Print-friendlyPrint-friendly

Marketing plan outline for Southwest Airlines



The following is a marketing plan outline for Southwest Airlines, the US's current dominant low-cost domestic air travel carrier.

SWOT Analysis
Strengths
- Low cost structure relative to large carriers.
- High number of established, high-frequency discount routes.
- Operational efficiencies relative to large and low-cost carriers.
- Modern, cost efficient flight network model.

Weaknesses
- Decreasing differentiation relative to other low-cost-carriers.
- Aircraft type versus long, transcontinental routes.
- Aging company patriarch and visionary - Herb Kelleher.
- Overcoming the automobile for short, consumer trips

Opportunities
- Repeal of the Wright Amendment.
- ATA Domestic Code-Sharing Agreement.
- Pittsburgh Airport Expansion.

Threats
- Long term fuel prices and hedge activities.
- Rising labor costs.
- New low-cost carriers.
- Dallas Fort-Worth Airport/ the Wright Amendment.
- New regional jets

Marketing Objectives
These marketing objectives will serve as targets for Southwest:
1) Increase the number of daily Pittsburgh departures 350% in 18 months.
Pittsburgh is scheduled to go into service in May 2005 and is expected to become a strong city for the company.

2) Increase penetration by 20% within key ATA code-sharing markets,
including New York, Newark, and Boston.

3) Improve overall company Load Factor to: 71%.

Target Market
The target market for Southwest Airlines consists of the following:
- Medium- to high-frequency business travelers. (1-3 roundtrips per month)
- Male/female professionals aged 24-55 years of age.
- Price/cost conscious
- Commuting distances ranging from 750 - 1700 miles
- Internet/technology savvy
- 30-60 day trip planners

For the purpose of this marketing plan, target consumers living within the following key, high-density population centers will receive particular attention:
- Chicago - Las Vegas
- Houston - New York/LaGuardia
- Baltimore/Washington - New Jersey/Newark
- Dallas - Boston
- Pittsburgh/Philadelphia

Competitive Strategies
The following strategies represent starting points:
1) Stress the 'Southwest Experience' that offers travelers cost, convenience and
enjoyment while utilizing the carrier.

2) Differentiate on scheduling convenience and frequency relative to competitors.

3) Differentiate with consumer services connected to revamped Rapid
Rewards Program.

Implementation
In preparation for the creative portion on WVU IMC project, a basic marketing plan outline for Southwest Airlines was created. This is the first rough outline.

To put Southwest's strategy into action, the following components will be implemented:
1) Expansion of Southwest's web-based service architecture that provides
advanced services to Rapid Rewards customers.

2) Modernization/refreshment of long running 'Wanna Get Away' campaign
using regional/local versioning.

3) Revamping of the Rapid Rewards program to entice short-distance, high frequency business travelers.

Evaluation
The evaluation will focus on travelers in key Southwest markets, and measure the following items pre-, during-, and post-program implementation. The plan will measure consumer identification and awareness before the campaign begins, and then measure it after implementation. Factors that the program will outline - such as load factor targets, etc - will be able to be objective measured after the campaign.




Integrated for Your Success ™