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Marketing presentation- Southwest airline
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Marketing presentation- Southwest airline

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  • Ya might want to correct the spelling of 'Buiness' on slide 15.
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  • 1. MarketingPresentation
  • 2. • Introduction Part 1: about SW Case airlines • Situations of study SW airlines Part 2:Question& Answer.
  • 3. Company’s slogan “A Symbol of Freedom’’ The most successful US airlines • The company set up by1967 Herb Kelleher • Southwest airlines was the nation’s best performing1972-2002 stock
  • 4. • The company earned $4422003 million • Gary Kelly took over CEO2004 role from Mr. Kelleher NO.3 among America’s Top Ten most admired2005 corporations
  • 5. Listed by Business Ethics magazine "100 Best2007 Corporate Citizens" 35,000 employees2008 $9.1 billion revenue
  • 6. -SW airlinesknown as Alow-price It began to Madeairport service SW’s other- Fuel-price higher-cost workwasincreasing airports worserapidly
  • 7. Changing strategy Deciding target customer isDisadvantage business travelers in Changing Strategy Most of bargain customers were -hunting business people Lack of professional services
  • 8. Build Expand their Convenient networks & Earncustomer additional services loyalty revenue Provide frequent - Preferential boarding Make an agreementflights to 63 cities in - Bonus frequent-flier with discount 32 states credits carrier ATA Airlines - Free cocktail flight More nonstop & Develop newMore frequent flights - Renovate boarding areas software to shift => suitable for - Install roomier seats, planes to more business travelers’ power outlets, workstation profitable routes counters schedules - Flat-screen TVs broadcasting CNN- Change website- Discounted Charge extra fees forcontracts with thingsbusiness
  • 9. Serve second tier destinations where cost were lower NO assigned seats Serve SNACKS instead of MEALSNO electronic entertainment NO FEE to change same- fare ticket Offered employees profit- sharing plan
  • 10. „‟A Symbol of Freedom‟‟Part 2 : answerthe questions.
  • 11. 1. What has been Southwest‟straditional pricing strategy? Why has this pricing strategybeen so successful throughout theairline‟s first three decades?
  • 12. Low Price
  • 13. 2. What values do airline customers-both business and leisure travelers-seek when they buy air traveltickets ?
  • 14. Each class has different request: Leisure travelers Buiness - Low pricing -Don’t care much - On time about price arrivals, no -The assurance additional fees. of on time - High profit arrivals cities -Safe, convenient - Using smaller flights with high - less crowded qualified airports services
  • 15. Has SW done a better job thecompetitors of meeting the needs ofthese air travelers? In what ways?It has done a better job+ knew clearly who were itscustomers(leisure travelers ), whatvalues, needs of travelers and getcustomers to their destination as quicklyas possible
  • 16. 3. What internal and external factorsaffect airline pricing decisions? Internal factors:- Airlines marketing objectives ….>make profit  by filling the seat at the lowest possible cost to thecustomer. External factors:- Rapidly escalating fuel prices. => fuel-price hedgingstrategy. “they try to pass to the customer throughincreased baggage fees”- Determination of prices => linked to what thecompetitor is doing.”
  • 17. Pricing : Raise aggressively 6 times in 2006, 11.4 percents average fare increasing. successfully marketed. Profit: $100million of the $1 billion (2010).
  • 18. 4. What is Southwest Airline iscurrent pricing strategy?- Low-cost.- Flight frequency high use & limit the use of travel agents.- Light standardization,- Working crew of high capacity- Lower-cost services in short -haul markets- Increasing fares in longer-haul markets- The Pricing Model
  • 19. Does this strategy differentiateSouthwest from its competitors?- Other airlines cannot compete withSouthwest in the same manner as they doeach other- Much lower operating costs
  • 20. Is the strategy sustainable?-The industrys inability to continue to chargerelatively high fares in short-haul markets will-Creates an even greater need for the government toencourage low-cost, new entry, as a discipline forSouthwests pricing behavior in the future.- Replace service of other major airlines that arescaling back service or exiting markets dominated bySouthwest.
  • 21. 5. What marketing recommendations,including pricing recommendations, wouldyou make to Southwest as it moves into thenext decade? - Continue to advertise. - Build the cost. - Capitalize on the business class seatsavailable in many of AirTrans planes.

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