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Integrated Marketing Communication plan (Southwest Airlines)

Southwest Airlines is a major US airline founded in 1967 with over 58,000 employees. It has the largest domestic market share and is the world's largest low-cost carrier. The document provides information on Southwest such as its mission, culture, products/prices, service characteristics, competitors, SWOT analysis, target markets, benefits, marketing communications objectives, and integrated marketing communications plan. The plan aims to increase preference for Southwest by 10% over 6 months by emphasizing its no-change fee and bag fee benefits over competitors through an integrated campaign using PR, advertising, promotions, sales, sponsorship, direct marketing, and digital/social media. Progress will be measured through ongoing research with target markets.

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Golden Gate University MKT308 2018 Fall semester Professor Michael Savod Yumiko Higuchi (Yumi) #0583825
The Company Information is • Founded in 1967 (as Air Southwest) • A major United States airline headquartered in Dallas, Texas (24% of total domestic market share) • The world’s largest low-cost carrier • Has more than 58,000 employees • Operating revenues: $21.2 billion in 2017 • Net income: $2.1 billion in 2017 • One million customers annually (2015) Need more recent data • Daily departures: Over 4,000 flights References: Southwest investor website and Yahoo finance website 2
Mission Statement References: Southwest website 3
Company Culture In order of importance, Southwest ranks employees first, customers second, and shareholders third. "We believe that if we treat our employees right, they will treat our customers right, and in turn that results in increased business and profits that make everyone happy," the airline explains about its company culture. References: Business Insider website 4
Company Philosophy References: Southwest website 5
Product (Service) and Price Range • Product: flight tickets • Price range: About $30 – 1,000 (depends on the destination, season, and campaign) References: Southwest website 6
Characteristics of The Service • Transfarency policy • 1st and 2nd bags are free • Flight change fee is free • In-flight snacks and non-alcohol beverage is free • All in-flight entertainment is free (need to download app before flying) • Highest quality customer service with casual and friendly attitude • Open seating policy References: Southwest website 7
Competitors Credit Rating (S&P/Fitch ) Revenu e (in 2017) Numbers of Employees Customer Service Satisfaction Ranking (DOT’s) Southwest Airlines BBB+ $21B 56K #1 Delta Air Lines BBB- $41B 87K #5 Alaska Airlines BB+ $7.9B 19K #3 JetBlue Airways BB $7B 18K #7 Frontier Airlines - $985M 6.1K #9 References: The point guy website and Southwest investor website JetBlue is a serious direct competitor 8
SWOT Analysis S • Low-cost fare structure helps maintain passenger volume • Revenue growth • Point to point service strategy increase revenues • Employees-first policy prevents an increase in recruiting costs • Company culture makes a healthy cycle in employees, customers, and stakeholders • On-time performance • Strong customer services* • Casual and friendly policy • No flight change fee* • No bag fees* • Social Media presence References: Mintel database website and D&B Hoovers database website * Can use them as benefits 9
SWOT Analysis • Dependent on single aircraft and engine supplier could impact the operations (Boeing 737-800) • Heavy dependence on passenger revenues could increase risk • High Labor costs W References: Mintel database website and D&B Hoovers database website 10
SWOT Analysis • Positive outlook for the global tourism industry • Network expansion initiatives to create a positive impact on topline performance • Strategic Initiatives enhance its future growth prospects O References: Mintel database website and D&B Hoovers database website 11
SWOT Analysis T • Labor Cost in the US • Stringent government regulations likely to affect the company’s progress • Intense competition could negatively impact margins • Fuel costs • Slowing global economy • Limited flight offerings • Many direct and indirect competitors References: Mintel database website and D&B Hoovers database website 12
Market(s) “Need” is much motivational “want.” Your target markets will be people who feel the need for those benefits. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 13
What Kind of People choose Southwest? The People want to • finish a travel arrangement only using the internet • avoid paying an additional charge for changing flights • avoid paying an additional charge for bags • avoid paying an additional charge for in-flight entertainments • avoid paying an additional charge for refreshments • go somewhere punctually • go somewhere with comfortable feelings • support ethical and sustainable company at an affordable price 14
Consumer Lifestyle Activities OpinionsInterests • Always busy • Travel • Cultural activity (movies, games, books, or something related to culture) • Concert live, music festival • Experience-based entertainment • Rational • Realistic • Reasonable • Cost-effective • Thrifty, frugal • Casual • Willing to follow sustainable company • Tech • Travel • Comedy • New things • Something cutting-edge Inferred Consumer Lifestyle References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 15
Benefits of Service of Southwest References: Southwest website A flight change fee has a big difference. It can be a big benefit for the target customers. 16
Target Customers Based on Psychographic Characteristics The People want to • Change flight frequently • Use internet friendly airlines • Have a nice deal with airlines • support ethical and sustainable company Needs for the airline company • FLEXIBILITY • INTERNET FRIENDLY • NICE DEAL • SUSTAINABILITY NO.1 benefit for the target customers 17
Mission Marketing communications objectives are measurable and primarily influenced by the promotion of 4Ps only. They are based on awareness, image, and preference. Determining promotion objective is researching with the target markets' current level of problem (benchmark), then establish goal and timing. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 18
Mission Marcom Objective Increase preference 10% for the target customers in 6 months in the US (September 1, 2019 to February 28, 2020) 19
Message Creating meaningful and credible communications that your target market(s) are willing to listen to, understand and believe in order to accomplish the Mission. Receiver must be: 1. Willing to listen 2. Able to understand 3. Willing to believe “BLUEPRINT” for your “message” 1. Related to each selected target market’s “Psychographics” 2. Related to “Mission”: Awareness, Image or Preference 3. Related to “Benefits” If your mission is "preference," using phrases of “compare to” and “better than.” At that time, receivers will understand why people should choose your product compared to competitors' one. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 20
Message Blueprint step 1: Psychographics Do you want to change flight frequently? References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 21
Message Blueprint Step 2: Preference • Compare to.. • Better than.. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 22
Message Blueprint Step 3: Benefits No charge for changing flights > FLEXIBILITY, LOWER PRICE References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) This benefit is COMPETITIVE 23 PREFERENCE!!
Methods It expresses blending MarCom tools such as Advertising, Public Relations, Direct Marketing, Sales Promotion, Personal Selling, Sponsorship, Cause Marketing, and eCommunication. "Public Relations comes first and Advertising comes next." References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) and USA Today 24
Advertising-Billboard Southwest is much better than others Because FREE flight change fee! If you want to compare Go to www. Swisno1.com #SWisNO1 25
Advertising - Video If you want to compare, Go to www. Swisno1.com 26
Advertising – Social Media(1) Social media ads using typographies 27
Advertising – Social Media(2) 28
Advertising – Social Media(3) 29
Advertising - SEM Keywords: Southwest, LCC, cheap flight, Low-cost, travel, JetBlue, Alaska 30
Advertising Integration MPR Ads eCom Billboard 31
MPR (1) • Take a survey using independent organization and influential source • Announce the survey results from independent organization and influential source • Announce the survey results using infographic from Southwest • Provide more information and additional data, and give free flight coupon (for experiencing Southwest) for influencers such as journalists, bloggers, social media active people • Encourage writing blogs, sharing infographic, and comment for them • Creating influencers’ list for next MPR Opportunity to emphasize difference with competitors 32
MPR (2) Take survey to the target audience, and use this data for the MPR. Survey questions are how customers feel stress when they use airplanes. Sample questions: • How do you want to finish a travel arrangement? A: On the internet B: With a travel agent C: Other procedures • Do you want to change flights freely? A: Yes B: No C: Doesn’t matter • Do you want to bring your luggage without an additional charge for bags? A: Yes B: No • Do you want to go somewhere with punctuality using an airplane? A: Yes B: No • Do you need to go the job interview with airplane? A: Yes B: No 33
MPR (3) Announce the survey results using infographic. 34
MPR Integration MPR AdseCom 35
Sales Promotion(1) Holding a contest: “How do you love Southwest compared to others” Draw and share your favorite Southwest experience compared to others in the airplane's paper napkin, and post this one with hashtag #Swisno1 to Instagram, Facebook, and Twitter. Southwest chooses nice one every month, and announced it on their blog. Southwest gives each winners to $1,000 flight coupon. Examples: SW is better than JetBlue Because of FREE bag charges!! I love SW compared to JetBlue because of FREE flight change fee! #SWisno1 36
• Share paper napkin doodles to social media • This contest has opportunity to show customers’ preference for SW compared to other airlines • The contest tells the message that how Southwest has benefits compared to others Sales Promotion(2) People love FREE flight change fee People love Southwest because of FREE bag charges Coupon SW is better than JetBlue Because of FREE bag charges!! 37
Sales Promotion Integration Sales Promotion MPR eCom Coupon 38
Do sponsorship for career fairs, and have a pop-up shop for the events. Using the events and the pop-up shop, Southwest can show own benefits that competitors do not have for participants. Personal Selling and Sponsorship(1) Can explain the benefits that competitors do not have PREFERENCE!! 39
Sales Promotion in this methods: If pop-up shop’s participants join Southwest’s loyalty program (Southwest Rapid Rewards) there, the company gives coupons to them. Coupons for the next job interview Personal Selling and Sponsorship(2) 40
Personal Selling and Sponsorship(3) • Pop-up shop (Personal Selling) and Sponsorship for the job fair has opportunity to show Southwest’s benefits for the target audience directly. If attendees join Southwest loyalty program (Southwest Rapid Rewards) there, the company gives coupons to them. • As blending Sales Promotion and eCommunication amplifies Personal Selling and Sponsorship’s results 41
Sales Promotion MPR eCom Personal Selling and Sponsorship Integration Personal Selling Sponsorship 42
Direct Marketing After the job fair, using the email list that is gathered in the career fair and renting an email list of the target customers for direct email marketing The email list that is gathered in the job fair The email list that is rented from the list company + Direct In the direct email, explaining how Southwest has benefits compared to competitors. PREFERENCE!! 43
Direct Marketing Integration Direct Marketing Personal Selling Sponsorship Sales Promotion Direct 44
Cause Marketing Southwest Airlines donates $100K a year to “ENERGY FUTURES INITIATIVE,” and be a member of this organization. The company will publish this activities using a whitepaper. Also, as the part of this organization, Southwest will educate people how important developing the renewal energy is. https://energyfuturesinitiative.org/ Southwest Airlines consume tons of fuels. Therefore, showing concern about renewal energy is essential for the company. Also, the target audience of the company is the people who want to have a relationship with an ethical company, so this cause marketing is effective for the target audience to show Southwest’s stand point is different with competitors. PREFERENCE!! 45
Cause Marketing Integration Cause Marketing MPR eCom White paper 46
WE SUPPORT YOUR JOB-HUNTING ACTIVITIES eCommunication • The official website and the blog site optimization • Emphasize Southwest’s difference with competitors on the official website, the blog site, and Social media (Facebook, Twitter, and Instagram) 47
eCommunication Integration MPR Ads eCom Sales Promotion Personal Selling Sponsorship 48
Schedule 49
Media Media is channel of communications 1. Broadcast (TV, radio) 2. Print (magazines, newspaper, yellow pages, mail, phone book) 3. Electronic (computer, telephone) 4. Outdoor (billboards, wild postings, vehicles, others) Making it targeted is important. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 50
Media (1) Cost-effective media 1 Advertising – SEM • Objective: Increase preference for Southwest and show Southwest’s benefit that competitors do not have (P.19 Mission) • Target audience: The people who want to use flexible airline company (especially changing ticket frequently). They are internet friendly (P.17 Target customers) • Frequency: Once a month (6 times) • Vehicles: Google Adwords • Expecting result: Increases 10K 51
Media (2) Cost-effective media 2 MPR • Objective: Increase preference for Southwest and show Southwest’s benefit that competitors do not have (P.19 Mission) • Target audience: The people who want to use flexible airline company (especially changing ticket frequently). They are internet friendly (P.17 Target customers) • Frequency: Once (provide infographic, and contact with influencers and encourage writing articles) • Vehicles: Infographic • Expecting result: Increases 10K CPC through social media, blog, and website 52
Media (3) Cost-effective media 3 eCommunication • Objective: Increase preference for Southwest and show Southwest’s benefit that competitors do not have (P.19 Mission) • Target audience: The people who want to use flexible airline company (especially changing ticket frequently). They are internet friendly (P.17 Target customers) • Frequency: Daily basis • Vehicles: Official website, social media (Facebook, Twitter, and Instagram) • Expecting result: Official website increases 10K views, FB page increases 50K fans (Current FB Page 6M fans), Twitter Increases 10K followers (Current 2.11M followers), and Instagram increases 50K followers (Current 513K followers) 53
Money (Budget) “Task-method (Bottom-up)” has the following characteristics: • Determine what funding is necessary to accomplish “Mission” using the first five “M’s” • If you don’t have adequate funding, revise your “Mission” Task-method is very logical and if we properly targeted the market, the company can reduce the cost of the IMC campaign. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 54
Money (Budget) (1) 55
Money (Budget) (2) 56
Money (Budget) (3) Total Most cost-effective way 57
Measurement On-going research with Target Markets at regular intervals is that determining progress against "Mission" based on the benchmark that you decided. Therefore, using on-going analysis, you understand what "Methods" are working best. If you do not have an achievement through your plan, you need to revise the plan if necessary. References: Golden Gate University e-learning website (MKT308 course, Pr. Savod narrated slides) 58
• Have to tests before launching the campaign. • Needs to have tracking study for the progress of preference from benchmark to the goal during the campaign. It is every month, week, or day (depends on the methods). Also, need to have changes if the method does not work well. KPIs are following: Measurement(1) 59
Measurement(2) Tracking study timing in the schedule : Monthly, Weekly or daily 60
Thank you for reading 61
References D and B hoovers database - Southwest (GGU library). (n.d.). Retrieved from https://app.avention.com/company/5acc2227-ca84-3ba5-ab35- a989c6b507fd#report/company_summary Golden Gate University - elearning site. (n.d.). Retrieved from https://elearning.ggu.edu/course/view.php?id=10333 Martin, E. (2015, July 29). A major airline says there's something it values more than its customers, and there's a good reason why. Retrieved from https://www.businessinsider.com/southwest-airlines-puts-employees-first-2015-7 Mintel database - Southwest (GGU library). (n.d.). Retrieved from 0-academic.mintel.com.library.ggu.edu/search/?q=southwest&go= Nielsen paying premium sustainable products. (2015, October 14). Retrieved from https://www.marketingcharts.com/brand-related- 60166/attachment/nielsen-paying-premium-sustainable-products-oct2015 Scharper, D. (n.d.). The best advertising of all: Creative use of Public Relations. USA Today. Southwest Airlines. (n.d.). Retrieved from https://www.southwest.com/html/ Southwest Airlines investor booklet. (n.d.). Retrieved from http://www.southwestairlinesinvestorrelations.com/~/media/Files/S/Southwest-IR/events/ Summary for Southwest Airlines Company - Yahoo Finance. (n.d.). Retrieved from https://finance.yahoo.com/quote/LUV?p=LUV The best and worst US airlines in 2017. (2017, February 27). Retrieved from https://thepointsguy.com/guide/best-and-worst-airlines-2017/ 62