Marketing Strategies (MKT500)
Industry/Company Analysis
Presentation
Southwest Airlines
Cevdet KIZIL
Gokhan BAYKAL
New Product/Service Development

Expand service to Denver, Miami and Minneapolis.

Short-haul, frequency, point-to-point and low fare service
convenience.

Similar in terms of daily departures and number of passengers
(Phoenix, Las Vegas, Houston).

These three cities are currently not served by Southwest
Airlines.
Target Market

Moderate income

No frill value minded

No lower uppers, no upper uppers

High raters of low price (consumer evaluation grid)

Mainly consumer travelers rather than business
travelers
Marketing objective

Increasing sales 3% in the first year up to 5%
in the second year

Entering Denver, Miami and Minneapolis
cities.
Pricing Strategy

Penetration Pricing Strategy

Higher volume with lower price.

Best against price sensitive customers and
existing & potential competitors

No premium pricing.
Distribution Strategy

Direct Distribution

No Intermediaries (e.g.
travel agencies)

Total quality control and
lower costs

Website/Toll-Free Call
Center
Marketing Budget

Objective and Task Method

On the basis of dollar amounts.
Advertising and Promotion






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Pull selling strategy
Newspaper ads
TV/radio
Bulletin boards
Websites
Newly painted planes
Public Relations Events
E-mail advertising
Monitoring and Control




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Checking financials
Monitoring market share in new markets.
Analyze departure and arrival stats.
Review safety stats
Track website usage
Control e-mail list subscriptions
Online and face-to-face surveys
Controlling plan as a whole annually