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Marketing strategy for american airlines
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Flying High with United Airlines BUS150-97077 Introduction to Marketing Megan Bousquet ID #: C02623091 For: Professor Lockwood 3/1/2017 Spring Semester Session A Due: March 5, 2017 MEMO To: CEO of United Airlines From: Megan Bousquet, Marketing Consultant Date: 03/01/2017 Subject: New Marketing Campaign Introduction My name is Megan Bousquet and I am a hired marketing consultant for United Airlines. I have done my research into how customers feel about this company and what they feel the pros and cons are. United Airlines has many pros and cons as many other airlines and I am here to report my findings and then make a recommendation for a new marketing campaign. I will be focusing on the positives I have found through my research and briefly …show more content…
What is United Airlines doing right? One of the biggest positives people are talking about is the ease of use of your website and app. I have personally used both, and I can agree both are fantastic. I think some of the features we can highlight on the website and app are check-in, flight status, gate information, airport maps, and ability to buy tickets on both. In their reviews customers who commented on the app and website said it was very handy to have the information for their flights right at their fingertips especially while running a tight schedule. Most airlines have an app or website but they aren’t as convenient or easy to use as United’s and that is why we need to highlight it in the new …show more content…
Our most positive features include the website and app, stopovers, no fees on date changes, and United Miles. I think the most efficient ways of implementing this strategy is through TV commercials and preroll video ads. I would call this marketing campaign. “Flying High with United Airlines”. My vision for the advertisement is several different clips of united employees stating the following. “United Airlines is the airline you want to fly with weather you are on vacation or on business. Log on to our easy to website or app available on all smartphones. Our easy to use app can be used to track flights and your United Miles. Earning miles is easy to do, fly with United Airlines and rack up miles to take a nice relaxing vacation to Paris. With our stopover function you can even stop in Rome for a few days too. Want to extend your vacation? We can do that too. There are no fees for changing the dates of your flight! Let us take care of you and come fly the friendly
As Frontier approached its 10th year of operation, Frontier officials realized an image shift was in order. The airline had established a reputation for friendly and reliable service, and reasonable airfares, mainly appealing to leisure travelers. But they reali...
Spirit Airlines has long been considered an unorthodox airline. They, of course, address all four P’s in their marketing strategy; however, they focus a large amount of their effort on price and promotion. They focus on cutting price through “unbundling”. They focus on promotion through taking advantage of social issues and breaking news. Many advertisements and deals promoted by Spirit have given the public a definite shock-factor. Spirit has made two objectives very clear: they are furious at getting the customer the lowest fare possible by any means necessary, and they will similarly use any means necessary to get those potential customers to notice those fares. Such a blatant marketing strategy works. Even going up against some big competition, Spirit finds ways to be competitive and successful in flagrant fashion.
“Our people are our single greatest strength and most enduring long-term competitive advantage,” reports CEO Gary Kelly on the Southwest Airline website (https://www.southwest.com/html/about-southwest). The company works hard to hire great individuals and then rewards and supports them to make satisfied, productive employees (Ross & Beath, 2007). In fact, Southwest Airlines has received repeated recognition as a great place to work (“Southwest Corporate Fact Sheet,” n.d.). As a result, Southwest Airlines is able to provide a low-cost, fun-cultured experience with excellent customer service (Ross & Beath, 2007). This has allowed the company to build its final strength in this evaluation: a strong brand
The code of conduct for United Airlines starts out with a brief purpose that is not unlike many other large companies. The document is clear that the purpose is to help everyone covered by the document
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
Even though Southwest offers no-frills, there is still a high degree of customer satisfaction that continuously builds customer loyalty for the company. As mentioned, Southwest offers low prices on their airplane tickets. Also, Southwest is renowned in the airline industry for its short turnaround time on arrivals and departures. And since people's biggest concern nowadays is money and time, having low price airline tickets to cater their traveling needs in a shorter period of time will surely satisfy them. Moreover, aside from the low prices offered, what attracts to customers is Southwest’s way in dealing with them. The employees of the airline treat their customers well and really listen to their needs.
Flying across the globe can be a scary journey, but with Delta consumer feel the inviting, caring, and great quality that Delta stands for. When a customer enters onto a Delta plane the customer can start to feel the inviting atmosphere almost immediately. The customer sits down in the seat personally selected by the customer, as soon as the plane is in the air, beverages and snacks are being dispersed amongst the cabin. Delta Airlines has flights to over 326 destinations in 59
Determining the marketing strategy for a massive airline, like United Airlines, is fairly difficult and extremely complex. Why? Because each city, season, route, and time of day will have some minor to major difference in how the airline presents itself. The difficulty in marketing and advertising for an airline is harder than other industries because each airline is selling thousands of different products. At first glance, United is selling flights, and that seems to encompass one product. However, selling a flight from Denver to Tokyo on a Monday is extremely different than selling a flight from Cleveland to Cincinnati on a Saturday night. The people flying that route, the cost, the airplane flow, the services provided, and the frequency/length of the flights all vary greatly from route to route, and the marketing strategies will fall in line with those difference. Although it would be impossible to determine an exact strategies, we will attempt to determine what United attempts to focus on, where they attempt to focus, and what their goals, both long and short ...
Southwest has done what others in its industry seem to struggle to do, which is to make flying fun. This has been the cornerstone for how the Southwest operates, thinks, and plans. Many of the policies, procedures, and practices Southwest has used are aimed directly at providing patrons with a unique, fun, and enjoyable experience. This value and the effort Southwest has made to place customers at the forefront of its plans and strategy, has paid off as the company is one of the most popular and well-respected in the transportation industry.
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
The mission of Southwest Airlines is a dedication to the highest quality of service delivered with warmth, friendliness, individual pride, and company spirit (Mission…, 2007). The company also provides opportunities for learning and personal growth to each employee. Creativity and innovation is very important and highly encouraged, for the purposes of improving effectiveness. Employees are to be provided the same concern, respect, and caring attitude within the organization that the employees are expected to share with the customer. Southwest Airlines was initially created to be a low-cost alternative to high price of intra-Texas air carriers (Freiberg, 1996). Southwest’s fares were originally supposed to compete with car and bus transportation. It was a little airline, and it would withstand the test of time. As a discount, no-frills airline, it would provide stiff competition for larger airlines. Their strategy was to operate at low cost, offering no food, no movies, no first class, and no reserved seats. They created their own market and provided increased turnaround times at the gate, by avoiding hub-and-spoke airports and opting for short-haul, direct flights. Through this market approach, Southwest has a majority of market share in the markets they serve.
In addition to e-commerce, the company still runs television ads, puts up billboards, and occasionally displays ads in magazine spreads. They have cut budget spending for these items because the company does not feel they are as popular and they are not reaching their main customer target (Newsroom, 2015). For instance, if a customer wants to read a magazine or a newspaper article, many times the customer is using their smartphone, tablet, or computer to view these types of sources. Delta has taken advantage of this new trend for their advertising techniques. According to Tnooz (2013), “85% of Delta Airlines flight check-in globally take place via “preferred channels”--- Facebook, mobile apps, Delta.com, and airport kiosks, or any venue that doesn’t involve standing in line at a counter.” As an example, to show what percentage of frequent fliers carry smart phones, figure 1 displays a pie chart to show the
There are few things that are impressive about Southwest Airlines first one is how they treat the employees. For Southwest Airlines employees are first and customers are second. If the employees are treated well that will bring in happy customers. Next is that Southwest is not only with their low prices but is able to create a competitive advantage by offering a fun and humorous experience when flying. Finally another impressive fact is when Herb Kelleher’s retire from CEO position yet remained a Southwest employee till July 2014. Even after the retirement he was still active with the Southwest Airlines that reflected his enthusiasm and dedication for the
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements to the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion. In a dysfunctional time for the airline industry, most airlines, especially major carriers, are adapting the concept of "doing less with more." One low-cost carrier, JetBlue, is changing the domestic aviation landscape in this regard and is defying the odds. Here is a company that has examined each marketing mix elements carefully, has adapted them to its customer’s needs, and is succeeding because of this approach.
The company’s cost leadership strategy of keeping their fares low to ensure frequent and convenient travel along with its playful, fun poking advertising, exciting promotional ways, and various vibrant ways of operation enabled the company to expand exuded its effect on both customer and competitors, thus lowering the prices in the new market. This is the ‘Southwest