1. BRAND INVENTORY REPORT
July 17, 2012

2. BRAND HISTORY
• Ticketless Travel
• A New Kind of
Airline • Service to FL
1960’s 1990’s begins
• Off the ground • AirTran
• $13 Fare War Acquisition
1970’s 2000’s
• Triple crown
• Lollipops for
1980’s everyone

3. FUN FACTS
3,200
$141.72
1st
92 M
1,309

4. BRAND VALUE PROPOSITION
Fun
&
Friendly
Flying
Value
Customer Low
Fares
Service
Red-­‐bellied
Simplicity
Jets

5. PAST ADVERTISING
• 1970s | “Remember what it was like before Southwest Airlines?”
• 1980s | “Loving you is what we do” & “Love that spirit”
• 1990s | “Just plane smart”
• 2000s | “DING! You are now free to
move about the country”
• Use of humor/cheekiness

6. CURRENT STRATEGY
• Bags Fly Free
• Southwest.com
• Rapid Rewards
• A Better way to Board
• Business Select

7. PRICING
• Low Cost Carrier • No baggage/change
• Bargain air travel fees
Airline Range Stops Notes
Orlando to Las Vegas
$595 (Lo) 1 Mostly Red Eye
Competitor Averages
$904 (Hi) 1 Flights
$528 (Lo) 0
Southwest Airlines
$1104 (Hi) 0
New York, NY to Los Angeles
$407 (Lo) 1 Red Eye; 4+
Competitor Averages
$591 (Hi) 1 hour Layovers
$315 (Lo) 1
Southwest Airlines
$591 (Hi) 1

8. LOCATIONS & HUBS

9. LOCATIONS & HUBS
Puerto Rico
International Northwest
1% 3%
Southwest
West 12%
33%
East
15%
Midwest
Southeast 17%
19%

10. MARKET TRENDS
YOY
Airfare
Price
index
%
change
$/Gallon

11. MARKET OBJECTIVES
• Build on Southwest’s value image by
offering low-cost point-to-point flights with
strong customer service
• Target Audience
– Professionals Ages 25-54
– Medium to high-frequency business travelers
– 30-60 Day Planners
– Household Incomes $75,000 +
– 8+ Trips per year

12. MARKET SHARE

13. MARKET SHARE

14. PERFORMANCE
Opera:ng
Margin
Comparison
25
20
15
10
5
0
2009
Q2
2009
Q3
2009
Q4
2010
Q1
2010
Q2
2010
Q3
2010
Q4
2011
Q1
2011
Q2
2011
Q3
2011
Q4
2012
Q1
Average
JetBlue
Airways
Corp
Southwest
Airlines
Co
Spirit
Airlines
Inc

15. Summary
• Brand positioning
• Social Strategies
• Commitment to employees
• Expanding flight offerings