Navigating turbulence: how Qantas can rebuild its damaged brand
In the world of branding, few names have been as synonymous with excellence and trust as Qantas, the iconic Australian airline often referred to as "The Spirit of Australia." For decades, Qantas soared above its competitors, earning a reputation as one of the world's most esteemed airlines. However, recent events have caused a significant dent in its once-impeccable brand.
The airline's reputation is in crisis, and it's up to new CEO Vanessa Hudson to steer Qantas back on course. We delve into the challenges Qantas faces, explore the potential strategies that can help it recover, and draw inspiration from other brands that have successfully navigated similar crises.
Qantas, once celebrated as a paragon of Australian aviation, now finds itself grappling with a multifaceted crisis. Issues that have come to the forefront include the illegal sacking of 1700 workers during the pandemic. The airline also faces legal action from a consumer watchdog, which could result in a staggering $600 million fine. All this off the back of soaring delays and cancellations in 2022 which seeded the brand damage.
The departure of former CEO Alan Joyce, a key figurehead for Qantas, leaves the brand at a crossroads. Vanessa Hudson has taken the helm earlier than expected and inherits a company reeling from reputational damage.
The first step in rebuilding Qantas' damaged brand is to acknowledge that the problems are deep-seated.The airline's reputation has taken a significant hit in recent years. Research firm Roy Morgan reported that Australians now consider Qantas to be the 13th most distrusted brand in the country's economy, a far cry from its previous standing as the third most trusted brand just three years ago.
However, there's hope. As aviation expert Geoffrey Thomas notes, the airline is on the right trajectory, thanks to the groundwork laid by Alan Joyce. The next six months are expected to bring significant improvements, and Vanessa Hudson is in a position to capitalise on this momentum. She can leverage Qantas' successes, such as its record pre-tax profit of $2.5 billion earlier this year, and further build upon them to regain trust.
But how can a brand like Qantas, currently in crisis, regain the trust of its customers and stakeholders? Marcus Gibbs, Director of Dovetail Brand Engagement, suggests a multi-pronged approach that Qantas can consider, drawing inspiration from other brands that have successfully navigated similar crises.
1. Reconnect with customers
Qantas needs to reconnect with its customers, not just as passengers but as loyal advocates. This can be achieved by addressing the grievances of those who felt mistreated during the pandemic, compensating where necessary, and reassuring customers of better treatment in the future, and it seems as if they are already on the right trajectory with timelines on credits being lifted. Companies like Starbucks, which faced a significant brand crisis in 2018, have successfully reconnected with their audience by listening to their concerns and implementing tangible changes.
2. Transparency and accountability
One of the critical aspects of brand recovery is transparency and accountability. Vanessa Hudson can take cues from Johnson & Johnson, a company that faced a massive crisis due to product recalls of Baby Powder. They regained trust by being open about their mistakes, recalling faulty products, and taking steps to ensure a safer future. Qantas may adopt a similar approach, addressing its past wrongdoings and demonstrating a commitment to doing better. Recent events with releasing extra rewards seats is a good start.
3. Employee engagement
As Marcus points out, "Your employees are your brand's best ambassadors." It's crucial for Qantas to repair its relationship with its workforce and provide a supportive and engaging work environment. The airline can learn from companies like Zappos, which is renowned for its employee-centric culture, leading to an enhanced customer experience. (For more on this read our article on Employee Ambassador Program)
4. Community involvement
Engaging with the community can help rebuild trust and create a positive brand perception. Brands like Lego have successfully done this by supporting education and children's causes. Qantas already has initiatives that reflect its commitment to the Australian community and its well-being - leveraging these would help to counter the negative trust issues that the brand is currently facing.
5. Authenticity
“When brands are inauthentic, consumers rally against them” says Marcus. Consumers need to see authenticity and a real willingness from the airline to make changes that are promised. The role of the new CEO is going to be crucial here - can she ensure that the airline operates from a point of authenticity through every touchpoint?
While Qantas may be facing a brand crisis today, it has the potential to recover and regain its position as a trusted and revered brand. New CEO Vanessa Hudson has inherited an airline on the cusp of positive change - whichever way it goes there is no doubt that the brand is now in a new era.
Dovetail Brand Engagement is your partner in navigating the complex world of branding. With our team of seasoned brand experts, we provide the strategic insights and creative solutions needed to elevate your brand, no matter the challenges it may face. From crisis management to brand revitalisation, we've got you covered.
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