INTERNAL BRAND COMMUNICATION
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Internal Brand Communication
Lesson Learned earned
/ Key Success Success Factors Factors
Consistent message (brand) communication (internally) Develop both employee's knowledge and motivation Conti Continuo nuous us feedb feedbac ack k from customers and employees Focus ocus on cust custo omers mers by creating fun experience Employees satisfaction & low turnover
About
Southwest Airlines
Company Profile
Found Founded ed in 1967 1967,, by Rolli Rollin n King King and and Herb Herb Kel Kelleh leher er High High-f -freq requen uency, cy, lowlow-fa fare re,, point point-t -too-poi point nt airlin airline e First irst flig flight ht at June June 18, 18, 197 1971 1 Conn Connec ecti ting ng Dall Dallas as,, Hou Houst ston on and and San San Antonio
General
Information:
Compa ompany ny Name Name:: Sout outhwes hwestt Airlines Co. Company Company is traded traded on the the NY Stock Stock Exchan Exchange ge trade trade market market (NYSE (NYSE)) with with symbol symbol LUV Corpora Corporate te Headquar Headquarter ters s are located located at the the physical physical address: 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 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
ShortShort-dist distanc ance e busin business ess travele travelers rs and commut commuters ers Students Trav Travel eler ers s tired tired of of the the bigg bigger er airl airlin ines es No-h No-has assle sle,, no-n no-non onse sens nse e air tra trave vele lers rs
Southwest Value Proposition
Southwest: Key People
Herb
Kelleher
Co-Founder, CEO (1967-2007), Chairman Emeritus
Southwest: Key People
Gary
C. Kelly
Current Chairman, President & CEO
Colleen Barrett
President Emerita & 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, 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 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 P eople eople is clear. We want to protect the job the job security, prosperity, and well-being of all of our Employees. Employees. Our Focus is to bring the best People, with Fun-LUVing attitudes, into the Southwest Airlines Family , at a competitive salary, salary, ensuring all all have an equal opportunity opportunity - then give them the positive positive work work environment, training, and encouragement to succeed.
Organization Values Southwest Airlines' number one priority p riority is to ensure the personal pe rsonal Safety Safety of of each Southwest Customer Southwest Customer and and Employee Employee.. Beyond this, we follow " The The Golden Rule," Rule," which means we treat each other the way we want to be treated, which is why doing doin g 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 Heart and a Fun-LUVing Fun-LUVing Attitude. Attitude. Within each of these categories are specific behaviors to help us be a Safe, profitable, and Fun place pla ce to work.
Living
the Southwest Way
Source: www.southwest.com www.southwest.com
Desired Brand Image "To Provide safe, affordable, reliable, timely, courteous, and efficient air transportation" - Customer Service Commitment Commitment Agreement, (Southwest Airlines, 2005) -
"Positively outrageous service" provided in the "Southwest Spirit" - Desired brand brand image delivered delivered by the the employees employees -
Sources Modes / Messages / Brand Communication Formal
Internal
External
"People Department" Recruitment Ad Training & Development Monthly Company Newsletter: Luv Lines Performance Evaluations
Advertising
and PR to external also targeted internal
Informal
"Cultu "Culture re Committe Committees" es" Interactions with Leaders "Open Door" Policy
Customer Feedback/Letters WoM
Employee's Psyche / Brand Commitment
Southwest mak 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 employ employees' ees' knowledge knowledge and understanding of the desired brand image by sending frequent and consistent messages. 2. Southw Southwest est 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 k ey to Southwest's S outhwest's employee employee branding success
Outcome
Effe Effect ctiv ive e Posi Posittion ioning ing Increa Increased sed Emplo Employe yee e Satisfac Satisfactio tion n and reduc reduced ed staff staff turnov turnover er Higher Higher levels levels of of custo customer mer sati satisfa sfacti ction on and and loya loyalty lty Favor avorab able le overa verallll rep reputa utatio tion Oper Operat atio iona nall Effi Effiec ecie ienc ncy y
Feedback Inte Intern rnal al Sta Stati tist stic ics s & Met Metri rics cs Exte xternal Reports
Luncheons
with executives
"Op "Open Door" Po Polic licy
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 with Mechanics
Colleen Barrett with Female Pilots
Brand Citizenship Behavior: Willingness to help / Brand Enthusiasm / A Servant's Heart
B AGS FLY FREE
Brand Citizenship Behavior: Willingness to help / Warrior W arrior Spirit Spirit
11 September
2001 -- other airlines, airlines, due to decreased decreased passenger passenger
traffic, laid-off personnel. Southwest people were willing to take tak e pay cuts to avoid lay-offs. As a result, no Southwest people were laid-off laid-o ff due to the decreased passenger traffic
5Es of Internal Branding
5Es of Internal Branding Formal Internal Sources Formal External Sources Advertising
and public relations efforts are utilized as part of the employee branding process to reinforce the organization's mission and values
Training and development design to reinforce the behaviors & values of the company
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' knowledge & understanding of the desired brand image, and motivating them to project that image to others
Informal Internal Sources
Regular Corporate Events for Employee's Celebration
Educate
Source: www.southwest.com www.southwest.com
Exchange
Engage
Excite
Exemplify
Brand Culture
Brand Culture
Brand Culture: Competencies
Recruitment o
finding employees to color outside the lines, or operate in a manner that is a bit off-center
Recruitment o
Ad
Process
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 "People Depart Departmen ment" t" and and "Cultur "Culture e Commi Committe ttees" es" "Op "Open-door" Pol Policy icy Interactio ction ns wit with h Leaders Info Inform rmal al hier hierar arch chy y syst system em Southwest possesses a relaxed and pleasing work environment. Southwest management encourages and accepts ideas to improve operations. o
Brand Culture: Social Fabric
Bags Fly Free Celebrate
Christmas Celebrate
Ski Club
Brand Equity
Employe-based Brand Equity Internal Ad & PR Internal Newsletter Training & Development Open Door Policy Employee First
Interactions with Leaders "Covenant"
Consistency Cross-sectional Increased Low
Turnover
Peer-recruitment
Source: King et al. (2009)
Measurement Recruiting
Sales/Profit per Employee (SPPE)
Turnover Rate
R=H/Sx A
SPPE = S or P/ E
TR = D/E x 100
R= Recruiting H= New hires required A= Percentage who accept S= Percentage of recruit selected
SPPE= sales/profit per employee S= Total Total sales P= Total profits E= Total number of employees
TR = Turnover Rate D= Number of employee departures annually E= Total number of employees
*N o
Data on Recruiting formula above
$10,350M or $99M / 34,726
Resumes Filed= 90043 Accepted= 831 Acceptance rate= 0.22%
= $298K or $2850
*2009 Data
*2009 Data
(35,49 (35,499/3 9/3472 4726) 6) - 1 = 2.22% *2009 Data
Outcome: Awards & Accolades
Source: Source: Southwes Southwestt Airlines, 2009. Annual Report
Brand Value
Source: BrandFinance
References Burman, C., Riley, N., & Zeplin, S., 2009. K ey ey determinants determinants of of internal brand management success: An exploratory exploratory empirical empirical analysis. analysis. Journal of Brand Management (2009) 16, 16, 264 ± 284 doi: 10.1057/bm.20 10.1057/bm.2008.6; 08.6; published published online 2 May 2008. Burman, C. & Zeplin, S., 2009. Building Brand Commitment: A behavioral approach to approach internal 16, 264 ± 284 doi: brand management. Journal of Brand Management (2009) 16, 10.1057/bm.20 10.1057/bm.2008.6; 08.6; published published online 2 May 2008. King, Ceridwyn and Grace, Debra, 2009. Employee Based Brand Equity: A Third Perspective, Services Services Marketing Marketing Quarter Quarterly, ly, 30: 2, 122 ² 147 . Southwest Airlines, 2009. Annual Report. www.blogsouthwest.com www.swamedia.com
Thank You
