Alitalia

Issue

Alitalia faced extreme competition from low cost entrants in its core home market and falling share in its long haul routes. With a weakened balance sheet it needed to cut costs and required a capital injection to ensure its long term survival. Alitalia sought an evaluation to reposition the brand in its key routes and to use a rejuvenated brand as the common purpose of a revitalised workforce.

Approach

A value based approach was used to understand the key drivers of demand by class of travel, by route and by origin of passenger. In addition a quantitative assessment of the brand’s strength in each of these categories was conducted. From this fact base a clearer brand positioning was recommended focused on Italian style and hospitality. Furthermore a brand architecture was proposed that sought to differentiate Alitalia from its own lower cost operations and other low cost rivals. A brand education programme was instituted to inspire the workforce to live the brand and to deliver the brand proposition.

Effectiveness

The recapitalisation supported by the Italian government was completed successfully based on a new strategy of which the brand evaluation was an integral part. As a result Alitalia saw a rationalised but more profitable network.

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