Airline sheds low-cost image

Jetstar is attempting to reshape its image in this country as it moves into its sixth year of flying domestic routes.

The Qantas subsidiary says it changed its marketing tack after taking a good hard look at itself beginning in November 2012.

Rather than pushing only low prices, the airline is promoting a more mature brand, now supporting an environmental project in the Bay of Plenty, giving away tens of thousands of cabbage-tree seeds and supporting charities.

The head of marketing for Jetstar, Liz McCarthy, said the airline was in the last part of a new phase of image building in New Zealand.

It began domestic operations in 2009 but its first day of flying was hit with delays which continued for months and there was bad publicity over service.

"When we had a look at the market ... we acknowledged we didn't have a great start. We needed to really focus on what we needed to do from a customer point of view," McCarthy said.

"We spent time with people who understood the market strategically and held up a mirror to us and said, 'This is what you look like in New Zealand and this is what you've got to do to make some changes'."

So the airline went back to the drawing board.

The first stage of the project was to advertise and communicate how low-cost carriers operated.

"The first phase was talking about that model -- why there is dual-door boarding, why the person checking you on is also on the plane," she said.

The airline then moved into promoting its on-time performance which has improved markedly over the past two years after a change in schedules to avoid the risk of weather delays in Queenstown, improved buy-in from all those turning around aircraft on the ground and better communication with passengers on the need to get to the departure gate on time.

Jetstar tangled with Air New Zealand during its on-time performance campaign with dispute over how valid comparisons were.

The latest stage has been the attempt to deepen its connection to New Zealanders, the environmental campaign and giving $30,000 a quarter to charities.

"This is about working closely at a ground roots level with people in New Zealand to make them realise that we are here to stay," McCarthy said.

Jetstar would still promote low fares but wanted a more rounded brand strategy.

"It is at the heart of who we are [but] in the past [it was] a little too rational and relied too much on price to tell the story so we needed to build in more of an emotional level to the brand."

McCarthy had experience in financial services marketing and said aviation was a tough environment.

"With the shocks that can hit, aviation has got to be one of the most brutal. But my experience is that humans are very forgiving."

The reputation of an airline could be damaged quickly no matter whether it was a low-cost carrier or offered full service, she said.

Mike Lee, a senior lecturer of marketing at Auckland University's business school, said the Jetstar move was positive.

"I think it is a big change in terms of their marketing strategy but it does make sense because the cheap and cheerful brand in any market is never the enviable place to be," Lee said.

"It's incredibly hard to defend because all competitors have to do is match your price and then your unique positioning is gone."

As brands matured they did tend to do more "symbolic positioning".

- By Grant Bradley of the New Zealand Herald

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