Southwest airlines

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South west Airlines - A Service Marketing perspective

South west Airlines - A Service Marketing perspective

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  • 1. SERVICES MARKETING SUBMITTED BY Gowtham C R Prem Raveendran Swagath Narayan Vishnu R S
  • 2. THE COMPANY Founded in 1971 by Rollin King and Herb Kelleher. Gary Kelly is Chairman of the Board, President & CEO  Headquartered in Dallas, Texas 35,000+ Employees, 87% unionized Operate more than 3300 flights a day  $10.5 Billion Revenue/year  The United States most successful - Low-fare, high frequency - point-to-point carrier Business Sectors - Passenger - Freight
  • 3. MISSION
  • 4. 1.PRODUCT Core Service: being transported fast, safely and comfortably Website Baggage handling Reservation system On -board food On –board flight assistant On-board entertainment Airport desk Call Centre Airport Lounge Post flight customer care
  • 5. OTHER PRODUCTS Allows members to get direct access to the front of ticket counter and security lanes No fee on changing the flight Low cost option allows customers to obtain better boarding position Get priority lane access and priority boarding First and second checked Bags Fly Free At minimum charge provides satellite based internet service
  • 6. 2.PRICE • Branded themselves as low fare-airline • Charge the lowest possible fare • Low operating cost • Flies only one type of fleet Boeing 737 so saves money • No meals – no frills, snacks only • No connection with other airlines • No baggage transfers to other airline • Small airports, back gates
  • 7. • Southwest Airlines uses third-degree price discrimination to fill the plane with travelers in the most profitable way • The firm identifies different consumer groups, in the market, each with a different demand curve.  Southwest Airlines recognizes that any given flights has different types of travelers  Business travelers vs. Vacation travelers • To maximize profit, the firm sets a price for each group by equating marginal revenue and marginal cost. • Depending on the price elasticity of demand for tickets  Charge a higher price for business travelers who have relatively inelastic demands and vice versa
  • 8. 3.PLACE Southwest airline focuses only a niche segment i.e. occasional travelers. Therefore instead of competing with large player with international routs the focus mostly on “point to point” short trips. Some examples are: • Flight to Atlanta – Chicago to Atlanta • Flight to Washington – Orlando to Washington • Flight to Burbank – Las Vegas to Burbank
  • 9. Map - Destinations Flight to Chicago Atlanta to Chicago Las Vegas to Chicago  Flight to Dallas Houston to Dallas  Flight to Denver Las Vegas to Denver Phoenix to Denver Flight to Houston Dallas to Houston
  • 10. 4.PROMOTION  Direct marketing - Via Internet – 84% of tickets in 2010 sold through Southwest.com - Phone - No travel agents  Online booking tool for business travelers - SWABIZ.com – allows business travelers to plan, purchase, and track business travel through their companies web page.  Online marketing  Mobile marketing  AD campaigns
  • 11. Rapid Reward program to earn free air ticket Provide customizable leisure vacation packages Discount on air fare for 10 or more people traveling together ONLINE ADS
  • 12. AD CAMPAIGNS
  • 13. MOBILE MARKETING • Book, change or cancel air reservations • Book or cancel rental car reservations • Check in for your flight • Mobile boarding pass • View travel and weather alerts • Access helpful airport information
  • 14. AD SLOGANS  “Just Plane Smart”  “The Low Fare Airline”  “Symbol of Freedom”  “Wanna get away?”  “Grab your bag, It's On!”  “Fees don’t fly with us”  "There is Somebody Else Up There Who Loves You"
  • 15. 5.PEOPLE • More than 35000 employees create unique southwest culture. • Committed to provide employees an equal opportunity for learning and growth. • Benefits to employees include:-Profit sharing, empowering employees to take decision. • For Southwest, safety of customers and employees is number one priority.
  • 16.  Southwest most distinctive organizational competency is its ability to build and sustain relationships through Shared goals Shared Knowledge Mutual Respect  Trust its employees and gives them authority to do their jobs.  Southwest Airlines has become a powerful example of “The power of servant” leadership principles.
  • 17. . humor • Work should be fun ...it can be play . . . Enjoy it. • Both at workplace and inside the plane altruism • Work is important ...don’t spoil with seriousness. • Welfare of people comes first luv • People are important...each one makes a different impact. • Employee and customer commitment
  • 18. 6. PROCESS
  • 19. Potential failure points • Excessive waiting time • Lost Luggage • Poor in flight service • Lack of information and confusion • Relaxing at airport • After deplane service What SW did to avoid that • Opened express counters. Low turnaround time of only 12 minutes • Used RFID technology to locate bags • Provide Wi Fi and Free TV, snacks. Interaction with customers. • All information available in airport and also mobile phone applets provided • Plush leather seats provided • Good service provided till customer exits
  • 20. 7.PHYSICAL ENVIRONMENT  Unlike other airlines southwest do not have seat numbers. This enables people to take their seats freely with out much confusion.
  • 21.  The environment is joyful and the employees greet the customers with joy. Even the flight instruction is either sung or rapped instead of just reading out.
  • 22.  Free live TV - 13 live channels and up to 75 television episodes on-demand.  Wi-Fi access only for $8 all day.  Comfortable seats – light E leather seats, more knee room and better lumbar support.  Snacks - Peanuts and pretzels are always complimentary, as well as an assorted list of non- alcoholic beverages.
  • 23. WHY FLY SOUTHWEST? • Two words. Low Fares. • We fly tons of places. • Our Travel Experience: Simple, Comfortable & Convenient. • You’ll earn points for travel that can really take you places. • We’ll treat you like family.
  • 24. THANK YOU