Strengths of Cathay Pacific Airways In Terms Of Branding Strategy
Abstract
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 CPA in the pacific Asia region. Thus, this study aims at identifying CPA’s 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. Furthermore, to attract prospective clients and retain customer loyalty to the brand.
Keywords: Cathay Pacific Airways, branding, aviation, customer loyalty.
Chapter One
Background
Cathay Pacific Airways is an airline based in Hong Kong operating for the last 75 years. CPA engages in passenger services, aircraft maintenance, catering, and cargo handling. The airline takes pride in being the “Heart of Asia” as a premium carrier. It is incorporated into the Swire group of companies in Hong Kong that include 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.
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.
The airline adopts an act locally, think globally approach in developing and marketing its brand image. The strategy aims at helping the company adapt to the local market while maintaining a global image. One adaptation of the carrier is cheaper flights in the Chinese market through its subsidiary Dragonair. The success of the airline has been contributed to by, among other strategies, advertising and branding. The airline presents its brand in unique ways (Du, 2017). Thus, this research proposal intends to identify the strengths of CPA concerning its branding strategy.
Statement of the Problem
For many years numerous airlines such as CPA 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 CPA in the pacific Asia region. The research intends to determine the strengths of the airline’s branding strategy that helps it command such market share in the region.
Aim of the Study
The study aims at identifying CPA’s 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. Also, the study aims to identify the impact of its branding strategy on the company’s positioning in the aviation industry.
Objectives.
The study’s main objective is to identify the strengths of CPA in terms of branding strategy. Other specific objectives are to determine indicators that shape brand strategy at the airline and the impact on customer loyalty in the region. Moreover, the study will identify how its branding strategy contributes to the airline’s emotional connection with passengers, product and service satisfaction. Also, the study will investigate how the airline’s brand strategy affects the company’s positioning in the Asian aviation industry.
Significance of the Study
In the aviation industry, it is assumed that the image of a company’s brand is the brand image in the market. However, the brand reflects people’s requirements in service or product delivery, and thus, it is necessary to study customer’s perceptions of a brand. Therefore, understanding the branding strategy of CPA will provide insights to managers and marketing teams with strategies they can implement to boost their company image. Also, it is essential to airline industries to bring a greater understanding of 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. Besides, it may unearth areas that the airline may invest in to boost its brand image.
Chapter Two
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. According to Kapferer (2012), the brand image exists next to the customer. The image refers to customers understanding all brand cues derived from the firm’s product, communication programs, and services. Besides, customers typically associate with product brands that they are familiar with and have a good perception of the product as it increases their ease of purchase and reliability. Thus, airlines use different dimensions to develop their 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 enhances product visibility in the market. Service industries form strong brands by being distinctive and consistent in showcasing their messages and performing their essential services well, resulting in building customer loyalty and emotional love. 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 by implementing branding strategies in the aviation sector, which often requires modifications to match passengers’ specific needs, such as comfortable seats. Building solid brands means focusing on being different, which enhances brand presentation. Also, it involves emphasizing standing on essential areas to target customers, providing it better than a firm’s competitors. 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. A strong branding strategy in airlines is attained through a steady supply of loyal clients who give the brand stable incomes through sales. Besides, Wong & Musa’s findings will aid Cathay pacific in adopting strategies that accomplish product awareness. 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). Brand awareness is achieved through marketing strategies like advertising, unique products and services, and emotional connection with the consumers.
The driving factor in the seven decades of operation in CPA has been characterized by unmatched dedication in extending quality services to passengers. 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. Cathay pacific commercial class is characterized by modern amenities available in the aviation sector. CPA has a training program to familiarize staff with the branding objectives of the company. The training is centered on listening to the passenger’s demands, eloquent communication while addressing the client, and resolving customers’ concerns (Dechawatanapaisal, 2018). Moreover, the airline utilizes innovative branding that entails adopting proven technology methods to advertise and create awareness of the product. Besides, CPA developed a mobile app that provides customers with real-time data on flight schedules, departure, and arrival intervals (Lin, 2015). Effective communication strategies are essential in company branding.
Research Questions
i. What are the branding strengths of Cathay pacific airways?
ii. What are the indicators that shape brand strategy at the airline and the impact on customer loyalty in the region.
iii. How does Cathay pacific brand ensure innovative branding strategies?
iv. How does branding strategy contribute to the airline’s emotional connection with passengers, product and service satisfaction.
v. How does the airline’s brand strategy affect its positioning in the Asian aviation industry?
Hypotheses
Based on the objectives and aims of the study, the hypotheses are as follows:
i. H0: The airline’s brand significantly influences it its revenue and position in the Asian aviation industry.
ii. H1: There is no significant influence in the airline’s revenue and position in the Asian aviation industry by the firm’s branding strategy.
Chapter Three
Research Methodology
The research methodology will consist of a mixed survey method. It will be performed using qualitative and quantitative stages. The first stage will involve a qualitative stage that will include data collection using surveys. The surveys will be structured to only collect relevant data on the strengths of CPA brandings strategies. The information gathered will be qualitative 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). The second stage will involve a quantitative stage that will involve model tests and modeling data for analysis. The targeted population to participate in the study are passengers flying CPA, experts, marketing professionals, and managers in the aviation industry. The group has extensive experience and knowledge in the ins and outs of what drives the industry. Data collection will be done using structured questionnaires and in-depth interviews.
The study will use targeted sampling, a form of non-random sampling where samples are selected based on a researcher’s judgment regarding the required features of the samples and expected answers to the questions. The method is advantageous in sampling populations geographically dispersed or when certain specific information is required (Allen et al., 2019). In addition, the approach prevents the collection of nonspecific data.
Research Reliability and Validity
The study’s validity can be assessed using either face validity test, construct validity test, content validity test, criterion validity, or discriminate validity test based on the situation and prevailing conditions. In this case study and content face validity, discriminate validity, and convergent validity will be utilized. As the study is descriptive research, the emphasis will be on external validity (Reynolds, Simintiras, & Diamantopoulos, 2003). The study will focus on generalization with other players in the industry.
Data Analysis
The qualitative part of the study involves the distribution of questionnaires that contained Linkert’s five spectrums. The data will be analyzed using ANOVA, correlation tests to assess the relationship of CPA branding to its position in the industry. Also, Structural equation Modelling will analyze and identify direct or indirect relationships in the brand strategies and performance of the airline.
Ethical considerations
The questionnaires will not gather any personal data from the respondents. Also, participation in the interviews and filling of questionnaires will be voluntary. I will first seek the consent of different managers before inviting them for interviews. Also, the researcher will handle any data collected confidentially. Respondent’s privacy during and after physical interviews will be guaranteed. The questionnaires and audio recordings will be destroyed after the research.
Limitation
Based on the sampling approach used, the necessities of the approach pose limitations to the study regarding accessing all CPA destinations. However, the chosen samples are those that are accessible and have the required features. Moreover, the study may face challenges in gathering adequate 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
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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.
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