Eroding a Brand
It can take years to build up a brand. As well as lots of money, hard work and consistent performance yet it just takes months to unravel a brand. Let’s look at Qantas. Qantas 10 years ago was undisputably one of the world’s best airlines known for safety, reliability, quality aircraft, professional and capable staff, generous membership programs and a choice of extensive travel routes.
Something seems to be going wrong. In recent months the media is full of stories about the poor performance of Qantas. It seems as though this magnificent Australian brand which had an enviable position in the market place is truly unravelling before our very eyes. There have been reported issues of safety, issues of reliability and my recent experience suggests a serious decline in customer service. From a marketing perspective Qantas has mucked around with its most valuable assets – a strong competitive advantage difficult to copy. Sadly they seem to becoming mediocre like many other airlines and with a new budget airline specialist as chief I am concerned what other poor decisions will be made that affect the customer experience. Qantas should never have risked their safety and reliability. An exceptional safety record is hard to achieve, hard for anyone to compete with and something most people are prepared to pay for.
Where is the original value proposition gone? I don’t think the poor performance of Qantas shares can be solely blamed on the economic crisis! Without turning this blog into a bash Qantas site, what are your thoughts?
Tips for a strong brand
- Don’t muck with your best assest
- Identify your key value proposition and protect it at all costs
- Consider the impact operational decisions may have on your brand
It is interesting that in Australia the view of Qantas was as you mentioned above. Outside, I don’t think that was the case. What I knew Qantas for in the UK was high prices, low value and prices that seemed to match it’s also highly priced UK partner all too closely.
What always surprised me was how positively Australians thought of Qantas despite paying huge amounts of money for flights that in Europe would have cost very little.
Now that was really good marketing to pull that trick!
Speaking as a ‘pommy’ I always saw Qantas as the world’s safest airline, until recently at least. I suppose they still are – just. But recent events have shaken that image…
I know people that flew Qantas PURELY because they were the world’s safest airline. They were nervous passengers or had nervous partners and the extra price on the ticket was worth it because you were confident nothing would go wrong. That competitive edge has been eroded and will take years to regain, if it’s even possible.
I agree with Ailsa, Qantas have taken what they had and shoved it squarely down the toilet by totally misunderstanding that price is not everything. I think Funkyg has misunderstood that too – there is a high price associated with quality (and in aviation, the measure of quality is related to safety).
The next few years for Qantas will be crucial if they can regain their reputation they might just make it. Otherwise they’ll become another mediocre airline and someone else will move into their spot.