THE FUNDAMENTALS OF ROUTE DEVELOPMENT POSITIONING AND COMPETITORS MODULE 4
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1 THE FUNDAMENTALS OF ROUTE DEVELOPMENT POSITIONING AND COMPETITORS
2 OBJECTIVES How to asses your competitive situation? How to position your airport?
3 POSITIONING AND COMPETITORS WHAT IS DRIVING COMPETITION?
4 POSITIONING AND COMPETITORS Drivers Increased airport marketing Airline & suppliers relationship De-regulation Airport privatisations
5 MARKETS CATCHMENT REACH & PENETRATION Catchment area What area is unique to your airport Population by ground access time Existing market penetration? Competitive airport catchment area How many passengers from your catchment area use competing airports surface and air?
6 MARKETS CATCHMENTS CAN BE CROWDED SEN 60% of the European population can access at least two airports within two hours drive time
7 IMPORTANCE OF POSITIONING CATCHMENT REACH & PENETRATION Positioning is the creation of a distinctive place in the market. It is a choice of where you want to compete and how you wish to compete. An airport and destination can actively define this or passively permit the market and/or competitors to create a position for you.
8 WHO ARE AIRPORTS COMPETITORS? WHO Other Airports Local, national, international Other transport Rail, road, coach, ferry Competing stakeholders Tourist Authorities, Regional Gov Airlines Alternate bases, alliance networks, hubs Tour Operators Alternate O&D bases Technology Video call, Skype, Hangouts HOW Better location, cost, superior product, strength of based carriers Cost, speed, convenience Better market, ASD resource strength, funding Feed traffic to hubs, position to consumers against airport Position convenience, cost, destination fashion to consumers Reducing travel requirements?
9 RAIL COMPETITION 9 ASM
10 RAIL COMPETITION 1 ASM
11 RAIL COMPETITION POTENTIAL WORLDWIDE Train is not always cheaper than Flights Source: Reason Foundation 2014
12 POSITIONING IMMUTABLE LAWS LAW Law of Leadership Law of Category Law of Resources Law of Focus Law of the Opposite Law of the Ladder Law of Perception HOW Hard to dislodge a market leader If you can t be No.1 find a new category you can lead in Strongest wins in a straight fight The narrower the focus the better the results Exploit weakness in an opponents strength Understand your position in the ladder & determine strategy Marketing is a battle of minds not products
13 SUCCESSFUL POSITIONING Clarity, focus and strength Credibility Successful positioning Consistency Competitive
14 POSITIONING INTERESTING EXAMPLES Airports Dubai World Central ASUR Mexico s Leading Airports Copenhagen Scandinavia s Hub, now Best Hub for Northern Europe Helsinki Shortest Route Between Europe and Asia Geneva Your High Yield Market Edinburgh Where Scotland Meets the World Glasgow Proud to Serve Scotland Paris Absolutely Paris Schiphol Amsterdam Open for Business Warsaw Chopin Closer to the World Heathrow Making Every Journey Better Wuhan China s Inland Hub Munich Living Ideas, Connecting Lives Brussels The Heart of Europe Vienna A Modern Hub at the Heart of Europe Guangzhou Southern Gateway of China
15 POSITIONING INTERESTING EXAMPLES Destinations India Incredible India Australia Isn t just a place you see, it s a place you feel Brazil Sensational! Israel Land of Creation Egypt Where it all begins Greece All Time Classic Spain Is what you want, what you need Malaysia Truly Asia Oman Beauty has an address, Oman Balearics Much more than Cyprus In your heart Singapore Your Singapore (Uniquely Singapore) Jamaica Now that s what I call Alright Thailand Amazing Thailand
16 CASE STUDY TACTICAL MARKETING
17 CASE STUDY TACTICAL MARKETING
18 COMPETITORS KEY QUESTIONS What are their strategies? How do they market themselves? What is their positioning? What are their strengths and weaknesses? How have they reacted to competitive threat? How do they attack their competitors? How successful have they been? Are they sustainable?
19 Understanding your Airport s Competitive Status No 3 Low Cost No 2 Charter LTN? STN No 2 Low Cost? No 1 Cargo integrator No 1 General freighter ops No 1 UK hub (BA) No 1 UK gateway for pax and cargo LHR LCY SEN Emergent Low Cost Fast train to City of London Eurostar No 1 Train- France, Belgium LGW No 2 UK gateway No 1 UK Outbound Charter/Tourism No 1 low-cost? 1 ASM
20 Understanding your Airport s Competitive Status No 3 Low Cost No 2 Charter LTN No 1 - Scheduled Business flights STN No 2 Low Cost? No 1 Cargo integrator No 1 General freighter ops No 1 UK hub (BA) No 1 UK gateway for pax and cargo LHR LCY SEN Emergent Low Cost Fast train to City of London Eurostar No 1 Train- France, Belgium LGW No 2 UK gateway No 1 UK Outbound Charter/Tourism No 1 low-cost? 2 ASM
21
22 WHAT S YOUR AIRPORT S MARKET, PRODUCT, POSITION AND COMPETITION? Describe briefly (Max 10 minutes)? - Your markets - Your product - Your position - Your competitors - Single most compelling reason why airline should fly to your destination Try and find a differentiator and a category where you can win
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