Case Study: Southwest Airlines

1160 WordsFeb 17, 20125 Pages
Case study: Southwest Airlines 1. Southwest Airlines has been a highly successful undertaking. This is due in part to the marketing objectives it has set for itself. Its main objective was to create brand awareness/preference, customer value and be a market share leader. The next step was to come up with a marketing mix strategy of price, place, product and promotion to achieve its objective. Southwest cut out many amenities in order to differentiate itself from its competitors. Its main objectives were to become a market share leader, have the lowest airfare with a high frequency of flights to make profit. In order to cut costs for instance, they would use entertaining flight attendants opposed to electronic entertainment. The idea was…show more content…
These new comers in the market have provoked Southwest to tweak it’s strategy some. In order to differentiate itself from conventional airlines as well as the up and coming ones, Southwest has adopted strong brand building, customer assurance of its reliability, stability and convenience. This is something they feel will be very important in the near future. 4.) In the airline industry there are two types of pricing strategies, economy and premium. Under economy, the quality is low as well as the price. These types of firms are known as low cost carriers. Their price is based on things like no free meals and more but smaller seating. This style is more geared towards people trying to save money and that just want to get where they are going fast. Southwest falls under the economy category as does Ryanair and ATA in varying degrees. Premium pricing strategy involves high quality and high prices to match. These types of firms are known as full service carriers. Their price is based on fare classes that charge each customer as much as they are willing to pay. They offer more services for a higher fare and separate some of the services through classes like first, business, economy ect. This strategy is aimed at people who have more money to spend on amenities. Firms like Delta or British Airways fall under this heading. 5. Southwest

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