Brand Equity – The Success of Singapore Airlines
Nov 8th, 2010 by Eugene Chan
The brand, Singapore Airlines, resonates with luxury, comfort, extraordinary service and the quintessential Singapore Girl. It is the standard for all other international airlines and I believe this to be true. Having flown Singapore Airlines more than 30 times in my life between Singapore and Sydney, Tokyo, Seoul, Jakarta, Bangkok, Kota Kinabalu, Hong Kong, Kuala Lumpur and Bali, Singapore Airlines has never failed to impress me. Its healthy brand equity has really added value to Singapore Airlines and has arisen from the marketing strategies it has adopted.
The Singapore Airlines brand is widely recognised by most people around the world. It has good brand awareness. Singapore Airlines frequently communicates the value of its product through print media, television commercials, sponsorships (such as Sydney’s City2Surf race, the Singapore Youth Olympics Games and the Giant Panda Collaborative Programme) and publicity. It adopts the tag-line, “Singapore Airlines – A Great Way to Fly”, in all its promotions to convey the quality of the Singapore Airlines brand. It also occasionally uses “A standard of service that even other airlines talk about”.
For example, Singapore Airlines has generated much brand awareness and increased the perceived value of its products and services through its experimentation of new services from the time of its inception in 1972. It was the first to introduce hot towels, hot gourmet meals, video-on-demand, and complimentary beverages and headsets. It was the first to introduce the inflight telephone services with its KrisFone in the 1990s. It was also the first, in 1998, to introduce a panel of internationally-renowned chefs such as Matthew Moran and Gordon Ramsay to develop inflight meals. It was also the first to provide inflight email services, email check-in and text message flight alerts.
I specifically remember watching movies and playing Nintendo games on the in-seat televisions of Singapore Airlines aircrafts around 2000. I also remember receiving the colouring books and model planes when I was younger. Since then, that entertainment system (which now features a plethora of recent movies, documentaries, TV series, games, weather, news etc.) has become so advanced that it is now a feature which Singapore Airlines uses to differentiate itself from its competitors – it’s almost a like whole new product line, Krisworld. The suites on its A380s which have set a new standard of inflight luxury, space and comfort, the revamped business class with the widest leather seats and large LCD television screens are all features that have increased the perceived value of the Singapore Airlines brand. Very recently, Singapore Airlines was the first to introduce all business class flights between Singapore and New York/Los Angeles on its A340-500. Through innovation, Singapore Airlines has achieved quality customer service.
Singapore Airlines is also heavily increasing its brand awareness and increasing the perceived value of its brand through being the first to use new aircrafts. It was the first to fly the new Airbus A380 in 2007. This certainly was a marketing tool which Singapore Airlines used to increase its brand equity. I recall being in Singapore and seeing billboards and signs at the airport, along Orchard Road, magazines and on television promoting Singapore Airlines as being the “first to fly A380”. It even extended to the napkins and cards which I received on the plane – it was everywhere! Singapore Airlines was also one of the first to fly the Boeing 747 and Boeing 777. It went so far as to name sub-brand its aircraft – 747-Megatop and 777-Jubilee to further differentiate itself from its competitors.
Singapore Airlines also has one of the youngest fleet of aircrafts in the world (average age of each plane is 74 months compared to 160 months for other airlines). The constant investment in new aircrafts such as the larger, quieter first double-decker A380 and the more fuel-efficient B787 (Dreamliner) has allowed to save on costs such as fuel (15-20%) and maintenance, placing it in a sustainable competitive advantage. Its airlines spend less time in the hangar allowing them to spend more time in the air (13 hours per day compared to an industry average of 11.3 hours) and thus generate more revenue. The cost per available seat kilometre is just 4.58 cents compared to other airlines which range from 5-16 cents. Singapore Airlines also has little debt and has never posted an annual loss, which are strengths of the company.
Singapore Airlines has even developed a personality for its brand through the Singapore Girl, which is at the heart of its all advertising and its product – it is now a trademark and brand for Singapore Airlines. The iconic Malay sarong kebaya (that can be blue, green, red or burgundy depending on the rank) encapsulates the Asian hospitality and for me is associated with the luxury, quality and comfort of Singapore Airlines. Whenever I board a Singapore Airlines flight, it is guaranteed that I will be greeted almost incessantly with warm smiles by the well-dressed, elegant, courteous Singapore Girls with their hair tied neatly in a bun or in French Twists, their nails painted red and their eye shadows painted blue to match their uniforms. The attention to detail is just amazing – all flight attendants must bring a spare kebaya for all flights in case of spillage, tear etc. This attention to detail is lacking in all almost all other airlines I have flown, particularly the non-Asian airlines – they stand on the side without helping passengers stow the luggage, do not greet passengers, some look out of shape, wear ugly uniforms and just have a range of messy, inconsistent hairstyles. However, the cabin crew of many Asian airlines such as Malaysia Airlines, Cathay Pacific, Japan Airlines and Asiana Airlines are also very attentive to detail.
Singapore Airlines’ exceptional inflight service is rooted in its vigorous training of cabin crews for four months, which is double the industry average. The prestige of the job helps build up the Singapore Airlines brand. Potential cabin crew are chosen from China, Taiwan, Indonesia, Hong Kong, Singapore, India, Japan, Malaysia and South Korea so that language barriers are minimised. They are interviewed and only 20% pass through to the training stage which includes deportment, wine appreciation and etiquette courses. Once they graduate from the ‘finishing school’, their performance inflight is reviewed by an inflight-supervisor for 6 months. All cabin crew undergo further training annually. It is no surprise therefore that Singapore Airlines won the 2010 World’s Best Cabin Staff Award (Skytrax).
Another factor feeding into Singapore Airline’s healthy brand equity is its large proportion of brand loyal consumers. It has the Krisflyer program which rewards passengers for flying on Singapore Airlines and its Star Alliance partners, spending on partnered credit cards and hotels with miles that can be redeemed for flights and vouchers. Higher-tiered Krisflyer members can also enjoy priority check-in, boarding, baggage handling, extra check-in baggage allowance, and complimentary access to first class lounges and even Star Alliance lounges. Singapore Airlines is receptive to all consumer feedback and constantly strives to satisfy its passengers. For example, when my flight to Singapore to Seoul was delayed due to oil leakage at the back of the aircraft which caused a complete power shortage (no lights, no power to the engines, no air-conditioning), each passenger was compensated with $300 cash, $50 in meal vouchers at the airport and accommodation as the flight was an 11:45pm flight. Singapore Airlines, in effect, was trying to minimise the post-purchase dissonance. (We were lucky to be on the ground when this happened – who knows what would have happened if this occurred in the sky?!)
Overall, Singapore Airlines’ success has been partly driven by its robust brand equity. Its pursuit of excellence, customer-oriented decisions, innovation in service and technology, and value for its staff has helped differentiate it from its competitors. Whenever I fly Singapore Airlines, I expect an unprecedented level of service. I patronise Singapore Airlines because of its consistent yet ever-improving service, its smooth flight connections, reputation, almost impeccable safety, and price which accurately reflects the value of its service.
Essentially, my trust is in the Singapore Airlines brand – it is seriously a great way to fly.
All information has been sourced from:
http://www.freeonlineresearchpapers.com/insider-singapore-international-airlines-success-secret
http://www.worldairlineawards.com/Awards-2010/cabinstaff2010.htm
http://www.brandchannel.com/features_profile.asp?pr_id=209
http://www.apmforum.com/strategy/siabranding.pdf
http://www.capacityisdevelopment.org/doccs/capdev_casestudy/Singapore%20Study.pdf
http://www2.warwick.ac.uk/fac/soc/wbs/subjects/om/teaching/service/sia06.pdf
3 Responses to “Brand Equity – The Success of Singapore Airlines”
We are very impressed to learn about the Success story of Singapore Airline through this link.
Our Company, FMC Technologies will be having our yearly internal communication meeting in Singapore this year and we would like to invite one of your Marketing professional to share with us on marketing strategies and practises that positions SIA above other competitors.
It will be a half a day presentation on 27th July 2011 with representatives from US and Norway who will be joining us.
Please let me know who is the best person to invite.
Look forward to hear from you.
Yours Sincerely,
Rachel Lim
FMC Technologies Singapore pte Ltd
DID: 65593736
Hp: 96839763
Email: rachel.lim@fmcti.com
my message 166!!!
you didn’t do your research well. It was PIA who introduce the in-flight entertainment system hot towel etc.