Mar 26, 2008

Oasis budget draws flak

HONG KONG - Low-cost carrier Oasis Airlines' creative and media review is attracting criticism from agencies over the budget that has been made available to transform consumer perceptions of the brand.

Oasis budget draws flak
The airline is allocating HK$10 million (US$1.3 million) for Hong Kong, along with $3 million and $2 million for Vancouver and London, its current destinations, respectively.

The creative account is currently handled by Ogilvy Group’s David, which secured the business six months ago.

“This budget is tiny, especially for the London market, which is the busiest airline market in the world,” said a source. “It is not only competing with other big airlines like British Airways, Cathay Pacific and Virgin Atlantic, but advertising costs in the UK are very expensive.

“With this budget, Oasis could possibly just afford to do online advertising, or it will need to take a strong tactical stance to stand out from the very cluttered airline advertising scene.”

The rebranding exercise is intended to enhance brand awareness, and reverse consumer perceptions of the airline as a no-frills brand to one, according to the request for pitch (RFP), that offers ‘free tasty meals and drinks, reliable performance, friendly service and excellent value for money for smart travellers’.

The airline itself is claiming that it is reviewing the business because of the need to shift its image, ahead of new routes that will launch to Europe and Australia by the end of this year.

Seven agencies have been invited to present ideas, with David included on the list.

The decision to review coincides with the departure of head of marketing Michael Wong, who initially hired David. “Much effort has gone into developing the strategy for the brand,” said Ogilvy chairman Royce Yuen. “The repitch is happening after some restructuring on the client-side.”

In addition to Wong’s departure, the restructuring is expected to see marketing and PR streamlined across Oasis’ different operating markets.

“It’s difficult and very time-consuming to maintain consistency in marketing and promotion across different markets, so the new management restructuring will be focusing on the functions of marketing, online and PR,” added the airline’s spokesperson.

The RFP calls for a brand positioning that ‘implies attractive fares without mentioning low costs’, and uses a ‘young, energetic and warm’ tone and manner. Significantly, shortlisted agencies will receive a $10,000 pitch fee.

“The company’s initial direction was to take the low- cost approach,” said a spokesperson.

“But this created a misperception among customers that we don’t offer anything else apart from cheaper air fares, and they are not aware of our products and services, as well as our award-winning brand campaigns.”
Source:
Campaign Asia
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