United Airlines Media Plan

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UNITED MEDIA PLAN
Presented by:
Sydney McKinney, Alex Mario, Brittany Raia,
Brad Booker, & Ryan Spencer
Executive Summary
United’s Brand
United Airlines is the world’s leading airline with hundreds of comprehensive domestic and global routes. It
strives to be the airline customers want to fly, the airline employees want to work for, and the airline shareholders
want to invest in. Since merging with Continental Airlines in 2010 to become United Continental Holdings Inc., the
two airlines have worked to consolidate and optimize their combined networks. According to recent data, United
has a 13.4% market share within the airline industry and a 12.87% share of voice.
The Challenge
In the past, United has not put customer service at the forefront of its priorities. It faced an immense amount
of negative PR in response to a viral youtube video “United Breaks Guitars,” which called out United’s poor
customer service. Also, according to the 2012 Airline Quality Ratings report, United had the highest rate of
customer complaints in 2011, beating out all other airlines. Additionally, United’s 3 main domestic competitors –
Southwest, Delta and American Airlines all have either good customer service already or have advertising
campaigns focused on customer service.
The Strategy:
A consumer relations-based campaign targeted at women professionals age 25-54 with a household
income greater than $150,000.
The goal of this campaign is to reach as much of the target audience as possible (ideally 75%+) with a
message about United’s new emphasis on customer service. The campaign should encourage the target
audience to choose United for their leisure trips because United is making strides to improve the customer
experience, both on the plane and off. United will make their flight process easy, comfortable and enjoyable.
Executive Summary Continued
The campaign should target female professionals traveling for leisure purposes because recent data shows
that the major market for domestic airlines is the private consumer, and that the business market is shrinking. Also
females are more likely to fly and to fly United than the general population, compared to men who are less likely to
do so. These women should be within the age range of 25-54 and should have a household income of
$150,000+. Age and household income are two very important determinants when it comes to an individual’s
likelihood of flying and there is support that individuals with these demographic characteristics are more likely to fly.
This campaign will utilize three types of media: spot radio, spot television and Internet. It will aim to reach
77.2% of the target audience an average of 6.5 times per month during months of high demand: May-July and
October-December, for a total of 500 GRPs per month in these months. Spot TV and spot radio will be used to
advertise during these heavy up months. The spot campaigns will run in United’s major hubs including Los Angeles,
Denver, Chicago, Washington, D.C., New York, NY, among others. The spot TV campaign will use 15-second
advertisements on late fringe/news day parts, which will reach the target audience that gets home around 5-6 PM.
The spot radio campaign will use 30-second morning drive spots, which will reach our target audience on their
way to work in the morning.
Additionally, a continuous, national Internet campaign will bolster reach and frequency throughout the
calendar year. The Internet campaign will utilize banner advertisements on these websites: Facebook.com,
LinkedIn.com, MarieClaire.com, TripAdvisor.com and NYTimes.com. These websites have high impressions and are
used often by the target audience.
The Creative:
The advertisements should encourage women professionals to fly United. They should emphasize United’s
new customer service oriented approach, with the main message relaying that United is revolutionizing the
customer experience, both on and off the plane. Since women in business are frequent travelers, this message will
resonate with them.
Industry Overview
The airline industry provides air
transportation over scheduled routes. The key
economic drivers behind the industry include
corporate profit, the price of crude oil, per
capita disposable income, domestic trips by US
residents, and in-bound trips by non-US
residents. Since 2009, the domestic airlines
industry has suffered economically as a result of
the recession. In a life cycle stage of decline
with high revenue volatility and high levels of
competition, in the past five years the industry
has remained flat with revenue growing
marginally at an estimated annualized rate of
0.3%. Currently on the rebound from this
economic situation, the industry has seen
improved performance as more passengers
boarded domestic flights in 2010 and 2011.
However, as growth in the industry is
anticipated, consolidation of airlines is also
anticipated as low-cost airlines prove to be
viable competitors1.
There are many economic factors that determine demand for domestic air travel,
including corporate profit and amount of disposable income. Demand increases as more
passengers and freight require transportation. The economic factors that play a role in
demand for domestic air travel include consumer and business sentiment, corporate profit,
disposable income, exchange rates and airfares. Other factors that influence air travel
include consumer preferences, the size of the country and population density, leisure time
availability and competition from substitute methods of travel.
Leisure travel includes all non-business related travel. Demand for leisure travel is
highly elastic as it fluctuates in response to amount of disposable income and amount of
leisure time available. Business travel includes all travel for business purposes. Business
travel has much less elastic demand as its determinants include corporate profit and
business sentiment2.
DEMAND DETERMINANTS
Innovation
Behind the scenes, airlines are using innovation to improve the
consumer experience for air travelers. Some of these innovations
include:
•  Equipment upgrades: United Airlines was the first to upgrade to the
Boeing 787 Dreamliner, a fuel-efficient aircraft designed to be a
“game changer” to the airline industry.
•  Entertainment upgrades: Many airlines now offer WiFi in-flight. Other
airlines, including Delta, offer free WiFi and iPad use in airport
terminals for passengers waiting for their flight. Additionally, new forms
of entertainment including in-flight television, movies, and music are
now offered by a variety of airlines.
•  Automation: Delta offers an automatic self-service turnstile that
allows you to check in for your own flight. Many other airlines have
followed in suit3.
Airline Seasonality
Demand for domestic flights fluctuates between three seasons including high
season, shoulder season, and low season. High season, from June to August and
from December 10th to January 10th, is when demand for domestic flights is the
greatest. Shoulder season, when demand for domestic flights is lower than high
season, spans from April to May and from September to October. Finally, low
season, when demand is the lowest, is from January to March and from November
to early December4.
Early Year
Late Year
High Season
June- August
December 10-January 10
Shoulder Season
April- May
September- October
Low Season
January- March
November- early
December
United: Business Situation
Back in 2009, United faced a hurdle of
negative publicity as a result of Dave Carroll’s viral
YouTube trilogy, “United Breaks Guitars.” Within a
week his satirical music video, which called out
United’s poor customer service and brand, had
gone viral across the web with over 3 million views.
Subsequently, United faced tremendous amounts
of negative PR resulting in an estimated loss of
$180 million to stockholders5.
In 2010 United Airlines and Continental
Airlines merged, creating the world’s largest airline.
Shortly thereafter, the company reported positive
returns for the first time in three years. With 13.4%
market share, United has maintained its revenue
stream by charging higher fares in lieu of reduced
number of travelers. With plans to cut unprofitable
routes, remove less fuel-efficient aircraft, and
expand in-air WiFi for customers, United intends to
see profitable returns from their effort6.
United and Continental both have a history of strategic advertising. Original advertisements included
United’s “Come Fly the Friendly Skies” and Continental’s “We really move our tail for you” campaigns. Shortly
thereafter, Continental launched its “Work Hard, Fly Right” campaign, in which business travelers were targeted
using appeals to humor. In 2004, United launched its “It’s Time to Fly” campaign, which also targeted business
travelers using an emotional appeal with a direct concentration on customer service7.
After merging with Continental in 2010 to become United Continental Holdings, Inc., United revamped
their marketing to merge the two brands together. This reimage involved the creation of a new logo, new
airplane design, and new advertising campaign. Media spend was conservative, totaling to $63.2 million in
2010. The New York Kaplan Thaler Group handled the original roll out of new advertising as described by the
Wall Street Journal:
“The new ads, which won't have a tagline, will highlight the combined airline's larger route network, new
"outlook," low-fare guarantees and various product attributes, according to a review of six examples.”8
By August 2011, United chose McGarryBowen and Horizon as new long-term agency partners to be
responsible for creative, digital, and media duties.9 Respectively, McGarryBowen delivered the “Before they
move us, we move them” campaign in correspondence with the 2012 Olympics10. The most recent campaign
features the MileagePlus rewards program claiming, “We’re #1 in award seat availability among U.S. global
carriers.”
PROMOTIONAL ACTIVITY
United: Where They Go!
•  United’s major hubs
include Los Angeles, CA;
Denver, CO; San
Francisco, CA; Chicago, IL;
Cleveland-Akron, OH;
Washington, DC; New
York, NY; and Houston, TX.
See chart to the left for
breakdown of main
airports11.
United Airlines competes primarily with traditional, network, low-cost, and even some regional
airlines. Historically, the industry has been dominated by larger airlines, consisting of those that make over
$1 billion annually. United faces competition on all fronts, even on the international scale where
companies such as AirFrance, Lufthansa, and British Airways vie for customers.12
There are a number of values that consumers look for in an airline that contributes to this
competition including flight prices, number and location of routes, customer service, and membership/
frequent flyer programs. Of all domestic airlines, Delta Airlines, Southwest Airlines, and American Airlines
are the biggest competition for United. 13
While the markets for both freight and passenger transport are different, there is a significant
advantage in providing both of these services. Many of United’s competitors benefit from this concept,
even though most profit is made from passenger transport. From legacy hub-and-spoke carriers such as
Delta to point-to-point low-cost carriers such as Southwest, the different types of competitors in the
industry create a market that is highly competitive. 14
COMPETITION: THE INDUSTRY
The fourth largest airline in the world when it comes to total passengers- miles transported as well as fleet
size is American Airlines. American supplies around $150 billion dollars annually to the U.S. economy. Along with
it’s regional affiliates, including American Eagle, American airlines makes around 4,000 daily flights serving 250
cities in over 40 countries. For five straight years following September 11, the company found itself in debt until
finally seeing increase in profits in 2006. Since this time, American airlines has focused much of its effort towards
sustaining costs. With much competition from other airlines, American created a special loyalty program featuring
gifts and seat upgrades. The company filed for a Chapter 11 bankruptcy in late November 2011 and began
making capacity cuts by July of 2012. Within the past few months, American has made it public that they are
looking to merge with another airline. As of September 2012, the company announced the possibility of job loss
to some 11,000 employees and a reduction in the number of flights.15
Advertising and promotional campaigns is an area that is greatly influenced by the airline industry
competition. American Airlines has devoted its advertising efforts in recent years to establishing a strong,
personal brand image that is deeply rooted in providing the best customer service possible. American Airlines
wants to create a very personal connection with the consumer and is able to do this by using logos and
slogans within campaigns. Currently, American Airlines has two slogans that they use including “Be yourself.
Nonstop” and ‘We know why you fly”. Both campaigns have reached both local and national audiences and
use different vehicles including newspapers and magazines as well as television.16
COMPETITION: AMERICAN AIRLINES
Competition: American Airlines
Strengths
•  Fourth largest in passenger miles transported
•  Very competitive in transcontinental market
•  Highest proportion of redeemable seating capacity
among legacy
•  Largest passgener carrier airline between the United
States and South America
•  One of the oldest, most established brands in the
industry
•  Highly rated/investor confidence17
Weaknesses
•  Declining emphasis of value over quality
•  West coast weakness inhibits ability to reach Asian
markets.
•  Credit rating inhibits ability to enter fuel hedging
contracts.
•  Cost structure is inferior and financial position is not
currently stable.
•  Large divisions create weak communication between
each division.17
Opportunities
•  Favorable wave negotiation
•  New Flightplan 2020 encourages investing wisely in
fleet, earning loyalty, strengthening global network.
•  Travel increasing in general
•  Potential for growth in Asian markets
•  Low interest rates
•  Upgrade business class on long-haul flights
•  Government backed loans 17
Threats
•  Increased air travel inconvenience
•  Business travel declining
•  Fuel market volatility
•  Availability of pricing information
•  Escalating militancy of labor unions
•  Growth in videoconferencing and travel alternatives 17
Delta is the largest airline in the world when it comes to fleet size, revenue passenger-kilometers flown, and
scheduled passenger traffic. Headquartered in Atlanta, Georgia, Delta operates extensively in both the
domestic and international network. Delta operates over 5,000 flights daily with a staff of 80,000 employees.
Delta grew in‬ size due to more than 18 subsidiary companies it acquired over the years. As the oldest airline still
operating in the U.S. and the sixth-oldest operating airline by creation date, it is a well respected airline and
one of the four founding members of the SkyTeam airline alliance program. Delta has tried to create different
“category” airlines within itself, both Delta Express and Delta Song were created to compete with the lower cost
airlines like JetBlue. However, both lines were shut down due to financial distress. ‬
‪
Delta’s new advertising campaign “Keep Climbing,” is very effective. It addresses the constant issues that
airlines and their passengers face, but explains that the issues they do have control over will be taken care of
by Delta and its 80,000 employees. Wieden + Kennedy, Delta’s advertising company behind the campaign,
claims that:
“Delta’s brand campaign, “Keep Climbing” is a declaration of the company’s commitment to making flying
better and a celebration of where the brand is and where it is heading. The truth we’ve uncovered is, no
one who flies is waiting for a bigger airline—they’re waiting for one that’s going to make flying better. This
is the thought behind Delta’s new tagline, “Keep Climbing,” and the campaign that supports it. The
campaign consists of television spots "Reach," "Action Reaction,” “Human Factor” and “Lift”, as well as print
ads, billboards, transit advertising, and a multitude of other executions.”18
COMPETITION: DELTA AIRLINES
Competition: Delta Airlines
Strengths
•  Very effective management
•  Large size advantage
•  Low costs translate to higher profit
•  Loyal customer base
•  International alliances
•  Merger with Northwest Airlines19
Weaknesses
•  Inconsistent customer service
•  Overdependence on passenger revenues
in North America
•  Low performance of cargo division
•  Unfunded employee post retirement
benefits19
Opportunities
•  Possible passenger growth in Pacific Asia
•  Recent growth in airline industry
•  Expanding outreach to smaller businesses
•  Increased awareness as international
carrier through advertising19
Threats
•  Growing prices of fuel
•  High competition from other airlines
•  Most complaints of any airline (2010)
•  Environmental findings regarding gas
emissions19
Not only the largest low-cost airline carrier in the U.S., Southwest is also the largest airline in the U.S. by domestic
passengers carried as of June, 2011. Headquartered in Dallas, Texas, Southwest operates more than 3,400 flights per
day and is run by more than 46,000 employees. Only using Boeing 737 planes, Southwest is the largest operator of
this model worldwide and has 572 Boeing 737 planes in service. Each plane operates an average of six flights per
day. In May 2011, Southwest acquired AirTran Airways and flies to 78 destinations in 39 states. Southwest has the
highest rated customer service satisfaction out of any airline, and separates itself from the competition by putting their
customer’s needs first. Southwest has affected the airline industry as other airline realize they can learn from Southwest.
Two European airlines, EasyJet and Ryanair are two major airlines that have followed Southwest’s business model.
Focusing on how it is “fun to fly” and its low cost appeal, Southwest implemented many new ideas in the airline industry
such as: no assigned seats, which allows for quicker flight turnover, leading more flights in a day, which generates more
revenue and ultimately leads to lower fare costs.
Advertising for Southwest has helped spread the word of the humor and fun that lives within the company. Past
advertising campaigns for the company have all been witty, "Love Is Still Our Field", "Just Plane Smart", "The Somebody
Else Up There Who Loves You", "THE Low Fare Airline" and "Grab your bag, It's On!.” Currently Southwest is working on
creating a new campaign after it acquired AirTran. Southwest has picked their final four advertising agencies and is
waiting to process bids. 20, 21
COMPETITION: SOUTHWEST AIRLINES
Competition: Southwest Airlines
Strengths
•  Excellent customer service
•  U.S. lowest fare airlines
•  Free first bag
•  Offers credit based on the number of trips
with the airline instead of the total miles
traveled.22
Weaknesses
•  Limited sizes of airplanes
•  Scrutiny of potential employees based on
personality before skill could be
dangerous.22
Opportunities
•  Improve size of airplanes
•  Continue be the leading airline in
customer satisfaction
•  Extend flights to further destinations.
•  Expanding services to include services for
leisure or business classes.22
Threats
•  Intense competition and price discounting
•  Limited international flights
•  Government regulations that add to
operating costs.22
Market Share
Looking at the industry as a whole, United
Airlines and its closest competitors dominate the
domestic airline market (Figure 1 and 2). Delta
captured a majority of the share of market with 16.2%
between August 2011 and July 2012. Delta’s revenue
exceeded 92 billion dollars for this period. Southwest
had the second highest share of market with 14.9%.
Revenue for Southwest was around 85 billion dollars. In
comparison to its competitors, United falls in third
place for market share with 13.4%. United brought in
around 76 billion dollars for the year. Finally, American
Airlines holds 13.1% or the market and made around
74 billion dollars for the year. 23
Analyzing the share of market for the 2010 year
yields very similar results. There were no big changes
for the top market share holders. Delta had a 16.2%
market share while Southwest had a 14% market share.
However, American Airlines had the third highest market
share at 13.7% while United Airlines had only a 10.2%
market share. United Airlines’ transition from the 4th
highest market share holder to the third indicates the
tight competitive nature of the market. 23
Share of Market United Delta American Southwest Other Share of Voice
The sum for advertising spent across *Based on advertising spending
all media types in the airline industry was data for airline industry across all
$111,611,946.8 dollars for 2011. Of this media types. total expenditure, American airlines spent
$9,867,268.38, United Airlines spent
$14,360,644.29, Southwest Airlines
spent $51,997,791.72, and Delta
Airlines spent $16,385,608.62.
Converted into percentages across the
entire airline industry American Airlines
)("*(+"+%,(
-#./0,,%(
has a 8.84% share of voice, United
1%+02"/'(
Airlines has 12.87%, Southwest Airlines
!"#$%&'( 3%,03(
has 46.59%, and Delta Airlines has
!"#$%&'
()*+,-'
.%/$0'
(1*2+-'
14.68%. The remaining 17.02% share of
34%5#60"'
+*+1-'
voice is consisted of any remaining,
789$:;%<$'
12*=>-'
smaller airlines.
!
Other American United Southwest Delta Category Media Mix
Seven different types of media were used in
total for the 2011 year by the airline industry including
FSI coupons, local internet, local magazines, local
news, network television, Spanish language network
television, and spot radio. Each of these media were
used consistently across the different companies within
the airline industry with the exception of local news,
which was only used by Southwest, JetBlue and Frontier
airlines.
Spot Radio Network Television FSI Coupon Local Internet Local Magazines SLNT Spot radio was the most dominant category of
media that airlines used, representing 64.42% of the
media mix. The second highest media used was
network television with 17.88% of the media mix. The
rest of the mix included FSI coupon with 3.68%, local
internet with 1.13%, local magazines with 9.3%, and
Spanish language network television with 3.55%. Local
news had the least amount of use, with a
representation of <1.0%.
Local News United Airlines Media Mix
Comparing the United Airlines
Media Mix from 2011 with the overall
industry’s Media Mix, there are some
differences. United devoted 6.11% of
it’s media to FSI coupon, <1% to
local internet, 36.74% to local
magazines, 22.76% to network
television, <1% to Spanish language
network television, and 33.09% to
spot radio. United placed no
attention to local news, spent more
money on local magazines than spot
radio, spent double the industry’s
percentage on FSI coupon, and
spent smaller percentages on the
Spanish language network television
and local internet.
fsi coupon local internet local magazine network tv SNTV spot radio Competition: Price analysis
Company Price United $333 Delta $452 American $435 Southwest $385 *(Data taken from company websites.
Prices are based on one way tickets
from LaGuardia airport to LAX on
November 26, 2012.
Seats are “economy” class.
The price of a flight will vary based
on a number of different factors. Some of
these factors include where you are
flying from, where your destination is, what
class you choose to fly in, and when you
fly. Based on pricing data from 2012, the
average cost of a one-way flight from
New York to Los Angeles during the
Thanksgiving holiday would cost around
$333 for United24. Using these same
qualifications, Southwest charges an
average of $385 25, Delta charges
$452 26, and American charges $435
27. Looking at this example flight, United
and Southwest had the lowest prices
while Delta and American had the higher
prices.
The target audience for United Airlines is female professionals
traveling for leisure purposes. Women (index 107) are 7% more likely
than the general population to travel via plane, versus Men (index 92)
who are 8% less likely to do so. Women (index: 105) are also 5% more
likely than the general population to fly United, compared to men
(index: 94) who are 6% less likely.28
The target should be women flying for leisure purposes because
recent data shows that the major market for domestic airlines is the
private consumer, with about 71.3% of industry revenue coming from
individuals and households (in 2012) either flying for leisure purposes
or sending cargo privately. This is up from about 69.5% in 2007. The
business market for domestic airlines is shrinking, making up about 24.6%
of the market in 2012, down from 26.7% in 2007.29
TARGET AUDIENCE PROFILE
In general, more people travel for personal reasons than for business (42% to 16%,
respectively).30 In addition, women are also more likely to travel for personal reasons. They
are 13% more likely to travel for leisure than the general population and are also more
likely to do so compared to men, who are 14% less likely to travel for personal reasons.
Women are also more likely to travel for vacation (index: 104), compared to the general
population as well as men (index: 96). In addition, out of adults who travel for personal
reasons 58.3% are women, compared to 41.7% being men. Women who have graduated
college plus are also more likely (35%) to travel for personal reasons than the general
population, along with women with professional related occupations (31%) and women
with management, business or financial operations occupations (20%). Married women are
also more likely than women with other marital statuses to travel for personal reasons, with
over half (58.6%) of women who travel for personal reasons being currently married.
Women with household incomes > $150,000 are 26% more likely than the general
population to travel for leisure.31
TARGET AUDIENCE PROFILE
TARGET AUDIENCE: IDEAL CONSUMER
The ideal consumer for United Airlines is a white woman who falls in the 25-54 age range, has a
household income greater than $150,000, and is currently married. She has attended college and
possibly attended a graduate school and has a professional occupation or works in a management,
business or financial field.
These demographic segments are all more likely than the general population to not only travel via
plane, but also to fly United. For example, white women are 6% more likely to travel via plane and 12% more
likely to fly United. As for age, most United travelers fall in three age groups 25-34, 35-44, and 45-54. This
is probably because people in these groups have a greater amount of money and can afford flying as
opposed to driving, for example. There is similar data for people to travel via plane, with 31.9% of people
who travel via plane being women 25-54, compared to only 27.7% for men 25-54. Married women
(indices: 115, 120) are more likely than the general population, as well as never married, engaged or
widowed/divorced/separated women to travel via plane and to fly United as well. In addition, 52.5% of
women who fly United have graduated college plus, and 48.1% of women who travel via plane fall into this
segment as well. Women with household incomes greater than $150,000 are 112% more likely than the
general population to travel via plane, and are 117% more likely to fly United. Finally, women with
professional occupations (index: 158, 190) and occupations in management, business and financial fields
(index: 200, 247) are also more likely to fly via plane and to fly United.32
Universe: There are 12,667,011 women in the United States in the age range of 25-54 who have a
household income greater than $150,000.33
Women who travel via plane for personal/leisure reasons are less likely to have
children, they have a home value of $500,000+, are more likely to travel in business class
or in coach than in first class, they travel throughout the year, and they decide their trips on
their own (i.e. without a travel agent).34
As for media consumption, these women use the Internet, watch TV, listen to the radio
and read magazines and newspapers. They subscribe to digital cable and watch onDemand and pay-per-view movies. As for TV channels, they enjoy news channels, sports
(golf, tennis, football), movie channels (such as Hallmark and Lifetime), awards shows,
daytime and early morning talk shows and other miscellaneous varieties, such as HGTV,
TLC, and WE TV. They read various types of magazines, mainly airline, business/finance,
bridal, home service, fraternal, outdoor recreation, travel, and women. And they visit
numerous websites, including mail sites (gmail, Windows Live Hotmail, AOL mail), news sites
(abc.com, cbs.com, nbc.com), and music and movie sites (Hulu.com, iTunes.com,
Pandora.com, IMBD.com).35
TARGET AUDIENCE: PSYCHOGRAPHICS &
MEDIA CONSUMPTION
TARGET AUDIENCE: UNITED
United says its passengers have higher levels of education, household income and
discretionary spending. Its business travelers are affluent, and its leisure travelers are “highnet-worth familiar and individuals flying for pleasure.” Its passengers are employed in the
professional/managerial fields, are college educated & have household incomes greater
than $50,000.36
TARGET AUDIENCE: HHI & AGE
According to a Mintel Report on Airline Use in the Past 12 Months (Aug 2012), age and
household income are two very important determinants when it comes to individual’s likelihood
of flying. Those aged 25-34 are most likely to fly and they fly most frequently (an average of 6.2
trips per year). The report says travel for both personal and business reasons contribute to this
age group’s increased likelihood of flying. Although age is an important factor, household
income is the strongest determinant as to whether a person has flown. Affluent individuals have
a greater likelihood of having flown and fly most frequently. People with an income of
$100,000+ are more than three times as likely as those with incomes of less than $25,000 to
have flown.37
MEET AMANDA: A TYPICAL UNITED
PASSENGER
Amanda, 30, lives in a town home in Atlanta with her husband of 2 and half years. She graduated from a small
university in New England and moved to Atlanta to attend graduate school, where she earned her masters in business
administration. Shortly after graduation she began working as a consultant for Bank of America, where she met John, her
now husband.
Amanda and John have a combined household income over $150,000, they do not have any children (yet), and
they are registered to vote, having slightly conservative views. Amanda drives a 2006 BMW which she has had for a while.
She wants a new car but buying one is not at the top of her priorities right now. When she drives, Amanda listens to the
radio, tending to skip around, and preferring music sometimes and news others.
Amanda occasionally goes for runs before work and on weekends, sometimes bringing along her chocolate lab,
Molly, and never forgetting her iPod nano. She’s thinking about joining a gym because she would like to attend some of the
workout classes but she’s not sure if she’ll have time. In her spare time, Amanda enjoys shopping, cooking and reading. She
also enjoys hiking with John, spending time with her friends, and watching TV. Amanda usually finds commercials entertaining
and does not skip them. She watches an average of 4 shows during the prime season.
Amanda travels occasionally for her job and an average of 3-4 times per year via plane for leisure purposes. She
travels leisurely with John and also on her own to visit family and friends. She travels mostly in the summer months (MayAugust) and around the holidays (October-January). When she flies, Amanda brings her iPad, laptop, and her iPhone. She
occasionally buys a magazine at the airport to read during the span of time when you have to turn off all of your
electronic devices. While waiting in the airport, Amanda checks her Facebook and her email and scans some news sites.
She also reads on her iPad. Amanda rarely picks up a newspaper – instead preferring to get her news online from news
sites or from social media.
In addition to this media plan, which targets female
professionals traveling for leisure purposes, it is also
recommended there be an additional and separate
media plan that targets Young Male Professionals
traveling for business. Since the business sector still makes
up a good portion of the market share for domestic airlines
and because men are more likely to fly for business
purposes (34% more likely than the general population), it is
recommended that a separate media plan target this
audience. It should target young men because men falling
in the 25-34 age range are most likely to fly United (64%
more likely than the general population and more likely than
any other age category). It should target professionals
because men with professional and related occupations
are most likely to travel United (144% more likely than the
general population).38
TARGET AUDIENCE: RECOMMENDATIONS
UNITED: SWOT ANALYSIS
Strengths
•  Strong operational network
•  Strategic alliances (merger with Continental)
•  Relatively high employee productivity
•  The world’s largest carrier in U.S. with strong
global presence
•  Environmental initiative
•  Reward and membership program for loyal
customers.39
Weaknesses
•  Weakening financial performance
•  Heavy dependence on third party providers
•  Strong unions
•  Horrible customer service!!!!!
•  Last in on-time performance for 2012 (many
delays).39
Opportunities
•  Growing U.S. airlines industry
•  Global travel and tourism industry
•  Economic growth.39
Threats
•  Future oil prices
•  Intense competition and price discounting
•  World and U.S. Economy
•  Environmental regulations.39
OBJECTIVES
Marketing Objective
During calendar year 2013 (January- December 2013), increase
United’s market share by 5% to a total of 18.4% market share making
United a market leader. This represents an estimated $313,432,835
increase in sales (or 5% increase in sales).
Advertising Objective
During 2013, improve the brand perception of United among 77.2+
% of the 12,667,011 females age 25-54 with household income of
$150,000 or more.
Media Objectives
Target Audience & Media Mix
Target 12,667,011 female professionals age 25-54 with average household
income greater than $150,000 per year.
Reach, Frequency, and GRPs
Reach 77.2% of female professionals age 25-54 an average of 6.5 times per
month in the months of May, June, July, October, November, and December for
a total of 500 GRPs per month in these heavy-up months. Bolster reach and
frequency with a strong continuous monthly national internet campaign.
Scheduling & Timing
Maintain a base of monthly national advertising with heavy-up in spot markets
during months of high demand, including May, June, July, October, November,
and December.
Media Objectives
Media Budget Objective
Allocate $388,375 per month to a continuous internet
campaign. Allocate $746,750 to spot TV and
$976,500 to spot radio per month in heavy up months,
including May, June, July, October, November, and
December. Please see Appendix for detailed allocation
of money per month.
Geography Objective
Provide a constant base of national advertising with
heavy-up in spot markets during times of high demand.
Media Strategy: Internet
Internet is the fastest growing advertising medium, and of all mediums, Internet has the
biggest capability of reaching a large range of individuals. Websites have the ability of
catering to individuals so you are able to advertise specifically to your target audience. There
is also a quick conversion time that is associated with Internet. Many websites have links that
enable the customer to purchase the product/service immediately. The Internet is also an
efficient way to get information across to the customer. The customer can see details about the
product/service and help the consumer feel that they are making an informed purchasing
decision. Internet also has the capability of being more cost efficient than other mediums. By
using targeting options such as “pay for click”, companies can track the users and end up
paying only for those consumers that click on the advertisement. Internet can also be much
easier for the company in terms of creation and also in terms of buying the actual advertising
space. Banner ads are also an effective tool because they are used on high traffic websites
and provide a link to the company website. Women are heavy users of the Internet (8% more
likely than general population). 40
FACTS:
-Females 25-54 are 20% more likely than the general population to be heavy users of Internet.
-Women employed fulltime are 21% more likely than other women to be heavy users of the
Internet.
-74% of females 18-54 use Facebook and 48.8% of all Facebook users are females.
-48% of young Americans said that they find out about their news through Facebook.40
Since women plan their flights in advance, we want to offer a strong continuous
schedule of advertising. This will serve as the basis for our campaign as it will be both cost
effective and highly persuasive to our target audience. Since women in our target audience are
more likely to be heavy users of the internet than others, we will focus the majority of our
campaign in this area.
25 Media Tactics: Internet
We chose to run banner advertisements on targeted websites on a continuous,
year round schedule. The five websites that we picked to run advertisements on were
Facebook.com, MarieClaire.com, LinkedIn.com, NYTimes.com, and TripAdvisor.com.
We decided to use banner advertisements because they are visually stimulating,
provide a quick conversion link, and are able to reach a large number of individuals.
We also wanted to position United Airlines as an “up to date” brand and by using
the Internet we are able to connect with technology and business savvy working
women. Most women will buy their airline tickets in advance, so it is important that we
keep the message out there year round and not just during the busy season. We
chose Facebook.com because it is the most visited website in the world and
because it is a growing sector for middle-aged women. We chose MarieClaire.com
because its demographic composition matches our target audience. We chose
LinkedIn.com to tap into the professional social network. We chose NYTimes.com
because it is the most read business news source in the nation. Finally, we chose
TripAdvisor.com because it is one of the most used resources for travel by plane.
Media Strategy: Spot TV
We will use Spot TV in months of high demand to bolster our
campaign and attain high amounts of reach and frequency during
the months of May, June, July, October, November, and December. In
order to reach business women, who get home from work around
5-6PM on average, we will run our advertisements during the late
fringe/late news dayparts as these are the times they are most likely
to tune in to news information.
Spot TV is more cost effective than Scatter in the Early
Morning and Late Night day parts. The costs during Prime can
usually be around the same as Scatter. Spot TV can almost double
the inventory available for an advertiser and can be purchased
with a demographically targeted national footprint.
Advertisers using spot can still achieve the same GRP level as
national. 41
FACT: 78% of Americans get their news from local sources (on
average).
In addition, national advertisers do not always have a
national footprint. (Ex. Having 100 locations in Florida and only 4 in
North Carolina). The localized markets that will see the most benefit
are those that are targeted. In turn, the markets with little to no
presence are not involved. You can also analyze the ratings
delivery for programs more effectively because they air in different
parts of the country. 41
Media Tactics: Spot TV
Use Spot Television in Major Markets
United’s major hubs include Los Angeles, CA; Denver, CO; San Francisco, CA;
Chicago, IL; Cleveland-Akron, OH; Washington, DC; New York, NY; and Houston, TX.
Since these are the main places that United customers fly to and from, we will use
Spot TV to advertise to these markets during times of high demand, including May,
June, July, October, November, and December. In order to be both cost effective and
create the maximum impact upon the target audience, we will advertise during these
periods.
Use Late Fringe/News Spots
Using Late Fringe/News will allow us to reach our target audience, who get
home from work on average around 5-6PM.
Run 15 second advertisements for a total of 250 GRPs during the months of May,
June, July, October, November, and December in the above specified spot
markets.
Media Strategy: Spot Radio
In order to create a large impact during heavy-up months, including May,
June, July, October, November, and December we will run spot radio ads in the
same markets specified in the spot TV tactics. This way, we can reach the most
frequent United flyers, be cost efficient, and make a large impact.
By using spot radio instead of National radio, we will be able to better
reach our target audience, business women 25-54 years-of-age. There are
more than 9,000 independent radio stations within the United States, and
spot radio provides the advertiser many options as to where they want to
place their spot. Spot radio draws in 80% of all dollars spent on radio
advertising per year. A big reason for choosing Spot radio was so we could
better customize our message on a channel that was local to the area of our
target audience. National radio does not offer as many channels as spot
radio and is a much pricier option. 42,43
Media Tactics: Spot Radio
Use Spot Radio in Major Markets
United’s major hubs include Los Angeles, CA; Denver, CO; San Francisco, CA; Chicago, IL;
Cleveland-Akron, OH; Washington, DC; New York, NY; and Houston, TX. Since these are the main places
that United customers fly to and from, we will use Spot Radio to advertise to these markets during times of
high demand, including May, June, July, October, November, and December. In order to be both cost
effective and create the maximum impact upon the target audience, we will advertise during these periods.
Use Morning Drive Spots
We plan to use 30 second spots, which will keep the audience interested and works with our budget.
Since we only want to hit our specific target, we decided spot radio would reach our target on their way
to work, during the morning drive daypart. We chose to target on local news stations during the morning,
and due to budgetary constraints, we cannot afford the evening rush hour spot. We hope that the medium
to high frequency of our message on the radio combined with our other media vehicles will leave a strong
impression of our company and our message in their minds.
Run 30 second advertisements for a total of 250 GRPs during the months of May, June, July, October,
November, and December in the above specified spot markets.
Media Not Recommended: Newspapers
Newspapers as a medium are cluttered with a short life term
and often are poorly produced. As a result of all of these
factors, newspapers should not be used. Additionally, since the
poor quality of printing would reflect upon the United brand,
the medium should not be included as to deter negative
reflection upon the brand. While this medium could be used to
fulfill the geography objective, we have found that spot TV
and spot radio will be more effective at fulfilling this objective,
as they are where our target audience looks for entertainment.
Finally, since newspapers, in general, are a dying medium in
print form as fewer people subscribe to them every day, we will
use other mediums to accomplish our objectives as our goal is
maximum impressions.
Media Not Recommended: Outdoor
While out of home and outdoor media are typically
used to fulfill geographic objectives, other media
sources are more influential to our consumer. Additionally,
since outdoor advertisements have a very short
exposure time since drivers only see these billboards, etc.
very briefly, other media sources will be used to fulfill our
objectives. Finally, since out of home advertisements
cannot target specific demographics, we have found
that other media sources could be used to more
accurately pinpoint our target market for a more
successful campaign.
Media Not Recommended: National/
Primetime TV
Primetime offers limited spots to advertisers for high
costs. While we would love to advertise in a
primetime slot, our budget does not allow for this
targeting method. Additionally, since we are trying to
reach an audience that is geographically located in
the major United hubs, we will not be using national
TV spots to try and appeal to a regional audience.
Instead, we will buy specific spot TV advertisements in
order to obtain a maximum reach in these
geographic areas.
Media Not Recommended: Print
Magazines
One of the greatest disadvantages of using magazines in a
media plan is that they have limited reach and frequency.
Based on the reach and frequency objectives specified, this
media source would not fulfill the needs for the campaign.
Additionally, magazines are expensive to advertise in. While
magazines do allow for targeting, our campaign’s geographic
objective specifies that we will be targeting specific spot
markets with limited emphasis on national advertising due to
budget constraints. Therefore, since most magazines are
national, our campaign will not use this medium. Instead, to try
and obtain this market we will advertise online through specific
magazine’s websites in order to be cost effective.
Creative Brief
‪Brand Idea:‬
‪United is the world’s leading airline, with comprehensive domestic and global routes. Since its recent merge with Continental Airlines (2010-12), United
has further expanded it routes in an effort, on behalf of both companies, to consolidate and optimize the combined networks of the two airlines.‬
‪
Brand Personality:‬
‪Customer-oriented, accommodating and pleasant. Modern and sophisticated. “United is the airline customers want to fly, the airline employees want
to work for and the airline shareholders want to invest in” (United.com).‬
‪
Goals and Objectives:‬
‪Reach as much of the target audience as possible (ideally 77.2%) promoting United’s new emphasis on customer service, in an attempt to change
their view of the company and get them to choose United for their leisure trips.‬
‪
The Challenge:‬
‪There is a lot of competition in the airline industry. United does not have the best reputation among consumers relative to some of the other airlines,
especially since the “United Breaks Guitars” video went viral. This ad campaign should change that.‬
‪
The Strategy:‬
‪Create ads that will convince working women that they should fly United because United is customer service-oriented and will make their flight and
entire process easy, quick and comfortable.‬
‪
Who We Are Advertising To:‬
‪Women age 25-54 with a household income of greater than $150,000.‬
Amanda, 30, completed her masters in business administration 5 years ago and started working as a consultant for Bank of America shortly after
graduation. Amanda travels occasionally for her job, and an average of 3-4 times per year via plane for leisure purposes. Amanda travels leisurely
with her husband John, who she has been married to for 3 years, and also on her own to visit family and friends. Amanda and John have a household
income greater than $150,000, no children (yet), and live in Atlanta.‬
Creative Brief Continued
‪Consumer
Challenges and Barriers:‬
‪Other airlines have better customer engagement and higher customer satisfaction.‬
‪Because of the state of the economy, consumers, even those with high household incomes, are spending less. They may be cutting out leisure trips, they may be spending
less on their trips (i.e. choosing to drive instead of fly), and they’re likely looking for the cheapest flight.‬
‪
Our Proposition Is:‬
‪Flights done right. United will take care of you.‬
‪
And They Will Believe It Because:‬
‪United is the world’s largest, leading airline. The ads will highlight United’s emphasis on customer-service and how United is making strides to improve the customer’s in-flight
experience.‬
‪
Single Most Important Idea/Key Message:‬
‪United is revolutionizing the customer experience, both on and off the plane. (Since women in business are the most frequent travelers this message will resonate with the
target).‬
‪
Supporting Message:‬
‪United Airlines makes traveling comfortable and easy.‬
‪
Call to action:‬
‪Fly United. Interact with our brand.‬
‪
Tonality:‬
‪Light, friendly and relaxed. The ads should inspire action on the part of the consumer.‬
‪
Execution/Strategy :‬
‪Ads will run on spot radio, spot TV and the internet – Facebook.com, LinkedIn.com, MarieClare.com, nytimes.com and tripadvisor.com.‬
‪We will run a monthly national advertising with heavy-up in spot markets during months of high demand, including May-July, and October-December.‬
‪
Budget Considerations:
$15 million budget for the calendar year. ‬
Plan Summary
The strategies this campaign will employ will help United increase its market share, making it a market leader in the airline
industry. United is currently in a decent position relative to its competitors and in the overall market, but it is in a bad position in terms
of its customer service. With the increasing use of social media, which allows consumers to interact with brands and, most importantly,
to voice their opinions about a brand to their friends and followers, United needs to drastically improve its customer relations. This
campaign will help the company do so and will encourage the target audience to choose United.
This plan will help United garner a more positive image among consumers. With an emphasis on customer service and on
making the flying process easy, comfortable and enjoyable, it will resonate with women professionals, who are very frequent flyers
and change their perspective of United. Professional women age 25-54 with a household income greater than $150,000 and
traveling for leisure are the perfect target audience for this product. Women are frequent flyers, and those with household incomes
greater than $150,000 are more likely to fly than those with lower household incomes. The target spans a broad age range in
order to reach both young women – who tend to fly more for business and personal reasons, and also older women, who usually
have higher household incomes and more discretionary spending to put towards travel.
In order for the campaign to be effective, it should reach more than 75% of the target an average of 6.5 times per month
during the heavy-up months (May-July, Oct-Dec) with the message that United has revamped its customer service experience. The
national and continuous Internet campaign will bolster this reach and frequency, reaching the target audience through a mix of
websites including social media, news, personal and travel, that have high impressions and are used often by the target. A pulsing
media schedule allows for continued reach throughout the year, which is essential for an airline since people plan their trips in
advance, and spot coverage in heavy-up months of high demand. This plan proposes a way to satisfy the outlined objectives while
staying within the overall media budget of $15,000,000. United Airlines should use this media plan to implement a successful
campaign.
Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Internet Total GRPs LinkedIn.com Facebook.com MarieClaire.com NYTimes.com TripAdvisor.com Spot TV 250 Spot Radio APPENDIX: SCHEDULING FLOWCHART
250 APPENDIX: BUDGET ALLOCATION
APPENDIX: MARKET SELECTION
APPENDIX: YEAR AT A GLANCE
APPENDIX: SPOT FLOWCHART
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See 34
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TARGET AUDIENCE SOURCES
29: 36: Because the amount of people flying
for leisure or personal purposes is
increasing and since this group
currently accounts for a major portion
of the market share for domestic airlines,
we decided to target women who
are flying for leisure purposes.
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