Question

Case 14.2 “Flying to Armenia” at the end of chapter 14 of the “Global Marketing” textbook by Gillespie, K., & Hennessey, D. Answer the following questions: For each of the five promotions discussed in the case, identify the target market, explain the motivation behind the promotion and suggest ways in which to measure the success of the promotion. Why do you think each of these promotions worked well in the Armenian market? Would these promotions be as successful in your country? Why or why not?

Answer 1

Armenia is a small country in only 11506 square miles with a population of 3 million. There are seven million ethnic Armenian living outside Armenia. They are deeply embedded in their own culture and attend Armenian churches, celebrate Armenian festivals, teach the language to their children with a great passion. Many Armenian live in USA, Europe, and the Middle East. The country separated from the Soviet Union in the 1990s and has been undergoing a transition from a communist framework to a democratic government. The country has with getting aid from the IMF, World Bank, The US, and The EU have stabilized their economy. By end of the 1990’s many multinational sets up operations in the country.

British airway target segment is the Expats who come to work for the multinational, business travelers, and the Armenian settled across the world primarily EU, USA, and the Middle East. British Airways planned a series of cultural and humanitarian events in Armenia.

The promotions initiated by British Airways to celebrate their second anniversary of the flight between London and Yerevan was as follows:

1. They supported the third international chamber music festival in Yerevan. Two Armenian musical ladies were flown in from London for the festival. This was primarily for the local business people who are happy to attend cultural activities.
2. Contribution to the orphanages $ 10 from economy class tickets and $ 50 from business class tickets were given to an orphanage in Armenia. The funds were given to the orphanage in a public function. This was to garner the support of the locals who feel that the BA is interested in supporting local causes.
3. A hot air balloon with British Airway branding was brought to Armenia for the first time. The balloon was set up in the opera square for a day. This is to build a good brand image with the local youth and create a young brand image.
4. British Airways ran a competition and posed the question on the local media. The people who called in and gave the right answers got to meet the crew and were given a ride in the balloon. This promotion again targeted young people and build a good brand image for young people.
5. BA introduced the executive club program to reward the frequent flyers with many benefits on getting preference on wait lists, getting points for using specific hotels and car rentals. BA ran a special offer for the executive club members at wheels. The wheel was patronized by expats. The competition's prize was a pair of ticket for any destination. This promotion was targeted to the Armenians based outside the country and the expats as they would be encouraged to use BA for their travel and get rewarded for the same.
6. The BA also launched “where in the world” competition. People were asked to write where they would like to spend Valentine ’s Day with the person they loved and why they wanted to go there. The event was announced on Hay FM a radio channel famous among young people. It generated publicity among the locals and also got mentioned in the press. This was a promotion initiated for the young people who would like to travel but cannot afford it. The young will get aware of the rand and might use BA for any future travels.

The success of the promotions can be measured by the publicity they created in the press and increase in sales post the promotions. The change in revenues prior to the promotions and post the promotions will also measure the impact of the promotions. The promotions were good as a brand building exercise and helped to create awareness among the locals.

The promotions worked well in Armenia because primarily the Armenian like to travel and 7 million reside outside the country. There are thousands of Armenians traveling in and out of the country. The Armenians would be happy to benefit from the frequent flier program. They can use the points to travel to other destinations of their choice. The Armenians working outside would be tempted to use BA, which is a well-connected airline. The youth will be aware of the brand and inspired to use the brand, which had promotions especially for young people like the quiz in the local press and reward travel in a hot air balloon. The youth also enjoyed the promotion where they wrote about where they would like to celebrate Valentines Day with the love of their life. The free ticket is an added prize, which generated a lot of interest in the local youth. The promotions suitably covered their target customers the Armenian working outside Armenia, the expats and the local youth who aspire to travel soon.

Yes, most of these promotions would work in the US as well. Like quiz for young people and hot air balloon rides. Air tickets as a prize for those who participate and win the contest stating what they would like to do on valentine day. The organizing of cultural events would also go well with a section of society. Supporting am orphanage would appreciate as well in the US. The frequent traveler's program is a great marketing strategy worldwide.

To conclude the promotions and marketing by British Airways was a well-rounded strategy targeting most of the target customer segment, potential customers and also create brand awareness among the local youth.