CANNES YOUNG LIONS 2014
DIGITAL BRIEF PROUDLY SPONSORED BY:
Qantas – Value for Money (Domestic)
Excite Australians about what they get when
they pay just a little bit more for Qantas.
Campaign: Qantas – Value for Money (Domestic)
Simple Brief: Excite Australians about what they get when they pay just a little bit more for Qantas.
Background & Consumer Insight
The Market
Qantas is Australia’s National airline, with a proud history that spans over 93 years. Qantas is Australia’s only fullservice airline - bags, food & drink and entertainment is included with every fare.
The Domestic market (flights within Australia) is becoming increasingly complex and cutthroat.
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Oil prices have reached record levels;
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The world economy (and therefore premium business travel) has been subdued;
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Airfares remain at unsustainably low levels due to aggressive capacity increases and a spiraling pricing
war (led by foreign-capital-backed Virgin Australia);
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Qantas and Virgin Australia have both signaled significant financial losses this financial year.
Pricing Models
Airlines operate under an extremely complex pricing model and each airline bundles their products differently.
Very generally:
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Low cost carriers (e.g. Jetstar, Tiger) advertise “seat only” lead-in fares and later add on additional fees
for bags, food, drinks and entertainment. Customers now generally understand the seat-only low-cost
offering and are wary of additional fees with these carriers;
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Virgin Australia offers different inclusions on different routes. These offerings might not only vary by
route but also on airline ‘fare-type’;
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Premium Carriers (Qantas) - baggage, food & drink and entertainment is included on every Qantas fare.
There appears to be a price elasticity paradox: Customers are becoming increasingly sensitive to price, led by the
boom in low cost air travel and the transparency brought by the internet. However, at the same time, customers
are also becoming less sensitive to price as lower air travel prices overall means that, in real terms, the cost of
the airfare has become a smaller and less expensive part of the journey/trip.
Pricing is further complicated by market factors and taxes that are beyond the control of the airline. The price of
airline fuel has increased tremendously over the last ten years and there are new taxes (e.g. Carbon tax) on top
of existing airport charges that all need to be accounted for and included in the single final fare advertised to the
customer.
Price vs Value
When customers see only the lead-in price advertised it’s not immediately clear exactly what they get for their
money.
Customer value perception is derived from both “price” and “quality” factors. Price is the most important single
driver of value perception, accounting for 30%. However, quality (which is made up of many different factors)
accounts for 70% (source: The Customer Value Analysis study).
Price perception is a constant challenge for Qantas. We need to change the focus from “price” to “value” and
demonstrate Qantas’ strong value proposition.
Among those who have not flown with Qantas, we are perceived to be priced higher than our competitors and
are seen as low value for money. However, for customers who do fly with us and experience our superior
product and service, there is an understanding of the price premium and this is not seen as “expensive” but
understood as value for money. (source: The Competitive Brand Monitor and Customer Satisfaction
Monitor).
Marketing Objective
While we are constantly in market with great tactical offers /sales, we need to better demonstrate the value that
Qantas provides every day.
For Qantas’ target market:
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Ensure they understand the inconsistent offering of other unbundled and part-bundled offerings of
other airlines;
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Demonstrate Qantas’ superior value for money through the “all inclusive” fare offering and superior
product and service.
Because we know that our flying customers understand the value that Qantas offers for the price premium, the
campaign should result in not only awareness but trial.
Our existing customers should feel good about their airline choice.
Target Market
Segments that will make purchase decisions based purely on price are not within Qantas’
target market (these are Jetstar’s target segments).
Our 2 key segments can be identified by:
Leisure
Business
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Travel relatively frequently for leisure (both domestically and internationally)
High income
Driven by the quality of the experience but still price sensitive
Particularly values: Seat Comfort, In flight experience, FF loyalty program and
privileges
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High frequency of travel (mainly domestic)
Tend to fly in premium cabins
Driven by ease and time efficiency and influenced by ‘brand’
Price is less important (than Leisure and all other market segments)
Particularly values: Point to point convenience, seat comfort, in flight experience,
Lounges, FF loyalty program and privileges
Most of Qantas’ recent domestic value-for-money advertising has focused on the Business
market.
For this brief, please concentrate on our Leisure market segment.
Why is it believable?
Price Comparison
Generally, Qantas does charge a price premium – for a premium product and service. Qantas also doesn’t add
hidden charges for bags, food and drinks, and entertainment.
Sample current market pricing:
Route
SYD – MEL
BNE – MEL
MEL – PER
ADL – SYD
KGI – PER
Virgin Aust Fare
(no bag)
$119
$155
$245
$125
n/a
Virgin Aust Fare
(incl bag)
$135
$169
$269
$139
$205
Qantas fare
$145
$185
$279
$159
$215
We suggest you look at Qantas’ fares compared to competitors and research the price differentials and the
inclusions/exclusions on offer (food, drinks, entertainment).
Qantas’ Offering
Qantas’ price premium is more than worth the additional value.
Qantas has a superior quality position in the market. Our research shows there are 4 elements that Qantas excels
in over competitors that drive this leading position:
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2.
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4.
Brand
Inflight product
Quality airline factors
o Schedule
o Lounges
o Ease of booking
o Safety
Flight Experience
o On time performance
o Cleanliness
o Inflight Service
o Baggage delivery
(source: The Customer Value Analysis study).
More details on Qantas’ products & service benefits:
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Faster, smarter check in – the only system of its kind anywhere in the world;
Australia’s most on time major domestic airline. The Australian Bureau of Infrastructure, Transport and
Regional Economics releases OTP (on time performance) stats every month. In 2013 Qantas was the
leading major carrier every single month. This is the first time any airline in Australia has won 12/12
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months, and Qantas’ 5 year running winning best OTP for the year;
Q-Streaming on selected flights – giving customers direct access to over 100 hours of entertainment
through customised iPads on board;
Qantas Frequent Flyer - Australia’s best Loyalty program;
Domestic Lounges – quality and quantity;
Domestic Dining - menus in partnership with Neil Perry, delivering the finest dining experience in-flight
and in our Lounges.
The Tone
Qantas is The Spirit of Australia. Our tone reflects the very best of Australia – inspiring, proactive, ambitious,
stylish, dedicated, respectful, genuine, can-do attitude, courageous, professional, and trusted.
For all digital work, simple and beautiful design is key.
We suggest you review current Qantas and competitor work.
Region and Markets
Australia – national (focus on Sydney / Melbourne / Brisbane / Perth / Adelaide).
Budget
We don’t want budget to restrict you from coming up with your “big idea”.
As a guide, a reasonable ‘big idea’ digital production budget would be $200-$500K (excluding media activation).
What does success look like?
The campaign should excite Australians about what they get when they pay just a little bit more for Qantas:
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“Lead in pricing” is not a great indicator of what you actually have to pay (unless it’s a Qantas price,
which is consistent and all inclusive of food, drinks, bags and entertainment)
Understanding that everything is included with every Qantas fare
Understanding that Qantas has superior product and service offering
Understanding that Qantas price premium is more than worth the additional value
The campaign should also encourage flyers who are not in our customer base (because of
price perception) to reconsider, and trial, Qantas.
Timings
No specific timeframe constraints or requirements.
What we want from you
Entrants in the Digital category are required to deliver a marketing idea that uses digital to solve this business
challenge. Consider social media, mobile, tablet and websites etc. Teams will comprise of one copywriter and
one digital designer, working together to respond to the digital brief. Note that we are not looking for the
creative to be built; we simply require a digital idea.
Your entry will be judged on the following criteria.
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Is there a big idea?
How innovative is the idea?
Creative quality of execution
Degree of difficulty within the category
How well the message is communicated?
What you need to submit:
Entries must be submitted online in 2014. No hard copies will be accepted.
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We’re looking for out-of-the box digital marketing initiatives and we hope yours stands out from the
crowd;
Provide a title / theme for your idea;
Supply your campaign for an online execution/s as a storyboard;
You may supply your response as a single storyboard or as multiple storyboards, maximum size A3;
Supply your storyboard/s as a PDF or JPG file, maximum size of each file is 15MB;
If you are supplying multiple files, upload each file individually as an attachment. A maximum of 5
attachments may be submitted. Please include the names of your team in the file name/s and number
them if supplying campaign e.g. 1 of 3;
Submissions must be original work created by the entrant team;
No agency branding is allowed on the storyboard/s.
When we need it:
Please submit your entries online at http://www.ozcannes.com.au by 5pm AEDT Friday 4
entries will not be accepted.
th
April 2014. Late
What happens next?
If your entry is judged to be one of the best, you will be shortlisted and progressed to the second round of
competition.
In the second round you will receive a new Digital brief to respond to within 24hours.
More information and get connected:
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Visit ozcannes.com.au for more information on the competition
To be part of the Young Lions community, ‘Like’ the News Corp Australia Facebook for updates on the
competition and finalist’s announcements
Speak to your News Corp Australia representative for more information
SOURCES
All cited studies have been commissioned by Qantas and conducted by independent research agencies.
The Customer Value Analysis (Ergo)
The Competitive Brand Monitor (IPSOS)
Customer Satisfaction Monitor (Acuity)