Air Transport World. Advertising is always cheap since it uses mass media to reach customers and also it can use visual and emotional devices to increase persuasiveness of the message to targeted people. On the other hand, leisure travelers prefer low pricing, on time arrivals and of course no additional fees.
Price administration refers to attaching basic prices to particular sales situations like special sales, location of the service or position held by distribution members. It refers to how the four Ps of marketing i.
Distribution channels have become extremely important to the success of the airline industry. Fifty per cent of its revenue is generated through online booking. When Southwest successfully is the market leader in a low priced route, other airlines drop fares to match in order to remain competitive.
Southwest airlines do not offer meals but only beverages and snacks. Southwest has been operating on the profit margin for over thirty years. A southwest airline carries the most passengers in U. Many cities have requested southwest airline to start operation in their areas due to the good services they offer.
Strong management is another tactic employed by the southwest airline to remain on top of its competitors. Southwest might as well fill its empty seats with low fares, the seat flies whether full or empty and Southwest tries to garner revenue by filling the seat at the lowest.
Its management has avoided practices that could raise costs or complicated the normal travelling process. I will cover the four Ps of marketing used by the Southwest Airlines in its operations i.
This save southwest maintenance costs in terms of spare-parts inventories and training mechanics. However, when it fails another company will take over. While Southwest Airlines has increased their global distribution system network in recent years, there are still areas of improvement.
Sabre, Galileo and Worldspan were actually once owned by the major airlines as a means to gain share in the travel agency marketplace Grossman, If a company offers low priced services, advertising is used to compensate the difference by ensuring more sales are achieved and hence bigger profits accrued.
Upper Saddle River, NJ: This worked well for the southwest in that those who visited the site were turned to be buyers. Management positions are lean but productive where top management of southwest generated ten times more profit than their counterparts from other network carriers Brancatelli, Continually cycling planes through the route of carefully selected, high profit cities and using smaller less crowded airports within these cities when possible has not only contributed to its pricing success but has won the loyalty of leisure travelers who are not on a schedule and are not required to be highly productive during the airplane ride.
Southwest features in the magazines as the most preferred company and also among the best companies to work for. Lastly, there will be a conclusion of the paper which looks into the future of the southwest airline and challenges its facing.
In addition, the leisure traveler is less likely to mind being flown to a smaller airport farther outside of the destination city than a business traveler is.
It uses the following tactics to remain on top of the market; one plane fits all where southwest airlines uses only one type of aircraft i. Other similar companies are working very hard to place first in the annual performance but Southwest Airline is the only airline to, ever hold the triple crown for its good annual performance.Read Southwest Airlines Marketing Strategy free essay and over 88, other research documents.
Southwest Airlines Marketing Strategy.
Case Study Southwest Airlines 1) What has been Southwest's traditional pricing strategy? Why has this pricing strategy been so /5(1).
Air Southwest founded in by Rollin King and Herbert Kelleher, and in the beginning the company incorporated to cater three Texas cities but later in the company change its name to Southwest Airlines when their first flights launch.
Free Essay: Distribution Strategy WS5A4 Southwest Airlines - Case Study Operating under an intensely competitive environment, Southwest Airlines carefully. While Southwest airline, as pioneer in the airlines industry should seek effortful to exploit opportunities and develop various strategies that are complex and not easy to mimicry by rivals.
The new leader of Southwest should promote and encourage personnel by adapting various framework and models that appears the in management filed. View Essay - Southwest Airlines Distribution Strategy from HEALTH P1 at King's College London.
Running head: SOUTHWEST AIRLINES DISTRIBUTION STRATEGY Southwest Airlines Distribution Strategy Students. Southwest Airlines essays Southwest Airlines took off in (then called Air Southwest Company) by businessman Rollin King and Texas lawyer Herb Kelleher, servicing Dallas, Houston, and San Antonio Texas with frequent, low-priced flights.
What began as a small Texas airline has grown to become on.Download