The Effect of the COVID-19 Pandemic on the Marketing of Saudi Airlines

Abstract

COVID-19 has exacerbated the penetration of in-house agencies as firms adopt cost-cutting measures and explore new growth opportunities. Besides financial gains, this rising trend aims to tap into an internal talent to improve the overall strategic health of the firm. The objectives of this study were to investigate pandemic-related trends in internal marketing and outsourcing, cost and output of moving operations in-house, related benefits and challenges, and new developments in the conduct of executive meetings at Saudi Airlines since 2020. A descriptive case study method that comprised a web-based survey questionnaire and interviews was used to obtain views from 15 staff of the airline (executives and employees).

The results reveal several rising trends in in-house operations, including an increase in internal marketing projects since 2020 due to cost-efficiency and speed, outsourcing of functions lacking internal capabilities, and centralized teams. Costs of Saudi Airlines’ in-house agency relate to staffing, training, and equipment, while its outputs include logos, brochures, and videos. From the results, the main benefits of internal operations are cost savings, enhanced integration, and accessibility. Physical meetings declined at the agency, with executives increasingly meeting virtually since 2020 despite technical challenges affecting the efficacy of online consultations. A data management strategy to enhance information ownership and analytics, a blended working relationship between internal teams and external agencies and periodic performance evaluations are recommended to help the airline benefit from in-house marketing.

Topic or Issues for Investigation

The SARS-CoV-2 (COVID-19) pandemic has impacted not only lives and livelihoods globally but also customer experiences and business models. It was the worst global recession since World War II, with the world economy contracting by 3.5% in 2020 (International Monetary Fund, 2021). Available economic data illustrate that the severe restrictions introduced to contain the virus caused massive shocks in most economic sectors. In Saudi Arabia, the GDP shrunk by between 4.8 to 9.8% from the baseline despite targeted fiscal countermeasures (Havrlant et al., 2020). Businesses were hurt by strict responses, such as border closures, domestic movement restrictions, and supply chain disruptions.

For companies, resilience during these turbulent times demands building capabilities suited to different contexts. Brand marketers have to decide whether to invest in in-house teams or external agencies, considering a consumer shift to e-commerce and pandemic-related cutbacks. The World Federation of Advertisers [WFA] (2020) report found that 57% of brands have in-house advertising agencies that help generate digital content and implement creative media. Marketers have increasingly adopted in-house teams over ad agencies in pandemic times for obvious reasons, including cost savings, better integration, and brand familiarity.

Brands have to be more agile to overcome the pandemic challenges and exploit new opportunities. New business models have been adopted that may outlive the immediate crisis. A notable global trend is a significant shift to e-commerce as consumers embrace online shopping. Saudi Arabia has one of the highest online populations globally, with online shoppers projected to reach 19.3 million by 2022 (Statista, 2020). The country has moved to being almost completely digital, providing opportunities for internal marketing operations to cut costs and gain more flexibility and agility that are necessary to survive the pandemic effects. Globally, 74% of in-house agencies have been created since 2015, with companies such as Nestlé joining this trend in 2020 (WFA, 2020). The airline industry is headed towards turbulent times and will most likely try to save costs by adopting in-house marketing rather than contracting external advertising agencies.

This paper will investigate the effect of the COVID-19 pandemic on the acceleration of a shift towards corporate digital marketing and communication in Saudi Arabia, focusing on the Saudi Airlines Catering Company. Consumer research brands on different online media channels and marketers target these touch points to promote their products. At this level, corporate digital marketing is the delivery of ads or relevant content to customers through platforms such as brand websites, social media, email, and Internet-based applications (Kingsnorth, 2019). The specific issues to be addressed and justifications are discussed below.

In-house Operations versus Ad Agencies in COVID-19 Period

One aspect of corporate digital marketing and communication in Saudi Arabia that will be examined through this study is the extent to which Saudi enterprises have embraced a digital strategy in marketing and communication to survive the pandemic. While statistics suggest a decline in the use of ad agencies, some corporations still outsource some branding operations or rely on their input. The WFA (2020) report shows that 40% of companies with in-house operations, including Vodafone, source ideas for new branding projects externally. This blended or hybrid model suggests that in-house marketing has not completely replaced agencies. New forms of relationships and dynamics have emerged related to roles in planning, execution, ownership of commercials, and insourcing and automation of work (Deloitte, 2021a). Thus, it will be interesting to compare the type and amount of marketing services reserved for in-house talent against those outsourced before and during the pandemic to understand how COVID-19 has exacerbated this trend.

Impact of In-House Marketing and Communication

COVID-19-related effects have no doubt accelerated the shift to in-house marketing. Agile teams have been established and many advertising projects moved in-house. One effect of this trend is creating a highly creative but possibly narrowly focused marketing team that may not be ideal for future growth (Vincent & Hlongwa, 2021). An agency has cutting-edge knowledge and expertise that may be lacking in in-house departments. For this reason, in-house marketing and communications that do not involve external resources at critical points in the branding process are likely to suffer. On the other hand, corporations that have adopted in-house marketing report savings of six to 20% in marketing costs (WFA, 2020). Thus, an in-house agency may positively impact the organizational cost structure. However, it may also affect workflow and productivity when assembling the team, which may force some companies to abandon the approach. In this regard, it will be critical to study how in-house marketing and communication have impacted Saudi Airlines Catering Company.

Advantages and Disadvantages

In-house marketing is definitely a useful alternative to advertising agencies, especially since the pandemic demands austerity measures for companies to survive. Focusing inward will also help build the resiliency and internal capabilities needed to realize growth targets. Thus, in-house marketing comes with some key benefits for organizations. The WFA (2020) report that surveyed 53 marketers in major corporations revealed “cost efficiencies, better integration, and brand knowledge” as the main advantages of in-house agency (p. 7). Thus, the approach is a cost-cutting strategy for business survival through the pandemic.

In addition, highly efficient in-house teams are more skilled and aligned with the brand strategy than advertising agencies are. However, such operations may be narrowly focused and thus cannot respond to market changes swiftly. Additionally, advertising agencies deal with a variety of clients, are exposed to diverse marketing strategies, and constantly up-skill, which make them well-positioned to handle branding challenges (Sinclair, 2020). These advantages may not always apply to in-house teams or departments. Thus, it would be useful to investigate the benefits and challenges to the in-house agency side for Saudi Airlines Catering Company in the pre-COVID-19 versus pandemic period.

Physical versus Virtual Meetings

COVID-19 has disrupted the traditional workplace, especially its physical aspect, accelerating the transition to remote working. Virtual work has become a new normal, helping overcome geographical disadvantages and enhancing flexibility because in pre-pandemic meetings, attendees had to appear in person (Alexander et al., 2020). Now, with videoconferencing applications, people can engage in discussions virtually. However, organizations have deployed communication and ecommerce technologies to a variable extent, limiting their ability to exploit the new opportunities and ensure meaningful interactions (Deloitte, 2021b). It would be important to investigate the trends in physical versus virtual meetings to understand how Saudi Airlines Catering Company has leveraged communication technologies to enable staff to be heard during the pandemic.

Top-down Communication of Executive Decisions

Multimedia materials, including animated video reports, represent an innovative and engaging way of sharing ideas. In an organizational context, executive decisions that do not require a response from lower-level employees use a top-down communication approach. It ensures that recipients understand or interpret the information in order to take the expected action. Thus, it is useful for communicating corporate and business-level strategies adopted during the COVID-19 pandemic. Executive decisions can be simulated in animated videos to help elicit specific emotions in employees, ensure they understand the context for the resolutions, avoid misinterpretations, and understand the ideas in a memorable way (Dyer et al., 2020). Therefore, this study will assess the impact of executive decisions translated into animated videos on the effectiveness of downward communication in Saudi Airlines Catering Company.

C-level Executive Meetings

The COVID-19 era has seen organizations embrace a hybrid model of work. This working arrangement means that employees can work part-time in a physical office before transitioning to a virtual setup. Considerations for desirable outcomes (productivity and access to talent) and costs are critical in choosing an optimal hybrid model, as board members may be required to travel or perform their C-suite responsibilities virtually (Alexander et al., 2020). The post-pandemic outcome is unclear: which proportion of the board should be in the office and why? Comparing the characteristics of C-level meetings that require members to travel and digital conferencing will help answer this question.

Adaptations to Corporate Marketing and Communications

The post-COVID-19 period may require a redesign of the marketing and communications strategy to capture emerging consumer experiences. Online shoppers globally are projected to increase, reaching 19.3 million in Saudi Arabia by the year 2022 (Statista, 2020). Thus, consumer behavior and experiences have shifted due to the crisis. Marketing professionals will need to create a caring brand for customers, employees, and the community. Opening informal channels or digital options for connecting with people can help reach new audiences with adequate cybersecurity measures (McKinsey & Company, 2020). Thus, it would be interesting to study the adaptations made to corporate marketing and communications that are likely to continue to the post-COVID-19 period.

Internet Infrastructure

The shift to e-commerce by both customers and businesses due to the pandemic has been unprecedented. For Saudi Arabia, the number of online shoppers is projected to grow even after the COVID-19 crisis ends. Among the key drivers of this trend is that online shops and sites are key to business continuity during disruptions. It is likely that customers currently using digital services will continue doing so in the post-COVID-19 period, which means that the post-pandemic recovery will be digital (McKinsey & Company, 2020). Thus, firms delivering superior experiences online will gain market share due to increased adoption. For this reason, it would be critical to assess the capability of the internet infrastructure in Saudi Arabia to support the digital transformation after the crisis.

Aims/Objectives

Based on the issues identified for investigation, the study objectives include:

• Investigate the pandemic-related marketing trends of in-house and outsourced marketing services used by the Saudi Airlines Catering Company pre- and post-COVID-19.
• Examine the cost and output of moving marketing and communication in-house at the Saudi Airlines Catering Company.
• Evaluate the benefits and challenges of moving corporate marketing and communications in-house versus outsourcing in pre-COVID-19 period and during the crisis at the Saudi Airlines Catering Company.
• Investigate the trends in physical meetings and communications versus virtual C-level executive meetings and communications at Saudi Airlines Catering Company in the post-COVID-19 period.

Key Information and Facts to Be Gathered

Information and data will be collected through a case study of the Saudi Airlines Catering Company. The research will also employ key strategic analysis models, including competitor analysis and SWOT. Primary data will be obtained through surveys targeting directors and executive position holders at Saudi Airlines. Company publications and independent reports will provide secondary data for the study.

Literature review

Introduction

This chapter examines the airline industry globally and in Saudi Arabia before and during COVID-19 to understand the pandemic effects on this sector. The critical analysis of various sources and independent reports will shed light on the potential disparity in resilience and recovery and the marketing solutions adopted to survive the pandemic, including in-house departments. First, it would be crucial to introduce the status of the aviation industry and its contributions to the global economy before COVID-19 struck based on published statistics and agency reports. Then, the impact of the pandemic on flight operations globally and in the Saudi context will be evaluated through a review of primary and secondary sources.

Airline Industry before COVID-19

The COVID-19 pandemic has had serious impacts on livelihoods, public health, and economies globally since 2019 when it was first reported. It has disrupted all economic sectors and businesses due to strict containment measures implemented, including travel restrictions and lockdowns (Fan et al., 2021). Among the industries most affected by the pandemic is air transportation as flights were suspended to curb the spread of the virus. This sector is critical to the economy, contributing 3.6% to the global GDP and employing 65.6 million people in related sub-sectors and supply chains worldwide in 2019 (International Civil Aviation Organization [ICAO], 2021). Aviation supports directly diverse jobs, including aircrew, airport-based roles, check-in and maintenance staff, engineers, and navigation system controllers. The industry also provides indirect employment to staff working in oil companies and airline manufacturing (Mehta, 2020). A huge chunk of the 65.6 million jobs (about 36.7 million) is in the tourism sector (ICAO, 2021). The aviation staff and passengers also induce the development of on-site enterprises by purchasing local goods and services. Growth in retail and restaurant services near airports can be attributed to their high purchasing power.

In Saudi Arabia, the air transport sector was thriving before the pandemic struck. The International Air Transport Association [IATA] (2020) report shows that the industry supported 594,000 direct and indirect jobs and contributed 5.6% to the Saudi GDP in 2018, mainly through foreign tourists arriving in the country. The contribution of air transport to trade by enabling the flow of goods (imports and exports) and labor was also significant. The majority of tourist arrivals into Saudi were from Pakistan, Kuwait, and Egypt, while the main air cargo routes for Saudi airlines were the United Arab Emirates and India (IATA, 2020). Thus, air transport contributed to the Saudi economy through enhanced connectivity to key cities and destinations worldwide.

The aviation industry has evolved through the years to meet a growing demand for greater connectivity. Generally, the expansion in international trade due to globalization coupled with favorable policies and regulations increased the need for international air travel services (ICAO, 2021). As a result, passenger traffic grew steadily between 1945 and 2020 despite shocks related to oil crises, wars, terrorist attacks, and the 2007/08 financial crisis. According to Tuite et al. (2020), about 3.5 billion trips are made via commercial air transport annually, with 40% of them being foreign travels. From the statistics, the aviation industry is critical in ferrying passengers and freight across borders and thus significant to the domestic and global economies.

Promoting tourism and logistics are the basis for launching regional or state airlines. National carriers are considered important tools for promoting a country’s image internationally and spurring economic development (Tuite et al., 2020). Saudi’s current national airline, Saudia, has contributed to the country’s competitiveness as a tourist destination and logistics hub. Launched as part of a program to diversify the oil-based economy and compete with regional rivals such as Etihad Airways, the Jeddah-based carrier ferried most of the 16.5 million tourists visiting Saudi in 2019, a 7.6% increase from 2018 (IATA, 2020). Other players operating in the budget segment include Flyadeal and Flynas. Thus, air transport has a critical role in tourism, cargo shipment, and international trade that accelerate economic growth. However, the increased connectivity achieved through air transport increases the risk of the rapid spread of pandemics such as COVID-19.

Impact of COVID-19 on the Global Airline Industry

The immediate effect of pandemic-related lockdowns and travel restrictions was a decline in air traffic as countries closed their airspaces to foreign flights. This impact varied between regions and countries since not all carriers could comply with in-flight strict requirements to curb transmissions. Between January 2019 and December 2020, air traffic declined sharply, with the Middle East being the worst affected (a 53.4% decrease) followed by Africa (-53.6%), Europe (-52.6), and South America (-48.4%) (ICAO, 2021). The number of flights also dropped sharply during this period. The Asia-Pacific region recorded the highest decrease of 4.9 million flights from the 2019 levels followed by Europe (-4.8 million) and North America (-3.2 million) (IATA, 2020). The import of this trend is a reduction in airline operating revenues and profitability. In 2021, the estimated COVID-19 impact on air traffic entails a 35-38% drop in seats offered by carriers and a 44-47% decline in passengers, translating to $289 billion in lost revenue (ICAO, 2021). Thus, reduced flight operations, passenger number, and seat capacity will affect the financial performance of airlines.

The number of domestic and international travelers has been low since the pandemic began. The worst affected region has been Asia-Pacific, where 920 million fewer passengers traveled in 2020 compared to the 2019 levels, leading to a $120 billion loss in revenue (IATA, 2020). Some low-traffic regions remained relatively resilient, reporting relatively lower losses during this period. For example, the passenger traffic in the Middle East dropped by about 130 million, leading to $22 billion losses (IATA, 2020). These statistics illustrate the widespread impact of the pandemic on air transport, with spillover effects on tourism and international trade.

Comparing the pandemic effects on international and domestic flights in each region will further indicate the deteriorating financial performance and recovery of airlines. The number of people traveling between different destinations declined sharply between 2019 and 2020. The most affected region was Europe, where passenger traffic reduced from 856 million in 2019 to 370 million in 2020 compared to Africa (74 to 39 million) (ICAO, 2021). The contribution of each region to the global air traffic can help explain this disparity. Europe and Asia-Pacific accounted for 70% of travelers globally in 2020; hence, they experienced a disproportionate effect from the pandemic (ICAO, 2021). Domestic passengers also reduced during the pandemic in specific routes. The lowest number of travelers reported in 2020 was in Africa and the Middle East (15 million each) while the highest was in China (398 million). This difference can be attributed to a variation in government financial support to airlines operating in the domestic airspaces.

Saudi Airline Industry

Airline transport is central to Saudi’s economic diversification and growth plans. In the Gulf Cooperation Council region, the United Arab Emirates has transformed its economy through aviation, which contributes 27% to the GDP (Castro, 2018). The industry is also prioritized as a catalyst for economic development in Saudi. New airports and infrastructure have been developed to support this strategy, bring more visitors into the Kingdom, and expand related businesses.

Airport Infrastructure

Expansion of airport facilities is considered key to improving air connectivity, tourism, and the inflow of foreign investments into Saudi Arabia. Presently, the country has 27 airports, comprising six international hubs (Castro, 2018). The government has plans to expand current airports and build new ones. Among those earmarked for upgrades include airports in Arar and Jizan, while new hubs will be constructed in Al-Qunfudah and Riyadh (IATA, 2020). The goal is to position the Kingdom for growth in inbound and outbound travelers and cargo volumes.

The management of airports has been streamlined to enhance the efficiency and performance of the sector. Saudi Civil Aviation Holding Company (SAVC), a state corporation, manages all Saudi airports and hubs in the holy cities of Riyadh, Jeddah, and Medina (IATA, 2020). The agency also controls the development of industrial spaces near each airport to provide related services. Thus, the infrastructural development is geared towards promoting the tourism industry, including the Hajj pilgrimage subsector.

Airlines in Saudi Arabia

Saudi’s aviation industry includes only a few players, with most of them operating in the low-cost segment. Saudia is the Kingdom’s national carrier that operates about 200 aircrafts in 88 routes in different regions (Castro, 2018). The corporation ranks third in passenger volume in the GCC region and has actively implemented a fleet expansion strategy involving purchase agreements with financial institutions. Most recently, Saudia added 73 Boeing and Airbus aircrafts into its fleet due to financing solutions offered by six Saudi banks, including Bank AlJazira (Saudia Airlines, 2020). Thus, the passenger and cargo capacity of the airline is expected to increase to meet future aviation demands.

The other players in Saudi have a far lower fleet size and routes. Flynas, a low-cost operator, operates 31 aircrafts and flies to 22 destinations within the GCC, but it is scheduled to acquire 80 new Airbus airplanes before 2026 (IATA, 2020). The Saudi aviation industry also includes recent entrants such as SaudiGulf, Nesma, and Flyadeal. These airlines operate domestic flights but have plans to expand to routes within the GCC. A new business model increasingly being adopted by operators is the leasing of aircrafts to expand their fleet size (IATA, 2020). The lease arrangements help meet the demands of inbound and outbound pilgrims in Saudi.

Impact of COVID-19 on the Saudi Airline Industry

Saudi Arabia was highly affected by the pandemic, but its strong fiscal position ensured a resilient economy during this crisis. A recent report by the Oxford Business Group (2021) notes that the Kingdom had firm economic fundamentals in the 2017-2019 period due to its robust foreign exchange reserves, which have been used to improve liquidity during the pandemic. However, according to the same report, like in other economies, Saudi’s airline industry has been hurt by travel restrictions and reduced passenger capacity. In particular, border closures led to a huge proportion of airline fleets remaining grounded and airports and reporting losses (Oxford Business Group, 2021). The spillover effects to support businesses and tourism were significant.

The severe impact of COVID-19 in the Saudi aviation industry is seen in revenue drops and job cuts in 2020. IATA (2020) estimates that earnings by carriers in Saudi declined by over $7 billion in 2020 – 34.9% less than 2019 revenues. The crisis spilled over to support businesses and tourism sectors. IATA (2020) further estimates that the Saudi economy shed 287,000 jobs and lost $18 billion of its GDP due to the pandemic effects on air transport-related tourism. The airlines’ passenger capacity dropped because of border closures and social distancing requirements. According to ICAO (2021), Saudi’s international traffic fell by 31% (1,747,385 passengers) between 2019 and 2020. Even steeper declines were experienced in travel and tourism sectors due to cancelations of pilgrimage that drive airline passenger capacity.

Marketing Trends in Pre- and Post-COVID-19 Periods

The pandemic has accelerated the adoption of disruptive technologies by medium-to-large companies in a bid to enhance efficiency and reduce costs. An emerging trend is moving marketing operations in-house teams comprised of staff dedicated fully to the company’s brands and goals. One advantage of this strategy is that it enhances cohesion, creativity, and operation focus on a brand, which may not be possible in external agencies working with multiple brands (WFA, 2020). It also supports greater cross-functionality between projects and corporate vision.

Research indicates that in-house creating agencies have increased exponentially during the pandemic period. According to WFA (2020), 75% of in-house departments were established within the past five years, and they handled 82% of marketing projects (primarily digital content) in 2020. Thus, COVID-19 has not caused cutbacks in an in-house agency but has enhanced its adoption. Among the primary drivers of internal marketing is “cost efficiencies, better integration, and increased brand knowledge and specialization” (WFA, 2020, para. 18). The strategy also enhances agility, collaboration, and responsiveness to market needs as in-house marketers can work with other teams. However, internal staff can be occupied by their routine tasks, reducing their capacity to explore external ideas and perspectives (Sinclair, 2020). Thus, in-house units may lack certain expertise available in outsourced teams.

An outsourced agency was a dominant strategy companies used to support their marketing operations in the pre-COVID-19 period. The team comprises of experts with exposure to diverse clients and ideas (Sinclair, 2020). Further, compared to full-time in-house teams that are used to working on-site, external agencies are experienced in remote working operations necessitated by the pandemic (WFA, 2020). However, an outside agency is generally more costly than in-house teams, which may explain the increasing shift to internal marketing units to cut costs. A third trend is using an outsourced, agency-staffed team or the hybrid model. In this case, rather than establishing a dedicated in-house department, marketing operations are assigned to an outside agency or freelancers (WFA, 2020). The team will complete the project within the company, which results in optimal use of resources and lower costs.

Cost and Output of In-house Marketing and Communications

A comparison of the cost versus output of in-house marketing illustrates its contribution to the organization. The outcomes indicate enterprise marketing capability, performance, and investment and help determine the strategy that can deliver the best results for the company (in-house or agency). According to Kingsnorth (2019), establishing a marketing team or department may be more costly than contracting an agency. The extra costs relate to salaries paid to full-time staff, infrastructure, training budget, and the time lag between investment and output. In contrast, agency contracts can be negotiated and allow access to the expertise and tools (Sinclair, 2020). Although outside agencies have the marketing capability, technology, and channels to deliver and help avoid the painful process of creating internal teams, the ultimate cost may be higher.

Agencies may be slow to adapt to a strategic adjustment of a company, as they have different priorities from those of the client. As a result, external agencies may not be ideal for surviving the pandemic crisis that demands budget cuts and reduced spending (Deloitte, 2021a). Limited control over projects may impact the quality of digital content. Additionally, monitoring “the cost per channel, leads, and acquisitions”, which are key indicators of marketing performance, may be limited under the agency strategy (Kingsnorth, 2019, p. 87). On the other hand, in-house teams can track these metrics to determine the overall impact or output of marketing investment.

A comparison of the cost of agency versus in-house departments is useful when selecting a cost-effective strategy for the company’s marketing needs. Kingsnorth (2019) suggests an agency cost formula that entails a summation of the recruiting budget, time used, professional charges, media commissions, marketing technology, and project management. On the other hand, in-house costs come from the amount spent recruiting teams, office and equipment, full-time remunerations, and training (Sinclair, 2020). Comparing the cost and marketing outcomes of each strategy will inform the critical decision to use either agency or in-house teams.

Benefits and Challenges of In-house Marketing versus Outsourcing

Internal departments and outside agencies provide solutions for accessing the market and promoting brands. However, each strategy has some pros and cons that must be considered before deciding on the optimal alternative for the company based on its business model and budget. In-house marketing differs from outsourcing in many ways, including accessibility, adaptability, reliability, connectivity, and flexibility (Kingsnorth, 2019). Reaching the market is rather slow with internal teams because of the time needed to recruit and train staff. In contrast, outsourcing ensures faster access to the target market since the agency already has the expertise, channels, and tools needed (Sinclair, 2020). Thus, an external agency is an ideal short-term marketing strategy, especially for companies with reduced budgets due to the pandemic effects.

Adaptability relates to the capacity to reorganize task priorities and reallocate budget to respond to market changes. It is one of the benefits of in-house marketing; teams are agile, have greater control over projects, and can implement strategic adjustment promptly (Deloitte, 2021a). In comparison, agencies can be sluggish in adopting new changes since they deal with multiple clients and thus have different priorities. Further, compared to an outside agency, in-house departments are dependable in managing teams and tracking quality throughout the project’s lifecycle (Sinclair, 2020). Limited communication and coordination is another challenge with outsourcing marketing services. The agency works with multiple clients and must reach them to access key data for projects. Communication barriers may hamper such efforts, affecting quality and output. In contrast, an in-house team has access to data, is well-aligned with company strategy, and communicates effectively with departments within the company.

Greater flexibility in in-house departments compared to an external agency is another benefit of this strategy. The internal marketing team can adjust its capabilities to accommodate urgent projects and can increase or decrease its operations depending on the organization’s needs and budget (Kingsnorth, 2019). On the other hand, agencies handle multiple clients; thus, urgent projects may not be completed on time without additional resource reallocation. However, working with several companies means that agencies have the expertise, diverse talent, well-developed marketing channels, and tools to deliver better results. Experienced marketers knowledgeable about all areas of digital marketing are rare in companies (Sinclair, 2020). However, in-house teams are well aligned with the brand – they are more dedicated to the product than agencies that operate within their own business objectives and profit goals.

Trends in Executive Meetings

The pandemic has disrupted the corporate world, with governments issuing guidance on public gatherings to minimize physical contact. The directives imply that companies cannot conduct C-level meetings as they used to do before COVID-19. Consequently, there has been an unprecedented rise in virtual meetings globally during the pandemic (Alexander et al., 2020). This trend is powered by technology where renewed standards have been developed to replicate the in-person experience in a virtual form.

Emerging corporate governance practices that are likely to persist beyond COVID-19 include e-voting functionalities (attendee verification and shareholder right to ask questions), secure processing of identifying information and applying Blockchain technologies to protect data and transactions (Deloitte, 2021b). The degree of engagement and attendance is enhanced when a hybrid model is used. According to Alexander et al. (2020), facilitating physical meetings for a few identified executives or shareholders, while allowing others to participate virtually through videoconferencing platforms is a better option for the company in the pandemic times. However, this practice may be a challenge for enterprises in countries that had no regulations guiding virtual meetings. Regulators in France, Germany, and Japan have only recently instituted temporary policies allowing e-meetings (Deloitte, 2021b). The continuation of these regulations beyond the COVID-19 pandemic is likely, as companies implement cost cuts by reducing budgets for travel and hosting physical C-level executive meetings.

The rapid shift to virtual meetings has come with new challenges. The transition usually occurs gradually over several years, beginning with hybrid models before conducting e-meetings (Alexander et al., 2020). However, the COVID-19 pandemic has pushed companies to adopt virtual meetings rapidly. Consequently, the type of e-meetings is not consistent across organizations. Voice-only and live meetings are most common but some companies use pre-recorded sessions for employees (Deloitte, 2021b). Technology challenges such as unstable connection and interruptions affect the quality of the interaction, while cyber-security threats can impact the integrity of information. Non-technical issues, such as interrupting a speaker and silence during open deliberations are addressed by conveying the rules of engagement before a virtual meeting begins and using the ‘hand raise’ feature (Deloitte, 2021b). Other important considerations when conducting C-level e-meetings include providing guidelines on how attendees can vote and ask questions and secure authentication of participants to ensure the quorum is met. These trends are bound to evolve, as more companies adopt videoconferencing for multi-site meetings in compliance with government directives.

Methodology

Introduction

This chapter describes the methods and procedures that will be used to investigate the impact of video marketing and communications on the Saudi Airlines Catering Company and compare outsourcing versus in-house decisions during and after COVID-19. It opens with a discussion of the research design used to study the problem. Subsequently, the population and sampling procedures and the instrument developed for gathering data are described. The data collection and analysis approaches are also explained in this section. The chapter concludes with a consideration of ethical issues pertinent to the study and the limitations of the research method.

Research Design

A research study employs systematic procedures to investigate an identified problem. A research design entails a set of methods for data collection and analysis to achieve valid conclusions for research questions (Edmonds & Kennedy, 2019). A descriptive case study will be used to examine trends, cost and output, and benefits and challenges of outsourcing versus in-house marketing and communications operations during and after COVID-19. A non-experimental descriptive study is useful for discerning relationships between variables that cannot be manipulated (Edmonds & Kennedy, 2019). Another rationale for using this design is that factors describing trends or characteristics in in-house marketing and communication can be described as they occur naturalistically. A case study will also support the in-depth investigation of the organization to provide a deeper perspective of in-house versus outsourced marketing and communications.

Researchers can use a qualitative, quantitative, or mixed-methods approach to study a phenomenon. Qualitative methods are appropriate for exploring ideas or complex problems that require in-depth understanding (Edmonds & Kennedy, 2019). In this case, open-ended questions are needed to gather data that are then coded and grouped into themes to infer key conclusions or drivers of a problem. Quantitative methods involve objective analysis of numerical data to evaluate relationships and generalize findings to related contexts (Edmonds & Kennedy, 2019). Thus, statistical analysis is needed to evaluate quantitative aspects of the phenomenon – cost and output of in-house versus outsourced marketing and communications operations.

Since the purpose of this study is to investigate pandemic-related marketing and communication trends, cost and output of in-house operations, and the benefits and challenges of in-sourcing versus outsourcing, a qualitative approach is deemed appropriate. This research method involves the triangulation of different types of qualitative data to support findings (Edmonds & Kennedy, 2019). Thus, the approach will help gain a deeper understanding of the variables through the evaluation of qualitative data. The collection of primary data will involve three methods: questionnaire and interviews, while secondary data will be gathered from archival records, as explained in a subsequent section.

Population and Sampling

This descriptive case study’s target population is the employees of the Saudi Airlines Company. A population is a set of objects or subjects to which the researcher intends to generalize the findings (Edmonds & Kennedy, 2019). It is a well-defined group with a comparable characteristic of interest. Given the case study approach, the target population is the employees of Saudi Airlines, including the directors and executive position holders. Primary data on the challenges and benefits of in-house versus outsourced marketing operations, cost and outputs, and trends in executive meetings will be obtained from these individuals who have executed successful internal communication operations.

Sampling helps obtain a representative subset of the study population. This research will use a purposive sampling design to select subjects that will provide data for investigating the topic. Based on information on Saudi Airlines’ website, the company has 40 management staff. This group is the sample frame or the database of all individuals who meet the criteria of being managers or directors at the company. Purposive sampling is a non-probability strategy for selecting specific participants based on their accessibility and willingness to offer insights into the subject (Edmonds & Kennedy, 2019). It entails an extensive study of the people with context-specific knowledge of the issue being investigated. Since not all directors and managers at Saudi Airlines are knowledgeable about in-house marketing and communications versus outsourcing choices, purposive sampling is deemed appropriate for identifying key informants for the study. Their views and perspectives as the primary actors within Saudi Airlines involved in sourcing decisions are important for this exploratory research.

Sample Size

A sample size adequate to obtain data saturation will be used in this study. According to Edmonds and Kennedy (2019), the appropriate number of participants varies between empirical investigations depending on the statistical power of the test chosen. For qualitative studies, the sample size is subject to the purpose and may not be predetermined when using purposive sampling. For case studies that focus on specific practice or organization, a small number of respondents may be justified (Edmonds & Kennedy, 2019). Since the present study targets Saudi Airlines’ 40 executives and directors, a purposive sample size of 15 is deemed appropriate. The aim is to identify a small number of people that the researcher can access.

Data Collection Procedures

The study will use qualitative data to answer the research questions. The case study approach will allow different methods of data collection to be employed, which will enhance the credibility of the research (Edmonds & Kennedy, 2019). Three types of evidence will be used in this study: surveys, interviews, and archives. Primary data will be collected through a questionnaire survey of a purposive sample of Saudi Airlines’ executives and directors. Secondary data will be obtained through a review of archived documents, including annual reports and the marketing department budget. Audio-recorded interviews involving key informants (targeting Saudi Airlines’ chief communications officer and marketing director).

The purposive sample will include executives and directors of Saudi Airlines willing to participate and be directly involved in marketing and communications in-sourcing and outsourcing decisions. All participants meeting these inclusion criteria will receive email messages requesting their participation and disclosing the purpose of the study. Pre-notice letters are associated with a high response rate to web-based surveys (Edmonds & Kennedy, 2019). After a week, an invitation letter will be sent electronically to participants indicating their willingness to participate in data collection. It will inform potential respondents of the study’s purpose, research questions, potential participation risks, right to withdraw from the project, and privacy assurances.

Upon consenting to participate, they will access a web-based survey questionnaire with open-ended and closed questions through a link included in the email. This mode of administration is considered appropriate in the COVID-19 circumstances that require minimal physical contact. The respondents will submit completed questionnaires electronically to the researcher for analysis. Those who will not have responded after two weeks will receive a follow-up email prompting them to respond and reassuring them of confidentiality.

An additional method for primary data collection is interviewing key informants in the organization. According to Edmonds and Kennedy (2019), interviews can yield adequate data for a broad interpretation of the research problem and are suitable where direct or participant observation is not possible. Interviews with the airline’s communications manager and the marketing director based on a predefined protocol will help understand the trends, benefits, and challenges of in-house operations compared to outsourcing. A pre-test or mock interview with an experienced marketing professional will be conducted to test the appropriateness of the questions. As part of participant protection measures, permission will be sought before audio recording responses and pseudonyms used to document results. Notes on new ideas and respondent answers to probing questions will be taken and included in transcribed content for analysis. Out of the purposive sample of 15 employees in Saudi Airlines’ marketing and communications department, 13 staff (managers and supervisors) will receive a questionnaire designed to extract information on marketing arrangement, in-house operations, and viability. This group’s knowledge of the corporate strategic plans and transition options may be limited. Therefore, A VP and Director (the executive director, center of excellence at Saudi Airlines Cargo and the director of marketing and corporate communications at Saudi Airlines Catering) involved in executive decision-making at the department will be interviewed to expand the depth of information gathered. No compensation will be provided for participation, but a free video/ photo shoot will be given to the entity to increase response rates.

Data Handling and Analysis Procedures

The survey (from pre-notification to questionnaire administration) will run for four weeks. Submitted electronic questionnaires will be visually inspected for completion before analysis. Only complete surveys with valid responses will be selected for use. Quantitative data handling will entail downloading the data into an EXCEL spreadsheet and exporting it to SPSS software for statistical analysis. Frequencies and descriptive statistics for demographic data and each variable (cost and output of in-house marketing and communications) will be analyzed and presented in tables and charts.

Qualitative data will be analyzed deductively based on the research questions and secondary sources. Contextualization of the responses to open-ended items in the questionnaire will ensure that all information is captured in the analysis. The presentation of qualitative data in a matrix table will support a systematic identification of the dominant themes (Edmonds & Kennedy, 2019). Coding will follow the tabulation to sort the information into meaningful categories based on patterns or recurring ideas in the responses on trends in in-house versus outsourced marketing operations. Logically related codes will be paired for ease of comparison. On the other hand, interview data transcribed from audio tapes will be analyzed using coding. From the initial codes, broad themes will be noted for each research question.

Secondary data from archival documents, such as company reports, will be used to triangulate quantitative findings to strengthen the design and achieve a deeper understanding of the respondents’ opinions on marketing and communications trends during and after COVID-19. The main benefit of secondary data, for example, annual reports, is the triangulation of primary data (Edmonds & Kennedy, 2019). Evaluating multiple sources also gives a holistic picture of the variables. However, using incomplete or outdated information can affect the usefulness of secondary data. Therefore, recent annual reports and marketing budget documents will be sourced and used in this study.

Data Collection Instruments

The study will use a self-administered web-based survey questionnaire. Closed questions allow a respondent to choose from a list of options, while open-ended ones permit the expression of responses or opinions. Both sets of items will be developed from literature and used in the qualitative study. Validation of quantitative findings will be based on secondary data – company documents and reports.

The first part will contain five subsections based on the study questions. The first sub-section will ask participants about the pandemic-related marketing trends at Saudi Airlines Catering Company before and after COVID-19. It will include qualitative items comparing in-house and outsourced marketing services. The second sub-section will evaluate the cost and output of moving marketing and communication in-house based on quantitative data. The fourth part will describe the benefits and challenges of moving marketing operations in-house versus outsourcing before and during the pandemic. The last sub-section will contain open-ended questions asking respondents to describe trends in physical meetings and communications versus virtual C-level executive meetings at the company. The second part will capture descriptive demographic data of the respondents, including age, gender, and the number of years in the organization. The information will be collected last to avoid respondent burnout.

Instrument Validity and Reliability

Piloting the questionnaire instrument will be needed to determine its robustness and accuracy. In this process, a survey of a few colleagues’ and students’ knowledge about the airline industry will be done. The results will help assess if the questionnaire is presented in an easy-to-answer format. Based on their critical reviews, the instrument will be improved to achieve content validity and minimize measurement error (Edmonds & Kennedy, 2019). The feedback will also enhance the precision of the final questionnaire before administration. Triangulation of primary data with secondary sources will also improve the rigor and trustworthiness of the results.

Research validity indicates the suitability of a study’s procedures and data. It encompasses three sub-types: construct (described above), internal, and external accuracy. Measures that minimize ambiguity of the findings enhance internal validity (Edmonds & Kennedy, 2019). Member checking will be used to clarify unclear qualitative responses during analysis. External validity entails the assessment of the transferability or generalizability of the results to related contexts (Edmonds & Kennedy, 2019). For qualitative research, the credibility of the findings is essential – it ensures data completeness and accuracy. In the current study, follow-ups with respondents after summarizing the responses will make the results credible.

The transferability of the findings may be limited since the research involves a case study design. As such, the scope of the study is limited to Saudi Airlines’ management of in-house marketing and communications. The company is located in Saudi Arabia; hence, the study site may affect the generalizability of the results to other industries and regions. To make the findings transferable, a detailed account of the methodology is needed (Edmonds & Kennedy, 2019). In this study, a detailed description of the research strategy, including the study design, respondents, and data handling procedures, have been documented.

Reliability is another characteristic of a well-designed and robust research instrument. It describes the ability to replicate the study’s results in another research (Edmonds & Kennedy, 2019). In a qualitative study, clearly documented research steps and objective analysis can yield reliable findings. The test-retest method is a common measure of the reliability or consistency of questionnaire items (Edmonds & Kennedy, 2019). The approach entails comparing responses to the questions between two consecutive tests. Similar scores (correlation coefficient) indicate relatively high instrument stability or reliability. The questionnaire will be piloted twice to the same select group of respondents (colleagues) to determine the internal consistency of the items. The administration of the same questionnaire to all respondents will also ensure a consistent survey.

Research Ethics

Protection of Participants

Considerations of human subjects in qualitative research include the protection of confidentiality. Informed consent is a primary ethical standard for safeguarding participants from any harm (Edmonds & Kennedy, 2019). In this regard, the researcher will disclose information to potential respondents about the research purpose, possible risks, and uses of the findings. Executives/directors will be encouraged to seek clarity on any issue through face-to-face interactions or telephone calls before consenting to participate voluntarily. This action will ensure that participants understand the study, their rights, and their role in the research. Informed consent will be sought before commencing data collection through an invitation letter sent to potential respondents. It will include a provision permitting free withdrawal from the study at any stage of the research.

The surveys will exclude identifying information such as names of the participants, addresses, or positions in the company. Rather, random codes will be assigned to the participants to aid in questionnaire administration and non-response follow-up. Demographic questions will only include the age and gender of the respondents. As stated, participation will be voluntary; thus, no incentives will be offered. Further, completed questionnaires, company data, and other

Linguistic and Cultural Sensitivity

Saudi Airlines is a large company with employees from diverse cultural backgrounds. Language differences may exist in this organization; however, for the purpose of this study, the data collection instrument will be provided primarily in English. Arabic versions of the questionnaire will be made available upon request. Participants will be addressed respectfully regardless of gender or race. Institutional Review Board approval of the research will be sought from the university before data collection.

Results and findings

Introduction

This chapter analyzes the data from the interviews and a survey of the management staff of Saudi Airlines using qualitative and quantitative methods. The analysis will give more insights into pandemic-related marketing trends at the firm, cost and output of in-house operations, benefits and challenges of an internal communication model, and preferred mode of executive meetings during and after COVID-19. The results are structured around the four objectives of this study.

Demographics and Descriptive Statistics

Response Rate

Out of 13 questionnaires issued to managers and supervisors from the marketing and communications function, five were completed and returned, representing a response rate of 38.5%. Of the 28 questions included in the survey, complete responses were obtained for 10 items. Table 4.1 summarizes the proportion of complete, incomplete, and partial responses obtained. From the table, 35.7% of the participants were responsive, while 28.6% of them did not respond fully to the questionnaire.

Table 4.1: Response Rate

Demographic Characteristics

Three demographic measures were used: gender, age, and duration working in Saudi Airlines. A summary of the respondents’ demographic data is provided in Table 4.2. From the table, all respondents were male, most of them aged 40 years and above. A majority of those surveyed had stayed in Saudi Airlines for 2-3 years, with three employees having worked at the airline for over four years. No respondent had been at the company for over a decade.

Trends in In-house versus Outsourced Marketing Services

Organizations have adopted different modes of marketing and communications depending on internal capacity, resources, and need. The first objective of this study focused on general trends in marketing services, including in-house agency and outsourcing. Nine questions covering the full range of Saudi Airlines’ internal and external marketing operations were included in the survey. The trends, including the type of model used, are analyzed under the following subsections.

Establishment of In-house or Outsourced Marketing Operations

The survey results in Figure 4.1 revealed that marketing operations (internal or outsourced) were initiated at Saudi Airlines within the last 1-5 years, which also includes the COVID-19 period. However, 40% of the respondents indicated that some aspects of the internal function and outsourcing were started over a decade ago. No internal or external marketing operations have been initiated by this airline within the last 11 months.

Type of Marketing and Communications Model in Use Since 2020

As shown in Figure 4.2, 40% of the respondents indicated that the dominant model of marketing and communications at Saudi Airlines since early 2020 when the pandemic hit has been the in-house resource. About 20% of them stated that the outsourced agency has been in use during this period. The results suggest that the firm employs a combined or hybrid approach that includes internal and external components.

Reasons for Considering In-house Marketing and Communications

The respondents were asked the reasons for the adoption of in-house marketing and communications at Saudi Airlines. Qualitative responses indicated that the airline established an internal function to “save money wasted in outsourced services” and because it is cheaper. Others stated that these operations support management of marketing projects internally, while outsourcing the execution to experts. Another respondent (new employee) indicated, “It had been established before I joined”.

Creative Skillsets and Capabilities Needed in In-house Teams

This qualitative survey item sought the participants’ views on the requisite skills for functional in-house teams. One respondent considered “motion graphics, animation, photography, graphic design, and project management” as critical skills and competences that in-house team members must have in order to perform their roles. Another participant identified interaction skills and awareness of “modern and cultural trends” as essential personal attributes of in-house marketers. According to the third respondent, effective in-house marketing and communication specialists must also be knowledgeable in “creative content writing, scripting, execution, and finalization”.

In-house versus Outsourced Services

Respondents were asked to name the type of services Saudi Airlines currently outsources to external agencies and those assigned to in-house teams. One participant stated that among the functions outsourced to contractors included “motion graphics and animation”. On the other hand, internal teams performed “photography, graphic design, and project management” because they involved “faster, cheaper commitment” than external sourcing. Another response to this open-ended question was that services were only outsourced if the project needed capabilities not available in in-house teams.

Type of In-house Creative Structures at Saudi Airlines

A closed-type question was used to determine the type of in-house structures the airline uses for its creative marketing function. From the results in Figure 4.3, a majority of the respondents (60%) stated that all creative activities are centralized in the head office. However, 20% of this population noted that the firm employs a hybrid structure that combines centralized and decentralized creative marketing structures.

Relationship between In-house Operations and External Agencies

An in-house department usually works with external agencies to design or launch ads as well as during the inception and execution of marketing projects. Respondents were asked to describe the relationship between Saudi Airlines’ internal operations and third-party companies. In-house operations were described as being “more effective” than outsourcing because of “flexible schedules” and “better control”. Another respondent characterized the relationship between in-house and external agencies as “good”. However, he noted, “outsourced projects usually need a lot of improvement”, suggesting limited sharing of knowledge and expertise.

Key Roles and Responsibilities

Respondents were asked to name the main roles and responsibilities of in-house teams and external agencies in marketing and communications projects. One participant stated that Saudi Airlines designs the communication and marketing services, including branding and creating new logos, catalogs, brochures, packaging designs, and internal/external company announcements. On the other hand, the airline engaged external agencies only in photography and video shoots. Outsourced agencies also execute projects according to contract terms.

Infrastructure and Technologies Allocated to the In-House Team

The survey results indicated that Saudi Airlines dedicated minimal resources to its in-house marketing team. According to one respondent, the function only receives basic technology infrastructure such as computers. Another one noted that team has paid membership to subscription websites. Thus, it can access resources and exclusive content needed to perform its role. A respondent also indicated that the in-house team receives “top of the line equipment and technology”.

Cost and Output of Moving In-house

The study sought to determine the investment needed to establish a functional in-house function at Saudi Airlines. Additionally, the output of this department was investigated to develop a business case for internal marketing operations at the airline. Six questions, including five open-ended ones and a closed item, were included in the survey for this objective. The results and findings are presented under the following subsections.

Annual Budget and Overhead Costs of In-house Agency

Given that preparing and allocating funds for expenses and material costs are a function of finance teams, most participants were unaware of the annual budget of the in-house marketing and communications agency. One respondent stated that Saudi Airlines spends approximately 30% of its marketing budget on in-house projects. The interviews with the executive director, center of excellence at Saudi Airlines Cargo and the director of marketing and corporate communications at Saudi Airlines Catering will help determine the average annual budget of the in-house agency.

Alignment of In-house Projects with Business Objectives

Respondents were asked to explain how internal marketing projects are aligned with Saudia’s objectives. Most of those surveyed indicated that in-house operations support the airline’s financial objectives. One respondent revealed that the internal agency “goes along with Saudi Airline in everything in order to meet its needs”. In-house projects were designed to meet the strategic goals of the firm both in the short-term and long-term.

Financial Benefits of the Funding Model

From the above survey item, the airline allocated 30% of its marketing budget to in-house projects. Respondents were asked how this funding model ultimately benefits the carrier financially. One individual stated, “It keeps Saudi Airlines from wasting time and money” by reducing spending on external agency. However, a second respondent observed that this funding model has no financial benefits for the airline, suggesting gaps in communicating cost savings from in-house investments.

Cost of In-house Operations Compared to External Agency

Investing in in-house operations may lead to significant cost savings in the long-term. However, building internal capacity may be costly for the airline initially. One respondent noted that though he did not know the exact cost difference between in-house operations and external agency, it was substantial, hence financially viable. Another individual estimated that internal projects cost 30% less than outsourced ones. According to a third respondent, “in-house operations have lower costs in the long-term”, while external agency helps avoid costly new investments.

Outputs of In-house Agency

Respondents were asked to list the outputs of the in-house agency since it was established at the airline. One individual stated that the internal team performs “graphic design and create logos and brochures”. Another output of this function is the development of the airline’s internal and external communications. According to one respondent, “for corporate communications, the agency creates an average of one video every month. Other outputs obtained through the survey include “photo shooting for social media marketing, internal communication, and crafting central wallpapers”.

Level of Satisfaction with Output Quality

The quality of ads and communications developed by the internal team indicates its level of skills and capability. As shown in Figure 4.4, 40% of the respondents were satisfied, while 60% of them were completely satisfied with the quality of output from the airline’s in-house function. The survey results suggest that ads and communications produced internally are not inferior to those developed by external agencies.

Benefits of Establishing In-house Teams over Outsourcing

The study sought to compare the benefits of having internal operations versus engaging external agencies. Respondents identified significant cost and time savings, better control, and data protection as the main advantages of this model. The airline’s in-house team was also considered easily accessible compared to an external provider since it operates within the marketing and communications department. Respondents also noted that in-house agency supports flexible time frames and schedules for projects, leads to a better understanding of requirements, and allows follow-ups and monitoring of outputs. It is also more reliable than outsourcing, as the internal team understands the airline’s strategy and business objectives.

Industry Benchmarks for Determining Benefits

The survey included an open-ended question on the benchmarks that Saudi Airlines uses to assess the gains from in-house marketing. Respondents gave diverse responses, including the “time to execute projects and cost”. Thus, the benefits of reduced project duration and cost were benchmarked against industry standards. Another respondent stated that Saudi Airlines compares job costs and contract fees over a period to determine the cost-effectiveness of in-house marketing over outsourcing.

Benefits of In-house Operations to the Consumer

The survey included a question on whether Saudi Airlines passed the benefits of in-house operation to its consumers, including travelers. From the above item, these advantages are cost and time savings, better control, data protection, and enhanced scheduling flexibility. Respondents agreed that customers benefit from in-house operations by receiving highly customized in-flight entertainment products, including ads. Increased accessibility to internal communication teams was also noted as an advantage of this model over outsourcing.

Challenges of In-house Marketing and Communications

This section sought to identify key constraints to the establishment and management of an in-house function. One respondent named “hiring an in-house marketing team and reassigning new roles to employees who are embedded within the company” as major challenges. The high cost of establishing and running in-house marketing and communications operations was another constraint identified in this survey. Another respondent identified “heavy investment in equipment and skilled manpower” as a major challenge.

Physical versus Virtual Meetings

The COVID-19 pandemic affected work by limiting the number and frequency of in-person events. Companies adapted by having a large proportion of their workforce working remotely and reducing physical meetings. The study’s fourth objective was to investigate trends in C-level executive meetings at Saudi Airlines. Four open-ended questions were included in the survey to investigate these practices. The results and findings are presented under the following subsections.

Cancelation of Physical Business Meetings

The respondents indicated that business meetings have been canceled since March 2020 when the COVID-19 cases were first reported in Saudi Arabia, leading to a ban of in-person events and a shift to a virtual work model. One respondent stated, “Not less than two events have been suspended over the past one year”. Others concurred that all in-person meetings were canceled and substituted with virtual ones.

Physical Executive Meetings Held

The participants stated that most executive meetings were shifted online since March 2020. One respondent noted that less than five physical meetings have been held over the last one year. Another one noted that in-person events attended by the airline’s board members declined by 80% from the 2019 level. The average group size of physical meetings also declined significantly due to social distancing requirements for such events.

Frequency of Virtual or Hybrid Meetings

Respondents were asked how often staff meets virtually or physically in the office. One participant stated, “It varies depending on functions, level, and need”, while another indicated that in the COVID-19 period, most interactions are held online except small meetings. Virtual and hybrid meetings were convened almost every day. Respondents also noted that when staff meets remotely, the number of participants is almost three times those attending physically. Notably, female employees prefer virtual meetings, as their attendance rate is high. The respondents indicated that this trend is likely to continue post COVID-19.

Challenges of Virtual C-level Meetings

Respondents listed some challenges experienced when conducting virtual meetings. Technical issues were identified as a major constraint, suggesting limited technical capacity of most employees to use videoconferencing applications and inadequate infrastructure to support remote working. As a result, participants noted that meetings take longer than usual or are ended prematurely. Communication gaps and differences in time zones were also listed as impediments to effective executive meetings.

Interview Results

Demographic Information

Two Saudi Airlines’ executives were interviewed for this study: the executive director (ED), center of excellence at Saudi Airlines Cargo and the director of marketing and corporate communications (DMC) at Saudi Airlines Catering. They are both male aged 24-29 and 30-35 years, respectively. Both executives have been employees of Saudi Airlines for 2-3 years.

Trends in In-house versus Outsourced Marketing Services

The question about the frequency of using in-house teams elicited interesting insights. According to the ED, the airline has taken optimization measures post COVID-19 to cut costs and enhance efficiency. He estimated that 50% of marketing has been moved in-house since March 2020. Campaigns that need global access and networks are still executed through external agencies. On his part, the DMC stated that some changes have been made post COVID due to budget cuts. According to him, the proportion of in-house and outsourced marketing services is 70% and 30%, respectively.

Key in-house capabilities have been built at the firm since 2020. The ED listed them as fortifying Microsoft Dynamics (an application for customer relationship management) and activating marketing analytics to manage the airline’s social media accounts, define ROIs for campaigns, and monitor customer experience. The major capabilities moved in-house include graphic design, website development, retail user experience, and all artwork (DMC). Video, photography, and strategic services, such as media planning and monitoring and posts are outsourced (ED). The interviewees identified key digital capabilities that Saudia has exploited since 2020 to compete. They include mapping the customer journey, identifying good and bad user experiences, and using technology (DMC). Other capabilities are developing cross-functional teams and mapping out tasks for each employee (ED).

Cost and Output of Moving In-house

The interviewees identified key performance indicators for measuring value from in-house teams. According to DMC, “customer, cost, and service were optimized by 10-12% from the 2019 (baseline)”, as the main output metrics. On his part, ED identified time and cost as the performance metrics adopted for in-house teams. The quality of output from in-house teams are measured based on clear deliverables and expectations (ED) and customer satisfaction survey score, which increased marginally by 0.5 points in 2020 (DMC). Interestingly, moving marketing operations in-house has not affected this score.

The interviewees considered in-house marketing more cost-effective than outsourcing in terms of quality and cost (ED), especially due to pandemic-related budget cuts. DMC noted that implementation costs, software, and training make in-house operations expensive. This budget will be capitalized in the next five years. However, some savings have been made, which, coupled with time efficiencies and quality, will make in-house agency cost-effective in the long-run (DMC). The funding model used to finance in-house operations is capitalization “CAPIX” for the next five years (DMC). Additionally, top-level budgets are divided into departmental expenditure plans at a cost center (ED).

Benefits and Challenges of In-house Marketing

ED listed the following challenges experienced in in-house operations: egos clashing, strong opinions, and the struggle by in-house teams as a better and cost-effective alternative to an external agency. For DMC, the “failure by in-house teams to communicate appropriately with external agency in brand development and campaigns” is a major challenge. The gains made by moving operations in-house include instituting a professional marketing function, cost optimization, and digitization of marketing and customer experience (DMC). Other benefits are the adoption of strategic approaches, enhanced exposure and market responsiveness, and improved understanding of costs (ED).

Physical versus Virtual Meetings

The physical attendance for C-level executive meetings has changed significantly. According DMC, more people attend events virtually because it is more efficient. Additionally, executives spread around Saudi Arabia can meet frequently using virtual applications. ED estimated that physical attendance has dropped by over 90% since moving to online meeting. According to DMC, currently, 70% of the meetings are held virtually and this trend will definitely continue post COVID-19 because it is cheaper and more convenient for C-level executives than flying.

Discussion of results and findings

Introduction

This chapter presents a discussion of the main themes emerging from the results of this investigation. The empirical findings are analyzed in the context of previous research and theoretical models used in this study. The subsections of this chapter include a discussion of the predominant marketing trends (in-house versus outsourcing) during the pandemic, costs and outputs of internal operations, related benefits and challenges, and changes in the conduct of C-level executive meetings and communications. The analysis is structured around the four objectives of this research.

Trends in In-house Versus Outsourced Marketing Services

The first objective of this research is to establish the main trends in in-house marketing versus outsourcing before and during COVID-19 through a case study of Saudi Airlines. Six major trends in in-house marketing emerged from the analysis of the responses and interview data. These developments begun about five years ago but were exacerbated by the pandemic. The trends are discussed in detail under separate subsections below.

In-house Creative Operations are rising

The investigation revealed that the airline begun an in-house marketing within the last five years. Overall, 60% of the respondents and the two interviewees agreed that most creative services are now performed internally. This finding is consistent with the World Federation of Advertisers [WFA] (2020) study that reported a deepening trend where 74% of the firms established internal creative operations in the past five years. The reasons for this shift include lower costs, enhanced integration between departments, and better product knowledge. The Association of National Advertisers (2018) also found that 78% of US firms had in-house operations, an increase from 57% in 2013. Therefore, Saudi Airlines has joined this global trend by setting up an internal marketing team.

While there has been an accelerated shift to in-house operations, this trend does not mean external ad agencies are dispensable. In this study, 20% of the respondents indicated that Saudi Airlines has been using a hybrid model since 2020. The interview results corroborated this finding, as the DMC and ED estimated that 30-50% of marketing services at the firm are still outsourced. The WFA (2020) report found that about 63% of creative content comes from external agencies. Thus, many brands still work with ad agencies to complement their internal operations, as they have the expertise and technology to provide quality output in collaborative projects.

Marketing Functions Lacking Internal Expertise are Outsourced

This study went a step further to examine the specific type of marketing services outsourced and those offered by internal teams. Functions that need technical expertise unavailable internally, such as motion graphics and animation, strategic services, and media planning and monitoring were outsourced (WFA, 2020). On the other hand, in-house capabilities existed in Saudi Airlines for strategic roles, such as photography, graphic design, marketing analytics, and project management. The continued use of ad agencies suggests that they have the expertise and technology that complements Saudi Airlines’ in-house talent.

Evidently, COVID-19 has led firms to consider strategies that will make them more agile and support efficiency. The use of internal talent and capabilities to generate creative output and ads has increased recently to reach the growing online customer segment, with firms such as Intel, joining this trend in 2015 (Bruell, 2018). Thus, one of the forces driving the move towards creating ads in-house is expansion in digital opportunities. The COVID-19 outbreak exacerbated this trend due to pandemic-related budget cutbacks and slow growth (WFA, 2020). However, Saudi Airlines has not expanded its internal operations over the past 11 months, suggesting a slow shift to fully functional internal operations.

In-house Agency Adopted to Enhance Efficiency and Integration

Brands, including multinational corporations, pursue in-house marketing and communications for various reasons. This study found that Saudi Airlines set up an internal function to cut its spending on outsourced services since this strategy is cheaper, and thus, a cost-optimization measure to survive COVID-19 effects. Additionally, in-house projects, unlike outsourced services, can be managed internally. These findings are consistent with the results of the WFA (2020) survey that identified “cost efficiency, better integration, and brand knowledge” as the primary reasons for moving operations in-house (p. 7). In particular, COVID-19 has increased the need for efficient internal branding services due to budget cutbacks.

Most Creative Skills are Developed Internally in Centralized Teams

Another trend explored by this study was the nature of creative skills and capabilities developed internally. Accordingly, Saudi Airlines’ in-house team was assembled from experts in motion graphics, animation, photography, graphic design, and project management. Additionally, the members are trained in creative communication, content writing, and scripting and must be aware of modern cultural trends. These skills and competencies are needed to perform the roles moved in-house, including marketing analytics, website optimization, monitoring customer experience, and video and photography. Similarly, Dwivedi et al. (2021) identified SEO and content marketing, data analytics, and e-commerce capabilities as the key skills that internal teams need. Therefore, Saudi Airlines has focused on building the right in-house expertise to drive its marketing strategy.

Firms have to choose an optimal model for managing newly established in-house teams. Most companies have adopted a centralized approach in which a single team produces all the organization’s creative output (Vergne, 2020). Saudi Airlines has moved to a centralized structure, where a central team completes most creative activities. Some of the reasons for using this model are that it enhances efficiency through economies of scale and standardization, creates a customer-centric orientation, and enhances accountability (Vergne, 2020). However, 20% of the respondents indicated that the airline uses a hybrid structure, suggesting that some in-house creative activities at Saudi Airlines have been decentralized to separate marketing teams.

Blended Working Relationship between In-house and External Agencies

Another trend established in this study is that Saudi Airlines has designed its in-house team to complement the functions of ad agencies. While respondents considered in-house teams effective due to flexible schedules and better control of projects, the airline still works with external marketers in areas like motion graphics, animation, and media planning and monitoring. This blended working relationship between internal teams and ad companies highlight the gaps in expertise that can be filled with input from third parties. The WFA (2020) also found continued partnerships between firms and media agencies, with 40% of them providing opportunities for both in-house and external teams to pitch ideas for projects. This trend is likely to increase, as brands need access to capabilities lacking internally.

The blended working relationship means that the roles performed by in-house teams complement the work of external agencies. At Saudi Airlines, the internal department is responsible for branding and creating new logos, catalogs, and brochures. Another responsibility includes developing internal or external announcements and posts. External media agencies are contracted to do motion graphics, animation, and media planning and monitoring for Saudi Airlines. Thus, the dominant trend is that most firms continue working with ad agencies in areas that they have no internal capacity.

Investments in In-house Agency Are Increasing

A notable trend gleaned from the results of this study is that the amount of resources dedicated to in-house teams is rising, probably because of the cost and efficiency benefits of this model. Saudi Airlines has invested in infrastructure (computers), quality content and resources (websites), and equipment to meet the internal team’s needs. There has been a rising trend in the amount resources being channeled to the in-house function.

Additionally, the airline has built certain in-house capabilities since 2020. For example, it has deployed Microsoft Dynamics to support customer relationship management and activated marketing analytics to help the team manage social media accounts and optimize the customer experience. Consistent with this finding, Dwivedi et al. (2021) noted that companies must prioritize internal data analytics and content marketing capabilities to drive growth and efficiency. Similarly, Saudi Airline leverages digital capabilities to compete and grow its market share. The firm has used big data to map the customer journey, identify good and bad user experiences, and define tasks for cross-functional teams.

Cost and Output of In-house Marketing and Communication

The second research objective was to investigate the cost and input needed to move marketing and communication in-house at Saudi Airlines. Having established a rising penetration of in-house marketing, the study sought to determine the cost efficiency of this strategy to provide a benchmark on budgetary allocation to internal agencies. The study found that Saudi Airlines allocates one-third of its marketing budget for internal operations annually – personnel costs and expenses. The Association of National Advertisers [ANA] (2018) reported that 75% of its members spent an average of $25 million in in-house agency in 2017. Most of them (51%) had increased the budget from the 2016 figure. Consistent with the results of this study, internal marketing operations are increasingly being prioritized due to budget cutbacks. They are also aligned with corporate objectives of enhancing efficiency and saving costs to survive the pandemic.

Saudi Airlines’ funding model (capitalization or CAPIX) is instrumental to cost-efficient marketing operations. By allocating 30% of its budget to in-house agency, the airline ensures this function is well resourced and supported. This model allows the carrier to make significant cost savings (external agency fees). As noted in the ANA (2018) report, cost is an area of interest for marketers given that more media content is needed in branding. To meet this goal, creative ads are produced in a cost-efficient way using in-house studios.

The results of the interviews and survey demonstrate that in the long term, the cost savings are substantial. However, initial investment in software, training, and implementation of in-house agency in the airline was significant. However, when the cost savings from agency fees and efficiency gains are considered, the model is financially viable in the long-term. In-house projects at the airline cost 30% less than outsourced ones.

Besides cost-efficiencies, the airline’s in-house agency also had other outputs. The internal team created logos and brochures and produced internal and external communications (one video monthly). Other outputs included social media content and wallpapers for marketing purposes. Additionally, in-house agency helped optimize cost and services by 10-12% from the 2019 levels. Consistent with this finding, ANA (2018) notes that speed is a key performance indicator of in-house teams – they can respond rapidly to market changes than ad agencies can. They also deliver faster results than external firms that handle multiple projects from diverse clients.

The quality of the creative output coming from in-house agencies was is an indicator of internal capabilities. In this study, most respondents considered the quality of internal media content and communications satisfactory. The customer satisfaction survey score increased by 0.5 points in 2020, suggesting that the in-house team meets the set deliverables and expectations. However, the airline outsources services where internal capabilities are low, resulting in a blended working relationship with ad agencies (WFA, 2020). Therefore, using a hybrid model that combines in-house talent and media firms can yield quality creative output.

Benefits and Challenges of In-house Marketing and Communications

For the third objective, respondents were asked to identify the challenges and benefits of having in-house teams, especially since the pandemic has exacerbated the need for cost-efficient operations. For Saudi Airlines, an internal marketing team led to significant cost savings, increased speed and turnaround, and enhanced accessibility, as integration with other departments is easier. In a past study, cost efficiency was ranked the most important benefit of in-house agency by 38% of respondents, followed by enhanced brand knowledge, and speed and agility (ANA, 2018). Similarly, Saudi Airlines’ internal team was considered easily accessible, agile, responsive to timelines and schedules, and had a better understanding of the requirements. Thus, it is more reliable than and can lead the creative strategy more effectively and cost efficiently than media agencies.

Data analytics are increasingly being moved in-house for strategic reasons. Saudi Airlines implemented Microsoft Dynamics for customer relationship management and marketing analytics for social media monitoring and customer experience optimization. Thus, the benefits of data security and ownership are among the reasons for moving operations in-house. Internal analytics give the airline control of the data – it can access and utilize this information to improve customer experience and develop creative content.

Saudi Airline uses specific benchmarks to measure the benefits of its in-house operations. The time taken to execute projects and costs incurred were lower than industry averages. A comparison of internal personnel costs and media agency fees over time showed that in-house operations are more cost-effective than outsourcing. This finding is corroborated by the results of a study by WFA (2020) that indicated cost savings as the primary reason why firms are moving marketing services in-house. Interestingly, the benefits of in-house marketing were passed to Saudi Airlines’ customers. Travelers benefitted from customized in-flight products and ads and could easily access internal communication teams for suggestions and complaints.

The main challenges for the airline’s in-house agency relate to assembling the team and managing projects. The initial costs of establishing an internal function were high. Heavy investments were needed in equipment and training in order to deliver great creative content. ANA (2018) also identified talent recruitment and retention as a major challenge for in-house agencies. Additionally, managing resources and increased workloads or projects can be challenging to the internal team. Consistent with these findings, the executives interviewed identified the clash of egos, strong opinions, and poor communication with external agency as key constraints to effective branding and marketing projects.

Trends in Physical Versus Virtual C-level Executive Meetings and Communications

The fourth objective of this study examined pandemic-related changes in the conduct of executive meetings since 2020. Several trends were identified from the survey with a general shift to virtual interactions in compliance with public health directives against in-person events. The study explored the frequency, number of attendees, cancellations, and challenges for executives meeting virtually. The main trends gleaned from the results are discussed below.

Physical C-level Executive Meetings Are Declining

In-person events planned for 2020 were canceled following the COVID-19 outbreak. Saudi Airlines was compelled to shift to virtual and remote working after the government imposed a ban on physical meetings. The airline suspended more than two events in 2020 in compliance with this directive. Further, less than five physical meetings have been held over the past one year in the airline’s boardroom. Similarly, Alexander et al. (2020) observed a rising trend in virtual meetings globally during the pandemic. They attribute this change to growth in digital technology that supports virtual communications.

Another notable trend is the decline in the number of executive managers attending in-person consultations. An 80% drop in physical attendance rates was reported, as people opted for online meetings. The average group size also decreased because of social distancing requirements. However, attendance in virtual meetings increased, with more females participating. Adopting a hybrid model has been a common practice during this pandemic, where a few executives attend physically while others participate virtually (Alexander et al., 2020). This rising trend is enhanced by new technology and prolonged restrictions against in-person interactions.

Virtual and Hybrid Meetings Have Become More Frequent

Virtual meetings have become the norm at the airline since 2020. As one interviewee stated, “we are able to meet much more frequently” and “with colleagues who are spread around Saudi Arabia spontaneously”. His sentiments suggest an increasing frequency of online meetings, as executives spend more time on virtual calls. Given that in-person events are discouraged, the other alternative is to meet virtually via Zoom, Google Meet, or other videoconferencing applications (Deloitte, 2021b). These tools mediate the leaders’ influence and control in virtual environments.

Virtual meetings have become more frequent because leaders need to communicate, organize, monitor, and coordinate interdependent teams in order for Saudi Airlines to survive the pandemic. Executives at the airline meet almost every day, with some attending in-person and others virtually. Alexander et al. (2020) emphasized the significance of clear, regular communication in driving organizational strategy. Leaders should not let disruptions such as COVID-19 affect the company’s focus and vision. For Saudi Airlines, the frequent e-meetings suggest that the executives have embraced internet-based technologies that make virtual work possible.

This trend also highlights the leaders’ familiarity with remote working. According to one executive, presently, 70% of all meetings are virtual, indicating a widespread use of technology to manage employees and reach customers. For a large organization like Saudi Airlines, virtual tools foster the sharing of ideas between departments and better information flow outside the boardroom to (Deloitte, 2021b). As a result, creative solutions can be produced to support the airlines’ post-pandemic recovery. The executives’ technical competence and technological knowledge have reduced barriers, resulting in frequent online meetings. They consider e-meetings cheaper and convenient than flying to a destination for in-person events.

Virtual C-level Meetings Have Key Challenges

While virtual meetings are feasible, they are prone to specific challenges. This study investigated the potential difficulties leaders and employees face when using this mode of interaction. Among the top challenges identified are technical issues related to using the videoconferencing system. According to Alexander et al. (2020), the camera issues (poor lighting and background distractions), unmuted microphones, and poor network can hinder quality meetings and communications. Therefore, establishing ground rules for participants and providing technical support can help address these challenges.

Besides technical issues, the respondents considered some participant behavior frustrating. Background noises and movements in the home usually distract attendees or distort communications (Alexander et al., 2020). Additionally, failing to mute microphones affects the speakers’ concentration. The contributors also noted that compared to face-to-face events, virtual meetings often take longer than usual or are terminated prematurely. Starting late or lacking clear guidelines on how speakers should conduct themselves can reduce the effectiveness of virtual meetings. Therefore, most videoconference participants do not follow the meeting etiquette. However, since COVID-19 caused an abrupt shift to virtual environments, some of these challenges will be addressed in due course to improve the effectiveness of online meetings.

Conclusion, limitations, and recommendations

Introduction

This chapter summarizes the main findings of the study that have implications for in-house marketing and communication during and after COVID-19. The main conclusions related to rising trends in in-house marketing today, cost and output of internal operations, benefits and challenges, and virtual C-level meetings are stated in this section. Key limitations of the study are also acknowledged and suggestions for future studies made. Finally, practical recommendations are provided for Saudi Airlines and firms considering an in-house agency.

Conclusions

This study sought to investigate pandemic-related trends in internal versus outsourced marketing, examine cost and output of moving operations in-house, evaluate key benefits and challenges, and finally identify micro-trends in executive meetings during and after COVID-19. To answer these objectives, the investigation used two qualitative methods: a web-based survey of five Saudi Airlines staff and in-depth interviewing of two executives. The main findings are summarized for each objective of the study.

The results of the investigation of the pandemic-related in-house versus outsourced marketing reveal that internal operations have been elevated at Saudi Airlines. Six major trends were found that are also seen in other firms after the COVID-19 outbreak. First, in-house creative operations are increasing, as more projects are now being handled internally than before the pandemic. Saudi Airlines took about 70% of its marketing services in-house due to cost efficiency, speed, better integration, and flexibility. Second, functions for which the airline lacks internal expertise are outsourced, resulting in a blended working relationship between internal agency and external marketers. Saudi Airlines has internal capabilities in photography, graphic design, marketing analytics, and project management. However, it lacks expertise in motion graphics, animation, and media planning, which are outsourced to media agencies.

A third main trend is that the benefits of cost efficiency and integration are driving growth in in-house agencies. The need to save costs (agency fees) due to pandemic-related budget cutbacks is among the top reasons for establishing internal marketing agency at Saudi Airlines. The fourth trend is that creative skills are predominantly developed by a central team. At the airline, a single team handles photography, graphic design, scripting, and marketing analytics. This centralized structure ensures standardized creative output, customer focus, and accountability. The fifth major trend is that the airline uses a hybrid working relationship between its in-house talent and external agencies. Ad firms complement work from the internal team, which ensures quality output. Lastly, the airline has increased investment in its in-house agency by availing computers, equipment, and software needed by the team.

The results of the analysis of costs and output of in-house marketing and communication indicate that internal agency is allocated 30% of the airline’s marketing budget using the CAPIX model. Cost savings (agency fees) and efficiency gains are important to the airline, especially during the pandemic. Since its establishment, the in-house agency has produced logos, brochures, videos, social media ads, and wallpapers. Interestingly, the quality of the creative output is not lower than that of externally produced services.

The investigation of the main benefits and challenges of internal marketing and communications revealed that cost-efficiency, enhanced integration, and accessibility are the main gains of moving operations in-house. Additionally, data transparency, ownership, and control are achieved to improve customer experience and creative content. The main challenges identified are high initial costs of establishing in-house operations, including equipment and training expenses. In addition, a clash of egos, extreme views, and poor communication can affect the efficacy of in-house teams.

Three major trends in virtual top management meetings were found in Saudi Airlines since 2020. First, the number of physical consultations among executives in 2020 was lower than in 2019. At least two in-person events scheduled for 2020 were suspended, with less than five meetings held in the airline’s boardroom in the same year. Second, executives frequently meet virtually or use a hybrid model that combines physical and online meetings. The number of videoconference participants has increased because of convenience and cost. Third, technical challenges, including camera issues and background distractions, affect the effectiveness of virtual executive meetings at the airline.

Limitations

While this study has contributed to our understanding of the significant trends in marketing today driven by COVID-19, it has some key limitations. First, the research had an initial sample of 15 respondents but sufficient responses could not be obtained because only five employees completed the survey. To reduce the impact of low response rate, in-depth interviews were conducted with the airline’s executives. Second, the study participants were not randomly selected but conveniently sampled. It is likely that their views may not be representative of all employees of Saudi Airlines. However, the goal of this study was not to test a hypothesis but to explore general trends in in-house marketing versus outsourcing after the COVID-19 outbreak.

Recommendations

Based on the findings of this study, practical recommendations are proposed for Saudi Airlines and firms planning to create in-house agencies. First, the airline and marketers should create a data management strategy to strengthen internal marketing analytics function. In particular, the company should develop its internal analytics capacity to store, access, and utilize data to improve customer experience and support creative projects. Second, in-house teams must find ways of working with external agencies, as they have unique expertise and capabilities needed for specialty services. A blended approach can generate differentiated benefits and cost savings for firms. It will also ensure balanced workloads between in-house and external agencies. Third, Saudi Airlines should conduct periodic performance evaluations of its in-house function using key performance indicators of business output. The appraisal will help identify potential issues, such as communication gaps, and address them.

References

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Appendices

Data Collection Instruments

• Research Questionnaire

Dear Respondent,

You are invited to participate in a study titled “The impact of video marketing on medium-to-large corporations in Saudi Arabia post-COVID-19”. Before proceeding to complete the questionnaire, you need to know the risks and benefits. Your participation is voluntary and you may decline the request or withdraw from the research at any point without any consequences. Your identity and responses will be strictly confidential and used for this study only.

The purpose of this research is to determine the impact of video marketing on Saudi Airlines before and after COVID-19. It will investigate pandemic-related trends in in-house and outsourced marketing at the organization, the costs and inputs of insourcing, and benefits and challenges of internal operations during this period. You will take about 15 minutes to fill this survey.

Part 1: Instructions. Tick where appropriate. For open-ended questions, write your full response in the blank spaces.

Section 1: Trends in in-house versus outsourced marketing services

1. When were in-house or outsourced operations established at your organization?
   1. <12 months [ ]
   2. 1-5 years [ ]
   3. 6-10 years [ ]
2. What type of marketing and communications model has your organization been using since 2020?
   1. In-house resource [ ]
   2. Outsourced agency [ ]
   3. A hybrid model [ ]
   4. Other
3. Why did your organization consider in-house marketing and communications services?
4. What creative skillsets and capabilities are needed to establish in-house teams?
5. Describe the type of services performed in-house versus those outsourced to external agencies.
6. What type of in-house creative structures is used in your organization?
   1. Centralized [ ]
   2. Decentralized [ ]
   3. Regional [ ]
   4. Hybrid [ ]
7. How would you describe the relationship between your organization’s in-house operations and external agencies?
8. What are the key roles and responsibilities of in-house teams versus external agencies in marketing and communications services?
9. What infrastructure and technologies have your organization allocated to the in-house team to make it successful?

Section 2: Cost and output of moving in-house

1. What are the budget and overhead costs of in-house agency annually since its establishment?
2. How are in-house projects aligned with the business objectives of Saudi Airlines?
3. How does the funding model benefit the airline financially?
4. How does the cost of in-house operations at the airline compare with external agency fees?
5.  What are the outputs of in-house agency since its establishment at the organization?
6. What is your level of satisfaction with the quality of output from in-house teams versus external agencies?
   1. Very dissatisfied [ ]
   2. Dissatisfied [ ]
   3. Indifferent [ ]
   4. Satisfied [ ]
   5. Completely satisfied [ ]

Section 3: Benefits and Challenges

1. What are the benefits obtained from establishing in-house marketing and communications teams over outsourcing?
2. What industry benchmarks does Saudi Airlines use to determine the benefits of in-house marketing over outsourcing?
3. How do in-house operations benefit the consumer compared to outsourcing?
4. What are the challenges of having in-house marketing and communications services for your organization?

Section 4: Physical versus virtual meetings

1. Have physical business meetings and events been cancelled since March 2020? How many?
2. Has the organization held physical executive meetings since March 2020? What was the average group size compared meetings convened in 2019?
3. How often do your organization use virtual or hybrid solutions for internal business meetings?
4. In hybrid models, what is the number of remote participants versus those attending physically?
5. Do you see this trend continuing post COVID-19?
6. What are the challenges of virtual C-level executive meetings compared to physical meetings?

Part 2: Demographic information

1. Please indicate your gender
   1. Male [ ]
   2. Female [ ]
2. Please tick the age bracket in which you fall
   1. 18-23 years [ ]
   2. 24-29 years [ ]
   3. 30-35 years [ ]
   4. 36-41 years [ ]
   5. 42 years and above [ ]
3. How long have you been working in Saudi Airlines?
   1. Less than 1 year [ ]
   2. 2-3 years [ ]
   3. 4-5 years [ ]
   4. 6-7 years [ ]
   5. 8-10 years [ ]
   6. over 10 years [ ]

Interview Protocol

1. How often do you use in-house teams for marketing and communication services compared to outsourcing since March 2020?
2. What in-house digital capabilities have you built in your organization since March 2020?
3. What strategic marketing services traditionally handled by an outsourced agency have been shifted to in-house teams?
4. How do you leverage capabilities across different departments to support in-house marketing projects?
5. What key performance indicators are used to measure value obtained from in-house teams?
6. How do you measure the quality of output from an in-house agency?
7. Is in-house marketing more cost-effective than external agency? Explain.
8. What funding model is used to finance in-house operations?
9. What challenges are experienced in in-house operations and collaboration with external agencies?
10. What gains have been achieved by moving marketing and communications in-house?
11. How has the physical attendance for C-level executive meetings changed since March 2020?
12. What is the proportion of virtual or hybrid meetings at Saudi Airlines currently? Is this trend likely to continue post COVID-19?