Alaska and the Virgin: Why being cool is not enough

There's been a lot of huffing and puffing across the brand community about Alaska Airlines’ decision to shutter the recently-acquired Virgin America brand. Now, I know that Virgin America was a refreshingly fun brand in a decidedly crappy industry. It managed to make even the discount ticket flier feel a bit special for the hours before and during their journey. For that, the team that created Virgin America should be applauded. But, Alaska didn't buy Virgin America for the brand. It bought it for the business.

Alaska didn't buy Virgin America for the brand. It bought it for the business.

by 2019, alaska airlines will stay, while Virgin america will retire

by 2019, alaska airlines will stay, while Virgin america will retire

 

In the US, the airline category is highly competitive in most major markets. It's an industry of price wars, cost cutting and asset utilization. Only the most active customers are brand loyal, and corporate procurement teams are even eroding that aspect of things. Instead, travelers visit 3rd party sites, and make trade offs between schedule and price. At best, brand gets to be a tiebreaker. In the world of airlines, brand is just along for the ride. So why is it that so many brand folks are up in arms over Alaska's decision to sacrifice Virgin?

even Virgin America's Safety videos are cool (source: Virgin America)

even Virgin America's Safety videos are cool (source: Virgin America)

For decades, brand was a decidedly unaccountable part of business. Clients’ spouses and children were allowed to make what agency folks saw as important decisions. Even as research became available to help shape our thinking, too much of the “brand expertise” large agencies relied upon was subjective at best.  I stopped counting long ago the number of agency proposals that argued that a strategy was good because it would help make a brand cool. And, at its heart, what made so many brand and marketing folks excited about Virgin America was that it was cool.  

The comments and arguments that the Alaskan Airlines leaders don't appreciate brand, don't know what they bought or that they epitomize what's wrong with the airline industry have gotten it all backwards. It's those of us in the brand world who have it wrong.  

But, cool does not a business make. The comments and arguments that the Alaskan Airlines leaders don't appreciate brand, don't know what they bought or that they epitomize what's wrong with the airline industry have gotten it all backwards. It's those of us in the brand world who have it wrong.  

When we talk of relevance, we usually use it to refer to consumer relevance. There's another type of relevance that usually gets forgotten about: company relevance.

When we talk of relevance, we usually use it to refer to consumer relevance. There's another type of relevance that usually gets forgotten about: company relevance. Just because a certain position fits with what consumers find interesting or cool does not make it right for a given business. Brand needs to fit the business strategy, not the other way around. Early in my career I used to talk about how companies should strive to be brand-led, where every decision was made with brand in mind. I had charts, diagrams and case studies that put forth brands that led their businesses, saying no to seemingly lucrative business paths for the simple reason that they didn't fit the brand. I was wrong. Those businesses were not brand-led. Their brands were business-aligned. 

Those businesses were not brand-led. Their brands were business-aligned.  

Brands that work best are those that work for their business. Contrary to what many consultancy league tables claim, strong, valuable, famous or even simple brands are not the key to business success. Brands that effectively express the business’s strategy and value proposition, put it in terms that make sense for consumers, and stand out in the market are the ones that matter. The challenge of defining and delivering a brand is not in coming up with a cool line or logo. It’s in finding a way to connect what a company is actually all about and what consumers care about. That is when you end up with brands that are relevant (to both the company and its customers), authentic and differentiated.  And when that happens, you end up with a brand that works for the business that owns it.

Which brings us back to Virgin America. As a brand it was undoubtedly relevant to consumers and to the business. It was true to what the Virgin group is all about. And it stood out in a sea of run of the mills airline brands. But, as a business Virgin America was stuck. Growth was limited, pricing power was non-existent and it was just another one of the many brands that you got to choose from in your Kayak search. Alaska Airlines wanted Virgin’s routes, it’s gates and its aircraft. But, Alaska Airlines didn’t want Virgin’s brand. As a low-cost carrier, the idea of licensing a brand that didn’t really work for its business going forward isn’t just silly, it is irresponsible. It won’t drive seat utilization, it won’t drive choice, and it would only add to costs. The Virgin America brand just doesn’t align with Alaska Airlines’ business.  

When agencies start putting diagrams with brand at the center of everything in front of you, call them out on it.

So, what’s the lesson in all this? As clients, marketers and brand leaders have an obligation to make sure that whatever they do, they do it in service of the business they work for. Sure, they might be able to use brand-led thinking to drive change, but that change has to be in line with the strategic vision for the firm. When agencies start putting diagrams with brand at the center of everything in front of you, call them out on it. At best, they’re trying to stroke your ego; at worst, they’re clueless about what brands are supposed to to.

Brands are not art to be appreciated in a gallery. They are tools. And the only tool worth having is one that works.

And for those of us who consult, advise and shape brands for a living, stop being so in love with our opinions, stop self-aggrandizing, and start reminding ourselves that brands are not art to be appreciated in a gallery. They are tools. And the only tool worth having is one that works.