United Airlines Media Plan
Lacy Bedol, Margaret Cobb, Alexia Conley,
Kate Farmer, Sondra Schmidt
Executive Summary
The following Media Plan for United Airlines is an in-depth analysis of the current state of United Airlines and suggested actions they
should take to further their sales and brand recognition. This plan takes into account the history of the company, past spending, competitors,
SWOT analysis and target audience analysis. Using this information, United can better spend advertising dollars to maximize their appeal
amongst other airline providers.
Research for this plan was gathered using United Airline’s website, Claritas’ PRIZM segments and Mediamark Research &
Intelligence, Inc. (MRI). United Airline’s website provided information about past advertising tactics, spending and company history.
Claritas’ PRIZM segments gave insight to the target audience and narrowed down specific segments of the population that needed to be
targeted. MRI provided in-depth demographic and psychographic information that was essential to our determination of the target audience
and media strategies.
After extensive research, the target audience for United Airlines was determined as men and women aged 35-54, who have a spouse
and/or family, and travel for leisure or business. These people fell into three PRIZM population segments: Upward Bound, Fast Track
Families, and Brite Lites, Lil’ City.
Knowing the specific segments of the population that United should target, further suggestions for media strategies and objectives
were established. Media objectives were based off of target audience, reach, frequency and GRPs, budget, scheduling and timing, geography,
creative and sales promotion. Using those objectives, strategies were put in place to achieve the objectives while maintaining a budget of $15
million within a one-year campaign, all while appealing to our previously determined target audience.
Using research to determine an accurate target audience, creating attainable and specific objectives and implementing a plan to
achieve those goals will allow United to better understand their current market standings and attain better brand recognition and higher
sales in the future.
2
Situation Analysis
3
Brand Analysis
OVERVIEW
BUSINESS STRATEGY
The skies have not been so friendly for today’s United Airlines. The
strength of an airline’s brand, and an airline’s ultimate success, is a
function of its network and capacity, its customer service and its
customer loyalty. Although for many years an industry leader, United
has recently suffered through a variety of brand-challenging events:
financial troubles, labor conflicts, highly-visible problems while
integrating with its merger partner, Continental Airlines and media
gaffes.
United Airlines operates in a very competitive domestic airline
industry. Because of the intense competition facing these airlines,
those with the lowest costs are able to offer the lowest fares. In
order to compete in this industry, United Airlines has found it
necessary to match their competitors’ discounted fares, though it
can often negatively impact revenues.1
MERGER
United Continental Holdings is the parent company of the new United
Airlines. The two airlines that recently joined to create this new
operation have been around since the 1930s. When the airlines
merged, they retained the United name but the Continental colors,
livery, and logo.
The Merger between United and Continental took effect on October 1,
2010, following an agreement made in May of that year.1 Although the
combined company has incurred substantial expenses in connection
with the Merger, the airline hopes it will ultimately strengthen the
brand, as well as the competitive and financial position of the company.
The combined company expects to realize from “$1.0 billion to $1.2
billion in net annual synergies…by 2013.”1 These synergies will come
in large part from the increased options to customers resulting from the
“greater scope and scale of the network.”1
Despite the increased revenues expected, United has incurred a
significant amount of integration costs and will likely continue to incur
them for some time as the airline purchases new planes, adds staff, and
merges computer systems.2
As a result of the 2010 Merger, UAL Corporation became the parent
company of both Continental and United and its name was changed to
United Continental Holdings, Inc.1 The United website has been
updated to its new look which combines the United name with the
Continental color scheme and globe logo.3 The combined company has
chosen to retain United's theme song, George Gershwin's 1924
"Rhapsody in Blue," which has been in use since the mid-1970s.4
United operates more than 5,600 flights a day to more than 370
domestic and international locations from their hubs, domestically
located in:1
Chicago
Cleveland
Denver
Houston
Los Angeles
Newark
San Francisco
Washington, D.C.
Through their impressive hub network, United Airlines serves the
four biggest cities in The United States. Typically, United is the
dominant airline in those cities where it maintains a major hub,
giving it a strong and visible presence in many of the largest U.S.
markets. This is demonstrated by their success in 2011, when they
carried 142 million passengers on over two million flights.5
Where their planes do not fly directly, United is still able to serve
their customers through their alliance with a number of other
airlines, known as the Star Alliance. Founded in 1997, the alliance
is designed to allow United to offer its customers travel options to
markets United does not serve directly.1
A significant attribute of United’s strategy is its hub and spoke
operation. According to their 2011 Annual Report, “the hub and
spoke system allows [United] to transport passengers between a
large number of destinations with substantially more frequent
service than if each route were served directly.” In addition, it
allows for many flights and routes to be served with a limited
number of aircraft.
4
Brand Analysis
PAST ADVERTISING CAMPAIGNS
Following the merger with Continental, UAL’s advertising
spending has increased significantly, from $44 million in 2009 to
$90 million dollars in 2010 to $142 million in 2011.1
One of United Airlines’ more recent campaigns was focused
around the 2012 Summer Olympics. In their “Proud to Fly”
campaign, United focused on their commitment and tradition of
flying the United States’ athletes to the Olympics. The campaign
featured a “Proud to Fly” challenge, which quizzed Facebook
followers on their Olympics knowledge and encouraged them to
share their score with friends.6 They also ran a campaign centered
around the 2012 Team USA. "Before They Move Us, We Move
Them" highlighted the airline's tradition of flying Team USA
athletes and featured the airline’s theme song, “Rhapsody In
Blue.”7 The campaign included television, print, outdoor, and
social media advertising in addition to airport signage in their
domestic hubs.6
Other past advertising campaigns that proved successful for
United include its “Come Fly the Friendly Skies” commercials,
which aimed to emphasize “the modern age of air travel.”8
They’ve also run a campaign titled, “It’s Time to Fly,” focused on
reaching their business travelers to showcase United’s advantages
in that category.7
United has also recently begun an ad campaign to promote its loyalty
program. The ads will push the airline’s increased offerings “of lowmileage frequent-flier award tickets through its MileagePlus loyalty
program.”10 According to USA Today Travel, “the campaign will
include ads in and around airports as well as ads in newspapers,
magazines and related news and travel-oriented websites,” drawing
attention to their rank as “#1 in award seat availability among U.S.
global carriers.”9
SUMMARY
United Airlines certainly has a strong history, and a lot of potential for
growth following their recent merger with Continental Airlines. By
emphasizing their strengths, addressing their weaknesses, managing
their threats, and capitalizing on their opportunities, United Airlines
could truly put themselves at the forefront of the domestic airline
travel industry. Through solid business practices and a strong media
campaign, United Airlines could obtain a significant competitive
advantage over their competitors.
It is important to note the large success United has had in the past
with their commercials that emphasized emotional appeal. In
addition, location of advertisements has become essential as well.
One ad with the copy, “You’re going to like where we land,” was
removed from Ground Zero in New York City after NBC New York
reported some complaints about the ad’s placement. Although an
outside vender placed this advertisement, it demonstrates the
importance of monitoring media and campaign strategies, as well
as addressing complaints in a timely manner.9
5
Competitive Analysis
The main competitors for United Airlines are JetBlue, Southwest Airlines, US Airways, Delta Air Lines and American Airlines. All five of these
airlines have various promotions and strengths that prove to be competition for United Airlines.
JETBLUE
JetBlue’s main competitive advantage is their website. Recently, they have received awards for the userfriendly features of their website and their new promotional tools (See Appendix 5). In 2011 JetBlue
received awards including “Best Airline” from New Now Next Travel Awards, “Best Airline Booking
Experience” from U.S. Travelers Choice and “Best Coach Class Experience” from Travel 2011 Editor’s
Choice Awards and “Excellent Web Service” in 2010 from Compuware Gomez Web & Mobile
Performance Awards. .(endnote) Their new slogan “You Above All” features a bold and modern font
that is appealing to a younger consumer (Appendix 5). Last year JetBlue spent $13,396,535 on
national advertising. (endnote) According to the provided competitive information, their advertising
budget was spent on national B2B, Internet and newspaper advertisements. According to the JetBlue
website, their national advertising budget was spent on online, in-flight, print and out-of-home
advertising, email, and YouTube and other digital commercials. They also sponsor a variety of charitybased promotions. JetBlue offers promotions based on sports teams, special interest groups and fan
clubs. These offers, their frequent flyer club, TrueBlue, and user-friendly website work together to
create a well-rounded customer experience.11
SOUTHWEST AIRLINES
Southwest Airlines is well known for its low prices and easy check-in process. Recently, Southwest
received the Eco-Friendly Pioneer award and JD Power 2012 Customer Service Champion for
performance in People, Presentation, Price, Process and Practices. On their website, Southwest makes
their commitment to service and safety very clear. Southwest has over 3,400 flights a day from 97
airports in over 41 states and 6 international companies.12 Last year, Southwest Airlines spent
$353,024,013 in advertising. Based on the provided airline spending data, Southwest spends its money
on national TV commercials, B2B, Internet, radio and newspaper advertisements. According to the
Southwest website, advertising promotions focused on in-flight, television and print advertising.
Recently, Southwest has created the blog “Nuts About Southwest” which features customer reviews,
photos, current company happenings and links to all other social media sites (Appendix 4). Southwest
Airline’s main competitive advantages over United Airlines are its low fares and consumer service.
U.S. AIRWAYS
U.S. Airways is the fifth largest airline companies in North America, with more than 3,200 flights
taking place each day. In the realm of social media, U.S. Airways has a strong presence on Facebook
and Twitter. This is one of their greatest strengths and competitive qualities. On Facebook, the
company hosts social media campaigns, such as National Breast Cancer Awareness Month campaign
that was promoted in the month of October. U.S. Airways uses their Twitter account as a form of
Human Resources, responding to clients hourly (Appendix 6). U.S. Airways earned a 100 percent
rating on the Human Rights Campaign of Corporate Equality Index for six consecutive years. In
addition, it was also the only airline included as one of the 50 best companies to work for in the United
States by LATINA Style magazine’s 50 Report for 2010 and 2011. U.S. Airways has a very similar
audience to United Airlines, as 74 percent of customers are between 25 and 54 years old and 77
percent have an annual household income of $50,000 or more. U.S. Airways customers also are
frequent travelers, as 93 percent have purchased travel tickets online in the last 12 months.13
6
Competitive Analysis
DELTA AIR LINES
Delta Air Lines offers more than 5,000 flights a day, serving the greatest number of passengers out of
all airlines in North America. By having so many customers, Delta was appropriately bestowed with
multiple awards. In the last year, Delta was named “Airline of the Year” by the readers of Travel
Weekly and “Top Tech-Friendly U.S. Airline” by PCWorld magazine. Last year, Delta Air Lines spent
$38,587,979 on advertising. Their budget was spent on FSI Coupons, local Internet, local magazines,
network TV, Spanish language cable TV, and spot radio. Delta Airlines advertised nationally, but
focused the majority of its advertising budget on spot radio and local magazine advertisements. Delta
Air Lines also has a strong presence on Twitter, with a few tweets each day. But instead of using this
form of communication as a type of customer service, @Delta is used to promote advertising
campaigns and feature articles related to traveling. Their Facebook page is used for a variety of
topics—everything from promoting Delta’s eBoarding Pass for smart phones to encouraging the
general public to vote on Election Day. Delta’s current slogan is “Peace of Mind, To Go” – with their
website conveying the serene tone reflected in their tagline.14
AMERICAN AIRLINES
American Airlines’ current advertising campaign focuses on their commitment to making the travel
experience as seamless as possible. Their online efforts focus on fares, AAdvantage mileage offers, and
promotions. This year, American Airlines has won the “Most Admired Airline” award from Mercado
magazine and like U.S. Airways, scored perfectly on the Human Rights Campaign of Corporate
Equality Index. Last year, American spent $20,340,767 on advertising. The majority of American
Airlines’ advertising budget was spent on spot radio, followed by network TV then local magazines.
Their advertising budget was also spent on Spanish language cable TV and local Internet. For social
media efforts, American Airlines uses their Twitter to promote job openings, update weather-related
flight cancellations and to introduce their new Instagram account. Their Facebook and Twitter pages
essentially contain the same content, but their Facebook page features more pictures.15
SUMMARY
Each airline has its own strengths and weaknesses—all of which United Airlines should study and keep in mind when making decisions about
marketing objectives and strategies. The key is to take note of competitors’ strengths, see how improvements can be made to United Airlines’
strategies and implement them effectively.
7
Target Audience Analysis
OVERVIEW
UNITED AIRLINES’ TARGET AUDIENCE
Air travel was the second greatest means for leisure travel
between August 2008 and July 2009.16 It remains a form
of transportation consistently used by both leisure travelers
and business travelers in the U.S., with approximately 2
billion trips taken for leisure and business in 2011.17
United Airlines’ target audience is made up of mainly Caucasian adults 35-54
who, at minimum, graduated college and have a household income of
$75,000. They are employed full-time in professional, business, or
management occupations and mainly live in urban or suburban areas with
their spouse and/or family. We suggest that for the purposes of this campaign
specifically, United Airlines should focus on target audience members living
in United hub cities and in the top six western DMAs.
Between August 2008 and July 2009, approximately 42
percent of U.S. adults reported using air travel for a leisure
trip and about 48 percent of U.S. adults said they had used
air travel for a business trip. 16
For the purpose of this report, we took this information
and aimed to define United Airlines’ target audience more
specifically, both in terms of demographics and
psychographics. We used data from the United Airlines
website, MRI, and Claritas’ PRIZM segments to establish
United’s audience as a whole. Then, as discussed later, we
broke it down to create a cohesive media campaign aimed
at an appropriate and valuable audience.
AGES 35-54
According to U.S. Travel Association, members of Gen X—defined as those
born between 1965 and 1980—make up about 31 percent of all leisure
travelers and 36 percent of all business travelers. 16 Young Boomers, or those
born between 1955 and 1964, comprise of 21 percent of leisure travelers and
22 percent of business travelers. While these figures include all forms of
transportation for leisure and business trips, we expect the numbers are fairly
consistent with air travel alone as well.
This significant proportion of travelers would be made up of adults ages 3257 based on the definitions of Gen X and Young Boomers. To be consistent
with United Airlines’ passenger profile, MRI data, and Claritas’ PRIZM
segments, we chose to define the target audience as ages 35-54, as this is also
consistent with the U.S. Travel Association data and represents a demographic
that is approximately 25 percent more likely to fly United Airlines.
PROFESSIONAL OCCUPATIONS
Close to 500 million business trips were logged in 2011, totaling almost $250
billion dollars in direct spending.17 Adults in professional, business or
management occupations are a target for United Airlines, in part due to the
huge opportunity business professionals present in terms of revenue. In
addition, those in professional, business or management occupations are more
than twice as likely to fly United Airlines and comprise close to 50 percent of
United Airlines passengers.
We believe that those in professional occupations are also more likely to have
earned a bachelor’s or graduate degree. Fifty-eight percent of United Airlines
passengers have graduated with at least an undergraduate degree. In
addition, those who have graduated college or more are over twice as likely to
fly United Airlines. This makes the college graduate demographic an
appealing target for United Airlines in combination with those in professional
occupations.
8
Target Audience Analysis
HHI $75,000+
PRIZM SEGMENTS
United Airlines customers are 59 percent more likely to have a
household income of $75,000 to $149,000 and more than 2.5 times
more likely to have an income of greater than $150,000.18 Leisure
travel is often considered a luxury, and so it makes sense that those
who travel more have more discretionary income to spend. In
addition, those in professional, business, or managerial positions are
more likely to make higher incomes simply based on their careers.
Based on United Airlines’ above target audience, we used Claritas’
PRIZM segments to define two primary segments and one secondary
segment. The primary segments we suggest United Airlines target
are “Upward Bound” and “Fast-Track Families.” The secondary
target we recommend is “Brite Lites, Li’l City.” All are detailed
below.
PRIMARY TARGET 1: UPWARD BOUND 20
URBAN/SUBURBAN
According to MRI Reporter, over 51 percent of United Airlines
passengers live in size A counties, which are defined as the largest
metropolitan areas and make up 40 percent of U.S. households.19 The
next largest county size, B, provide homes to 30 percent of U.S.
households and 29.4 percent of United Airlines passengers live in
these metropolitan areas.19 Overall, United customers are 24 percent
more likely to live in the largest metropolitan areas.19 For this reason,
we have defined United Airlines’ target audience as those living in
urban or suburban areas.
HUBS & WESTERN DMAs
United Airlines has hubs in the following major cities:
Chicago
Cleveland
Denver
Houston
Los Angeles
Newark
San Francisco
Washington, D.C.
In addition, to these hubs, United also operates in number of top
DMAs across the U.S. However, United passengers are 78 percent
more likely to live in the western United States and over 40 percent of
United customers live in that region. For this reason, we encourage
United Airlines to focus their campaign on the above hubs and the
following western DMAs:
Phoenix
Portland
Sacramento
Salt Lake City
San Diego
Seattle
We anticipate that a national campaign with significant heavy-up in
these 14 spot markets will properly support a campaign aimed at this
target audience and create noticeable impact in United’s sales and
brand recognition.
The Upward Bound segment is similar to Brite Lites, Li’l City in their
level of income and home ownership status. However, this group of
adults aged 35-54 has children and very much revolves around
them. Dubbed “the home of those legendary Soccer Moms and
Dads,” Upward Bounds are often running around their satellite city
of residence, buying children’s toys and games, shopping at Target,
and taking their kids to sports practice in their SUVs. The dual,
relatively high incomes in this target allows for some discretionary
spending for leisure vacations to visit grandma for Thanksgiving or
to hit the slopes in Aspen over spring break, and thus are a strong
target for United as well.
PRIMARY TARGET 2: FAST-TRACK FAMILIES 20
Fast-Track Families are another segment of upscale income, collegeeducated professionals with families. They own their homes in
smaller towns or more rural areas, but frequently travel by plane
for business due to their management-level careers. These 35-54
year old adults have a higher number of children and frequently
buy new technologies for them. They have enough disposable
income to be able to give their children a comfortable life, so they
do whatever they can to do just that.
SECONDARY TARGET: BRITE LITES, LI’L CITY 20
Members of the Brite Lites, Li’l City demographic are upper income,
middle-aged couples (<55) without children. They are employed in
management-level careers and for the most part own their homes in
slightly smaller metropolitan areas around the U.S. This group of
consumers shops at more upscale stores like Crate & Barrel and
purchases the latest technologies. Since they don’t have children and
have high-paying jobs, they tend to have a lot of disposable income
for leisure vacations, making them a highly desirable target for
United Airlines.
9
Target Audience Analysis
MEET BOB, A UNITED AIRLINES PASSENGER
Bob Nicholson is a 42-year-old father of two boys, Robert, 15, and
Edward, 11. He’s been married to his wife, Mary, for 18 years and
they live together in the home they purchased 10 years ago, right
outside of Denver. Bob works for a well-known consulting firm,
which requires him to travel fairly regularly. He began his career in
consulting 12 years ago, at the age of 30. He worked in business
development at the headquarters of a mid-sized retail company in
Jacksonville, FL from the time he graduated from The University of
Colorado-Boulder with a degree in Business Administration, until his
switch to consulting in 2000. Through his time in business
development, Bob worked on getting his M.B.A. by taking evening
classes at The University of North Florida.
Since Bob and Mary love the outdoors so much, they try to limit the
number of hours their family spends watching TV or surfing the
Internet. However, they do let their boys watch movies or TV shows
on their road trips to the mountains in Mary’s Honda Pilot. The
Nicholsons subscribe to The Denver Post and Bob tries to take time to
read the national and local news’ business sections each day. In
addition, the family subscribes to several magazines including ESPN,
InStyle, and Time.
Now, thanks to the Nicholsons’ good fortune and hard work, they
continue to live comfortably in Denver while still having
opportunities for travel and recreation. They take a minimum of one
trip per year to see their families in Maine and Florida. Usually, they
go to one family for Christmas and the other over the summer. In
addition, the boys have the same spring break and Mary typically
likes to take that opportunity to go somewhere a little warmer after a
long and cold winter. Since Bob travels fairly regularly for his job,
he has built up a pretty significant amount of frequent flyer miles
through MileagePlus and the family uses these for their vacations.
When Bob was ready to make his career switch, he and Mary decided
to return to Colorado, where they had met, despite the fact that their
families lived in Florida and Maine. Denver seemed like the perfect
place to raise a family and enjoy the activities they missed so much.
Luckily, there was an opening in the consulting firm where one of
Bob’s fraternity brothers worked and Bob came highly recommended
by his supervisors, professors, and peers. For the past 12 years, he has
worked diligently to climb the ladder and just recently became a Since the Nicholsons are veteran travelers, they’ve gotten used to the
partner.
hassles of airports, but they continue to be fairly frustrated by
airlines’ customer service. One holiday,
Mary also graduated from The University of Colorado-Boulder, but when the family was traveling to Maine
earned her degree in Early Childhood Development. Her love of to see Bob’s parents, United lost Mary’s
children and knack for teaching led her to pursue a career in luggage full of her clothes and some of the
Elementary Education. She worked at a private school in Jacksonville, Christmas presents for her boys and
FL until Robert was born. Shortly after arriving in Denver, she and Bob in-laws.This wouldn’t have been so bad
found out they were pregnant again! This prevented her from getting if the customer service representatives had
a job right away, but since Bob’s compensation had increased pretty been more sympathetic. As a regular
significantly with his career switch, they were still able to maintain a traveler for United, Bob feels like he
comfortable lifestyle for their family. When Edward turned two and should receive above-average service,
started preschool at First Presbyterian Church, Mary was finally able but has had a hard time believing
to get back into teaching. She began working as a first grade lead that United Airlines agrees.
teacher at their neighborhood school, but when the assistant principal
position opened up last year, she was the clear choice for the role.
Robert and Edward attend the local public schools, where they both
have been excelling in their academics. Robert has just gotten his
learner’s permit and they frequently go driving in Bob’s Honda Accord
on Saturday mornings before Robert’s soccer games. Edward has a
knack for music and has recently discovered his passion for the piano.
Once a week, he has lessons in their home in addition to the regular
band practice at school.
10
SWOT Summary
Strengths
Weaknesses
• Service
to
378
airports
worldwide
• Hubs
in
eight
U.S.
cities
and
two
internationally
• Most
fuel‐ef@icient
airplane
@leet
(when
adjusted
for
cabin
size)
• Negative
reputation
of
customer
service
• Sensationalized
complaints
by
unhappy
customers
Opportunities
Threats
• United/Continental
merger
expanded
@leet,
employee
base
and
airport
service
• Use
of
direct
sales
websites
allows
United
to
target
customers
effectively
and
retain
customers,
among
other
opportunities
• United's
loyalty
program,
MileagePlus,
to
gain
additional
customers
through
Continental's
loyalty
program,
OnePass
• Smaller
airlines
becoming
viable
competitors
• Possible
United/Continental
merger
synergy
issues
• Uncertainty
of
airplane
fuel
costs
• Instability
of
economy
both
globally
and
within
the
U.S.
• Southwest/AirTran
merger
• Other
strong
competitors
in
category
Key Challenge
The key challenge that United will face over the next two to five years will be successfully integrating the United and Continental brands.
Whether this involves the merging of the loyalty programs, the consolidation of business plans, employee relations or re-branding initiatives,
the two corporations will have to work tirelessly to successfully become one. As there are many viable competitors in the category, customers
will not hesitate to change airlines if they feel that they didn’t have a successful experience with United Airlines.
Key Consumer Insight
United customers are not interested in the flight experience as much as getting from point A to point B safely, efficiently and without large
inconveniences. They don’t want their flying experience to consume their trip: they fly only because they have to and want it to be as quick
as possible so they can continue their lives on the ground.
11
SWOT Analysis
After understanding its strengths, weaknesses, opportunities and threats, United Airlines can see itself from
an unbiased position. With a better understanding of its position within the airline category, United can
capitalize on its strengths, evaluate a way to overcome its weaknesses, take advantage of its opportunities
and avoid the negative consequences of the threats. All of these realizations are valuable to United as it
continues to compete with other successful airlines in the industry and become more profitable.
STRENGTHS
WEAKNESSES
United Airlines serves 378 airports, both nationally and
internationally. United customers can fly to almost any city in the
United States via a one-stop or non-stop flight. There are also
flights available in 63 countries in Asia, Australia, Europe, Latin
America, Africa and the Middle East.21 The vast service area allows
United to always be a viable option.
United’s customer relations department has undergone scrutiny for
its way of dealing with those who were unsatisfied with their flying
experiences. Dave Carroll released a music video entitled “United
Breaks Guitars” that quickly went viral after United refused to
replace or pay for his guitar that was broken during a flight. 24
United has hubs in eight U.S. cities, including four of the largest
U.S. cities, and two hubs in cities internationally. 22 Hubs include
San Francisco, CA, Los Angeles, CA, Denver, CO, Houston, TX,
Chicago, IL, Cleveland, OH, Newark, NJ, Dulles, VA, Tamuning,
Guam and Tokyo, Japan. 21
United’s fleet of airplanes ranks as the most fuel-efficient when
adjusted for cabin size22 and has one of the best airplane fleets as a
result of its purchase of the Boeing 787 Dreamliners.23
Supermodel Maggie Rizer also lashed out against the way United
employees responded after her dog died of heat stroke while in the
underbelly of one of their airplanes. The airline eventually returned
the $1,800 it originally cost to transport the dog.25
A 10-year-old child was reported to be lost after a United employee
failed to meet her at the gate to help her find her way to the
connecting flight. Representatives for the airline were difficult to
reach and seemingly uninterested after the child’s parents were
contacted that she never arrived at her summer camp.26
In all of these cases, travelers cited apathy and an unwillingness to
help following their poor travel experiences. It wasn’t until the
customers spread the message via the Internet that United
responded.
12
SWOT Analysis
OPPORTUNITIES
THREATS
The United Airlines and Continental Airlines merger in 2010
combined two of the largest airlines in the nation and also
eliminated a major competitor. United could use the new
partnership to dominate the category through the increased number
of employees and airplanes acquired.27
Large airlines such as United have the challenge of covering their
large overhead, which includes employee salaries and equipment
purchases and maintenance. Smaller, developing airlines do not
have these challenges and could pose a threat to United’s market
share.
According to United Airlines’ 10-K for the 2011 fiscal year, the use
of direct sales websites such as United.com and Continental.com
allows the company to take better control of the content, target
customers in a more effective manner, retain customers and
decrease distribution costs.28
Even though the United Airlines/ Continental Airlines merger
provides great opportunities to expand their market share within
the airline category, there are risks involved with merging two
companies. Issues could include those associated with integrating
the workforce and business models of the two airlines, obligations
imposed from the regulatory authority in addition to branding/rebranding costs.29
As a result of the United Airline/ Continental Airlines merger,
United will gain the members of Continental’s OnePass loyalty
program to add to their existing loyalty program, Mileage Plus.
Awards redeemed from the Mileage Plus program represented 8.2%
of United’s total revenue passenger miles in 2011 and 5.6% of
Continental’s total revenue passenger miles.28
United Airlines has the most fuel-efficient airplanes adjusted for
cabin size, but the uncertainty of aircraft fuel costs poses a major
risk to operating profits. This, combined with uncertain economic
conditions within the United States and globally, will affect the
airline industry as it is historically cyclical and follows economic
conditions.30
Air Tran and Southwest merged in May of 2011 and received a
single operating certificate from the Federal Aviation Administration
in March of 2012.31 This means that the two will be able to operate
under the Southwest name and possibly prove to be a major
competitor for the newly merged Continental and United.
There are a number of valid competitors within the airline industry
such as Delta Airlines, American Airlines, U.S. Airways, Southwest
Airlines and Jet Blue Airlines. United is not alone in the industry.
There are many substitutes available if customers are not satisfied
with their flying experiences.
13
Media Objectives
&
Strategies
14
BIG IDEA
Based on United Airlines’ current situation, including their strengths, weaknesses, opportunities, and threats, we
have established that United has a need to improve their brand image while also growing their market share in
a highly competitive industry. The following objectives and strategies aim to do just that.
MARKETING OBJECTIVE
ADVERTISING OBJECTIVE
Increase United Airlines’ sales by 10
percent from December 31, 2012 to
December 31, 2013.
From the beginning 2013 to the end of
2013, increase target audience’s recall of
United Airlines by 30 percent as the airline
that will help you “Be There.”
15
Media Objectives
TARGET AUDIENCE OBJECTIVE
Target the 2013 media campaign towards 8 to 10 million married adults, age 35-54, who have graduated college or more, work
in professional or management occupations and earn a household income of $75,000 or more.
REACH, FREQUENCY, & GRPs OBJECTIVE
Gain a total of 320 GRPs, resulting from 80% reach and a frequency of 4, in heavy-up months of April, June, July, August and
December. Gain additional GRPs in normal months to support campaign throughout the 2013 campaign year (specific number
unavailable because of insufficient data in determining reach for these media forms).
BUDGET OBJECTIVE
Achieve the sales promotion, creative, geography, scheduling & timing, and reach, frequency & GRPs objectives within the budget
of $15 million within the one-year campaign from beginning of January 2013 to end of December 2013.
SCHEDULING & TIMING OBJECTIVE
Employ a pulsing schedule with the heavy-up months of April, June, July, August, and December, which contain the majority of
advertisements.
GEOGRAPHY OBJECTIVE
The $15 million budget for the twelve-month campaign will be divided between national advertising (29 percent) and spot
advertising (71 percent) in the chosen media, focusing on the United Airlines hub cities and western DMAs.
SALES PROMOTION OBJECTIVE
Sales promotions will increase brand awareness within the outlined target market by 20 percent by the end of the twelve-month
campaign.
16
Media Strategies
TARGET AUDIENCE
REACH, FREQUENCY, & GRPs
Based on the target audience as defined in the situation analysis and
our geographic decisions as defined below, we estimate that United
Airlines will try to reach between 8 to 10 million people.
Reach is a count of persons with at least one impression. It’s a flexible
concept so that it works for any demographic and also works for
media schedules, campaigns, or individual programs or magazines.
Heavy up months, which include April, June, July, August and
December, in spot markets of television and radio will have a reach of
80 percent.
This number represents the U.S.’s population of adults 35-54 who
have obtained a bachelor’s or graduate degree and now work fulltime in a professional or management occupation. They are
married and live in United Airlines’ hubs and top western DMAs
with their spouse and/or family.
We used United States census data to extrapolate an estimate of
United’s target population size. Based on the chosen geographic
markets and population characteristics, we estimated the size of the
total population by finding percentages of individuals in each city
who fit the age and education requirements. Due to the high
correlation of people who fit the education and occupation
requirements, we felt that using both percentages to calculate an
estimate would cause too much overlap and, thus, underestimate
the size of our population. However, we did check them both to
examine the similarity in estimates.
To come to a final conclusion, we examined a number of estimates
based on various combinations of the demographics and their
percentages of the population. Then, we found the average and
median of those estimates. When those numbers were relatively
close, we felt confident that 8 million was a good estimate of United
Airline’s target population. To allow room for error and overlap, we
chose to extend that range to between 8 and 10 million.
Frequency is the average number of times a reached individual was
exposed to a campaign. We must assume that it will take an average
of three times for the target audience to act upon our advertisement.
Products with more competition need a greater frequency though so
we will increase our target frequency to four during heavy-up
months, including spot television and radio advertisements.
The target GRPs for the national campaign will be found by
multiplying the average frequency and reach. Because of the selected
media mix and budgeting constraints, a GRP calculation is not
available for all months. What is known is the following: the GRP
target for national spot TV for early fringe is 70, the GRP target for
national spot time in prime is 50. Similarly, the target GRP for spot
radio during the morning drive is 100, as is for the evening drive. This
totals up to 320 GRPs per heavy-up month. GRPs are unavailable for
Internet, newspapers and magazines because reach cannot be
determined from the information acquired.
See Appendix 7 for a breakdown of the estimated population size
and information source.
17
Media Strategies
MEDIA BUDGET
INTERNET
The designated budget for United Airline’s 2013 campaign is $15
million. It will be divided between various media by percentage of the
total budget, based upon given data on advertising spending in the
airline category. Portions of the budget will be spent both nationally and
within our chosen spot markets.
Members of the United target audience are heavy Internet users,
according to MRI data. Based on this as well as the provided
information for United’s past media spending, ads placed on the
Internet will account for 18 percent of the total campaign budget,
totaling $2,700,000.
MEDIA MIX
According to our research using MRI, United customers are more
likely to visit Amazon.com, MapQuest.com, Weather.com,
NYTimes.com, Pandora.com, Orbitz.com, Gmail.com and
ESPN.com.
For each of the websites, we aim to reach
approximately 60 percent of total unique impressions per month
with each ad.
Media have been suggested based on research regarding United Airline’s
target audience and past spending data as provided.
Advertisements for United Airlines’ campaign will be placed in the
following media outlets, with the designated percent of the budget:
The number of ads purchased are based on the price of 60
percent of unique visitors as well as the percent down numbers,
or the percentage of United customers that visit the specific
website. The amounts calculated are based on given CPM
numbers multiplied by the number of thousand impressions that
will be purchased. For a breakdown of spending on each website,
please see Figure 1 below.
Figure 1: Internet Spending 32
Website
%
down
Amazon.com
38.3
MapQuest.com
30.6
Weather.com
37.4
NYTimes.com
12.8
Pandora.com
17.6
Orbitz.com
12.8
Gmai
Gmail.com
33.4
ESPN.com
16.6
Unique
Index
visitors/
month
186
103,664,423
165
40,670,350
147
35,991,023
239
12,552,390
174
17,034,893
277
7,943,095
171
214,332
132
71,382
60%
of
visitors
CPM
#
of
ads
62,198,653.8
$12
1
24,402,210
$8
3
21,593,613.8
$9.50
2
10,531,434
$25
2
10,220,935.8
$3.50
5
4,765,857
$7
6
128,599.2
$2
7
42,829.2
$13
3
Total
Cost
$746,383.8
$585,653.04
$410,297.60
$562,571.50
$178,866.45
$200,184.12
$1800.40
$1,670.37
18
Media Strategies
MAGAZINES (NATIONAL & SPOT)
Members of the United Airlines target audience, as described above, are
medium to heavy magazine users, according to MRI data. Based on this as
well as provided information about the airline category’s media spending,
15 percent of the campaign’s budget ($2,250,000) will be spent on spot
circulation of magazines and 11 percent ($1,650,000) will be spent on the
national circulation of magazines. Based on MRI data for the United target
audience, United ads will be placed in InStyle, Time, Reader’s Digest for
national circulation and Newsweek and National Geographic for spot
circulation. Magazines offer more creative opportunities and each issue has
a fairly long life. Unfortunately, ads can be costly and be drowned out by
the excessive clutter in this medium.
NATIONAL:
The percent down or percentage of United flyers who read InStyle is 8.4
percent and the index is 184. The national monthly rate base for InStyle is
1,700,000 and the monthly charge for a half-page square advertisement is
$104,400. Over the course of the campaign, six half-page square ads will
run in InStyle, totaling $626,400 (the national circulation budget,
$1,650,000, divided by three national circulation magazines plus the
surplus after all other magazine spending was calculated).33
The percent down or percentage of United flyers who read Time is 11.1 and
the index is 139. The national monthly rate base for Time is 3,250,000,
while monthly circulation is 3,298,390. One half-page, four color ad in the
weekly publication is $240,000. By using the $550,000 allocated Time as
one of the three magazines with ads in national circulation, there will be
one one-half page ads in two different weeks of the publication. This totals
$480,000.34
The percent down or percentage of Untied flyers who read Reader’s Digest
is 12.4 and the index is 112. The national circulation per publication (ten
per year) is 5,500,000. One half-page, four color ad is $111,300. By using
the $550,000 allocated plus some surplus after all other magazine spending
was calculated, there will be five one-half page, four color United ads in
Reader’s Digest. This totals $556,500.35
The sixty percent of the spot circulation budget allocated to
Newsweek totals $1,3500,000, allowing there to be eight full
page, four color ads in each of the hubs. This means there
will be a total of sixty-four ads over eight weeks in eight
cities, totaling $1,333,510. See Figure 2 for the chart
detailing circulation and pricing for each of the cities.36
The percent down or percentage of United flyers who read
National Geographic is 18.3 and the index is 129. The rate
base to advertise in the top 25 metro markets is 2,100,000
per month, and pricing decreases per ad when buying six or
more ads. With the forty percent of the spot circulation
budget ($900,000), there will be six one-page, four color ads
in National Geographic at a rate of $149,690 per ad, totaling
$898,140.37
Figure 2: Newsweek Costs by City
DMA
Circulation
Cost
per
ad
Chicago,
IL
84,000
$22,100
Cleveland,
OH
23,000
$19,625
Denver,
CO
25,000
$19,625
Houston,
TX
22,000
$19,625
New
York,
NY
105,000
$24,495
Los
Angeles,
CA
90,000
$22,935
San
Francisco,
CA
85,000
$22,100
Washington,
D.C.
63,000
$20,445
Figure 3: Magazine Budget Breakdown
SPOT:
The percent down or percentage of United flyers who read Newsweek is 8.5
percent and the index is 157. Spot ads will run in the eight United hubs in
the U.S.: Chicago, IL, Cleveland, OH, Denver, CO, Houston, TX, New York,
NY (in place of the hub in Newark, NJ), Los Angeles, CA, San Francisco, CA,
and Washington, D.C.
19
Media Strategies
TELEVISION (SPOT)
RADIO (SPOT)
Based on MRI data, the target market for United contains light to
medium TV users. Based on this as well as the expensive nature of
TV ads, United ads will only appear in spot markets as determined
by United hubs and DMAs in which the majority of customers live
(according to MRI data). The spot markets chosen include Chicago,
IL, Cleveland, OH, Denver, CO, Houston, TX, Los Angeles, CA,
Newark, NJ, San Francisco, CA, Washington D.C., Seattle-Tacoma,
WA, Portland, OR, Sacramento-Stockton-Modesto, CA, San Diego,
CA, Phoenix, AZ and Salt Lake City, UT. Fifteen second United ads
will appear in the early fringe/ news and prime day parts in five
different months (April, June, July, August, December), as described
in the Reach/ Frequency/ GRP objective and strategy section. The
total cost per month is $753,470, totaling 3,767,350 over the
course of the campaign. See Figure 4 below for GRP, CPP, CPM and
total cost breakdown (according to Media Flight Plan) per each of
the five heavy-up months. TV offers a low cost per contact with
viewers and can convey persuasive messages. On the other hand,
messages can be fleeting and with the implementation of TiVo and
DVRs, audience members can fast forward through ads and tune
them out.
According to MRI data, the United target audience contains heavy
users of radio. The data also suggests that United customers listen to
the radio during the morning drive (from 6 a.m. to 10 a.m.) and
during the evening drive (from 3 p.m. to 7 p.m.). Using the
percentages from United’s media spending (provided), applying
them to the budget of $15 million and taking into account media
usage according to MRI, there will be $2,700,000 or 18 percent of
the budget allocated to 30-second radio ads in the spot markets
listed above. The scheduling will be the same as that for TV ads:
during five months of historically heavy travel. There will be a total
of 200 GRPs in each month as well as $861,600 per month for spot
radio advertisements. See Figure 5 below for GRP, CPP, CPM and
total cost breakdown (according to Media Flight Plan) per each of
the five heavy-up months. Radio has a local appeal as messages can
be tailored to specific geographic areas. It also provides a platform
to reach a fairly segmented audience. Audience members may not
be extremely attentive to radio, however, as they may have it on in
the background. Creative limitations are present as ads only appeal
to the audience through sound, unlike TV which appeals through
visuals and sound.
Figure 4: Spot
Medium
Spot
TV:
Early
Fringe
Spot
TV:
Prime
TV Dayparts
GRPs
CPP
70
$4206
CPM
$15.09
Total
Cost
$294,420
50
$32.94
$459,050
$9181
Figure 5: Spot Radio Dayparts
Medium
GRPs
CPP
Spot
Radio:
100
$4229
Morning
Drive
Spot
Radio:
100
$4387
Evening
Drive
CPM
$15.17
Total
Cost
$422,900
$15.74
$438,700
20
Media Strategies
NEWSPAPERS
HUB CITIES
According to MRI data, the target market for United contains heavy
newspaper users. Based on given past United spending as well as
this MRI data, six percent of the $15 million budget plus surplus
will be allocated to spot newspaper advertisements. This total comes
to $1,221,637.24 for the 12-month campaign. The spot markets
will include top western U.S. DMAs where, according to MRI data,
much of the target market lives, and the cities where United’s hubs
are located. The newspapers and the cities from United hubs
include: Chicago Tribune (Chicago, IL), The Plain Dealer (Cleveland,
OH), The Denver Post (Denver, CO), The Houston Chronicle
(Houston, TX), LA Times (Los Angeles, CA), The New York Times
(Newark, NJ), San Francisco Chronicle (San Francisco, CA), The
Washington Post (Washington D.C.). The newspapers and the cities
from the western U.S. DMAs include: The Seattle Times (SeattleTacoma, WA), The Oregonian (Portland, OR), The Sacramento Bee
(Sacramento-Stockton-Modesto, CA), U-T San Diego (San Diego,
CA), The Arizona Republic (Phoenix, AZ) and The Salt Lake Tribune
(Salt Lake City, UT).
Some ads are priced by the column inch, while others are priced
based on a set ad space (multiple column inches). Newspapers like
The Plain Dealer, The Denver Post, The New York Times, and San
Francisco Chronicle have more expensive 6 column inch ads, so the
number of ads during the campaign year was decreased to 18
instead of 21. Twenty-one was chosen as the starting number after
the total amount allocated to newspapers in hub cities was divided
by the total cost of all eight newspapers’ single ads.
At first, the total budget for newspapers in the top western U.S.
DMAs and those in United hubs was divided in half. After
calculating each column inch rate and number of ads possible, it
was decided it is best to allocate $613,484.92 to newspapers in
United hubs and $608,152.32 to newspapers in the top western U.S.
DMAs. Newspapers in general have a broad reach, credibility with
the audience and deliver information in a timely manner. These
advantages may be offset by the creative constraints, poor
reproduction and short life of each issue.
For a breakdown of circulation, cost per ad and total cost by
newspaper in each hub city, please see Appendix 8.
WESTERN U.S. DMAs
Each of the six newspapers in the western U.S. DMAs will have 24
United ads (each measuring 12 column inches). The total amount
allocated to the western U.S. DMAs, $608,152.32, was divided by
the total cost of all six newspapers’ single ads to equal 24 ads in
each publication. Instead of the six column inch ads in the hub
cities’ newspapers, the ad size was increased to 12 column inches as
the column inch price is less expensive than that for the hub cities’
newspapers. These cities are important to include since our target
audience lives and works in these cities.
A breakdown of circulation, cost per ad, and total cost per
newspaper in each DMA can be found in Appendix 8.
21
Media Strategies
NON-TRADITIONAL
SOCIAL MEDIA
Six percent of the year’s campaign plus the surplus left over from
other media’s budgets will go towards non-traditional advertising
efforts, totaling $1,227,662.76.
Social media efforts will comprise $100,000 of the non-traditional
budget and will go towards sponsored tweets on Twitter and ads on
Facebook. For free social media efforts, we will maintain accounts on
Facebook, Twitter, Instagram and Pinterest. Facebook and Twitter
will focus on promotions as listed in the “Sales Promotion” section as
well as reference relevant articles about the airline industry. Twitter,
more specifically, can deal with customer service complaints and
give travelers updates on weather delays. The Instagram account
will prompt customers to send in pictures taken on vacations or
business trips after flying with United Airlines. They will use the
hashtag “#United” to reference the pictures taken. United Airlines
will have a Pinterest account to post "dream vacations" to different
boards to showcase areas that United serves.
NFL TEAM SPONSORSHIP
According to MRI data, United Airlines’ customers are very likely
to watch professional football games on TV over the
weekend (27.7% down and index of 111). If the NFL creates a new
football team to be based in Los Angeles within the campaign year,
United will use $1,000,000 of its non-traditional advertising
budget to become a bottom-level sponsor for the new team.
For this $1,000,000 sponsorship, we will assume we will receive
two banner ads around the stadium, five promotions throughout
the season and two ten second radio or TV spots per home
game. There will be promotions for those who fly United to win
tickets to football games as well as contests during the game to win
round trip flights with United. This directly connects the
sponsorship to the brand and with audience interaction, will
improve brand awareness.
By choosing to sponsor a team or stadium that will have TV
coverage as well as a large audience, both in the stands and on TV,
the sponsorship money will go even further to improve brand
awareness.
AIRPORT BUS WRAPS
We will dedicate the remaining non-traditional budget to bus wraps,
totaling $127,662.76. The wraps will be on city buses in United's top
western DMAs and on pre-travel transportation vehicles at United's
hub airports. The bus wraps will feature drawings of people sitting
on a United airplane. The drawings will be headless, so when a
passenger sits in a seat on the bus, it will look like they are on a
plane.
For an example of this advertising technique, please see Appendix
12.
If the NFL does not add another team, we will look for other
relevant opportunities for sponsorship such as another football or
soccer team.
22
Media Strategies
SCHEDULING & TIMING
GEOGRAPHY
In the entirety of the media mix that we selected for our United
Airlines media plan, a pulsing plan was found most appropriate
for scheduling. The associated graph (see Appendix 9) shows the
seasonality of each media type and when advertisements will be
purchased throughout the year.
Media spending will be divided between national and two types of
spot areas: United Airlines’ hubs and the top western United States
DMAs. The western DMAs were chosen based on MRI data showing
that United passengers are 78 percent more likely to live in the
western Census region. Furthermore, the MRI data shows that 40.8
percent of United passengers live in this region. This is compared to
the next greatest concentration of United customers, which MRI
shows as 24.7 percent living in the Southern Census Region.
Because of the budget constraints, our hopes to buy national TV
and magazine advertisements throughout the entire year could not
come to fruition. The majority of all advertising takes place in the
heavy-up months, which are April, June, July, August and
December. These months were chosen based on the airline
industry’s seasonality, with much more traveling taking place
during April for spring breaks; June, July and August for summer
break; and December for holidays, including Christmas.
However, there are various Internet and newspaper
advertisements running throughout the year – during both normal
and heavy-up months.
We could not save much money in choosing a different dayparts
for TV and radio spots because our target audience watches TV
during some of the priciest times for advertising, according to MRI
data. To make the ads more affordable, we changed the length of
the spots to 15 seconds instead of 30 seconds. We decided it is
more important to advertise while the target audience is tuned into
the medium rather than not reach them at all.
Since United Airlines tends to have a strong presence in their hub
cities, we wanted to be sure that those DMAs are represented in our
media campaign. These include Chicago, IL, Cleveland, OH, Denver,
CO, Houston, TX, Los Angeles, CA, Newark, NJ, San Francisco, CA and
Washington D.C. For reference, Appendix 10 contains a map of the
United States with each hub represented by a blue dot.
The western DMAs as chosen based on United’s customer base,
airline location, and strength of brand presence are Seattle-Tacoma,
WA, Portland, OR, Sacramento-Stockton-Modesto, CA, San Diego,
CA, Phoenix, AZ and Salt Lake City, UT. See Appendix 11 for a map of
each of these DMAs.
These scheduling and timing strategies should result in the most
efficient use of money in advertising for this campaign.
See Appendix (3) for the full pulsing schedule.
23
Media Strategies
SALES PROMOTIONS
GROUPON DEALS
During the twelve-month campaign, United should encourage both
existing and new customers to fly on their airline by offering
discounts and special benefits including special rates during nonmajor holidays, MileagePlus promotions, Groupon deals for United
Club entry and rental car discounts.
Since 13.8 percent of the United target visits Groupon.com
according to MRI data, United will offer two visits to its United Club
for $50 with the purchase of a round-trip ticket. After visiting the
airport lounge, which includes free Wi-Fi, beverages, snacks and
assistance with reservations and flight status, United customers will
still want access to the club after their two visits.x It will encourage
more customers to become United Club members or United Star
Alliance Gold members so they can have access to the lounge every
time they fly.
FLIGHT DISCOUNTS
Following the creative objective to encourage customers to “Be
There,” there will be a fifteen percent discount on flights around
Valentine’s Day. As February is not one of the heavy travel months,
discounted rates around Valentine’s Day will encourage those who
might not normally travel during this time, to travel and travel via
United.
FREE WI-FI
Mileage Plus customers will receive free Wi-Fi both in the airport
terminal and during the flight beginning in November and ending
January 1 (the end of the campaign). By offering these deals that
save travelers the sign on fee, they will sign up for the MileagePlus
rewards program (including the credit card), use the credit card for
holiday shopping, earn miles to fly United and therefore become
more loyal customers.
ECONOMY PLUS UPGRADE
After MileagePlus members earn 100,000 miles by traveling with
United, they will have the option to upgrade to an economy plus
seat which has more legroom and has the option to board the
airplane sooner so they can take advantage of overhead bin space
for luggage. w This will encourage customers to become more loyal
to United as they want to reach the 100,000-mile marker and
redeem this offer.
FREE CHECKED BAG
United customers will receive a free checked bag when they fly
within the first week of a non-peak travel month. Instead of paying
$25 for the first checked bag and $35 for the second, travellers
during this time period will not have to pay a baggage fee for their
first bag. y This will encourage flying during this time period as
well as making boarding and deplaning more stream-lined
processes. Flights will be more likely to be on time, as flight
attendants will not have to check extra baggage during the
boarding process. Once customers see how easy it is to fly United
(because of the lack of large suitcases in the airplane cabin), they
will want to travel with the airline again.
RENTAL CAR DISCOUNTS
During non-peak travel months, United will partner with a rental
car company to offer discounted rates on rental cars. Since nonpeak travel months for airlines are most likely similar to those of
rental car companies, this promotion will encourage United
customers to rent a car when they might not normally. This
promotion will benefit the rental car company enough so it will
agree to participate, but most importantly, it will encourage
travelers to fly with United.
MILEAGE PLUS PROMOTIONS
United’s loyalty program, MileagePlus, will offer double miles when
flying during the first weekend of a non-peak travel month
(January, February, March, May, September, October, November).
This will encourage existing MileagePlus members to fly during this
time and also encourage flyers to join the loyalty program.
24
Media Strategies
SALES PROMOTION BUDGET AND MEDIA
The sales promotion budget will be $100,000, taken from nontraditional advertising efforts. Flight attendants and gate agents will
announce the promotions over the loud speaker on airplanes and in
airports. There will be e-mail blasts to MileagePlus members about
relevant promotions to encourage their participation. Both of these
methods of advertising will not cost anything, other than the
production of the script to be distributed among employees as well as
the production of the email layout.
Sales promotion ads can be placed in already-determined websites,
magazines, newspapers, TV and radio ads if there is not any relevant
content to be advertised in its place. The majority of the $100,000 will
go towards out-of-home ads and kiosks placed in airports in the eight
hub cities. Billboard-style ads will be placed on the walls of airport
terminals advertising the promotions one or two months before the
promotion occurs. Kiosks will have United Airlines employees
explaining the advantages of the MileagePlus rewards program and
the promotions that go along with it.
25
Creative Brief
BACKGROUND/OVERVIEW
This campaign will focus on the idea that United is the best way to get you from point A to point B. For United and its customers, flying isn’t
about all the fancy additions or extras. It is about getting you where you need to go so you can get on with the things that really matter in
your life. United understands that traveling can be difficult, and they are committed to making the travel experience as simple as possible.
THE BIG IDEA: “BE THERE.”
The single most important thing to communicate is that United Airlines is the quickest, safest and easiest way to fly. Customers can “Be
There” without having to deal with all the usual stresses of flying.
TARGET AUDIENCE: WHO WE’RE TALKING TO
Our target audience is men and women aged 35-54 who travel for either work or leisure. These people are married with or without children.
They live in smaller metropolitan cities and suburban areas. Most are homeowners that have at least a college education and make more than
$75,000 a year. They spend time on the Internet, watch television and videos and they read magazines and newspapers.
CALL TO ACTION
Customers should choose to fly United more frequently than other airlines. The goal of this campaign is for customers to book a flight with
United Airlines. If they don’t book a flight in the near future, they should be able to recall our slogan “Be There” and think about choosing
United in the future.
MEDIA MIX/ACTION PLAN
Our campaign will be positioned in national Internet spots and national magazine ads. We will also run advertisements in spot newspapers,
spot magazines, spot radio and spot TV in the top western DMAs and major United hubs. We will sponsor a new NFL team and create brand
awareness from a non-traditional standpoint. Internet spots will focus on a series of online advertisements using banner ads and
commercials on websites where United Customers frequent (See Appendix 14). National and local magazine ads, and spot newspaper ads will
feature the slogan, “Be There” in a modern and innovative way (See Appendix 13). Promotions around the holidays will also help ensure that
customers fly United (See Appendix 13). To better reach our target audience, we plan to advertise within the United travel cycle, which
includes pre-travel, at airport, in club, on board and post travel. It is our goal to heavily promote United Airlines within that cycle. For
example, creative bus wraps for pre-flight transportation, in-airport and in-flight advertising through national magazines and websites and
post travel advertising through everyday mediums. The advertisements for this campaign will be serious yet playful, while highlighting
United’s strengths of the ease of travel. We want to engage the consumer and get them excited about United, while maintaining the
professionalism that helps United fly safely and efficiently.
BUDGET CONSIDERATIONS
Due to budget constraints, our campaign will employ both national and local tactics to entice United customers to fly. By appealing to a wide
variety of customers through national magazine buys and advertisements on National websites that United customers frequent, our national
buys will have a big impact on consumers in our target audience. To further drive customers to fly United, local campaigns aimed at top
DMAs and major United hubs will appeal to our target audience by focusing on their location and everyday activities.
26
Appendix
Appendix (1): United Airlines Post-Merger Logo
Appendix (2): Competitive Data
27
Appendix
Appendix (3): United Airlines Advertising Examples
Appendix (4): Competitive: Southwest Airlines
Appendix (5): Competitive: JetBlue
Appendix (6): Competitive: U.S. Airways
28
Appendix
Appendix (7): Population Estimate
Total
Age 35-44
Age 45-54
Married
Bachelor's or Higher
Management/Business/Science/Art
Occupation
Total
Age 35-44
Age 45-54
Married
Bachelor's or Higher
Management/Business/Science/Art
Occupation
Total
Age 35-44
Age 45-54
Married
Bachelor's or Higher
Management/Business/Scie
nce/Art Occupation
LOW ESTIMATE
HIGH ESTIMATE
AVERAGE ESTIMATE
MEDIAN ESTIMATE
Chicago
9,504,024
13.8%
14.4%
46.8%
34.2%
37.3%
Cleveland
2,068,283
12.5%
15.4%
45.4%
27.9%
36.8%
Denver
2,600,594
14.8%
14.3%
49.2%
38.4%
41.1%
Houston
6,086,895
14.3%
13.8%
49.8%
28.9%
36.1%
LA
12,944,801
14.4%
14.1%
44.0%
31.0%
36.2%
New York
19,015,900
13.8%
14.7%
45.5%
36.2%
39.6%
Phoenix
4,263,236
13.6%
13.0%
48.1%
28.5%
35.3%
Portland
2,262,702
14.6%
14.1%
49.5%
34.2%
38.8%
Sacramento
2,176,235
13.1%
14.2%
47.3%
30.1%
39.3%
Salt Lake
City
1,145,905
13.5%
11.7%
53.1%
31.0%
36.3%
San Diego
3,140,069
13.4%
13.7%
47.0%
33.7%
40.0%
San
Francisco
4,391,037
14.9%
14.8%
47.5%
43.9%
45.7%
Seattle
3,500,026
14.6%
14.8%
49.8%
37.1%
42.0%
Washington
D.C.
5,703,948
14.8%
15.1%
48.5%
48.0%
50.7%
TOTAL/
AVERAGE
78,803,655
14.01%
14.15%
47.96%
34.51%
# OUT OF
TOTAL
78,803,655
11,038,141
11,150,717
37,794,233
27,195,141
36.04%
28,400,837
DEMOGRAPHIC
AGE 35-54/MARRIED
AGE 35-54/BACHELOR'S
AGE 35-54/MANAGEMENT OCCUPATION
AGE 35-54/MARRIED/BACHELOR'S
AGE 35-54/MARRIED/MANAGEMENT
MARRIED/BACHELOR'S
MARRIED/MANAGEMENT OCCUPATION
EQUATION
(22,188,858 * 47.96%)
(22,188,858 * 34.51%)
(22,188,858 * 36.04%)
(10,641,776 * 34.51%)
(10,641,776 * 36.04%)
(37,794,233 * 34.51%)
(37,794,233 * 36.04%)
ESTIMATE
10,641,776
7,657,374
7,996,864
3,672,477
3,835,296
13,042,790
13,621,042
3.7 million
13.6 million
8.6 million
8.0 million
*All population information gathered from http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t
29
Appendix
Appendix (8): Hub & Top Western DMA Newspapers Circulation & Cost
Newspaper
City (Hub)
Circulation
Cost*
Number of
Ads
Total Cost
Chicago Tribune
(Travel Section)
Chicago, IL
388,83840
$723.80 (2
columns x 3.5”)38
21
(7 col. in. each)
$15,199.80
The Plain Dealer
Cleveland, OH
219,50944
Denver, CO
226,11844
Houston, TX
234,48344
18
(6 col. in. each)
18
(6 col. in. each)
21
(6 col. in. each)
$91,800**
The Denver Post
The Houston
Chronicle
~$850 per
column inch**
$862.64 per
column inch39
$676 per column
inch
$91,260**
$96,228
The New York
Times
(Travel section)
LA Times
(Travel section)
New York, NY
717,51344
$1,114 per
column inch41
Los Angeles, CA
454,49844
$1064 (2 columns
x 7”)42
San Francisco
Chronicle
San Francisco, CA
212,55043
~$845 per
column inch**
18
(6 col. in. each)
21
(14 col. in.
each)
18
(6 col. in. each)
The Washington
Post
Washington, D.C.
434,69344
$891 per column
inch45
18
(6 col. in. each)
Appendix
Newspaper
City (DMA)
Circulation
The Seattle
Times
Seattle, WA
206,51746
The
Oregonian
Portland, OR
209,08342
The
Sacramento
Bee
Sacramento, CA
192,19949
U-T San
Diego
San Diego, CA
208,93150
The Arizona
Republic
Phoenix, AZ
274,78344
The Salt Lake
Tribune
Salt Lake City,
UT
110,54653
Cost*
$425.50 per
column
inch47
$263.70 per
column
inch48
~$395 per
column
inch**
$459 per
column
inch51
$495 per
column
inch52
$73.44 per
column
inch54
$93,165.12
$85,176
$120,312
$22,344
Number
of Ads
24 (12 col.
in. each)
Total Cost
24 (12 col.
in. each)
$75,945.6
24 (12 col.
in. each)
$113,760**
24 (12 col.
in. each)
$132,192
24 (12 col.
in. each)
$142,560
24 (12 col.
in. each)
$21,150.72
*All costs are for
ads in a publication
Monday-Friday.
**Estimated cost
based on a
newspaper with
similar circulation.
Appendix (9): Pulsing Schedule
$122,544
*All costs are for
ads in a publication
Monday-Friday.
**Estimated cost
based on a
newspaper with
similar circulation.
30
Appendix (10): Map of United Hubs
Appendix
31
Appendix (11): Maps of United’s Top Western DMAs*, Con’t
*U.S. Map from:
http://www.imagemaps.com/united_states.p
hp
Appendix (11): Maps of United’s Top Western DMAs*
Appendix
San Diego DMA
Seattle-Tacoma DMA
Sacramento DMA
32
Phoenix DMA
Salt Lake City DMA
Portland DMA
*All DMA Maps from:
http://www.ustravel.org/
research/destinationinsights/designatedmarketareas#Washington
Appendix (12): Bus Wrap Example
33
Appendix
Appendix (13): Creative Examples – Print Ads
Appendix
Appendix (14): Creative Example - Commercial
34
35
End Notes
1
2011 10-K Annual Report
http://www.nytimes.com/2012/07/27/business/uniteds-profit-falls-on-merger-problems.html
3
http://online.wsj.com/article/SB10001424052748703933404576170393021650666.html
4
http://articles.chicagotribune.com/2012-01-05/business/chi-united-to-keep-rhapsody-in-blue-as-theme-song-20120105_1_theme-song-rhapsody-united-airlines
5
http://www.unitedcontinentalholdings.com/
6
https://hub.united.com/en-us/News/Company-Operations/Pages/united-proud-to-fly-challenge.aspx
7
http://www.prnewswire.com/news-releases/united-airlines-launches-tv-advertising-to-support-campaign-for-2012-team-usa-164021146.html
8
http://www.united.com/web/en-US/content/company/advertising/commercials.aspx
9
http://www.nbcnewyork.com/news/local/United-Airlines-Ground-Zero-Ad-Land-WTC-NYC.html
10
http://travel.usatoday.com/flights/post/2012/09/united-airlines-frequent-flier-ad-campaign/837019/1
11
jetblue.com
12
southwest.com
13
https://twitter.com/USAirways & https://www.facebook.com/USAirways?ref=ts&fref=ts
14
https://twitter.com/Delta & https://www.facebook.com/delta?ref=ts&fref=ts & http://news.delta.com/
15
https://twitter.com/AmericanAir & https://www.facebook.com/AmericanAirlines?fref=ts &
http://www.aa.com/i18n/aboutUs/main.jsp?anchorEvent=false&from=Nav
16
http://www.ustravel.org/news/press-kit/travel-facts-and-statistics
17
http://www.ustravel.org/sites/default/files/page/2009/09/USTravelAnswerSheet_June2012.pdf
18
MRI+ Mediamark Reporter
19
http://www.gfkmri.com/Shortcuts/ClientService/DataMethodologyFAQs.aspx#_Toc184541307
2
20
21
http://www.unitedcontinentalholdings.com/documents/FactSheet.pdf?file=united_factsheet.pdf&type=pdf
http://www.unitedcontinentalholdings.com/index.php?section=about
23
http://blog.seattlepi.com/airlinereporter/2012/09/24/united-airlines-takes-delivery-of-their-first-boeing-787-dreamliner/
24
http://www.huffingtonpost.com/2009/07/08/united-breaks-guitars-pas_n_228062.html
25
http://articles.nydailynews.com/2012-09-21/news/34007819_1_pet-deaths-airline-worker-dog
26
http://www.smartertravel.com/blogs/today-in-travel/united-loses-child-traveling-alone.html?id=12282302
27
http://articles.latimes.com/2012/mar/05/business/la-fi-mo-united-glitches-20120305
28
http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=IROLsecToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMDczMDEwL3RvYy9wYW
dl&ListAll=1&sXBRL=1 (page 7)
29
http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=irolSECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMDczMDEwL3htbC9zd
WJkb2N1bWVudC8xL3BhZ2UvMTU%3d (pages 13-14)
30
http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=IROLsecToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMDczMDEwL3RvYy9wYW
dl&ListAll=1&sXBRL=1 (page 15)
31
http://www.dallasnews.com/business/airline-industry/20120301-airtran-southwest-airlines-to-get-faa-ok-to-operate-as-single-carrier.ece
22
36
End Notes
32
www.compete.com
http://www.instyle.com/instyle/static/advertising/mediakit/instyle/generalad.html
34
http://www.timemediakit.com/us/rates-specs/national.html
35
http://www.rd.com/mediakit/pdf/rate-cards-2012/2012_RD_Rate_Card.pdf
36
http://mediakit.newsweekdailybeast.com/pdf/2012_NW_RateCard.pdf
37
http://www.nationalgeographic.com/mediakit/pdf/ng-magazine/Rates.pdf
38
http://advertising.chicagotribune.com/drafts/64665/68651/configure
39
http://mediakit.denverpost.com/images/rateCards/Natl-display-plus-FC-8-15-2011.pdf
40
http://extras.chron.com/banners/r/rates09/hc_national_rates_p1.html
41
http://nytmarketing.whsites.net/mediakit/uploads/rates/2012_Travel_RateC_PM3.pdf
42
http://www.latimes.com/advertiser/category/travel/
43
http://www.statista.com/statistics/193842/average-paid-circulation-of-the-san-francisco-chronicle/
44
http://accessabc.wordpress.com/2012/10/30/the-top-u-s-newspapers-for-september-2012/
45
http://www.washingtonpostads.com/sites/default/files/RC_General2012_0.pdf
46
http://accessabc.wordpress.com/2012/05/01/the-top-u-s-newspapers-for-march-2012/
47
http://www.seattletimescompany.com/advertise/currentrates.html
48
http://biz.oregonian.com/adrates/pdf/general.pdf
49
http://www.sacbee.com/2012/10/31/4950197/bee-circulation-drops-over-past.html
50
http://www.sandiegoreader.com/weblogs/news-ticker/2012/oct/30/most-u-t-circulation-numbers-decline-according-to-/
51
http://www.utads.com/ad_specs/rates/general/general2012/GeneralRatebook2012_PR34617.pdf
52
http://republicmediasolutions.com/uploads/pdf/NationalGrossAdRates2011.pdf
53
http://www.poynter.org/latest-news/mediawire/173101/how-the-deseret-news-nearly-doubled-its-sunday-print-circulation/
54
http://www.nacorp.com/marketing/pdfs/
35
http://www.united.com/CMS/en-US/products/travelproducts/Pages/EconomyPlus.aspx
36
https://www.united.com/web/en-US/content/travel/airport/lounge/amenities.aspx?Mobile=1
37
http://www.united.com/CMS/en-US/travel/Pages/CheckedBaggage.aspx
33
Images Sources:
http://skift.com/2012/11/08/united-airlines-says-sandy-cost-it-90-million-in-revenue-but-it-could-have-been-worse/
http://mediagallery.usatoday.com/United+Airlines
http://www.yaleruddcenter.org/newsletter/issue.aspx?id=9
http://www.gadling.com/2009/07/27/good-move-by-united-airlines-award-redemption-fees-to-be-elimi/
37