“Ding! You are now free to move around country “

With Shivam Gupta IIT Roorkee

A strategy or common sense……….

Southwest Airlines was established in 1967 by Herb Kelleher

and adopted its current name (Southwest Airlines) in 1971.

It refers it self as LUV “LOVE” airline……………….

Now it has largest airline Market SHAREin U.S.

Its product class

Word of Mouth …

Success Story : U. S. most Admired Airlines …

Why only ????????

Got success…..

Because of …

Quality

Low fare GAME

Southwest makes their customers believe why it is cheaper to travel in Southwest

rather than other airlines without compromising in its quality service ……

Also do Promotional pricing on special events and

psychological discounting to

stimulate its customers for more travel..

Southwest uses VALUE pricing method

Other favorable services to

make a

SUSTAINABLE relationship with

customers..

The objective is To become a PRODUCT

QUALITY LEADER….

How Both low price and best Qualities are possible simultaneously????????

Its Strategy of fuel hedging

Southwest makes its planes lighter and it caries

largest number of passengers at a time

40% price of ticket goes for fuel .

So Southwest has saved more than $2 billion with this

strategy..

Southwest looks for and hire people who generate enthusiasm .

Company cares for its workers , so workers care for it

too and increase its productivity……

Marketing Strategies …..

Southwestern publishes its own

magazine read by 5 million traveller /issue.

Participate in Charitable

giving ,

Environmental

initiation to gain

public relation

and brand image

Why some

other

competitors

didn’t follow

its business

model ??????

Future

Southwest doesn’t compete

only with other airlines but

also with other means of

transport , in future any

innovated fast

bullet train can attract

its customers ,and it would be

very hard for Southwest to

compete with it ……….

It’s time for landing ….. But before it, lets

RECAP

Entry

as

Because of its

Market

Leader

of U.S.

airline.

If LUV can do it so do u in your field ………..

DISCLAIMER

Created by SHIVAM GUPTA ,IIT ROOKEE ,during my marketing internship

under the guidance of Prof. SAMEER MATHUR ,IIM

LUCKNOW .

Please see the link

www.IIMLUCKNOW.com