Running head: JETBLUE MARKETING PLAN JetBlue Marketing Plan MGMT 250: Principles of Marketing Alexandra McConaghy, Ashley Vitale, Karina Erickson, and Natalya Miller-Odum Simmons College 1 JETBLUE MARKETING PLAN 2 Executive Summary Situation Analysis Industry Overview Porter’s 5 Forces Analysis See Appendix A. Environmental Analysis JetBlue Airways has always made a great effort to be sustainable and cater to its “green” customers. Corporate sustainability has recently been an important topic in the company's longterm success, and JetBlue has incorporated energy efficiency into almost everything that they do. Currently, JetBlue has an entire portion of their website dedicated to providing a detailed description of how they are being sustainable. Some of these initiatives include and are not limited to: recycling on all flights, building planes of lighter material to avoid offsetting significant amounts of CO2, and building sustainable buildings and operational centers. Key Success Factors There are five important assets airlines need in order to remain successful: culture, marketing and branding, technology, profit, and sustainability. The culture of an airline is what the consumer sees, experiences, and remembers when they fly again. Having a culture that caters and attracts consumers can allow an airline to stay relevant amongst its competition. Once a culture is established, it is important that the company is marketed and branded properly to reach all possible consumers. Media should be used to increase brand and service awareness as well as to drive revenue and profit. JETBLUE MARKETING PLAN 3 Since technology is continuing and becoming a large part of the world’s everyday culture, it is important for airlines to follow this trend. Technology can help improve the flow of business including the process of buying tickets, checking, including in flight activities. It is also important that they are up to date with computer systems that can help enhance decision making and management. Creating profit in the airline industry is very important. Older companies usually have a higher profit return that newer and regional airlines. Being a regional airline (especially a newer airline) much of the revenue is used to improve the fleet and improve technology. This can cause low net profits which can hurt the company financially. It is imperative for airlines to manage their money, so they are able to have a high profit to survive in the industry. Last but not least, sustainability is another asset an airline company must have to be and remain successful in the industry. As the world moves to becoming more sustainable, many consumers favor companies that value the environment and community. Airlines focusing on emitting less harmful gases and using sustainable products will and can remain ahead. They will retain consumers as well as attract new ones. Company Description JetBlue Airways Corporation is a well-known, low-priced airline in the United States based in Long Island, New York City……… Our target market is middle-class Americans. We provide lowcost air fares with a vast number of amenities like roomy leather seats, free snacks and drinks, satellite radio, television, and even in-flight Wi-Fi options. Our widely known brand has become among the top 59 airlines worldwide and ranked 7 on the world’s best regional airlines (Skytrax, 2014). With th over 170 planes in their fleet, JetBlue covers over 70 cities in the United States and has multiple destinations, even flying to the Caribbean and Latin America. Our main hubs are Boston, Orlando, Fort Lauderdale, Long Beach, California and New York City (JetBlue Airways Corporation, 2013a). We JETBLUE MARKETING PLAN 4 also have a significant amount of international partnerships. JetBlue has had great success over the years and has continued to increase profits as well as customer loyalty. Our company’s “mission is to bring humanity back to air travel” and keep customers coming back in the highly competitive airline industry (United States Securities and Exchange Commission, 2013). SWOT Analysis See Appendix B for the SWOT analysis table. Strengths. Strong customer satisfaction and loyalty. JetBlue Airways boasts an incredible amount of customer loyalty considering its relative novelty in the airline industry. It was named “Airline of the Year at Skytrax Airline Awards” (Skytrax, 2014) and scored very high in “Customer Satisfaction” in a J.D. Power and Associates study (J.D. Power and Associates, McGraw Hill Financial, 2014). JetBlue’s TrueBlue loyalty rewards program has been received well by customers who understand the importance of having no expiry or blackout dates for rewards. Long list of amenities. JetBlue prides itself on offering the most legroom available in coach, and also offers a long list of free amenities for passengers. The first checked bag is free on every JetBlue flight, as is inflight entertainment via satellite radio, digital TV screens, and Wi-Fi. A variety of snacks and nonalcoholic beverages are also free; many competitors charge for this service (JetBlue Airways Corporation, 2013a). In addition to these common perks of flying JetBlue, the airline offers supplemental programs for particular markets, including JetPaws--an in-flight pet travel program--and the new Mint seats, which include lie-flat seats, extensive legroom, 100 channels of TV on flat screens, JETBLUE MARKETING PLAN 5 and private doors which keep out the sounds and distractions of other passengers (Jones, June 2014). Strong focus on corporate social responsibility. JetBlue Airways is involved in philanthropic work and community programs which support childhood development, public health, and environmental sustainability. We have erected community playgrounds for underprivileged children, held flight simulations for autistic children and their families, contributed to natural disaster relief efforts, and invested funds into green initiatives (JetBlue Airways Corporation, 2013a). Global recognition and partnerships. JetBlue Airways is a global brand with destinations in multiple foreign countries and partnerships with foreign airlines such as Emirates, Aer Lingus, Singapore Airlines, and Icelandair. Most of their U.S.-direct foreign destinations are common tropical tourist locations (JetBlue Airways Corporation, 2013a). Weaknesses. Low market share. Due to the large amount of airlines in the industry, JetBlue’s share of the domestic airline market is relatively low at only 5% of a market valued at roughly $196 billion (MarketLine, 2014). With so many competitors vying for market position, this share limits JetBlue’s power at hub airports which do not want to sell terminal space to us. It may also be a result of JetBlue’s lowcost flights and its newness in comparison to other companies. High operational costs and dependence on New York market. Due to the size and necessary capacity of its fleet of aircraft, JetBlue faces some significant operational costs in order to successfully provide flights to domestic and international destinations. JETBLUE MARKETING PLAN 6 The company also depends strongly on the expensive New York market for its customers, which further raises its costs (MarketLine, 2014). Opportunities. Further global and domestic expansion. There are many additional opportunities to expand our market by seeking partnerships with large international airlines to increase profits and to become even more globally recognized. Developing in-flight technology. One of the points of difference between JetBlue and other major low-cost airlines is its array of free technology services to passengers. From satellite radio to cable TV to in-flight WiFi, advances in digital technology provide an opportunity for JetBlue to reach customers in various segments of the market. The consistent availability of innovative technology will be highly attractive on JetBlue flights. Threats. Fluctuating fuel and mechanical costs. The enormous cost of aircraft maintenance and jet fuel threaten to severely impact JetBlue’s bottom line. Although recently fuel prices have gone down after being up for several years, this fluctuation is not helpful to the company’s business or financial plans and predictions (Geier, 2014, October 23). Intense competition. More mature and established airlines than JetBlue are able to get terminal space at successful urban airports when they cannot. Those competitors also have retained much of their former customer loyalty. Strict regulations. JETBLUE MARKETING PLAN 7 As JetBlue continues to grow, they face some setbacks with the constant regulations from the local government that owns these airports. These regulations create bottlenecking for airlines when it comes to access to runways and gates (Gowrisankaran, 2002). There is also a bidding process to obtain a slot at an airport, and it is only granted access in the public’s best interest. Competitive Analysis Key Issues One key issue for JetBlue is the number of flight destinations that they offer. JetBlue does not offer flight service to every major city in the United States and has limited international destinations. Because of this, JetBlue is potentially losing a large amount of revenue. Several states do not have any access to JetBlue flights, which is cancelling out millions of possible customers. By expanding the airlines flight radius, it allows a larger amount of customers to enter the market. Another issue is the recently rolled out Mint program. JetBlue has grown their image by offering a customer value proposition of first class amenities at economy prices. With the release of this Mint program, their focus becomes contradictory since the airline is now pushing their new premium first-class seating. By offering the new program, JetBlue does not stand out from other competitors. It would be better to distribute the space used in the first class seating to improve the existing economy style setting. The final and most pressing issue facing JetBlue right now is our inability to entice investors to invest in our company. Many factors of our new plan must focus on improving investor relations by increasing revenue and returns. Marketing Goals JetBlue is approaching the crucial first quarter of the year, which will significantly influence decisions to invest in our company. Currently, JetBlue's annual ROI is at 5.3%--too low JETBLUE MARKETING PLAN 8 to encourage investment. To compete for market share, retain and increase customer loyalty, and drive future investment, we will relate prices for flights to amount of amenities. JetBlue believes that our customers desire highest value more than lowest fare price. Our annual goals for this marketing plan are as follows: Increase ROI by 4.7% from 5.3% to 10% (JetBlue Airways Corporation, 2013a)— stimulate investment of capital to increase long-term availability of destinations and services for customers Increase market share by 2 points from 5% to 7% (Jacobs, 2013, March 26 )—take market share from direct competitors including Southwest and U.S. Airways Increase customer growth rate by 3.84% from 5.16% to 9% (Office of the Assistant Secretary for Research and Technology, 2014)—stimulate trial and create an opportunity for adoption of our brand Increase TrueBlue loyalty program membership by 5% Marketing Strategy Target Market Selection and Market Segmentation For JetBlue, it is best to focus our new array of complimentary in-flight services and policies to young professionals and families. These market segments represent the highest chances of brand adoption and long-term customer loyalty. Young professionals want internet capability, roomy comfortable seats, and prices that are still reasonable. They want a brand that strives to take care of their individual needs. Young and older families want entertainment options, commitment to safety, friendly customer service members for their children, and a price that is affordable enough for multiple passengers. JETBLUE MARKETING PLAN 9 We want to make sure that we stay in the middle-class range but remain able to provide a competitive level of comfort and amenities for the right price. Remaining in the low-cost market, we will continue to expand programs that serve these specific market segments: free in-flight WiFi and spacious seats for professionals, along with entertainment options, 2 free checked bags, and TrueBlue loyalty benefits for families. These features will be included in our marketing to gain more customers in these target markets. Points of Difference A. Most legroom in coach B. Unlimited free drinks and snacks C. Free entertainment and productivity options--in-flight Wi-Fi, movies, and satellite radio We offer the “first-class service” experience to everyone without an unreasonable price. Giving our customers free options makes JetBlue able to produce a valuable flight experience. Positioning Statement For young professionals and families, JetBlue is the type of airline that provides comfort, entertainment and value through offering the most legroom in coach, unlimited snacks and beverages, and limitless in-flight TV and music entertainment options at a low price. Marketing Program Service Description and Changes JetBlue Airways Corporation offers one-way and round-trip fares to various domestic and international destinations. Our hub airports are located in New York, Boston, Orlando, and Ft. Lauderdale. JetBlue is known for providing superior customer service by treating them with humanity and understanding. In order to maintain such a reputation, we currently offer 1 free checked bag per flight, unlimited free snacks and beverages, and will soon launch in-flight Wi-Fi JETBLUE MARKETING PLAN 10 program that will be provided to all customers free. Many of our aircraft are equipped with television screens, cable channels, and satellite radio available in every seat. Feature Low prices on fares and baggage In-flight technology Unlimited snacks and non-alcoholic drinks Customer benefit Saves money Provides entertainment and productivity Makes you feel at home and well-cared for However, as of today, not all of these aircraft offer all of these amenities. The results of our online airline survey indicate that there are several important factors involved in choosing which airline to book travel with; some of these factors include affordable fare prices and baggage fees, spacious and comfortable seats, and entertainment options including Wi-Fi and television (see Appendix C). In addition, competition in the airline industry is fierce and we need to offer at least every amenity our competitors offer. Currently, Southwest’s market share is 11% higher than JetBlue’s as a result of having more destinations available to passengers and offering 2 free checked bags on every flight. To increase investment and gain market share, we will be offering 2 free checked bags on each flight and introducing even more advanced technology quickly. By doing so, we hope to gain enough of Southwest’s customers to increase investment, which will allow us to expand our routes and offer more destinations to our passengers. Pricing Strategy The pressure on JetBlue to offer a higher return to investors is evident. Analysts and investors are looking to higher-cost network carriers for returns (Jacobs, 2013, March 26; Carey, 2014, May 12). In response, JetBlue’s pricing strategy, beginning January of 2015, will follow a combination of traditional yield management pricing and a target ROI strategy. While our prices rise, standard amenities will increase as well. Though we will still be using yield management pricing, we will factor the target ROI into the prices affected by demand. JETBLUE MARKETING PLAN 11 With the current capital of $5,628,000,000 invested in JetBlue, our average one-way fare price will increase from $163.19 in 2013 to $180.16 in 2015 (JetBlue Airways Corporation, 2013a, p. 33). This average price is based on the need to draw more investors to JetBlue with a 10% ROI, instead of our current ROI of 5.3% (JetBlue Airways Corporation, 2013a, p. 33). Target ROI Price (10%): $163.19 + .10 x $5,628,000,000/33,166,012 = $180.16 per fare When analyzing the trends, JetBlue’s total passengers have increased from 2010-2013. Growth remained positive, but the rate of growth declined from 9.8% in 2012 to 5.16% in 2013. In 2012, JetBlue carried 28,934,369 passengers. In 2013, the airline carried only 30,427,534 passengers (Office of the Assistant Secretary for Research and Technology, 2014). However, in relation to the domestic and foreign airline industry, JetBlue is well above the average number of passengers. The company has been financially healthy, but in order to thrive, will need to increase revenue. Looking at the trend, because of the decrease in growth from 2012-2013, we will need a total of 33,166,012 customers in 2015 to reach our goal of a 9% customer growth rate (Office of the Assistant Secretary for Research and Technology, 2014). This 9% rate of growth assumes that our number of customers will grow in roughly the same way it did before the significant drop in 2013. 2010-2011:((26,352,900 — 24,198,698)/ 24,198,698) x 100 = 8.9% 2011-2012: (28,934,369 — 26,352,900)/ 26,352,900 x 100= 9.8% 2012-2013:((30,427,534- 28,934,369)/ 28,934,369) x 100= 5.16% (Growth Rates) JETBLUE MARKETING PLAN 12 Integrated Marketing Communications Strategy A recent Business Insider article claimed that JetBlue has two options in the airline industry “when [competing] on price: You cut economy class to the bone as far as the amenities go, charging for everything and packing in seats; or you court first- and business-class travelers and their ability to pay steeper fares” (DeBord, 2014, November 19). While DeBord’s message is sensible from an industry standpoint, it fails to express JetBlue’s commitment to the customer. We will lose the customers who love flying with us if we begin to treat them the same way as other airlines who choose the first option. However, if we court higher-class passengers, we will lose sight of our primary customer and have to alter our market positioning and CVP. We must find a way to increase profitability without “burning brand equity…[and without] figuring out how much like the rest of airline industry JetBlue can become without ceasing to be JetBlue” (DeBord, 2014, November 19). The more we push our customers’ limits by conforming to the industry norms, the faster we will lose them. It is essential that JetBlue takes the kind of risk that is most likely to produce the greatest reward for our brand and our customers—only then will stockholders begin to see the economic value of the JetBlue brand. JetBlue’s communication strategy will focus on marketing the three primary elements of our customer value proposition (CVP): comfort, entertainment, and value. As we will be offering a reimagined customer service and amenities lineup, we will view this as the growth stage of our product life cycle. We will utilize print ads in popular magazines, billboards, TV ads, and online ads on social media sites. These ads will demonstrate the comfort, space, and amenities available on our aircraft, the wide variety of in-flight entertainment options for passengers on all JetBlue flights, and our affordable prices on domestic and international fares. We will also market our TrueBlue loyalty program to current customers and continue monitoring and enhancing our strong JETBLUE MARKETING PLAN 13 reputation for social responsibility and community relations. We will be sure that customers are aware of our new Fly-It-Forward initiative and Blue Horizons by advertising them in our airport terminals, and in PSAs found in our internal publications in seat pockets and on our website. Advertising. Print magazine ads will feature a film strip of images of four models representing the two primary segments of our market: one African-American young man on his laptop holding a Dunkin Donuts coffee, representing our young business class market; one Caucasian toddler girl watching an animated movie and eating animal crackers, representing the young child in our family market; one Asian middle-aged woman resting comfortably representing the parent in our family market, and one Latino college-age boy drinking a Coca-Cola with large headphones in his hand with a city view in the window behind him, representing the millennial generation in our family market. On top of a background showing the late afternoon skyline of Boston, the large headline message will read “Shopping around for just the right flight? Shop no further.” The current JetBlue logo will be directly under the large text. Underneath the image strip in medium-sized font, the ad will explain: “With 2 bags free, unlimited snacks and beverages, and free Wi-Fi, movies, and satellite radio on every flight, we have what you are looking for. All of that, PLUS the most legroom in coach and affordable fares from Boston to Brussels.” These ads will be included in magazines targeted to women, young and older families, and young professionals—such as Good Housekeeping, Family Fun, People, Family Circle, Travel and Leisure, Entrepreneur, and Boston and New York’s business magazines. Billboards will catch the attention of consumers with a brief checklist- “Free food and drinks? ✓. 2 free bags? ✓. Free entertainment? ✓. Most legroom in coach? ✓.” Next to the list, the JetBlue logo will be clearly seen with the phrase, “The answer is YES.” Online banner ads will JETBLUE MARKETING PLAN 14 use the same message highlights in a bullet point format overlaying a lined-paper graphic background, so they can fit in smaller spaces. Television ads will include the same text as the print ads: the first portion read by an authoritative male voice, and the final sentence by an energetic female voice. Ten three-second intervals will begin with a Boston skyline view and a bluesy-rock instrumental song in the background, which will fade in and out throughout the 30-second spot. Then, the final nine intervals will show each of the features mentioned in the ad being used by the same four actors from the print ads. This will create continuity between advertising media. JetBlue’s past ad campaigns have utilized a highly recognizable set of colors, fonts, and geometric figures to market their brand; most recently, pigeons have been the face of the “Air on the side of humanity” campaign (Mullen, 2013, September 17). See Appendix B for examples. However, the lack of visual human representation may be causing the ads to lose relevance with customers. These new ads will use a multicultural approach that reaches our customers of various ethnic backgrounds in every stage of the family life cycle to reveal the universality of our CVP. This approach will target all segments of JetBlue’s market, while upholding the historical brand values that airline customers have long used to differentiate JetBlue from other high- and low- cost airline competitors. Because one campaign is intended to reach all of our primary segments, we will communicate to potential customers that JetBlue is an airline that has room for everyone: enough productivity for the businessman, enough comfort for the vacationer, enough entertainment for the young family, and low enough fares to keep even the broke college student happy. Sales Promotion. JETBLUE MARKETING PLAN 15 JetBlue’s TrueBlue loyalty reward program has won numerous accolades within the industry (JetBlue, 2014, August 5). Our customers feel valued as a result of the rewards they receive; however, the more customers who become TrueBlue members, the more profits we gain in the long-term. Within the company’s airport terminals, at the gates, and in the airplanes, there will be brochures advertising and explaining our TrueBlue program. These brochures will focus on features, customer rewards, success, and recognition from the industry. The information from those brochures will also be available in the “about” section of the TrueBlue program’s web page. Policies will be listed in the fine print. Public Relations. Although JetBlue is involved in a number of community partnership initiatives and programming, we will need to focus on the partnerships that are having the most impact on the largest numbers of people. The company will also need to focus on the kinds of causes and issues that customers care most about and tell them information that will help them trust our brand to deliver the highest quality of service to both the community and the customer. Our public relations strategy will focus on Fly-It-Forward and Blue Horizons events partnered with Autism Speaks. Recently, the Fly-It-Forward program started by our staff has been a great success and should be continued as another proof of JetBlue’s commitment to treating all of our deserving customers with humanity and integrity. Fly-It-Forward free flight nominees are either “fulfilling a dream, joining a humanitarian effort or making a meaningful impact on the world” and come from just about anywhere (Marketwired, 2014, November 3). This initiative is perfect for our public relations communications because it relies on the individual human element. There are names and faces with which people can connect the brand; while we give back to people who truly deserve the flight, we are also revealing to consumers that we are involved with them on a personal and relational level. JETBLUE MARKETING PLAN 16 We further reveal our commitment to the community and our customers through our Blue Horizons events. These events allow families with autistic children to simulate the flying experience on JetBlue aircraft while meeting captains and flight attendants and calming their fears of flight . These events show our corporate social responsibility and our dedication to serving families, an essential target market. JetBlue will release a variety of press releases regarding current involvement with the Fly-ItForward campaign and Blue Horizons. They will be distributed to the press, posted on our website, and made visible on signage within JetBlue terminals at hub airports in the Northeast. Budget. In the year 2013, $61 million was spent on advertising and $223 million was spent on total sales and marketing costs (JetBlue Airways Corporation, 2013a, pp. 48, 42). If we stay within $5 million of our 2013 budget, at $66 million, we will be able to focus our expenses on advertising to our target markets along the east coast, particularly in the Northeast regional hubs of New York and Boston. (Advertising Age, 2013, December 30; Blue Line, 2014; Carter, 2014, February 19; JetBlue Airways Corporation, 2013a; Vistaprint, 2014). Distribution Strategy Fares for JetBlue flights will be sold online at JetBlue.com, at various online booking agencies including Travelocity, Expedia, Orbitz, and Kayak, and through sales representatives at selected travel agencies and JetBlue ticket counters in our airports. This is a typical distribution strategy for airlines and allows customers access to our service from a variety of sources. Financial Projections In order to break even and cover our projected overall operating expenses of $5.39 billion, we will need to sell 29,923,291 one-way fares. In 2013, our operating expenses were JETBLUE MARKETING PLAN 17 $5,013,000,000 (JetBlue Airways Corporation, 2013a, p. 24); if we expect the increase of our operating expenses to grow at a 1.3% lower rate each year, we can expect a 7.54% growth of operating expenses for the year 2015. Break-Even Analysis: $5,390,980,000/$180.16 = 29,923,291 passengers Monitoring and Control We will implement our plan starting January of 2015. This will include the new amenities and prices. We have calculated our prices and projections based on financial data from 2013, as it was all the information available to us. In order to determine our success, JetBlue will have a quarterly financial evaluation in March of 2015, when we will look at the four aspects of our profitability discussed in our key marketing objectives. We will first examine the amount of revenue-producing customers we have during the first three months of the new plan, compared to the 2014 first quarter. Then, we will evaluate whether or not JetBlue’s market share has increased. We will then view current enrollment in the TrueBlue loyalty program and conduct overall customer satisfaction surveys which will show us how to meet all three objectives. A survey will be sent to all customers who purchased a flight during the first three months, which will give us insight into whether or not the customers were satisfied with the new amenities and prices. We will look at the amount of customers who purchased a second flight after their initial purchase, in order to see if customers were satisfied with their first flight and are interested in future purchases. JETBLUE MARKETING PLAN 18 Appendices Appendix A—Porter’s 5 Forces Porter's 5 Forces Threat of New Entrants/Potential Competitors: The entry levels for the airline industry are significantly low. Large corporations already run most of the market. All the companies are fighting to provide to same amount of services and products for flyers. Threat of Substitute Products: There are many options when traveling to a destination: By foot, train, car, bus or airline. People may rely their choice on timing, expenses, comfort or even just personal choice. When looking at just the airline industry, you need to look at other companies like Southwest that may be providing certain services that Jetblue doesn’t. Flyers can choose to pick a different airline due to the price, services provided and the efficiency of the plane. The Bargaining Power of Buyers: The buyer possesses the power to pick which transportation is best for them. They also have the power to pick which airlines is best for their needs or economically best fit for them. The influence how well JetBlue does as their main goal is to sell plane tickets to their customers. The Bargaining Power of Suppliers: High Pressure JetBlue relies on their suppliers due to the fact that they provide the actual aircraft and the food and drinks that are given on their flights. Without their suppliers, they could not provide service. Rivalry Among Existing Firms: Currently, the main competitors for JetBlue are American Airlines and Southwest Airlines. They all provide the same service of flying so they are always competing with their prices and the amount of amenities that they give to their passengers. JetBlue has many other competitors and needs to provide a level of service that is enough to stay competitive with the top airlines in the United States. JETBLUE MARKETING PLAN 19 Appendix B—SWOT Analysis Strengths Weaknesses Opportunities Threats High-ranked TrueBlue loyalty program/no blackout or expiry dates Flight delays due to congestion New global destinations available Customer reactions to Mint program Very strong focus on social responsibility/focus on children, families, and public health Recent flight scares and news of poor employee/customer relations Increased competitor costs Customer reactions to flight delays Focused on sustainability initiatives Employees unionizing Decreased competitor amenities (points of differences) Limited space in airports Global brand Limited international destinations Potential new aircrafts Fluctuating fuel prices High “Customer Satisfaction” ranking Long-term debt for leasing aircraft Joint ventures with global airlines Competitors offer better relationships with investors Named “Airline of the Year” at the Skytrax World Airline Awards High cost for overweight luggage Expansion into the business class market Natural disasters and poor weather conditions Offers Customer Bill of Rights for compensation and service High cost of expansion when flight costs are not raised Developing in-flight technology Strict and expensive government regulations Amenities: Most legroom in coach class, complimentary snacks/beverages, first bag free, leather seats, free TV service and satellite radio Strong customer service at low price leads to increasing costs to company Consistently adding available destinations Highly dependent on New York market Routine monthly discounts on specific destinations Key operations in expensive cities Low variety of aircrafts in fleet, reducing maintenance costs High maintenance costs on Embraer 190s Loyalty card program through American Express Only 5.1% mkt. share ($5.4 bil in 2013) Automatic check-in Limited destinations in Midwest No overbooked flights Current return on equity has decreased Programs for kid-friendly flights New Mint first-class flight options Strong social media presence Full travel and vacations packages In-flight pets program (JetPaws) 31 commercial partnerships Intense domestic and global competition JETBLUE MARKETING PLAN Appendix C—Former and Suggested JetBlue Advertisements (Mullen, 2013, September 13). 20 JETBLUE MARKETING PLAN Appendix D—Airline Survey Results 21 JETBLUE MARKETING PLAN Appendix E 22 JETBLUE MARKETING PLAN 23 References Advertising Age. (2013, December 30). Marketing fact pack 2014. Advertising Age. Retrieved from http://gaia.adage.com/images/bin/pdf/MFPweb_spreadsv2.pdf Blue Line Media. (2014). Airport advertising in 100 cities - Airport ads company. Retrieved from http://www.bluelinemedia.com/airport-advertising#rates Caba, J. (2013, October 1). JetBlue launches 'Blue Horizons for Autism': Program aims to make flying easier for families with autistic children. Medical Daily. Retrieved from http://www.medicaldaily.com/jetblue-launches-blue-horizons-autism-program-aimsmake-flying-easier-families-autistic-children Carey, S. (2014, May 12). JetBlue CEO in hot seat as airline lags rivals: Creeping costs, lackluster stock put new pressure on former upstart. Wall Street Journal. Retrieved from http://ezproxy.simmons.edu:2048/login?url=http://search.proquest.com/docview/1523718 689?accountid=13870 Carter, B. (2014, February 19). Why every business should spend at least $1 per day on Facebook ads. The Moz Blog. Retrieved from http://moz.com/blog/1-dollar-per-day-onfacebook-ads DeBord, M. (2014, November 19). JetBlue is going to destroy what makes JetBlue great. Business Insider. Retrieved from http://www.businessinsider.com/jetblue-challenges2014-11 Entrepreneur Magazine. (Oct. 2013). Entrepreneur Magazine media kit 2014. Retrieved from http://gaia.adage.com/images/bin/pdf/MFPweb_spreadsv2.pdf Geier, B. (2014, October 23). Airlines celebrate lower fuel costs. Fortune.com. Retrieved from JETBLUE MARKETING PLAN 24 http://fortune.com/2014/10/23/airlines-celebrate-lower-fuel-costs/ Gowrisankaran, G. (2002). Competition and regulation in the airline industry. Retrieved from http://www.frbsf.org/economic-research/publications/economicletter/2002/january/competition-and-regulation-in-the-airline-industry/ Hoover’s Inc. (2014). JetBlue Airways Corporation competition. Retrieved from http://www.hoovers.com/companyinformation/cs/competition.Jetblue_Airways_Corporation.1ea9eea092ac3c68.html Jacobs, K. (2013, March 26). Can JetBlue continue to stand out?. FOX Business. Retrieved from http://www.foxbusiness.com/news/2013/03/26/analysis-jetblue-looks-to-stand-out-inindustry-middle-seat/ J.D. Power and Associates, McGraw Hill Financial. (2014, May 14). Passengers tolerate higher costs and fees of traveling as airline satisfaction continues to improve, but still trails other industries. Retrieved from http://www.jdpower.com/press-releases/2014-north-americaairline-satisfaction-study#sthash.9qBjL0Nh.dpuf JetBlue. (2014, January 29). JetBlue announces 2013 annual profit. JetBlue.com. Retrieved from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-newsArticle&ID=1894614 JetBlue. (2014, August 5). JetBlue's TrueBlue loyalty program earns top honors in U.S. News & World Report's Airline Rewards Rankings. Retrieved from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&ID=1955642&highlight= JetBlue Airways. (2014). Air Transport World, 51(2), 36. Retrieved from http://ezproxy.simmons.edu:2048/login?url=https://search.ebscohost.com/login.aspx?dire ct=true&db=bth&AN=94308320&site=eds-live&scope=site JETBLUE MARKETING PLAN 25 JetBlue Airways Corporation. (2013a). 2013 Annual Report. Retrieved from http://phx.corporateir.net/External.File?item=UGFyZW50SUQ9NTM5MjEyfENoaWxkSUQ9MjI4NzY4fFR 5cGU9MQ==&t=1 JetBlue Airways Corporation. (2013b). Corporate Philanthropy Report, 28(3), 11. Jones, C. (2014, June). Egalitarian JetBlue tries out first class. USA Today. Retrieved from http://usatoday30.usatoday.com/MONEY/usaedition/2014-06-12-JetBlue-set-to-debutits-first-premium-cabinUSABrd_ST_U.htm MarketLine. (2014). Airlines Industry Profile: United States. Airlines Industry Profile: United States, 1-37. MarketLine. (2013). JetBlue Airways Corporation SWOT Analysis, 1-9. Marketwired. (2014). JetBlue's TrueBlue loyalty program earns top honors in U.S. News & World Report's airline rewards rankings. Retrieved from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&ID=1955642&highlight= Marketwired. (2014, November 3). JetBlue takes its mission to the skies with Fly-It-Forward. Retrieved from http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&ID=1984560 Maxon, T. (2014, November 19). With JetBlue’s defection, Southwest Airlines flying solo on bag fees. Dallas News. Retrieved from http://aviationblog.dallasnews.com/2014/11/withjetblues-defection-southwest-airlines-is-the-only-big-carrier-not-charging-for-first-andsecond-bags.html/ McCartney, S. (2013, Jun 05). For ideal airline competition, look a mile high. Wall Street JETBLUE MARKETING PLAN 26 Journal. Retrieved from http://ezproxy.simmons.edu:2048/login?url=http://search.proquest.com/docview/1364888 651?accountid=13870 Mullen. (2013, September 2013). Air on the side of humanity. Retrieved from http://www.mullen.com/air-on-the-side-of-humanity/ Office of the Assistant Secretary for Research and Technology. (2014a). TranStats: All carriers—all airports. United States Department of Transportation. Retrieved from http://www.transtats.bts.gov/Data_Elements.aspx?Data=1 Office of the Assistant Secretary for Research and Technology. (2014b). JetBlue Airways (B6). United States Department of Transportation. Retrieved from http://www.transtats.bts.gov/carriers.asp?pn=1 Skytrax. (2014) Bangkok Airways is named the World's Best Regional Airline for 2014. Retrieved from http://www.worldairlineawards.com/Awards_2014/regional2014.htm Teach, E. (2014). Gaining altitude: stellar customer service and smart financial management have propelled JetBlue to new heights. CFO, The Magazine for Senior Financial Executives, (1). 26. United States Securities and Exchange Commission. (2013) Form 10-K. Publication number a201310-k. Washington, DC. Vistaprint. (2014). Brochures. Retrieved from http://www.vistaprint.com/custom-brochures.aspx