Southwest Airline Case Study

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1 Week 1 Assignment Southwest Airline Case Study Sumeet S. Shinde University of the Cumberlands BADM533 - M30 Marketing Management Dr. Delonia Minor-Cooley Assignment Due Date: Sunday, May 14, 11:59 p.m. EST.

2 Week 1 Assignment Southwest Airline Case Study 1. Describe the marketing exchange relationship between Southwest Airlines and its customers. Southwest Airlines’ marketing exchange relationship with its customers is of mutual interest, focusing on customer needs. It believes in continuous customer feedback and incorporating it into its marketing and improvement campaigns. It promises customers with responsive and complete service at the lowest cost with no hidden add-ons. It commits customers with the below values (Southwest Airlines 2023). Safety Commitment Citizenship Commitment Environmental Sustainability Plan Environmental Policy Supplier Diversity Program Southwest Contract of Carriage (English) Southwest Contract of Carriage (Spanish) Customer Service Plan (English) Customer Service Plan (Spanish) Southwest Tarmac Delay Contingency Plan (English) Southwest Tarmac Delay Contingency Plan (Spanish) 2. Describe the 5Cs of the marketing framework as they pertain to Southwest Airlines. The 5Cs pertaining to Southwest Airlines are:

3 Customer: Southwest Airlines prioritizes providing excellent customer service and is well known for it. The business emphasizes establishing long-term customer connections by offering inexpensive travel, clear pricing, and a hassle-free journey. The key focus lies in continuous customer feedback. Company: Southwest Airlines is a significant player in the airline business, with a focus on effectiveness and profitability and solid brand recognition. With its distinctive business model, the company prioritizes low prices, short flights, and a point-to-point network. (buildd, n.d.) Competitors: Other significant airlines like Delta, American, and United, as well as budget airlines like Spirit and Frontier, compete with Southwest Airlines. However, the firm distinguishes itself by strongly emphasizing customer service, affordable prices, many daily flights, and distinctive corporate culture. (Hughes. J. (n.d.)) Collaborators: Southwest Airlines strategies by providing a marketing mix. Travel agencies, hotel chains, and car rental firms are just a few of the partners Southwest Airlines has in its marketing ecosystem. To offer frequent flyer rewards programs, the business also collaborates with credit card firms. In addition, it also provides vacation packages and gift card products. (buildd, n.d.) Context: The airline industry is impacted by various economic, political, and social variables since it works in a highly regulated and competitive sector of the economy.

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4 Unionization, changing fuel prices, government rules, and changing and changing customer behavior are significant factors that contribute to the profitability and performance of this industry. Southwest is managing these factors by effectively taking care of their employees to their core values, continuous customer feedback and excellent marketing team (Bamber et al., 2013). 3. How does Southwest Airlines' approach to providing a total product experience capture the marketing framework elements of STP (segmentation, targeting, and positioning) and the 4Ps (product, price, place, and promotion)? Southwest Airlines approach to providing a total product experience captures the marketing framework elements as follows: STP 1- Segmentation: Southwest Airlines focuses on low-cost, frequent-flyer airline serving a variety of locations around the US. The airline concentrates its marketing efforts on middle-class families, proprietors of small businesses, people who travel locally, and the young generation. (marketing-school.org, 2020 and brandmasteracademy.com) 2- Targeting: It targets customers whose priorities are for the best value for their dollar than luxury or in-flight amenities. (marketing-school.org, 2020 and brandmasteracademy.com, n.d.) 3- Positioning: Southwest Airlines position itself in the low-cost, no-frills, and low- luxury category. It's unique select point is, its lower cost as compared to its competitors. (IvyPanda.com, 2021)

5 4Ps 1- Product: The product offered by Southwest Airlines is a complete travel experience that includes inexpensive fares, practical flight schedules, and excellent customer support. Additionally, it collaborates with multiple B2B businesses to benefit its customers. 2- Price: Southwest focuses on low cost and no hidden cost to add-ons. It can also maintain a low price because of its non-luxury-focused services and excellent network efficiency. 3- Place: Southwest Airlines places its marketing strategy based on two critical criteria: Channel design and channel management. The channel design of Southwest encompasses a direct distribution system through online channels and an indirect distribution system through its wholesalers logistic companies or some distribution agents it also sometimes incorporates hybrid strategies. (embapro.com, n.d.) 4- Promotion: Southwest uses modern available promotion platforms like TV, the Internet, and print media. It also has unique marketing campaigns to increase its customer base. (kasi, n.d. and Barbara, P. 2004)

6 References 1- Iacobucci, D (2021). Marketing Management 6 th Edition. Cengage. 2- Southwest Airlines. (2023). About Southwest ® . https://www.southwest.com/about- southwest/?int=FOOTER-ABOUT-US-ABOUT-US 3- buildd.co. (n.d.). Southwest Marketing Strategy: Low Fares, Big Impact. https://buildd.co/marketing/southwest-marketing-strategy 4- Hughes, J. (n.d.). Southwest Airlines Competitors Analysis. https://businesschronicler.com/competitors/southwest-airlines-competitors-analysis/ 5- Bamber et al. (2013). Up In The Air: How Airlines Can ImprovePerformance by Engaging Their Employees 6- Phelps, S. 2014. Southwest Airlines Understands The Heart Of Marketing Is Experience. https://www.forbes.com/sites/stanphelps/2014/09/14/southwest-airlines-understands-the- heart-of-marketing-is-experience/?sh=6f5a18a32bda 7- Ivypanda. 2021. Southwest Airlines Positioning Map Research Paper. https://ivypanda.com/essays/southwest-airlines-positioning-map/#:~:text=The%20overall %20positioning%20strategy%20that,not%20charge%20a%20high%20price . 8- Brandmasteracademy. n.d. Brand Case Study [Southwest Airlines]. https://brandmasteracademy.com/brand-case-study-southwest/ 9- marketing-schools. 2020. Targeted Marketing Explore the Strategy of Targeted Marketing. https://www.marketing-schools.org/types-of-marketing/targeted-marketing/ #section-0 10- Kasi. n.d. Southwest Airline Marketing Mix. https://marketingmixx.com/marketing-mix- southwest-airlines/

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7 11- Peterson, B. (2004). Blue Streak: Inside jetBlue, the Upstart that Rocked an Industry

Southwest Airline Case Study

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