Southwest Airlines : Marketing Success

Currently, Southwest Airlines Company achieved the higher net income in 2013 and widened its field of operations by the integration with AirTran Airways. It seems Southwest’s business is going pretty well. However, there are numerous problems from competitors who will cause negative effect on Southwest’ market leader position and market shares. This marketing plan will make a careful analysis of the current activities of Southwest Airlines Company, and then this marketing plan will create how the company develop Southwest’s market leadership and higher market shares within 5years.

Every industry from healthcare to manufacturing faces environmental challenges. Many thoughtful companies respond through various marketing strategies. The airline industry, in particular, seen a host of environmental factors since 2001 including air quality, climate change, emissions, and noise regulations to name a few. Southwest airlines, in particular, have taken specific tactics to both blunt and exploit these environmental factors. As a result, Southwest has a market strategy that allows continuing as a major airline carrier in the United States.

In 1967, Rollin King and Herb Kelleher founded Southwest Airlines to link the cities of Dallas, Houston, and San Antonio (Parnell, 2014). However, Southwest didn’t schedule its first flight until 1971. In 1989, Southwest revenue passed $1 billion and were the first airline to have a homepage on the internet to sell their tickets (Parnell, 2014). According to Parnell, Southwest saves more money selling tickets online than they do sell them through an agent (2014). In addition, Southwest is the largest airline to carry the most passengers and their Rapid Rewards program is considered the favorite among others in the industry (Parnell, 2015). It’s also the reason why they’ve been profitable “38 consecutive years” (Parnell, 2014). In 2001 when

The company’s success is founded on two primary goals: providing exemplary customer service and helping its employees do so by giving them the same respect and accommodations. As the aviation transportation landscape has slowly changed, so has Southwest. Whereas they initially focused on “no frills” flying by eliminating frivolous amenities, they have slowly transitioned into a more competitive airline by adopting programs aimed to tailor customer experience. The Southwest of 2014 is different from the Southwest Airlines of the past, but their strategic plans have remained focused on customer service and employee retention.

From 1972 to 2002, Southwest Airlines stock returned more for their shareholders than any other stock in the same time period (Collins, 2006, Hospital Strategy IV: Southwest Airlines and thinking outside the box). Many companies have begun to take notice of the Southwest model; a model that allows Southwest to thrive while many of its contemporaries are faced with financial difficulties. The success of Southwest Airlines can be attributed to their structure. This structure has made it possible for Southwest Airlines founders Rollin King and Herb Kelleher to create a culture that was unique and ahead of its time: a people first culture. This culture is supported by Southwest 's human resource practices. Every aspect is dependant upon each

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

Southwest Airlines is the world’s largest low-cost carrier and has been in service 43 years. Southwest originated in Texas in 1971 and was to initially only serve Houston, Dallas, and San Antonio. In 1989 the airline had grown tremendously by exceeding the billion-dollar revenue mark. Southwest prides itself in differentiation by delivering exemplary customer service. The superior customer service is carried out by approximately 46,000 employees to over 100 million flyers annually. Southwest Airlines operates more than 3,600 flights daily on what is considered the largest fleet of Boeing aircrafts. People prefer flying with Southwest because of the customer friendly touches. Southwest offers great service, affordable rates, pet friendly

One of the most important standpoints to look at when improving the business’s overall welfare, is of course marketing. Southwest Airlines is a predominantly prosperous organization with many strengths and opportunities. Although a successful airline service, Southwest still of course has many weaknesses as well as threats. Looking at Southwest Airlines from the point of view of the organization’s Vice President, the issue that I would focus on first is the fact that Southwest Airlines only caters to the budget traveler.

Southwest Airlines Co. was established in 1967 when it was started with only three Boeing 737 aircraft that serve three largest Texas cities namely Dallas, Houston and San Antonio. In 1989, Southwest Airlines became a major airline when it surpassed the billion dollar revenue mark. Each year, millions of people fly with Southwest Airlines making them the nation’s largest carrier of domestic passengers. With 43 years of exceptional service Southwest Airlines continues to expand and serve 93 destinations in 40 states with more than 3,600 flights a day. This year Southwest launched their international flight service to five nearby countries by Air Tran Airways, a wholly owned subsidiary which was acquired in May 2011.

Southwest Airlines, founded in 1971, is trademarked as the original low-cost carrier (LCC) airline (Eroglu, 2015). The inspiration to originate a LCC airline was derived from founder Herb Kelleher, who was able to determine that there was a widespread consumer desire to travel by air. However, due to the cost of flying at the time, many were barred from the experience, as it was considered a luxury. As a result, Kelleher set out to construct an airline experience that was more accessible to the average consumer or, the middle class, by providing customizability and low-fares. However, Kelleher recognized that this low-fare, cost cutting airline model could be easily replicated. Therefore, to drive consumer loyalty and to shield Southwest from replication, Kelleher adopted the philosophy of “people first; profits second (“Southwest Airlines,” n.d.).” Consequently, positive employee, employer relations were established thus, driving morale, which provided individualized quality customer service to be delivered; all of which have aided Southwest in achieving consumer brand loyalty and differentiation on an intangible front.

Southwest major strength is that they have a strong brand image. Southwest Airlines is well known for cheap fares, convenience because of the point-to-point destinations and inflight entertainment. People who want to travel to one point to another they know that the most convenient airline is Southwest. Another strength is that Southwest Airlines has a very friendly staff because Southwest Airlines has created a positive environment for employees to gain employee loyalty and trust. Therefore, they are recognized and a great value and excellent services because Southwest Airlines employees try their best to fulfill customer needs.

Southwest Airlines faced many barriers to entry from the fierce competition of other airlines in the industry. Though competition was fierce, Southwest Airlines managed to succeed by doing things differently. Their mission was to provide affordable air travel to those who would not normally fly. Contradictory to the rest of the airline industry, Southwest maintained a profit while keeping its fares low. Southwest was unique to the industry in two ways. They focused on the short haul traveler and used a point-to-point method of flight connections.

Southwest Airlines was founded and incorporated in 1971 in the State of Texas by Herb Kelleher and Rollin King. These two men identified a target market of potential customers serving the Dallas, Houston and San Antonia regions who would normally drive rather than fly to locations that was less than 500 miles (Smith, 2004). Therefore, Southwest first home office was in Love Field, Texas, which was befitting as the organization’s name on the New York Stock Exchange is LUV, emphasizing their “love” for their employees and customers as a core behavior of the organizational culture (Klein, 2012). After forty-six years in business starting with 4 planes, the airline has now accumulated a fleet of 723 Boeing 737 aircrafts, serving 101 locations, in 40 states, including Puerto Rico, and internationally, Mexico, Jamaica, the Bahamas, Aruba, Dominican Republic, Costa Rico, Belize and Cuba (S&P Capital IQ, 2017). Moreover, this airline of almost 56,000 employees, is considered one of the worlds most successful airlines, generated close to 21 billion in revenue for 2016, and has been dethroned from the largest passenger carrier airline in the world to the fourth, due to industry mergers

Southwest Airlines was founded and incorporated in 1971 in the State of Texas by Herb Kelleher and Rollin King. These two men identified a target market of potential customers serving the Dallas, Houston and San Antonia regions who would normally drive rather than fly to locations that was less than 500 miles (Smith, 2004). Therefore, Southwest first home office was in Love Field, Texas, which was befitting as the organization’s name on the New York Stock Exchange is LUV, emphasizing their “love” for their employees and customers as a core behavior of the organizational culture (Klein, 2012). After forty-six years in business starting with 4 planes, the airline has now accumulated a fleet of 723 Boeing 737 aircrafts, serving 101 locations, in 40 states, including Puerto Rico, and internationally, Mexico, Jamaica, the Bahamas, Aruba, Dominican Republic, Costa Rico, Belize and Cuba (S&P Capital IQ, 2017). Moreover, this airline of almost 56,000 employees, is considered one of the worlds most successful airlines, generated close to 21 billion in revenue for 2016, and has been dethroned from the largest passenger carrier airline in the world to the fourth, due to industry mergers

In Southwest 47th year of service, this Dallas-based airline company continues to distinguish itself from other airlines with model customer service provided by the hands of numerous employees to millions of its passengers. Southwest is well on its way to becoming the nation’s largest airlines and maintains one of the top ranking airlines based on the U.S. Department of Transportation’s. Although, with this being said is true that a company main purpose is to make a profit. Southwest Airlines has a winning formula for making a profitable business and maintaining happy customers. With this being said is it more important to make money or build the customer base.