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SOUTHWEST AIRLINES
Ladies and Gentlemen, please take your seat and
fasten your seatbelt !	
  
Entered
airline
industry in
1971 with
little money
but lots of
personality
Marketed as
LUV airline
Heart as its
logo
Flight
attendants in
red-orange
pants served
Love Bites
(Peanuts) and
Love Potions
(drinks)
INTERIOR OF
AIRPLANES
LOGO	
  
Logo
WHY
............................................................................................................................GREW
LOW FARES
FREQUENT FLIGHTS
BAGS FLY FREE
ON-TIME ARRIVALS 	
  
	
  
HUMOUR TO
POKE FUN &
FRIENDLY
ENVIRONMENT
Inflight
Announcement:
“Ding! You are now
free to move around
the country”
Integrated Low Cost Strategy
use single aircraft model(Boeing 737)
use secondary airports
fly short routes
low cost meals
no reserved seats	
  
 
Promotion Strategy
Outrageous antics to generate
word of mouth
Humorous ads
Rewards to frequent buyers:
Premium credit card
	
  
	
  
	
  
	
  
	
  	
  
PRICING STRATEGY
Followed Market
Penetration Pricing
Strategy- Keeps fares
low in order to
maximize market share
	
  
	
  
	
  
	
  
Price discrimination strategy-
Third degree price discrimination
Southwest airlines recognized that any given
flights has different types of travellers i.e.
Business travellers v/s Vacation travellers
Different price charged from such travellers
in order to maximize profits
Example: Premium credit cards
Q. Southwest has mastered the low-price model
and has the financial results to prove it. Why
don’t the other airlines copy Southwest’s model?
•  Business model of southwest airlines is
unique and cost effective
•  Operations are streamlined- main USP
•  Difficult to copy philosophy of them
because of uniqueness (Humor, low fare,
entertainment)
•  Consumers may not willing to switch
until they get better
Q. What risks does Southwest face? Can it continue
to thrive as a low-cost airline when tough
economic times hit?
•  Southwest Airlines have to run flight even when
half seats are filled which may lead to loss of
revenue
•  Price wars are going on with competitors
causing southwest airlines to keep its fare very
low
•  Fares below cost due to promises may affect
profitability of company
•  Working in tough economic times will be
difficult which may make company to run
flights on losses affecting company’s reputation
as well as profitability
	
  
SUMMARY 	
  	
  
•  Southwest Airlines’ mission is to provide
highest customer service at low fare.
•  It grew because of low fare, frequent
flights, bag free service and its unique
model.
•  It use humor throughout its
communication process in order to create
friendly environment.
 
Created by Charu Jain, JDMC DU, during a
marketing internship
by
Prof. Sameer Mathur,
IIM LUCKNOW

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Southwest Airlines

  • 1. SOUTHWEST AIRLINES Ladies and Gentlemen, please take your seat and fasten your seatbelt !  
  • 2. Entered airline industry in 1971 with little money but lots of personality
  • 3. Marketed as LUV airline Heart as its logo Flight attendants in red-orange pants served Love Bites (Peanuts) and Love Potions (drinks)
  • 4.
  • 12. HUMOUR TO POKE FUN & FRIENDLY ENVIRONMENT Inflight Announcement: “Ding! You are now free to move around the country”
  • 13. Integrated Low Cost Strategy use single aircraft model(Boeing 737) use secondary airports fly short routes low cost meals no reserved seats  
  • 14.   Promotion Strategy Outrageous antics to generate word of mouth Humorous ads Rewards to frequent buyers: Premium credit card            
  • 15.
  • 16. PRICING STRATEGY Followed Market Penetration Pricing Strategy- Keeps fares low in order to maximize market share        
  • 17. Price discrimination strategy- Third degree price discrimination Southwest airlines recognized that any given flights has different types of travellers i.e. Business travellers v/s Vacation travellers Different price charged from such travellers in order to maximize profits Example: Premium credit cards
  • 18. Q. Southwest has mastered the low-price model and has the financial results to prove it. Why don’t the other airlines copy Southwest’s model? •  Business model of southwest airlines is unique and cost effective •  Operations are streamlined- main USP •  Difficult to copy philosophy of them because of uniqueness (Humor, low fare, entertainment) •  Consumers may not willing to switch until they get better
  • 19. Q. What risks does Southwest face? Can it continue to thrive as a low-cost airline when tough economic times hit? •  Southwest Airlines have to run flight even when half seats are filled which may lead to loss of revenue •  Price wars are going on with competitors causing southwest airlines to keep its fare very low •  Fares below cost due to promises may affect profitability of company •  Working in tough economic times will be difficult which may make company to run flights on losses affecting company’s reputation as well as profitability  
  • 20. SUMMARY     •  Southwest Airlines’ mission is to provide highest customer service at low fare. •  It grew because of low fare, frequent flights, bag free service and its unique model. •  It use humor throughout its communication process in order to create friendly environment.
  • 21.   Created by Charu Jain, JDMC DU, during a marketing internship by Prof. Sameer Mathur, IIM LUCKNOW