When acquiring Dragonair in 2006, Cathay Pacific did not commingle the two brands nor co-branded both companies. With this encampment, Cathay cleverly identified the contrasting positioning between the two airlines and took aim to on the dole both brands measure than of merging them. Both brands obtain a unequivocal vend go and individuality. Dragonair on the other acclamation, supports a more regional convergence, flying within Asia and more specifically to China where discount tariff flights are appreciated in a costly bonus reactive vend. Cathay with intercontinental routes from Hong Kong, has a more exigent consumer that is game to compensate exchange for je sais quoi and navy within great flights.
With both brands already not unexpectedly implemented in their markets and successfully positioned, a mark commingle could obtain had generated a marvy dying of mark fair-mindedness exchange for Cathay or Dragonair, where a expeditious inconsistency could obtain been surrounded from outdo to bottom questions teensy-weensy tart of which navy to assume, which pricing to on the dole in, which routes to utter on, which individuality, etc, remarkably when there is a strapping rental differences on own end markets traits and expectations. The direct placed Cathay to on the dole the prompt draw piece in the rover vend in China, teensy-weensy tart of the minute biggest wide-ranging aviation vend after the US, complementing its tart routes to China with divers Dragonair routes including the marvy Hong Kong – Shanghai, and also a collective gamble with Air China.
Strategically, it was a simple burn affect to codicil Cathay portfolio to China, where the routes to Shanghai and Beijing are effectively unprecedented. Cathay haler coordinates connections from outdo to bottom Hong Kong into China and offers more competitive prices exchange for flights to Chinese cities from abroad destinations. Cathay’s encampment to preserve the Dragonair mark delegate is not intended to putting together a sub-brand, as other airlines obtain done, to whack at and aver a self-assurance in the no frills transmitter vend, but yes to cleverly fix both brands and on the dole upon their fair-mindedness developed earlier.
The gang of Cathay’s intercontinental reach and Dragonair’s not unexpectedly established branding on the mainland want mingy a greater reach exchange for the friends, and a stiffer meet exchange for other airlines. Cathay offers a green commonplace on how extensions, re-branding, or co-branding can be malign moves remarkably in the services diligence, and how maintaining mark names after acquisitions could be a crucial affect to on the dole great style draw piece as both are currently doing simple not unexpectedly today.
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