Introduction to the Marketing Success Story of WestJet Company
WestJet Airlines Company is one of the major airlines in Canada, and as per results in 2014 became one of the market’s best players, growing around 20% and significantly exceeding the TSX* revenue index by almost 8%1. The results achieved by WestJet in 2014 were primarily because of the successful marketing strategy implemented and consistently maintained throughout the years. One of the most effective cause-related marketing activities2 was outstanding association of WestJet with their customers in 2013 known publicly as Christmas Miracle: Real time giving**. The campaign, taken on the video instigated travelers to share their desires with Santa before boarding, and pleasant surprise
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It made a great social impact as visits on WestJet’s website increased two times in 2013; reservations get higher to circa 80 percent compared with the same month of the last year, and sales level increased by circa 90 percent3.
Key Factors of the Marketing Success
WestJet implemented a strategic marketing communication mix, which achieved to deliver outstanding media impressions and exceptional increase in sales right after following the marketing event. Remarkable emotional message of joy and happiness transmitted the spirit of Christmas through communication tools of public relations and direct marketing and after enormous audience effectively reached through digital type of media4. The success associated with main marketing metrics for increased sales, profits, awareness, market share, customer satisfaction and advocacy5.
WestJet communication tools targeted to deliver marketing strategy with focus on customer service. The marketing approaches used by the company are distinctive as their concentration to make not only customers but many people happy is seen in many of their
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Competitive Analysis
As shown in Table 4, (Appendix 2)29 WestJet directly compete with Air Canada and throughout the years constantly increased the market share30. For WestJet to realise the plan “Be a top 5 global airline by 2016,” is to have challenging competition on the international level.31 Table 4 (Appendix 3) is market share/revenue analysis as of mid of 2013 (CAPA, 2014).32
WestJet is just trying to step into the intercontinental market with start-up flight to Dublin, with representation of market share of circa 5%. WestJet is relatively new not only for international representation but comparing to other airlines such as Porter, Air Canada, American and United have very young but successful history of stable growth, which is about 19 years old.33
Strengths and Weaknesses
Over the long list of strengths34 in table 5 (Appendix 3) the most crucial for further growth are strong corporate culture, brand and marketing focus with constant revenue increase over the last 7
Air Canada has promoted itself in the targeted audience through efficient and effective positioning strategy. Onboard Cafe, Maple Leaf Lounges, Aeroplan loyalty program, and Air Canada Altitude program. "For the frequent travelers; such as adventures, dreamers, world explorers Altitude is a ticket to enrich their worldly experience".
According to a recent survey by SFP (Spencer Francey Peters), a North American branding agency and The Strategic Counsel, WestJet came in at number 3 in Canada's best managed brands, while Air Canada bottomed out in last place. "Respondents ranked companies based on a number of criteria relating to delivery of brand promise including consumer focus, customer service, brand values, reliability, consistency, value, trustworthiness and respect" (par3 Best Managed Brands). The interesting part of this survey, is that by having consumers respond to these criteria, the companies' brands are judged not by how much value the consumer sees in the product and service they are purchasing, and not just the popularity or commonplace the brand may have.
The airline industry has long attempted to segment the air travel market in order to effectively target its constituents. The classic airline model consists of First Class, Business Class and Economy, and the demographics that make up the classes have both similarities and differences to the other classes. For instance there may be similarities between business class travellers on a particular flight, but they will not all be travelling for the same reason. An almost-universal characteristic of air travel is that customers do not fly for the sake of flying; the destination is the important element and the travel is a by-product, a means-to-an-end that involves the necessity of an aircraft that gets the customer from point A to point B. Because the reasons can differ greatly in the motivations for a customer wanting to fly, it can be difficult to divide the market into discrete segments, that is, there is always going to be overlap in the preferences and characteristics of any given segment. With that in mind, the commonalities that are shared between the clientele that make up the respective classes can easily withstand analysis.
The main focus of the company is to take care of the WestJetters and they in turn will take care of the guests which in turn will play an essential role in the growth of the business and in executing the business strategies.
Over the past couple of months, Qantas have received an increase of 2% in share prices. The company should strive to celebrate upon these achievements by offering bonuses to employees. This is crucial as this will keep employees motivated in the workplace (Rundell, 2014).
EasyJet’s provision of low cost flights and it basis of “the earlier you book the ticket, the less you pay“ gives it opportunity to target its customers. EasyJet also provides a number of aircrafts in various airports thus easily accessibility of their services; this acts as it drivers in the market control and competitive advantage. It also has the advantage of providing other services such as car hiring, internet services and restaurants (Saleem, 2010). The ‘Europe by easy jet’ established a resounding brand positioning that is effective across all the main markets and enhanced visits to easyJet.com. EasyJet targets the consumers through various channels that help them to reduce marketing cost per sales. In 2001, EasyJet launched ‘easy Jet mobile app” which was downloaded by over six million people which accounted for 5% of overall sales. Mobile boarding cards are available through the app and make it easy for cust...
Northwest Airlines is one of the pioneers in the airline transportation industry and is ranked at the fourth largest air carrier in the United States today. The success of the carrier depends on the quality and reliability of the service at a reasonable price. Close competitors force Northwest to innovate their services by increasing efficiency. This essay will try to examine different perspectives in the services needed to successfully complete the company’s objectives. The analysis will explain historical and financial perspectives that may give a better understanding of the current market trend of the organization.
Due to the increased use of the internet, it is becoming more and more easier to book online. This allows customers to book flights easier and increase Jet2’s revenue. Revenue is increased through not having to deliver or post tickets out to its customers, in comparison with other non-internet based airlines. It is believed that over 97% of Jet2’s customers book online, which further highlights Jet2’s emphasis on online bookings.
Addition to caring to the guests, westjet involve in many community investment, which reveal that westjet's culture of caring has not ended at the aircraft door. (3)Westjet take contribution to the society as their responsibility and participate in charity programs, such as Missing Children Society of Canada and The Canadian National Institute for the Blind. It is not hard to say that westjet is very caring and thoughtful.
Qantas uses many media channels like TV, print, online ads etc to market itself. Qantas frequent flier, loyalty program is considered as one of the best loyalty options, it offers a lot of facilities to the frequent customers of Qantas, and maintains the balance between holding new customers and acquiring new ones. Aboriginal and Torres strait islander initiative, in association with Australian community of Aboriginals, Qantas promotes the original arts and culture of Australia, branding itself as the ‘spirit of Australia’. Offering sophisticated, hi-tech facilities, and high safety records, Qantas has developed itself as a premium brand recognized as a status everywhere. The brand name itself attracts millions of passengers, who trust and
Global competition- As more companies are coming into this airline market so there can be a threat to Air Canada from these
It has stayed relevant to the market through its propelled philosophy of relationships to generate profits in the business. Since its establishment in Monroe, Louisiana the once tiny airline has stretched to greater heights serving in 6 continents. It has also established a distinguishable name among its competitors with a reputation of leading customer services. However, even as an established venture, the company needs to maximize its profits in order to stay in business and expand in to new territories beyond its conquered boundaries. A strategic analysis was carried out by our team to establish the company’s current situation. A SWOT analysis was performed to come up with three referenced, strategic alternatives. This alternatives are meant to act as a strategic guidance to the company in order to enhance growth. The strategic recommendation provided will improve and enable the business to cope with the competitors while the implementation of the strategy section will outline the way to go about achieving these alternatives in the business setting. Lastly, we put up a discussion on the evaluation procedures and necessary controls for the
... this and their marketing strategy will be key if they are to remain viable, grow and compete in the market.
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.