JOVE, ROLIEDEL CLAIRE S.

PRODUCT MANAGEMENT

BSBA MM 3B JUNE 02, 2021

CASE STUDY 1: Brand Management at Philippine Airlines

The case discusses brand management practices at the world-renowned Philippine
Airlines (PA). While building the brand, PA focused on innovation, best technology, and
offering genuine quality and excellent customer service. PA had been known through
its brand icon the ‘Philippine Girl’ since 1980. Over the years, this icon had become
synonymous with the airlines and was highlighted in every promotional activity.
The Philippine Girl was portrayed as being gentle, warm, and caring. Philippine Airlines
concentrated on offering personalized customer services. It was honored with many
prestigious awards for its exceptional customer services. Even during the economic
crisis post 2010, PA preferred to launch a low-cost airlines – Diamond — rather than
reduce its established customer services.

The airline industry was immensely competitive, particularly so for fresh players, who
found it extremely tough to compete with the more established airlines. Philippine
Airlines, since its inception had tried to beat the competition by providing exceptional
services.
new aircraft, retrained its employees regularly, and invested in innov ations. However,
there were also some areas in which the airline lagged behind its rivals such as in back-
office technologies. Also, it offered lower salaries to its employees than its rivals.

Over the years, the critics had been questioning the brand's excessive reliance on the
Philippine Girl, with some of them pronouncing that the icon was outdated. The
company hoped that 'The Lengths We Go To' campaign would silence such criticism.
Moreover, it was anticipated that the campaign would reflect innovation in the
marketing strategy of Philippine Airlines. As Carranza put it, "Philippine Airlines ads
have always had amazing production values, and it was really important for us to
maintain the quality of film that the airline has always been known for. What we wanted
to do was create a fresher, more relevant, more contemporary look for the airline.

Issues:

 Understand the various brand management practices at Philippine Airlines and how
the brand was built and maintained over the years. Explain the brand icon – the
Philippine Girl, her creation, evolution, and importance. (25 pts.)
 Examine the various initiatives taken by Philippine Airlines to revamp the brand. (25
pts.)
 Understand/Discuss the role of social media in facilitating two-way communication. List
out pros and cons of late entry of Philippine Airlines into social media. (25 pts.)
 Discuss and debate whether the new branding methods can benefit PA in the long run.
Is it fine to rely on traditional practices of brand management focused on the Philippine
Girl or should the company differ from its history? (25 pts.)
ANALYSIS
 The Philippine Air Lines, or PAL, is the country's flag carrier and the national airline.
Philippine Airlines are committed to delivering the stimulation for innovation, cutting-
edge technology, and providing top value and exceptional customer service. With the
customers in mind, the commitment to providing the service that is expected and that
the customers rightfully deserve the first and foremost goal. By that being said PAL
was then to establish their brand icon in the year 1980 called the “Philippine Girl”, which
encompasses their signature Buong-Pusong Alaga (wholehearted service), the steady
promise to every traveler. More than ever, they are dedicated to giving above-and-
beyond service on each flight. Through the years, it received numerous noble prizes
for its exceptional and superfluous customer service. Whereas the partners and crew
members ensure that each passenger feels the Heart of the Filipino by thorough
training programs and leadership empowerment sessions.

 As stated in the case study, from the 80’s branding icon “Philippine Girl” revamping to
“The Lengths We Go To”. This arises because of the airline industry's tight
competition. Taking advantage of the opportunity to demonstrate to their current and
potential clients, they understand the goodness and betterment for revamping the
brand. They use catchy phrases that will appeal to their target market. From
Philippine Girl that compasses the being gentle, warm, and caring, to the campaign
of “The Lengths We Go To” the delivery of what is beyond the expectations.

 The companies have been attempting to engage and interact with their target market,
current market, and potential market in a more sustainable and attainable way since
the rise of the internet, specifically social media. Social media is one platform for
companies and brands to achieve this type of engagement. Companies don't want to
be associated with being only an influence. Instead, businesses aim to bring and
connect with their customers by educating and personalizing their online experience.
Any brand's social media presence is essential.
Philippine Airlines had a late entry to this platform, and we will list their pros and cons.
PROS:
It exposes the brand to a wider audience. When PAL entered social media, most
of the people already has their ability to browse what they like, in a sense that age and
accessibility to the technology do not become the hindrance. It breaks down whatever
demographic barriers. Today, everyone has the chance to see what are they searching
for in air transport.
 The established brand loyalty. At this point, before they entered the platform,
people are well aware of the existence and service of the brand. So they are to arise
more interaction between the business and the customer that leads them to gain more
ease and comfort to the customer. And this leads to brand loyalty. Such a customer
will gladly promote the company without being told or paid to do so. It also helps to
improve one's online reputation.

CONS:
Rival companies already had established. Being late in the platform, competitors
already had established the communication and more engagement to the consumer.
The consumer will be thinking that rival companies will be accessible, more available,
and easy to converse with than PAL.
Chance of negative or damaging publicity. Social media marketing is a very
powerful tool for promoting, but it can also be used to pull down or negatively impact a
business. Especially today, people are so engrossed to involve in intriguing issues.
The internet is full of deviant and unscrupulous people who want the company to fail.
They will slander the company and leave negative comments even if they have no idea
what it does. Without proper management, such negative publicity can go viral and
irreparably damage the brand.

 From my standpoint, I believed that sticking to the tradition will only give a traditional
mindset, whereas the company will think that this tradition made us who we are.
However, everything undergoes a phase of change. No one can stick around for a long
time without development and innovation, otherwise, you will be eaten alive and be
gone. Just see how Nokia has been in its peak of success, sticking to its brand icon,
not anticipating the change that will happen—the rise of Apple. They are at their peak
but without the development and innovation, they are eaten alive by Apple. Attack
contemporarily. Change is inevitable, the company must continuously adapt however
maintaining the core values and ideals they uphold.