Asad Ali Bilal Yousuf A Brief History of Lufthansa 1926: Created by Weimar government. 1931: Had established itself as the most comprehensive air route network in Europe. 1935: Expanded to the USSR and China. Early 1940’s: Led coup against Nazi leadership. 1954: Allies allowed the recapitalization of Duetsche Lufthansa. Lufthansa History (continued) 1966: Resumed service behind the Iron Curtain under partner company names. 1990: The reunification of Germany. 1991: Lufthansa operates in the red for the first time since 1973. Mid 1990’s: Formed Star Alliance. Early 2000’s: Began to sell off diversified business components. Lufthansa Today Deutsche Lufthansa AG is the undisputed No. 1 airline in Germany and Europe. Operates: more than 500 aircraft from hubs in Frankfurt, Munich, and Zurich. services approximately 250 destinations. Known in the airline business for its innovation. In-flight internet connectivity (for first class). Personal screens for passengers (economy class). Airbus A380. Other Information Faces increasingly difficult conditions: emergence of low cost providers, rising fuel prices, increased international competition among scheduled flight companies. Skytrax World Airline Award as the best airline in Europe. Acquired full ownership of Swiss airline. Acquiring significant stakes in other airlines. Journey of a Brand Take a deep breath… Brand and Positioning A star studded airline A green airline Innovators/trend setters/Pioneers Value for money Social Media/handhelds Personalized care Convenience Zero compromises on Quality A well rounded target market (kids, couples, Businessmen) Aggressively expanding into growing markets (India, China, Russia) Mobile Business Model Browse for flights using mobile portal. Select your itinerary. Confirm your bookings. Generate mobile boarding pass. Confirmation-SMS with the flight information. Convenient check-in on cell phone. Alerts you when flight gets canceled . Mobile Marketing Strategy The Mobile Portal: – 18 months after its launch, the platform was rebuilt from scratch. – had originally been optimized for more than 2,000 mobile handset models. – 80% of customers that were using the mobile site were doing so from either an iPhone or a Blackberry. MM Strategy (continued) Core function of the portal: – To extend online ticketing and boarding processes to the mobile phone. – A customer booked a €5,000 itinerary that took in nine airports, all from his mobile phone, in under 9 minutes! Convenience, not the only driver: – Less agents are needed to conduct ticket sales, less ground staff are required to manage checkin procedures. Alliance with T-Mobile “T-Mobile’s portal is one of the top mobile sites in Germany, so we have a partnership with them. They are an important vehicle for us to push acceptance of our site among their customer base. But we have to balance this with the other carriers, although they all tend to want exclusivity.” ~ Marcus Casey, Director of global e-commerce and mobile services, Lufthansa Mobile Boarding Expansion of Mobile Boarding – Managed by Deutsche Lufthansa AG and MindMatics AG – A viral marketing phenomenon “Convenience, innovation and cost management are the drivers behind the mobile strategy of German airline Lufthansa.” ~ Marcus Casey, Director of global e-commerce and mobile services, Lufthansa Mobile Boarding Mobile Boarding: – Introduced in Spring 2008. – 18 months later -> Lufthansa celebrated one 1,000,000th mobile boarding pass. – End of 2009; 30,000 Lufthansa customers a week were using mobile boarding passes. – Based around a 2D barcode – QR code. – Delivered to customers by e-mail or through an SMS link to their mobile phone. Mobile Portal at a glance A mobile website Light and easy to use Faster handling, keying-in fewer entries and optimized user guidance All flight related information/actions can check in from their phone, select their seat & receive their boarding pass Entertainment (Ringtones, Wallpapers, Screensavers) Internet v. Mobile Internet We have recreated the entire booking path that we have on our .com site for our mobile portal • Allows the same flight Marcus Casey, Director of global e-commerce and mobile related ~actions, functionalities present on the services, Lufthansa mobile version • Offers Personalized content • Rates & Promotions – Rates to destinations closeby – iPad application download • Plan travel itinerary – Trip Finder – Book Hotel – Car Rentals Mufthansa: Ancillary Revenues M-commerce services: Travel insurance Hotel bookings Car rentals } Not the main business of Lufthansa Offer content of value along the entire service chain. During a strike mobile app users were up-to-date because of information rolled out on the mobile site. Lufthansa is not a content provider but the mobile channel helped it function like one. Partner in success: T-Mobile On deck advertising. Why T-Mobile? One of the most popular cellular companies in the country. Targeting mobile customers of T-Mobile. Lufthansa v. BMW Both are German brands. Lufthansa: service v. BMW: product. Target the best because they are the best. Global positioning: premium brand (top of the Brand Pyramid). Use of internet and mobile: innovation and better customer service. Strong branding and quality of service. Lufthansa Mobile Analytics Mobile users: 10% of Lufthansa boarding passes are processed on mobile phones. Growing at a steady 15%. Sustainable for the airline that managed to break-even despite huge losses to the airline industry. Lufthansa wants to exploit what the phone can do. Casey: “A self-selling proposition.” Think Global, Act Local Airline industry: E-ticketing: PIA, Air Blue, Shaheen, Bhoja. E-payments: PIA, Air Blue. Self check-in: Air Blue. Mobile version: ? Next steps: Mobile portal (and app) M-ticketing and m-payments! The Sky’s The Limit Thank You!