It is a mass-based airline, therefore it must adopt a dual strategy by competing in the price segment as well as the premium segment. To achieve this differentiation, it may even develop a new economy brand that offers value for money, while retaining the original BA brand for its premium customers who are willing to pay extra for its services.
The brand differentiation will help to create a strong product positioning and sharp market segmentation for BA. It will clear its focus regarding its target customers and define and differentiate their aspirations and priorities, instead of following a “treat-them-all-the-same” approach.
The economy brand of BA will be able to derive great benefit from the strong brand identity of the original British Airways that is focused on premium quality and service. Therefore, within the price segment options, the customer may prefer the BA economy option, considering the BA brand value and the image of reliability that comes along with it.
The exceptional quality and services culture of the original BA brand, its investments in training, motivation and employee development, its wealth of learning and experience in creating a service oriented organization, are bound to provide incidental gains to its economy brand. So even within the price market, the BA economy brand could be in a position to stand out amongst other price competitors, with its service-oriented history, reputation, culture and employee orientation.
Along with the strategy on pricing, brand differentiation, and service quality, it is equally important to deliver the clear message to the potential customers. Therefore, effective and focused marketing and advertising strategies have to be in place to ensure that the customers get a clear understanding of the unique product offerings of the British Airways.