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Overview
Founded Creators Fleet size 1971 Rollin King and Herb Kelleher 472

Destination

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Headquarters Dallas, Texas

Business Concept:
Attract passengers by flying convenient schedules, get passenger to their destination on time, make sure they have a good experience, and charge fares competitive with travel by automobile
Southwest
Communication

Primarily short haul High-frequency Point-to-Point Low-fare Service 500 pound cockroach that was too big to stamp out Expanded through 1980s to 1990s by 1993 could fly in 34 states Also expanded to California, Northwest, Florida, East Coast
Services Marketing Culture

Achievements

Defeated industry trend by earning profits in consecutive 36 years Triple Crown - 12 time by mid 1993 ( Fewest Complaints, Fewest Delays,& Fewest mishandled bags (per 100 passengers)) No. 1 : fewest customer complains Fortune Magazine : 5th most admired company in 2007 Top global airlines survey : second behind Singapore Airlines Each plane flew 7 flights daily, twice the industry average Planes used 13 hours a day, 40% more than majors. Average age of fleet 9 years, lowest in industry Flew more passengers per employee (record), fewest employee per aircraft Debt to equity ratio less than industry average Never curtailed service due to strike nor any casualty in accident
Southwest
Communication Services Marketing Culture

Communications
Flight hostesses in colorful hot pants and white knee high boots with high heels

Southwest

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Communications
Free alcoholic beverages during daytime

Core Values : LUV & Fun

LUV: Now Theres Somebody Else Up There Who Loves You Airport: Dallas Love Field Route: Love Triangle Planes: Love Birds Drinks: Love Potion Peanuts: Love Bites Coupon: Love Ticket Market Segmentation : Business Travelers - Time sensitive & want week day flight Price Sensitive leisure travelers - lower fare & more flexible about flights On-Peak & Off-Peak Pricing Weekday flights before 7 pm - $26 & others $13 Braniff - $13 Southwest - Choice of $26 - Chivas Regal scotch, Crown Royal Canadian whiskey, or Smirnoff vodka (or, for nondrinkers a leather ice bucket)
Southwest
Communication Services Marketing Culture

Services
Low Cost/ Low Price/ no-frills stragey: Tagline : Freedom to Fly VS

Point-to-Point Model Hub & Spoke Model Minimized connections, delays, & total trip time Nonstop flights between 350 pairs of cities Average aircraft trip - 540 miles long & 1.5hr long (in 2002) Boeing 737s: Minimized spare part inventory size Simplify training of maintenance & repair personnel Scheduling of flights Bypassing commission agents: $6-$8 (through Agents) vs $1(Online) vs $3-4 (Internal reservation) Ticketless Journey: No commissions 8% price on electronic ticket & 5% price on paper ticket Lowest Turn Around Time : 15 min (Source: Southwest Airlines)
Southwest
Communication Services Marketing Culture

Low Cost Service continued..

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Avoidance of Congested airports: Preferred service airports near metropolitan areas & medium sized cities Better-than-ever performance Reduced fuel costs No high landing fees & terminal gate costs No reservation: To save time Color-coded plastic cards with numbers on them Afterwards - big , bold A, B or C on boarding pass Flight Attendants to clean up No First-class section & no fancy clubs for frequent fliers No Meals: Offered beverages & snacks 2002 - Provided 162.4 million packages of peanuts , 51.3 million packages of other snacks, 9.9 million alcoholic & 44.5 million cans of nonalcoholic beverages (Source: Southwest Airlines) No baggage transfer
Southwest
Communication Services Marketing Culture

Customer Satisfaction

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We have lots of brand ambassadors out there - our customers Family Fun: Efforts towards - positive & fun flying experience Were kind of a big family here & families have fun together. The passengers are part of the family too, so we have fun with them -Operating Manager Cheery & witty gate personnel Entertainment - trivia questions or comments Who has the biggest hole in his or her sock? or What is the weight of gate personnel? Friendly advices - customers looking for open seats Joke sharing, playing gags, play harmonicas & sang announcements Bunny ear - flight attendant Happy Face reputation We dont want a phony smile. We want a genuine open spirit, someone who really likes people & want to help out. Out of the way help: 3 Week stay at airhostesses home
Southwest
Communication Services Marketing Culture

Customer Satisfaction continued..

Free baggage transfer

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Pets on Flight

Southwest

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Advertisement
Unconventional & attention-getting ads and billboards

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Southwest

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Marketing
30th Anniversary: (2001) $30 one-way fare to 30 destinations from 35 cities between June 25 & October 26 Car rentals & hotel partners participated $30-a-day rental, $30-off discount & $30-a-day hotel room Decorations in gates, prize giveaways & employees playing games in gate area Change in look: (2002) Gold/Orange/Red Scheme

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Canyon/Blue/Red/Gold/Orange Scheme

Southwest

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Logos
Southwest Airlines started as Air Southwest and changed to Southwest Airlines in March 29, 1971. They begin their first flight since they changed their name on June 18, 1971.

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Southwest Logos

The LUV emblem

The Takeoff logo

Southwest
Communication Services

The Green logo

Marketing Culture

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Employee Friendly Culture

Employee come first and Customers come second

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Emphasis on Value of People Keep Employees Happy then they will keep customers happy No Layoff Policy: since 1971 In-house Union - The Southwest Airline Pilots Association Freedom to employees We want people to ask for forgiveness, not for permission. - Ann Rhoades Do whatever you feel comfortable doing for a customer. Peer Hiring A Patina of spirituality: Ive never seen so many people hug each other except at a family reunion. - Visitor of Southwest office Good Compensation: Pilots are paid 10% above industry average -> Flew 85 hrs per month (Southwest) vs 80.2 hrs (Industry)

Southwest

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Questions

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