Final Report - Westjet

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School

University of Windsor *

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Course

1310

Subject

Marketing

Date

Jan 9, 2024

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docx

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31

Uploaded by kashishramnani15

Report
Final Report Table of Contents Executive Summary Contextual Overview Micro-Environment Macro-Environment SWOT Analysis Current Marketing Strategy & Recommendations Product Price Place Promotion Conclusion References
Contextual Overview WestJet, the Canadian airline company, took flight on June 27, 1994, in Calgary, founded by David Neely Men, Mark Hill, Tim Morgan, Clive Beato, and Donald Bell. These visionaries drew inspiration from prior established low-cost airline models, (specifically Morris Air and Southwest Airlines). Since its inaugural flight in 1996, WestJet has been dedicated to providing secure, welcoming, and cost-effective air transportation globally (WestJet, 2023). Their first flight on February 29, 1996, covered five western cities, extending as far as Winnipeg. In 2023, WestJet boasts domestic travel across all 10 Canadian provinces and three territories, serving 24 countries and over 109 destinations internationally. Micro-Environment Exploring WestJet's micro-environment, supplier, and intermediary relationships with alternative booking platforms like Flight Hub and Kayak contribute to overall reliability and service efficiency. Diversifying suppliers, such as Flight Hub and Kayak, mitigates risks tied to dependence on a single provider, ensuring unified services for customers. In public relations, WestJet actively supports charitable causes, partnering with the Canadian Cancer Association since 2013 (WestJet, 2016). Initiatives like WestJet Fares for Kids, launched in 2007, currently support seven national charities, impacting children and youth positively. Over
the last 15 years, WestJet has donated more than 100,000 flights, fostering goodwill, building a positive brand image, and aligning operations with societal expectations. Focusing on customers, WestJet prioritizes personalized travel experiences, offering upgrades to business or premium class with exclusive snacks, beverages, hot meals, and relaxation in an exclusive cabin. Loyalty rewards programs help customers save money and unlock exclusive discounts. Competing with other Canadian airlines, particularly Air Canada, as a company whole, WestJet upholds a customer-centric approach and is active in community involvement, correlating with WestJet's brand identity being caring at its core and being people-powered. Macro-Environment Investigating WestJet's macro environment, the company actively engages in the community with initiatives like WestJet's Care for Kids, displaying commitment beyond profit-making. Despite attracting a high customer base with low airfares, challenges like economic downturns and pandemics, such as COVID-19, and fuel price fluctuations remain potential hurdles. In terms of technology, WestJet invests in innovative aircraft technology, exemplified by the fuel-efficient CFM56-7B turbofan engines and the new modifications to the airlines 737-700 aircraft by the help and partnership with Aero Design lab for greater reduced emissions and improved fuel efficiency (WestJet, 2022). The airline also explores onboard entertainment like Netflix, movies, and music, enhancing the passenger experience (WestJet, 2022). Demographically, WestJet caters to a diverse customer segment, spanning various travel needs and age groups. Culturally, WestJet's core values align with North American culture, emphasizing a high-quality service experience. Legally, WestJet commits to compliance with evolving aviation laws and regulations, adjusting procedures and policies accordingly (WestJet, 2022). Politically, adherence to Transport Canada's guidelines for pre-board security screening ensures operational integrity and passenger safety. In environmental matters, WestJet invests in fuel-efficient aircraft and environmentally conscious procedures, addressing global environmental concerns.
SWOT Analysis SWOT TABLE (WESTJET AIRLINES) STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Investments in modern fuel-efficient aircrafts dependence on North American market partnerships for global reach intense competitions in the airline industry (especially Air Canada) customer and quality service delivery limited global presence expansion to new markets regulatory changes impacting aviation industry WestJet rewards loyalty program vulnerability to economic fluctuations demand growth for sustainable travel environmental concerns affecting airline operations commitment to community support fee for checked luggage technology advancement for improved operations excessive cost in fuel = difficulty to provide services at low fares WestJet stands as a strong and leading entity within the Canadian airline industry. Some notable strengths contributing to its success include the company's unwavering dedication to customer satisfaction and the delivery of top-notch service quality.
The establishment of WestJet Rewards, a loyalty program, further augments customer loyalty by fostering a positive brand image (WestJet, 2022). This initiative enables customers to save money while traveling and earn rewards, enhancing their overall experience. Another pivotal strength lies in the company's investment in fuel-efficient aircraft, demonstrating a commitment to environmental sustainability and cost-effective operations. WestJet is also actively involved in the community, supporting charities, and encouraging employee volunteering for local communities across Canada. Despite numerous strengths, the company does face weaknesses. WestJet's significant reliance on the North American market exposes it to vulnerability, as economic fluctuations within this region can impact its financial stability. Moreover, the imposition of checked luggage fees represents another weakness, dissuading cost-conscious travelers and affecting overall competitiveness. For instance, one of WestJet's competitors, Air Canada, allows for one free checked bag in their comfort class (Economy plus) (Air Canada, 2023). Additionally, WestJet has limited global presence, hampering its ability to explore diverse markets and mitigate risks associated with regional economic challenges. Furthermore, WestJet encounters various threats, notably intense competition, especially from rivals like Air Canada, which serves a larger number of destinations. Changes in aviation industry regulations present challenges that demand adaptability and compliance. Environmental concerns also pose a significant threat, as increased scrutiny on airline operations may result in stringent regulations and operational adjustments. The inflated cost of fuel further intensifies these threats, making it challenging for WestJet to maintain low fares while upholding its standard quality services for customers.
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