CMO - Aditya Birla Capital | Mentor for Leadership Development | Senior Executive Leadership - HBS
When I got the first email about AirIndia and Vistara “soon to be merged” few months back along with how the loyalty points will migrate my heart sank. And I was just traveling back by Vistara. This is another great airline and a brand - Vistara - TATA SIA Airlines Ltd. who is going to be nonexistent like KingFisher and Jet airways ( reasons may be different but purely as a customer this is how I feel). Being a Brand Marketeer and a Consumer who seeks “ Experiences “ what holds true every time and for all marketers to remember. 1. When there is Brand versus Business Economics in a boardroom, more often then not Business economics wins. This is a clear case where #AirIndia may be the country’s brand for an airlines with decades of experience but in domestic market it has never been the “ saught after” and there was always space for a carrier which provided full board service with experience. And experience does matter. One cannot wipe of years of bad experience as a memory but who is listening ? 2. Millions of Dollars spent in creating a brand is soon to be wiped off as again Business Economics and share holder value will win over consumer preferences, brand connect and loyalty. As Brand is emotional and intangible asset and Business nos are real and tangible. But is that true as then we wouldn’t have “ Tribes and loyalist “ who drive brands like Apple and their profitability. 3. Customer experience versus business outcomes again we see all the time that experience does get compromised and we don’t know what will happen in this case but we hope with a brand like Tata at the helm, they will deliver the promise and experience of Vistara now in AirIndia For all brand marketeers this is another case study of why not to be emotional both as a brand marketeer or as a consumer as finally in reality “Customer is Not the King”. Ps this I am writing as a consumer for a brand that I enjoyed flying and is again post travel feeling. Vistara - TATA SIA Airlines Ltd. Air India Limited #brandloyalty #customerexperience
The hue and cry of customer experience? Is the customer ready to pay? How much.? The customer asks for Re.1 being added by flipkart as platform fee. Yes customer experience was best, I loved it, but was it at a sustainable price point? One may argue, the rich customer is ready to pay more than indigo's economy customer. If yes, then pay for aur India business class. That experience will be better than vistara'a economy. It would have taken lot more customers for vistara in that price point to hit economies of s lake of the maginitude to make it as viable as air india. Customer experience is not stolen from us, customer expeirnce at that price point is- which was not as competitive. If it was, merger won't happen- no one butchers a cash cow. Inherently the argument is contradictory. Good brand should deliver business economics so much that no one submerged into anything except for hubris maybe, which is not case for this. The profit juggernaut apple is cited here. There prohibitively high price points cultivate profits that sustain business economics
Yes. As a brand manager and marketing perspective it's true regarding the experience and loyalty with vistara but Tata group is more regarding nation building and Air India resonate with that sort of imagery along with full carrier airline with wide international presence. During this competitive environment in order to sustain and survive we have to take business decision where we can minimise loss and achieve profit in long term Also for Apple tribe community we have #TribebyCroma along with Croma where u can visit and experience the apple products. Croma Tata Group Vistara - TATA SIA Airlines Ltd.
Well said Darshana & I couldn’t agree more on this !! Idea should have been to strengthen the partnership further, build perception that best service oriented carrier now backed unconditionally by Tata’s trust would have given exponential benefits. Sometime I wonder what’s so fascinating about changing names after such mergers, associations etc. First thing board addresses is wiping off such long footprints & renaming the whole venture. But yes, you mentioned who is listening? Vistara - TATA SIA Airlines Ltd. AIRINDIA LIMITED #brandrecall #branding #consumer #brandbuilding #consumertrust #rebranding
This is so true. For domestic purpose Vistara always made me feel safe and has been the first choice without doubt. Let’s hope Tata does justice to the quality Vistara offers.
Don't you worry. Tata will play it's part well!
Vistara merging with AirIndia shows business needs often win over customer feelings. A reminder that profits come before customer loyalty
Superbly captured Darshana, loyal customers are built on experiences, not just numbers. Let’s hope Tata can maintain Vistara's essence in Air India.
Vistara - TATA SIA Airlines Ltd. Will be missed terribly
So true, so many flyers are going to miss this airline.
Air India | TAS | XLRI
3moMy 2 cents. 1. I personally feel Air India is a much larger & well-known brand than Vistara, internationally & domestically (owing to multiple reasons such as network size, years in operation, historic public adulation etc.) - irrespective of how muddied that brand has become over the years. Going with the more recognisable brand seems a fairly rational choice to me. 2,3. One of the brands being 'let go' (so to speak) was inevitable; the only question that needs to be asked is which one would cause less erosion. Brand loyalty can always be built & rebuilt, but business operations & customer experience can't be risked for the sake of potentially favourable public perception. Variables like airline partner agreements & alliance benefits also need to be considered while making this decision, which I believe would serve customers & the organisation much better.