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Alaska Airlines resources and capabilities
Alaska airlines strategic company overview
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The timing of this assignment couldn’t be more fitting, as Alaska Airlines has just released a comprehensive overhaul of its brand and image, the first in 25 years (Alaska airlines unveils first). Often times when one hears of a company re-branding, it is in response to some form of adverse press event to distance the image of the company from that tarnish. However, in this case, Alaska Airlines simply seeks to modernize its brand image as it pursues increased economy of scope to new markets. Undeniably, having produced record earnings this past year, it is evident that Alaska Airlines marketing program and services are working for the company. Originally an Alaska and Pacific Northwest niche airline, Alaska Airlines expansion is taking …show more content…
Correspondingly, the brand overhaul includes a total makeover of the company image on all points of customer interaction, new more colorful aircraft livery, updated iconic Eskimo tail image, highlighting and improving upon some of their award-winning accomplishments, amenities and programs, while honoring the companies proud history, in an effort to reflect the true nature of the company as they seek new customer markets(Alaska airlines unveils major). Some of the imagery including the updated aircraft livery, Eskimo image and some of the increased onboard food amenities associated with the brand overhaul are depicted below in Figure 1 for …show more content…
283-284). One major benefit to the high visibility of aircraft livery is its service as a direct advertisement wherever the aircraft is flown. Deliberately, Alaska Airlines has added 90 new markets to its service in the past 5 years. Accordingly, as Alaska Airlines expands into new markets their name and image is already on display, making their existence and appearance well known to perspective customer groups. Additionally, Alaska Airlines recognizes the significant shift to online and mobile interactions having posted 71% increased revenue from mobile sales in 2015 over 2014 numbers. Despite, already possessing the only 5 star rated mobile app in the industry, the brand overall will only serve to improve upon the experience of mobile and online customer transactions in this modern and vital market placement (Alaska air group, inc.: Investor
The objective of this research report is to provide a thorough analysis of Alaska Airlines. In order to do this we chose to compare a similar company against them. The company in comparison is Spirit Airlines. Both companies compete in the same type of business through airline transportation. Many of their services include; security, safety, transportation of passengers as well as luggage, ensuring vehicle safety while in transit, concierge services, providing entertainment aboard plane, checking weather conditions prior to flight, and much more. All of the data gathered for this report was obtained from the company’s 10-k filings with the SEC.
Air Canada is Canada's biggest aircraft and the biggest supplier of booked traveler benefits in the Canadian market, the Canada-U.S. Trans outskirt showcase and in the worldwide market to and from Canada. In 2015, Air Canada together with its Air Canada Express provincial accomplices conveyed more than 41 million travelers, offering direct traveler administration to more than 200 goals on six landmasses. Air Canada is an establishing individual from Star
The U.S. airline industry experienced year-over-year growth in passenger revenues, in 2013, driven by strong demand for air travel.2 Additionally, on average, fuel costs were down in 2013 as compared to 2012.2 The U.S. airline industry is also a very competitive market. Due to government deregulation in 1978 there are few regulatory barriers to new entrants in the market, although there are other barriers to consider. Starting a new airline is very capital intensive. Purchasing a commercial airplane from Boeing can cost anywhere from $76million to over $300million.4 Another barrier to entry is risk in the industry. Airlines tend to experience volatile costs such as fuel prices, which can be difficult to predict in the long run. A regu...
After baseline studies indicated that Frontier Airlines was unrecognizable in its own core business area, they decided a new image was in order. Frontier released their new ad campaign “A Whole New Animal,” that built on their solid old brand, but conveyed their new goal – that they are affordable, flexible, accommodating, and comfortable. Frontier Airlines launched their new rebranding campaign calling itself "a whole different animal." The campaign uses the animals that are featured on the tails of the airline's airplanes, such as rabbits and foxes. By catching customer’s attention with talking animals and their tag line, Frontier Airlines is now a very recognizable airline.
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
Since its first grand opening in 1971, Southwest Airlines has shown steady growth, and now carries more passengers than any other low-cost carrier in the world (Wharton, 2010). To expand the business operations, Southwest Airlines took over AirTran in 2010 as a strategy to gain more market share for the Southeast region and international flights. However, the acquisition of AirTran brought upcoming challenges both internally and externally for Southwest Airlines. In this case analysis, the objectives are to focus on the change process post the merger with AirTran, and to evaluate alternatives to address the impacts of the merger. II.
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.
More than 37 years ago, Rollin King and Herb Kelleher got together and decided to start a different kind of airline. They began with one simple notion: If you get your passengers to their destinations when they want to get there, on time, at the lowest possible fares, and make darn sure they have a good time doing it, people will fly your airline. And you know what? They were right. What began as a small Texas airline has grown to become one of the largest airlines in America. Today, Southwest Airlines flies over 104 million passengers a year to 64 great cities all across the country, and we do it more than 3,400 times a day.
1. Issues 2. American Airlines’ objectives 3. The airline industry 4. Market 5. Consumer needs 6. Brand image 7. Distribution system 8. Pricing 9. Marketing related strategies 10. Assumptions and risks
In the airline industry, Southwest Airlines is considered a true innovator. By shaking up the rules of flying and improving upon inefficient industry norms, Southwest has quickly grown by leaps and bounds. From the very start, Southwest Airlines' goals were to make a profit, achieve job security for every employee, and make flying affordable for more people (Southwest,2007). Southwest has not strayed from these goals. It does not buy huge aircrafts, fly international routes or try to go head to head with the major carriers; and thanks to a great planning, Southwest airlines has become the most successful airline company in the U.S., if not the world.
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.
Southwest Airlines has effectively used a variety of promotional elements in its integrated marketing communications, making it one of America’s largest airlines with 3,300 flights a day to 72 domestic cities. Southwest Airlines has used all four possible elements of the promotion mix: advertising, public relations, personal selling, and sales promotion, but has focused primarily on advertising and public relations to add value to the product offered to customers. Its focus on advertising and public relations is directly related to its large size and it’s nationwide reach. Also, advertising and public relations are the most cost-efficient methods of promotion, and an airline as large as Southwest is forced to have promotional elements that benefit from economies of scale.
Improvements that have been made since 1972 are foremost improvements to the product of "traveling": better in-flight entertainment, an upgrade to ground services, more flight destinations through the "Star Alliance" network and improved seats and space on board. There are however improvements in other areas than product improvements: 2 kinds of loyalty programs have been introduced, premium passengers' preferences are filed and the complaint management has been improved over the years. The differentiation of types of passengers and the expectation that they will fly SIA again, retaining clients through complaint management and loyalty programs all suggest a move into a customer intimacy value strategy. As service and CRM become more and more integrated at SIA, customer intimacy is strategically embedded in the organization.
... all the existing meanings and definitions of brands are provided. The history and evolution of brands are also looked upon.
In its simplest form, corporate identity is a function of design that includes the name of the organization, its logos, the interior of the buildings, and visual identification such as uniforms of the staff, vehicles and signage. For a long period, graphic designers have remained highly influential been hugely influential in two regards, in that they articulated the basic tenets of corporate identity formation and management and succeeded in keeping the subject on the agenda of senior managers. Currently, symbolism, or design, has assumed a greater role and has moved on from merely increasing organizational visibility, to a more serious position of communicating corporate strategy (Ollins, 1978). There were now three main types of visual identity such as Monolithic (single brand visual), Endorsed (parent brand endorsing a sub-brand) and Branded (a plethora