Strengths of Cathay Pacific Airways In Terms Of Branding Strategy
Cathay Pacific is an international airline based in Hong Kong operating for the last 75 years. Cathay pacific airways present passengers services, aircraft maintenance, catering, and cargo handling. The airline is incorporated into the Swire group of companies in Hong Kong among prolific airlines like Dragon airlines limited. Cathy Pacific Airlines boasts over 212 destinations worldwide, more than any other airline in pacific Asia. The airline primarily targets business passengers from pacific Asia, Hong Kong, Europe, and North America. The policy of Cathay Pacific Airlines is to serve passengers willing to invest in entertainment, luxury, and service. Primarily achieved through offering particular customer service, cargo handling, catering, and aircraft maintenance.
Statement of the Problem
For many years numerous airlines such as Cathay pacific airways have embarked on an aggressive branding campaign to attract prospective clients and retain the available customer base. Cathay pacific airway’s branding strategies are driven by the necessity to establish a robust, eminent, and unique brand image that is recognizable worldwide. However, current business trends in the aviation sector in pacific Asia have created acute competition from airlines plying the route of pacific Asia and Europe. Such as Singapore Airlines taking 27 percent market share compared to 25 percent taken by Cathay pacific depicts the impact of competition limiting the market share and dominance of Cathay pacific airways in the pacific Asia region.
Aim of the Study
The study aims at identifying Cathay pacific Airways’ strengths in innovative branding and the relationship between emotional connection with passengers, product and service satisfaction. Further, it seeks to determine strategies that may enable the airline to have a competitive advantage over airlines operating in the same region. The branding strategies adopted Cathay pacific airline purposes to attract prospective clients and retain customer loyalty to the brand.
Objective
The study will adopt the strength, weakness, opportunities, and threats (SWOT) analysis to ascertain the current business position of Cathay pacific airways. The study will explore various branding and market strategies that other airlines have adopted and compare them with the Cathay pacific approach to determine future practices to guide a viable branding process. The study expounds on Cathay pacific products, advertising channels, and pricing.
Significance of the Study
The study is essential to airline industries in bringing greater understanding in the client’s way of thinking to drive future brand strategies that conform to the necessity of attracting new clientele, establishing customer loyalty, and sustaining profitability. Notably, Cathay pacific airline branding strategies are characterized by the exceptional presentation of its brand, emotional connection with the customer base, excellent execution of services to clients, and familiarizing the staff with company objectives and branding goals (Jieli, 2017). Additionally, through the Integration of market surveys, image promotion, and advertising, the airline has managed to attract a sizeable client base and gaining a competitive advantage over other airlines in the Pacific Asian region. Cathay pacific branding strategies will aid allied aviation companies in achieving commercial goals.
Literature Review
Brands are perceived as valuable assets that play a central role in marketing strategy. A brand is a component of the name, symbol, and design that identifies a product. Branding is a concept that plays a vital role in increasing the customers’ trust in a specific product in satisfying the need (Wong & Musa 2011).
Wong & Musa identified unique approaches vital for consumer’s awareness, attraction, and retention to the aviation brand. Brand visibility the process of ensuring that consumers are familiar with the existence of a particular brand. The dimensions include advertising to create airline awareness among customers, emotional connection through unique services and quality products to attract and retain passengers, and internalization of branding strategies to familiarize with staff.
Branding attraction is explained as a passenger’s internal commitment to source services of a specific brand due to favorable attitudes and emotional connection to a particular airline (Gichuhi, 2011). Gichuhi found out that customer retention is marked through the Implementation of branding strategies in the aviation sector, which often requires modifications to match passengers’ specific needs, such as comfortable seats. Brand loyalty, is Passengers continuously opting to purchase the brand in the face of acute competitors with superior qualities such as affordable pricing and client convenience. Strong branding strategy in airlines is attained through a steady supply of loyal clients who give the brand stable incomes through sales.
Wong & Musa findings will aid Cathay pacific in adopting strategies that accomplish product awareness. Brand awareness is achieved through marketing strategies like advertising, unique products and services, and emotional connection with the consumers.
Gichuhi findings will aid Cathay pacific brand portray the value customers attach to the services and products that generating predictable sales and stable incomes. Still, Cathay pacific can adopt innovative branding which purpose at customer retention which is cost-effective compared to attracting prospective ones.
Research Questions
1. What are the branding strengths of Cathay pacific airways?
2. What is the weakness of the Cathay pacific brand?
3. How does Cathay pacific brand ensure innovative branding strategies?
Application Of SWOT Analysis In Cathay Pacific Airways
Utilizing the SWOT Assessment in the study of Cathay pacific airway’s branding strategies, the study attained the following strengths that have been affording the airline excellence over the years.
Robust Product Equity And Client Experience
The driving factor in the seven decades of operation in Cathay pacific airways has been characterized by unmatched dedication in extending quality services to passengers concentrating on the consumer’s preferences, and providing customer satisfaction during the flight. Cathay Pacific aircraft avail four choices of consumer classes to consumers determined by the ticket pricing (Tarmadi, 2020). The premier class provides a variety of luxurious couches that are fully convertible to beds. Articulately designed cabins for first-class flyers that offer absolute privacy, individual televisions screens, uninterrupted internet connectivity, and entire flight full menu service on demand.
Cathay pacific commercial class is characterized by modern amenities available in the aviation sector. Comfortable seats with added space for resting, individual privacy, and video on demand through articulate fitted screens to provide entertainment during the flight. Passengers boarding the business class enjoy wireless internet connectivity and a wide variety of choices of menu and service from the esteemed flight crew. The airline has availed a premium economy class uncommon with multiple airlines that extend a bigger passenger space than the average economy class. Amenities include adjustable seats with more sprawl cushions to ascertain a relaxed flight. Noise deterrent headsets, video entertainment gadgets, and power outlets for charging cellphones. Still, the economy class extends adjustable seats though slimmer compared to the commercial class. Entertainment is guaranteed through a fixed television screen and power sockets to charge personal cells.
Internalization of Branding Strategies
Cathay pacific airways have a coherent training program to familiarize staff with the branding objectives of the company. Also, to equip the flight attendants with the necessary skills to ensure efficient execution of their duties and harmonized treatment of the passengers. The training is centered on listening to the passenger’s demands, eloquent communication while addressing the client, and resolving customers’ concerns (Dechawatanapaisal, 2018). Regular training ensures that the staff is coherent with the company’s objective of being the best airline globally. Enhanced remuneration of the flight crew motivates the workforce to serve the customers efficiently. Furthermore, training and equipping the cargo crew with the required skill to ensure customer satisfaction through careful handling, packaging, and cargo delivery according to the customer specification.
Innovative Branding Practices
Innovative branding entails adopting proven technology methods to advertise and create awareness of the product to the consumers. Cathay pacific marketing strategists fathom the need to incorporate modern technological mediums in the current technology compelled world. Conforming to the need to incorporate technology in modern business trends. Cathay Pacific has developed a mobile app termed CX mobile (Lin, 2015). The CX mobile proposes providing prospective and loyal customers to the brand with adequate real-time data on flight schedules, departure, and arrival intervals.
Additionally, the charges for tickets to numerous destinations are covered by the airline. Adopting the mobile software is proactive since it delivers accurate information to patrons saving the transport cost to the airport. The strategy is cost-effective to the Cathay pacific since it saves on advertising cost, reaches the majority of clients, and ensures flyers satisfaction by making sure they do not miss the flight due to deficiency of flight schedules.
The emotional connection of clients to the brand is depicted through the utilization of the CX mobile. The software allows flyers to conduct a virtual tour inside the airplane and experience the services and products provided, book-specific seats of their preference. The branding strategies aids in creating product value and guide the consumers in prior knowledge on services to expect if they opt for the brand. Notably, Cathay pacific uses Twitter, Facebook, and YouTube to use the social media platforms for marketing and promoting their brand. The branding strategy aimed at sourcing prospective clients by highlighting the products and services provided, achievements, and the benefits extended for choosing the brand. For instance, opting to book through the CX mobile give clients with price discounts in some occasion a strategy aimed at luring the consumer base to adopt the mobile app. The banding approaches aim to increase the client’s base, increase income and gain a competitive advantage over other airlines.
Cathay Pacific Vast Passenger And Cargo Aircraft
The airline has invested in the acquisition of modern aircraft; for instance, Boeing 747 and Airbus 777 max aircraft give more space for cargo and passengers, maximizing their profits. Cathay pacific possession of a vast fleet affords a competitive advantage over competing airlines such as Singapore airways since they can provide widespread destinations due to the vast fleets (Lombardo, 2018). Still, accessing multiple regions of operation support consumers’ trust that their products will reach the destinations. The advantages aids in accelerating commerce and consumer choice of aircraft and travel routes. Cathay pacific airway’s notable achievements are the award CIEV fresh 2018 by the international air transport association (IATA) for the best airline in handling perishable cargo globally. The airline vision is to be the world’s best airline. Cathay Pacific has been ranked as the leading cargo handling service lender and the fourth overall preeminent airline to support the airline objectives.
Cathay Pacific Weaknesses
Reduced Income Due To High Operational Costs
Cathay pacific vast fleet and numerous destinations require high costs in maintain the aircraft and hiring the staff to ensure regular maintenance. Handling perishable cargo depicts complete care; delay in deliveries due to unforeseen circumstances leads to huge losses impacting the revenue collected to compensate the clients.
Intense Competition From Other Airlines
Upcoming airlines such as Budget airlines based in Hong Kong extends stiff competition to Cathay pacific due to their reduced charges in tickets and cargo services making customers to opt for the reduced prices shunning the services of the Cathay brand. Loss of clients opting for cheap charges reduce the profits of Cathay pacific.
Methodology
Research design
The study will be conducted through a case study. The approach is convenient in ascertaining in-depth knowledge and conduct of the target population. The analogy of case study is emphasized by Young (1960) who acknowledged the case study as powerful tool to establish qualitative analysis that enables accurate and careful observation of social behaviors in humans.
Target Population
The study will target passengers often traveling using Cathay pacific airways. Majority of passengers are from an affluent background and less concerned with the price of tickets, and willing to invest in luxury services.
Data collection tools
The study will take diverse approaches to gather primary and secondary information related to the research. The researcher will utilize peer-reviewed journals, articles, civilian opinion reports, and surveys in secondary data gathering. The secondary data gathering sources will avail the ensuing strategy on information collection of the primary data method. The secondary sources will provide branding strategies and operation methods of Cathay pacific.
The study will adopt interviews and questionnaire survey method. The study will steer three interviews targeting passengers at the Hong Kong airport. The interview will target passengers in different social classes comprising loyal customers to the Cathay pacific and first-timers. The study aims to obtain qualitative information on customer perception of services extended by Cathy pacific.
Questionnaire surveys will be adopted to gain quantitative data on passenger attitudes and perceptions towards the Cathay Pacific brand. The respondents will be asked to pinpoint products and services that establish an emotional connection with Cathay pacific brand. The researcher proposes to forward 150 questionnaires to diverse respondents.
Data Analysis
The information gathered was qualitative in nature and stratified using conceptual content analysis. Conceptual analysis is described as a system of establishing interpretations and objectively identifying particular characteristics of information and adopting the same strategy to relate to trends (Zgurovsky & Zaychenko, 2020)
Data analysis refers to the concept of analyzing and classifying the gathered information. The study will adopt the qualitative analysis in stratifying the data collected since the researcher conducted interviews and questionnaires with simplified questions to attain first-hand data.
Limitation Of The Study
The study may face unforeseen challenges in gathering accurate and conclusive data due to restrictive policies introduced to deal with the ranging coronavirus pandemic. Measures to contain the pandemic limiting air travel may hinder access to essential data sources.
References
Du, J. (2017, May). How Service Brand Equity Can Be Built Up: A Case Study on the Branding Strategy of Cathay Pacific Airway. In 2017 3rd International Conference on Humanities and Social Science Research (ICHSSR 2017) (pp. 129-133). Atlantis Press.
Dechawatanapaisal, D. (2018). Employee retention: the effects of internal branding and brand attitudes in sales organizations. Personnel Review.
Gichuhi, S. N. (2011). A survey of brand loyalty in the aviation industry: A case study of aircraft leasing services (als (Doctoral dissertation, University of Nairobi).
Lin, Y. H. (2015). Innovative brand experience’s influence on brand equity and brand satisfaction. Journal of Business Research, 68(11), 2254-2259.
Lombardo, D. A. (2018). The Future of the Aviation Industry In the Pacific Rim. The Collegiate Aviation Review International, 8(1).
Tarmadi, R. C. (2020). Aktivitas marketing communication dalam meningkatkan brand image dan brand awareness di Cathay Pacific airways Indonesia= Marketing communication activity in increasing brand image and brand awareness at Cathay Pacific airways Indonesia (Doctoral dissertation, Universitas Pelita Harapan).
Wong, K. M., & Musa, G. (2011). Branding satisfaction in the airline industry: A comparative study of Malaysia Airlines and Air Asia. African Journal of Business Management, 5(8), 3410-3423.
Zgurovsky, M. Z., & Zaychenko, Y. P. (2020). Big Data: Conceptual Analysis and Applications. Springer International Publishing.
