P R E S E N T
MM6016
Branding and Marketing Communication
POSITIONING SOUTHWEST AIRLINES THROUGH EMPLOYEE BRANDING 29111311 Haidir Afesina 29111363 Wirania Swasty 29111384 Chairunnisa M. 29111387 F X Kresna Paska 29111398 Aqsa Adhiperwira 29111400 Fajar Liem
SOUTHWEST AIRLINES 2006 1995 1971
1967 Formed by Herb Kelleher and Rollin King
Ticketless travel available system wide
Southwest’s 31th consecutive year of profitability
Established in Texas with 3 planes; routes between Dallas, Houston, and San Antonio
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
Satisfied Flight • Affordable • Safe • Reliable • Timely
High loyalty with limited customer base - High customer satisfaction - Customer experience
Resonance
Judgment Feelings Low Fare - Cheap - No frill service
Performance
Imaginery
Salience High awareness - Friendly crew - Entertaining
Warm • Fun • Friendly Positive outrageous service • Unique 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 Southwest’s 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 organization’s mission and values are the cornerstones of the process: they state the organization’s reason for being and give insight into the manner in which the mission is to be accomplished
THE PROCESS
CONT’D.
An organization’s mission and values provide a foundation by which the desired brand image is defined. Messages transmitted within the organization should clearly convey the organization’s 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
CONT’D.
Effective and consistent transmittal of messages reflecting the organization’s 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
Opportunities • Industrial growth – after declining on 9/11 incident • International flights
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
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
Segment
Target
Positioning
• • • •
Medium-to high-frequency business travelers Male/female professionals aged 24-55 years of age. Internet/technology savvy Price/cost conscious
• Prefer low-cost fares • Frequent schedules • Commuting short distances
• The only low-fare, short-haul, high-frequency, point-to-point carrier in America that is fun to fly
MARKETING PROGRAM Product
Price
• 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
• 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 • Southwest’s marketing and advertising goal is to be very clear in their low-fare message but at the same time create and reinforce the company’s nutty image • Internal marketing program
Place
• Travel bookings on Southwest Airlines are done primarily through direct marketing: by phone and the Internet • Doesn’t 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
Performance Culture Stocks options Profit sharing Compensation and incentives Open door policy Luv Lines
Team
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
Consistently low fare Safe On time
ASSURANCE
High quality service
TANGIBLE
EMPATHY
RESPONSIVENESS
Using Boeing People Development (learn & grow)
Warmth Friendly
Creativity and Innovation are encourage in giving service
Caring
Leadership
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 building’s 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
