Professional Documents
Culture Documents
Kerry Chereskin Lauren Christopherson Stefan Tenev Steve Tomburinni David Hickey Tayler Carpenter
Executive Summary - 3 SWOT Analysis Marketing Objectives and Strategies - 4 Competitive Considerations - 7 Creative History of the Brand - 11 Target Audience - 13 Geographic Considerations - 16 Timing and Purchase Cycle -18 Questions about the Media Mix - 20 Creative Brief - 21 Marketing Objectives/Strategies Target Audience and Media Mix - 29 Reach and Frequency - 31 Scheduling and Timing - 34 Media Budget - 35 Geography - 41 Sales Promotion - 42 Appendix - 43
Table of Contents
jetBlue is a low cost, high quality airline. It is Impact Creative Groups goal to increase summer travel by 5% to all coastal and Caribbean destinations. To encourage metropolitan professionals to book vacations during the summer months, we will launch a campaign that will target Caucasian women ages 25-34. They will be college graduates with a household income of $75,000 or more. These women like to book trips online, prefer active vacations with many activities, and enjoy traveling abroad. Impact Creative Group will utilize the following media to reach our target audience: prime time television regional spots, consumer magazines, outdoor billboards in five major markets, Internet advertising and the use of social media. Our media flight plan will pulse two months before heavy travel and vacationing to reach a frequency of 10 times a month while maintaining a constant frequency of at least 5 during months of high travel. Advertising will primarily occur January through April, so we can successfully reach metropolitan women before they book their summer vacations.
Executive Summary
SWOT Analysis
jetBlue engages in large multi-market programs, along with many local events and sponsorships, including Live From T5 program, which began last summer with low-profile artists and also a few big name artists, such as Taylor Swift.
What is the breakdown of sales geographically? Mostly national- in 50 cities in more than 25 states, and also internationally in Mexico and the Caribbean. (See Geographic considerations below)
Introductory and Growth Stage Product quality is maintained and additional features may be added. Pricing low penetration to build market share Distribution selective until consumers show acceptance of the product Promotion aimed at innovators and early adopters, seeks to build product awareness and educate potential consumers about the product
CURRENT GOALS: Beginning next calendar year, managements goal is to increase vacation passenger seat miles by 5% between the following destinations: Boston & Cancn Phoenix & Jacksonville Buffalo, NY & San Francisco Charlotte & Bermuda Raleigh & Phoenix New York City (JFK) & Las Vegas Syracuse & Barbados New York City (JFK) & Barbados Portland, ME & Nassau Burlington & Orlando Rochester & Jacksonville Salt Lake City & St. Maarten Chicago & Bermuda Baltimore & Aruba Burbank & Fort Lauderdale Seattle & Sarasota New York & Costa Rica San Jose, Ca & Cancn Pittsburg & Montego Bay Sacramento & Santiago Raleigh & Long Beach CA
Competitive Considerations
jetBlues competitors include traditional, network airlines, low-cost airlines, and regional airlines. Competitors include: AMR Corporation Delta Airlines, Inc. Southwest Airlines Co. US Airways Group, Inc. UAL Corporation Alaska Air Group, Inc. Sky West, Inc. The airline industry is highly competitive. The factors in which these airlines compete in are: fares, customer service, routes served, safety record and reputation, in-flight entertainment, and frequent flyer programs. All competitors have similar advanced technologies such as ticket-less travel, and website bookings. jetBlue differentiates itself from the other airline companies by its low fares made possible by low distribution and operating costs - largely due to the fact that it has the youngest fleet in all domestic airlines (wikinvest). Offering high customer service, jetBlue offers travelers affordable point-to-point flights.
SWOT Analysis
Figure 2
Figure 1
Figure 1 (left), highlights 2010 Top 10 U.S. Airlines Market Share based on Revenue Passenger Miles according to wikinvest. Currently American Airlines and Southwest hold the largest share of the airline market with 13.8% The airline industry is characterized by intense price competition that allows companies to differentiate themselves from one another. However, due to the recent global economic decline, demand for air travel has declined exponentially. Because of this traveler decline, companies have had to reduce aircraft, flights and employees. It is still uncertain on the future of the air industry and whether carriers will increase or reduce capacity. Figure 2 (next page) shows the total advertising dollars each airliner spends. According to the Kantar competitive data, Southwest spends $185,673,200, which give them a 44% SOV in total advertising dollars spent. See Appendix A and B for the breakdown of Airline Advertising by Medium and Airline Advertising by Month.
jetBlue Competitors
Southwest The largest domestic carrier by total passengers, Southwest maintains low operating expenses which has allowed the company an estimated $1.1 billion in fuel costs. Current promotional campaigns include: Bags fly free Starting at $59 one-way Delta Air The second largest passenger airline in the world by available seat miles, Delta Airlines has faced financial problems associated with price competition from discount airliners. In order to compete with discount airliners (such as jetBlue and Southwest), Delta Air has promotions such as: Delta SkyMiles Last minute fares United & Continental Merger With a current market share of 10.4%, United Air spends approximately $4,218,200 on advertising. Trying to compete with discount airliners as well, United promotions include: Mileage Plus The current trend amongst the airline industry is a shift to mobile ads and applications. Southwest, American, Alaskan, and Delta Air have designed iPhone applications that allow users to make future travel plans, keep track of current travel plans, or alter travel plans on the go.
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SWOT Analysis
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SWOT Analysis
Target Audience
Demographics
Markets with high travel business and personal: Baltimore, MD Boston, MA-NH Anchorage, AK Chicago, IL Honolulu, HI Los Angeles, CA New York, NY San Francisco, CA Washington, DC-MD Women vs. Men using low price carriers Women: 54.6% Men: 45.5% Men are 4:1 compared to women in business travel. Women have a higher rate of personal travel (57.1%). Two Largest Working Demographics: 1. Professional and Related Occupations 2. Sales and Office Occupations Professionals are also the largest demo for the heavy business travel followed by management business. Management is the largest demographic for Heavy Business Travel. Management is also used to flying with traditional airline carriers. Professionals are the largest low-price demo. Our model consumer: married, woman, age 25-34, professional, white, kids, owns a home, HHI>100k
Our Target
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SWOT Analysis
Our target audiences primary VALS type is innovator. Their secondary VALS type is achiever. Innovators are successful, sophisticated, take-charge people with high self esteem. They are active consumers and receptive to new innovations and technology. Their purchase habits reflect their tastes for upscale niche products and services. Status and power are important to innovators, but they prefer to also highlight their interests and personality in all they do. Innovators are cultured and enjoy the finer things in life. Achievers are motivated by their desire for achievement. They are goal-oriented and have a large commitment to their careers and families. They value predictability, stability and intimacy. Achievers are likely to purchase prestige products that they can count on and show off to their peers.
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SWOT Analysis
Geographic Considerations
JetBlue is a regional brand that operates in roughly 55 cities, more than 20 states and several international destinations including Mexico, Columbia, the Caribbean, Puerto Rico, Bahamas and the Dominican Republic. There are five key markets that jetBlue focuses on: Boston; Orlando and Fort Lauderdale, Florida; Long Beach, California; and New York. Considering the fact that the majority of our flights arrive and depart from these five key markets, we are proposing that our campaign focus on these locations. Since we operate in multiple markets scattered around the United States, we believe a regional campaign would be most successful to all of our target markets. If we do national campaign we might not be able to reach our five key markets as strongly as we hope. In this case we will lose money and prospective customers.
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SWOT Analysis
Geographic Considerations
There are several cities that need special attention based on CDI of 110 and above in the Personal/ Vacation Trips by Plane, 3+ market:
This table with high CDI`s includes some of our key target markets such as Boston 135 CDI, Miami Ft. Lauderdale 114 CDI and New York .151 CDI 17
SWOT Analysis
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SWOT Analysis
Capacity Distribution East CoastWestern U.S. NortheastFlorida Mediumhaul. Shorthaul . Caribbean, Including Puerto Rico
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SWOT Analysis
concept, centered upon the idea of women desiring comfort and luxury, can be used consistently in all media types.
SWOT Analysis
Communication Objective: To appeal to our target audience of young female professionals. Encouraging women ages 25-34 to travel more in the summer months. Increase vacation travel by 5% over the next year. Creative Strategy and Brand Position: The strategy of the campaign is to position jetBlue as a stylish, low cost travel carrier that provides an escape for the metropolitan professional by targeting five regional areas to vacation to the Caribbean and coastal destinations. Promise: To provide every passenger with an affordable, luxurious in-flight experience Benefits: superior customer service,low-cost airfare, easy and comfortable travel experience, non-traditional amenities Tone: Fun, playful, professional, stylish Tag Line: You dont have to sacrifice a new wardrobe for comfort
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Sample Advertisement
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Sample Advertisement
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SWOT Analysis
Sample Advertisement
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SWOT Analysis
Sample Advertisement
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SWOT Analysis
Sample Advertisement
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SWOT Analysis
Sample Commercial
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SWOT Analysis
Sample Billboard
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Outdoor ! Billboards in five major markets (Boston, Orlando, Ft. Lauderdale, Long Beach, New York City) Online ! Integrated social media campaign ! Improve SEO (Search Engine Optimization) Mobile ! Target female consumer with monthly mobile updates on jetBlue's deals and promotions ! Create FourSquare app that allows travelers to "checkin" mid flight
!!! Key insight into our target demorgraphic have led Impact Group to believe these mediums would be best suited to carry the jetBlue message and hit our key demorgrpahic with the highest level of frequency, and relevancy. MRI data identifies woman as having a high propensity for personal travel. Further research shows that these mediums would be receptive to an increase in advertising spending by jetBlue. Impact Group believes that advertising in this channels will help increase the sales revenue for jetBlue in the coming year by 5% or more.
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SWOT Analysis
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Ostrows Model
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SWOT Analysis
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SWOT Analysis
Media Budget
The media budget allocated for jetBlue will consist of $26 million to spend on a regional campaign in the 5 target markets we have identified as the core of the jetBlue clientele. Our campaign will consist of a pulsing media flight during the beginning of the year and will maintain a constant jetBlue presence online, outdoor, and with our new mobile campaign. Our online advertising campaign will parrot Southwest Airlines online strategy of appropriating 4% of our yearly ad budget for online advertising. Additionally, our outdoor campaign will consist of purchasing 100 30-boards in our 5 target markets at roughly $2000 per board/month. For the rest of the year, we will spend $100,000 for 50 boards to maintain consumer awareness in our markets (top-of-mind awareness). 35
January We will start our campaign by establishing jetBlues SOV at 10% through the allocations of the budgets as follows: Television Print Outdoor Online Mobile $3,150,000 $1,000,000 $200,000 $100,000 $50,000
In January we will be kicking off our campaign with a themed Sex and the City event along with a promotional event at jetBlues main headquarters at JFK International Airport. This will be kicking off a promotional campaign that we will be implementing for jetBlue for the rest of the year.
SWOT Analysis
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SWOT Analysis
SWOT Analysis
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SWOT Analysis
September
October - December
once again jetBlue will be at the defense, maintaining a constant allocated advertising budget. Southwest is at a spending high in these three months. The following constant budget will be allocated to the following channels:
Television $0 Print $0 Outdoor $100,000 Online $87,000 Mobile $50,000
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SWOT Analysis
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Geography
Objective: It is our goal to increase jetBlues coastal and Caribbean travel by 5%. Strategy: We will target the following key markets with a new advertising campaign: Boston: Logan International Airport- 11,531,788 passengers per year Orlando International Airport- 16,705,633 passengers per year Los Angeles International - 21,477,231 passengers per year New York La Guardia- 11,514,609 passengers per year New York JFK Airport- 12,742, 779 passengers per year We will be targeting all of the 62,461,650 passengers that go through these airports every year. Advertising in these key markets will enable us to reach nearly 14 percent of total airline passengers in the United States. By implementing advertising strategies amongst these markets, we will drive sales of jetBlue tickets to the Caribbean and coastal destinations by 5% in the next year.
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Sales Promotion
Objective: We will increase top-of-mind awareness of the jetBlue brand amongst consumers. Our campaign will make our primary target audience of young female professionals feel independent and sophisticated. Strategy: We will implement the following sales promotions and events: Flash mob in Miami International Airport Sponsorship of Television Programming (I.e. The Amazing Race) Host special events inside of major airports Develop a jetBlue travel iPhone application Offer coupons and specials through social media Product placement in movies focused on travel Spokesperson: the face of jetBlue Select a strong, successful working woman as the face of the campaign Host a jetBlue event/party that has a Sex and the City like theme Attract our young, female demographic and appeal to their desire for luxury and sophistication We will host two events in New York and Florida beginning in January At the event we will offer special jetBlue promotions and giveaways to create a positive brand image in the minds of our consumers
SWOT Analysis
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Appendix B
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Appendix C
www.wikiinvest.com/jetblue www.jetblue.com http://www.strategicbusinessinsights.com/vals/presurvey.shtml http://www.people.com/people/static/mediakit/main.html http://www.people.com/people/static/mediakit/pdfs/demographics/audience/ audience_profiles_women.pdf http://www.instyle.com/instyle/static/advertising/mediakit/instyle/mri.html http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle&ID=1482885&highlight= http://www.mullen.com/2010/10/you-above-all-mullens-first-for-jetblue/ http://www.quickmba.com/marketing/product/lifecycle/
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