Southwest Airlines Brand Inventory Report

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Southwest Airlines Brand Inventory Report

  1. 1. BRAND INVENTORY REPORT July 17, 2012
  2. 2. BRAND HISTORY •  Ticketless Travel •  A New Kind of Airline •  Service to FL1960’s 1990’s begins •  Off the ground •  AirTran •  $13 Fare War Acquisition1970’s 2000’s •  Triple crown •  Lollipops for1980’s everyone
  3. 3. FUN FACTS3,200 $141.72 1st 92 M 1,309
  4. 4. BRAND VALUE PROPOSITION Fun  &   Friendly   Flying   Value   Customer Low  Fares   Service Red-­‐bellied   Simplicity   Jets  
  5. 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. 6. CURRENT STRATEGY•  Bags Fly Free•  Southwest.com•  Rapid Rewards•  A Better way to Board•  Business Select
  7. 7. PRICING•  Low Cost Carrier •  No baggage/change•  Bargain air travel fees Airline Range Stops NotesOrlando to Las Vegas $595 (Lo) 1 Mostly Red EyeCompetitor Averages $904 (Hi) 1 Flights $528 (Lo) 0Southwest Airlines $1104 (Hi) 0New York, NY to Los Angeles $407 (Lo) 1 Red Eye; 4+Competitor Averages $591 (Hi) 1 hour Layovers $315 (Lo) 1Southwest Airlines $591 (Hi) 1
  8. 8. LOCATIONS & HUBS
  9. 9. LOCATIONS & HUBS Puerto Rico International Northwest 1% 3% Southwest West 12% 33% East 15% Midwest Southeast 17% 19%
  10. 10. MARKET TRENDS YOY  Airfare   Price  index   %  change     $/Gallon  
  11. 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. 12. MARKET SHARE
  13. 13. MARKET SHARE
  14. 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. 15. Summary•  Brand positioning•  Social Strategies•  Commitment to employees•  Expanding flight offerings

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