What: We talked to brilliant members of Portada’s Council System to find out where they think the industry of marketing is heading in the immediate future. Why it matters: In view of the accelerated pace at which the industry is evolving, companies need to get ready for what is coming in marketing.
The Age of Mobility
It is undeniable that we are living in an era of unprecedented change. Consumers have fully moved to digital and social media, and new technologies boost this transition. More personalized and targeted ad formats help create deeper engagement between brands and consumers, and data is the main ingredient that allows companies to understand new opportunities.
As a new study on the State of the Media Industry by Ooyala states, “[Audiences] are now used to finding video content wherever and whenever they are looking for it, so mobile isn’t a novelty anymore— it’s the expectation.” Now, companies need to make sure to keep up with the consumer, and not the other way around. The Ooyala study found that mobile video and social video consumption are rising steadily; brands and media companies need to devote more effort to targeting consumers on those media. “It’s about getting better targeting for the right consumer at the right time in their lives, that’s a big part of it,” says Rafael Lopez-de-Azua, Head of Media and Digital – Latam, Coty. “There’s always question marks specifically about how good is the data and the accuracy of that data, but there are really good solutions for the U.S. Hispanic market.”
Data, an Unavoidable Beacon
Recently, companies have begun to accept that the incorporation of new technologies and data-specialized teams is inescapable. Data-driven technologies like AI, Blockchain, and connected home and voice technologies are changing forever the way consumers relate to media and products, to the point that new realities are merging with ours.
“I guess not only the marketing but the whole world is going towards data, data, data,” comments Pablo Chiozza, SVP USA, Canada & Caribbean at Latam Airlines. “Nowadays no one runs a marketing campaign, no one launches a product if it’s not supported by hard data, so I guess in the present and the future, all the actions we’re taking are based on data, data, data, so it’s all about how you prepare, not only to gather data but then to read data and to take the most information out of it.”
Challenges of the Media Industry in the Near Future
“One of the biggest challenges we face nowadays is the fact that the old media hasn’t been brought up to speed in terms of data, and what I’d like to see is more integration,” shares Ana Lucía Soto, National Media Manager at JCPenney. “Some of the linear channels like radio and TV that have been continuing this challenge over the years with having data that’s actionable in the same time and manner as digital, I would like to see that come together so that we can deliver media plans in the time that we’re planning them.”
There’s always going to be the need for that human touch that highlights culture; that’s something that machines cannot do and it’s 100% human.
But when asked if she thinks this process could lose touch with humanity, Ana L. Soto explains that automated processes will never take away the human factor. “There’s always gonna be the need to have somebody addressing the human issues and even though things are getting more automated and data is present all around us, I feel like there’s always going to be the need for that human touch that will highlight the culture,” she says. “That’s something that machines cannot do and that’s 100% human. I think there’s always going to be a need to evolve with the times and to catch up with technology, but there’ll always be room for the human factor.”
Portada has officially launched its Council System. The five different council units already met once virtually during the first quarter and in-person at Portada Miami in mid-April. The next in-person meetings will be at Portada New York (Sept. 24-25) and Portada Mexico (Oct. 30). Check out what the brand marketing member executives have to say about the experience so far!
“I think that Portada has been doing a great job, I’m really excited about all the things we’ve been working on during these meetings and understanding, not only inspiring but really taking action, so for me it’s very interesting.”
Perla Patricia Aragón, Digital Marketing Director MX, at L’Oréal (Council of the Americas Member)
“I am honored to be part of Portada’s Agency Star Committee. Driving growth through multicultural audiences is no longer a ‘nice to have’, but instead a key component of realizing full growth potential for our clients. Portada helps promote deeper marketplace understanding of that essential principle.”
Dana Bonkowski, SVP, Multicultural Lead, Starcom Worldwide (Agency Star Committee Member)
“Having a Brand Star Committee and getting marketing people to share their experiences is a great idea. The idea of having an opportunity to really link with people who have the same challenges as you, who maybe have had the same launching opportunities… and really just share.”
Margie Bravo, Multicultural Champion, Nestlé USA (Brand Star Committee Member)
“I’m in the Travel Marketing Board, a very good opportunity to share different visions among different industries, we are airlines, car rentals, hotels… and it’s amazing how, even though it’s the same industry, it’s different pillars, and it’s amazing how we all share the same challenges and it’s interesting to see how everything is related.”
Pablo Chiozza, Senior VP US, Canada, Asia & Caribbean, Latam Airlines Group (Travel Marketing Board Member)
“Being a part of the Brand Star Committee has been really interesting so far. I think that part of the challenges that we all face as marketers are actually really similar to one another even across industries, across brands… I’m grateful that Portada has created a forum to share and reapply, to not just talk about the successes, but talk about the challenges so that we can help one another.”
Marissa Fernandez, Director, Marketing Strategy and Fan Development, NFL (Brand Star Committee Member)
“I think it’s a great thing that Portada has put together, it’s given me a chance to really interact with some folks that I’ve known in the industry but maybe we hadn’t gotten together around the specific unique targeted approach like multicultural Hispanic marketing through the lens of sports and sports marketing, so it’s been very engaging for me.”
Dan Keats, Director Consumer Marketing-Sponsorships, Allstate Insurance (Sports Marketing Board Member)
“The Brand Star Committee has been great. We’ve had great discussions about real-life problems in marketing we’re having today, and solutions, and part of it is because we had a great group of marketers and marketing practitioners. Even though I get invited to this kind of things all the time, the executives we had at the table, this time it was top-notch, great quality people that could really get to a deeper level of discussion than I’ve had at other places.”
Rafael Lopez-de-Azua, Head of Media and Digital, Latam, Coty (Brand Star Committee Member)
“I think it’s a great idea, I really liked that we were able to get together in a group yesterday and just talk peer-to-peer about the things we’re struggling with, or things we’re finding challenging, and see what other people have learned from their experiences.”
John Sandoval, Senior Brand and Latino Marketing Manager, Intuit
(Brand Star Committee Member)
“It has been a great experience so far, we’ve meet twice and it’s great to have the access to all these people in the marketing world that have the same type of issues that we do and discuss these matters, try to find solutions and interact that way, so it’s great networking with your peers. It’s a great opportunity to get access to different technologies, different ideas, and in a great setting.”
Ana Lucía Soto, National Media Manager, JCPenney (Brand Star Committee Member)
“I am proud to be associated with Portada’s exciting new Council System, and am eager to partner with other industry leaders to move multicultural advertising forward.”
David Queamante, SVP, Media Director, UM Worldwide (Agency Star Committee Member)
“The Council System is very unique for us at Mastercard. It allows us to better understand what the Hispanic market is doing and we can leverage that with a lot of our properties. That’s the biggest feature and the benefit. And bringing our knowledge as it relates to Mastercard to this business and the Hispanic community is very important to us.”
Mike Tasevski, VP, North America Sponsorships, MasterCard (Sports Marketing Board Member)
In addition to the more than 70 brand marketing executives who integrate Portada’s expanding Council System, Council System integrations are available to an elite group of marketing services vendors. To discuss opportunities and find out more about how Portada’s content and networking platform can help your brand’s marketing objectives, please contact Portada Sales Manager Isabel Ojeda.
Portada Presents Its Travel Marketing Board of Senior Brand Execs. Their input will drive Portada’s content and networking platform.
Trip Barrett, a Global Brand Management and Business Development Leader with extensive experience in Hospitality, E-Commerce, and Entertainment Industries, will chair Portada’s expanded Travel Marketing Board, consisting of Senior- level Marketing Executives from leading companies across the Hospitality / Travel industries. He has lived in 9 countries on 4 continents and is an avid traveler who still gets that sense of excitement before beginning each trip. The first Travel Marketing Board in-person meeting will take place during Portada Miami (April 18-19, 2018, EAST Miami Hotel).
The group of senior travel marketing executives who are very passionate about the hospitality and travel industries throughout the Americas includes:
Jennifer Adams, MD, Integrated Marketing, American Airlines Ricardo Casco, VP, International Sales, Avis Budget Group Pablo Chiozza, SVP, USA, Canada & Caribbean, Latam Airlines Group Roberto Muñoz, VP, Strategic Partnerships and Loyalty, Aeromexico José Luis Pérez Rodríguez, Head, Marketing Performance, Volaris Luis Perillo, VP, Sales & Marketing, Caribbean & Latin America, Hilton Ángel de la Tijera V, Top Accounts Commercial Head Mexico & Latin America, American Express Álvaro Valeriani, Regional Vice President Sales & Marketing Latin America & Caribbean, Hyatt Hotels Corporation Alan Duggan, Regional Vice President Business Development The Americas, Meliá Hotels International
Additional senior members of this invitation-only community of senior travel marketing executives will be announced soon.
Most Travel Marketing Board members will be available for one-on-one meetings with Premium Level ticket attendees of Portada Miami on April 18-19.
To find out more about how Portada’s content and relationship platform can help your brand, please contact Portada Sales Manager Isabel Ojeda.
Major brand marketers and innovators will gather at the tenth annual edition of Portada Miami in the Hotel EAST on April 18 and 19 to discuss topics like Voice-Based Technology, Gamers and Gambling, Attribution Models for Digital Media Agencies, App Marketing and much more. Register now here!
To ready the discussion for Portada Miami, Portada’s Chair of the Travel Marketing Board Trip Barret wrote the article below on 4 Ways Airlines Can Learn From Major Retail Brands.
What: With Amazon’s launch of Amazon Go a “first” in the Retail Industry, we look back at another game-changing ‘first’ in the airline industry: the introduction of the first 747 by Pan Am. Why it matters: Both the Airline and Retail Industries are having to reinvent themselves continuously to be both profitable as well as the preferred choice of consumers. Looking at how Amazon vs the Airlines build their Consumer / Brand relationships, we can see which efforts bring more “value” into that relationship and, ultimately bottom line.
The news came out on January 22nd that Amazon had officially launchedAmazon Go, widely believed to be the next transformative, and arguably disruptive step in the retail industry. This reminded me of a similar, widely heralded launch on January 22nd, in 1970, by Pan Am: the Boeing 747. The introduction of that flight greatly expanded air travel throughout the world, allowing lower fares and more non-stop flights over longer distances.
While the Airline and Retail Industries may have more perceived differences than similarities, the visions of Pan Am’s Juan Trippe and Amazon’s Jeff Bezos to make their globally-recognized companies bigger, bolder, and more ready to reach everywhere, are certainly in lockstep. But, unlike Pan Am, long recognized as a trailblazer faded into the history books of Iconic Brands, Amazon continues to generate increased demand and loyalty from its core customers, while creating new opportunities to bring new customers into the fold. In this article, I outline the main ways airlines can learn from the successful efforts Amazon has introduced.
1. The Classic 4 P’s: Product, Price, Promotion, and Place
The Airline Industry today is certainly much different from the glory days of Pan Am —passengers are a commodity, customer loyalty has dwindled as loyalty programs are devalued, aircrafts are likened to real estate (pitch vs profit), and while progress has been made in employee / management relations, the overall customer service “guest experience” still has a long way to go.
Looking at the Airline Industry through the lens of Jerome McCarthy’s Marketing Mix of the 4Ps –Product, Price, Promotion, and Place, it is easy to conclude that most US Airlines have executed well against this model (and should continue to do so). In fact, you could even say that two additional P’s have been added successfully to the mix: Performance (load-factors, scheduling, fuel efficiency) and Profit (especially in ancillary fees).
Airlines have managed to add two additional P’s to the mix: Performance and Profit.
Airlines are increasingly investing in newer aircraft models (Product) and consumers have even more fare options, thanks to the introduction of “Basic Economy” (Price). In today’s Digital World, messaging, targeting and multiple offer options are available (Promotion), and given the consolidation of the Legacy Carriers as well as the growth of Low-Cost and Ultra Low-Cost Carriers, more and moredestinations are being served by giving consumers more options (Place).
2. More P’s to Take Into Account
However, in the process of getting the 4 P’s right, the Consumer / Brand relationship has been increasingly overlooked, and it contributes a great deal to the long-term success of a company. In this context, two more P’s should be considered: ‘Persona’ (how the consumer feels about his or her ‘relationship’ with the brand, about its stance on social issues and employee relations, and how well he or she is treated), and ‘Preference’ (the consumer’s commitment / loyalty to the brand and vice versa).
If you take care of [your employees], they’ll take care of your costumers.
Videos and social media postings of on-board interactions between flight crew and passengers are as disturbing as seeing uniformed crew members picketing for new contracts; and these can impact a customer’s perception and choices. As Bill Marriott learned from his father, and still incorporates at Marriott, “If you take care of them (employees), they’ll take care of your customers and the customers will keep coming back again and again.” American Airlines recently celebrated Bette Nash’s 60th anniversary as a Flight Attendant; when interviewed, Bette revealed the ‘secret’ of how a Brand can successfully engage the ‘Persona’ point: “I love my people. I know my customers. I know what they want. The airline thinks names are important, but I think people’s needs are very important. Everybody wants a little love.”
The airline thinks names are important, but I think people’s needs are very important. Everybody wants a little love.
The second P, Preference, has really seen major changes in the last few years as the Airline Industry has massively changed their loyalty programs (devaluing miles, increasing award level pricing, adding minimum spend requirements, and fare-based vs distance-based mileage earnings) while trying to convince their loyal flyers that it is in their best interest. However, there is an inherent flaw in this approach: with almost all airlines, travelers must re-qualify their status each year to continue to be ‘appreciated and valued’ by the Airline. If the traveler’s business with the Airline reduces in a given year, the ‘love’ or status returned will also diminish—which then begins a downward spiral of the overall relationship between consumer and brand.
3. All Relationships Need a True Purpose
This yearly ‘dance’ reminds me of a poem by an unknown author which outlines the 3 types of friendships: 1) Friends for a Reason (to meet a need, but ends once that is accomplished), 2) Friends for a Season (to grow and seek new experiences which bring great joy, but are also of limited duration), and 3) Friends for Life (indefinite relationships built upon emotions and commonly shared experiences.) By applying these concepts to Consumer / Brand relationships, my assumption would be that a majority of the relationships consumers have with brands would fall into the “Reason” or “Season” categories, with few falling into the “Life” category.
[A buyer’s] decision may fall into the ‘Brand for a Reason’ category, more so by accident than by design.
Given the transparency of the digital world, the airline and hospitality industries, in general, fit squarely into this analogy. For the infrequent, or price-sensitive traveler who will most likely seek out options via the web on Expedia, Priceline or Kayak vs checking with an individual airline, his or her decision falls into the “Brand for a Reason” category —which may be a one-time occurrence or may happen again—, more so by accident than by design or conscious choice.
Road warriors will maximize their efforts to concentrate their business with one carrier in order to achieve the ever-elusive elite status. These travelers fall into the “Brand for a Season” category—and while they make the best of it during the high-travel years, they ultimately know (or come to realize) that the relationship won’t last forever and ultimately they will part ways with the Brand (unless they are in the small group of Ultra Road Warriors who manage to earn one of the “Status for Life” Elite levels.)
Then there are those consumers who do establish a relationship with a brand, perhaps first through the original 4P’s of marketing. As they mature, they find the brand also satisfies and delivers on their Persona and Preference expectations—they’ve entered the “Brand for Life” category.
4. Taking a page from Amazon’s book
Having consumers enter the “Brand for Life” category is a huge accomplishment for an Airline, or for any industry, and it is exactly what Jeff Bezos and Amazon have accomplished. From its inception, Amazon’s mission and vision have been “To be earth’s most customer-centric company; to build a place where people can come to find and discover anything they might want to buy online, ” and it has delivered on that since day one. The Four P’s of Marketing-Check. Performance-Check. Profit-check out the stock price!. So how about Persona and Preference?
Customers are all treated equally well—whether a Prime Member or the occasional shopper. As it expands, Amazon continues to emphasize increasing its knowledge of its customers, while simplifying their lives as well as their purchasing decisions. It has grown from selling books, music, and videos, to bringing unlimited options to their customers across multiple touch-points—from consumer goods to groceries, to technology, to streaming content. Preference-Check. As Amazon narrows its search for its second headquarters (which will add new employment opportunities) and progresses with its newly announced efforts with Berkshire-Hathaway and JP Morgan to address employee health care costs/needs, it continues to show its leadership and vision for planning for the future, further endearing itself to its consumers, who have come to expect remarkable things from the company. Persona-Check.
And so, January 22nd stands out as a significant date for two Iconic Brands albeit nearly 50 years apart: the launch of the first scheduled 747 flight, recalling Pan Am, the Airline that transformed the way the world travels, and the launch of Amazon Go, Amazon’s next step in meeting and exceeding its customers’ needs and expectations, and impacting the retail industry into the foreseeable future. The Airlines are much better positioned for success than Pan Am, but the true measure will be whether they can develop the strong Consumer / Brand Relationship with its customers the way Amazon does on an ongoing basis.
Trip Barrett is head of Travel Marketing Content and chairs the Portada’s Travel Marketing Board, including top-notch executives from the Travel Industry like Jennifer Adams [MD-Integrated Marketing, American Airlines], Ricardo Casco [Global Sales & Integrated Marketing, Avis Budget Group], Pablo Chiozza [SVP USA, Canada & Caribbean, Latam Airlines], Alan Duggan [Regional VP Business Development, The Americas, Meliá Hotels], Roberto Muñoz [VP, Strategic Partnerships & Loyalty, Aeromexico], José Luis Pérez [Head, Marketing Performance, Volaris] , Luis Perillo [VP, Sales & Marketing, Caribbean & Latin America, Hilton], Ángel de la Tijera [Top Accounts Commercial Head Mexico & Latin America, American Express], and Alvaro Valeriani [Regional Vice President Sales & Marketing Latin America & Caribbean, Hyatt Hotels]. This board, as well as the other Portada councils, will meet at PORTADA MIAMI, on 18-19 April. Click here to save your spot!
Travel Marketing is going to play an important role at our ninth annual PortadaLat conference next month in Miami. Pablo Chiozza, Sr. VP USA, Canada & Caribbean, Latam Airlines Group will be one the many major executives present at PortadaLat. Portada interviewed Chiozza to ask him about Latam’s new low-cost strategy, the use of marketing tech to acquire new customers and more.
Portada: We understand that you recently launched and implemented a low cost airline strategy. Can you please explain?
Pablo Chiozza, Sr. VP USA, Canada & Caribbean, Latam Airlines Group: “We are switching to a different business model in our Domestic Operations. Remember we operate domestic in the following countries: Argentina, Brasil, Chile, Colombia, Ecuador and Peru. We started with the buy on board (BOB) project. This is the first initiative of the new domestic business model. “Mercado Latam” will offer passengers a new on-board purchase concept with more and better food options -some with local flavor- allowing each passenger to discover, choose and create their on-board experience. Mercado Latam has been implemented in Colombia, Peru and Chile so far and will be implemented in Argentina, Ecuador and Brasil this year. We are also introducing Branded Fares and unbundling different attributes like luggage, seat selection and others, allowing the passengers to choose their fare according to the type of trip they are doing, paying only for what they need. This will translate in fare decreases of up to 40%.”
Portada: How are you marketing this strategy to your prospect customers in the U.S. Canada and the Caribbean? (including your media plan)
P.C: SVP Latam Airlines Group:“The U.S . and Canadian markets are used to this type of product, it has been a local reality for quite a long time. Passengers will benefit from lower prices since they will be able to cater their product according to their needs. We have an important percentage of our sales via www.latam.com, and all the information about the new business model and each fare attribute is well described. Information will be also available in the GDS’s and we are email contacting our BBDD with all the relevant information.”
Portada: Why didn’t you go for the ultra low-cost segment (e.g. Spirit and Ryan Air)?
P.C: SVP Latam Airlines Group.: “Our business model is different. On top of the Domestic flights we currently operate Long Haul flights between South America and US, Europe and Australia. We also operate Regional flights within South America. This makes our value proposition different. We operate wide and narrow body aircrafts, etc. Our Corporate passengers use our entire network and we are keen on covering all of their needs in our flights. There is also an unveiled opportunity to increase domestic traffics in the Region. There is a huge gap when compared to more mature markets like US and Europe. This is the gap we are trying to fill with the new business model.”
Digital Technology is the base for our customer acquisition strategy in the U.S. We target all customers across the purchase funnel, from those who are in the early and “dreaming” stage to those who are ready to travel and seeking for the correct flight and fare.
How do you use marketing technology to acquire new customers?
P.C: SVP Latam Airlines Group.: “Digital Technology is the base for our customer acquisition strategy in the US. We target all customers across the purchase funnel, from those who are in the early and “dreaming” stage to those who are ready to travel and seeking for the correct flight and fare. Digital Marketing has allowed us to know what our passengers are looking for, which destinations, which dates, price ranges, etc, and with all this data we are able to reach them with correct and relevant information maximizing each contact with them.”
In the U.S., the word “Latam” is also used to refer to the Latin American region. We are leveraging on this fact relating our brand to the Region and positioning ourselves as the experts and best option to fly to and within the Region.
Portada: What role does “Latin America as a concept” play in LatAm’s marketing strategy?
P.C: SVP Latam Airlines Group.:” Latam is the new brand for the merger of Lan and Tam airlines. In the U.S .Latam is also used to refer to the Region (Latin America). We are leveraging on this fact relating our brand to the Region and positioning ourselves as the experts and best option to fly to and within the Region.”
Portada: What do you think are the key features of a successful marketer in the Travel sector?
P.C: SVP Latam Airlines Group.: “In a nutshell a successful marketer should be able to know who their market (current and potential) is. What are their different needs according to where they stand in the purchase funnel and be able to drive and convert those passengers down the funnel poking them with the correct value proposition.”
PortadaLat Registration: We have added new Ticket Types to Meet Your Needs!
GENERAL PASS: Attend the overall PortadaLat event on June 7 and June 8.All sessions, keynotes, networking, food and beverage included! (US$549) VIP ATTENDEE: Meet up to 5 high-level brand, agency or media executives of your choice attending or speaking PortadaLat. These 10 minute meetings will take place in a separate room during the first and second day of PortadaLat and are designed to help you build valuable relationships. General Pass offering is included. (US $ 1,999). DAY 1: SPORTS AND TRAVEL MARKETING DAY (June 7): The first day of PortadaLat will focus on how technological innovation is impacting key segments of business and marketing with emphasis on Travel and Sports. All sessions, keynotes and marketing-tech showcases are included as well as light food, sandwiches and beverages. (US $199) DAY 2: BRAND INNOVATION DAY (June 8) The second day at PortadaLat will celebrate Brand Innovation and showcase how leading companies are boosting brand equity and increasing their relevance in a disruptive environment in Latin America and the U.S. Breakfast, Lunch and Evening Reception Food and Beverages included.(US$ 549!) Secure your spot and start the PortadaLat journey!