AIRTRAN AIRWAYS
AirTran partnered with Coca-Cola and Wendy’s on a promotion that awarded frequent-flyer credits in exchange for the purchase of Coke products at more than 3,000 Wendy’s restaurants in the U.S. The promotion was wildly popular with consumers. When it came time to account for the promotion, AirTran was at a loss of how to value the marketing benefits it received from the program versus the frequent flyer credits it supplied to be given away. Air Tran turned to IEG’s Valuation group to determine the fair market value of the promotion.
We assessed the partnership’s tangible benefits, such as inclusion in the campaign’s media buy and identification on Wendy’s in-store collateral (like cups, bags, tray liners and menu boards). IEG also valued intangible assets, including the association with two blue-chip brands and category exclusivity that kept AirTran’s competitors from having any relationship with the quick-service restaurant chain during the promotional period. Click here to read more…
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