Positioning Southwest Airlines through Employee Branding

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