Individual Assignment # 2 - WestJet

1. Running head: INDIVIDUAL ASSIGNMENT # 2 - WESTJET 1
WESTJET CASE
Individual Assignment # 2 - WestJet
Centennial College – The School of Business
Marketing Brand Management
MKTG 717 – 001
Andre Havro
300988686
Submitted to:
Professor Hubert Rau
June 24, 2018

2. INDIVIDUAL ASSIGNMENT # 2 - WESTJET 2
Identify the issues and opportunities facing the WestJet brand.
ISSUES
• International expansion plans
The international flight plan gets the attention of the shareholders besides a probable increase in the costs.
They are concerned about the possible change in WestJet brand positioning because the consumer's perception is
that WestJet is a domestic airline with low cost. Shareholders also are afraid that the brand could lose its
differentiation from other competitors, especially Air Canada (Siekierska, 2018).
Losing this perception of consumers, the WestJet brand runs the risk of leaving the Winning Zone (when the
WestJet match with the consumers needs: good customer service with affordable price), for the Losing Zone (when
the competitor match with the consumers needs better than your brand: Air Canada with better in-flight
entertainment, better reward programs, and more connections and flexibility in flight schedules) (Rau, 2018).
• Rising fuel costs
Rising prices can affect consumer perceptions of brand values, as the company is not routinely delivering what
it promises – good prices with low prices (Siekierska, 2018).
• Pilot strike
The recent WestJet pilot strike is clearly only a symptom of an even bigger internal problem and troubles not
only the stakeholders but directly impacts on the consumer relationship. The company is known for engaging
employees – with a good mood, and this type of action can affect a consumer’s perceptions (The Canadian Press,
2018).
OPPORTUNITIES
• Jetsgo bankruptcy
With the leaving of a competitor from the market, it is natural for consumers to look for other alternatives, which
has benefited mainly WestJet and Air Canada which had a considerable increase of passengers (CBC/Radio-
Canada, 2005). With the exit of Jetsgo, a company that competed in the same segment of WestJet – a low-cost
airline, it is easier to position the WestJet brand as a frame of reference in this segment.
• New products in the same category
Without losing its regional carrier brand essence, WestJet can exploit the business traveller market that
represents (in 2005) about 30% of the Canadian market, launching a line extension for different segments.
In fact, they have launched other services with sub-brands below the master brand, and other brands
completely different, becoming a mix of House of Brands (Swoop, Pacific Coastal Airlines) and Branded House
(WestJet Encore, WestJet Link, WestJet Vacations, WestJet Rewards), confusing the consumer relationship with
the master brand.

3. INDIVIDUAL ASSIGNMENT # 2 - WESTJET 3
Describe the characteristics and personalities of the West Jet and Air Canada brands.
WESTJET CHARACTERISTICS
• Low fare – The WestJet average price ticket is cheaper the competitors.
• No frills – The company focuses on providing a more objective service without too many “garnishes.”
• Good service – They provide good customer service, with on-time flights.
WESTJET PERSONALITIES
• Funny and informal – WestJet is famous for using good humour on its flights, which leaves the consumer
more relaxed. It is common to see pilots and flight attendants telling jokes during flights (Toneguzzi, 2013),
these actions guide us to a funny and informal person.
• Modest – They charge a fair price and providing a good service, which brings us to a modest profile.
• Reliable – Elected one of the ten most trusted Canadian brands in 2017, the first airline on the list. (University
of Victoria, 2017).
AIR CANADA CHARACTERISTICS
• High price – Air Canada is one of the most expensive airlines in the country (Slattery, 2016).
• Full service – The company provides a range of differentiated services in the Canadian market, which led to it
being selected as the best airline in North America in 2017 (Air Canada, 2018).
• Vast international network – The company flies to more than 51 countries and 183 destinations worldwide
(Joseph, 2018).
AIR CANADA PERSONALITIES
• Successful – It has a profile of business trips (30% of the total market), which brings us to a successful
person.
• Elegant – By having a higher price and differentiated services the brand shows a more sophisticated profile.
• Canadian – The company is national pride.
Outline your plans for the WestJet executive team as to how you propose to re-position the brand in the Canadian
marketplace.
a) What specifically are you recommending that WestJet do?
The WestJet brand is recognized as the favourite of consumers who are looking for a company with simple yet
high-quality services. It is perfectly possible to maintain this image with the same brand by flying even regional and
international flights. The great challenge in maintaining this proposal is to continue delivering daily the values
promised by the brand, that is to maintain the good humour of the employees, continue with excellent customer
service, good lost baggage ratio, and punctuality in the flights. That means maintaining operational efficiency to
keep the brand values to consumers.
On the other hand, the ultra-low-cost segment impacts on different services, which justifies a completely
different company with a different brand (Swoop Inc.). Regarding market segmentation (behavioural), they have a

4. INDIVIDUAL ASSIGNMENT # 2 - WESTJET 4
different type of customers, which justifies a category extension with a product completely disassociated with the
master brand.
My recommendation is to continue to focus on the operational excellence of the WestJet brands delivering the
brand values to consumers (consistently kept), incorporating the Pacific Coastal Airlines brand into the WestJet
family, creating a sub-brand and treating Swoop as an independent company developing its brand value.
b) How will it work?
This strategy aims to maintain the consumer relationship with the WestJet brand that relates to a person close
to the family. This relationship must be maintained even with the company's growth. Unlinking the Swoop and
WestJet brands will give more autonomy to the two companies that can work on different targets without
depression of consumer’s perceptions and brand values.
c) What are the expected results?
The expected results are to pursue the constant growth of the company keeping its brand root as informal,
funny, no frills, low prices and efficient.

5. INDIVIDUAL ASSIGNMENT # 2 - WESTJET 5
References
Air Canada. (2018). Best Airline in North America. Retrieved June 23, 2018, from Air Canada:
https://www.aircanada.com/ca/en/aco/home/book/special-offers/skytrax.html
CBC/Radio-Canada. (2005, May 16). Jetsgo declares bankruptcy. Retrieved June 23, 2018, from CBC News:
https://www.cbc.ca/news/business/jetsgo-declares-bankruptcy-1.533811
Joseph, T. (2018, January 5). How many countries does Air Canada serve? Retrieved June 23, 2018, from Quora:
https://www.quora.com/How-many-countries-does-Air-Canada-serve-1
Rau, H. (2018, June 5). Competitive Branding Strategies and Principle 2 [PowerPoint slides]. Retrieved June 23,
2018, from 18M - Marketing Brand Management (SEC. 001):
https://e.centennialcollege.ca/d2l/le/content/351132/viewContent/3966266/View
Siekierska, A. (2018, January 11). Rising fuel costs could be headwinds for Air Canada, WestJet in 2018. Retrieved
June 24, 2018, from Financial Post: http://business.financialpost.com/transportation/rising-fuel-costs-could-
be-headwinds-for-air-canada-westjet-in-2018
Siekierska, A. (2018, May 9). WestJet stock downgraded as analyst concerns linger. Retrieved June 23, 2018, from
Financial Post: http://business.financialpost.com/transportation/westjet-stock-downgraded-as-analyst-
concerns-linger
Slattery, J. (2016, September 9). International flights from Canada are the most expensive in the world: report.
Retrieved June 23, 2018, from Global News: https://globalnews.ca/news/2931748/international-flights-from-
canada-are-the-most-expensive-in-the-world-report/
The Canadian Press. (2018, May 25). Threat of WestJet pilot strike over as airline, union agree to settlement
process. Retrieved June 24, 2018, from Toronto Star Newspapers Ltd. :
https://www.thestar.com/business/2018/05/25/threat-of-westjet-pilot-strike-over-as-airline-union-agree-to-
settlement-process.html
Toneguzzi, M. (2013, December 13). Companies using humour to grow business. (P. N. Inc., Editor) Retrieved
June 23, 2018, from Calgary Herald:
http://www.calgaryherald.com/business/companies+using+humour+grow+business/9284763/story.html
University of Victoria. (2017, 2018 June). Canada’s Top 10 Most Trusted Brands. Retrieved 23, from University of
Victoria - Peter B. Gustavson School of Business: https://www.uvic.ca/gustavson/brandtrust/top-
10/index.php