INTERNAL BRAND COMMUNICATION

Durian, Inc. Syndicate

La Ode Arief Akbar - Ryan Koesuma - Wahyu Kumoro 
Internal Brand Communication
Lesson Learned / Key Success Factors

• Consistent message (brand) communication (internally)

• Develop both employee's knowledge and motivation
• Continuous feedback from customers and employees
• Focus on customers by creating fun experience
• Employees satisfaction & low turnover
About Southwest Airlines
 
Company Profile

• Founded in 1967, by Rollin King and Herb Kelleher

• High-frequency, low-fare, point-to-point airline
• First flight at June 18, 1971
• Connecting Dallas, Houston and San Antonio

General Information:
• Company Name: Southwest Airlines Co. 
• Company is traded on the NY Stock Exchange trade market (NYSE) with symbol LUV
• Corporate Headquarters are located at the physical address: 2702 Love Field Drive
Dallas, Texas 75235.
Company History
1973: First profitable year

1975: Listed in NYSE as LUV

1979: Served New Orleans

1988: Southwest wins the first Triple Crown: 

            Best On Time Record 
            Best Baggage Handling 
            Fewest Customer Complaints

1994: Acquired Morris Air

1995: Ticket-less Travel available system wide

1996: Launched website www.southwest.com

Southwest Target Customer

• Short-distance business travelers and commuters

• Students
• Travelers tired of the bigger airlines
• No-hassle, no-nonsense air travelers
Southwest Value Proposition
Southwest: Key People

Herb Kelleher
Co-Founder, CEO (1967-2007),
Chairman Emeritus
Southwest: Key People

Gary C. Kelly Colleen Barrett

Current Chairman, President Emerita &
President & CEO Corporate Secretary
Internal Branding
 
Employee Branding Process
Organization Mission
The mission of Southwest Airlines is dedication to the highest
quality of Customer Service delivered with a sense of warmth,
friendliness, individual pride, and Company Spirit 

To our employees:
We are committed to provide our Employees a stable work
environment with equal opportunity for learning and personal
growth. Creativity and innovation are encouraged for improving
the effectiveness of Southwest Airlines. Above all, Employees will
be provided the same concern, respect, and caring attitude within
the organization that they are expected to share externally with
every Southwest Customer
Southwest Cares: Vision for the Future
Our vision for our People is clear. We want to protect the job security, prosperity,
and well-being of all of our Employees. Our Focus is to bring the best People, with
Fun-LUVing attitudes, into the Southwest Airlines Family, at a competitive salary,
ensuring all have an equal opportunity - then give them the positive work environment,
training, and encouragement to succeed.

Organization Values
Southwest Airlines' number one priority is to ensure the personal Safety of each
Southwest Customer and Employee. Beyond this, we follow "The Golden Rule,"
which means we treat each other the way we want to be treated, which is why doing
the right thing by our Employees and Customers is so inherent to who we are. We
believe in Living the Southwest Way, which is to have a Warrior Spirit,
a Servant's Heart and a Fun-LUVing Attitude. Within each of these categories are
specific behaviors to help us be a Safe, profitable, and Fun place to work.
Living the Southwest Way

Source: www.southwest.com
Desired Brand Image

"To Provide safe, affordable, reliable, timely, courteous,

and efficient air transportation" 

- Customer Service Commitment Agreement, (Southwest Airlines, 2005) -

"Positively outrageous service" provided in the "Southwest

Spirit" 
- Desired brand image delivered by the employees -
Sources Modes / Messages / Brand Communication
Formal Informal

"People Department"
Recruitment Ad "Culture Committees"
Training & Development Interactions with Leaders
Internal
Monthly Company Newsletter: "Open Door" Policy
Luv Lines
Performance Evaluations

Customer Feedback/Letters
Advertising and PR to external
External WoM
also targeted internal
Employee's Psyche / Brand Commitment

• Southwest makes a great effort to ensure its message are based

on the company's mission and values

• Covenant relationship provide guidelines for employees regarding

both what is expected from them and what they can expect in
return.
Employee Brand Image
1. Develop employees' knowledge and understanding of the
desired brand image by sending frequent and consistent
messages.
2. Southwest motivates its employee to deliver the desired
brand image by ensuring their psychological contract are
upheld.

Psychological contract: practice of consistently basing all

organization messages on the company's mission, values,
and desired brand image.

Consistent messages to effective manage the employee brand

image is a key to Southwest's employee branding success
Outcome

• Effective Positioning
• Increased Employee Satisfaction and reduced staff turnover
• Higher levels of customer satisfaction and loyalty
• Favorable overall reputation
• Operational Effieciency
Feedback

• Internal Statistics & Metrics

• External Reports

• Luncheons with executives

• "Open Door" Policy

 Internal Brand Management

Source: Burmann et. al (2009)

Brand Focused HR
Brand Focused Leadership:
Respect to Employees / A Servant's Heart

Herb Kelleher with Mechanics

Brand Focused Leadership:
Respect to Employees / A Servant's Heart

Colleen Barrett Colleen Barrett

with Mechanics with Female Pilots
Brand Citizenship Behavior:
Willingness to help / Brand Enthusiasm / A Servant's Heart

BAGS FLY FREE

Brand Citizenship Behavior:
Willingness to help / Warrior Spirit

11 September 2001 -- other airlines, due to decreased passenger

traffic, laid-off personnel. Southwest people were willing to take pay cuts
to avoid lay-offs. As a result, no Southwest people were laid-off due to
the decreased passenger traffic
5Es of Internal Branding
 5Es of Internal Branding
Formal Internal Sources
Formal External Sources Training and development design
Advertising and public relations to reinforce the behaviors &
efforts are utilized as part of the values of the company
employee branding process to
reinforce the organization's
mission and values

Informal Internal Sources

Message flow between employees
ensure the exchange of brand
values being exercised
Informal External Sources
Clear communication is
essential to building and
maintaining employees' Informal Internal Sources
knowledge & understanding of Regular Corporate Events for
the desired brand image, and Employee's Celebration
motivating them to project that
image to others
 Educate

Source: www.southwest.com
Exchange
Engage
Excite
Exemplify
Brand Culture
 
Brand Culture
Brand Culture: Competencies

• Recruitment Ad
o finding employees to color outside the lines, or operate in
a manner that is a bit off-center

• Recruitment Process
o ensure their attitudes and personal values are consistent
with the organization's values and desired brand image,
and team players
Brand Culture: Competencies
A Servant's Heart / Fun-LUVing Attitude
Brand Culture: Competencies
Website Recruitment
Brand Culture: Behavior
Brand Culture: Behavior 
Fun-LUVing Attitude

Brand Ambassador: Herb Kelleher

Brand Culture: Behavior
Fun-LUVing Attitude

Brand Ambassador: Gary Kelly (CEO)

Brand Culture: Behavior
Fun-LUVing Attitude

Haunted Headquarters: Annual Corporate Halloween

Brand Ambassador: Gary Kelly (CEO)
Brand Culture: Behavior 
Fun-LUVing Attitude

Haunted Headquarters: Annual Corporate Halloween 07

Herb, Colleen & Garry
Brand Culture: Behavior 
Fun-LUVing Attitude

Haunted Headquarters: Annual Corporate Halloween 08

Herb, Colleen & Garry
Brand Culture: Behavior 
Fun-LUVing Attitude

Haunted Headquarters: Annual Corporate Halloween 09

Herb & Garry
Brand Culture: Behavior 
Knowledge Ambassador
Brand Culture: Organization

• "People Department" and "Culture Committees"

• "Open-door" Policy

• Interactions with Leaders 

• Informal hierarchy system

o Southwest possesses a relaxed and pleasing work
environment. Southwest management encourages and
accepts ideas to improve operations.
Brand Culture: Social Fabric

Bags Fly Free Celebrate Ski Club

Christmas Celebrate
Brand Equity
 
 Employe-based Brand Equity

Internal Ad &Cross-sectional
Consistency PR
Interactions with Leaders
Internal Newsletter

Increased
"Covenant"
Training & Development

Low
OpenTurnover
Door Policy

Peer-recruitment
Employee First

Source: King et al. (2009)

MeasurementRecruiting
Sales/Profit per Employee
(SPPE)
Turnover Rate

R=H/SxA SPPE = S or P/ E TR = D/E x 100

R= Recruiting SPPE= sales/profit per employee TR = Turnover Rate

H= New hires required S= Total sales D= Number of employee
A= Percentage who accept P= Total profits departures annually
S= Percentage of recruit selected E= Total number of employees E= Total number of employees

*No Data on Recruiting  $10,350M or $99M /

(35,499/34726) - 1
formula above 34,726
=
Resumes Filed= 90043 =
Accepted= 831
2.22%
Acceptance rate= 0.22% $298K or $2850
*2009 Data
*2009 Data *2009 Data
Outcome: Awards & Accolades

Source: Southwest Airlines, 2009. Annual Report

Brand Value

Source: BrandFinance
References
Burman, C., Riley, N., & Zeplin, S., 2009. Key determinants of internal brand management success:
An exploratory empirical analysis. Journal of Brand Management (2009) 16, 264 – 284 doi:
10.1057/bm.2008.6; published online 2 May 2008. 

Burman, C. & Zeplin, S., 2009. Building Brand Commitment: A behavioral approach to approach internal
brand management. Journal of Brand Management (2009) 16, 264 – 284 doi:
10.1057/bm.2008.6; published online 2 May 2008. 

King, Ceridwyn and Grace, Debra, 2009. Employee Based Brand Equity: A Third Perspective,
Services Marketing Quarterly, 30: 2, 122 — 147. 

Southwest Airlines, 2009. Annual Report. 

www.blogsouthwest.com

www.swamedia.com
  

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