Southwest Airlines has become the largest airline in the U.S. by adopting strategies like low fares, fuel hedging, and investing in employees. By keeping costs low through measures like lighter aircraft and high passenger capacity, Southwest is able to offer consistently low fares while maintaining quality service. The company also uses promotional pricing, psychological discounts, and a customer loyalty program to stimulate repeat travel. Through these strategies, Southwest has achieved significant success and profitability that its competitors have struggled to replicate. However, high-speed rail could potentially attract customers away from air travel in the future.

1. “Ding! You are now free to
move around country “
With
Shivam Gupta
IIT Roorkee
A strategy or common sense……….

2. Southwest Airlines was established in 1967 by Herb Kelleher
and adopted its current name (Southwest Airlines) in 1971.
It refers it self as LUV “LOVE” airline……………….
Now it has largest airline Market
SHAREin U.S.

3. Its product class

4. Word of Mouth …
Success Story : U. S. most Admired
Airlines …

5. Why
only
????????
Got
success…..

6. Because of …
Quality

7. Low fare GAME
Southwest makes their customers believe why it is cheaper to travel in Southwest
rather than other airlines without compromising in its quality service ……

8. Also do Promotionalpricing on special events and
psychological discounting to
stimulate its customers for more travel..
Southwest uses VALUEpricing method

9. Other favorable services to
make a
SUSTAINABLE
relationship with
customers..

10. The objective isTo become a PRODUCT
QUALITY LEADER….

11. How Both low
price and best
Qualities are
possible
simultaneously??????
??

12. Its Strategy of fuel hedging
Southwest makes its planes lighterand it caries
largest number of passengers at a time
40% price of ticket goes for fuel .
So Southwest has saved more than $2 billion with this
strategy..

13. Southwest looks for and hire people who generate enthusiasm.
Company cares for its workers , so workers care for it
too and increase its productivity……

14. Marketing Strategies …..
Southwestern publishes its own
magazine read by 5 million
traveller /issue.
Participate in Charitable
giving ,
Environmental
initiation to gain
public relation
and brand image

17. Why some
other
competitors
didn’t follow
its business
model ??????

19. Future
Southwest doesn’t compete
only with other airlines but
also with other means of
transport , in future any
innovated fast
bullet train can attract
its customers ,and it would be
very hard for Southwest to
compete with it ……….

20. It’s time for landing ….. But before it, lets
RECAP
Entry
as
Because of its
Market
Leader
of U.S.
airline.
If LUV can do it so do u in your field ………..

21. DISCLAIMER
Created by SHIVAM GUPTA ,IIT ROOKEE ,during my marketing internship
under the guidance of Prof. SAMEER MATHUR ,IIM
LUCKNOW .
Please see the link
www.IIMLUCKNOW.com