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Multi-Channel Marketing project for jetBlue.

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  1. 1. Group #5Angela GatianArtem KobanBrianne HenneyCraig EvansDheerai Corepall
  2. 2. Pg 2 Executive SummaryTarget Audience We will focus our advertising on both a primary and secondary market. Our primary audience consists of both men and women ranging in age from 45-64. They travel frequently and are employed with a household income of $100,000 or more. This group is likely to be married with 1-2 children. They live in the top 30 markets in the United States. Our secondary market also consists of both men and women. They are younger with ages ranging from 35-49. They are likely to have young families with households of 4+ people. The secondary market are current jetBlue travelers who reside in the New England area.Objectives For our primary audience, we plan on achieving a reach of 80 and a frequency of 4 during the months of March, April, May, October, and November. During the remaining months, we want a reach of 75 and a frequency of 3. For our secondary market, we plan on achieving a reach of 75 and a frequency of 3 during the months of March, April, May, October, and November.Strategy We will reach our primary audience through the mediums of magazines, targeted sites on the internet, spot television during prime time, spot radio during the morning and evening drives, newspapers, and outdoor advertising. The secondary audience will be reached through targeted sites on the internet, spot radio during the morning and evening drives, magazines, direct mail, and outdoor advertising.
  3. 3. Pg 3 Table of ContentsExecutive Summary…………………………………………………………………...……………2Situation Analysis Industry………………………………………………………………………….……...….4-5 Company………………………………………………………………………………….6-14 Competition…………………………………………………………………………..…15-18Target Audience………………………………………………………………………………. 19-20Strategic Vision……………………………………………………………………………………21Objectives………………………………………………………………………………………....22Strategy…………………………………………………………………………………...……23-32Budget Resolution……………………………………………………………………………..33-38Conclusion……………………………………………………………………………………...…39References……………………………………………………………………………………..40-42
  4. 4. Pg 4 Airline Industry AnalysisSales Market Share The airline industry is a multi-billion dollar industry that Within the airline industry, the leaders are Delta, Southwest, allows customers to travel just about anywhere in the American, and United Airlines. These top four carriers world. In 2009, the airline industry had $374 Billion in make up over 54 percent of the airline market. Delta sales for passenger travel, and $48 Billion in sales for has a market share of 16.2 percent, and Southwest has a cargo transportation. This totals to be $482 Billion in market share of fourteen percent. American Airlines sales11. The industry sales vary from year to year, but has a market share of 13.7 percent, and United Airlines have been increasing over the years. has a market share of 10.2 percent. Jet Blue only has a600 market share of 4.4 percent8.500 Delta400 SouthWest300 Cargo American200 Passenger United100 JetBlue 0 Other 2008 2009 2010
  5. 5. Pg 5 Airline IndustryTrendsThere are many trends occurring throughout the entire airline industry, but perhaps themost important is the use of alternative fuels2. The airline industry is looking atalternative fuels that are sustainable and will leave a smaller carbon footprint. There aresome requirements that the alternative fuels must meet, but the industry is working on acouple of ideas. One of these ideas would be bio-fuels (algae or switch grass). Someairlines have already started to experiment with alternative fuels.Aside from using alternative fuels, another trend in the airline industry, is the rise insafety concern19. Safety is the airline industrys primary concern, and every year, they tryto reduce the number of destroyed planes, and the accident rate. The number of destroyedjets, or hull loss rate, continually decreases over the years. Also, there is a decrease in thenumber accidents over the years.Another trend the airline industry is seeing, is the increase in sales11. Sales keepincreasing over the years, and with the possibility of new, cheaper, alternative fuels, andsafer jets, the sales can continue to increase each year.
  6. 6. Pg 6 jetBlue AnalysisHistory of jetBlue17David Neeleman founded jetBlue in February 1999, under the name “New Air.” The origin of the company dates back to1993, when Neeleman sold his first airline, Morris Air, to Southwest Airlines where he was previously an employee.jetBlue started by following Southwests approach of offering low-cost travel, but wanted to be different by offering high-quality amenities, such as in-flight entertainment, TVs on every seat and Satellite radio. In Neelemans words, jetBluelooked “to bring humanity back to air travel.” This is still a major tagline for the company. jetBlue Airways launched onFebruary 11, 2000 with the inauguration of service between New York Citys John F. Kennedy Airport and FortLauderdale, FL. By December of 2000, jetBlue reported flying over a million passengers and having a revenue for the yearof a $100 million.jetBlue was one of only a few U.S. airlines that made a profit during the sharp decline in airline travel following theSeptember 11, 2001 terrorist attacks. This allowed the company to increase its highly rated employment and inquire newairplanes with bullet proof glass and dead bolted cockpits. In 2002, jetBlue Airways acquired LiveTV, which is theprovider of the airlines in-flight satellite TV entertainment system. In 2004, jetBlue launched its first international servicebetween JFK and Santiago in the Dominican Republic. In February, 2006, jetBlue announced its first quarterly loss ever,but returned to profitability by January, 2007. That same year jetBlue introduces the jetBlue Customer Bill of Rights: thefirst in the airline industry. Dave Barger was also named CEO in 2007. 2008 was a big year for jetBlue because theyannounced even more leg room in planes, which the airlines prides itself on and “Jetting to Green” which introducedcarbon offsetting and an alternative fuel partnership which has continued to save the airlines money.Currently, jetBlue serves over 60 destinations in 22 states including Puerto Rico, Aruba, Mexico and most major US cities.In February of 2010 the company celebrated their 10th anniversary. Neeleman’s words still are true because jetBlue provedthat innovative, high-quality airline service tied with low fares will attract a strong and loyal market.
  7. 7. Pg 7 jetBlueImportant Awards17 •2000 "It" Airline Vanity Fair It List •2002 Best Domestic Airline North American Travel Journalists Association, Five-Star Award •2004 North Americas Leading Budget Airline 11th Annual World Travel Awards •2008 Most Eco-Friendly Zagat Airline Survey •2010 Best Cabin Ambiance Passenger Choice Awards™, Airline Passenger Experience Association (APEX) 2010 #1 Airline Brand •On June 8, 2010, jetBlue ranked Highest in Customer Satisfaction Among Low Cost Carriers in North America by J.D. Power and Associates, a customer satisfaction recognition received for the sixth year in a row •jetBlue is currently ranked as 4-star low-cost carrier by Skytrax
  8. 8. Pg 8 jetBlueSales PriceThe sales of jetBlue are steadily increasing. In The price of a flight, using jetBlue, varies 2008, jetBlue made $3,392 million in sales. depending on many factors. These include: Then in 2009, jetBlue made $3,292 million in where you fly, when you fly, and what class sales. In 2010, jetBlue made $3,779 million in you fly in. The following is an example of sales12. jetBlue and its competitors, flying from New York City to San Diego, on the dates June 1, 2011 and June 8, 2011. Sales, in Millions4000 Carrier Price3000 jetBlue13 $3862000 Other Southwest $465 Passenger Airlines201000 American $349 0 Airlines3 2008 2009 2010 United Airlines22 $371
  9. 9. Pg 9 jetBlueProducts15jetBlue Airways has many products and services that go above and beyond air travel. The company counts on low fares to make its “ledgers jet-black”. The carrier offers one-class service with leather seats, satellite TV from DIRECTV, satellite radio from XM, and movies. They fly to about 60 cities in the US, Mexico, Colombia, and the Caribbean including Puerto Rico, the Bahamas, and the Dominican Republic. Most of its flights arrive or depart from one of five key markets: Boston; Orlando and Fort Lauderdale, Florida; Long Beach, California; and New York. jetBlue has a fleet of about 150 aircrafts consisting mainly of Airbus A320s but also includes Embraer 190s. It owns one subsidiary, in-flight entertainment system developer: LiveTV. “JetPaws” is jetBlues exclusive program designed to provide pets and their owners the tips and tools they need for a smooth trip from start to finish. “Were simply committed to each and every one of our customers, including the four-legged ones.” Unlike most other competitors their first checked bag is free. They offer a variety of boxed meals for a small price, free name brand snacks, and a “Shut-Eye” service for long flights. An element of jetBlue’s 10th anniversary push included a sale of $10 “last minute” flights, sold on May 11 and 12 only, for travel those same days. The company sent out an email blast to its frequent flyers early on Monday, along with postings on Facebook and Twitter, and the tickets were said to be sold out. jetBlue is even working on offering free Wi-Fi for flights beginning in early 2012. Finally, their services include assistance and deals for groups, cargo for businesses, corporate travel, and tickets through travel agents.
  10. 10. Pg 10 jetBlueAdvertising Expenditure10 AdvertisingThe Total advertising expenditures for jetBlue totaled $19,192,500. The majority of this was spent on Internet Magazines and Outdoor advertising. As of right now, jetBlue is not spending any Newspaper money on network, SLN or Radio syndicated television, Sunday or Internet Hispanic magazines, and Network Outdoor radio. Other
  11. 11. Pg 11 jetBluePrevious Campaigns1 One of the most popular jetBlue ad campaigns highlights the frustrations of flying. It was a commercial in 2010. In this clever ad campaign, jetBlue explores some of the most annoying aspects of flying when applied to customers on the ground. For example, this ad where the cab driver tells his passengers that they have to pay an additional $25 for the bag in the trunk. Clearly they aren’t too happy with the scenario. jetBlue has other ads which show a lady buying a can of soda from a sidewalk vendor; only he pours it into a little cup full of ice and tells her she can’t have the can. Another takes place in an elevator with the attendant (Alcos, 2010)3 pushing the buttons for all floors and telling the passengers it’s not a “direct” elevator and this is the most cost-effective way to run it, in case others want to get on at other floors. Yet another is in a cab again, this time with the driver moving his seat back against the passenger’s legs, simulating the tiny amount of leg room we get on airplanes. Their message is clear: “they understand the frustrations of flying and differentiate themselves from other airlines by addressing these”. The tagline to the campaign is: If you wouldn’t take it on the ground, don’t take it in the air.
  12. 12. Pg 12 jetBlue Previous Campaigns Cont.14 The next campaign features the introduction of a newly spoken jetBlue brand promise “You Above All.” This is jetBlue very simply restating their commitment to putting people first and their ongoing mission to bring humanity back to air travel. This took place in October 2011. “You Above All” is designed to show the differences between jetBlue and other airlines. It also observes its crewmembers efforts to provide a superior travel experience. “In so many ways, this exciting new marketing campaign speaks to the core of who we are as a brand,” said Marty St. George, senior vice president of marketing and commercial strategy at jetBlue. “You Above All is authentic. Its transparent. Its understandable. Quite simply, its very jetBlue. As we move into our second decade of service, “You Above All” underscores our commitment to always put people first, to bring humanity back to air travel. That’s a message we can all relate to, whether we take to the skies once a year or once a week.” This campaign is the first that jetBlue has developed in partnership with its new advertising and media agency, Mullen. The campaign includes a series of call-outs explaining jetBlue’s superior service offering, including the following lines: • “Over pack. Underpay. First bag flies for free.” • “Mix business with legroom. The most legroom in coach.” • “Room. With a view. The most legroom in coach and free DIRECTV.” • “Someone has to stand-up for tall people. The most legroom in coach.” (jetBlue Launches New Advertising and Marketing Campaign: You Above All, 2010)
  13. 13. Pg 13 jetBlueShare of Voice10Southwest airlines has the highest share of voice in the airline industry at 32.54%. No other airline even comes close to reaching this number. However, there are several areas of media that are not completely controlled by any one particular company. This would allow jetBlue to have a greater impact with its budget. jetBlue has a share of voice of 3.36% of the market. 23.65% of its total advertising expenditures is going towards the internet. In this category, jetBlue controls 4.74% of the market. Their second highest advertising spending is in the outdoor category. This takes 21.37% of their total advertising expenditures and results in a share of voice of 11.08%. They hold the third highest share of voice in this category. The next highest portion of jetBlue’s advertising budget goes to consumer magazines. Here the share of voice is 2.78%. This may seem low, however, most of the other companies also have low share of voices in this category. American Airlines is dominating consumer magazines with 29.24%. The majority of the rest of jetBlue’s spending comes from local radio (12.99%), local (11.51%) and national (6.13%) newspapers, and national spot radio (6.55%). The shares of voice in these categories are 12.1%, 3.5%, 3.7%, and 11.2% respectively.
  14. 14. jetBlue Pg 14SWOT Weakness18Strengths16 - Only fly to large cities- Low distribution and operating costs create low fares - jetBlue has not yet tried to lift money by selling snacks- High aircraft utilization to help keep fares low during flights- Average age of plane is 4.3 years; they are more fuel - Jet Blue is still new in the industry as compared to otherefficient, better technology Airlines- jetBlue was named the number one U.S. domestic airline - It has been using a single fleetby Coned Nast Traveler magazine’s “Readers’ Choice - Negative Press: for example, a jetBlue pilot threatened toAwards” for the sixth year in a row. harm himself just hours prior to takeoff in 2010- jetBlue continually hiring talented and experienced peopleand also retaining them- Former employees of Southwest Airlines are currently Opportunitiesworking with Jet Blue - Increase market share, already in top 10 in industry- Extra Space, leg room - More international flights- Advanced Technology and Entertainment-They also offer - Increase the number of flightsexciting entertainment. The entertainment includes XM - Add up more services for the passengersRadio which includes over 100 channels at every seat and it -Joint ventures with other Airlines for new market developmentis free. Also there is a TV at every seat with at least 36Direct TV channels. jetBlue also offers movies and free Threatswireless internet.- Unique Services in the Airline Industry, such as name - Increasing fuel pricebrand names for free - Entire industry is sensitive to economic conditions - Terrorism is the major concern after 9/11 Incident - Employee Unions - Strong competition especially from AMR Corporation, Southwest Airlines and United.
  15. 15. Pg 15 Competition AnalysisSales Advertising Expenditures10 American Airlines had a total sales of $22,710 Southwest Airlines, and American Airlines spent million in the year 20104. Southwest more money in advertising than jetBlue, Airlines had a total sales of $12,104 million with $185,673,200 and $54,858,400, in 20106. United Airlines had a total sales of respectively. United Airlines spent $23,229 million5. $4,218,200 in advertising. The majority of Southwest Airlines budget was spent inMarket Share12 network and spot television, with $110,232,100 and $31,731,500 respectively. jetBlues competitors have the majority of the The majority of American Airline’s market share in the airline industry. advertising budget was spent on magazines Southwest Airlines has a market share of 14 and cable television, with $27,577,700 and percent, American Airlines has a market $7,691,300 respectively. Finally, most of share of 13.7 percent, and United Airlines United Airlines budget was spent on internet has a market share of 10.2 percent. The only and local newspaper, with $2,243,400 and company to have a higher market share is 1,251,900 respectively. Delta Airlines, with 16.2 percent.
  16. 16. Pg 16 CompetitionSouthwest Airlines23Products 20 Previous Campaigns20 Southwest is currently offering their customers a chance to Currently Southwest is offering “bags fly free”. Other enter a sweepstakes to win a free trip of their choice. airlines charge when you check in bags but southwest has no handling fee. Also, the company is offering a new InAirtainment, which allows you to download 20 free songs on iTunes also A lot of their previous campaigns are fun innovative offers movies and TV shows and different apps. advertisements that express a unique personality. Southwest also has a rapid rewards program which allows customers to redeem certain rewards with their miles. Strengths: Opportunities: Excellent customer service Improve service, size of airplanes and One Airline with lowest rates accommodations. Free Baggage Pets onboard Early bird check-in Weaknesses: Threats: Limited sizes of airplanes United Airlines and Continental Airlines are a Don’t have many accommodations primary threat to Southwest air, due to their size and accommodations.
  17. 17. Pg 17 CompetitionUnited Airlines21Products22 Previous Campaign22 President Club lounges for travelers flying first class “Work Hard Fly Right” Offer a business MasterCard for companies to gain points Greener Planes mean Bluer Skies Economy Plus allows customers more room and easier travel “Turns out our first class, is first class” All previous campaigns are holding their standards higher than industry standards Strengths: Opportunities: Fuel burns reductions strategy Fuel efficiency programs. Many alliance partners Buy other airlines. Weaknesses: Threats: Unstable costs and expenditures Loosing customers. Dropping revenues. Loosing investors interest in a company
  18. 18. Pg 18 CompetitionAmerican Airlines7Products3 Previous Campaigns3 • Fly to different countries and get a “Global Scope”Economy•Overhead screens showing a variety of current movie releases,as well as news, great documentaries and comedy. “Picture Yourself Winning 250,000 AAdvantage Miles in ••Complimentary headsets. American Airlines Spot, Snap and Send Sweepstakes”. Allows•Choice of main course and beverage service. New York residents to take a picture of an American airlines•Sliding tray table that gives option to set a laptop, beverage or ad and send it in to the company for a chance to win the abovebook in the most convenient position. stated prize.•Slimline profile for even more legroom and controls forlumbar support, footrest and six way leather headrest so you Advertisements on taxi tops, buses, phone kiosks, bus shelters, •can mould the seat the way you want. urban panels and newsstands are the ones that should be photographed and sent in. Strengths: Opportunities: Worlds fourth largest in passenger miles transported. Favorable wage negotiation. Carries more passengers between the US and Latin A. Travel increasing in general Strong in transcontinental markets Low interest rates Government backed loans Weaknesses: Loosing value over quantity. Threats: Financial position is unstable and cost structure is week. Increased air travel inconvenience. Large divisions create week communication between each Business travel declining. other Availability of pricing information
  19. 19. Pg 19 Target AudiencePrimary AudienceAfter using the Media Flight Plan data, we’ve narrowed the demographic of our target audience to men and women, ages 45-64. We choose to target high personal or vacation travelers, for example three or more trips per year. These people are likely to be employed and have a household income of $100,000 or more. They are slightly more likely to be married and have 1-2 children. Our target audience lives in the cities that jetBlue flies to, in the top 30 markets in the United States.Our target market has a size of about 24,400,000 people9.We chose to target to both men and women, because it does not matter who flies on jetBlues planes.We chose the age range of 45-54 and 55-64 because these two age ranges both had high indexes, of 112 and 120 respectively. Also, our advertisements will reach both age groups, so we might as well target them.We chose to target employed individuals, because we thought that people who are employed are the most likely to travel leisurely. Also, employed people had an above average index of 114.Our target market has an annual income of $100,000+ because these people are the most likely to have disposable income which will allow them to travel more often by plane. Additionally, people with $100,000+ in an annual income have an index of 200. Our target audience includes married people with 1-2 kids. Married people are likely to travel with their families when they go on vacation. So this will create more sales for jetBlue.We will target the cities that jetBlue flies in, in the top 30 markets in the United States. We chose to do this because we feel like we will reach the largest number of people this way.About 70 percent of our budget will be spend on the primary target audience.
  20. 20. Pg 20 Target AudienceSecondary Audience Our secondary audience was narrowed down to men and women, ages 35-49. We choose to target current jetBlue travelers. These people are likely to be younger families with a house of 4+. Most of them live in the New England area. Our target audience consists of 7,400,000 people9 For our secondary target audience, we decided to target current jetBlue users. We decided this because we want our current customers to keep coming back. This will help to sustain the brand, and targeting new customers will help to grow the brand. We chose to target to both men and women, because both had an above average index. We are targeting people between the ages of 35-44 because they make up most of jetBlues current fliers. They have an index of 107. This age group is more likely to be business people, who are flying for business, without any children. Again, we want the secondary target audience to have over $100,000 in an annual income because then they will have the most disposable income. People with over $100,000 in an annual income have an index of 196. Finally, we decided to target the New England area because that is where most of the current jetBlue customers live. They have an index of approximately 300. About 30 percent of our budget will be spent on the secondary target audience.
  21. 21. Pg 21 Strategic VisionWe want jetBlue to become The United States Airline of Choice.We believe that jetBlue is becoming a highly renowned airline where people can enjoy celebrated customer service through high quality services. The mission of our multi-channel marketing campaign will be to increase the awareness of jetBlue, among its top markets. In doing this, we will use various types of media to target different people throughout their daily routines, especially heavy vacation travelers and current jetBlue users. Our main goal is to increase the awareness of jetBlue, and keeping the current customers coming back.
  22. 22. Pg 22 ObjectivesTarget Market Secondary MarketFor March, April, May, October, and November, we want a For March, April, May, October, and November, we want reach of 80, and a frequency of 4. to achieve a reach of 75, and a frequency of 3. We chose these months because these are the months We chose these months, because they are the months leading up to the busy travel seasons, and people leading up to the busy travel seasons. People are more likely to buy their plane tickets then. are likely to buy their tickets in these months, so we want to remind them about jetBlueFor the months of January, February, June, July, August, during this time. September, and December, we want a reach of 75, and a frequency of 3. These objectives will keep jetBlue fresh in the minds of the current customers. We chose these months because we wanted a continuous advertising schedule but we felt that a high level of advertising was not necessary. We chose all of these objectives because we believe that We feel that these established objectives are important for they are higher than jetBlue’s previous campaign, and the brand because they will help to increase the number of we are aiming for improvement jetBlue users. The media choices that we use will hit many people, in several different ways, multiple times. This will hopefully put jetBlue into their minds the next time they have to purchase an airline ticket.
  23. 23. Pg 23 Media StrategyOur strategy will be to achieve the desired objectives by carefully segmenting the primary and secondary target audience.We will target the primary audience through magazines, targeted sites on the internet, spot television during prime time, spot radio during the morning and evening drives, newspapers, and outdoor advertising.We will target the secondary audience through targeted sites on the internet, spot radio during the morning and evening drives, magazines, direct mail, and outdoor advertising.
  24. 24. Pg 24 Strategy for Target MarketMagazines We chose magazines, because our target audience are people who travel frequently and have a higher income, and are thus more likely to look at magazines. Magazines have a long life span and a high pass-along readership, so the ads will hit multiple people, several times. jetBlue only has a share of voice in magazines, of about 3 percent, while American Airlines has a share of voice of about 30 percent10. This will allow jetBlue to increase their share of voice in magazines.Internet We chose to advertise on targeted sites on the internet, because it is fastest growing media channel. The internet will allow jetBlue to reach a massive amount of people, anytime they want. Also, they will be able to specifically pick what types of people they want to target. Finally, through tracking, we can see what sites heavy travelers are visiting the most, and advertise on those sites to reach our target market. Even though the internet was a rather expensive choice, the exposure rate is rather high. Also, Continental Airlines has the highest share of voice for the internet. If jetBlue were to advertise more on the internet, they could increase their share of voice, and potentially reach a larger market.Spot Television – Prime Time We decided against Network Television because jetBlue primarily flies from major cities within the United States, so advertising in Network television would not be a smart use of their money. Spot television will allow us to hit the major markets where our target audience lives. Spot television, during prime time, will give us a large reach because most people watch television during prime time. Also, our target audience consists of high travelers and they are more likely to watch television during prime time because they work during the day and travel frequently. Prime time is also a wise choice for jetBlue, because they will reach people who might not travel as frequently as their target audience, but could still be potential customers and travel in the future. Southwest Airlines, and American Airlines take up about 70 percent of the share of voice and jetBlue only has a 0.17 percent10.
  25. 25. Pg 25 Strategy for Target MarketSpot Radio – Morning and Evening Drive We chose to do spot radio for the same reasons we chose spot television. We only want to hit specific markets, since jetBlue only travels from major cities. Also, radio has the ability to target select audiences. Our audience, people ages 35 – 49 are likely to listen to the same type of radio stations, so jetBlue can advertise on those types of stations. Also, radio advertising is relatively inexpensive and has a high frequency. We chose the morning and evening drives, while people are commuting to work because these are the highest dayparts and they will hit the most amount of people. Aside of jetBlue and Southwest Airlines, not many companies advertise often on the Radio, therefore, jetBlue would not have a lot of competition.Newspapers We chose to advertise in Newspapers because newspapers have a large reach. The newspaper expense is high, for all of the markets, but they also reach a lot of people. Newspapers are known for being credible and comprehensive, so that might make the readers perceive jetBlue in the same way. We are only advertising in the newspapers in March, April, May, October and November, because Newspapers have a short lifespan and we want to advertise in the months leading up to the busy seasons. In doing this, it will keep jetBlue fresh in the minds of travelers, and decrease the amount of wasted advertisements.Outdoor We chose to advertise outdoor because it is the lowest cost, for each exposure, for any medium. Since our target market is high travelers, they are more likely to drive past billboards, and other outdoor advertisements. Outdoor advertising is never turned off, therefore it allows people to see it anytime, and creates a high frequency during its lifespan. Currently, many of the airline companies advertise outdoor, along with jetBlue. This will make it hard to increase jetBlues share of voice, but if they continue to advertise outdoor, they will still be able to compete with the rest of the airlines.We did not use direct mail, network radio, network cable, network TV, keyword/searches and sponsorships on the internet, and national newspapers. We did not use these media because they are rather expensive, do not hit our target audience very well, and generate more waste.
  26. 26. Pg 26 Strategy for Target Market Primary AudienceFor the primary market, we chose the Magizines top 30 markets in the United States, and then picked the ones that jetBlue 9% Internet flies to. We chose the following 21 10% 19% Spot Tv- Prime markets because it will allow us to 34% reach a large number of people. Spot Radio- Morning drive Spot Radio- Evening 9% drive 9% 10% Newspapers Outdoor Markets: Baltimore, MD Houston, TX Pittsburgh, PA Washington, DC Boston, MA Las Angeles, CA Portland, OR Tampa, FL Charlotte, NC Miami, FL Raleigh, NC Phoenix, AR Chicago, IL New York, NY Sacramento, CA Hartford, CT Denver, CO Orlando, FL San Francisco, CA San Diego, CA Seattle, WA
  27. 27. Pg 27 Target Audience Ad ChoicesMagazines Internet – Targeted SitesWe choose magazines to run the entire year nationally with We choose targeted sites on the internet, which are banner ads, half-page black and white inserts. We choose 65 units to to run all twelve months but to advertise, more in the be displayed in January, February, June, July, August, build up to our busy season. This was opposite of September, and December. For the remaining months, magazines, with 100 units in March, April, May, October, March, April, May, October, and November ,we choose and November. For the months of the busy season, 50. This is for a total of 705 costing $4,951,200. We did January, February, June, July, August, September, and more magazine advertising during our busy travel seasons December we did 36. We feel that these numbers were and we felt that by doing half-page black and white ads sufficient because all of our main low price airlines that our ads would be visible within the magazines and by competitors advertise heavily on the internet. We decided not doing it in color which costs more we were able to that banner ads were the best because they are visually stay within our budget. Many other airlines advertise stimulating and reach a high number of people. The within magazines so we felt that the advertising we internet is the fastest growing advertising expenditure so choose will help us compete with our competitors. we wanted to further establish our brand as an up-to-date brand that can cater to those on the move. Also, we advertised more in the months leading up to the busy season because most people buy online tickets ahead ofSpot Television – Prime Time time so we wanted to keep our message out there.We choose prime time spot television to run 15 second ads for a total of 26 during January, February, June, July, August, September, and December. We also choose 50 to run for the remaining months. Our strategy centered around the fact that most people travel for leisure during the months previously stated, with most of our advertising done in March, April, May, October, and November because most people plan vacations ahead of time. We think spot television is the best for our brand because it promotes the continuity of our brand by reaching more people which we think can be instituted within our advertisement. Our totals were 432 for $5,370,600. Even though that Southwest dominates television we feel that we can attempt to strengthen our campaign with the power of video.
  28. 28. Pg 28 Target Audience Ad ChoicesSpot Radio-Morning/Evening Drive Newspapers We choose to advertise 30 second spot advertisements during We choose to do half-page black and white ads in the morning and afternoon drive times. We felt that 30 newspaper. We did this type of advertising for only seconds for the advertisements were the right way to go March, April, May, October, and November because because they are not that expensive and can be heard this was a very expensive type of ad and one of our often because people usually are in the car the same goals was to stay $100,000 within budget. Even though time everyday. For these separate dayparts, we choose newspapers are becoming a “thing of the past” we felt the same numbers with January, February, June, July, that our heavy travelers would be exposed to them August, September, and December being 50 for both while on the go. The GRPS are 233 with a cost of and March, April, May, October, and November with $5,172,400. 100. The totals were 850 for $4,469,300 and 850 $4,504,200 respectively. Historically, jetBlue has always advertised some of the budget into national spot Outdoor radio. We felt that it was important to have a fresh innovative marketing strategy that still celebrated the We choose outdoor advertising also. This is 25 shows a company’s past. month. jetBlue’s second highest advertising investment sector was always outdoor so we wanted to keep it the same because we thought that it was a very effective advertising method. We did 680 every month for a total of 8161 GRPs and a cost of $10,231,300.
  29. 29. Pg 29 Strategy for Secondary MarketMagazines Magazines have a higher lifespan than newspapers, so they have the opportunity to reach more people. Also, we can target specific types of people, through the different categories of magazines.Internet The internet allows jetBlue to reach a broad audience. People between the ages of 35-44 are likely to use the internet daily. It will be relatively easy to target specific sites that they travel to each day.Spot Radio Spot radio allows us to target specific markets that we want to reach. Also, we will be able to reach our secondary target audience while they are driving to and from work. This would be a good time to reach them because they will possibly be listening to the radio, and will be more focused on it since they could be driving alone.Outdoor An eye catching billboard will stay in the minds of anyone who passes it. If it stays in the minds of our target audience, they might be more likely to think of jetBlue the next time they purchase a plane ticket.Direct Mail Direct mail will just serve as a reminder to the current jetBlue customers, incase there were anyone who was missed by the previous advertisements.We did not decide to use any type of television, network radio, newspapers, or keyword searches and sponsorships on the internet. We decided that these media choices would not target our audience very well.
  30. 30. Pg 30 Strategy for Secondary MarketWe chose these markets because Secondary the New England area consists Magazines of the people who most 5% 5% Internet frequently travel with jetBlue. 14% 4% All of the overlap will allow Spot Radio- 4% Morning us to ensure that we reach the 68% Spot Radio- majority of our target market. Evening Outdoor Direct Mail Markets: Boston, MA New York, NY Washington, DC Baltimore, MD Portland, ME
  31. 31. Pg 31 Secondary Audience Ad ChoicesMagazines-General Interest: We choose to run black and white half-page ads. This is for the New England area. To use the budget as economically as possible we only advertised in March, April, May, October, and November. Our GRPS totaled 150 and our cost was $1,062,900.Internet-Targeted Sites: We ran the banner type of targeted sites for the same months as magazines and got total GRPS of 655 and cost of $15,490,800. The internet is widely used media outlet, therefore the majority of our budget and strategy for our secondary audience is through the internet.Spot Radio: Morning Drive/Afternoon Drive: We had 30 second ads which we thought would be effective. Our totals were GRPs of 385 and a total cost of $822,400; GRPs of 385 and a total cost of $815,000 respectively. Radio can be effective because our current users know our brand so they will listen more when they hear an advertisement for jetBlue.Outdoor: We wanted to advertise outdoor to our secondary audience because most people normally drive similar patterns and the more times our ads are seen the more recognizable our brand is. The totals were GRPS of 3420 and a total cost of $1,198,600.Direct Mail: We choose direct mail because it can be very effective and generally gets a high response especially when a customer has already used the product. We choose ten letters a month in the months leading up to the busy season totaling GRPs of 50 and Costing $3,112,100.
  32. 32. Pg 32 SchedulingPrimary Target Audience We will reach our primary target market through the use of a pulsing schedule. Constant advertising will be occurring throughout the entire year, with the exception of newspapers, with periods of heavier advertising during the months of March, April, May, October, and November.Secondary Target Audience Advertising to our secondary market will occur through a flighting schedule followed by periods of hiatus. March, April, May, October, and November are the only months in which we will be advertising.
  33. 33. Pg 33Primary Audience Media Schedule Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Magazines 456.5 456.5 351.2 351.2 351.2 456.5 456.5 456.5 456.5 351.2 351.2 456.5 Internet 851.4 851.4 2365.0 2365.0 2365.0 851.4 851.4 851.4 851.4 2365.0 2365.0 851.4 Spot TV- Prime 323.2 323.2 621.6 621.6 621.6 323.2 323.2 323.2 323.2 621.6 621.6 323.2 Spot Radio- 262.9 262.9 525.8 525.8 525.8 262.9 262.9 262.9 262.9 525.8 525.8 262.9 Morning Spot Radio - Evening 265.0 265.0 529.9 529.9 529.9 265.0 265.0 265.0 265.0 529.9 529.9 265.0 Newspapers 1034.5 1034.5 1034.5 1034.5 1034.5 Outdoor 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 Total 3011.6 3011.6 6280.6 6280.6 6280.6 3011.6 3011.6 3011.6 3011.6 6280.6 6280.6 3011.6 All Numbers in $(000)
  34. 34. Pg 34Primary Audience Budget Month National only: Spot only: Total: Jan $1,307.90 $1,703.70 $3,011.60 Feb $1,307.90 $1,703.70 $3,011.60 Mar $2,716.20 $3,564.40 $6,280.50 Apr $2,716.20 $3,564.40 $6,280.50 May $2,716.20 $3,564.40 $6,280.50 Jun $1,307.90 $1,703.70 $3,011.60 Jul $1,307.90 $1,703.70 $3,011.60 Aug $1,307.90 $1,703.70 $3,011.60 Sep $1,307.90 $1,703.70 $3,011.60 Oct $2,716.20 $3,564.40 $6,280.50 Nov $2,716.20 $3,564.40 $6,280.50 Dec $1,307.90 $3,564.40 $3,011.50 $52,483.60
  35. 35. Pg 35Secondary Audience Media Schedule Jan Feb Mar Apr May June July Aug Sep Oct Nov DecMagazines 212.6 212.6 212.6 212.6 212.6Internet 3098.2 3098.2 3098.2 3098.2 3098.2Spot Radio- 164.5 164.5 164.5 164.5 164.5MorningSpot Radio -Evening 163.0 163.0 163.0 163.0 163.0Direct Mail 239.7 239.7 239.7 239.7 239.7Outdoor 622.4 622.4 622.4 622.4 622.4Total 4500.4 4500.4 4500.4 4500.4 4500.4 Numbers in $(000)
  36. 36. Pg 36Secondary Market BudgetMonth National only: Spot only: Total:Mar $3,310.70 $1,189.60 $4,500.30Apr $3,310.70 $1,189.60 $4,500.30May $3,310.70 $1,189.60 $4,500.30Oct $3,310.70 $1,189.60 $4,500.30Nov $3,310.70 $1,189.60 $4,500.30 $22,501.50
  37. 37. Pg 37 BudgetThe numbers expressed in the flow charts are the amount budgeted for each medium, each month. The internet, spot television during prime time, and newspapers will help to increase the reach of our media mix. These media will reach the majority of our audience. The outdoor advertising, magazines, and spot radio advertising will increase the frequency of our media mix. They will target our audience, during their daily routine, multiple times.The budget spent for the primary market was $52,483,600 and the budget spent for the secondary market was $22,501,500. The total amount spent was $74,985,100 out of the allowable $75,000,000.
  38. 38. Pg 38 CPP and CPMCPP – Primary Target Audience Our cost for our primary market was $52,483,000. Our media schedule gave us the total GRP of 3594. This means that our cost per rating point is $14,602.95CPM – Primary Target Audience Our cost was again, $52,483,000. The delivered audience was 24,400,000 people. This means that the cost per thousand is $2,150.94CPP – Secondary Target Audience The cost were $22,501,700. The total GRPs were 1625. This gives us a cost per rating point of $13,847.20CPM – Secondary Target Audience The cost was $22,501,700. The delivered audience was 7,400,000 people. This results in a cost per thousand of $3,040.77.
  39. 39. Pg 39 ConclusionOur proposed multi-channel strategy will increase the number of jetBlue customers, and keep the current jetBlue customers coming back. Our goals will be reached, with an excess in reach and frequency. Our reach for the primary target, during the busy months, is 83.9. Our frequency for the primary target, during the busy months, is 4.8 times. Both of these exceeded our goals of 80 and 4, respectively. Our reach for the primary target, during the non-busy months, is 76.4. Our frequency for the non- busy months is 3 times. Both of these exceed our goals of 75 and 3 respectively. Our reach for our secondary market is 77.1, and our frequency for our secondary market is 4.2 times. Both of these exceed our goals of 75 and 3 respectively.We hope you enjoyed our strategy, and we look forward to working with you in the future.
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