Southwest Airlines is a major US airline founded in 1967 with over 58,000 employees. It has the largest domestic market share and is the world's largest low-cost carrier. The document provides information on Southwest such as its mission, culture, products/prices, service characteristics, competitors, SWOT analysis, target markets, benefits, marketing communications objectives, and integrated marketing communications plan. The plan aims to increase preference for Southwest by 10% over 6 months by emphasizing its no-change fee and bag fee benefits over competitors through an integrated campaign using PR, advertising, promotions, sales, sponsorship, direct marketing, and digital/social media. Progress will be measured through ongoing research with target markets.
2. The Company Information
is
• Founded in 1967 (as Air Southwest)
• A major United States airline headquartered in Dallas,
Texas (24% of total domestic market share)
• The world’s largest low-cost carrier
• Has more than 58,000 employees
• Operating revenues: $21.2 billion in 2017
• Net income: $2.1 billion in 2017
• One million customers annually (2015) Need more recent data
• Daily departures: Over 4,000 flights
References: Southwest investor website and Yahoo finance website 2
4. Company Culture
In order of importance,
Southwest ranks employees first, customers
second, and shareholders third.
"We believe that if we treat our employees
right, they will treat our customers right,
and in turn that results in increased
business and profits that make everyone
happy," the airline explains about its
company culture.
References: Business Insider website 4
6. Product (Service) and Price Range
• Product: flight tickets
• Price range: About $30 –
1,000 (depends on the
destination, season, and
campaign)
References: Southwest website 6
7. Characteristics of The Service
• Transfarency policy
• 1st and 2nd bags are free
• Flight change fee is free
• In-flight snacks and non-alcohol
beverage is free
• All in-flight entertainment is free
(need to download app before
flying)
• Highest quality customer service
with casual and friendly attitude
• Open seating policy
References: Southwest website 7
9. SWOT Analysis
S
• Low-cost fare structure helps maintain passenger volume
• Revenue growth
• Point to point service strategy increase revenues
• Employees-first policy prevents an increase in recruiting costs
• Company culture makes a healthy cycle in employees,
customers, and stakeholders
• On-time performance
• Strong customer services*
• Casual and friendly policy
• No flight change fee*
• No bag fees*
• Social Media presence
References: Mintel database website and D&B Hoovers database website
* Can use them as benefits
9
10. SWOT Analysis
• Dependent on single aircraft and engine supplier could
impact the operations (Boeing 737-800)
• Heavy dependence on passenger revenues could
increase risk
• High Labor costs
W
References: Mintel database website and D&B Hoovers database website 10
11. SWOT Analysis
• Positive outlook for the global tourism industry
• Network expansion initiatives to create a positive impact on
topline performance
• Strategic Initiatives enhance its future growth prospects
O
References: Mintel database website and D&B Hoovers database website 11
12. SWOT Analysis
T
• Labor Cost in the US
• Stringent government regulations likely to affect the
company’s progress
• Intense competition could negatively impact margins
• Fuel costs
• Slowing global economy
• Limited flight offerings
• Many direct and indirect competitors
References: Mintel database website and D&B Hoovers database website 12
13. Market(s)
“Need” is much motivational
“want.”
Your target markets will be
people who feel the need for
those benefits.
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
13
14. What Kind of People choose Southwest?
The People want to
• finish a travel arrangement only using the internet
• avoid paying an additional charge for changing flights
• avoid paying an additional charge for bags
• avoid paying an additional charge for in-flight entertainments
• avoid paying an additional charge for refreshments
• go somewhere punctually
• go somewhere with comfortable feelings
• support ethical and sustainable company
at an affordable price
14
15. Consumer
Lifestyle
Activities
OpinionsInterests
• Always busy
• Travel
• Cultural activity (movies, games,
books, or something related to
culture)
• Concert live, music festival
• Experience-based entertainment
• Rational
• Realistic
• Reasonable
• Cost-effective
• Thrifty, frugal
• Casual
• Willing to follow sustainable
company
• Tech
• Travel
• Comedy
• New things
• Something cutting-edge
Inferred
Consumer Lifestyle
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 15
16. Benefits of Service of Southwest
References: Southwest website
A flight change fee has a big difference.
It can be a big benefit for the target customers. 16
17. Target Customers Based on Psychographic
Characteristics
The People want to
• Change flight frequently
• Use internet friendly airlines
• Have a nice deal with airlines
• support ethical and sustainable company
Needs for the airline company
• FLEXIBILITY
• INTERNET FRIENDLY
• NICE DEAL
• SUSTAINABILITY
NO.1 benefit for the target customers
17
18. Mission
Marketing communications
objectives are measurable and
primarily influenced by the
promotion of 4Ps only.
They are based on awareness, image,
and preference. Determining
promotion objective is researching
with the target markets' current level
of problem (benchmark), then
establish goal and timing.
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
18
20. Message
Creating meaningful and credible communications that your target market(s)
are willing to listen to, understand and believe in order to accomplish the
Mission.
Receiver must be:
1. Willing to listen
2. Able to understand
3. Willing to believe
“BLUEPRINT” for your “message”
1. Related to each selected target market’s “Psychographics”
2. Related to “Mission”: Awareness, Image or Preference
3. Related to “Benefits”
If your mission is "preference," using phrases of “compare to” and “better
than.” At that time, receivers will understand why people should choose your
product compared to competitors' one.
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
20
21. Message
Blueprint step 1: Psychographics
Do you want to
change flight frequently?
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
21
22. Message
Blueprint Step 2: Preference
• Compare to..
• Better than..
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
22
23. Message
Blueprint Step 3: Benefits
No charge for changing flights
> FLEXIBILITY, LOWER PRICE
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
This benefit is COMPETITIVE
23
PREFERENCE!!
24. Methods
It expresses blending MarCom
tools such as Advertising, Public
Relations, Direct Marketing,
Sales Promotion, Personal
Selling, Sponsorship, Cause
Marketing, and
eCommunication.
"Public Relations comes first and
Advertising comes next."
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) and USA Today
24
32. MPR (1)
• Take a survey using independent organization and influential source
• Announce the survey results from independent organization and
influential source
• Announce the survey results using infographic from Southwest
• Provide more information and additional data, and give free flight coupon
(for experiencing Southwest) for influencers such as journalists, bloggers,
social media active people
• Encourage writing blogs, sharing infographic, and comment for them
• Creating influencers’ list for next MPR Opportunity to emphasize
difference with
competitors
32
33. MPR (2)
Take survey to the target audience, and use this data for the MPR. Survey questions are how
customers feel stress when they use airplanes.
Sample questions:
• How do you want to finish a travel arrangement?
A: On the internet
B: With a travel agent
C: Other procedures
• Do you want to change flights freely?
A: Yes B: No C: Doesn’t matter
• Do you want to bring your luggage without an additional charge for bags?
A: Yes B: No
• Do you want to go somewhere with punctuality using an airplane?
A: Yes B: No
• Do you need to go the job interview with airplane?
A: Yes B: No
33
36. Sales Promotion(1)
Holding a contest: “How do you love Southwest compared to others”
Draw and share your favorite Southwest experience compared to others in the
airplane's paper napkin, and post this one with hashtag #Swisno1 to Instagram,
Facebook, and Twitter. Southwest chooses nice one every month, and announced it
on their blog. Southwest gives each winners to $1,000 flight coupon.
Examples:
SW is better than JetBlue
Because of FREE bag charges!!
I love SW compared to
JetBlue because of
FREE flight change fee!
#SWisno1
36
37. • Share paper napkin doodles to social media
• This contest has opportunity to show
customers’ preference for SW compared to
other airlines
• The contest tells the message that how
Southwest has benefits compared to others
Sales Promotion(2)
People love
FREE flight change fee
People love
Southwest because
of FREE bag charges
Coupon
SW is better than JetBlue
Because of FREE bag charges!!
37
39. Do sponsorship for career fairs, and have a pop-up shop for the events. Using the
events and the pop-up shop, Southwest can show own benefits that competitors do
not have for participants.
Personal Selling and Sponsorship(1)
Can explain the benefits
that competitors do not
have
PREFERENCE!! 39
40. Sales Promotion in this methods:
If pop-up shop’s participants join Southwest’s loyalty program (Southwest
Rapid Rewards) there, the company gives coupons to them.
Coupons for the
next job interview
Personal Selling and Sponsorship(2)
40
41. Personal Selling and Sponsorship(3)
• Pop-up shop (Personal Selling) and Sponsorship for the job fair has
opportunity to show Southwest’s benefits for the target audience
directly. If attendees join Southwest loyalty program (Southwest
Rapid Rewards) there, the company gives coupons to them.
• As blending Sales Promotion and eCommunication amplifies
Personal Selling and Sponsorship’s results
41
43. Direct Marketing
After the job fair, using the email list that is gathered in the career fair
and renting an email list of the target customers for direct email
marketing
The email list
that is gathered
in the job fair
The email list that is
rented from the
list company
+
Direct In the direct email,
explaining how Southwest
has benefits compared to
competitors.
PREFERENCE!! 43
45. Cause Marketing
Southwest Airlines donates $100K a year to “ENERGY FUTURES INITIATIVE,” and be a member of
this organization. The company will publish this activities using a whitepaper. Also, as the part of
this organization, Southwest will educate people how important developing the renewal energy
is. https://energyfuturesinitiative.org/
Southwest Airlines consume tons of fuels. Therefore, showing concern about renewal energy is essential for
the company. Also, the target audience of the company is the people who want to have a relationship with an
ethical company, so this cause marketing is effective for the target audience to show Southwest’s stand point
is different with competitors. PREFERENCE!! 45
47. WE SUPPORT
YOUR
JOB-HUNTING
ACTIVITIES
eCommunication
• The official website and the blog site optimization
• Emphasize Southwest’s difference with competitors
on the official website, the blog site, and Social
media (Facebook, Twitter, and Instagram)
47
50. Media
Media is channel of communications
1. Broadcast (TV, radio)
2. Print (magazines, newspaper, yellow
pages, mail, phone book)
3. Electronic (computer, telephone)
4. Outdoor (billboards, wild postings,
vehicles, others)
Making it targeted is important.
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
50
51. Media (1)
Cost-effective media 1
Advertising – SEM
• Objective: Increase preference for Southwest and show Southwest’s benefit that
competitors do not have (P.19 Mission)
• Target audience: The people who want to use flexible airline company (especially changing
ticket frequently). They are internet friendly (P.17 Target customers)
• Frequency: Once a month (6 times)
• Vehicles: Google Adwords
• Expecting result: Increases 10K
51
52. Media (2)
Cost-effective media 2
MPR
• Objective: Increase preference for Southwest and show Southwest’s benefit that
competitors do not have (P.19 Mission)
• Target audience: The people who want to use flexible airline company (especially changing
ticket frequently). They are internet friendly (P.17 Target customers)
• Frequency: Once (provide infographic, and contact with influencers and encourage writing
articles)
• Vehicles: Infographic
• Expecting result: Increases 10K CPC through social media, blog, and website
52
53. Media (3)
Cost-effective media 3
eCommunication
• Objective: Increase preference for Southwest and show Southwest’s benefit that
competitors do not have (P.19 Mission)
• Target audience: The people who want to use flexible airline company (especially changing
ticket frequently). They are internet friendly (P.17 Target customers)
• Frequency: Daily basis
• Vehicles: Official website, social media (Facebook, Twitter, and Instagram)
• Expecting result: Official website increases 10K views, FB page increases 50K fans (Current
FB Page 6M fans), Twitter Increases 10K followers (Current 2.11M followers), and
Instagram increases 50K followers (Current 513K followers)
53
54. Money (Budget)
“Task-method (Bottom-up)” has the
following characteristics:
• Determine what funding is necessary to
accomplish “Mission” using the first five
“M’s”
• If you don’t have adequate funding,
revise your “Mission”
Task-method is very logical and if we
properly targeted the market, the
company can reduce the cost of the IMC
campaign.
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
54
58. Measurement
On-going research with Target Markets
at regular intervals is that determining
progress against "Mission" based on the
benchmark that you decided.
Therefore, using on-going analysis, you
understand what "Methods" are
working best.
If you do not have an achievement
through your plan, you need to revise
the plan if necessary.
References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides)
58
59. • Have to tests before launching the campaign.
• Needs to have tracking study for the progress of preference from benchmark to the goal
during the campaign. It is every month, week, or day (depends on the methods). Also, need to
have changes if the method does not work well. KPIs are following:
Measurement(1)
59
62. References
D and B hoovers database - Southwest (GGU library). (n.d.). Retrieved from https://app.avention.com/company/5acc2227-ca84-3ba5-ab35-
a989c6b507fd#report/company_summary
Golden Gate University - elearning site. (n.d.). Retrieved from https://elearning.ggu.edu/course/view.php?id=10333
Martin, E. (2015, July 29). A major airline says there's something it values more than its customers, and there's a good reason why. Retrieved from
https://www.businessinsider.com/southwest-airlines-puts-employees-first-2015-7
Mintel database - Southwest (GGU library). (n.d.). Retrieved from 0-academic.mintel.com.library.ggu.edu/search/?q=southwest&go=
Nielsen paying premium sustainable products. (2015, October 14). Retrieved from https://www.marketingcharts.com/brand-related-
60166/attachment/nielsen-paying-premium-sustainable-products-oct2015
Scharper, D. (n.d.). The best advertising of all: Creative use of Public Relations. USA Today.
Southwest Airlines. (n.d.). Retrieved from https://www.southwest.com/html/
Southwest Airlines investor booklet. (n.d.). Retrieved from http://www.southwestairlinesinvestorrelations.com/~/media/Files/S/Southwest-IR/events/
Summary for Southwest Airlines Company - Yahoo Finance. (n.d.). Retrieved from https://finance.yahoo.com/quote/LUV?p=LUV
The best and worst US airlines in 2017. (2017, February 27). Retrieved from https://thepointsguy.com/guide/best-and-worst-airlines-2017/
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Notas del editor
Southwest Airlines is one of the LCC in the US, and any domestic airlines can be their competitor. However, in this IMC campaign, I would like to focus on JetBlue as Southwest's direct competitor because their stand point in the airline industry looks similar such as internet friendly ticketing system.
Southwest Airlines offers lots of differences from other airlines, so people who choose Southwest Airlines is they love those characteristics of the product and the company. Therefore, it is highly likely that I should communicate with people using those differences in an IMC campaign, and accomplish a goal.
Inferred Consumer lifestyle that based on the service, characteristics, and Psychographics
Compared to other airlines, Southwest has many benefits. Especially, a flight change fee has a big difference in the amounts of money, so I would like to use this difference in an IMC campaign. It can be a significant benefit for the target customers.
I chose the period of IMC campaign at September 1, 2019 to February 28, 2020. The reason is that because using job fairs in the method of sponsorship.
I do not use competitors’ name such as JetBlue directly for advertisements because Southwest’s usual ads do not have that taste.
Southwest Airlines is the company that omit paper flight tickets company, so they do not have any place to buy a ticket in person. Therefore, blending Personal Selling to the IMC campaign is difficult, so, in this time, I add Southwest airlines’ pop-up shop for the target customers in the job fairs.
Target audience add
I chose SEM for cost-effective media because it is not only cost-effective media but also this one fits with the target customers. The target customers are busy people, so they search many things using Google on the daily basis, so I believe Google Adwords which show comparison with competitors will have powerful results for the campaign.
I chose MPR for cost-effective media because Southwest use an independent organization to take a survey in this MPR. The result of the survey has objectivity because of using an independent organization. My target customers have Rational, Realistic, and Reasonable characteristics based on Psychographics (P.15). Therefore, they will believe this result. In addition, this survey result shows Southwest's positive difference with competitors. Also, using this MPR method, Southwest can create a relationship with influencers, journalists, and bloggers.
I chose eCommunication for cost-effective media because my target customers fit eCommunication. Also, Southwest has internet friendly ticketing system, and the company needs to be strong for SEO. In addition, this method can blend most of the methods effectively such as MPR, SEM, and social media advertising. Therefore, eCommunication can show Southwest's positive benefits clearly compared to others.
Used these websites for this page
Billboard:
https://fitsmallbusiness.com/how-much-does-billboard-advertising-cost/
https://www.bluelinemedia.com/billboard-advertising
Video:
https://www.bluecorona.com/blog/how-much-does-it-cost-to-advertise-youtube
Social Media:
https://www.blog.kreativewebworks.com/how-much-does-digital-marketing-cost/
Twitter:
https://www.linkedin.com/pulse/how-much-does-cost-advertise-facebook-twitter-youtube-mehrotra/
FB:
https://www.bluecorona.com/blog/how-much-facebook-advertising-costs
Instagram:
https://thrivehive.com/how-much-does-it-cost-to-advertise-on-instagram/
SEM:
https://www.wordstream.com/blog/ws/2015/05/21/how-much-does-adwords-cost
Used this website for this page
Sponsorship:
https://careers.usc.edu/employers/career-fairs/general/
List:
https://lists.nextmark.com/market?page=order/online/datacard&id=325860&trk=y&aId=1381
Cause marketing:
https://www.marketwatch.com/press-release/southwest-airlines-announces-1-million-donation-dedicated-to-supporting-communities-2018-09-20
The IMC campaign’s total amount of cost is $459,050. I should use “Task-method (Bottom-up)” to decide the budget, if I do not have adequate funding, I need to revise my “Mission.” Also, I need to revise some methods that are not cost-effective.
