Situation Analysis:

The airline industry is a competitive one. Since 2000, the U.S. airline industry has

diminished from ten major airlines to just four. There has been an ongoing trend in

recent years of airlines merging together. Most recently, American Airlines and U.S.

Airways announced they would be merging together in 2013, forming the largest airline

in the world. Southwest Airlines continues to be in the top four due to their low airfares,

international flights, their rewards program, and their dedication to their customers.

In order to keep their prices down, Southwest has targeted less crowded airports

near metropolitan areas. Not only does this allow for lower prices, but it also decreased

the turnaround time for their planes. Southwest has taken a stand for low cost plane

tickets and refuses to raise them, even when demand for air travel increases. This gives

the company a unique goal when it comes to their marketing objectives. Yes, they are

looking to increase revenue just like anyone else. However, they don’t have to force

loyal customers to pay more for the same service whenever there is a spike in demand.

Instead, Southwest makes its service more available and focuses on increasing the

number of customers they serve. This goes to show that they, as a company, really do

take their positioning goal of being the best low cost, short duration flight provider on the

market seriously.
SWOT Analysis:

Strengths:

- An efficient point-to-point airport network

- Fastest turnaround time

- Low operating cost per plane

- Only fly one type of aircraft, which lowers maintenance and training costs

dramatically

- Flights are usually less than 90 minutes

- No food served during flights

- No first class or assigned seating

- Company culture dedicated to customer service and saving money

Weaknesses:

- No alliance with other airlines for connecting flights

- Their internal booking service is high-cost, low-revenue

Opportunities​:

- Continued expansion to new states, new route options

- Technological advances

- Expand in-flight entertainment offerings such as WiFi

Threats:

- High fuel costs

- Environmentally conscious consumers

- Competing airlines adopting similar business models

Competitors:

Southwest’s most prominent competitors are Delta and American Airlines.

Because Southwest is a low-cost airline, its competition tends to provide better service

through the means of entertainment, comfort and on-flight services.

American Airlines is one of the biggest airlines in the U.S. They run their airline a

bit differently. Unlike Southwest, they service international flights further away than just

North America. Also unlike Southwest, they serve through hub-and-spoke routes, but

also offer premium service with choice of seating in business class, first class and

economy.

Delta Airlines is the second largest airline company, second to American. Delta

has a hard time keeping the same low prices that Southwest has been able to maintain.

They are preferred for their customer service on-board their aircrafts.

Southwest’s unique business structure of point-to-point travel has resulted in

higher levels of on-time arrivals than their competitors. This attracts a lot of the business

travelers who fly to different cities for only a couple of days at a time and don’t have any

desire of spending more time than needed in airport terminals. Their frequent

departures allows for more spontaneity and flexibility for their customers, which again

serves in the business travelers favor as they may need to catch a later flight due to an

impromptu business meeting or what have you.

They stopped serving food in order to save money. They don’t offer first class or

assigned seating, which is actually a very efficient strategy. By not having assigned
seats, flyers are forced to arrive early, resulting in more efficient boarding times and

quicker take-offs.

Target Audience:

Southwest’s current customers include young adults, retirees, business travelers

and younger families. Business travelers and budget travelers have always been their

absolute best customers, and Southwest has done a lot in order to cater to these target

markets. These current customers are on the lookout for fast and affordable travel, a

variety of destinations, convenience and comfort.

Potential customers include college-aged students, recent retirees, and newer

families. These specific markets look for convenience, an easy purchasing process, low

prices and package deals. They typically purchase flights special events, emergencies

or other special needs, or simply due to their new freedom and increase in vacation

time.

Demographics:

Ultimately, Southwest’s target market are business travelers ages 30 to 49

because they are generally willing to pay more and are frequent buyers. The company’s

secondary market would be budget travelers who are on the hunt for the cheapest flight

to their destination on the market. These travelers vary widely in their demographics.

Currently, Southwest’s customers consist of slightly more men than women. Most

customers are married. About half fall between the ages of 25 and 54, and have a

college degree. 44% are working professionals who make an average household

income of $100,000 each year.

Psychographics:

Business travelers are valuable to any airline because they are the most frequent

buyers, most loyal, and are willing to pay more than the average vacationer. The typical

business traveler is upper-level and c-level management.

Business travelers are early adopters of technology, and therefore, well

connected. They use technology for both work and play, and use mobile devices such

as tablets and smartphones significantly. 93% of them want gates and connection

information sent to their mobile phones. This market enjoys building relationships with

businesses they use often, such as hotels.

Budget travelers can vary, but ultimately, they are always looking for a good deal

and only ever book the cheapest flights.

Budget:

$215 million is the allotted budget for this media plan.

Reach:

The minimum reach is 80.

Frequency:

The minimum frequency is 4.

Geography:
 As of April 2019, Southwest serves 100 destinations in 41 states, Puerto Rico,

Mexico, Central America and the Caribbean. They have 15 focus cities and operate

over 4,000 flights each day.

Media objective:

To reach at least 80% of the target audience a minimum of four times a month.

Strategy:

QTR 1 | January through March

We will start the year off strong by purchasing plenty of television due to most people

staying indoors in order to stay warm. Business travelers will be coming straight home

from work, and more than likely turning on their live television or streaming service. We

have allocated most of our media buy to Net-TV sports in March due to the Superbowl.

QTR 2 | April through June

Now is the time to implement more magazine ads since people will be out and about

more often with the weather warming up. It is also the perfect time to kickstart our

outdoor billboard campaign as people will be more and more willing to get out of the

house and on the road to their next adventure.

QTR 3 | July through September

We will have a major social and digital push during these hot summer months as many

people are away, enjoying their vacations. It’s also crucial to continue buying outdoor ad

space as most people are going on roadtrips and quick getaways throughout the

summer. TV will be pushed in Prime, Late Fringe, and most importantly in Syndication

due to most new TV series releases taking place in the fall.

QTR 4 | October through December

To end the year, we’ll make one final TV push. We will increase our Primetime and Late

Fringe buys since new television series will be programmed during this quarter, as well

as Sports due to football season.

Must Have Media:

Social and digital are two must-haves year round as our target audience is

tech-savvy, and Southwest is already established as the “king of social media”

specifically in the airline industry. Early morning radio and/or television, as well as

evening commute radio are a great way to reach business travelers on a daily basis.

Generally, more traditional forms of advertising, such as television commercials, should

be used in order to reach a larger audience.

Don’t Use Media:

Newspaper ad buys wouldn’t make much sense unless they were solely digital.

Seems like a waste of money since most adults reach for their phone or laptop before

reaching for a hard-copy of a newspaper, especially young adults or tech-savvy

professionals.
Media Flight Plan: