Case Challenge 2
Flying Southwest Airlines
To: Anthony Racka
From: Kyle Hanson
cc: MKT 415
Date:
Re: Case Study 2
Flying Southwest Airlines offers man consumer-buying benefits other than providing a
safe and comfortable flight. Their mission statement is dedicated to providing the highest
quality of customer service that provides a sense of warmth, friendliness, and company
spirit. Southwest Airlines has been known to catch the consumer’s eye due to their low-
cost/low-fare airline.
The intended target market for Southwest Airlines includes; small business executives,
short distance travelers, value-conscious individuals, senior citizens that require special
attention, and Internet/technology-savvy individuals. Marketed towards male/female
professionals aged from 24-55 years old, with a household income of $45,000 to $99,000,
as well as married couples, which helps provide more family travel. Southwest Airlines
target those individuals who live a lifestyle of convenience. They provide big online
presence that allows their consumers to get the best value, and have many positive
financial advantages.
Southwest Airlines product is travel. Air transportation to be specific, in the U.S., that
claims to offer tickets that are a lower cost then any other U.S. company. Its product
services include snacks, premium drinks, and Wi-Fi internet connectivity.
The pricing for Southwest has been known to be its core strength. Being able to offer its
customers discounts for advanced purchases, and guarantee a lower cost is something
all airlines wish they could do. Southwest Airlines focuses on its operating costs which is
a big reason they are able to keep their promotional techniques. Offering only snacks on
planes keeps labor costs down, and introducing ticket-less travel saved the company over
20 billion. Other strategies include; no connecting flights, no electronic entertainment,
single-class service, and flying only one type of fleet to keep training cost’s down. These
strategies help Southwest in keeping low fares, and providing a mean of success with
such a large competition.
Southwest Airlines is placed among 35 states strategically hoping their flight duration
averages an hour. When considering new placement, they develop campaigns to create
awareness, and develop a positive image in the consumers minds. For example, Florida
was a perfect location because there are countless miles of shoreline, and many other
popular sights and industries.
Southwest Airlines promotional mix is likely its most important component. Making its
consumers aware that Southwest Air has unique features that better from its competition.
They use the Internet, TV, and print media to advertise their services. Some of
Southwest’s key promotional techniques include;
Bags Fly Free- other airlines charge up to $120 for checked bags, where on Southwest
Airlines, your checked bags are free of cost.
No Change Fees- no cost to change a departure time, as many times as needed.
Rapid Rewards- quick earning reward program that earns free air tickets.
Strengths of Flying Southwest Airlines include:
First major airline to offer ticketless travel
Operated by only one type of Boeing Jet
Quick turn around ratio
Great Brand Image
