Executive Summary
This report describes the practice of the Southwest Airlines from the marketing point of view estimating the marketing objectives and tactics that the Company apply to achieve a balance between profitability, low fares and high satisfaction of customers’ expectation.
Southwest Airlines is an example of the company that exceeds to gain profit for 39 years even during the crisis. In 2011, its net income accounted for $178 million and it carried over 104 million of passengers. In 2012, the number of passengers preferring to flight with Southwest exceeded the figure of 116 million and the cargo carried accounts for more than 176 million of pounds (Southwest Airlines Media Kit 2012). Concerning the pricing strategy conducted by Southwest it should be mentioned that this company positioned itself as the most low fare carrier. Such a low price is the result of strong hedging policy against fuel price fluctuation. Moreover, the Company does not offer additional benefits like differentiating first class seats or proposing wide variety of food on board but provide high quality service and support. Southwest Airlines tries to improve and modernize the ticket reservation and checking process. Self-service kiosks are the project reducing the time passengers spend. Online boarding passes, online reservations and ticketless travel are other steps that the Company is developing for better customer service and flight experience.
The best indicators of travel safety, minimal number of delayed flights and luggage lost, high level of customers’ satisfaction with the services provided are the key factors of Southwest Airlines success. Moreover, Southwest Airlines clearly defines its goals in particular operates in short-haul segment through the point-to-point strategy and provide the high service quality and low fares. Such a clear Company’s activity vision helps Southwest Airlines to reach its target market efficiently. Business and leisure travelers flying domestic routes are the target customers of the airline company. Southwest concentrates its operational and marketing efforts on the domestic market and short trips instead of desire to obtain more profit by expanding the scale of operations internationally at the expense of quality of service. With such a focus, Southwest managed to increase its market share and guarantee the profit for its stakeholders. Southwest Airlines invests a lot in learning the opinions of its passengers, in keeping the customers informed by e-mail advertising and social media promotion, improved technology, design and comfort of the aircraft.
Table of contents
TOC \o "1-3" \h \z \u HYPERLINK \l "_Toc338934852" Executive Summary PAGEREF _Toc338934852 \h 2
HYPERLINK \l "_Toc338934853" Introduction PAGEREF _Toc338934853 \h 4
HYPERLINK \l "_Toc338934854" Summary of the Assignment 1 and Major Points of the Current Plan PAGEREF _Toc338934854 \h 4
HYPERLINK \l "_Toc338934855" Services marketing objectives for Southwest Airlines PAGEREF _Toc338934855 \h 5
HYPERLINK \l "_Toc338934856" Services marketing objectives and new practice for each of your 7 P’s PAGEREF _Toc338934856 \h 6
HYPERLINK \l "_Toc338934857" …