in-flight. (wi-fi, movies, sleeping).

What if we combine these two?

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Lufthansa

Onboard Travel AdvisorGet ready for your trip, Get most of it

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How does it work?

Implemented within the in-flight entertainment screen.Log-in with your e-mail.

Choose your interests.Art, History, Sports, Music, Local

Events, Nightlife, Food, Local Culture.

Get information/videos about your interests from local experts (Top 10 Restaurants, Bars, Sightseeing)Upcoming events (Concerts, Cultural Events, Exhibitions)

Save it or Send it to your mail, so you can reach the information even after you leave the plane.

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“Now we are no longer talking so much about what Lufthansa does or what we do for our

passengers. Rather the focus is on the people we are doing it for.” --Reinhold Huber, SVP of Product

and Marketing

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“BLESIURE” TRAVELLERS

56% of 18-35 age group in 2015 94% of this age group in 5 years

Top activities: Sightseeing

Dining Arts and Culture

Sites like TripAdvisor are losing credibility. People are looking for expert/local opinions..

Why it makes sense in the market?

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• Customer will be able to use their time while they are onboard to explore their personalized trip options.

• Some passengers are interested in the locals and cultural  experiences and need trusted advisor to assist them in taking their decisions.

• They want to use their time in-flight more productively.

• It is better option than using inflight magazine: hygiene, interactive, eco friendly, customized info.

Why would our passengers be interested?

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• In-Flight Wi-Fi

• Personalization

• D-I-Y (Do It Yourself) Attitude and Control

• Importance of Experiences

Future Trends

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KLM in partnership with YELP, Trip Advisor, Airbnb is sourcing information for the passengers and for their needs by dedicated sections in the travel guide website.

However, none of our competitors (Air France, KLM, Air Berlin, Easy Jet) have it personalized or in-flight.

Competitors

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First mover advantage

Better understand the consumer

Data is Money

Better targeted promotion

Increase in future sales of repeat customers

Brand Association with Travel and New Experiences

Experiences

Increased Brand Perception and Word of Mouth

Competitive Advantage

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Use existing database to send them an e-mail,newsletter promoting the new service.

Online Channels

Bilboards in airports.

Agreements with travel bloggers for content and promotion.

Communication/Implementation Plan

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To international business fliers with little or no time to plan their trip in advance, and leisure fliers that seeks cultural & local experiences; Lufthansa on-board travel advisor is a tool that provides the most interactive and nonstop personalized travel planning assistance, by allowing passengers to enrich their out-of-flight experience in their destination

Value Proposition