2. COMPANY OVERVIEW
• Incorporated on November 15, 1948 as a state owned company. In 2003, steps for privatizing the Company have
begun, and its shares were offered to the public.
• The increasing number of competitors carriers for flights between Israel and Europe caused a problematic business
situation since El-Al‘s association with Israel affected many of the company’s services
• El-Al now had to be presented as one that is valued by international standards and provide value for its costumers
regardless of the company’s origin
• As a response to the increased competition, in 2014 the Company launched a new aviation brand in the name of
"UP" under which discounted flights were operated in the form of low cost flights to destinations in Europe.
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EL-AL AIRLINES n.d, EL-AL Israel Airline History. Retrieved from http://www.elal.com/en/About-ELAL/About-ELAL/History/Pages/default.aspx
3. PERCEPTION OF THE BRAND IMAGE
The logo’s ‘Mere Exposure effect’
The use of the Israeli flag image and colors all
elicit favorite attitudes simply because we have
been expose to it in the past.
Personally Relevant Stimulus
Using associations to Israel in order to appeal to
consumers’ goals, values and needs.
El-Al uses the national anthem and Israeli celebrities in
order to target the consumer attention
Patrick Perelsztejn 6.4.2008, EL-AL HATIKVA ISRAEL 60, Television clip. Retrieved from https://www.youtube.com/watch?v=iVS1yoZMY9I
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4. Perception of Brand Image, Brand
Personality and Routes of Processing
Brand Image
Uses a strong linkage of
Cognitive and Emotional
association to Israel. Uses
scripts regarding the
sequences of actions that
relates to purchasing and
using the product- Hebrew
speaking crew, Kosher
business etc…
Motivation Ability and
Opportunity
High Motivation- high personal
relevancy. EL-AL answers unique
needs for the consumers.
Ability- using previous
knowledge about the brand
history is required.
Opportunity only for the target
audience who wants to fly to
and from Israel
Brand personality
High on Competence-
expertize presented in the
different operation El Al
participated along the years
High on Warmth-
connection to the Israeli
culture and the
contribution it has to the
Israeli society.
Based on: Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer behavior. Nelson Education.
Aaker, J. L. (1997). Dimensions of brand personality. Journal of marketing research, 347-356.
Malone, C., & Fiske, S. T. (2013). The human brand: How we relate to people, products, and companies. John Wiley & Sons.
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5. North America Campaign Analysis
Two different Market Segments
Israeli consumers who are looking to travel to
North America .
Non Israeli consumers looking to visit Israel
EL-AL AIRLINES 12.10.2014, The Israeli Journey starts with EL-AL. Retrieved from https://www.youtube.com/watch?v=QQI3lEwWtgM
Rabel rabel rabel 7.20.2015 EL-AL Boston. Retrieved from https://www.youtube.com/watch?v=5DMYzvwiaW8
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6. North America Campaign Analysis
Using Attractive Actors and Pleasant Music -More noticeable and often arouse positive feelings
and attract consumers to watch the commercial. By pairing them with the brand consumers will
ultimately attribute the positive feelings with the conditioned stimulus- the El-Al brand
Concrete and Vivid Imagery- concrete stimulus are easier to process than abstract ones.
Consumers match the images to the goals they look to achieve in using the brand
US US CS
Effecting Consumers’ Attention:
Based on:
Burroughs, W. J., & Feinberg, R. A. (1987). Using response latency to assess spokesperson effectiveness. Journal of consumer research, 295-299.
Kellaris, J. J., Cox, A. D., & Cox, D. (1993). The effect of background music on ad processing: A contingency explanation. The Journal of Marketing, 114-
125.
Pavlov, I. P. (1932). The reply of a physiologist to psychologists.
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7. North America Campaign Analysis
Using a Surprising Stimulus: The use of the stimuli out of context arouse the
viewer curiosity as it makes an effort to process and analyze the situation
ultimately leading to increased attention
Effecting Consumers’ Attention:
Based on: Menon, S., & Soman, D. (2002). Managing the power of curiosity for effective web advertising strategies. Journal of Advertising, 31(3), 1-14.
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8. North America Campaign Analysis
Similarities and Differences between campaigns for High MAO central route processing attitude
formation:
Aspect Factors influencing attitude Non Israeli market segment Israeli Market segment
Emotional
Symbolic consumption-
tendency for consumers to
focus on meanings beyond the
tangible, physical characteristics
of material objects
Connectedness function- address the
consumer connectedness to the Israel society
and the experience of visiting it
Emblematic function- states that by using
the brand the consumer connects to his
social group
Emotional Appeal-affective
shaping of consumers’ attitude
toward trying the product
Consumers viewing the commercial can place themselves in the situation presented and
experience the positive emotions triggered from it.
Cognitive
Match between the Consumer
Values and the brand
Individualistic values- The ability of the
experience to match different individual goals
as they visit Israel.
Equality values- different ethnicities, religions
and ages enjoying the brand
Individualistic values- The advantage of the
vacation while enjoying the quality and
familiarity of home.
Masculinity Positive attributes formed from
having an army trained male pilot
Based on: Levay SJ, (1959), Symbols for Sale. Harvard business review 37 (4), 117-124
Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer behavior. Nelson Education.
Kim, J., & Morris, J. D. (2007). The power of affective response and cognitive structure in product-trial attitude formation. Journal of Advertising,36(1), 95-
106.
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9. The ‘Open Sky’ Crisis
The ‘Open Sky’ agreement created a free-market environment
thereby increasing competition.
In response the company launched a new aviation brand in the
name of "UP", under which low cost flights are operated in an
attempt to increase Operational Effectiveness.
El-Al trade off, presented by the strategic positioning, creates a
uniqueness for the brand. Nevertheless El-Al management
choose to keep the UP brand and try to match current
competitors by providing low cost flights.
Based on: Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate
strategy. Managing the multibusiness company: Strategic issues for diversified groups, New York,
285-314
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10. The UP Brand as EL-AL Horizon Two
Horizon Two- the single minded drive to increase revenues. The Up brand provides
access to the new market of low cost flights.
???
Based on: Baghai, M., Coley, S., & White, D. (2000). The alchemy of growth: Practical insights for building the enduring enterprise. Da Capo Press.
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11. EL-AL Functional Fit
Israel Airline
Only Israeli
air force
pilots are
hired
Only
Israeli
security
Longer
security
process
Low rate
for
organized
Jewish
groups
Executing
operations for
bringing Jews to
Israel
Jewish
Heritage
Keeping
a Kosher
business
Does not
operate on
Saturdays
and high
holidays
Traditional
Israeli food
is served on
flights
Israeli
movies and
shows
during
flight Kosher
Meals
Based on: Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company:
Strategic issues for diversified groups, New York, 285-314
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12. UP and EL-AL Strategic Positioning
“Not just an airline”-
consumers look for
the experience of
Israel as they use the
brand
Consumers are
looking for a fast and
efficient service from
the airline
The importance
of maintaining
high level
security
Security is not
important if it hurts
check in times.
Need Based
Positioning
Access Based
Positioning
Comparing Costumers’ Needs and Accessibility of services for EL-AL and the new UP Brand.
Based on: Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company:
Strategic issues for diversified groups, New York, 285-314
EL-AL consumers Low Cost airlines
Consumers
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13. RECCOMENDATIONS
1.Two Separate Brands: El-Al should present a separate brand from UP in order to
minimize the overlap of attributes and present a new brand image specifically for the
target consumer of low cost airlines.
THE NEW UP BRAND ATTITUDE FORMATION
Emotional Aspects:
Changing colors and removing the Israeli flag.
Focusing more on emotional appeal of the new
presented brand than the emotions elicited by
the Israeli associations.
Cognitive Aspects:
Presenting supportive arguments: Best quality
of pilots, Efficient way to fly etc...
Presenting an attractive source which is similar
to the target consumer : business men, young
couples etc….
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14. RECCOMENDATIONS
2. Building horizon 3:
The El-Al brand presented horizon one as the experience of Israel. This quality can be a useful
association when forming the third horizon which will involve cooperating with other products who
offer the Israel experience.
Brand extensions will present horizon three as a well-organized travel experience for both domestic
costumers traveling abroad and international consumers visiting Israel.
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EL-AL AIRLINES n.d, UP Web site. Retrieved from http://www.flyup.co.il
15. References
Aaker, J. L. (1997). Dimensions of brand personality. Journal of marketing research, 347-356.
Baghai, M., Coley, S., & White, D. (2000). The alchemy of growth: Practical insights for building the enduring enterprise. Da
Capo Press.
EL-AL AIRLINES 12.10.2014, The Israeli Journey starts with EL-AL. Retrieved from
https://www.youtube.com/watch?v=QQI3lEwWtgM
EL-AL AIRLINES n.d, EL-AL Israel Airline History. Retrieved from http://www.elal.com/en/About-ELAL/About-
ELAL/History/Pages/default.aspx
Hoyer, W. D., MacInnis, D. J., & Pieters, R. (2012). Consumer behavior. Nelson Education.
Kim, J., & Morris, J. D. (2007). The power of affective response and cognitive structure in product-trial attitude
formation. Journal of Advertising,36(1), 95-106.
Levay SJ, (1959), Symbols for Sale. Harvard business review 37 (4), 117-124
Malone, C., & Fiske, S. T. (2013). The human brand: How we relate to people, products, and companies. John Wiley & Sons.
Patrick Perelsztejn 6.4.2008, EL-AL HATIKVA ISRAEL 60, Television clip. Retrieved from
https://www.youtube.com/watch?v=iVS1yoZMY9I
Porter, M. E., Goold, M., & Luchs, K. (1996). From competitive advantage to corporate strategy. Managing the
multibusiness company: Strategic issues for diversified groups, New York, 285-314
Rabel rabel rabel 7.20.2015 EL-AL Bostong. Retrieved from https://www.youtube.com/watch?v=5DMYzvwiaW8
EL-AL AIRLINES n.d, UP Web site. Retrieved from http://www.flyup.co.il
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