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TARGET
MARKET
Justin Galligan, Rochelle Robnett, Lacey
Link, Josh Hernandez, & Sara Bradshaw
Market size
● Revenue increased by an average of 4.8%
from 2004-2008
● Dropped 16% the following year
● What is $138.3b x .246?
● $34.25 Billion dollars spent by business in
2013(IBISWorld)
Product Life Cycle
State of Decline:
● Product saturation
● Increasing
Consolidation
● limited
technological
innovation
Poor Performance:
● Soaring crude oil
prices
● Bad Economy
Future Outlook
Projected growth through 2017
● Economy is slowly recovering which drives
business activity
● Technological advances on the way
Market Share - United
Domestic Market Share - 15.7%
Business Market Share - 13.49%
Market Share - Delta
Domestic Market Share - 16.3%
Business Market Share - 21.11%
Market Share - Southwest
Domestic Market Share - 15.4%
Business market share - 10.26%
Seats per Kilometer
Southwest - 0.09
United - 0.04
Delta - 0.06
Define
● Business Travelers
● Income 100K
● Travel over 5 times a year
3 Micro Segments
● Entrepreneur Travelers
● Small Business Travelers
● Corporate Travelers
Entrepreneur Travelers
● Have start-ups
● PRIZM: Up & Comers
● Risk takers, self starters
● Age:18-34
● Income: $50,863
● No children & own homes
● College Educated
Geographic-Entrepreneurs
Psychographic-Entrepreneur
Small Business Travelers
● Small business = <500 employees?
● PRIZM: Upward Bound
● Come from traditional households
● Average age 50
● Income: $71,690
● Have children & own homes
● College Educated
Geographic-Small Business
Psychographic-Small Business
Corporate Business Travelers
● Corporation = Legally declared a separate entity from its
owners (Incorporated)
● PRIZM: Kids & Cul-de-sacs
● Average Age: 34.5 years old
● Average Income: $70, 298 per year
● Have children and own homes
● College Educated
● High Percentage of Hispanic and Asian Americans
Geographic - Corporate
Psychographic - Corporate
● Target
● Fantasy Sports
● Parents Magazine
● X Games
● Honda Odyssey
Recommend Corporate Travelers
● Stabilizing Economy means increased need for
business traveling
● Companies are trying to save money on Travel
Expenses
● Corporations must travel often regardless of economy
The Corporate Business Traveler
● GBA Survey
● 78% prefer meeting in person
● 46% travel on a budget
● Benefits Southwest
The Corporate Business Traveler
● Five Different Types of Travelers
○ Veteran
○ Road Weary
○ Wide- eyed and Anxious
○ Passionate High-Tech
○ New Recruit
Travelers by Generational Cohort
● Baby Boomers
○ Largest Demographic
○ 40% Business Travel
○ Uses Loyalty Programs
○ The Veteran Traveler
○ Amenities and Lounges
Travelers by Generational Cohort
● Generation X
○ 1965-1976
○ Not considered Workaholics
○ Tech Savvy
○ Road Weary Traveler
○ Amenities and Lounges
Travelers by Generational Cohort
● Generation Y
○ 1977-1994
○ The Passionate High Tech Traveler
○ Amenities and Lounges
Target Market Grid
Risk of partnerships
● Good domestic
coverage
● Legal ramifications
● Jeopardizing
customer service
In-Air amenities
● USB Ports
● Electrical Outlets
● Discounted WIFI
Lounges
● Internet
● Snacks and Drinks
● TV
● Restrooms
Challenging United and Delta
In air amenities and lounges will allow
southwest to challenge them without changing
their current business model.

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Target market presentation

Editor's Notes

  1. Delta holds 16. percent of the market share for domestic air passenger transportation. this makes up 21.1 percent of their total revenue .