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Business Proposal for Delta Airlines by Team 14

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Business Proposal for Delta Airlines by Team 14

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Business Proposal for Delta Airlines by Team 14

  1. 1. Business Proposal for Delta Airlines Presented by: Team 14 Allison Rossi - Nandi Richardson Candace Marquez -Ariyldawn Wilson March 18, 2014
  2. 2. The Main Agenda • Areas of Improvement: Numerous consumer complaints/poor customer service and decline in frequent flyer miles program members. • Solution: Combat poor public image by launching a multi-layer campaign involving celebrity endorsements, Sky miles perks provided by iTunes, Beats By Dre and involvement in local music festivals.
  3. 3. Who is Delta Airlines? • One of the oldest airlines • 165 million customers • 80,000+ employees • Fleet of 743 airplanes • Flies to over 322 destinations 59 countries/six continents
  4. 4. Delta Facts • Customers: Male/Females 18-60 years old • Collaborators: Virgin Australia (for extended travel to Mexico) • Competition: Southwest Airlines, Spirit Airlines & American Airlines • Sales & Marketing: More hands-on approach w/ new social media advertising and billboards • Legalities: Contracts for endorsements- outlining moral expectations, etc. Clear disclosure of compensation, percentages & timeline of use • Revenue: Annual revenues of $37.7 billion in 2013
  5. 5. Investment & ROI • Delta will spend $300,000 to introduce the pilot/test partnership with Beats by Dre on select Domestic routes • Delta will roll out full implementation of this strategy over 2-5 years for a total cost of $2 million. • Delta expects to improve sales of first class tickets, new customers and improved reviews by 10% over the first year, with an expected increase in revenue of $415,100.
  6. 6. Timeline The plan is to bring together Delta Airlines, celebrity influence and perks provided by Beats by Dre’ in order to reengage current members and entice new customers to join the SkyMiles program. • Beginning April 5, 2014 • The set launch date is November 1, 2015 • New Releases and extended marketing up until December 31, 2016
  7. 7. Evaluation Strategy & Benchmarks • Creating new customer relationships • Offer in-flight use of new music technology/entertainment • Encourage future travel • Delta as preferred airline • Improve company’s public image
  8. 8. References • "About Delta." About Delta Retrieved on March 8, 2014 from: http://www.delta.com/content/www/en_US/about-delta.html • "Delta Airlines, Inc. Competitors." NASDAQ.com Retrieved on March 9, 2014 from: http://www.nasdaq.com/symbol/dal/competitors • Davies, A. (2013). Ranked: The best airlines in america. Retrieved from http://www.businessinsider.com/the-best- airlines-in-america-2013-9?op=1 • Google Images

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