Abstract

Hong Kong Tramways (HKT), established in 1904, is the world’s largest double-decker tram fleet in operation today. Having witnessed the development of Hong Kong for over 100 years, HKT is an icon of Hong Kong. This case describes how Hong Kong Tramways changed its brand image from just a heritage brand to a lifestyle brand, using its heritage as the brand’s top attribute / value. 

HKT’s revenue traditionally came from the tram ridership and advertisements. With the declining tram ridership, HKT decided to rejuvenate its brand to make it appealing to the younger generation. By doing that, they were also investing in their advertising business model, because more advertisers would be interested in using a younger, more engaging, and up-to-date advertising platform. HKT started a rebranding process in 2017 from a heritage brand and HK’s icon of the greenest, most affordable, and most joyful transport mode to a lifestyle brand featured as “old age, young heart.” Due to a restrictive budget, HKT decided to run the rebranding through a brand extension/brand collaboration strategy by carefully curating partner brands and looking for local brands that shared the same brand values and resonated with their target Hong Kong consumers. The rebranding has helped HKT to stay relevant for the younger generation, and yet is consistent with its brand history and business model.

Learning Objectives

By describing the process Hong Kong Tramways used to reposition itself as a lifestyle brand, this case helps students to understand the concepts behind brand strategy management, including brand extension, strategic partnerships, and innovation. After studying the case, students will be able to discuss different branding strategies for a service brand, justify why and when rebranding will be profitable and strategically meaningful, and make recommendations on brand strategy and tactics.