{"id":333,"date":"2011-08-19T11:07:54","date_gmt":"2011-08-19T01:07:54","guid":{"rendered":"http:\/\/blogs.unsw.edu.au\/knowledgetoday\/?p=333"},"modified":"2011-08-19T15:10:01","modified_gmt":"2011-08-19T05:10:01","slug":"qantas-branding","status":"publish","type":"post","link":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/blog\/2011\/08\/qantas-branding\/","title":{"rendered":"Qantas branding: does the maths add up?"},"content":{"rendered":"<p><strong><a href=\"http:\/\/blogs.unsw.edu.au\/knowledgetoday\/files\/2011\/08\/deanwilkie.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignleft size-full wp-image-338\" src=\"http:\/\/blogs.unsw.edu.au\/knowledgetoday\/files\/2011\/08\/deanwilkie.jpg\" alt=\"\" width=\"90\" height=\"98\" \/><\/a><\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Dean Wilkie<\/strong><\/p>\n<p>I have been thinking about Qantas\u2019s moves to start a new airline up in Asia.<\/p>\n<p>Starting a new airline from scratch means that consumers will hold absolutely no information about the new brand. Nothing beats a fresh start right?<\/p>\n<p>Wrong.<\/p>\n<p>I really question Qantas\u2019s approach from this perspective. Qantas as a brand has strong positive associations, which consumers will use in forming brand judgments and in comparing to alternatives. A quick search of the internet and you can see that in 2006 it was voted the 2nd best airline in the world. In 2011 it was <a href=\"http:\/\/en.wikipedia.org\/wiki\/Qantas\">voted the 8<sup>th<\/sup><\/a> <a href=\"http:\/\/www.airreview.com\/Qantas\/index.htm\">best<\/a>.\u00a0A dramatic drop but still, Qantas is seen as the eight best airline in the world and it currently has a\u00a0<a href=\"http:\/\/www.bbc.co.uk\/news\/business-14538726\">14% share <\/a>of the Asian market.The point is that Qantas has equity where as a new brand has none.<\/p>\n<p>\u00a0The next thing I want you to consider is something called the order of entry effect. Essentially, in many categories a brand\u2019s market share has been shown to decrease with its entry position. The later a brand enters, the lower the brand\u2019s share. There are several economic reasons but from a marketing perspective, consumers will learn more about earlier entrants than later entrants. The more you know about a brand, the more likely you are to purchase it. To illustrate, the market share of airlines in the domestic market is roughly <a href=\"http:\/\/www.centreforaviation.com\/news\/2011\/01\/12\/virgin-blue-and-skywest-sign-10-year-strategic-alliance\/page1\">Qantas (65%)<\/a>, Virgin Blue (20%), Jetstar (10%), Tiger (5%). It is no coincidence that it follows the order in which these brands entered the market.<\/p>\n<p>\u00a0My rough calculations have it that this new brand into the Asian market will be at least the 20<sup>th<\/sup> entrant. Using the average order of entry estimate, the 20<sup>th<\/sup> entrant into a category will get about 2.4% share. This is based on having parity with all other entrants on every other variable. In the airline category, this would be advertising, number of planes, flights, price, service, lounges etc. If this new airlines was at a disadvantage in any of these (which it will be), the market share will be even lower. In addition, the connection we have to Qantas because it is an Australian airline is the same connection every consumer will have with its local airline carrier. (Another barrier to consider).<\/p>\n<p>\u00a0So you have to ask the question, does it make sense to launch a new airline or should they try and improve the competitiveness of its existing brand which has 14% share.<\/p>\n<p><em><a href=\"http:\/\/www.asb.unsw.edu.au\/schools\/Pages\/DeanWilkie.aspx\" target=\"_blank\">Lecturer Dean Wilkie<\/a> is an expert in branding at the Australian School of Business.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 \u00a0 \u00a0 \u00a0 Dean Wilkie I have been thinking about Qantas\u2019s moves to start a new airline up in Asia. Starting a new airline from scratch means that consumers will hold absolutely no information about the new brand. Nothing beats a fresh start right? Wrong. I really question Qantas\u2019s approach from this perspective. Qantas [&hellip;]<\/p>\n","protected":false},"author":336,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[368,12712],"tags":[12733,605,12705,12731],"class_list":["post-333","post","type-post","status-publish","format-standard","hentry","category-marketing","category-tourism","tag-airline","tag-asia","tag-marketing-2","tag-qantas"],"_links":{"self":[{"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/posts\/333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/users\/336"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/comments?post=333"}],"version-history":[{"count":3,"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/posts\/333\/revisions"}],"predecessor-version":[{"id":335,"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/posts\/333\/revisions\/335"}],"wp:attachment":[{"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/media?parent=333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/categories?post=333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.unsw.edu.au\/BTOpinion\/wp-json\/wp\/v2\/tags?post=333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}