Transcript Marketing Strategies (MKT500) Industry/Company Analysis

Marketing Strategies (MKT500)
Industry/Company Analysis
Presentation
Southwest Airlines
Cevdet KIZIL
Gokhan BAYKAL
New Product/Service Development
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Expand service to Denver, Miami and Minneapolis.
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Short-haul, frequency, point-to-point and low fare service
convenience.
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Similar in terms of daily departures and number of passengers
(Phoenix, Las Vegas, Houston).
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These three cities are currently not served by Southwest
Airlines.
Target Market
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Moderate income
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No frill value minded
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No lower uppers, no upper uppers
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High raters of low price (consumer evaluation grid)
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Mainly consumer travelers rather than business
travelers
Marketing objective
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Increasing sales 3% in the first year up to 5%
in the second year
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Entering Denver, Miami and Minneapolis
cities.
Pricing Strategy
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Penetration Pricing Strategy
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Higher volume with lower price.
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Best against price sensitive customers and
existing & potential competitors
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No premium pricing.
Distribution Strategy
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Direct Distribution
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No Intermediaries (e.g.
travel agencies)
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Total quality control and
lower costs
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Website/Toll-Free Call
Center
Marketing Budget

Objective and Task Method
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On the basis of dollar amounts.
Advertising and Promotion
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Pull selling strategy
Newspaper ads
TV/radio
Bulletin boards
Websites
Newly painted planes
Public Relations Events
E-mail advertising
Monitoring and Control
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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