Southwest Airlines - Internal Branding Communications

INTERNAL BRAND COMMUNICATION

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Internal Brand Communication

Lesson Learned earned

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/ 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

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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

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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 

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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

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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

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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