mba fp6012 karbowskiferdinand assessment5 1

8/18/2019 MBA FP6012 KarbowskiFerdinand Assessment5 1

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ASSESSMENT5-1 INTEGRATED GLOBAL MARKETING CASE STUDY

Integrated Global Maret!ng Ca"e St#d$

So#t%&e"t A!rl!ne" ' Ta!ng O(er t%e S!e" on !t" O&n Ter)"

*erd!nand +,R Karbo&"! ,r

Ca.ella Un!(er"!t$

A.r!l /0 213

Abstract

T%e a!rl!ne !nd#"tr$ !" notor!o#"l$ 4$4l!4al and (olat!le T%ro#g% !t all0 So#t%&e"t A!rl!ne" %a"

na(!gated !t" &a$ t%ro#g% t%e"e 4%allenge" relat!(el$ #n"4at%ed and t%ro#g% a d!"t!n4t!(e

4o)b!nat!on o6 (!"!onar$ leader"%!.0 b#"!ne"" a4#)en0 o.erat!onal .er6or)an4e e74ellen4e and

e66e4t!(e !ntegrated )aret!ng and 4o))#n!4at!on"0 !t 4ont!n#e" to lead t%e &a$ !n t%e !nd#"tr$

T%e a!rl!ne de.lo$" t%e &!del$ no&n 4la""!4 )aret!ng )!7 breado&n o6 t%e 86o#r 9:"; a" a

6o#ndat!on o6 t%e!r !ntegrated )aret!ng 4o))#n!4at!on" and t%e$ 6o4#" on t%e *#nda)ental

Ele)ent" o6 9a""enger Lo$alt$ *e& a!rl!ne" %a(e been able to "#r.a"" t%e!r #nden!able

)aret!ng !).a4t and leader"%!. .o"!t!on t%at t%e$ %a(e 4e)ented t%ro#g% "#"ta!ned0 4reat!(e

and "#44e""6#l )aret!ng 4o))#n!4at!on"



ASSESSMENT5-1 INTEGRATED GLOBAL MARKETING CASE STUDY 1

Introduction

T%e a!rl!ne !nd#"tr$ !" notor!o#" 6or be!ng (olat!le and 4$4l!4al0 re"#lt!ng !n #n.red!4table

l!<#!d!t$ and earn!ng" T%e .r!n4!.al rea"on" t%at a66e4t an a!rl!ne:" .er6or)an4e (ar$ 6ro)=

.a""enger tra(el de)and and "ea"onal 6l#4t#at!on" !n tra66!4> general e4ono)!4 4ond!t!on"

+!n6lat!on ? re4e""!on0 go(ern)ent reg#lat!on"0 !n4rea"ed 4o).et!t!on 6ro) ot%er a!rl!ne" or

alternate )ode" o6 tran".ortat!on> nat!onal and !nternat!onal e(ent"> 6#el .r!4e (ar!at!on"> labor

relat!on" &!t% !t" e).lo$ee"0 and t%e a!rl!ne:" .#bl!4 .er4e.t!on and re.#tat!on ' @#"t to na)e a

6e& T%ro#g% !t all0 So#t%&e"t A!rl!ne" %a" na(!gated !t" &a$ t%ro#g% t%e"e 4%allenge" relat!(el$

#n"4at%ed and t%ro#g% a d!"t!n4t!(e 4o)b!nat!on o6 (!"!onar$ leader"%!.0 b#"!ne"" a4#)en0

o.erat!onal .er6or)an4e e74ellen4e and e66e4t!(e !ntegrated )aret!ng and 4o))#n!4at!on"0 !t

4ont!n#e" to lead t%e &a$ !n t%e !nd#"tr$

%en "o)eone )ent!on" So#t%&e"t A!rl!ne"0 t%ere are )an$ t%!ng" t%at 4o)e to )!nd=

t%e a!rl!ne:" 4%ar!")at!4 6o#nder and 6or)er CEO0 erb Kelle%er> t%e 6a4t t%at t%e a!rl!ne !" one

o6 t%e 6e& t%at doe" not 4%arge e7tra 6ee" 6or #. to t&o 4%e4ed bag"> t%e la4 o6 4%arg!ng an

e7tra 6ee 6or 4%ang!ng date" on a t!4et> l!)!ted re6re"%)ent" and not "er(!ng )eal" on .lane"> an

ab"ent ded!4ated b#"!ne"" 4la""> a 6l!g%t 4re& t%at .redo)!nantl$ 4on(e$" a .ro6e""!onal $et 6#n

at)o".%ere a" .art o6 t%e 6l!g%t e7.er!en4e> and a 8)a(er!4; att!t#de t%at .r!de" t%e)"el(e" !n

not do!ng )an$ o6 t%e t%!ng" t%at t%e "o-4alled lega4$ a!rl!ne" do ' and t%e$ )ean t%at !n a good

&a$ All o6 t%!" !" 6#el to t%e )aret!ng )a4%!ne t%at So#t%&e"t A!rl!ne" %a" b#!lt and #"e" a"

.art o6 !t" 4o).re%en"!(e )aret!ng "trateg$ T%e a!rl!ne !ntegrate" )an$ o6 t%e"e ele)ent" !n !t"

)aret!ng 4o))#n!4at!on" tool" and %!g%l!g%t" t%e) t%ro#g% a (ar!et$ o6 .ro)ot!onal a4t!(!t!e"

E(er$ da$0 t%e$ "tr!(e to engage &!t% t%e!r 4#"to)er"0 b#t 4annot do "o &!t%o#t 6!r"t e66e4t!(el$




engag!ng &!t% t%e!r e).lo$ee" !n a .o"!t!(e )anner "o t%at t%e$ 4an .a"" t%e!r 4on6!dent

ent%#"!a") along to t%e!r .a""enger"

Company Overview

Created !n 13/ a" A!r So#t%&e"t Co0 &%at !" no& no&n a" So#t%&e"t A!rl!ne"

%ead<#artered !n Dalla"0 Te7a" .!oneered and de6!ned &%at !" 4o))onl$ no&n a" t%e Lo& Co"t

Carr!er +LCC b#"!ne"" )odel 6or t%e a!rl!ne !nd#"tr$ *o#nded b$ erb Kelle%er0 Roll!n K!ng

and ,o%n 9arer &!t% "er(!4e bet&een t%e Te7a" 4!t!e" o6 Dalla"0 o#"ton and San Anton!o %a"

toda$ be4o)e t%e nat!on" large"t 4arr!er !n ter)" o6 or!g!nat!ng do)e"t!4 .a""enger" boarded

"er(!ng / de"t!nat!on" a4ro"" t%e Un!ted State" and "e(en add!t!onal 4o#ntr!e" In 21 !t

re.orted a net !n4o)e o6 FUSD 11 b!ll!on0 e).lo$" )ore t%an 0222 e).lo$ee"0 o.erate" t%e

large"t Boe!ng // 6leet !n t%e &orld and boa"t" 4on"e4#t!(e $ear" o6 ann#al .ro6!tab!l!t$ ' a

re4ord #n)at4%ed !n t%e US a!rl!ne !nd#"tr$ +Cor.orate *a4t S%eet0 2130 .ara 8A"!de 6ro)

!t" 6!r"t t&o $ear" !n e7!"ten4e0 So#t%&e"t %a" ne(er lo"t )one$ !n a 6!"4al $ear; +G&$nne0 210

. 1H O(er t%e 4o#r"e o6 )an$ $ear"0 So#t%&e"t %a" e"tabl!"%ed a brand t%at !" no&n 6or lo&

6are" and great "er(!4e

So#t%&e"t A!rl!ne": (!"!on !" to be4o)e t%e orld:" Mo"t Lo(ed0 Mo"t *lo&n0 and Mo"t

9ro6!table A!rl!ne +So#t%&e"t Ann#al Re.ort0 210 . T%e )anner !n &%!4% t%e$ "et o#t to

e7e4#te t%at (!"!on !" b$ o66er!ng lo& 6are" &!t% great "er(!4e T%e .#r.o"e be%!nd t%!" "trateg$ !"

"!).le ' gett!ng t%e ba"!4" r!g%t It %a" been a e$ !ngred!ent !n t%e "#44e"" o6 So#t%&e"t A!rl!ne"

' t%at !"0 8t%e 6#nda)ental" o6 t%e a!rl!ne b#"!ne"" 4ont!n#e to !n4l#de gett!ng .a""enger" 6ro) A

to B "a6el$0 on t!)e0 &!t% t%e!r l#ggage0 &!t% rea"onable "er(!4e and at a rea"onable .r!4e;

+Tane@a0 2130 . 111




So#t%&e"t A!rl!ne" %a" long #nder"tood t%at t%e!r .a""enger" are t%e one" &%o #lt!)atel$

deter)!ne t%e o.erat!ng nat#re o6 t%e!r b#"!ne"" )odel T%e a!rl!ne de.lo$" t%e &!del$ no&n

4la""!4 )aret!ng )!7 breado&n o6 t%e 86o#r 9:";= .rod#4t0 .r!4e0 .la4e and .ro)ot!on a" .art

o6 t%e 6o#ndat!on o6 So#t%&e"t A!rl!ne": !ntegrated )aret!ng 4o))#n!4at!on" S!).l$ "tated0

!ntegrated )aret!ng 4o))#n!4at!on" !" reall$ @#"t a )anage)ent .ro4e"" t%at 6a4!l!tate" a

d!"4#""!on bet&een t%e a!rl!ne and !t" .a""enger" 8Integrated )aret!ng a4t!on"0 &%en a..l!ed to

)eet!ng t%e need" o6 4on"#)er" and b#$er"0 4an generate .ro6!t" and ot%er 4or.orate re"#lt"

t%ro#g% 4#"to)er "at!"6a4t!on; +are$0 2210 . So#t%&e"t A!rl!ne" re!n6or4e" t%!" )aret!ng

)e""age !n a (ar!et$ o6 &a$" 6ro)= t%e trad!ng "$)bol on t%e Ne& Yor Sto4 E74%ange +NYSE=

LU> to %a(!ng a %eart e)blaJoned on t%e bell$ o6 ea4% one o6 !t" a!r4ra6t> to t%e na)e o6 !t"

%o)e a!r.ort ' Lo(e *!eld> to 4on"!"tentl$ be!ng na)ed a" one o6 t%e be"t 4o).an!e" to &or 6or

*e& 4o).an!e" %a(e been able to "#r.a"" t%e a!rl!ne:" #nden!able )aret!ng 4o))#n!4at!on"

"trateg!4 !).a4t !n ter)" o6 %o& t%e$ !ntegrate t%e!r tool" and .ro)ot!onal a4t!(!t!e" !n t%e

4onte7t o6 ad(ert!"!ng0 "ale" .ro)ot!on0 and .#bl!4 relat!on"

Current Situation

So#t%&e"t A!rl!ne" %a" arg#abl$ been one o6 t%e b!gge"t "#44e"" "tor!e" !n A)er!4a

G!(en !t" LCC )odel0 !t %a" been able to ga!n )aret "%are 6ro) )an$ o6 !t" 4o).et!tor" !n t%e

)aret" t%e$ "er(e T%e )odel )ean" t%at !t %a" been able to a4%!e(e lo& 6are" t%at attra4t t%e

6l$!ng .#bl!4 b$ el!)!nat!ng #nne4e""ar$ 4o"t" !n all area" o6 t%e organ!Jat!on In add!t!on0 t%an"

to t%e 4on"!"tent and "tead6a"t leader"%!. at t%e a!rl!ne0 e).lo$ee" %a(e e7.er!en4ed a great &or

4#lt#re at So#t%&e"t A!rl!ne" So0 %o& doe" t%!" tran"late !nto good )aret!ng

*!r"t0 let #" "#))ar!Je "o)e o6 t%e 6eat#re" and bene6!t" o6 t%e LCC )odel t%at %a(e

4ontr!b#ted to t%e So#t%&e"t A!rl!ne": "#44e""=




Features Benefts

Exclusively operates only the Boeing737 series aircraft

Facilitates standardized training andexibility in terms of personnel andsupporting equipment. ecreasesturnaround time for aircraft bet!eenights.

"nly o#ers economy class$ leather%cladseats !ith identical seat !idth and pitchin all aircraft and many of !hich areequipped !ith satellite%based &i%Ficonnectivity and a ne!$ eco%friendlycabin interior. '(erospace and defensecompanies$ )*+3$ para +,-

(llo!s for a consistent passengertreatment experience. ecreasesturnaround time for aircraft bet!eenights.

"pen seating he airline does not have to allocateseats and studies have demonstratedfaster boarding and disembar/ing times0 thus decreasing turnaround time foraircraft bet!een ights.

1o meals 0 only refreshments and lightsnac/s

he airline can reduce galley space$potentially increase the number of ro!son the aircraft$ and provide a focusedpassenger treatment experience notrelated to the quality of meals$ etc.

2rimarily use lo! trac secondaryairports

4sually provides the airline betteroperating costs in terms of leaseagreements 5 landing fees$ etc. !hichare then passed on to the passenger.

2rimarily targets short%haul point%to%point routes

he airline can focus on getting thepassengers to the most popular

destinations via the most direct route'as opposed to going through a hub-and ma/ing the 6should drive versusy8 decision easier for the passenger.

Employees multi%tas/ !hereappropriate

nstead of using the 6legacy airlinemodel8$ the same chec/%in agent$ mayvery !ell be the gate agent 0 thuspotentially reducing the airline9s!or/force and increasing thepassenger9s familiarity !ith the sta#.

2rimarily uses its o!n sales anddistribution net!or/ for tic/eting

:ince the airline does not subscribe tothe ma;or airline aggregators 'i.e.

<aya/$ "rbitz$ ravelocity-$ they do notpay commissions and are able to o#ercustomers the lo!est possible fares.

Table 1 - Features and Benefits of SWA LCC Model

Anal$"t" &%o %a(e "t#d!ed t%e So#t%&e"t A!rl!ne" )odel %a(e 4%ara4ter!Jed !t a" t%e

*#nda)ental Ele)ent" o6 9a""enger Lo$alt$ and !" de.!4ted !n t%e 6!g#re belo&=




Figure 1 - Fundamental Elements of Passenger Loyalty

A" "tated !n So#t%&e"t A!rl!ne": (!"!on0 t%e 6!r"t e""ent!al ele)ent !n lo$alt$ !" t%e need

6or 6o4#" on gett!ng t%e ba"!4" r!g%t 6!r"t ' 4onne4t 4#"to)er" to &%at:" !).ortant !n t%e!r l!(e"

&!t% 6r!endl$0 rel!able0 and lo&-4o"t a!r tra(el T%!" )ean" 4on4entrat!ng on t%e 4ore ele)ent" o6

an a!rl!ne:" o66er!ng "#4% a"= on-t!)e .er6or)an4e> e66!4!ent baggage %andl!ng> and !n t%e 4a"e o6

So#t%&e"t A!rl!ne" &%!4% onl$ o66er" e4ono)$ 4la"" "eat!ng ' t%e a!rl!ne "eat !t"el6 In 2120

So#t%&e"t A!rl!ne" to..ed t%e agat a!rl!ne "#r(e$ "&ee.!ng "e(eral "at!"6a4t!on 4ategor!e"0

!n4l#d!ng be"t (al#e a)ong do)e"t!4 a!rl!ne" 6or t%e t%!rd $ear !n a ro& Ot%er a44olade"

!n4l#ded be"t l#ggage .ol!4$0 be"t 4%e4-!n e7.er!en4e0 be"t 4on"#)er on-t!)e e"t!)ate"0 and

)o"t e4o-6r!endl$ ' t%e )o"t to. 6!n!"%e" o6 an$ a!rl!ne +A(on0 2120 .ara

T%e "e4ond ele)ent !n de(elo.!ng and )a!nta!n!ng lo$alt$ !" to ee. .a""enger"

!n6or)ed o6 .otent!al .roble)" and .ro.o"!ng )ean!ng6#l "ol#t!on" It 4an be a" "!).le a" &%en

a 6l!g%t !" dela$ed0 to let .a""enger" no& t%e nat#re and e7tent o6 t%e dela$ a" "oon a" .ert!nent

!n6or)at!on be4o)e" a(a!lable "o t%at e(er$ .a""enger %a" a .ro.o"ed "ol#t!on &!t% o.t!on" I6 a

4onne4t!ng .a""enger !" l!el$ to )!"" t%e!r 4onne4t!on0 t%e a!rl!ne "%o#ld be .re.ared &!t%

o.t!on" "#4% a"= o66er!ng a "eat on t%e ne7t a(a!lable 6l!g%t +and !6 t%e dela$ !" "#b"tant!al0 a )eal

1




allo&an4e0 or .o""!ble lodg!ng a44o))odat!on"> or !6 a..ro.r!ate tran".ortat!on b$ an

alternat!(e )ode to t%e!r !ntended 6!nal de"t!nat!on T%e botto)-l!ne !" t%at t%e .a""enger "%o#ld

be !n6or)ed o6 t%e "tat#" o6 t%e .roble) and be allo&ed to "ele4t an o.t!on .ro(!ded b$ t%e

a!rl!ne In )an$ 4a"e"0 t%e a!rl!ne and .a""enger" al!e are le(erag!ng enabl!ng te4%nolog$ a" .art

o6 t%e .roble)-"ol(!ng tool" It !" !).ortant to note t%at not all .a""enger" &!ll be "at!"6!ed 122

o6 t%e t!)e0 b#t t%e better .re.ared an a!rl!ne !" to )eet #ne7.e4ted "!t#at!on" and %o& t%e$ rea4t

and !ntera4t &!t% .a""enger" goe" a long &a$ to e"tabl!"%!ng and )a!nta!n!ng .a""enger lo$alt$

De(elo.!ng and )a!nta!n!ng 4red!b!l!t$ !" t%e t%!rd ele)ent !n t%e lo$alt$ tr!angle and !"

be4o)!ng !n4rea"!ngl$ d!66!4#lt So#t%&e"t A!rl!ne" and !t" )aret!ng tea) are 6a4!ng an #.%!ll

battle &%en relat!ng to t%e 4red!b!l!t$ o6 t%e !n6or)at!on t%e$ .ro(!de !t% t%e "%eer (ol#)e and

.rol!6erat!on o6 !n6or)at!on and 4%annel" t%ro#g% &%!4% !t !" a(a!lable0 a!rl!ne )areter" are

6a4!ng a "!gn!6!4ant 4%allenge &!t% re".e4t to t%e 4red!b!l!t$ o6 t%e !n6or)at!on t%e$ .ro(!de A

.a""enger:" "o#r4e o6 !n6or)at!on 4an range 6ro)= relat!(e" and tr#"ted 6r!end" +e".e4!all$ !6 t%e

"o#r4e !" &ord-o6-)o#t%> tra(el agent" +.redo)!nantl$ onl!ne agent"0 and rando) blogger"

.o"t!ng t%e!r o.!n!on" &!t%!n t%e a!rl!ne:" o&n "o4!al net&or a" &ell a" ot%er and tra(el-related

onl!ne 4o))#n!t!e" %en !t 4o)e" to "o4!al )ed!a0 !t "%o#ld 4o)e a" no "#r.r!"e t%at 8 "o4!al

)ed!a 6!t" t%e So#t%&e"t 4#lt#re .er6e4tl$0 &%ere older a!rl!ne" "ee) to be .la$!ng 4at4%-#. !n

t%!" .o&er6#l )odern )aret!ng arena; +A!rl!ne"0 a(!at!on0 210 .ara All t%!" e)erg!ng

te4%nolog$ )ean" t%at .a""enger" )ore t%an e(er %a(e d!66erent "o#r4e" to 4o).are t%e 4la!)"

)ade b$ a!rl!ne" !n t%e!r ad(ert!"e)ent" or t%e!r &eb"!te"

O6ten t!)e"0 a!rl!ne" get "narled #. !n 6o4#"!ng on t%e 8e7tra"; or 8n!4e to %a(e";0 rat%er

t%an t%e ba"!4" E(en a" earl$ a" 220 *AA re.ort" .red!4ted t%at 8Lo&-*are A!rl!ne" !ll Carr$

al6 o6 9a""enger" b$ 215; +San4%eJ0 220 . T%e *AA re.ort &ent on to "tate t%at t%e



ASSESSMENT5-1 INTEGRATED GLOBAL MARKETING CASE STUDY /

.red!4ted gro&t% &!ll be dr!(en not b$ t%e b#"!ne"" tra(eler" &%!4% t%e a!rl!ne" t%at %a(e

trad!t!onall$ de.ended #.on 6or !n4rea"ed re(en#e"0 b#t rat%er b$ 4o"t-4on"4!o#" .a""enger" &%o

"%o. 6or 6are" on t%e !nternet ' &%!4% !" e7a4tl$ t%e !nd" o6 4#"to)er" lo&-4o"t 4arr!er" l!e

So#t%&e"t A!rl!ne" 4ater" 6or T%at )ean" So#t%&e"t A!rl!ne" "trateg$ o6 6o4#"!ng on t%e ba"!4" !"

e7a4tl$ &%at t%e )a@or!t$ o6 t%e 6l$!ng .#bl!4 !" loo!ng 6or a" .art o6 t%e o(erall .a""enger

e7.er!en4e

T%e o(erall .a""enger e7.er!en4e al"o )ean" do!ng t%!ng" t%at no ot%er a!rl!ne t$.!4all$

doe" So)e )a$ re4all an !n"tan4e !n 22H0 &%en Golden State arr!or" .la$er" and 4oa4%e"

traded .la4e" &!t% a!rl!ne e).lo$ee"0 %andl!ng So#t%&e"t @ob d#t!e" at Oaland Internat!onal

A!r.ort T%e .la$er" and 4oa4%e" a""#)ed t%e role" o6 6l!g%t attendant"0 baggage %andler" and

tar)a4 tra66!4 d!re4tor" a" .art o6 a &%at S4ott Ya)a"a!0 )aret!ng )anager o6 So#t%&e"t

A!rl!ne" 6or Oaland Internat!onal de"4r!bed a" an e66ort 8to tea) #. e(er$ 4%an4e &e get; !n a

4ro""-.ro)ot!onal e66ort 6or So#t%&e"t A!rl!ne": NBA-t%e)ed a!r4ra6t0 Sla) D#n One +*l$!ng

t%e 6r!endl$ "!e"0 22H0 .ara Or anot%er !n"tan4e !n 211 &%ere a So#t%&e"t A!rl!ne" .!lot

on a 6l!g%t or!g!nat!ng at Lo" Angele" Internat!onal %eld a .lane 6or a )an go!ng to "ee %!" d$!ng

grand"on &%o &o#ld be taen o66 l!6e "#..ort !n a )atter o6 %o#r" !n Den(er0 Colorado A long

l!ne at Lo" Angele" Internat!onal A!r.ort" "e4#r!t$ 4%e4.o!nt %ad e.t %!) 6ro) gett!ng to %!"

gate on t!)e 8Yo# 4ant %old a .lane 6or e(er$ late 4#"to)er0 b#t I t%!n &e &o#ld all agree t%at

t%e"e &ere e7ten#at!ng 4!r4#)"tan4e" and t%e .!lot ab"ol#tel$ )ade t%e r!g%t de4!"!on0;

So#t%&e"t ".oe"&o)an Mar!lee M4Inn!" "a!d 8I dont t%!n $o# 4o#ld a" 6or a better e7a).le

o6 great "er(!4e 6or o#r 4#"to)er"; +A(on0 2110 .ara 12

Moreo(er0 "o)et%!ng t%at no ot%er a!rl!ne 4an 4la!) !" "o)et%!ng t%at t%e US

De.art)ent o6 Tran".ortat!on %a" d#bbed t%e 8So#t%&e"t e66e4t; T%at !" ' 4!t!e" t%at So#t%&e"t



ASSESSMENT5-1 INTEGRATED GLOBAL MARKETING CASE STUDY H

A!rl!ne" 6l!e" !nto %a(e "een a d#al re"#lt= 9r!4e" dro. and .a""enger tra66!4 boo)" +LorenJett!0

210 . H T%e a!rl!ne "#44eeded !n #"%er!ng !n an #n.re4edented era o6 a66ordab!l!t$

o&e(er0 So#t%&e"t A!rl!ne": 4o"t" %a(e )oderated "o)e&%at and %a(e 4o)e 4lo"er to !t"

4o).et!tor":0 e".e4!all$ a6ter t%e banr#.t4$ 6!l!ng" &!.ed o#t )#4% o6 t%e debt o6 lega4$

4arr!er" E(en "o0 So#t%&e"t A!rl!ne": lega4$ o6 !ne7.en"!(e 6l!g%t" re)a!n"

Action Alternatives

T%ere are 4%allenge" a%ead 6or So#t%&e"t A!rl!ne" t%o#g% %!le t%e a!rl!ne &a"

.r!)ar!l$ a .o!nt-to-.o!nt "%ort-%a#l reg!onal 4arr!er0 t%e a4<#!"!t!on !n 212 and "#b"e<#ent

!ntegrat!on o6 A!rTran A!r&a$" !n 21 bro#g%t abo#t a ne& "et o6 6or)!dable te"t" to t%e 8tr!ed-

and-tr#e; So#t%&e"t A!rl!ne" LCC 6or)#la T%!" al"o )ean" t%at ot%er 4o).et!tor" !n t%e Un!ted

State" #"!ng t%e "a)e LCC )odel %a(e entered t%e )aret ,etBl#e0 S.!r!t0 *ront!er0 Alleg!ant0

and !rg!n A)er!4a to na)e a 6e& Ea4% %a" tr!ed to d!66erent!ate t%e)"el(e" 6ro) t%e re"t o6 t%e

LCC .a4 &!t% "o)e degree o6 "#44e"" E(en !n t%e 6a4e o6 !n4rea"ed 4o).et!t!on0 So#t%&e"t

A!rl!ne" doe" an e74e.t!onal @ob !n d!66erent!at!ng t%e)"el(e" !n &%at %a" no& be4o)e a )at#re

and largel$ "at#rated )aret !n t%e Un!ted State" S.e4!6!4all$0 &%!le )o"t o6 !t" 4o).et!tor" %a(e

tagged on 6ee" 6or al)o"t all an4!llar$ 4o"t"0 So#t%&e"t A!rl!ne" !" alone !n t%e 6a4t t%at

.a""enger" are allo&ed #. to t&o + bag" 6ree a" .art o6 t%e!r t!4et 6are ' !n4l#d!ng t%e!r ne&

!nternat!onal de"t!nat!on" T%!" &a" a %#ge ga)ble on t%e .art o6 t%e a!rl!ne e7e4#t!(e"0 b#t

#lt!)atel$ .a$ed o66 d!(!dend" In 2110 8b$ re6#"!ng to n!4el-and-d!)e 4#"to)er"0 So#t%&e"t

added t&o .er4entage .o!nt" o6 )aret "%are0 !n4rea"ed .a""enger load" b$ 12 and bro#g%t !n

F b!ll!on !n !n4re)ental ann#al re(en#e ' at a 4o"t o6 F522 )!ll!on or "o !n 6orgone bag 6ee";

+%elan0 2110 .ara 5 In 6a4t0 one o6 So#t%&e"t A!rl!ne": )an$ tagl!ne" and "logan" !" 8Bag"

*l$ *ree; D#r!ng t%e "ale" .ro)ot!on 4a).a!gn o6 2120 t%e$ .ro#dl$ e)blaJoned 8)ore t%an




52 a!r4ra6t &!t% t%e "logan0 8*ree Bag" *l$ ere; and an arro& .o!nt!ng to !t" 4argo b!n and

tagged a..ro7!)atel$ 10222 l#ggage 4art" a4ro"" t%e "$"te) &!t% banner" t%at "a$ I Carr$ *ree

Bag" +So#t%&e"t A!rl!ne" anno#n4e" !nno(at!(e0 2120 .ara 1

T%e !))ed!ate goal" 6or So#t%&e"t A!rl!ne": 6#t#re are "tra!g%t6or&ard T%e a!rl!ne a!)"

to gro& earn!ng"0 )eet or beat t%e .r!or $ear:" ROI0 and !).ro(e #.on t%e!r alread$-e74e.t!onal

"er(!4e &!t% and en%an4ed 6o4#" on %o".!tal!t$ and rel!ab!l!t$ T%ree 6o4#" area" &!ll %el. dr!(e

gro&t% 6or t%e a!rl!ne Na)el$= )ae t%e )o"t o6 t%e re.eal o6 t%e r!g%t A)end)ent t%at 6or

de4ade" re"tr!4ted tra(el !n and o#t o6 Dalla" ' Lo(e *!eld a!r.ort> better addre"" t%e need" o6

b#"!ne"" tra(eler"> and 4a.!tal!Je on t%e !nternat!onal gro&t% )aret" ' .art!4#larl$ !n t%e

Car!bbean and Lat!n A)er!4a Ne(ert%ele""0 So#t%&e"t A!rl!ne" &ant" to 4ont!n#e t%e tra4-

re4ord o6 .ro6!tab!l!t$ "trong earn!ng" )o)ent#) o(er t%e long ter) b$ gro&!ng t%e a!rl!ne at a

"en"!ble rate0 and 4ont!n#!ng to en%an4e t%e .a""enger e7.er!en4e An !ntegrated )aret!ng

"trateg$ !" 4r!t!4al to t%at "#44e""

T%e 213 *AA 6ore4a"t 4all" 6or US 4arr!er 4o)b!ned do)e"t!4 and !nternat!onal

.a""enger gro&t% to a(erage .er4ent .er $ear o(er t%e ne7t t&o de4ade" S$"te) 4a.a4!t$ !n

a(a!lable "eat )!le" +ASM" ' t%e o(erall $ard"t!4 6or %o& b#"$ a(!at!on !" bot% do)e"t!4all$

and !nternat!onall$ ' !" .ro@e4ted to !n4rea"e b$ 3 .er4ent !n 213 a6ter .o"t!ng a .er4ent

!n4rea"e !n 215 It &!ll t%en gro& at an a(erage ann#al rate o6 5 .er4ent t%ro#g% 23

+S4%a#6ele0 2150 . 1 I).o"ed !n 1/0 t%e r!g%t A)end)ent "e(erel$ re"tr!4ted 6l!g%t" to

and 6ro) Dalla" ' Lo(e *!eld a!r.ort In 2230 Congre"" 6!nall$ (oted to re.eal t%e r!g%t

A)end)ent ' e66e4t!(e O4tober 21 So#t%&e"t A!rl!ne" )ared t%e o44a"!on &!t% a 4le(er and

(er$ .#bl!4 )aret!ng .lo$ b$ g!(!ng a&a$ 10222 6ree 6l!g%t" to 4elebrate !t" ne&-6o#nd 6reedo)

6ro) !t" %o)e a!r.ort T%e a!rl!ne 4o#ld no& o66er ne& non"to. 6l!g%t" 6ro) Lo(e *!eld to a"




)an$ a" 1/ de"t!nat!on"0 !n4l#d!ng> Den(er0 C%!4ago +M!d&a$0 Balt!)ore?a"%!ngton0

a"%!ngton0 DC +Reagan Nat!onal0 La" ega"0 Lo" Angele" +LAP0 Orlando0 9%oen!70 Orange

Co#nt$?Santa Ana0 San D!ego0 Ta).a Ba$0 *t La#derdale0 Ne& Yor C!t$ +LaG#ard!a0 Atlanta0

Na"%(!lle0 San *ran4!"4o +S*O and Oaland +OAK +So#t%&e"t A!rl!ne" g!(!ng a&a$ 10222

6l!g%t"0 210 .ara

In ter)" o6 4ater!ng to b#"!ne"" tra(eler"0 So#t%&e"t A!rl!ne" re4ogn!Je" t%at t%!" !" a

to#g% )aret Mo"t lega4$ a!rl!ne" 4ater to b#"!ne"" tra(eler" be4a#"e t%e$ %a(e trad!t!onall$

been t%e )o"t l#4rat!(e and .otent!all$ t%e )o"t .ro6!table 4#"to)er" !n t%e !nd#"tr$ o&e(er0

t%e$ al"o 4arr$ %!g% e7.e4tat!on" !n ter)" o6 .er" and "er(!4e" o66ered b$ t%e a!rl!ne "#4% a"

larger "eat"0 !n4rea"ed legroo)0 ".e4!al )eal"0 !n-6l!g%t enterta!n)ent0 et4 So#t%&e"t A!rl!ne"

4annot d!re4tl$ 4o).ete &!t% t%e lega4$ 4arr!er" on e<#al gro#nd" o&e(er0 toda$:" to#g%er

e4ono)!4 en(!ron)ent %a" a4t#all$ &ored to So#t%&e"t A!rl!ne": bene6!t Man$ 4o).an!e" are

rel#4tant to .a$ 6or 6#ll-6are b#"!ne"" 4la"" t!4et" and are re<#!r!ng e).lo$ee" to "ee )ore

e4ono)!4al )et%od" o6 b#"!ne"" tra(el Enter 8B#"!ne"" Sele4t; 6are" &%!4% So#t%&e"t A!rl!ne"

4reated !n 21 T%!" )aret!ng )ane#(er )ean" t%at 8*or F20 So#t%&e"t &!ll let 4#"to)er"

.a$ to @#). !nto !t" QA: board!ng gro#. and get onto t%e a!r4ra6t a%ead o6 ot%er"; +T%e

A""o4!ated 9re""0 210 . 5B B$ be4o)!ng .art o6 t%e 8A; board!ng gro#.0 b#"!ne"" "ele4t

.a""enger" %a(e a better 4%an4e at .re6erred "eat" So#t%&e"t A!rl!ne" !" (er$ 4are6#l not to 4all

t%!" a 6ee "!n4e t%e$ 4on"!der t%!" an o.t!on t%at !" b$ no )ean" )andator$ or e""ent!al 6or t%e

ord!nar$ tra(eler It .ro(!de" b#"!ne"" tra(eler" &!t% a ")all "en"e o6 added bene6!t" &%!le

"ta$!ng tr#e to t%e So#t%&e"t A!rl!ne" ".!r!t It !" !).ortant to re)e)ber t%o#g% t%at t%e 6o4#" 6or

t%e a!rl!ne re)a!n" t%e "a)e0 treat e(er$ .a""enger t%e "a)e T%!" &!ll al"o )o"t 4erta!nl$ not




addre"" .a""enger" &%o "t!ll e7.e4t a go#r)et )eal0 larger "eat"0 !n4rea"ed legroo)0 and !n-6l!g%t

enterta!n)ent

T%e !nternat!onal )aret %a" been an !ntere"t!ng 4%allenge 6or So#t%&e"t A!rl!ne" E(en

a" !t ta4le" t%e n#an4e" o6 t%e do)e"t!4 )aret0 t%e a!rl!ne !" e)bar!ng on a ne& 6ront!er t%at !"

a" 6or)!dable a" !t" beg!nn!ng" !n t%e a!rl!ne !nd#"tr$ T%ro#g% !t" a4<#!"!t!on o6 A!rTran

A!r&a$"0 So#t%&e"t A!rl!ne" !n%er!ted a .r!)e .o"!t!on !n t%e Car!bbean and Lat!n A)er!4an

o(er"ea" )aret A" "tated b$ t%e *AA 6ore4a"t re.ort0 !nternat!onal gro&t% .art!4#larl$ 6or t%e

Car!bbean and Lat!n A)er!4an )aret" .re"ent" a tre)endo#" o..ort#n!t$ 6or US ba"ed a!r

4arr!er" It !" &ell do4#)ented t%at t%e large"t US %#b "er(!ng Lat!n A)er!4a !" George B#"%

Inter4ont!nental A!r.ort !n o#"ton an4%ored b$ Un!ted A!rl!ne" So#t%&e"t A!rl!ne" alread$ %a"

a "#b"tant!al .re"en4e a4ro"" to&n at t%e o#"ton-obb$ a!r.ort0 b#t %a" .re(!o#"l$ la4ed t%e

!n6ra"tr#4t#re to %andle "!gn!6!4ant !nternat!onal tra(el T%at !" &%$ !n 210 )#4% to t%e 4%agr!n

o6 Un!ted A!rl!ne"0 So#t%&e"t A!rl!ne" broe gro#nd on a ne& on a ne& F153 MM !nternat!onal

ter)!nal 4on"!"t!ng o6 a 6!(e-gate 6a4!l!t$ t%at &%en 4o).leted &!ll a44o))odate reg!onal

!nternat!onal 6l!g%t" 6or t%e a!rl!ne rea4%!ng de"t!nat!on" !n t%e Car!bbean0 Me7!4o0 and t%e

nort%ern 4!t!e" o6 So#t% A)er!4a +So#t%&e"t A!rl!ne" brea" gro#nd0 210 .ara B$ *ort#ne

MagaJ!ne:" e"t!)ate"0 8So#t%&e"t 4o#ld 4a.t#re 5 o6 t%e nearl$ F32 b!ll!on .ro@e4ted )aret

6or tra(el to Lat!n A)er!4a and t%e Car!bbean0 add!ng F b!ll!on !n re(en#e" T%at alone &o#ld

l!6t So#t%&e"t:" .ro@e4ted gro&t% rate 6ro) 55 to &ell o(er /; +T#ll$0 2150 . 13

Conclusion

So#t%&e"t A!rl!ne" began a" a .!oneer !n t%e lo&-4o"t a!rl!ne "eg)ent and t%ro#g%

"#"ta!ned 6o4#" on t%e ba"!4" and t%ro#g% !n4rea"!ngl$ 4reat!(e and "#44e""6#l )aret!ng

4o))#n!4at!on"0 t%e$ %a(e been able to )a!nta!n a leader"%!. .o"!t!on !n t%e a!rl!ne !nd#"tr$




T%e (olat!l!t$ and 4$4l!4al nat#re o6 t%e a!rl!ne !nd#"tr$ )ean" t%at "ale" and )aret!ng

.ro6e""!onal" %a(e an e(er gro&!ng role !n t%e "#44e"" o6 So#t%&e"t A!rl!ne" T%at )ean" %a(!ng

t%e r!g%t tool" and )!7 to 6a4!l!tate t%e )aret!ng 4o))#n!4at!on" to= %el. !).ro(e

#nder"tand!ng o6 a So#t%&e"t A!rl!ne": .rod#4t" and "er(!4e"> re!n6or4e t%e So#t%&e"t 4#lt#re

and !)age t%e$ &ant to .ortra$> and #lt!)atel$ "#..ort t%e "ale" 4$4le !n order to dr!(e re(en#e

and .ro6!t" To tr#l$ be "#44e""6#l 6ro) an !ntegrated )aret!ng .er".e4t!(e0 !t al"o )ean"

!ntegrat!ng t%e!r tool" and .ro)ot!onal a4t!(!t!e" !n t%e 4onte7t o6 ad(ert!"!ng0 "ale" .ro)ot!on0

and .#bl!4 relat!on" *e& a!rl!ne" %a(e been able to "#r.a"" So#t%&e"t A!rl!ne" &!t% t%e!r

#nden!able )aret!ng 4o))#n!4at!on" !).a4t and leader"%!. .o"!t!on t%at t%e$ %a(e 4e)ented

t%ro#g% "#"ta!ned0 4reat!(e and "#44e""6#l )aret!ng 4o))#n!4at!on" T%e So#t%&e"t A!rl!ne"

LCC )odel %a" ob(!o#"l$ bene6!ted t%e a!rl!ne tre)endo#"l$ o&e(er0 !t !" not a one-"!Je-6!t"-

all a..roa4% and not e(er$one !n t%e 6l$!ng .#bl!4 &!ll 4%o"e So#t%&e"t A!rl!ne"

T%e So#t%&e"t A!rl!ne" brand and !t:" e(er e(ol(!ng tagl!ne" "#4% a" 8Bag" *l$ *ree;0

8Yo# Are No& *ree to Roa) Abo#t t%e Co#ntr$;0 8T%e A!rl!ne t%at LU B#!lt;0 et4 are all

de"!gned to= d!"t!ng#!"% So#t%&e"t A!rl!ne" a.art 6ro) !t" 4o).et!tor" !n t%e !nd#"tr$> re!n6or4e

!t" 4o))!t)ent to .a""enger"> re)a!n 4#rrent and rele(ant a" t%e re"t o6 t%e a!rl!ne !nd#"tr$

"tr#ggle"> and #lt!)atel$ .re"ent t%e a!rl!ne !n t%e be"t .o""!ble l!g%t *or So#t%&e"t A!rl!ne"0 t%!"

!" relat!(el$ ea"$ be4a#"e o6 t%e 4#lt#re t%at %a" been !)bedded !nto t%e e).lo$ee" at all le(el"

o6 t%e organ!Jat!on A" &e %a(e d!"4#""ed0 So#t%&e"t A!rl!ne" #"e" (ar!o#" )!7e" o6 brand

4o))#n!4at!on tool" and &e %a(e 4!ted ".e4!6!4 e7a).le" o6 %o& t%e$ #"e !t 6or t%e bene6!t o6

t%e a!rl!ne So#t%&e"t A!rl!ne" no&" e7a4tl$= &%o t%e$ are a" an a!rl!ne> &%o t%e!r target

4#"to)er" are> &%at do t%e!r 4#"to)er" &ant> &%at d!66erent!ate" t%e a!rl!ne 6ro) t%e ot%er"> and

&%$ t%e$ "%o#ld 4%o"e t%e) a" t%e!r .re6erred a!rl!ne T%!" !" %o& So#t%&e"t A!rl!ne" #"e"




gen#!ne no&-%o& to !ntegrate !t" )aret!ng 4o))#n!4at!on" and .ro)ot!onal a4t!(!t!e" a" .art

o6 !t" ar"enal 6or t%e o(erall bene6!t o6 t%e a!rl!ne and to dr!(e 6!nan4!al re"#lt"




Appendix A

Appendi A 1 - !"S" Carrier Enplanement Mar#et S$are by %egion &S'$aufele( )*1+( p" 1,




Appendi A ) - Total Passengers To.From t$e !"S" Ameri'an and Foreign Flag Carriers &S'$aufele( )*1+( p" 1/

Appendi A 0 2ield and Load Fa'tors for t$e Largest 3lobal Airlines &4let5el( et"al"( )*1+( p" 6




References

+22H0 Se.te)ber *l$!ng t%e 6r!endl$ "!e"0 arr!or" "t$le Contra Costa Times (California)

Retr!e(ed 6ro)

%tt.=??&&&le7!"ne7!"4o)l!brar$4a.ellaed#?lna4#!a.!?a.!?(er"!on1?getDo4C#!

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.er)atr#e

Aero".a4e and de6en"e 4o).an!e"> "o#t%&e"t a!rl!ne" and A!rTran a!r&a$" 4onne4t net&or"

+21 Marketing Weekly News, 236 Retr!e(ed 6ro)

%tt.=??"ear4%.ro<#e"t4o)l!brar$4a.ellaed#?do4(!e&?1113232/a44o#nt!d/35

A!rl!ne"0 a(!at!on> "t#d$ "%o&" "o#t%&e"t a!rl!ne" r#le" t%e "o4!al at)o".%ere +210 ,#ne

Marketing Weekly News, 1079 Retr!e(ed 6ro)

%tt.=??"ear4%.ro<#e"t4o)l!brar$4a.ellaed#?do4(!e&?121/H1H/a44o#nt!d/35

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Retr!e(ed 6ro)

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tree!dt%24"!335do4No2

A(on0 N +2120 No(e)ber So#t%&e"t to." agat a!rl!ne "#r(e$ CNN!om Retr!e(ed 6ro)

%tt.=??&&&le7!"ne7!"4o)l!brar$4a.ellaed#?lna4#!a.!?re"#lt"?do4(!e&?do4(!e&do

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ASSESSMENT5-1 INTEGRATED GLOBAL MARKETING CASE STUDY 1/

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%tt.=??eJ.ro7$l!brar$4a.ellaed#?log!n#rl%tt.=??"ear4%eb"4o%o"t4o)?log!na".7

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http://www.faa.gov/data_research/aviation/aerospace_forecasts/media/FY2016-36_FAA_Aerospace_Forecast.pdf


http://www.swamedia.com/channels/Corporate-Fact-Sheet/pages/corporate-fact-sheet












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