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P R E S E N T

MM6016

BrandingandMarketing Communication

POSITIONING SOUTHWEST AIRLINES THROUGH EMPLOYEE BRANDING


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SOUTHWEST AIRLINES
2006 1995 1971
Established in Texas with 3 planes; routes between Dallas, Houston, and San Antonio Ticketless travel available system wide Southwests 31th consecutive year of profitability

1967
Formed by Herb Kelleher and Rollin King

the most successful airline in its industry


gained by effectively positioning the organization in customers minds

MARKET LEADERSHIP
POSITIONING Reliable Friendly Low price
Customer Intimacy
Product Leadership

DIFFERENTIATION symbol of freedom (Low fare)

Southwest Airlines

Operational Excellence

BRAND Southwest spirit i.e. Keeping the spirits alive (Positively outrageous service)

CBBE PYRAMID
High loyalty with limited customer base - High customer satisfaction - Customer experience

Satisfied Flight Affordable Safe Reliable Timely


Low Fare - Cheap - No frill service

Resonance

Warm Fun Friendly Positive outrageous service Unique Crew - Entertaining

Judgment Feelings Performance Imaginery

Salience High awareness - Friendly crew - Entertaining

EMPLOYEE BRANDING
the process by which employees internalize the desired brand image and are motivated to project the image to customers and other organizational constituents
Journal of Relationship Marketing article (Miles & Mangold, 2004)

EMPLOYEE BRANDING
effectively positioning the organization in customers minds became the most successful airline Colleen Barrett, President and Chief Operating Officer, attributed Southwests success to its employees.
motivates employees to internalize and deliver the desired brand image. principally rooted in the concept of employee branding

EMPLOYEE BRANDING PROCESS


enables the organization to consistently deliver its

desired brand image to customers, solidifying a clear position in the minds of


customers and employees alike. provides a competitive advantage that is achieved through employees, who have internalized the desired brand image and are motivated to project that image to customers and other organizational constituents
(Miles & Mangold, 2005)

THE PROCESS
Competitive advantage through employee

The model indicates the organizations mission and values are the cornerstones of the process: they state the organizations reason for being and give insight into the manner in which the mission is to be accomplished

THE PROCESS

CONTD.

An organizations mission and values provide a foundation by which the desired brand image is defined. Messages transmitted within the organization should clearly convey the organizations mission, values, and desired brand image.

communicate the behaviors and attitudes the organization


seems important and expects from employees.
the messages must be proactively designed, delivered frequently and consistently through all message channels

THE PROCESS

CONTD.

Effective and consistent transmittal of messages reflecting the organizations mission and values will accomplish two things
know, understand, and experience the desired brand image uphold the psychological contract that exists between the organization and the
individual employee

The psychological contract


central to the employee branding process, influences employees trust in
their employers and their motivation to serve customers and co-workers.

impacts their interactions with others, as well as their day-to-day productivity

WHAT HAS MADE SOUTHWEST AIRLINES SUCCESSFUL? WHAT DISTINGUISHES IT FROM COMPETITORS?

SUCCESS FACTORS
It keeps things simple and consistent which drives costs down, maximizes productive assets, and helps manage customer expectations
Service innovation Strong management & organizational culture A relatively happy workforce Hire the right people with the right attitude Training & development Leadership commitment Simple in-flight service One plane fits all Point-to-point flying No frills, no fees Aggressive fuel hedging

Strengths
Low cost structure relative to large carriers High number of established, high-frequency discount routes Operational efficiencies relative to large and low-cost carriers Modern, cost efficient flight network model Employees work very well at a team

Weakness
Decreasing differentiation relative to other low-cost-carriers (segmented seats, international flight) Aircraft type versus long, transcontinental routes Overcoming the automobile for short, consumer trips

Opportunities
Industrial growth after declining on 9/11 incident International flights

Threats
Long term fuel prices and hedge activities Rising labor costs New low-cost carriers, new regional jets Weather conditions Competitor Jetblue, Airtran-being copied

ANALYZE THEIR MARKETING PROGRAM AND IDENTIFY THEIR KEYS TO SUCCESS

MARKETING STRATEGY
Medium-to high-frequency business travelers Male/female professionals aged 24-55 years of age. Internet/technology savvy Price/cost conscious

Segment

Target

Prefer low-cost fares Frequent schedules Commuting short distances

Positioning

The only low-fare, short-haul, high-frequency, point-to-point carrier in America that is fun to fly

MARKETING PROGRAM
Product
Frequent, conviniently timed flights, point-to-point route systems Providing exellent customer service, baggage handling, easir ticketing, flexible flight schedules, easier check in and check out on the airport The first major airline to introduce a Ticketless Travel option, eliminating the need to print and process a paper ticket altogether

Price

Charge the lowest possible fare that still enables the airline to make a profit

Promotion

Insightfulunderstanding of customer benefits and how to translate those benefits into meaningful products and services Southwests marketing and advertising goal is to be very clear in their low-fare message but at the same time create and reinforce the companys nutty image Internal marketing program

Place

Travel bookings on Southwest Airlines are done primarily through direct marketing: by phone and the Internet Doesnt interline or offer joint fares with other airlines

MARKETING PROGRAM
Strengthened domestic footprint Focus on brand and service innovation
Business Potential

Shared customers letters Blogs Nuts about Southwest WOM Culture committees Internal & external ads

WINNING CULTURE (FUN,LOVE, TEAMWORK)

Customers

Team

Performance Culture Stocks options Profit sharing Compensation and incentives Open door policy Luv Lines

ADVERTISING
Mission Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and company spirit
Employee comes first, customer second Internal Ads Southwest is a symbol of a freedom External Ads At Southwest freedom begins with me

Allow people to travel to places they would Learn and grow through personal and professional development

Reflect brand image, deliver on the mission statement, and reward brand ambassadors

SERVQUAL
RELIABILITY ASSURANCE TANGIBLE EMPATHY RESPONSIVENESS

Consistently low fare Safe On time

High quality service

Using Boeing People Development (learn & grow) Leadership

Warmth Friendly Caring

Creativity and Innovation are encourage in giving service

Committed workforce & Improved brand image

INTERNAL MARKETING PROGRAM


Its culture is to serve people in a fun and innovative way, but at the same time, make profits The belief that satisfy its employees first and then they would satisfy its customers Trains their employees to put their own shoes on other colleagues of different departments Treat their employees as a family, instead a company

KEYS TO SUCCESS
Consistent brand communication (external & internally) Management/Employee
Employees are motivated and dedicated towards customer satisfaction Recruited friendly and fun matched criteria of an employee Team buildings employee training focused Pilots are paid by the flight

Customer Focused
Belief in giving first preference to their customers over everything else Low-cost carriers

Organizational Culture
strong organizational culture Values of fun, love and teamwork

WHAT IS LESSON LEARNED FROM SOUTHWEST AIRLINES?

LESSON LEARNED
Southwest Airlines successfully providing their service by

performing well-recruit employee


Employees come first with the company, with customers
a respected second Successful employee branding efforts also result in reduced

employee turnover, enhanced employee


satisfaction, higher levels of customer satisfaction and loyalty, and a favorable reputation among stakeholders