Southwest Airlines Prepared for: Prepared by: Date: MKT 381 Sales Proposal Samantha Stanley & Emily Nadeau November 24, 2014 2 Table of Contents SELLER PROFILE …………………………………………………………………………………………………3 SPIN …………………..………………………………………………………………………………………………4 FAB ……………………………………………………………………………………………………………………5 FINANCIAL SPREADSHEET …………………………………………………………………………………7 BUYER SCENARIO ………………………………………………………………………………………………9 3 Seller Profile Southwest Airlines is pleased to present this proposal to you regarding the requested business travel packages. Samantha Stanley and Emily Nadeau have been part of the Southwest corporate sales team for eight years and are dedicated to helping businesses determine their needs in order to provide leading solutions for your travel-related goals. With an extensive network, Southwest is able to serve more than 90 destinations throughout the United States, Mexico, and the Caribbean. Southwest Airlines’ number one priority is to ensure the personal safety of each customer. The “Golden Rule” of the company is that we treat each other the way that we want to be treated. Living the Southwest way means showing a warrior spirit, a servant’s heart, and a fun-LUVing attitude. The corporate sales team can help you manage your company meeting through SWABIZ, Southwest’s free online corporate booking tool. Whether employees are traveling together or traveling from various locations, SWABIZ allows for an easy online booking process and access to our full inventory of fares. With no change fees, no bag fees, and free reporting capabilities, we’ll make your job easier and help you save money along the way. Managing business travel can be time-consuming. Upgrading to business select allows you to have access to our most awarding fare all at a discounted rate. Southwest is dedicated to providing the most reliable, affordable, and fun way to travel for business. 4 SPIN Situation o The University of South Alabama needs flight services for their employees. Problem o To find a travel package for the university that is affordable. Implication o Southwest has reliable service. o No extra baggage fee. Need o Flight services for the company. o Great rates and flight times. o Available at many airports. SPIN QUESTIONS Situation: What flight service do you use now? Are there any areas of opportunity for improvement with your current service? How often do you use this service? Problem: Are you satisfied with your current airline service? How easily assessable is your current airline service? What reliability problems does your current airline service have now? Implication: What would happen if your current service were not reliable? What is the result of extra fees associated with your current airline provider? What effect does ease of access have on your current service? Need Payoff: How much time could you save if you used an airline service that was easily accessible? How important would it be for South Alabama Athletics to have priority boarding? How do you feel about having a reliable airline? 5 FAB – Features, Advantages, Benefits Features o In its 44th year of service, Dallas-based Southwest Airlines (NYSE: LUV) continues to differentiate itself from other carriers with exemplary Customer Service delivered by more than 45,000 Employees to more than 100 million Customers annually. Based on the most recent data available from the U.S. Department of Transportation, Southwest is the nation’s largest carrier in terms of originating domestic passengers boarded. The airline also operates the largest fleet of Boeing aircraft in the world to serve 93 destinations in 40 states, the District of Columbia, the Commonwealth of Puerto Rico, and five near-international countries via wholly owned subsidiary, AirTran Airways. o From its first flights on June 18, 1971, Southwest Airlines launched an era of unprecedented affordability in air travel described by the U.S. Department of Transportation as "The Southwest Effect," a lowering of fares and increase in passenger traffic wherever the carrier serves. o With Southwest Airlines, Bags Fly Free ® (first and second checked pieces of luggage, size and weight limits apply), and there are no change fees (fare difference may apply) when you need to change your flight. o Southwest's fleet offers leather seating and the comfort of full-size cabins, a majority of which are equipped with satellite-based WiFi connectivity over the United States, which enables live and video-ondemand TV currently FREE compliments of DISH, and a new, sustainable cabin interior. o Southwest's fleet offers leather seating and the comfort of full-size cabins, a majority of which are equipped with satellite-based WiFi connectivity over the United States, which enables live and video-ondemand TV currently FREE compliments of DISH, and a new, sustainable cabin interior. o Southwest is one of the most honored airlines in the world, known for its triple bottom line approach that takes into account the carrier's performance and productivity, the importance of its People and the communities it serves, and its commitment to efficiency and the planet. 6 Advantages o Southwest’s average aircraft trip length is 723 miles with an average duration of one hour and 59 minutes. o Southwest aircraft fly an average of nearly six flights or about 11 hours and 18 minutes per day. o Southwest Airlines operates more than 3,600 flights a day. o With an extensive network, we serve more than 90 destinations throughout the United States, Mexico, and the Caribbean. Combined, we operate more than 3,800 flights a day including more than 500 roundtrip markets. o Whether you’re planning your next trip or checking in for your flight, the Southwest Airlines app makes traveling even more convenient. On your smartphone, you can check your flight status, change reservations, add EarlyBird Check-In® to an existing reservation, access your Rapid Rewards® account, and much more. Benefits o Nearly 46,000 People work to deliver exemplary Customer Service throughout the Southwest and AirTran systems. o In second quarter 2014, Southwest’s average passenger airfare was $163.00 one way, and the average passenger trip length was approximately 981 miles. o People are able to find flights easier. o People are able to save money. 7 FINANCIAL SPREADSHEET By using Southwest Airlines the University of South Alabama’s Athletics department will be able to save millions of dollars during the year. With our free first and second bag service the department will save thousands of dollars each time they fly. We understand that athletes have a lot of luggage to carry and we want to ensure that their belongs arrive safely and cheaply. Specific flight price cannot be given depending on how many are flying and where they are flying to but Southwest will offer the best deal they can. Southwest Airlines will not charge for non-refundable airline tickets nor will Southwest charge for select seating. Southwest’s goal is to make sure that the University of South Alabama’s Athletics arrive safely and on time. Type of Airline Baggage Fees $25 First bag Delta $35 Second bag $125 Third bag Southwest Ticketing Fees $200+ Nonrefundable tickets $50 same day change fee $200 4-10 bags/each FREE First bag FREE Nonrefundable FREE Second tickets. bag $50 3-9 bags/ NO change each fees Frequent Flyer Fees $9-$59 Seat selection fees $150 date/itinerary change FREE seat selection FREE date/itinerary change: any fare difference will apply SOURCE: Hobica, George. "Airline Fee Chart." - Blog. 14 Mar. 2014. Web. 23 Nov. 2014. <http://www.airfarewatchdog.com/blog/3801087/airline-fee-chart/>. Other Fees $10 Priority Boarding per flight $9-$180 for “Comfort” Seating $12.50 Priority Boarding per flight Seat Selection Fee: None 8 Buyer Scenario Sales Presentation Date: 12/4/14 Class time: T, TR 11:00 Student Seller: Samantha Stanley AND Emily Nadeau Seller’s product: Southwest Airlines Travel services Student Buyer: TBA Buyer’s Company: South Alabama Athletics Department Competitors/existing product and price mix: Delta Airlines Situation question answers: 1. Delta 2. Well, the customer service on flights good improve with Delta 3. We use this service quite regularly, the many different sports teams that we have here all use this service at some point each semester. Problem question answers: 1. For the most part yes, although some aspects could improve 2. Very assessable through the Mobile Regional Airport 3. Flights aren’t always reliable due to delays Implication question answers: 1. It can be a serious issue. These players need to be on time for games and be able to represent the school well 2. Extra fees would be costly for us because of the frequency of flights between all the teams 3. Well, a great effect because the players time is limited due to their hectic schedules with class, homework, practices, and traveling to games. Need payoff question answers: 9 1. It would probably save hours on end with easily accessible services. 2. Priority boarding would be excellent for the university because of the amount of travelers that we have 3. Reliability is so important for us. It ensures that we can trust our airline to get us where we need when they say they will. Possible objections (reasons not to buy, not open-ended questions): 1. I’m not familiar with Southwest Airlines 2. Now may not be a good time for us 3. I don’t see any reason to change airlines. 4. What makes you different? 5. We are satisfied with current airline 6. It may be too much risk to switch