Value Innovation in Action: Promotion and Place
This is the second half of an extraordinary dive into value innovation, or what INSEAD professors Chan Kim and Renée Maugborgne call Blue Ocean Strategy.
In this part of our incredible interview with JetBlue Airline’s General Manager Europe, Maja Gedosev. Together, we explore the amazing ascent of JetBlue through the Place, Promotion element of the Marketing Mix.
JetBlue has carved out a unique positioning as New York’s domestic airline. Its strategy and marketing was so flawless, it’s been studied by all the best business schools.
Now, JetBlue’s story continues to unfold as the challenger airline tackles the transatlantic trade. It’s a path others have tried but failed to sew up. JetBlue has taken a totally different approach to other challenger airlines. It has succeeded in offering better value and a differentiated offering – hallmarks of value innovation.
About Maja Gedosev
Maja Gedosev is the General Manager Europe for JetBlue Airways, responsible for sales, marketing, communications, government and regulatory affairs.
Based in the UK, Maja was instrumental in the successful launch of the JetBlue’s first ever transatlantic flights between New York and London Heathrow in August 2021 and New York and Gatwick Airport in September 2021.
In summer 2022, Maja supported further JetBlue growth across the Atlantic with daily flights launching between Boston and both London Gatwick and Heathrow airports. These were followed by additional daily flight between New York and London Gatwick in October 2022, taking JetBlue to a total of 5 daily flights across the Atlantic.
Maja has also now launched Paris to New York flights (June 2023) and Amsterdam to New York and Boston flights (August and September 2023 respectively).
Maja joined JetBlue from a U.K. regional carrier Flybe where she was Director of Communications, responsible for government affairs, consumer PR, sponsorships and brand building.
Prior to moving to the U.K, Maja was the General Manager Commercial and Corporate Affairs at Air Seychelles and before that Head of Corporate Affairs for Air Serbia, both airlines part of the Etihad aviation Group. Her aviation career started as a ground handling agent for Lufthansa. Outside the industry she has also worked in a range of pharmaceutical and financial consulting roles.
Maja is very active in diversity efforts and is a member of the Women in Aviation Charter initiative, frequently speaking to young girls about pursuing careers in aviation.
Maja is a proud mom of two daughters, Mia (18) and Sofija (14). She has two Westies called Jet and Blu and is a passionate runner.
Links
LinkedIn: Maja Gedosev | Dom Hawes
Websites: JetBlue | Selbey Anderson
Other items referenced in this episode:
Timestamped summary of this episode
00:01:31 - Capitalizing on New York heritage
Maja discusses how JetBlue capitalizes on its New York heritage by incorporating elements of the city into its onboard experience, such as New York-inspired cabin decor and food from popular New York restaurants.
00:03:45 - Using partners to raise awareness
Maja explains that during the pandemic, JetBlue relied on partnerships with the travel trade to raise awareness and promote the brand. The trade became ambassadors for JetBlue and helped push out the message.
00:04:49 - Promotional mix and PR
Maja discusses how PR played a significant role in JetBlue's entry into the UK market. They utilized trade press and key media outlets to generate buzz. They also focused on digital advertising and later launched a B2C campaign with a tagline.
00:08:06 - Social media and sponsorship
Maja highlights JetBlue's strong social media presence and personalized interactions with customers. They aim to resolve issues and bring a human touch to social media interactions. Maja also mentions JetBlue's sponsorship activities in the US and their partnership with communities in the UK.
00:14:14 - The Power of Honesty
Maja discusses how JetBlue's admission of the mistake and taking responsibility helped them gain trust and loyalty from customers.
00:15:07 - Thinking Outside the Box
JetBlue's unique approach to entering a new market by focusing on building relationships with traditional travel industry partners and offering something different sets them apart from competitors.
00:16:17 - Multi-Channel Distribution
JetBlue utilizes both direct online bookings and partnerships with travel agents to cater to different customer preferences and ensure a wide distribution of their services.
00:17:14 - Investing in Relationships
JetBlue goes above and beyond to build strong relationships with travel agents and industry partners through various initiatives, such as organizing visits, fam trips, and partnerships with tourism organizations.
00:19:39 - Collaboration and Cooperation
JetBlue's non-aligned status allows them to choose partners based on shared values and goals, even if they may be seen as competitors. They focus on cooperation and finding ways to work together to benefit customers.
00:28:16 - Reimagining Value
The discussion explores the concept of reimagining value and how companies like JetBlue have gone above and beyond in their approach. This approach is compared to the "start stop" philosophy outlined in Chan and Maugborgne’s teaching.
00:23:24 – Blue Ocean Strategy: Overiew
Chan Kim and Renée Maugborgne’s book, Blue Ocean's Strategy describes the pursuit of differentiation and low cost to open up new market spaces and create new demand. It's all about creating and capturing new customers and demand and breaking away from the competition. The author's theory is that just about any business can find a blue ocean, and that includes you.
00:25:07- Blue Ocean Strategy: Where to start
Host Dom Hawes suggests you read the book Blue Ocean’s strategy which includes fascinating case studies on businesses like Cirque du Soleil and Southwest Airlines.
00:28:43 – Blue Ocean Strategy: Starting Strategy with Customers
The conversation challenges the traditional approach of starting strategy with the market and instead advocates for starting with customers. It highlights the difference in execution between value innovators and differentiators/price leaders.
00:29:09 - Blue Ocean Thinkers
Blue ocean thinkers rewrite the rulebook and focus on buyer utility. They look beyond the traditional customer base and emphasize meeting customer needs and enhancing their experience. JetBlue's approach of understanding customer utility is highlighted as an example.
00:29:30 - Analyzing Buyer Utility
Analyzing buyer utility is the method used to go beyond the status quo and understand the value customers perceive from a product or service. JetBlue's understanding of customer utility becomes the starting point for their strategy.
00:30:04 - Importance of Buyer Utility
Buyer utility is stressed as the starting point for strategy. The host recommends being involved in fieldwork and understanding customer needs and expectations. The chapter ends with a thank you to the guest and a mention of the Unicorny project.
This podcast uses the following third-party services for analysis:
Chartable - https://chartable.com/privacy
PLEASE NOTE: This transcript has been created using fireflies.ai – a transcription service. It has not been edited by a human and therefore may contain mistakes.
00:03
Dom Hawes
Welcome back to Unicorny’s forage into the amazing world of Blue Ocean strategy with Maja Gedosev from JetBlue. Now, in part one, we introduced you to Maja general manager, Europe for JetBlue and we talked to you about them being a blue Ocean strategy exemplar. I hope you found Meyer's energy, passion and fizz as infectious as I did and if you did, wow, you are in for another treat this time around. Now, in part one we talked product and price. In this part we're going to talk place and promotion and at the end I'm going to summarize both parts by looking at blue Ocean strategy and how JetBlue has applied some of its most important facets. So you get some neat takeaways at the end of today's show. Now, as always, you will find very comprehensive show notes on our website at unicorny.co.uk And we will also be inviting you to discuss this content through the Marketing Difference newsletter, which you can find on my profile on LinkedIn.
01:06
Dom Hawes
And that, again, is Linked from the Show Notes today I don't want to waste any time, I want to get straight into it. So Maja, welcome back. Let's talk promotion. This is another really exciting area of development for JetBlue. So to start with, I think there's a master straight you guys have pulled off which is capitalizing on the importance of your New York heritage as you say, you are New York's airline. Talk to me a little bit about this because I love it.
01:31
Maja Gedosev
We have this benefit that we come from Queens. We are a New York's hometown airline and we are the airline that operates out of JFK airport, other New York airports as well. But for this purpose in transatlantic market, we are operating out of our own terminal and we are very much New York. Everything about our onboard proposition is New York. If you look at our onboard cabin, it reflects sort of the New York lifestyle. The food that we serve comes from New York brand restaurants. We have Pasquala Jones, Charlie Bird, we have in the back dig that we serve really fantastic concepts that people will want to this is the current lifestyle actually we're very current in that sense in our toilets, for example, on board you'll see like blue tiles that remind of the Grand Central Station tiles. It has this link back to New York.
02:26
Maja Gedosev
This is what we want people to also feel that we are a true New York airline and that they're going to basically have that experience even though maybe they're not going just in New York, but going beyond that's kind of the thing. When we entered the UK market, it was a lot about Jet, who.
02:46
Dom Hawes
That'S.
02:47
Maja Gedosev
A cruel I know. And by the way, we accept that because not everybody that works also in the travel industry, unless you've travelled to the United States and had experience to fly with us, you wouldn't probably know JetBlue up until recently. Now we're changing this story. This story has changed significantly over the past couple of years. We had to find the quickest and most efficient way to actually put our brand out there, to raise awareness. And just imagine it was during the pandemic where there were no events. What was the point of putting any billboards out or putting anything anywhere? People weren't staying in their homes. You wouldn't have that frequency of by passers reading, oh, look, JetBlue is here. Underground was shot. It was quite difficult. So we said, all right, fine. What we need to do is get ourselves good, strong partners through the travel trade to actually push the message out.
03:43
Maja Gedosev
So this is how we kicked it off. We actually used the intermediary to basically push out the message. We talked to the trade, we worked with them closely, and by the way, I can just be super grateful for that. They became our ambassadors over time.
03:58
Dom Hawes
I'm not surprised everyone else is trying to disintermediate them at the time.
04:01
Maja Gedosev
Totally. And by the way, the trade was also on their knees at that point in time. They needed something fresh, new. It was a win again. We basically found a way to work with trade to bring for them a new, fresh product, completely innovative, with good fares, with opportunities to actually earn working with us as well.
04:23
Dom Hawes
Tell me a little bit about the promotional mix and how that works in the UK. You've hinted at the moment that when you landed in the Can't, I've got to stop using these aircraft puns. Sorry. When you launched in the UK that you went through the trade and I'm going to come on to social and sponsorship in a minute, but what else is working for you at the moment? Are you now advertising using direct mail or PR or in the promotional mix, what's working for you?
04:49
Maja Gedosev
To begin with? PR was extremely important and I think we kind of rode on that wave of the PR. We entered at a time completely unexpected for an airline to do so.
04:59
Dom Hawes
Yeah, totally.
05:00
Maja Gedosev
So it was all over the media.
05:01
Dom Hawes
Everyone else was asleep.
05:02
Maja Gedosev
Exactly. I mean, people were trying to look inwards, mostly to look, what do we do with ourselves? How do we save our companies? And we basically announced, we're coming.
05:12
Dom Hawes
That was through trade press, and that.
05:13
Maja Gedosev
Was through all press.
05:14
Dom Hawes
Okay.
05:15
Maja Gedosev
We had, at that point, interviews with our leadership. Our CEO, who is actually British, had key interviews with key media on this end. We worked with the Telegraph, the Times, Sunday Times. Those were the kind of media outlets. And of course, we looked to also deploy the social media assets, because at that point you're thinking, all right, the digital is probably the best and most cost efficient way to get out there. And everybody was constantly on their phones and computers, so it was the right way to reach the customer at that point in time. A bit later only, went with a B to C campaign that involved sort of a tagline, we are great comma Britain. Okay, yeah, we had that for a while on Cromwell Road, posted out there. It was still a difficult and challenging time, let's say as aviation industry, were not yet back on the horse, not yet really functioning.
06:15
Maja Gedosev
And we had the Omicron coming around. So it was like the leftovers of the pandemic still there.
06:19
Dom Hawes
God, I've forgotten about Omicron.
06:21
Maja Gedosev
Oh, yes.
06:22
Dom Hawes
So you did a little bit of outdoor and plan for the future, maybe outdoor again.
06:26
Maja Gedosev
So here is how we think about that. And honestly, I've been observing a little bit, as you can imagine, we are entering this is not our home market. This is the market where we entered as a new Entrant. And whatever we do, it will be a drop in the ocean. We will never be able to pull out campaigns that last over months and have that continuity that our competition has. But what we will do is we will definitely rely on partnerships, huge partnerships with tourism boards. And if you think about Know, each one of these destinations where we fly to has a tourism board that is very interested in working with an airline to bring more customers there. So we currently work with New York City conventions and tourism. We work with, meet Boston. That's their relevant tourism board. We work with New England, Discover New England.
07:23
Maja Gedosev
We work with Discover Puerto Rico. We are one of the biggest carriers in Puerto Rico. So we work with that.
07:28
Dom Hawes
I'd like to discover Puerto Rico.
07:29
Maja Gedosev
Puerto Rico is amazing. They're on the rise and there is a huge demand. And they're even this year they're hosting the IGLTA Diversity Equity Inclusion big conference there and it's going to be very interesting. Yes, I think there's a lot of sort of opportunity there to work with tourism boards.
07:50
Dom Hawes
Yeah, I get it.
07:51
Maja Gedosev
And share also in the cost of these campaigns because it's for the benefit.
07:55
Dom Hawes
Of both, but I get it because also you're not a mass market, so you're not flying to thousands of destinations. It's pinpoint stuff rather than blanket social media. You got a strong social media presence. And I understand your focus is on engagement and building a bit of brand loyalty. And you do that through very personalized interactions and customer service. So how do you do that when your people need to stay on brand and you need to give them the ability to respond quickly but kind of on message? How have you gone about setting up your social media teams?
08:30
Maja Gedosev
As JetBlue, we are a company that likes puns. And the way we sort of entered the UK market, we felt like, oh, wow, we better be careful here. Maybe we'll take it too far sometimes and people won't understand our character and our personality. But actually over time. People do understand that we're not as formal in that approach. We aim to get to resolve an issue. If there is an issue, we aim to resolve it for the success of the customer and the benefit of the customer. So that is sort of the key of our motivation. And when you do that, when you have that motivation, it's always from the heart. When it's from the heart, it's genuine. And that's felt always. So we bring that moment back to customers.
09:16
Dom Hawes
It's humanity, isn't it? You're bringing humanity back to Ezra through social media.
09:20
Maja Gedosev
Okay. I often get myself inbox notes from customers that are like, oh, we just had this experience. Can you help us? Can you do something? And honestly, I never leave that behind. I always pick it up myself because I really believe that even if you help one person, it will have a domino effect.
09:41
Dom Hawes
Yes, absolutely. And that is social, and that's what we love about it. But you're also into sponsorship?
09:46
Maja Gedosev
Yes. So we have quite strong sponsorship in the United States.
09:50
Dom Hawes
Not small names either.
09:52
Maja Gedosev
No, not small names, but we sponsor. I'll give an example, Red Sox. Very popular. People love it. We have a number of sponsorships that we have, especially in our focus cities like New York, Boston, Orlando. We try to show that we are a true partner in the community. We haven't yet embarked on sponsorships. Across the pond, we had a number of reputable brands reach out to us for kind of partnerships and sponsorships. We are not doing that just yet. But what we are doing, we're partnering up with communities. So we have two big projects here in the UK. We work with Fair, Share and Inspire, and we devote our first of all free time to support, but also financial resources. And we also, especially in the case of Inspire, we work with students across schools in Hackney Camden, Islington to actually bring to them the career opportunities that aviation offers.
10:55
Maja Gedosev
They spent work experience weeks with us. They come to the airport.
10:58
Dom Hawes
That's awesome.
10:59
Maja Gedosev
It's the best. These kids love it. They simply love it. Some of them never seen an airplane before, so they come to the airport. We ensure that they get air sight passes so you can cross on the other side where you go only when you fly, and then you just go straight to the airplane. They go into the cockpit, they see the pilot, they spend time with them there, and it's really the best.
11:20
Dom Hawes
Okay, I've got one more thing on promotion, which you may I don't know, you may not want to talk about. So far, this has been a great ad for JetBlue because the innovation is amazing, but it hasn't always been rosy. I know the Valentine's Day storm crisis comes to mind, but out of it came a communication framework that I think our listeners can learn from, that has served you ever since. I think so that if something doesn't go well transparency, empathy, responsiveness, 100%. Okay. Are you able to talk about the framework a little bit?
11:50
Maja Gedosev
Well, as someone that's on this side of the pond, our flights, transatlantic flights, have always been seen as very special, and our team has always protected them with lives, basically. So we have never had that kind of impact on our transatlantic customer. But you're 100% right. I was observing that from here and looking at how our leaders were dealing with the situation and our teams across the business, because this involves the entire back, let's say, support structure that we have. And I have to say the most important part here was to actually admit and say that's right, we take on it was a mistake and oversight. This we didn't do right. We didn't do it right. But we know and we're learning from this, and we're going to make this work and being extremely transparent about how we're going to make it work. Are we going to, for the benefit of our customers, reduce the number of flights?
12:45
Maja Gedosev
Yes, we will. To make operations work. We will adapt. We will make it happen. And sometimes it's not just our fault, but sometimes it's the air traffic control situation. And even in those situations, we will respond and we will say, this is what we can do. Even for this summer. Everybody's talking about the summer. How is the aviation going to survive this summer? We're all keen to know as well, by the way. But because it's something that it's out there and we don't know what it is going to look like, it's uncertain. We have to do the damage control ourselves in advance, and we have to make sure that we are prepared, that we can observe every single scenario and say, in case this, then that, in case this, then this. And we have reduced the number of flights for this summer. We have significantly cut the number of frequencies on certain routes, the number of flights, just to make sure that if something goes wrong, we are ready, we are there.
13:45
Maja Gedosev
We did our best.
13:45
Dom Hawes
Yeah. I mean, I know that there are several business schools that use that as a kind of case study in how to manage a crisis. So we're kind of back to the ad thing because you guys did manage it particularly well.
13:54
Maja Gedosev
It was a letter of commitment that went out.
13:57
Dom Hawes
Yes. But also I think you reflect modern culture particularly well. This is a time when certainly very few politicians tell the truth, camera or admit any no one admits anything wrong. People apologize for the inconvenience rather than for the fact. So I think the fact you guys fessed up and said, okay, it's on us, we can solve this, probably was like a masterstroke.
14:20
Maja Gedosev
It's human.
14:21
Dom Hawes
It's human. Being human.
14:22
Maja Gedosev
Yeah.
14:23
Dom Hawes
Bringing humanity back. Here we go.
14:24
Maja Gedosev
Humanity.
14:28
Dom Hawes
Now, when many people talk about marketing, they only really think about promotion and we have just been talking about that and it's been refreshingly short because obviously at least half of our discussion was about product and price. But even when it came to promotion, isn't it amazing the clarity with which the JetBlue team thinks like entering the new market? They know they haven't got the budgets to go head to head with their rivals and they're not even interested in it. So at the same time that everyone else is disintermediating the traditional travel industry, they're making friends with them and guess what? It got them into the market by doing something that everyone else thought didn't matter anymore. And that kind of ability to see something that's kind of, if you like, counterculture in business really makes this business stand out. And I also love the attention to detail that Maja talked about when it comes to dealing with the trade, getting them involved in the product, getting them involved in their families, involved in the product.
15:26
Dom Hawes
This is the kind of stuff that 25 years ago was the norm in the travel industry. One of my clients when I very first started out was involved in that kind of work. But it doesn't get done anymore because everyone assumes it's all about Direct and online. Well, do you know what? Sometimes a blue ocean isn't completely new. It's just the things that everyone else neglected. Let's now go on to talk about Place. I want to move on to Place as our final P and I think we've hinted at this already, but in the US, I think it's 90%, something like that of your bookings come through online here. You decided to go through the trade, as you said, absolutely loved that. Are you now taking bookings direct too or are you looking omnichannel multichannel? What does it look like for Transatlantic?
16:15
Maja Gedosev
Fantastic. So definitely multi channel. So we do sell through our Jetblue.com and we are having more and more customers that recognize the brand that have tried us and go back to the Jetblue.com where they will find always the best price out there. But we have also those customers that like to maybe go on a package travel or like to trust the travel trade more, have their travel agent sitting there waiting for them so they can walk into their office and book the flight. So we distribute through travel trade in the UK. In this market, the travel trade has become, especially after the Pandemic, the trusted channel where customers will go, they know they basically sit face to face with someone, they will help them and they know that if they have to cancel for whatever reason, that the travel agent will assist them in that whole thing.
17:06
Maja Gedosev
So we definitely invested a lot in our work with the travel trade and I can give you a few examples. We organized numerous visits to the airport, to our aircraft to experience the cabin, to see it. We organized a number of FAM trips. So we would take the groups of agents, key agents, key partners, to experience our product, go to New York back, spend a few days in destination, understand what we're all about. The same goes to Boston. And in particularly for Boston, for example, this is where also the tourism partners come into play because they help on the other side.
17:42
Dom Hawes
I was going to say, actually, that must be a great pull through effect. So someone goes to a travel agent, they know they need a holiday, they're.
17:48
Maja Gedosev
Not quite sure where exactly and what we needed to do. Also, we needed to remind a little bit. So it was easy to get everybody to go back to New York. New York has always been on top of everybody's mind. So Pandemic was over, corridor opened up, everybody was like, oh, if I'm going to the US, I'll go to New York first. So that's where everybody went. But what we needed to remind people of was Boston. Boston is just their amazing cultural offering. Food this, that and the other. And we had to educate about destination too, and not just Boston, but all the other destinations that we offer through those gateways into either US. Latin America or Caribbean that work took place. And in fact, we just have a trip leaving tomorrow, puerto Rico.
18:33
Dom Hawes
Oh, nice. So I've got till tomorrow to get a job in a travel agent.
18:37
Maja Gedosev
Get a job, get yourself on the list. So Puerto Rico is happening tomorrow, but we have big ones coming up to New York and to Boston, and we're going to do the same in other markets. We're now entering France and Netherlands. And by the way, these are markets that know even less of JetBlue than UK. So it's really interesting because to even look at that, because market, the language barrier and everything else, the same goes for the Dutch market. They've been focused on other carriers that fly, that are dominant in their market. So it's us coming in and trying to kind of say, look at.
19:13
Dom Hawes
Us because you love a fight.
19:14
Maja Gedosev
We love a fight.
19:17
Dom Hawes
It's a New York spirit, though, again, isn't it? Right, from Queens. Exactly. You don't build a city like New York or come from Queens unless you.
19:24
Maja Gedosev
Like a bit of a you've got to be bold. You got to be bold.
19:26
Dom Hawes
Speaking of bold, one of the other things I think is interesting because you're a non aligned carrier, you get to choose who you work with and who you partner with. I think you mentioned this very briefly earlier, but effectively they're competitors, I suppose. There may not be root competitors, but how do you choose who you partner with? Is it about ethos and culture?
19:45
Maja Gedosev
It will be. So I'll tell you, this non aligned status gives us the ability to actually be very flexible in the approach and we can talk a lot of carriers want to talk to us and we want to talk to a lot of carriers, especially now that we're entering these new markets. The way airlines grow their networks is either through their own ability to serve them or through the partners. So that gives us a bit more value, and we always look to give that value, pass it on to the customer. So, for example, we partner with numerous partners on this side of the Atlantic, like Aer Lingus. They're again part of another grouping. And people will think, how come? Well, it's because it makes sense.
20:30
Dom Hawes
You've got to get them to Boston.
20:30
Maja Gedosev
We have good.
20:33
Dom Hawes
Strong patrick's good strong leagues. Exactly. Yeah.
20:36
Maja Gedosev
The Irish community. But I mean, it's just great. We also have good partnership in terms of our leaders being partners with their leaders and so on. So it's basically aviation community is a family. We do compete and we know where we compete and why we compete, but we also look for ways that we can cooperate as well.
20:56
Dom Hawes
Brilliant, Maja. That's the end of our four P's. But before we go, I'd like to ask you to give a bit of advice to marketers that may be listening to this show about innovation, maybe value innovation, but innovation, particularly with today's conversation as a lens, what advice would you give to marketers who want to innovate and create value in their businesses? Like, where do you start?
21:17
Maja Gedosev
I'd start with people.
21:19
Dom Hawes
Okay.
21:19
Maja Gedosev
I think first everyone needs to recognize that we live in times where everybody is a marketer. Whichever industry is that walking billboard or that ambassador that will tell the story, it is more and more becoming about storytelling, and I think we all need to collect those stories to be able to tell them. On and I think it's about being more open minded to doing business in a different way.
21:47
Dom Hawes
Okay.
21:47
Maja Gedosev
You're just getting out of the usual frame and being able to recognize that an opportunity could be everywhere around us. It's important to have this vision as well. On how do you fit things into what you already have or where you would like to be in the future? So I don't know. For me, everything is an opportunity. For example, when I look and talk to people, I listen and I'm thinking, that could fit here. Well, I think we can talk about that and maybe from this perspective and slowly you find yourself in kind of entering different waters and having a whole other marketing structure that works for you.
22:30
Dom Hawes
Well, there you have it, folks. Wasn't that amazing? Over this two part episode, Maja's given us unprecedented insight into how JetBlue the company thinks and more importantly, their behaviours and actions that have built their business from the ground up. As I said right at the beginning, this was a story about value innovation, competing on value and differentiation at the same time. Now, that is not an easy thing to do, but Kim and Mauborgne's book, Blue Ocean Strategy, spells out a process that you, too, can follow. It gets a very strong recommend from me. Now, today I'm going to summarize some of the key takeouts from this episode, part one and part two by referencing the principles and tools outlined in their book. But I'm only going to be able to give you a soup san. Really, please go to the show notes. There'll be a few more notes there, but I would suggest you get a copy of the book yourself.
23:30
Dom Hawes
So let's just start our recap by explaining Blue Ocean Strategy and why I think it is probably important for you. Now, Chan Kim and Renee Mauborgne's book, Blue Ocean Strategy's subtitle says it all how to create uncontested market space and make the competition irrelevant. Doesn't that sound like something that you'd like to do? Now, in their parlance, a red ocean is probably where most of us live. Red oceans are markets where every piece of new business you win makes one of your competitors bleed, and the ocean literally runs red. Now, you'll be pleased to know that blue oceans don't involve blood of any kind. Blue Ocean's Strategy describes the pursuit of differentiation and low cost to open up new market spaces and create new demand. It's all about creating and capturing new customers and demand and breaking away from the competition. The author's theory is that just about any business can find a blue ocean, and that includes you, obviously.
24:30
Dom Hawes
Now, when I first heard about their work, I was transfixed because I grew up on Michael Porter, and I used to use his tools, things like Five Forces and Value Chain Analysis, to analyze markets and hone my strategy. But this theory flies in the face of his orthodoxy that you can have differentiation or price leadership, but not both. And that got me to thinking. How could we identify a blue ocean of our own? After all, agency land is super competitive, and whenever an account is won elsewhere, an agency bleeds. So that's what I've been doing, and I'd thoroughly recommend you do the same, too. You might never adopt a blue Ocean strategy, but thinking through the process will give you a different perspective on your market, your customers, and your competition. So where do you start? Well, the obvious place is to read the text.
25:19
Dom Hawes
It's a really enjoyable read. It's got really good, interesting case studies with businesses like Cirque du Soleil and Southwest Airlines. But right now, I'm just going to quickly outline some of the core principles, and I'm going to highlight some of the parts of the model that I found particularly useful. I'm going to put those links on the show notes at unicorny.co.uk Of course. Now, like all strategy, if you want to apply the principles and explore more, you're going to need to do some research. And while I'd love to suggest that Selby Labs could do that for you. Well, this kind of fieldwork is best done by you, at least to start with. You're looking for new insights about your market and you are best placed to do that. Okay, here goes. Important principles of Blue Ocean strategy using illustrations of how Maja and JetBlue have applied them.
26:05
Dom Hawes
Number one, obsess about value innovation. Now, if you didn't hear Maja's passion and obsession with both value and differentiation, you must have been multitasking. While this interview played out, you basically ignored the advice I gave you at the beginning of part one. Maja is one of, if not the most passionate guests I think we've ever hosted. But also, did you notice the level of detail she went into covering every area of the business during our conversation? You can only get that kind of detail and know that it's going to hit a home run with your customers if you really know them. And you can only do that if you've done your fieldwork. That's why, as much as I'd love to do it for you probably need to get into the weeds. Number two, don't be bound by market boundaries as they're seen today. When JetBlue launched, I doubt there was anyone saying, oh, if only we had another airline serving these routes, because the established routes, the established market boundaries, well, they were already established, and the incumbent carriers were slugging it out.
27:05
Dom Hawes
So JetBlue didn't look at what others were doing within the framework of the existing market, they looked at what they weren't doing. Where were the underserved cities? The competition for point to point capacity on those routes wasn't with the airline industry, it was with trains, buses and cars. So JetBlue created its own market boundaries by redefining the market. And it redefined them in an area where it knew it could win. Next up, and I think we're at .3 look beyond your current customers. Now, meeting unmet need isn't always about making new market boundaries. Sometimes it's looking at new customers within established markets. Now, JetBlue's bold move into transatlantic routes speaks volumes. Taking their inaugural dive into Heathrow during a time when the Pandemic had practically put a pause on all worldwide travel, well, that was daring, to say the least. But here's where they shone.
28:01
Dom Hawes
Instead of adhering to time honoured categorizations of economy, premium economy and business, JetBlue decided to shake things up. They introduced Mint, a fresh take on business class targeting those passengers who'd typically be eyeing premium economy instead. And this wasn't just about adding another seat class, it was about reimagining value. They didn't just stick to the playbook, they went above and beyond. And it's kind of reminiscent of the more of less of or start stop philosophy that is outlined in Chan and Mauborgne's teaching. Next up, start your strategy with customers, not the market. Now, this might get me shot by traditionalists, but I'm going to go ahead anyway. Like Value innovators sequence, the execution of. Their strategy differently than differentiators or price leaders. It's not unlike comparing the approach of a traditional architect with a visionary. Like the old school strategist drawing from Well-established playbooks builds strategies starting with the market.
29:03
Dom Hawes
Such strategies are rooted in rivalry, vying for the attention of an existing audience. They toe the line, sticking close to what other industry giants are doing, often focusing one upping their nearest rival. And then you have the blue ocean thinkers. They're not just about differentiating, they're about rewriting the whole rulebook. Instead of starting with a status quo, they start by seeing what others don't. And in Blue Ocean terms, that's called buyer utility. Analysing buyer utility is the method you use to look beyond a traditional customer base. It refers to the value a customer receives and perceives from your product or service, emphasizing it, how it meets their needs, expectations and enhances their experience. Now, you heard how JetBlue reimagined everything from their Airframes to their interiors, their menus to their Wi Fi, their supply partners to their seats. JetBlue understood where its customers saw utility.
30:02
Dom Hawes
That was their starting point. And by the way, that's your starting point, too. That's why the field work has to be started, at least started by you. And if you do choose to get someone else involved in field work, I would very strongly recommend you keep your hand in it through the whole way. Because bi utility is where it all starts. Now, I could devote at least another hour to this subject, but for today, I think that's probably enough. If you're still here. Thank you for listening. And of course, a huge thank you to Maja for an amazing and insightful journey into such an interesting business. I've taken enough of your time today, thank you. But for now, I am going to head back into the forest to find more insight for the Unicorny project. What?

Maja Gedosev
General Manager Europe
Maja Gedosev is the General Manager Europe for JetBlue Airways, responsible for sales, marketing, communications, government and regulatory affairs.
Based in the UK, Maja was instrumental in the successful launch of the JetBlue’s first ever transatlantic flights between New York and London Heathrow in August 2021 and New York and Gatwick Airport in September 2021.
In summer 2022, Maja supported further JetBlue growth across the Atlantic with daily flights launching between Boston and both London Gatwick and Heathrow airports. These were followed by additional daily flight between New York and London Gatwick in October 2022, taking JetBlue to a total of 5 daily flights across the Atlantic.
Maja has also now launched Paris to New York flights (June 2023) and Amsterdam to New York and Boston flights (August and September 2023 respectively).
Maja joined JetBlue from a U.K. regional carrier Flybe where she was Director of Communications, responsible for government affairs, consumer PR, sponsorships and brand building.
Prior to moving to the U.K, Maja was the General Manager Commercial and Corporate Affairs at Air Seychelles and before that Head of Corporate Affairs for Air Serbia, both airlines part of the Etihad aviation Group. Her aviation career started as a ground handling agent for Lufthansa. Outside the industry she has also worked in a range of pharmaceutical and financial consulting roles.
Maja is very active in diversity efforts and is a member of the Women in Aviation Charter initiative, frequently speaking to young girls about pursuing …
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