Southwest Airlines Mobile Marketing Analysis

SOUTHWEST AIRLINES MOBILE MARKETING ANALYSIS 

Joe Louis Burroughs

MKT651

Dr. Mary-Beth McCabe

March 9, 2017

Southwest Airlines Mobile Marketing Analysis

Imagine getting off of a long trip cross country waiting on your final flight to home.  There is a 2 hour lay-over and you decide to post a negative comment to a national brand’s facebook page from your mobile device that expresses a not so pleasant flying experience.  Surprisingly, the national brand actual responds with a positive commentary while apologetic about the experience.  This is Southwest Airlines (SWA).  Kevin Krone Vice President and Chief Marketing Officer of Southwest Airlines implemented the “Transfarency Campaign.”  Transfarency is a SWA philosophy exported through a marketing campaign using various channels such as national advertising, print, social media and mobile media landscapes with a unique approach to “treating Customers the way they expect and deserve to be treated (Krone, 2015).”  The core of SWA Brand Communication Strategy is to tell a completely consistent well rounded story of their value to the customer.  Krone tells Boardroom Insider Inc:

This story will only work if it is based on the Customer Experience. So really, the most important thing is to have a great product and experience that drives loyalty. Then, the communication's job is to bring that story to life in an engaging and emotions way that brings in Customers.  Standing out, the way the Southwest Heart does, from a sea of sameness is also immensely important. With more than 20 years at Southwest Airlines I believe we do this better than any other airline.

The Marketing Engine Distributing the Transfarency Campaign

 Mobile engagement by SWA’s customers using pull techniques has experienced positive increase in “mobile adoption” by customers.  This is a major investment for SWA.  How does SWA build a mobile-only mailing list?  Organically, this starts from a database of current clients via an email list of opted-in users allowing them to receive weekly messages through mobile devices.  SWA constantly pulls clients using mobile ads through Pandora and Draw with Friends APPSs.  Other touch points include social media engagement with banners that encourage them exclusive treatment if customers get the emails via “Click ‘N Save.”  Other touch points within the mobile space include landing pages, twitter tweets, and Facebook, QR codes for checking-in at the gate and SWA’s loyalty program “Rapid Rewards.”  In fact, SWA signed a multiyear marketing alliance agreement with the National Rental Car Brand Avis Budget Group for advertisement on SWA website as well as merchandising placement throughout the airline reservation process.  SWA has made it easy for converted mobile users to stay within the mobile environment.  

How to Compete with a Domestic Giant

As a competitor in the market place I would not compete with SWA in the traditional sense.  I would adopt a “Blue Ocean Strategy” that makes competing null and void.  The Blue Ocean Strategy as described by W. Chan Kim and Renée Mauborgne avoids competing in overcrowded industries like the Airlines covered in a “Bloody Red Ocean” of competition resulting in a shrinking profit pool.  Instead, the strategy seeks out “Blue Oceans” of untapped new market spaces ripe for growth.  I would create an Airline Carrier out of an existing fleet of private jets whose underutilized flight hours are leased by my Company.  Using a combination of marketing channels, I would build on a mobile first strategy creating campaigns for APP downloads, SMS, MMS and Bluetooth technology targeting Domestic Corporate accounts, and National Collegiate Athletic Association (NCAA) Division I & II, III Collegiate travel contracts.  “Winning Teams and Winning Businesses” would be a marketing mantra. The mobile first strategy will focus on the customer by removing and reducing wait times in security lines, layovers, excess baggage charges, lost bags, and include food for the price of an average coach seat.  Furthermore, Businesses and Colleges would experience reduced cost in their travel budgets through pre-planning with me. Excess flight hours not consumed by contracts would be managed by an APP and would segment customers who are last minute travelers, sports enthusiast, travelers of missed flights, and other transportation abnormalities that may arise, that is a type of Uber effect for flying.   “Missed Your Flight or Engine Trouble, Click here for flight availability.”   I would further create alliances with National Rental Car Companies, Hotels, and Cruise liners creating other touch points within the mobile framework.  With performance metrics that will lead to revenue (seats filled), competition with SWA would be rendered irrelevant.