April 24, 2024

Europe’s Small Airports Face Challenges

PARIS — For the first time in 16 years as managing director of Linz Airport in northern Austria, Gerhard Kunesch teamed up recently with his local chamber of commerce for help in securing new business.

Normally Mr. Kunesch deals one-to-one with potential partners, approaching airline executives with offers and pitches. But after years of declining passenger numbers in the wake of the 2008 global financial crisis, he decided he needed to try another tack.

Apparently, it worked: Five flights a day now depart from Linz for Vienna, instead of three.

“We are a very small airport,” Mr. Kunesch said in an interview. “We realized that we had to build partnerships and form alliances.”

Now, the success of that approach is redefining Linz Airport’s marketing strategy. Mr. Kunesch said he planned to hire a new employee in August to act as a liaison between the airport and the partnerships that he hopes to develop with tourism operators and local government offices. Together, these organizations can pool their resources and focus jointly on business development.

Linz is not alone in trying new tactics. Europe’s small airports, those serving five million passengers a year or fewer, are facing huge challenges.

With European economies flat-lining in the aftermath of the financial crisis, small airports have struggled to grow, and many are still losing passengers.

On average, their passenger traffic has grown just 1.6 percent a year since 2008, compared with an industry average of 7.3 percent; last year 45 percent of small airports actually lost traffic, according to a presentation given at a regional airports conference in Lyon in April.

Now, they are responding. “The airports used to sit and wait for the airlines to come to them,” said Olivier Jankovec, director general of Airports Council International Europe, a group that represents more than 450 airports in 44 European countries. “But this is no longer the case. You have to go out and lure the airlines to come to serve your destination.”

ACI Europe represents airports of all sizes, from the largest, like London Heathrow, to the smallest, like Linz. Together they handle 90 percent of commercial air traffic in Europe — over 1.5 billion passengers, 18 million tons of freight and more than 20 million aircraft movements each year. Out of this vast traffic, about 400 small airports together account for more than a third of the Continent’s passenger traffic, ACI Europe says.

Yet more than half of these airports are operating at a loss, the group says.

Perhaps the biggest cause of economic instability for small airports is their volatile relationship with low-cost carriers.

Small airports lack the capacity to serve more than a handful of airlines, so they often become highly dependent on those few for revenue. The carriers, however, are under no obligation to guarantee their business. That can leave airports like Glasgow Prestwick, in Scotland, in the greater Glasgow urban area, financially vulnerable. Since Wizz Air pulled out in March, the airport’s sole source of commercial business has been Ryanair.

Still, while their small size creates greater economic pressures for these airports, it also allows for more innovative approaches to recovery. Often, just a handful of people can decide to employ new strategies, like introducing a social media campaign, without having to gain the approval of an entire board or go through a lengthy review process.

“Working at a certain scale allows the company to be more nimble,” Robert O’Meara, director of media and communication at ACI Europe, said in an e-mail. A small airport, he said, “can respond quicker to challenges and opportunities, and experiment a bit in the way it promotes itself.”

New marketing tactics often aim directly at the passenger rather than the airline. Many airports, like Krakow Airport, in Poland, work to foster customers’ loyalty through reward programs offering prizes for frequent visitors, like free or discounted parking.

Article source: http://www.nytimes.com/2013/06/17/business/global/europes-small-airports-face-challenges.html?partner=rss&emc=rss

Campaign Spotlight: 3M Says, ‘Go Ahead, Make Something of It’

The campaign, now under way, is for Post-it notes, sold by the 3M Company. The campaign, which includes television commercials, ads online, the brand’s Web site and social media, portrays Post-its as much more than sticky pieces of paper that are good for scribbling reminders.

The campaign, with a budget estimated at $10 million, presents Post-its as a vehicle for self-expression by depicting the unusual and unexpected ways that consumers use them. That is different from the typical top-down tack in campaigns when marketers offer consumers new ideas for using products, most often seen in food ads that are centered on recipes.

The change in tactics by the Post-it brand is underlined by the theme of the campaign, “Go ahead,” which cheerfully encourages consumers to come up with their own nontraditional uses for Post-its. The campaign is being created by Grey New York, part of the Grey division of the Grey Group, which is owned by WPP.

The campaign is based on — and recreates — examples of Post-it creativity around the world. They include how passers-by blanketed a window of an empty store in Cambridge, Mass., with Post-its that replied to the question “Who inspires you?”; the so-called “Post-it wars” waged by office workers in buildings in cities like Paris and Seattle, who covered facing windows with thousands of Post-it notes to duplicate the look of pixilated images; and the initiatives by teachers who use Post-it products to enliven their classroom lessons.

The Post-it campaign is the most recent in a series of efforts by marketers to take advantage of a trend known as customization, which is particularly reshaping pitches aimed at millennial consumers in their 20s and 30s.

Customization refers to the penchant among younger consumers to be expressive and personalize mass-market goods — having it their way, to paraphrase the old Burger King slogan — as they seek to have a say in the story a brand is telling them.

Another example in the field of office products is a campaign by Draftfcb, part of the Interpublic Group of Companies, for the Sharpie brand of markers sold by Newell Rubbermaid, which carries the themes “Uncap what’s inside” and “Start with Sharpie.” The home page of the Sharpie Web site asks, “What are you starting?” and prompts visitors to “join the Sharpie community” and “show how creative you can be with Sharpie.”

The Post-it campaign begins as 3M reports strong results in its most recent fiscal quarter for sales of Post-its and other products sold by a business segment the company refers to as consumer and office, which includes office supplies and stationery.

The Post-it campaign is “a component of our overall revitalization strategy with the business and the brand,” says Jesse Singh, vice president for the stationery and office supplies division of 3M in Minnesota.

“If you think about the product, it’s iconic, it’s been in the market over 30 years,” he adds, and until recently the strategy to sell it was by “taking a functional view of the brand.”

“As we did research on our customer base,” Mr. Singh says, the crucial finding is that people “had a much more emotional relationship with the product” than 3M executives had expected.

“They’re using it to communicate, using it to collaborate, using it to organize themselves,” he adds.

That led to a rethinking of how to market Post-it, Mr. Singh says, shifting from a “product-out” perspective to one that is “really consumer-in.”

“We were inspired,” he adds, by the “quirky and inspired uses of our product.”

That is brought to life in the initial two TV commercials in the campaign. One, which runs 60 seconds, is composed of vignettes. The spot begins with a man sticking a Post-it, which reads “Morning, beautiful,” and includes a pointing arrow, onto the mirror on the bathroom medicine chest as a woman brushes her teeth. “Go ahead, keep the honeymoon going,” a narrator says.

The scene shifts to what appears to be a college campus as young people affix Post-it notes to a wall outside a building that is near a sign reading, “What inspires you?” As that vignette, clearly based on the Cambridge store window, appears on screen, the narrator says, “Share on a real wall.”

Other vignettes include people adding Post-its to a wall covered with them, which is divided into categories like “App name” and “Features”; a woman sticking Post-its bearing tasks onto windows; a young man covering a wall with artwork created with Post-its of multiple colors; a young woman with a notebook filled with drawings of bridges and Post-its, who is posed between two bridges; and students with a teacher in a classroom.

Article source: http://www.nytimes.com/2013/01/28/business/mutfund/3m-says-go-ahead-make-something-of-it.html?partner=rss&emc=rss

You’re the Boss: Angel Investors Learning to Assess Business Plans

Nancy Y. Taylor (standing) pitches her company, Gifts that Give.Erica TorresNancy Y. Taylor (standing) pitches her company, Gifts That Give.

She Owns It

Portraits of women entrepreneurs.

In April, I wrote about the Pipeline Fund Fellowship, which is training its inaugural group of 10 female fellows to become angel investors. Since then, the fellows have moved several steps closer to choosing the business that will receive their pooled resources of $50,000. During a daylong event held last month at Eileen Fisher headquarters in Irvington, N.Y., they heard pitches from 10 start-ups seeking financing and narrowed the field to three. Of those, one will be chosen to receive the $50,000.

A total of 52 companies applied to pitch. Pursuant to Pipeline Fund Fellowship rules, each had to be a for-profit, social venture led by a woman. “In about a third of the applications, it was clear people hadn’t listened,” said Conor Barnes, a fellow and a bookkeeper with Good Cents Bookkeeping, a provider of financial management services for small businesses.

Ms. Barnes said that in the weeks before the event the fellows quickly eliminated applicants who failed to satisfy basic requirements and invited 13 companies to pitch (three declined for various reasons). Each fellow was then assigned one of the companies to research in preparation for leading the questioning after the pitch.

Ms. Barnes said that during the pitches, she hoped to hear that the founders had more than “just another new product or service.” In addition to articulating the venture’s social impact and detailing how it would use the $50,000, she expected the founders to demonstrate that their companies were game-changers. She also wanted founders to explain why they had approached Pipeline — and not, for example, a bank or venture capital firm. (Kelly Hoey, a fellow, said scarce financing options probably drove some of the entrepreneurs to grasp at any opportunity without regard to fit.)

Companies that had already built communities and connected with their target markets through, for example, a Web site, were appealing to Ms. Barnes. To further impress her, founders had to demonstrate that they were coachable. The best way to do that, she said, was to answer the fellows’ questions. “If we ask, ‘What’s your revenue?’ just give us the number,” she said. She estimated that founders answered only about 25 percent of the questions asked.

Elizabeth Crowell, another fellow, said she was amazed that “nearly every pitch failed to outline how much the product or service cost and its price to customers.” She said that although the founders sat in on all the pitches and heard the fellows repeatedly ask these questions, later presenters didn’t work cost and price data into their seven-minute pitches. Over all, though, Ms. Crowell said the pitches impressed her, particularly given that the founders were “as green as we the investors.”

In the days following the pitches, the investors conferred and chose to move forward with due diligence on three ventures: Just Shea, an organic cosmetics company ; LuminAID Lab, a provider of portable lighting for victims of natural disasters (formerly the Solar Light Pillow Project); and PhilanTech, which develops and sells an online grant-management tool for nonprofit organizations and foundations. Throughout the selection process, Ms. Crowell said, she was struck by the degree of alignment among the “10 fairly opinionated” fellows.

Both Ms. Crowell and Ms. Barnes said they are hooked on investing. Ms. Crowell said that she sees herself continuing to work as part of an angel network or group going forward. Although Ms. Barnes said she loved investing as part of a group, she had decided she could also go solo. “This experience has gotten me really excited to think of myself as an investor,” she said.

The fellows will spend the summer applying the lessons they learn at a coming due diligence workshop, and the company chosen to receive their investment will be announced in October. I’ll report back on how the process unfolds.

You can follow Adriana Gardella on Twitter.

Article source: http://feeds.nytimes.com/click.phdo?i=69b1292fae4b3f05ad3f30d2394831b7