What do RyanAir, Aldi, Ikea, H&M and Amazon have in common?
According to Kenny Jacobs, Chief Marketing Officer (CMO) at RyanAir, these are all brands that appeal to customers because they allow them to spend money smartly.
It is less about “The brand is cheap. The customers are skint”. More about “The brand is low lost. The customers are smart about how they spend their money”.
This was the message that RyanAir’s CMO had for the audience of his keynote talk, at the Academy of Marketing conference, which took place in Limerick, Ireland, earlier this month. He went on to say that it is absolutely crucial for brands to know (and stick with) its core advantage, and not to stray away from that when looking for ways to add value to the customer.
For instance, flying to new destinations adds value to customers in the form of choice. But those destinations are carefully selected based on criteria such as the existence of economies of scale, which allow RyanAir to offer the lowest fares for that particular destination, while maintaining their target profit margin. Likewise, certain changes in the service, such as being able to book your seat, or carrying a second bag, add value by improving the customer experience, but did not result in increases in the fares.
Kenny Jacobs added that, when looking at ways to add value, companies need to remain anchored in what they are good at, and be as clear about that as about who you are not trying to be.
I confess that I am no RyanAir fan. But I liked its CMO’s message about the need to have a clear and consisting positioning, which sets the brand apart and resonates with the customers. What about you?