Evaluating Branding Decisions of Malaysian Airlines: A Report

This report examines the branding strategies of Malaysian Airlines, focusing on the challenges faced after two major crises and the subsequent rebranding efforts. It evaluates the decisions made by the airline to retain its brand image, including the relaunch of its logo, uniforms, and name. The report analyzes customer insights regarding these decisions, highlighting the impact of the crises on brand perception and the importance of effective crisis management. It also explores the restructuring of the business, cost-cutting measures, and route adjustments as strategies to address financial problems and regain customer confidence. The report emphasizes the need for a flexible crisis response capability, transparent communication, and a focus on customer needs to successfully navigate future challenges and maintain a strong brand presence in the competitive airline industry. The report also discusses the importance of learning from past mistakes and implementing better policies and strategies to secure passenger safety and satisfaction.

Branding Malaysian
airlines

Table of Contents
INTRODUCTION...........................................................................................................................1
Evaluation of various decisions of Malaysian airlines to retain their brand..........................1
Insights of customers on decisions.........................................................................................4
Academic literature about rebranding....................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Branding is known as the process in which a business company do various efforts to
develop a image of company and its products in front of its target customers. This is done by
enterprises by create a specific website that give information about company's offerings, design
ads for promote its goods and many more (Adapa and Roy, 2017). This is carry out by firms to
make their customers able to understand about company's offering and how it is different from
the others exist in market. But for effective branding, it is very necessary for corporation to
determine what its customers like the most about their business and what are the major strengths
of business, as this help in complete business activities in effective manner (Adapa and Roy,
2017). Malaysia Airlines, an airline operating flights is considered under this report for study.
Crisis, faced by this brand in last ten years is all given in this report. Further, major decisions
taken by company to retain their brand in market is all detailed in this. Rebranding is done by
company to attract customers towards its services and to maintain its market share is given in
this. Bad reputation of firm was one of the main reason why company go with the approach
called rebranding. In addition to this insights of customers on various decision of company is
also included.
Evaluation of various decisions of Malaysian airlines to retain their brand
Malaysia Airlines was hit by two crises that hamper the confidence of its target customers
and create a situation for company to struggle and manage the damage. Alone passengers were
posting on social platforms of empty planes. This situation was a challenging one for Malaysia
Airlines but was not an impossible one to survive. Firstly, the disappearance of MH370 flight in
Mach with 239 passengers and then shooting down MH17 in July with 298 lives lost. Both were
tragic and mysterious accidents for company. Both these incidents create a mass criticism for
company. In March when MH370 disappeared then the enterprise came under the pressure from
the relatives of Chinese victims. Further, company faced a decrease in its market share price.
To handle with this issue or to solve the issue of branding of Malaysia Airline's it was
essential for company to go with rebranding so their target customers put the Airline as priority
as compare to other airlines present in market (Alam and Yasin, 2010). Mainly brands are known
as aural, verbal and visual status of differentiate the features of a specific product or service for
individuals. When an individuals compare a specific commodity with other goods available in
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market them they always put the brands as their primary choices. Cooperate brand in market
have its identity with personality, activities, process, products, services and is linked all
employee's personality. In context of Malaysia Airlines, it give pride to the nation as being a
national brand but at the same time large number of individual avoid to choose this as this brand
was associated with various flying disasters. In this kind of situation, rebranding is one of the
most important solution for company as this consists relaunch its new logos, repaint it current
uniforms and relaunch the name after the clash. During the clashes logos, colour and name of
Malaysia Airlines were on the headlines of all TV news channels and in front of al news papers.
Crashes largely affect the people's mid about the passengers off jet disasters. In this situation
Malaysia Airlines require to strengthen the present look of their aircraft and go with smart
actions to paint the whole fleet as per the new scheme.
Features of rebranding is that it lower down all the worries of individuals related with
security towards the branding as this all was totally new for them and new branding support them
in evoking the bad memories related with the scene of plane crash. Change of name would
inform the whole world about the fact that Malaysia Airlines have now changed and now the
company is ready to for a totally new chapter for regain its customers. Comparison of various air
disasters than taken place in previous year, tragedy with MH17 plane, same with the shooting of
Korean air lines a carriers related with activities of commercial, absolute into Russian airspace.
In order to handle this crisis of branding, Korean airline go with remould its new image.
Association of its previous branding was dine with a tail fin logo with red crane closed with red
circle. Its fresh look is not a stylized blue and red taeguk. Its new and fresh look support the
airline to survive in market and it come under the top listed airline which is able to offer effective
safety and service to all its passengers.
In addition to rebranding, Malaysia Airlines require to restructure its business and this
can be done by make some leading internal changes in the company. One of the major area in
which company require to introduce change is formulate a flexible crisis capability to response in
an effective way (Alserhan, 2010). Mainly the ability of company to handle the crisis and
manager the challenges is the the only factor that determine its capability to survive in market.
Formulate a effective crisis response team is very essential for Malaysia Airlines as this
help in effectively response to the requirements and emotional needs of passengers. Further,
company require to conduct post mortem the changes they would practice in order to handle the
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crises in future. For achieve growth, it is very significant for company to refill its plane with
various global passengers especially the passengers of Dutch and china as these are the largest
community in the two disasters (Alwi and Azwan Ismail, 2013). Crisis communication strategy
should be liable for general public and media especially with the internal staff and family
members. That communication will remain responsible to decide when, how and what data will
be delivered to each and every audience. If one will review the case study of MH370 then it can
be concluded that one of the major fault of Malaysia Airlines was slow reaction towards the
crisis. It was said by the disaster management company that the first action that should be taken
by the company is to inform the airport about the incident and take some actions without any
kind of delay. Further, the arrival board of that flight should be taken off immediately and a
reception areas should be set up for family members of passengers. All members of family
requires to be stay in a safe area and they should be secure from media. Overall family members
of passengers should be keep on priority. Further, Malaysia Airlines require to give information
before media to remain transparent and to make them inform about the specific actions taken by
company.
If Malaysia Airlines have a effective crisis management team then enterprise can face the
future crisis challenges in an effective manner and company can survive in competitive business
environment (Dharmavaram Sreenivasan, Sian Lee and Hoe-Lian Goh, 2012). Good and
effective crisis management team would support the company in regain the customers as this
help in reserve their rights. Malaysia Airlines require to concern about the needs and
requirements of its customers in this way enterprise can regain its customers. In this way they
can solve their branding issue and ate the same time can get a solution of their financial problem
in future. Regain its customers will help the Malaysia Airlines to handle its financial problem
and for this enterprise require to introduce change in its business model and require to cut the
cost of its business operations (Elder, 2015). High operating cost is one of the element that
affect the profits of enterprise. For effective management sales, and distribution in market can be
solved with help of personnel transfer (Elder, 2015). In this kind of situation, cut down some
unnecessary jobs with aid effectiveness in financial management of company and remaining
proper training require to be given to existing work forces so their knowledge and skills can be
developed and they can perform their job roles in an effective manner and they can assists
indecision making process or during formulation of business strategy for Malaysia Airlines.
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Further, replace the aircraft with fuel saving and high efficiency is very important for company
to deal with the fuel problem. This will save the cost and will make the every route a profitable
one for the company and support in cover the operating cost. In addition to this, company can go
with restructuring of route as this will help in avoid the unprofitable route and company can
avoid the situation of financial lost (San, Omar and Thurasamy, 2015). For deal with the issues
of financial problem enterprise can cut down the cost and at the same time can change its current
business model, all this is a lengthy process. There is no doubt that restructuring of route save the
cost of company but at the same time this affect the personal lives of passengers. Further,
downsizing is the option which can be choose by company but due to this employees will loose
their jobs and option of restructuring of routes may neglect the requirement of minority group
that also wants the flying service (King, 2013). Due to all these issues Malaysia Airlines require
to handle all this with effective communication and negotiation with public an employees so
decision taken by company do not harm its branding.
Two damages in four month serve various damages to both financial status and branding
of Malaysia Airline. In this kind of situation, survive in this competitive business environment is
one of the major challenge faced by company due to lack of having experience deal with some
kind of issue. Malaysia Airlines require to get solution of both issues as both are interrelated
with each other. Restructuring and rebranding of airline is one of the best solution that can be
choose by company to develop good relations with its customers. Lesson learned by airline
would support the enterprise in handle the crisis in future in an effective manner. This also help
in safe the national brand and all rights of passengers (Mun, 2011). It is very essential for
company for formulate better policies and strategies so it can deal effectively if same situation
take place in future. In this way company can secure the safety and security of passengers and
can better satisfy their needs. With this customers will always think Malaysia Airlines before
other brands already exist in market.
Insights of customers on decisions
After the incident, whenever an individual think about Malaysia Airlines that he/she
always related it with factors of disaster and sadness. All this decrease the number of passengers
travel in Malaysia Airlines. Due to all this company face various issues such as problems of
financial and it become difficult for company to survive in business environment. When
company introduce rebrand and change its logo, name and design then it give rise to little
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confidence in mind of its customers and encourage them to go with Malaysia Airlines and
choose it over various airlines company exist in market (Mutum, 2017). Various customers give
different responses to this decision. For example when company introduce changes in its safety
measures then it encourage large number of customers to go with enterprise while on the other
hand this decision of company fail to regain all its customers. In order to get effective responses
from customers, it is very essential for company to first study the needs and requirements of its
customers. With help of research, company can identify the factors that influence customers to
buy company's product.
For get positive responses form customers, it is very essential for company to develop
effective mechanism for ensure safety and security of passengers (Musa, Othman and Muda,
2016). Every aspect related with past incident require to be consider by company for formulate
better strategies and policies to attract large number of customers towards its offering. In this
way, company can collect the positive responses form its customers.
Identify the needs of customers and fulfil their requirements in an effective manner is
very essential for an enterprise. After the incident Malaysia Airlines loose all its customers and
face so many problems and issues during its business activities. In order to regain its customer, it
is essential for enterprise to develop a mechanism to enhance safety and security of its
customers.
Various media sources were used to cover the content of Malaysia Airlines crisis. In the
starting stages of crisis coverage of media was around the clock. Media collect constant data
about the crisis in initial stages which was very limited. Media said that authorities of Malaysia
Airlines were very scrutinised about how they handled the situation of crisis publicly.
Academic literature about rebranding
Rebranding is a marketing strategy in which a company develop a new symbol, term,
name, design and combination of all these factors for create and already establish brand. Create a
unique identity in mind of customers, investors, rivals, suppliers and develop a totally new
product is known as one of the main reason behind rebranding. Major changes in logo, name and
image of brand is also include in rebranding (San, Omar and Thurasamy, 2015). This can be
applied to both new products and mature products. This is carry out company by introduce a
variation in its current business strategy and model. Whatever may be the size and type of
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business, main aim of rebranding remain to reposition the brand in mind of target customers of
company. Following are the main reason why individuals go with the rebrand. To remain competitive and relevant in business environment: Rebranding is chosen by
firms to attract large number of individual towards its offering. All this support company
in generate large amount of profits and at the same time ensure its survival in market. Bad reputation: This apply in the case of Malaysia Airlines. When a brand has a bad
reputation in market and all this largely affect its operations and profits then in these
cases rebranding helps in remove the negative impact of bad reputation in market (Matas
Milković and Mikulić, 2016). All the changes are introduce in various areas of business.
Rebranding is one of the only method though which a brand can achieve success. Conflict with stakeholder: Develop a brand in market in also leads as rebranding. All this
arise due to because a new style for one brand is too similar to an already existing brand.
Second reason is that sometimes rebranding is negatively received by various
stakeholders of company and all this create issues in success of company. Changing markets: Whenever a variation take place in take place in current market
trends then all this results and make the existence of company under threat. Changing
requirements call up for a different product and in this companies go for the rebranding.
 Internalisation: This is one of the another reason why enterprise go with rebranding.
When a company decide to go and operate its business activities on global level then in
that case rebranding become necessary (Nugraha, 2016). In certain areas a brand name is
may conjure wrong and this is one of the main reason why so many enterprises are there
who sell the same product in various countries under different brand names.
Malaysia Airlines go with rebranding the main reason behind that was bad reputation of
company. After the incident company loose its market share and faced a image of bad reputation
in case of safety and security of passengers. This was the main reason why Malaysia Airlines go
with the rebranding.
Malaysia Airlines is known as the brand that recently featured in media. One of the main
reason behind that is lost of one plane. Due to this today this brand is associated with factors
such as danger and disaster. All this give rise to negative perception among customer's mind and
put the airline under huge pressure.
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When safety of customers is known as one of the most important factor then a airline
brand which is managed poorly can totally harm. Rebrand support in disassociate the brand from
a disaster, it is very essential for airline to show that it is really introducing modifications to win
the trust of customers again (Othman and et. al., 2016). After this incident Malaysia Airlines
face a lengthy road to recovery. Company require both an internal and external change. In this
they can repaint the planes, change the logo but one of the main factor is that, company require
to change itself first. After that incident Malaysia Airlines became the enemy for so many
individual and a sources of frustration and anger.
As per the point views of Shafaei and Mohamed, 2017 brand is the one factor that
provide various benefits to company, without this it would difficult for company to make its
products and other offerings different form various competitors exist in market and this make the
survival of business enterprise difficult. One of the main benefit of brand is that it provide an
opportunity to company to charge premium price from its customers and this ensure repeat
purchasing by customers (Zibran and Atique, 2014). An enterprise invest huge amount of funds
in management of brand but despite of this it also require take various type of strategic
decisions. Variation changes take place in market on continuous make it necessary for
enterprises to go with rebranding as this help company in maintain number of its customers and
at the same time help in attract large number of other customers.
Shuk-Ching Poon and Waring, 2010 summarised that rebranding affect the responses of
customers in both positive and negative way. Number of enterprises are there that achieve
various benefits with help of rebranding.
Vrontis, Thrassou and Zin, 2010 concluded that role of branding is misunderstood by
large number of people as they think that it is only a process of a little variation in logo and name
of brand. Managers of company fail to understand the significance of corporate rebranding and
due to this they do not focus on public relations strategy to reposition the corporate brand. Large
number of firms thinks rebranding as a very costly and time consuming process and high risk is
involve in this due to more chances of failure.
Rebranding play a significant role in overall business process. Mainly the work rebrand is
a combination of two terms known as re and brand. Re is known as the means of doing same
thing for the second time (Wee and Hassan, 2014). Brand is known as the the name, logo and
sign which is used by firms to make its products differentiate from the other competitors and
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help customers to identify the same. So rebranding is known as the name, design and logo that is
used by company to raise a different position in mind of its customers, competitors and
stakeholders. Overall rebranding is a strategy more than changing brand name. Further, it help in
reformed the position of brand.
In today's changing business environment at a fast speed brand is the factor that support
company in remain competitive and better satisfy the needs of its customers. Wilson, 2014 said
that revitalizing the brand also means strengthen the brand equity and meaning. With credible
and enduring promise, rebranding help enterprise to strong its brand image. All this help
company in capture a larger market share and create a positive and effective image in mind of its
customers.
Process of rebranding involve various type of risks. When company launch a new name
then the old name become abandoned (Dennis, 2015). For the process of rebranding a model
was given by Muzellec and Lambkin that contain two major goals. One is to create a new brand
and second is to reflect the new brand. Major participants of this model include internal
employees as this help in create and reflect the cultural image and the other one is external
stakeholder that involve in create the image. For achieve the success of rebranding, it is very
essential for enterprise to first understand the main reason behind rebranding. Other significant
step which is very essential for creation of new brand is to formulate re-vision of the brand
whose main focus is to study and identify the needs and requirements of customers. Employees
of company play a big role in whole process of re branding as these are the one who support
company in create and maintain a unique and distinct image of company' product in mind of its
customers.
Overall concept of rebranding is one of the effective strategy that can be use by Malaysia
Airlines. With help of this company can maintain the maintain the security and safety of
passengers (Stockport, 2012). Further, in this way enterprise can get the trust of its customers
and can regain them. All this will remove the financial issue of company Yee Liau and Pei Tan,
2014. With help of restructuring company can deal with all the issues that company was facing
after the incident. With help of rebranding company can regain its old customers and at the same
time can attract large number of new customers.
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CONCLUSION
From the given project report, it can be summarised that brand is the factor that help
company in better satisfy the needs of its customers and ensure its long term survival.
Rebranding is an effective strategy that can be used by Malaysia Airlines to deal with the
consequences arise due to the incident. With help of rebranding company can introduce
necessary changes in its business model and structure and can enhance the measures related with
security and safety of enterprise. This is the only way through which enterprise can regain its
customers and at the same time can attract large number of customers towards its offering. It is
very essential for company to develop a effective crisis management team so company can
respond to the crisis in future in an effective manner. Whenever a situation arise, management
remain responsible to take relevant decision at fast speed. Only in this way Malaysia Airlines
can maintain the security of its passengers.
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REFERENCES
Books and journals
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Satisfaction, Service Quality and Service Branding. In Services Marketing Cases in
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evidence. Journal of Business Economics and Management, 11(2), pp.210-226.
Alserhan, B. A., 2010. Islamic branding: A conceptualization of related terms. Journal of Brand
Management. 18(1). pp.34-49.
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setting. Marketing Intelligence & Planning. 31(5). pp.557-578.
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skies: Investigating information exchange among Twitter users about
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difference between Tony Fernandes (Airasia) and Idris Jala (Malaysia Airlines)
leadership styles from 2005-2009. International Journal of Business and
Management. 8(24). p.107.
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promicanje kulture kvalitete i poslovne izvrsnosti. 10(1). pp.9-16.
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Airlines and Air Asia. African Journal of Business Management. 5(8). p.3410.
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Group: Case Study on Airlines Industry in Malaysia. In Regional Conference on
Science, Technology and Social Sciences (RCSTSS 2014) (pp. 283-289). Springer,
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Measurement Scale of Emotion. Procedia Economics and Finance. 37. pp.208-213.
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