How To Measure Brand Equity – British Airways Case Study

How To Measure Brand Equity - British Airways Vision One

How To Measure Brand Equity – British Airways Case Study

The UK Airline Market

It’s just over 20 years since low-cost airlines transformed UK air travel. Long-standing brands, once synonymous with air travel’s glamour and prestige, found their positions under attack from carriers who stripped back the frills and battled on price.  

In 2016, budget brand Easyjet carried far more passengers than any other UK airline, flying over 63 million people to their destinations. Second placed British Airways flew around 42 million.  However, their operating revenues tell a different story. In 2013/14, BA’s operating revenues were more than double those of EasyJet.

While both these companies run airlines, they clearly take a very different approach. What role does brand equity play in the way that they, and other airlines, reach their market?

How to Measure Brand Equity

It’s no secret that there’s more to a brand than its logo. Each time we encounter a brand – by seeing it, hearing about it or experiencing it – we build up a sense of what that brand is about. Some brands make us feel good. Others… don’t. But our perception matters because it affects our readiness to buy. We call this Brand Equity. At Vision One, we know that understanding brand equity is only half the story. The other half is knowing how to improve it. But you can’t do one without the other, and that means measuring brand equity in order to take the next step. In this case study, we look at how British Airways’ brand equity shapes up using Vision One’s Brand Equity Wheel. We all know it’s one of the world’s leading airlines, but by measuring its brand equity, we can start to see where future opportunities lie.


Airlines Brand Equity Whitepaper Vision One

Download The Whitepaper

Discover more about BrandVision. In this whitepaper, we're looking into the world of Airlines. You can download our whitepaper and see which of the Airlines brands do best on our unique brand wheel and brand health measures.

The Brand Equity Wheel

The Brand Wheel is at the hub of Brand Equity measurement and comprises of four key themes:

  1. Saliency: Firstly, Saliency marks the start of a customer’s journey. How aware are they of the brand? How prominent is the consideration? Is the brand growing?
  2. Image: Secondly, Brand Image refers to how the brand is perceived. Is it a leader or is it unique? Does it meet the customer’s needs? Does it offer good value?
  3. Relationship: Finally, Brand Relationship looks at the bond customers have. Are the customer’s loyal? Are they likely to recommend the brand? What emotions does the brand evoke?
Brand-Equity-Wheel-British-Airways

British Airways achieves a strong Brand Equity rating of 58pts. This is largely due to a strong performance on Brand Pyramid and it’s the ability to command a price premium. Despite its brand strength British Airways is surpassed by both Emirates and Virgin Atlantic because it’s lack of unique brand identity and weakness in terms of delivering against customers’ needs and values.

Airline Brand Equity Scores Vision One

The Brand Pyramid

Airlines-Brand-Funnel-Scores-Vision-One

The Brand Pyramid is often seen as one of the most important measures of Brand Equity. It is made up of 5 key metrics:

  • Brand Awareness
  • Brand Consideration
  • Trial
  • Customer Satisfaction
  • Customer Loyalty

Every brand has a unique brand structure. Comparisons with key competitors will help identify future opportunities. British Airways has a strong Brand Pyramid. Compared with other leading brands (Emirates, Virgin), Satisfaction is lower than expected.

Airlline-Brands-Top-5-Needs-Vision-One

Meeting Rational And Emotional Needs

For any brand to be successful and carve a name for itself within any market it needs to meet customer needs and deliver against customer needs. Vision One has identified the 26 most important needs. In most markets, brands need to deliver against the top 5 needs….

Customer values and needs are dominated by rational needs for airlines – Saving time, Value and Convenience topping the table.

EasyJet (62) is the airline that best delivers customer value – particularly strong on (good) value and the emotional need of belonging Ryanair although known for offering good value, fails to deliver any real brand value to passengers In contrast, British Airways (51) delivers Long-lasting, Appeal, Quality and Variety values.

Airlines-Brand-Value-Vision-One

Added Value (£)

The Emirates, one of the world’s most profitable airlines appears to be the brand that most people would pay more.  British Airways and Virgin Atlantic are some distance behind but as expected well above the budget airlines of EasyJet and Ryanair.

Most brand owners believe strong brands can command a price premium. Our Added Value metric uniquely adds a monetary aspect to our Brand Equity evaluations. This is a KPI that helps identify the ability of a brand to command a premium price – i.e. brand customers would potentially be happy to pay more for.

Let's have a Chat

In short, if you are curious to know more about how we could work together, then please give call us to find out more about how our Insights and Services can transform your business. Please call 0203 693 3150 or use the contact button below.