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Unit 9: Service Product and Operation
like passports and visa made, supplementary or facilitating services would be telephonic Notes
intimation, home delivery, travel information as well as destination information, etc.
At every moments of truth (MOT) occasion, like events, service interaction, seminar,
news, press conference, e-mail, person-to-person contact, etc., the service firm should
ensure positive customer experience.
The brand value proposition should always be the main plank for the firms strategy,
operations, service delivery and product development.
The firm should correctly measure the effectiveness of the brand building exercises. The
old method was to measure awareness, recognition and recall. But other methods like
measuring value perception of the customer, customer satisfaction, customer share of the
wallet, customer retention and customer advocacy or referrals are more effective
measurements of service brands.
Re-Branding British Airways
Case Study
ritish Airways, the airline with the imperial demeanour, was as much hated as
admired; hated by rivals and admired by customers as well as rivals. It was the last of
Bthe institutions (after banks like Barclays, Standard Chartered, etc., and insurance
companies like Lloyds took a drubbing at the hands of, first the Americans and then the
Japanese) that harked back to the Empire. It was Buckingham Palace, Beefeaters, Big Ben
and London Bridge all rolled into one. Its logo took on the colours of the Kingdoms
national colours of blue, white and red and had a straight arrow beneath the name, as if
underling the stiff upper lip disdainful superiority, rigidity and punctiliousness that the
English were once notorious for.
It was punctual (like Lufthansa), innovative (like Delta) in bringing upmarket products
like Club Class, and widespread (like the late lamented Pan Am and TWA) especially after
the takeover of the Australian airline, Qantas. It was known for its service, good food and
wine. It drove hard bargains with other countries and airlines for wider sky penetration
by using their clout with the British government and the threat of access to Londons
Heathrow Airport, one of the busiest hubs in the world. They could therefore afford to
have a higher tariff for their products and yet have full flights.
But it wasnt always this rosy for BA. Earlier, in the seventies, it had amalgamated smaller
regional airlines of the UK into its fold: British Overseas Airways Corporation (BOAC),
which flew passengers outside England, something like our Air India; British European
Airways (BEA) and British Caledonian Airways. BA was identified as the test case for
disinvestments by the newly elected Conservative government headed by Margaret
Thatcher in 1979. A brand audit revealed that for irate passengers, BA stood for Bloody
awful! Its service was perceived to be poor, its personnel insensitive and haughty. First
Lord King and then Colin Marshall initiated slow but inevitable changes in BA.
Under these two, during the eighties and the nineties, British Airways literally lorded it
over the skies. To drive home their advantage, they had phenomenal promotions and
advertisements. Saatchi & Saatchi, the wonder ad agency designed one catchy and award
winning ad campaign after another, getting the airline noticed, talked about and preferred
by travellers. Saatchi & Saatchi could do no wrong, it seemed. They had been instrumental
in correctly communicating, during the elections in the UK, Margaret Iron Lady Thatchers
Contd...
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