Strategisches Marketing-Management: Luxair & LuxairTours
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1 Strategisches Marketing-Management: Luxair & LuxairTours Dr. Martin Jager (Head of E-Commerce, Luxair & LuxairTours) 14. Dezember 2016
2 Agenda 1. LuxairGroup: Passionate Caring Responsible 2. Luxair & LuxairTours Strategic Marketing Market & Competitive Environment SWOT Analysis & New Positioning Marketing Vision & Strategy 3. Consumer Behaviour Market Research Insights New Persona Concept 4. E-Commerce: Digital Sales E-Services Online Marketing 2
3 Luxair Group Legacy Transportation Group since 1948 A Major Regional Player in Greater Luxembourg Area, primary Focus on: Comfort, Service Quality & Safety, Benchmark as Carrier of Choice Turnover Staff EUR 495 Mio FTE Founded 1948, Re-Organization 1961 Activities Luxair Luxembourg Airlines LuxairTours LuxairCARGO LuxairServices Main Shareholder of: Cargolux (43%) A Worldwide leading Cargo Carrier Luxfuel (40%) Owner Fuel Storage Facilities & Fuelling Services at LUX Airport EuroMoselle Loisirs (35%) Holiday Agency Group in Lorraine, France Passionate - Caring - Responsible 3
4 Structure & Shareholders Shareholders of Luxair S.A. State of Luxembourg 39.1% BCEE (State-owned Bank) 21.8% BIL (Bank) 13.1% LuxairGroup + Other Locals 12.9% Delfin SARL* 13.0% * New Shareholder since 2016, replacing Lufthansa A.G. Passionate - Caring - Responsible 4
5 Executive Committee Adrien Ney President and Chief Executive Officer Martin Isler Executive Vice-President Airline Alberto O. Kunkel Executive Vice-President Tour Operating, Sales&Marketing Marc Schroeder Executive Vice-President Finance Laurent Jossart Executive Vice-President LuxairCARGO Claude Olinger VP Human Resources Michel Folmer General Secretary Passionate - Caring - Responsible 5
6 Luxair Luxembourg Airlines Fly in Good Company Direct Flights from Luxembourg Connecting the Greater Region to Europe, Connecting Europe to Luxembourg Modern Fleet founded on Highest Standards of Quality, Comfort and Safety Easy Accessible Airport with Modern Infrastructure, Innovative Design, Fast Connections & Comfort Total of 45 Destinations, 20 Operated by Luxair and 25 further Destinations served with Codeshare Partners Roundtrips with Same Day Return Options Attractive Fare Structure as of 99 for Leisure Travellers, Maximum Flexibility for Business Customers Miles & More Miles on all Services 10 Bombardier Q seats 2 Boeing seats 4 Boeing seats Passionate - Caring - Responsible 6
7 LuxairTours Travel in Good Company LuxairTours Quality Holidays; Attractive Sun & Beach and City Destinations in Europe and Northern Africa Vakanz Quality Sunshine Holidays Happy Summer Best Value Beach Holidays for Families Metropolis European City Breaks Book & Fly Specials & Dynamic Offers Excellence High-Quality Packages Passionate - Caring - Responsible 7
8 Passionate - Caring - Responsible 8
9 LuxairGroup Further Business Units State-of-the art Cargocenter 293,000 m2 cargo infrastructure Annual capacity of 1.2 million tons Owned & Exclusive Infrastructure 2,500,000 Passengers assisted 1,860,000 Meals served 40,000 aircraft movements, +500 vehicles Passionate - Caring - Responsible 9
10 Agenda 1. LuxairGroup: Passionate Caring Responsible 2. Luxair & LuxairTours Strategic Marketing Market & Competitive Environment SWOT Analysis & New Positioning Marketing Vision & Strategy 3. Consumer Behaviour Market Research Insights New Persona Concept 4. E-Commerce: Digital Sales E-Services Online Marketing 10
11 Market & Competitive Environment Current Business Model Exposed to Multiple Challenges Increased Low Cost Competition in Luxembourg & Greater Region
12 SWOT Analysis STRENGTHS LG & LGIT with Focus on Product & Service Quality Brand Image in Home Market & Greater Region Small & Flexible Company & Motivated Staff WEAKNESSES Regional Focus vs. Complex Competitive Markets Internal Cost Structure Challenging Technical Environment & Resource Limits SWOT ANALYSIS THREATS World Economy Early Indicator Industry Limited Brand Awareness in Destination Markets Competition: Low Cost, Big Carriers, Surrounding Airports OPPORTUNITIES Strategic Focus on Direct Sales Channel Growth Direct Customer Access & Personalisation Differentiation: Digitalisation, E-Services & Mobile Worlds Passionate - Caring - Responsible 12
13 LuxairTours Strategy Sustainable Growth Growth Strategy & Market Development Secure Luxembourg Market Position: New Destinations & Customized Products, Keep Strategic Partnerships with Travel Agencies Growth French & German Market Shares: New Partners & Travel Agency Deals, Dedicated Sales Presence, Special Offers etc. Expand Direct Sales: Sales Actions, Summer / Winter Specials, Online Product Book & Fly, First Minute Offers, LuxiClubs, etc. Secure Luxembourg Market Position Increase Load Factor Growth French and German Market Shares Expand Direct Sales Passionate - Caring - Responsible 13
14 LuxairTours Dynamic Offers based on Customer Needs FROM Traditional Bochures AND Customer Needs FIXED Flight-Hotel PACKAGES at a FIXED PRICE VARIABLE FLIGHTS TO Dynamic Offers MULITPLE HOTELS & PRODUCTS DYNAMIC PRICES 14
15 PRICE Luxair New Positioning & Brand Image Best Value for Money New Luxair Best Value for Money Concept PRICE QUALITY New Business Class Concept Miles & More New E-Services Schedule / Same Day RT Options QUALITY New & Modern Fleet 15
16 New Digital Vision for Luxair & LuxairTours 2020 VISION Our customer is directly recognised at every touchpoint and gets individualised offers, services and products. Our digital platform is the main entry point for travellers in the greater region and we provide a seamless customer journey. E-COMMERCE KEY SALES KPI 60 % 30 % Market Share
17 Agenda 1. LuxairGroup: Passionate Caring Responsible 2. Luxair & LuxairTours Strategic Marketing Market & Competitive Environment SWOT Analysis & New Positioning Marketing Vision & Strategy 3. Consumer Behaviour Market Research Insights New Persona Concept 4. E-Commerce: Digital Sales E-Services Online Marketing 17
18 Market Research Key Customer Insights as Decision Basis Own Market Research & Customer Surveys LuxairTours How & when do you book your Summer Holidays Performance & Services Inflight Catering, Delays, Call Center Opening Hours Luxair & LuxairTours Inflight Surveys We would like to Know You Better External Market Studies TNS / ILRES Market Studies LUX / Amadeus Customer Surveys / Digital Travel Trends 18
19 Kantar / TNS Connected Life Study LUX Connected Customer Segments Targets Sales Potentials 19
20 Customer Behaviour I From Customer Lifecycle to New Persona Concept FROM CURRENT CUSTOMER LIFECYCLE Prospects Charm Classic Premium Circle Sleepers TO NEW PERSONA CONCEPT: Bring Clusters to Life BASIS: Booking Behaviour & Basic Demographics Fictional Characters to represent the Different Customer Types with a targeted Set of 1. Socio-Demographic, 2. Attitude, 3. Behaviour and 4. Customer Value SETS that engages with a Brand or Products in a similar way
21 Customer Behaviour Why Personas? = From What to Who! Basic Lifecycle Profile Assumption = WHAT is Paul? New Rich Persona Concept = WHO Paul really is! Profile Paul Durant Position: CEO Financial & Real Estate Company Personal Data: 54 Years, LUX Resident Miles & More Status: SENATOR LG: 23 Flights / Year (LGIT Packages: 0 Flights) Booking Patterns: 90% High Yield 21
22 Luxair Persona Concept 22
23 LuxairTours Persona Concept 23
24 Agenda 1. LuxairGroup: Passionate Caring Responsible 2. Luxair & LuxairTours Strategic Marketing Market & Competitive Environment SWOT Analysis & New Positioning Marketing Vision & Strategy 3. Consumer Behaviour Market Research Insights New Persona Concept 4. E-Commerce: Digital Sales E-Services Online Marketing 24
25 E-Commerce & Digital Marketing Mix 1 Play the Marketing Mix 2 Optimize Traffic & Conversion PRODUCT & SERVICES PROMOTION Brochures vs. Dynamic & Newsletters / Banners / Customer-Driven Products Display / Social Media Leisure vs. Business Posts / Promo Pages Sales Growth & Market PRICE Share Web PLACE Dynamic Pricing Special Discount Offers Upsell / Cross-Sell Focus on Own Digital Channels / Online Store / Mobile & Social Media 4 Analytics & Sales Performance 3 Drive New Digital Solutions Focus Customer Added-Value Google Analytics & Tracking Evaluate Online Sales Campaigns Mobile Worlds & Mobile App Management New Customer Portal & Booking Tools New E-Services (e.g. PayPal) Online Sales Figures & KPI Reports Manage Sales Action Plans
26 Digital Sales Actions Some Recent Examples Advent Calendar Specials Business Newsletter Edition # 8 Luxair Bestinations Action LuxairTours Summer Holidays 2017 LuxairTours Sunny Winter City Trips
27 Luxair & LuxairTours E-Commerce Sales Performance Luxair Web & Mobile LuxairTours Web +12% +30% % % E2016 B E2016 B2017 Luxair Web & Mobile Sales (in 1000 Pax) LuxairTours Web Sales (in 1000 Pax) 27
28 Sneak Preview New Customer Portal Key Element For Digital Transformation From 99 * 6.1 Mio. Visits / Year 2.8 Mio. Visits / Year
29 Focus on E-Services & Mobile Worlds New Manage My Booking Suite Luxair Mobile Apps New Luxair Web & Mobile Check-In New Luxair Fare Structure Display Simple, Transparent, Smart 29
30 Social Media From Customer Interaction, Branding and CRM to Sales Conversion & Loyalty Social media forms a core part of how travel companies build and sustain brand images and customer relationships H. Harteveldt (Atmosphere Research Group) Fans Fans KEY Challenge: How to Drive Sales Conversions! 30
31 E-CRM Experimental Pinball Concept What can we do to make them happy? What can we do to make them buy more? What can we do to make them promote us?
32 MassMail (major promos) MassMail reminders (if not booked) Birthday (promo-code) Loyalty program Cancelle d survey 1 st Booking Pre-departure 1 Pre-departure 2. SMS? Welcome home, SM: Share your memories, contest, public voting, review Abandoned Booking Onsite/ reminders Similar products, inspiration Similar products based on search No answer No Booking Survey No search - Best current offer Price Usability Flexibility Fly together&save (bring a friend) 9 months no booking How get the lowest price Help / call centre Air tickets? Re-activation/ Inspiration Reactivation offer XX% off
33 Last but not least: Sometimes Your Ad goes viral by pure Chance & Coincidence 33
34 34
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