Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Essay Example

9REBRANDING AIR CHINA LIMITED

Production Schedule, Contract and Estimate (budget)

Production Schedule

Rebranding of China Air will be done in four phases which are; development of the new brand vision, determining of the new brand picture, development of a new brand asset management strategy and finally measuring the new brand asset management culture. The new brand vision will incorporate the company strategy and the vision. The team responsible for articulating this new brand vision will comprise the top management of the finance, human resource and marketing departments. This team will also be responsible for reflecting the corporate strategy, objective and vision. Determination of the brand picture involves understanding customer perception about the previous brand in relation to competitors. Determining the new brand picture involves determining what to do in order to improve customer perceptions of the brand. The brand picture also entails developing a brand image and the stronger the image, the more leverage Air china will enjoy. The next phase is the determination of appropriate strategies to enable Air china to achieve its brand vision. These strategies include; communicating the brand position, extending the brand, positioning the brand and pricing it at a premium. The final phase is to support a brand asset management culture. This culture is to ensure that the recommended strategies are implemented. This phase also involves devising measures of return on brand investment, establishing a culture which is the brand based commitment of management to the brand and financial arrangements for the brand.

Contract

Independent contractor agreement

This agreement has been entered into as of 18th May 2013 between Air China Limited (company) which is an airline whose headquarters are in Shunyi District, Beijing and Liu Xing Public Relations Firm (contractor) based in Shanghai China. The company and contractor hereby agree as follows;

  1. The contracting period runs from 18th May 2013 to 31st December 2013 unless terminated earlier. Either company should provide 30 days’ notice of termination to the other party.

  2. The contracting services to be provided by the independent contractor include all branding related activities such as development of the branding vision, strategies, logo, and brand asset management strategies, marketing the brand and measuring the new asset management culture.

  3. The relationship shall be such that the contractor is not an employee of the company with regards to all local, federal, and state laws.

  4. Compensation for the contractor’s services shall be paid monthly upon submission of an invoice by the contractor.

  5. Events of termination of the contract will include; death or incapacitation, Completion of the contract, 3 days’ notice of the company, and breach of any material agreement of this contract.

  6. Upon termination of this contract, neither of the parties involved will have any other obligations to this contract.

  7. The scope of work of this contract may not be altered unless it is by a written agreement signed by both parties.

  8. All notices and communication shall be in writing and hand delivered or through certified mail.

  9. The contractor must acknowledge and agree not to violate the company rules and policies in the execution of its duties.

  10. The contractor must also agree that all work done is property of the company including trademarks and logos.

China Air Limited Liu Xing Public Relations Firm

By: ………………………………… By: …………………………

Title: ………………………………. Title: …………………………

Estimates

Business Slogan Estimate $3,000

Business and Product Renaming $2,000

Corporate Identity Design Quote $5,000

Letterhead Design Estimate $2,000

Logo Conversion Estimate $2,000

Business Card Design Estimate $1,500

Corporate Video Estimate $3,500

TV Commercial Script Estimate $5,000

Video Marketing Estimate $5,000

Corporate Identity Design Quote $3,000

Website Redesign Estimate $5,500

Billboard Design Estimate $2,500

Business Slogan Estimate $4,000

Sponsorship of Arsenal football Club $15,000,000

Research and prepare a strategic proposal for rebranding

Building a strong brand is a very important aspect of brand and product management because it results in the actualization of higher long-term and short-term returns for organizations. Branding has become very prudent in the airline industry because flight experiences have become too familiar, boring and stressful. This has therefore pushed airlines to differentiate their services in order for them to be able to maintain their competitive edge in the industry. According to an Asian survey, 30 percent of passengers choose airlines on the basis of pricing while 35 percent do the sane on the basis of punctuality, meaning that the remaining 35 percent is influenced by other factors such as branding. Branding therefore enables airlines differentiate themselves and showcase their strengths beyond the basics of transporting a customer from point A to Point B. Brands therefore provide added value to both the company and the consumer, promote loyalty, positively affect share performance and provide a platform for long-term growth. Air china is the 10th largest airline in the world with regards to fleet size. Its logo is a phoenix pattern done artistically, transfiguring the word VIP. It was established in June 1988 after the Chinese government split the CAAC into six airlines one of them being Air china. Some of its corporate strategies have included mergers and going public and listing its shares into the London and Hong Kong securities exchange.

The new brand for air china will focus more on what the airline does rather than what it says it does. These branding initiatives aim to increase the number of customers flying through this airline, get customers to fly with this airline more often, and get customers to generate more profits for this airline per trip. Air china’s brand vision is to be the leader in the Asian region, and this is what provides direction to the brand strategy as well as operational and financial decisions to ensure this vision is realized. To achieve this brand vision, management must talk to the staff on a continuous basis, upholding transparency on decision making, high accessibility to the media, promoting a sense of loyalty to the customers, and a general friendly atmosphere. Purchasing new aircrafts and starting its own pilot training facilities will also come in handy since this will assure the customers that the airline is committed to safety and the pilots are well trained.

The brand picture will be about the total impression on the customer rather than a single product attribute. In terms of building a brand picture, Air china will be conscious and aware of the need to project itself according to its vision and values that include being affordable and low-cost, convenient, efficient, safe and simple. Air china therefore agrees to provide the lowest airfares in the region, a convenient and easy reservation system, a wide route network, friendly staff and personnel, and introducing destinations not covered by regular airlines.

The brand strategy is to create a lasting and impressive image in the minds of customers. The five essential elements for developing this strategy are meaningful appropriation of resources to produce substantive value, consistency to reinforce a distinctive perception in the mind of the customer, consistency and simplicity of the themes to ensure that the customers gets a hang of them and fitting the overall airline objectives. Its new slogan “Now anyone can fly” says a lot about its cheap air fares. While it plans on reducing its airfares, it will become the most profitable low-cost airline in the region due to economies of scale. This rebranding will therefore precisely target individuals who desire to travel at an affordable rate, and the point of differentiation from other airlines will be the widest network of destinations in Asia and lowest airfares. This will not only ensure that people do not only relate to the brand attribute but also to the brand beliefs and values. To prove that it delivers its promise, Air China will conduct campaigns that offer low-cost or free seats. This will not financially weigh down on the airline’s finances since these seats will be provided on the availability and a flight has to take place even if there is only one customer. This will be a good publicity stunt and good for the brand. Other brand extensions will include a travel credit card that provides flight reservation and air mile awards. To achieve this, it will go into a partnership with master card Citibank to strengthen its brand in Asia.

When it comes to communicating the brand, Air china will ensure that the brand will remain in the mental agenda of its consumers. This will be achieved through using all communicating strategies, developing communication strategies based on brand positioning and picture, using an integrated marketing communication strategy, executing the communication strategy across the organization and creating internal involvement through education and metrics. These strategies will ensure that air china gets publicity from all over the world especially through its new sponsorship deal with Arsenal football club which is the most popular sports club in the world. This form of advertisement will influence the attitudes of people although they will not consciously recall seeing the advertisement. The internet and print media will also be used to promote sales campaigns on free and low cost seats. Provision of loyal customers with exclusive promotion and events information will also be another advertising avenue through the customer database. Employees will also amplify a positive brand image by walking the talk.

When it comes to supporting a brand asset management culture, the projected returns on objectives and financial arrangements will be positive within one year of the implementation of this strategy. Air china will ensure that this new brand will be accepted at all levels of the organization by management dressing down to match with other employees, and therefore ensuring that Air china culture comes from deep down people’s hearts rather than from memos.

In conclusion, Air China’s successful new brand will start from a clear brand vision which is not only the work of the marketing department but all strategic departments to ensure internal consistency between brand vision and strategy and corporate vision and strategy. Consistency is a very key element in the Air china brand management since the lasting image in the consumers’ minds is as a resultant of a sum of impressions the customers receive from different sources. This rebranding is likely to boost share performance of Air China. In a nutshell, the brand vision will be to be the leading low-cost carrier in the region, brand picture will be to deliver its promise and enable anyone to fly, brand strategy will be to position itself as the leader in its product category and the return on brand investment will be calculated in terms of passenger load, financial returns and command of market share.