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Southwest airlines pitch brief

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Southwest Airlines: New Content Project Work

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Southwest airlines pitch brief

  1. 1. NEW BUSINESS PITCH BRIEF SOUTHWEST AIRLINES CONTENT PROJECT WORK
  2. 2. OVERVIEW Southwest Airlines, the world’s largest low-cost airline best known for its continental U.S. flights, is conducting a digital agency review as it expands its business into additional international markets. Currently the airline serves more than 90 destinations in 40 states, including North American destinations in the Caribbean and Mexico. "As we move further into the international space, we're looking for an agency with both consumer and digital experience in international," said a Southwest spokeswoman. The scope will include a broad range of digital marketing duties, but it likely won't include media, according to people familiar with the matter. VML, the shop's current digital agency of record, will not participate in the review, according to the Southwest spokeswoman. "We've enjoyed partnering with VML for more than seven years, and effective January 1, VML will no longer be part of the Southwest family of agencies, which include TBWA/ChiatDay." WPP's VML worked on various projects over the years, including digital creative work and the Southwest iPhone app. Publicis Groupe's Razorfish also has supported digital marketing for the Dallas-based airline for nearly a decade. The full-service digital marketing agency, which is used primarily by Southwest's technology team, as opposed to its marketing team, will participate in the request for proposals, according to the airline's spokeswoman. Most recently, Razorfish handled some digital work on the airline's "Transfarency" campaign that emphasized its low rates and transparent costs. Another Southwest creative shop, Omnicom's GSD&M, was behind that push. Razorfish also fielded the design of the Southwest microsite amidst a massive rebrand the airline conducted late last year. The effort, which emphasized the airline's heart and the hospitality of its employees, included a new campaign, tagline, in-airport signage and airplane aesthetic.
  3. 3. BACKGROUND SUMMARY Southwest commenced service on June 18, 1971, with three Boeing 737 aircraft serving three Texas cities: Dallas, Houston, and San Antonio. The Company ended 2014 serving 93 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and five near-international countries including Mexico (Cancun, Mexico City, and Cabo San Lucas/Los Cabos), Jamaica (Montego Bay), The Bahamas (Nassau), Aruba (Oranjestad), and Dominican Republic (Punta Cana). Southwest’s launch of international service occurred on July 1, 2014, with service to Montego Bay, Nassau, and Oranjestad. The company also launched service to Cabo San Lucas/Los Cabos and Cancun on August 10, 2014, and to Mexico City and Punta Cana on November 2, 2014. The Company has announced plans to add its first and second destinations in Central America by adding Southwest service to San Jose, Costa Rica beginning in March 2015 and to Belize City, Belize beginning in October 2015, each subject to government approval. Southwest has also announced plans to expand service to Puerto Vallarta, Mexico in June 2015, subject to government approval. As of December 31, 2014, Southwest operated a total of 665 Boeing 737 aircraft. As stated by Southwest Airlines’ CEO Gary Kelly in a recent interview released by Fortune, the best opportunities for expansion and profits are in long-haul business travel. This is the biggest, fastest-growing segment in U.S. air travel, and the one in which Southwest is a relatively small presence (long-haul is dominated by legacy carriers which Southwest beats in every other segment). http://fortune.com/2015/09/23/southwest-airlines-business-travel/ http://fortune.com/2015/09/23/southwest-airlines-business-travel/ http://fortune.com/2015/09/23/southwest-airlines-business-travel/
  4. 4. MARKET SHARE AS THE DOMINANT DISCOUNT AIRLINE, SOUTHWEST NOW MOVES A FIFTH OF ALL U.S. PASSENGERS 700 MILLION 600 500 400 300 200 100 0 MARKET SHARE (%) 2005 U.S. DEPARTMENT OF TRANSPORTATION 2014 2014 SOUTHWEST SOUTHWEST20.0 18.0 17.6 9.8 4 DELTA A.A. UNITED JETBLUE OTHER
  5. 5. OVERLAP 3.4% 2.8% 4.7% 2.9% 5.1% 5.4%
  6. 6. Business travelers are mostly married male, with a college education. Thirty-four percent of them fall within the age range of 25-34, closely followed by the elder range (45-54) which gathers the 32% of the target. AUDIENCE ANALYSIS SOUTHWEST AIRLINES TARGET: BUSINESS TRAVELERS STATUS Married (59%) INCOME $40K - $70K (45%) GENDER Male (56%) FAMILY With Kids (50%) AGE 25-34 (34%) EDUCATION College (66%)
  7. 7. Top 10 Psychographics These young male travelers are very tech-friendly, with Techies as their second most relevant trait (159 Rel) after Travel, and they are Netizens. The first trait indicates an audience following technology trends and news, while the second tells us this is an audience that uses the internet to shop, communicate and fulfill daily tasks. Another relevant trait, gathering 31% of the target, is Politics. This group is politically active and hold strong opinions, according to the high popularity of the Political Activists sub-segment. They are also art appreciators, extending their aesthetic sensibilities to their living spaces (home decorators & diy) as well as their personal looks, where they pay a lot of attention to details by carefully selecting their accessories (accessories addicted). POPULARITY 3482514 16.03% REACH 2.33% 8.97% 23.56% 31.57% 191 DESIGN LOVERS MUSIC LOVERS NETIZES PUBLIC FIGURES FOLLOWERS TECHIES GAMERS ENTERTAINMENT JUNKIES SPORTS LOVERS ART APPRECIATORS PET LOVERS POLITICALLY ACTIVE TRAVELERS # NAME REACH POPULARITY RELEVANCE 2 3 4 5 6 7 8 9 10 1 Travelers Techies Motor Lovers Home Decorators &... Politically Active Netizens Art Appreciators Fashion Lovers Foodies Beauty and Wellne... 18.40% 26.72% 15.76% 15.78% 31.57% 9.79% 5.80% 26.86% 28.27% 16.60% 191.92 167.27 168.2 157.07 136.76 146.14 149.66 120.92 118.74 126.29 171.61 159.44 154.14 146.73 141.15 134.71 132.49 128.6 127.77 126.75 HOME DECORATORS AND DIYs BEAUTY & WELLNESS AWARE PARTY GOERS OUTDOOR ENTHUSIASTS FASHION LOVERS FOODIES
  8. 8. Top Psychographics POLITICS # NAME REACH POPULARITY RELEVANCE 2 3 4 1 Political Activists Local Participants Social Activists Passive Civics 11.61% 4.51% 1.07% 25.71% 168.63 114.97 93.39 14.15 151.33 107.37 83.72 56.9 FASHION # NAME REACH POPULARITY RELEVANCE 2 3 4 5 6 1 Accessories Addicted Fashion Enthusiast Swayable Shopaholics Trendy Sporty Stylists Classic Fit Personal Style Fashion Disconnects 2.16% 3.80% 4.77% 7.16% 4.33% 4.75% 4.88% 21.17% 185.12 163.82 161.23 112.9 73.17 68.4 63.18 13.24 148.97 138.66 138.64 109.75 79.2 76.72 73.45 54.05 7 8
  9. 9. INSIGHT In terms of print and online media, Lifestyle magazines are an ideal way to establish a connection with this target by tapping into their passions, and newspapers are still the most relevant medium for getting business news. Websites come in a close second as a news source for business travelers. Business travelers are something of an anomaly in their media preferences, since even though they are highly tech-savvy, they also frequently enjoy print media. This is likely due to airline restrictions on internet access during flights. However, when on land, this group is highly active online, especially on rewards program websites. Rewards program websites are high in reach and penetration for this group. They’re not only frequent travelers, they’re savvy travelers ready, willing and able to exploit online deals. This group does substantial research to get the best value while having the best experiences by following websites about rewards program and city-exploring like Jetsetter and Gilt City. Also popular are restaurant booking and review websites. This group has sophisticated palates and also enjoy a special passion on wine. They primarily explore their passions for food, wine, travel and style through Magazines, the fourth medium by relevance but second by popularity. Among them, Lifestyle Magazines about motors, business and style are the ones reaching broader shares of the audience, such as New York Magazine, Uncrate, and Men’s Journal. MEDIA USAGE
  10. 10. MEDIA USAGE top visual art & design # NAME REACH POPULARITY RELEVANCE 2 3 4 5 6 1 Newspapers Websites TV Magazines Apps Radio 12.93% 89.41% 43.57% 32.98% 45.33% 23.98% 187.73 148.00 145.55 150.09 117.94 116.31 165.14 163.49 151.20 150.58 133.33 124.19 POPULARITY 147166116131 40.31% REACH 3.93% 20.76% 63.02% 89.41% 187 TV MAGAZINES APPS WEBSITES NEWSPAPER RADIO
  11. 11. REACH relevance 10061233.89%2.92%1.95%0.97%<0.01% 139 177 Marriott Rewards Hilton HHonors Starwood Preferred The Points Guy Jetsetter Visit Costa Rica Gilt City Visit California Hipmunk Visit Orlando FAVORITE travel websites MEDIA USAGE FAVORITE WEBSITE # NAME REACH POPULARITY RELEVANCE 2 3 4 5 6 7 8 9 1 Business Travel Technology News and Search engines Politics Food Health Education and Culture Gossip 16.11% 28.12% 15.27% 32.45% 11.77% 23.05% 10.50% 23.16% 3.40% 197.56 185.97 189.41 167.25 164.38 152.37 157.2 135.3 161.04 173.94 172.52 167.95 161.82 148.64 147.77 142.74 136.44 135.99
  12. 12. Rewards programs including exclusive offers regarding destination-specific leisure activities such as fine-dining, drinking and parties could lead to increased perceived-value. Moreover, the airline could benefit from partnerships providing discounts for ground transportation in their destinations. A business travel app, linked to southwest’s leisure one, could ease the separation between business expenses and personal expenses and be a decisional factor. 83% of respondents use time on business trips to explore the city they’re visiting. Nearly half of respondents (46%) add personal travel days to business travel every trip or to most trips. More than half (54%) of travelers that take bleisure trips bring their family members or significant other with them 94% of younger travelers are “more than” o “equally” likely to take a bleisure trip in the next five years - significantly higher than the worldwide average. BUSINESS OPPORTUNITies BLEISURE INSIGHT Business travelers want to enjoy the trip as much as they can by leveraging the limited time they have reserved for non-business duties. This type of travel is commonly called bleisure. 83% 46% 54% 94% https://www.southwest.com/mobile/ https://www.southwest.com/mobile/ https://www.southwest.com/mobile/
  13. 13. Given the behavior of the audience, easing and enhancing the “travel experience” could be a winning strategy. Premium services and exclusive activities while traveling are perceived as important pluses for an audience who doesn’t limit their visits to business duties. As previously noted, this group finds and decides on their dining, drinking, and recreation options online. They make wide use of services like Jetsetters, UrbanDaddy and Restaurants.com. Moreover, mobility seems to be a major concern for this target, which leverages Mobile apps for services like Uber and Lyft and MyTaxy, to move inside the city as alternatives to traditional car rental services like Zipcar and the high penetrating Avis (14.5% penetration). In addition to the findings above, a WEXinc study suggests that millennial business travelers (top cohort) seek to manage business tasks and personal activities while traveling. Going in this direction, a mobile app capable of keeping separate expense records could win over this audience who blends business with leisure. BUSINESS OPPORTUNITies global business travelers aged 18-34 are interested in using their mobile device to: 67% Find nearby stores, reataurants, service providers, etc, via GPS navigation tools. 64% Separate business expenses from personal expenses 62% Keep track of loyalty/rewards points or other benefits for their credit cards. 60% Keep track of payments and expenses 61% Coordinate business meals, local travel, etc. 59% Record or image receipts
  14. 14. TOP app GENRES # NAME REACH POPULARITY RELEVANCE 2 3 4 5 6 7 8 9 10 1 Travel Lifestyle Finance and Business Food and Drink Utilities Navigation Entertainment Social Networking Health and Fitness News 4.35% 4.59% 1.34% 3.31% 8.08% 1.25% 3.85% 15.94% 1.03% 0.76% 197.29 182.12 193.33 181.56 170.47 183.4 163.03 126.79 156.6 147.71 161.98 152.27 151.57 149.48 149.19 144.57 138.21 126.65 125.64 118.14 REACH popularity 1005002.50%1.50%1%0.50%<0.01% 150 200 Uber Lyft HotelTonight TripIt GasBuddy Gogobot Roomer ibis mytaxi - The Taxi App OffMetro NY TOP 10 travel apps BUSINESS OPPORTUNITies
  15. 15. In terms of aesthetics, authoritative colors such as black can denote seriousness, while gold is a classic symbol of luxury. Content should be written with a balance of professionalism and a sense of sophisticated fun, with a minimal, modern design, similar to GQ. Products and partner services should be presented as having premium quality, and offer exclusive discounts reserved for members (this is a group that enjoys its frequent-flyer privileges). Articles posted on social media channels and newsletters about destination-specific restaurants, culture, art, and curiosities will grab their attentions. As reported in the 2014 “Bleisure Report” by BridgeStreet, for many business travelers, “bleisure” is a way of life and 96 percent of respondents believe they gain cultural experience/knowledge through bleisure trips. Improving lifestyle is a major concern for this group, which we see by the types of content they consume. Looking at the top magazines, we notice that the vast majority of content is presented in a professional, authoritative way, even if the matter of discussion wouldn’t require it. Many of them present minimal black and white logos and extend this aesthetic choice also to their visual content. Moreover, analyzing this target’s favorite website, we uncover a passion for premium quality products at affordable prices. A clear example of this trend is the Gilt deal website, present for both male and female audiences in this segment. CREATIVE INSIGHTS INSIGHT This audience appreciates great deals and luxury, business travel and leisure activities. They like to save a buck so they can spend it where it counts (on fine wines most likely). Southwest airlines has an opportunity here if it can shape the perception if its brand as able to improve the lifestyle of this target segment. http://skift.com/wp-content/uploads/2014/10/BGH-Bleisure-Report-2014.pdf http://skift.com/wp-content/uploads/2014/10/BGH-Bleisure-Report-2014.pdf http://skift.com/wp-content/uploads/2014/10/BGH-Bleisure-Report-2014.pdf http://skift.com/wp-content/uploads/2014/10/BGH-Bleisure-Report-2014.pdf http://skift.com/wp-content/uploads/2014/10/BGH-Bleisure-Report-2014.pdf
  16. 16. CREATIVE INSIGHTS TOP app GENRES TOP entertainment website # NAME REACH POPULARITY RELEVANCE 2 3 4 5 6 7 8 9 10 1 New York Magazine Uncrate Men's Journal Esquire GOOD Chicago Magazine dot429 Intelligent Life magazine O, The Oprah Magazine Instinct Magazine 0.78% 0.40% 0.18% 0.31% 0.50% 0.21% 0.09% 0.06% 0.19% 0.16% 190.44 191.26 195.75 192.37 188.79 190.22 193.81 194.2 184.9 185.53 146.75 144.29 144.22 143.93 143.6 141.01 140.74 139.97 137.17 137.02 POPULARITY 134142120127 2.03% REACH 0.97% 1.50% 2.56% 3.09% 151 LIKEACOUPON.COM WIMP.COM BARKBOX XFINITY DEALDASH REFINERY29 EBAYGILT.COM NOMORERACK GROUPON
  17. 17. If you need more insights on this target and its competitors click HERE or drop us a line normandin@cubeyou.com We are here to help! http://www.cubeyou.com/contacts http://www.cubeyou.com/contacts http://www.cubeyou.com/contacts http://www.cubeyou.com/contacts http://www.cubeyou.com/contacts

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