Assessing corporate branding impact on Nigerian airlines’ market competitiveness

Branding is one of the most critical aspects of business communication strategies for attracting customers. Despite the value-adding importance of this marketing communication initiative, several businesses, including airlines in Nigeria, have failed due to poor branding, which has made their operations in most cases not appealing to air travellers. In this report, Olusegun Koiki analyses how deliberate efforts by airlines to showcase their USPs through effective branding campaigns could help improve their earnings and returns on investments.

Airlines are not to be distracted by economic, regulatory, safety, environmental and other external influences beyond management’s control and are expected to maintain a vital emphasis on customer relationships and brand management. Airlines have many consumer touch points and each is an opportunity to reinforce brand value and loyalty. Often these opportunities are squandered with irritating service, petty fuel, baggage or other surcharges that can make all airlines seem a distasteful commodity to air travellers. Building brand value in the airline industry means constructing communities around the product; the service and the experiences that lead to a strong trusted relationship. Brand showcases the Unique Selling Proposition, USP, of any business organization, including airline operators. In a time of economic uncertainty, airline brands need to connect with both leisure and business travellers. In difficult economic times, people are looking hard for value in everything they purchase. Part of airline’s objective is to improve travel value of passengers.

There is a transformation underway in the business world as environment force companies to reinvent the way they build brands. This has made brands more participatory and collaborative. Airlines like any other business all over the world now build strong brands and influence to compete in a much-changed and dynamic environment. To be world class and earn public trust cannot be achieved in one day or even a decade; some of the biggest airlines in the world like Delta, United, British Airways, Lufthansa, Emirates, Etihad, Turkish, Qatar and Air France have been in existence for several decades and have over the years developed solid brands that further attract clients to their services. For instance British Airways is known as ‘the world’s favourite airline,’ which focuses on popularity and quality of its service to its clients. Emirates brand is ‘Fly Emirates, Keep discovering,’ which sums up the airline’s philosophy on travel; “Only Emirates lets you discover a more authentic and fulflling life.” Virgin Atlantic USP is the service rather than price.

Delta Air Lines brand is ‘Digital business traveller,’ which stipulates that its main attraction is for international business travellers who consistently use the new technologies to achieve their goals. For Malaysia Airlines, it is ‘five-star value carrier,’ meaning an airline that provides top-quality products and services at the most affordable prices and many other renowned airlines around the world with practical brands. In Nigeria, several indigenous carriers have opened and closed shops due to several reasons including poor branding and poor management by their sponsors. The country’s carriers in the past like Chanchangi, IRS, EAS, NICON, Virgin Nigeria, Dasab, Bellview, Sosoliso, ADC, Air Midwest, Fresh, Chrome, Space World, Afrijet and others, had long term visions of competing among the best in the world. Unfortunately, their visions were cut short at the infancy stage as a result of fickle branding and bad management. However, the current airline operators are wiser as they place more emphasis on product branding and proactive management.

The current carriers, despite the obvious challenges of poor infrastructure at airports, inconsistent government policies and insufficient support from financial institutions, have created a niche for themselves and are loved and identified by their passengers for their brand names and USP. Arik Air, the country’s and West African largest carrier with 28 aircraft in its fleet, brands itself as the ‘Wings of Nigeria.’ The airline commenced flight operations on October 30, 2006 with three brand new Bombardier CRJ900 aircraft and has since been expanding its brands regularly to become one of the leading and fastest growing carriers in the continent. In a recent interview with our correspondent, the Chairman of the airline, Sir. Joseph Arumemi-Ikhide disclosed that the airline has secured a loan worth $1 billion from Exim Bank to acquire at least additional 26 aircraft between now and 2016. With the acquisition of another 26, aircraft, the fleet of the airline would increase to 54 from its present 28 aircraft. Arumemi-Ikhide said that main investors in the airline had approved of the latest developments, adding that after running the airline as a private investor for eight years, it was proper for him to allow interested investors acquire shares in the airline.

He explained that the determination of the management was to enlist the airline on the floor of the Nigerian Stock Exchange, NSE, by May 2016, thereby finally living to its brand name of ‘Wings of Nigeria.’ He declared that right from the outset, the slogan ‘Wings of Nigeria’ was developed to allow investors buy into the airline and fly Nigeria’s flag to routes hitherto flown into by Nigeria Airways while also developing new routes. He said: “Arik Air is on the verge of going public, which would be by May next year. Also, we have secured a $1 billion loan from Exim Bank to acquire more aircraft for our operations. Lots of people run their companies for several years before going public, which is what we are planning to do with Arik Air. When we go public, the slogan Wings of Nigeria will eventually come to fruition.” For Med-View, it has the brand name ‘The Airline for Nigeria,’ which like Arik Air hopes to be the major flag carrier of the country in the next few years. There are plans by the management to also enlist the airline on NSE, expand its fleet and grow its network routes.

The airline, which commenced operations over two decades ago as a General Sales Agent, GSA, to Saudi Airlines on hajj operations is at present flying into Accra, Ghana, Saudi Arabia and plans to commence Dubai and London in United Kingdom before the end of first quarter of 2016. Its Managing Director, Alhaji Muneer Bankole told our correspondent that the management constantly works towards building its brand name while also giving air tarvellers the best treatment on ground and onboard. When Air Peace came into airline subsector in 2014, its Chairman, Mr. Allen Onyema, said its coming into the industry would help air travellers have arrays of choices in choosing airlines to fly with. It then chose ‘Your peace our goal’ as its brand. Onyema lamented that the existing carriers are not offering the passengers their desired and hoped with the coming onboard of the airline, air travellers would achieve their set goals with more ease. He said, “At Air Peace, we are striving to become Nigeria’s airline of choice for your travel needs by providing a unique travel experience with safe, professional and reliable service at an affordable price.” First Nation Airways is founded and chaired by the ex-Chief Executive Officer, CEO, of Bellview Airlines, Mr. Kayode Odukoyain 2011 after the acquisition of Air Operator’s Certificate, AOC, from the Nigerian Civil Aviation Authority, NCAA. The airline, which has the brand name, ‘The First Choice’ some stakeholders said, is yet to live up to its trademark.

‘The First Choice,’ slogan primarily means that the airline is the first carrier considered by air travellers, but since it came onboard five years ago, is yet to make major impact with two aircraft, Airbus 320 it commenced flight with. Dana Air, which was founded in 2008 has the slogan ‘Smartest way to Fly.’ The airline carried the slogan with pride for four years as domestic passengers trusted the carrier and its schedules until the unfortunate fatal crash on June 4, 2012, which killed 153 souls onboard and another eight or so on the ground at the Iju-Ishaga area of Lagos. Analysts however said that in terms of on-time departure, Dana Air still remains the first choice of passengers. Aero Contractor founded in 1959, became a company with the initially 40 per cent Nigerian holding in 1973 and subsequently 60 per cent in 1976 and by July 2010 the airline was wholly owned by the Ibru family, but today, it has ran into murky water with its trademark.

It comes with the slogan, ‘The reliable way to fly,’ which underlines its enviable safety records. Since commencing operations either as a fixed or rotary wings, the airline is yet to have any major accident and despite its recent troubles, which led to the Asset Management Company of Nigeria, AMCON, owning almost taking over the entire assets of the company, the airline is still perceived as ‘The reliable way to fly’ in the country’s aviation industry. Aviation analyst, Mr. Emmanuel Olisemeke told our correspondent that for airlines to succeed in the present environment, such must focus on the brand experience as customers would choose the carrier that provides the best overall value to their interest and wants. Olisemeke said that by focusing on the brand experience, not only would airlines retain existing customers, but they would also attract others with the competition, adding that overall, this hedges against the potential of a consumer making a purchase decision on price only. He however said that the current crop of airlines in the industry have brought intense change in air travel business, especially with the advent of online booking and low-cost carrier alternatives for travellers. He said that the new carriers are emulating what budget airlines such as Southwest had been doing in some western markets for the last decade, and avoiding the pitfalls of defunct private airlines in the country.

He declared that the Nigerian aviation industry was for the first time facing a competitive challenge on the ground and in the air. Research he said indicated that air passengers were dissatisfied with the reality of domestic air travel and were increasingly open to new carriers on the block. He said, “The state of domestic air travel in Nigerian before now was impersonal and a hassle. And since the tragic events of 9/11, air transport security measures around the world including Nigeria has been stepped up, making it more inconvenient for travellers. “From this reality, airlines around the world are developing the idea that air travels can be made simply and enable customers to complete a journey by air in the most hassle-free way from booking a fight to collecting their baggage upon arrival at destination. “Airlines must find ways to make air travel easier, smoother and more human, which major Nigerian carriers have keyed into. They most hope to activate new customer groups and stimulate demand as a whole by creating more emotion around the brand.”

An engineer with the defunct national carrier, Nigeria Airways, Sheri Kyari urged the nation’s carriers to be more careful when choosing brand names for their airlines. First, he said that the operating environment should be put into consideration when choosing a slogan for an impending carrier, adding that the country’s airlines are bedeviled with lots of challenges, which made rubbish of their brand names. He hinted that none of the carriers in the sector could be commended for satisfying their clients, adding that some airlines.

Source: nationalmirroronline