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School Project (British Columbia Institute of Technology)

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  • 1. Jack Daniel’s – Set J MKTG 2200, May 2014 ANNIVERSARY PROJECT Case Study
  • 2. INTRODUCTION 1
  • 3. INTRODUCTION WestJet“By 2016, WestJet will be one of the five most successful international airlines in the world providing...guests with a friendly caring experience that will change air travel forever.” (WestJet’s Vision. WestJet, 2014)
  • 4. INTRODUCTION WestJet 2014 FIRST DEPARTURE FIRST TRANSATLANTIC FLIGHT SERVING OVER 100 DESTINATIONS (WestJet, 2014) OVER 100 AIRCRAFTS 1996 $270millionnet earnings in 2013 10,000 employees (WestJet, 2013)
  • 5. Marketing Objectives Situational Analysis Stakeholders SWOT Analysis Competitive Analysis Strategic Decisions Communication Objectives Target Audience Positioning Strategy Marketing Mix 3Ps – Place, Product, Price Past Promotions Marketing Communication Strategy Promotional Mix Message Design & Delivery Budget Evaluation Q&A AGENDA WestJet
  • 6. MARKETING OBJECTIVES 2
  • 7. MARKETING OBJECTIVES WestJet million REVENUE$121   Average percentage of seats filled on WestJet flight 2013 2016 85.0%81.7%
  • 8. SITUATIONAL ANALYSIS 3
  • 9. STAKEHOLDERS
  • 10. PRIMARY STAKEHOLDERS WestJet 42% MALE   10,000non-unionized employees 58% FEMALE   (WestJet, 2012) EMPLOYEES
  • 11. PRIMARY STAKEHOLDERS WestJet DOMESTIC CUSTOMERS TRANS-BORDER FLIGHTS within North America CUSTOMERS 36% 13% (CAPA, 2013)
  • 12. PRIMARY STAKEHOLDERS WestJet ON-BOARD AIRLINE services suppliers SUPPLIERS Ø  Boeing 737 series Ø  Bombardier Q400s (WestJet, 2014) FLEET SUPPLIERS
  • 13. PRIMARY STAKEHOLDERS WestJet Ø  SELF-GOVERNING COMMITTEES (WestJet, 2012) 1.  CGN Committee 2.  SH&E Committee 3.  People and Compensation Committee GOVERNMENT Ø  INTERNATIONAL AIR AUTHORITY
  • 14. COMMUNITIES supports national charities6   supports employees who donate over hours of time on volunteer projects 40 builds homes for families living in poverty (WestJet, 2014) 5   homes were built in 2013 PRIMARY STAKEHOLDERS WestJet
  • 15. SECONDARY STAKEHOLDERS WestJet CANADIAN ASSOCIATION OF AIRLINE PASSENGERS SPECIAL INTEREST GROUPS PUBLIC INTEREST ADVOCACY CENTRE  
  • 16. SECONDARY STAKEHOLDERS WestJet WESTJET TRAVEL AGENT SIGN-IN TRAVEL AGENCIES PARTNERED WITH (WestJet, 2012) (Johnson, 2014)
  • 17. SWOT ANALYSIS
  • 18. Ø  LARGE AND GROWING FLEET Ø  EXTENSIVE SOCIAL MEDIA PRESENCE Ø  ADVANCEMENTS IN IN-FLIGHT SERVICES 512,000 FACEBOOKLIKES 35,000 YouTubeSUBSCRIBERS 315,000 TWITTERFOLLOWERS 21,000 INSTAGRAMFOLLOWERS SWOT ANALYSIS WestJet STRENGTHS
  • 19. Ø  DEPENDENCE ON BOEING AND BOMBARDIER as the only suppliers Ø  FLEET LIMITATIONS WestJet’s current fleet is … only able to fly between Maritime provinces and Dublin, Ireland (Deveau, 2014) SWOT ANALYSIS WestJet WEAKNESSES
  • 20. Ø  GROWING TOURISM INDUSTRY Ø  POSITIVE OUTLOOK ON CANADIAN AIRLINE INDUSTRY The tourism transportation market is expected to reach $ 42.7billion by 2017 (Euromonitor International, 2013) SWOT ANALYSIS WestJet OPPORTUNITIES 12.9   $ billion19.7  $ billion International Air Transport Association forecasts increase in profit 2013 2014 (Heilprin, 2013)(Euromonitor International, 2013) +7%   Passenger traffic 2017
  • 21. Ø  GROWING DOMESTIC MARKET SHARE (Jang, 2012) SWOT ANALYSIS WestJet OPPORTUNITIES 7%   36%   2000 2011 2015 45%  
  • 22. SWOT ANALYSIS WestJet THREATS Ø  GOVERNMENT REGULATIONS Ø  COMPETITION Ø  FALLING CANADIAN DOLLAR   Every 1-cent drop in Canadian dollar knocks $14-million from operating income for WestJet (Keenan, 2014)  
  • 23. COMPETITIVE ANALYSIS
  • 24. COMPETITIVE ANALYSIS WestJet $ 12.1  billion operating revenues 82.7% load factor 56% domestic market share $ 3.4  billion operating revenues 82.8% load factor 36% domestic market share
  • 25. COMPETITIVE ANALYSIS WestJet On-time landing rate is (CBC, 2013) 60.9%   On-time landing rate is (CBC, 2013) 70.0%  
  • 26. STRATEGIC DECISIONS 4
  • 27. COMMUNICATION OBJECTIVES
  • 28. 70% PREFERENCE/LIKING 7% ACTION 90% AWARENESS COMMUNICATION OBJECTIVESWestJet
  • 29. TARGET AUDIENCE
  • 30. TARGET AUDIENCE WestJet BRITISH     COLUMBIA   ALBERTA   ONTARIO   QUEBEC   Provinces with highest Millennial population (Statistics Canada, 2013) 0.9M   0.8M   GEOGRAPHIC 2.9M   1.6M  
  • 31. TARGET AUDIENCE WestJet GEOGRAPHIC BRITISH     COLUMBIA   QUEBEC   ALBERTA   ONTARIO   Airports with the highest percentage of domestic passenger traffic (Statistics Canada, 2013)
  • 32. TARGET AUDIENCE WestJet BRITISH     COLUMBIA   ALBERTA   ONTARIO   QUEBEC   Provinces with the highest Millennial population (Statistics Canada, 2013) 0.9M   0.8M   GEOGRAPHIC 2.9M   1.6M   6.2M   Total  Millennial   popula=on  in     4  provinces   = all other provinces1.0M  
  • 33. TARGET AUDIENCE WestJet BEHAVIOURAL AVERAGE NUMBER OF BUSINESS TRIPS PER YEAR 5   7.8   AVERAGE NUMBER OF LEISURE TRIPS PER YEAR (Expedia, 2013)
  • 34. TARGET AUDIENCE WestJet BEHAVIOURAL MILLENNIALS     GEN X 20% 32% 9% 12% TECHNOLOGY USAGE WHEN BOOKING (Expedia, 2013)
  • 35. POSITIONING STRATEGY
  • 36. POSITIONING STRATEGY WestJet Low-costcarrier Limited service and diversity across Canada Full service w/diverse destinations across Canada High-costcarrier
  • 37. MARKETING MIX 5
  • 38. 3Ps PLACE, PRODUCT, PRICE
  • 39. Route Map (WestJet, 2014) 3Ps PLACE, PRODUCT, PRICE WestJet PLACE & DESTINATIONS
  • 40. 3Ps PLACE, PRODUCT, PRICE WestJet PRICE A ONE-WEEK ROUND TRIP FLIGHT, BOOKED ONE-WEEK IN ADVANCE, RANGES FROM $922 TO $1555 (WestJet, 2014)  
  • 41. PAST PROMOTIONS
  • 42. PAST PROMOTIONS WestJet million views on YouTube35   Christmas Miracle uploaded YouTube videos250+ Owners Care
  • 43. MARKETING COMMUNICATION STRATEGY 6
  • 44. PROMOTIONAL MIX
  • 45. PROMOTIONAL MIX WestJet STRENGTHS Ø  USERS OF PUBLIC TRANSPORTATION Millennials consider public transit the most preferred modes of transportation, as it allows them to multitask and socialize while traveling (APTA, 2012) Ø  MILLENNIALS ARE VISUAL LEARNERS Advertising allows the opportunity to create visually aesthetic advertisements (Millennial Marketing, 2014) PRIMARY TOOLS. ADVERTISING
  • 46. PROMOTIONAL MIX WestJet PRIMARY TOOLS. INTERNET MARKETING STRENGTHS Ø  COMPETITIVE EDGE ON SOCIAL MEDIA     Ø  TECH SAVVY 83% have smartphones 98%   Millennials use the Internet (MTM, 2013) 75% - like, retweet, or share content (The Case Foundation, 2013)
  • 47. PROMOTIONAL MIX WestJet PRIMARY TOOLS. INTERNET MARKETING LIMITATIONS Ø  HIGH USAGE OF ADBLOCK AdBlock users are Millennials (AdBlock Plus, 2011) 32%
  • 48. PROMOTIONAL MIX WestJet PRIMARY TOOLS. PUBLIC RELATIONS STRENGTHS Ø  TRUSTING OF USER-GENERATED AND THIRD- PARTY CONTENT (Bazaar, 2012) LIMITATIONS Ø  RISK OF LOW ROI ON PUBLIC RELATIONS EXPENSES (Know This, n.d.)
  • 49. MESSAGE DESIGN & DELIVERY 7
  • 50. THEME
  • 51. MESSAGE DESIGN WestJet 2   male Canadian Millennials 20  locations 2016  year THEME DISCOVER WITHIN
  • 52. BROADCAST
  • 53. MESSAGE DESIGN WestJet 1introduces the campaign and the two Millennials commercial 2highlights WestJet’s diverse Canadian destinations commercial 3will be reflective of the Millennials’ experience commercial
  • 54. MESSAGE VEHICLES     WestJet 120spots 97.1% average weekly reach 23.3million general viewers during primetime from Sunday to Thursday March, May, October (CTV, 2013)
  • 55. PRINT
  • 56. MESSAGE VEHICLES     WestJet once a week March, April, May Ø  HALF-PAGE, COLOURED Ø  FULL-PAGE, COLOURED once a week March
  • 57. OUT-OF-HOME
  • 58. MESSAGE VEHICLES     WestJet Ø  MAIN TRANSIT HUBS AND ARTERIAL ROUTES OF VANCOUVER EDMONTON CALGARY MONTREAL TORONTO March, April, May September, October, November
  • 59. PUBLIC RELATIONS
  • 60. MESSAGE DESIGN & VEHICLES  WestJet Ø  CHARITABLE ACTIVITY within 3communities Ø  20TH ANNIVERSARY CELEBRATION Vancouver, Toronto, and Montreal
  • 61. DIRECT MARKETING
  • 62. MESSAGE DESIGN & VEHICLES  WestJet January 1st, 2016
  • 63. BUDGET 8
  • 64. BUDGET WestJet TOTAL COST FOR THE DISCOVER WITHIN ANNIVERSARY CAMPAIGN NEWSPAPER 41% SALES PROMOTION TRANSIT INTERNET MARKETING PUBLIC RELATIONS 3% 8% 27% 15% 6% TELEVISION $4,915,000
  • 65. Thank You!

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