Marketing Strategies (MKT500)

Industry/Company Analysis Presentation

Southwest Airlines

Cevdet KIZILGokhan BAYKAL

New Product/Service Development

Expand service to Denver, Miami and Minneapolis.

Short-haul, frequency, point-to-point and low fare service convenience.

Similar in terms of daily departures and number of passengers (Phoenix, Las Vegas, Houston).

These three cities are currently not served by Southwest Airlines.

Target Market

Moderate income

No frill value minded

No lower uppers, no upper uppers

High raters of low price (consumer evaluation grid)

Mainly consumer travelers rather than business travelers

Marketing objective

Increasing sales 3% in the first year up to 5% in the second year

Entering Denver, Miami and Minneapolis cities.

Pricing Strategy

Penetration Pricing Strategy

Higher volume with lower price.

Best against price sensitive customers and existing & potential competitors

No premium pricing.

Distribution Strategy

Direct Distribution

No Intermediaries (e.g. travel agencies)

Total quality control and lower costs

Website/Toll-Free Call Center

Marketing Budget

Objective and Task Method

On the basis of dollar amounts.

Advertising and Promotion

Pull selling strategy Newspaper ads TV/radio Bulletin boards Websites Newly painted planes Public Relations Events E-mail advertising

Monitoring and Control

Checking financials Monitoring market share in new markets. Analyze departure and arrival stats. Review safety stats Track website usage Control e-mail list subscriptions Online and face-to-face surveys Controlling plan as a whole annually