Product Positioning: Operating under an intensely competitive environment, Southwest Airlines carefully projects its image so customers can

differentiate its product from its competitors. Southwest positions itself in all its marketing communications as THE only low-fare, short-haul, highfrequency, point-to-point carrier in America that is fun to fly. Its low-priced fares are a brand equity which it "owns" in the mathematical sense of being the only major airline with a strong score on this attribute based on consumer research (Barlow, 2002). Southwests brand exudes an element of fun: a down-home attitude which it leverages to present the consequences of low fares in a positive light. "Dignify" might not be the first word one would think of to describe how Southwest treats passengers: no first class; no food other than peanuts; no assigned seats; no transfers of luggage to other airlines (Teitelbaum, 1992). Southwests in-flight service has, in fact, become pejoratively synonymous with peanuts; but the payoff in savings is huge. While the average cost of serving meals per passenger in the industry is about $5, Southwests average cost per passenger is only 20 cents (Rose, 1999).

Market Positioning Strategies: To successfully secure its market position, Southwest needs to be extremely cost-efficient. Southwest has a well defined business model that uses single aircraft type, short-hauls, secondary airports, point-to-point versus hub-and-spoke to keep its costs down. Southwest tries hard to differentiate itself by doing seemingly weird things. For example, not assigning seats in its flights helps to reinforce its image that it gets passengers to their destinations when they want to get there, on time, at the lowest possible fares. By not assigning seats, Southwest can turn the airplanes quicker at the gate. If an airplane can be turned quicker, more routes can be flown each day. That generates more revenue, so that Southwest can offer lower fares.

Marketing Strategies: Southwest offers a travel product that is built around flights targeted to specific demographics and ticket pricing that is simplified so that passengers know exactly what they are getting for what they pay. Its ugly Boeing 737 planes that provide pared-down utilitarian service, often likened to cattle cars, is exactly what one would expect for the price that is paid. This is in stark

contrast to flights geared for business travelers and other passengers who are used to being pampered, paying full price but ending up disappointed in the end.

Building Brand Loyalty: Airports and airplanes traditionally have a love-hate relationship with the public. Along with noise pollution generated by aircraft, there are also traffic problems and urban sprawl that airports bring to communities. Whenever there is talk of airport expansion, people raise up their arms in protest: NIMBY! Unless, it is Southwest Airlines that is coming to town.

What is the Southwest Effect? Once Southwest Airlines enters a certain market, air fares go down, tourist traffic increases and an economic mini-boom ensues (Meyer, 2000; Messina, 2001). So real is this effect that even competitors say it is a good thing (Pounds and Weil, 2001). How many airline companies get petitioned by residents and politicians every 90 days with pleas to come to their city? This happens with Southwest Airlines all the time. When SWA enters their market, even hick towns like Buffalo, Hartford, Ontario and Oakland become tourist destinations and in turn, the residents of these cities become frequent travelers to mainstream tourist destinations like Las Vegas, San Diego and Florida. Pricing Strategies: With a clear customer target, SWAs pricing strategy is to charge the lowest possible fare that still enables the airline to make a profit. This reflects its decision to compete not only with airlines, but with all other forms of transportation, including automobiles (it is cheaper to fly than drive). When SWA enters a new market with fares that undercut prevailing rates by 50% or more, traffic explodes, and Southwest nabs many customers who might have driven before (Zellner, 2001). For example, before opening the route, somewhere around 8,000 people used to fly between Louisville and Chicago weekly; since Southwest entered the market, about 26,000 do. Similarly explosive growth took place after SWA introduced a $49 fare on a St. Louis-Kansas City route that TWA had been flying for $250.

When major airlines like American Airlines, Delta Airlines, Northwest Airlines, TWA, United Airlines, and U.S. Air tried to match Southwests cut-rate fares, they could not do so without incurring substantial losses. It is estimated that major U.S. carriers would have to cut their costs by 29% to function at operations level of Southwest Airlines (McCartney, 2002). Clearly, by having the lowest operating costs among the major airlines, Southwest can profitably offer low fares where others cannot.

Product Distribution Strategies: Unlike other airlines, SWA does not rely on travel agents to distribute their products. Travel bookings on Southwest Airlines are done primarily through direct marketing: by phone and the Internet (Miller, 1999), without a middleman. Southwest also does not interline or offer joint fares with other airlines, nor does it have any commuter feeder relationships.

Southwest employs a relatively simple fare structure, featuring low, unrestricted, unlimited, everyday coach fares as well as even lower fares available on a restricted basis. In January 1995, Southwest became the first major airline to introduce a Ticketless Travel option, eliminating the need to print and process a paper ticket altogether (Harrison, 1999). This innovation was born out of necessity after it was tossed out of three computer reservation systems (United, Continental and Deltas, as these airlines felt threatened by Southwests competitiveness). This innovation allows customers to completely bypass the computer reservation systems of major airlines by obtaining a confirmation number and showing up for the flight (Freiberg and Freiberg, 1997). Customers loved the idea and the paperwork was reduced tremendously therefore, saving money. This practice is now pervasive in the industry, due to its cost savings ability. Currently, if a customer wants a printed ticket, there is usually a surcharge of $20; and if a passenger uses a travel agent, there is an additional $25 service fee.

Promotion Strategies: Marketing Mix - For Southwest Airlines, promotion starts with the insightful understanding of customer benefits and how to translate those benefits into meaningful products and services. Southwest pays close attention to consumer insights and to brand building,

and that devotion contributes significantly to the value of the brand. In both print and television, SWA continues to employ the most basic form of price competition by running ads that encourage people to visit their website for the best online deals (Rewick, 2001).

For example, Southwest Airlines approach to frequent flyer rewards is based on number of trips taken; in contrast, other airlines reward people based on miles flown (Southwest Airlines Annual Report, 2002). Quite ironically, a much bigger airline, United Airlines, has become a copy cat with their new frequent flyer program, three trips and the fourth is free. If imitation is the sincerest form of flattery, then Southwest should indeed feel flattered. Southwests marketing and advertising goal is to be very clear in their low-fare message but at the same time create and reinforce the companys nutty image (Freiberg and Freiberg, 1997). Southwest attempts to do three things in their advertising: intrigue, entertain and persuade. Southwest encourages employees to dress casually at work. Southwest wants to portray their employees as professional but don not take themselves too seriously. Ad designers try to inject fun and personality in designing SWA ads, giving the target customers a taste for what the Southwest Airlines are going to give them when they get on the plane (cheap but fun!). Companies can learn from Southwests Marketing Strategies to refine their product and pricing, distribution and promotion strategies to strengthen competitive positioning, even when competition tries to copy and/or presented an overly enticing offer to lure loyal customers. The Southwest benchmarking will help Companies to design and implement strategies to future customer relationships, build community support, reduce operating overheads, and to improve profitability. References: Abenes, F, B. Marketing Study Of SOUTHWEST AIRLINES. Cite this as: YouSigma. (2008). "Southwest Airlines Marketing Strategies." From http://www.yousigma.com. http://yousigma.com/benchmarking/southwestairlinesmarketingstrategy.html

JetBlue Launches New Advertising and Marketing Campaign: You Above All(TM)
- JetBlue renews its brand promise of putting people first as it enters its second decade of service - Hidden camera 'Ground Rules' videos to hit YouTube on Friday - New advertising goes into the market this week NEW YORK, Oct 14, 2010 /PRNewswire via COMTEX/ -JetBlue Airways (Nasdaq: JBLU), the airline that revolutionized the industry when it took to the skies 10 years ago, on Friday will debut a new marketing campaign designed to position the iconic brand as a continued leader well into its second decade of operations. The campaign features the introduction of a newly articulated JetBlue brand promise - You Above All - a restatement of JetBlue's commitment to putting people first that was founded on the company's original and ongoing mission to bring humanity back to air travel. (Logo: http://photos.prnewswire.com/prnh/20090217/NY71475LOGO-b ) (Logo: http://www.newscom.com/cgi-bin/prnh/20090217/NY71475LOGO-b ) You Above All is designed to shine a light on the airline's key competitive differences and to celebrate its crewmembers' long-standing efforts to provide a superior travel experience - an experience that has been lauded as JetBlue has grown, over the past ten years, from its New York roots to now serve 61 cities in 12 countries throughout the Americas. "In so many ways, this exciting new marketing campaign speaks to the core of who we are as a brand," said Marty St. George, senior vice president of marketing and commercial strategy at JetBlue. " You Above All is authentic. It's transparent. It's understandable. Quite simply, it's very JetBlue. As we move into our second decade of service, You Above All underscores our commitment to always put people first, to bring humanity back to air travel. That's a message we can all relate to, whether we take to the skies once a year or once a week." The campaign, the first that JetBlue has developed in partnership with its new advertising and media agency-of-record Mullen, features a comprehensive mix of media including online, social media, in-flight, print, and out-of-home components. The online portion features a series of hidden camera scenarios called Ground Rules. The unscripted videos point out the shortcomings of much of the airline industry by bringing other airlines' service policies and procedures to light on the ground. They feature real people in real situations being deprived of things they've come to expect, such as legroom in a taxi, a full can of soda from a street vendor and free luggage storage in the trunk of a taxi. The videos will debut in a YouTube homepage takeover on Friday. You Above All creative uses a colorful, modern, simple illustration style to depict travelers, the airline's key product and service offerings, and its destinations. A key element of the creative is what the airline has dubbed "I-People," a visual representation of the brand's focus on humanity, that are used to create a flexible, identifiable look that is significantly different from other carriers. In a first for JetBlue, the airline will also take advantage of so-called "Monster Media" technology in Boston, Los Angeles and New York. These interactive billboards respond to the motion of consumers passing by them, to create an animated experience which literally places consumers in the airline's advertising. The campaign includes a series of call-outs explaining JetBlue's superior service offering, including the following lines:

"Overpack. Underpay. First bag flies for free." (a) "Mix business with legroom. The most legroom in coach." (b) "Room. With a view. The most legroom in coach and free DIRECTV(R)." (c) "Someone has to stand-up for tall people. The most legroom in coach." "Our standards beat their extras. Unlimited brand-name snacks and soft drinks."

You can view and download examples of the creative on the following site: http://work.mullen.com/clients/jetblue/ "In the highly commoditized airline category JetBlue is the rare brand with a true commitment to customer service and delivering a positive flying experience," said Alex Leikikh, Managing Partner and Director of Account Service at Mullen. " You Above All is more than a tagline, it's JetBlue'spromise to customers and a mantra crewmembers can rally around for the next 10+ years." About JetBlue Airways Voted "Most Eco-Friendly Airline" by Zagat's Airline Survey in 2008 and 2009, New York-based JetBlue Airways has created a new

airline category based on value, service and style. In 2010, the carrier also ranked "Highest in Customer Satisfaction Among Low-Cost Carriers in North America" by J.D. Power and Associates, a customer satisfaction recognition received for the sixth year in a row. Known for its award-winning service and free TV as much as its low fares, JetBlue offers the most legroom in coach of any U.S. airline (based on average fleet-wide seat pitch) and super-spacious Even More Legroom seats. JetBlue is also America's first and only airline to offer its own Customer Bill of Rights, with meaningful and specific compensation for customers inconvenienced by service disruptions within JetBlue's control. Visit www.jetblue.com/promise for details. JetBlue serves 61 cities with 600 daily flights. New service to Ronald Reagan Washington National Airport in Washington, DC and to Bradley International Airport in Hartford, CT begins in November. The airline also intends to serve Providenciales, Turks & Caicos Islands in February 2011. With JetBlue, all seats are assigned, all fares are one-way, and an overnight stay is never required. For information or reservations call 1-800-JET-BLUE (1-800-538-2583), TTY/TDD 1800-336-5530 or visit www.jetblue.com. (a) Baggage weight and size limits apply. (b) JetBlue offers the most legroom in coach, based on average fleet-wide seat pitch for U.S. airlines, excluding premium coach products. (c) DIRECTV and XM Satellite Radio service are not available on most flights outside the continental United States. SOURCE JetBlue Airways

http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irolnewsArticle_print&ID=1482885&highlight= JetBlue (JBLU), Online Marketing Genius: Its latest campaign on Facebook really smart and funny. The airline industry is perhaps the one of the most competitive ones and the customer loyalty is way below different industries such as automobiles or electronics, people usually search for flights on places such as orbitz.com, expedia.com or Travelocity.com and end up buying the cheapest fare no matter which airline is offering the deal. American Airlines has been able to create some king of loyalty through its AAdvantage program where people can accumulate miles and use towards a future trip, but we have to say people stick to with more for the savings than the empathy with the brand. One of these Airline companies is very different to the rest and has been able to effectively use social networks, twitter and Facebook to influence buyers and motivate positive reviews from bloggers and journalist around the globe. This company is JetBlue, a good example of how social networks and online marketing should be used by large corporations, the first success of Jetblue was in July 6th 2009 when they created the @JetBlueCheeps account in twitter and tweet a sweet promotion of $9 tickets from New York (JFK) to Massachusetts (ACK), this is the original copy of that tweet: Intro to Cheep Deals @http://tr.im/cheeps! $9 JFK to ACK o/w this Sat. 25 seats avail or til 6pm ET. Taxes, Fees & Rest. Apply. The campaign was a success and they continued doing that for all the month of July. The most recent promotion was $24 from Long Beach, California (LGB) to Oakland (OAK). The campaign not only was a big success with 48,876 followers and 1,276 lists in twitter but also created a lot of buzz and free press from bloggers and between web users all over the internet. Most recently in New York JetBlue came up with another really clever ad campaign called The Flyers Collection, www.theflyerscollection.com featuring a series of fictional products that help give you a more JetBlue-like experience when you have to fly other airlines. The main component of the campaign was facebook but the campaign was heavily supported for other conventional advertising mediums such as 35,000 gift guides (which were distributed between frequent flyers on New York), subway ads and even a storefront at 48 9th Ave.

The holiday gift guide is, in essence, a joke, said John Amato, president of New York-based Show Media one of the fastest INC 500 companies in 2009, the advertising agency that worked with JetBlue on the sampling program. One of the gifts in the guide is a knee jockey, for instance. Its like a bra for your knees, quipped JetBlue advertising manager Kirsten Frazell. It holds your knees up so they dont have to be smashed in [by] the seat in front of you. The point here is to illustrate that JetBlue has a lot of legroom, another example is a sweater that doubles as a carry-on suitcase so you dont have to pay the extra $25 to [check in additional] bags. These products were actually exhibited on a storefront in Manhattan, located in the Meatpacking District, the store offers a parody set up of all items that are sold in the catalog. To distribute the catalogs town car drivers were chosen as the medium for distribution, the reason because 80 percent of these vehicles go to and from the airport, said Kirsten. The www.theflyerscollection.com actually point to the JetBlue The Flyers Collection page on Facebook (currently 118,179 members) where peoples interaction was heavily promoted and ideas of new items were requested to the community. These are just some ideas from the Facebook group members: Kelly Hansen how about a guy with a satellite dish strapped to his head trying to get inflight DirecTV. Maybe he could have a small flat screen TV strapped around his waist too. (sold separately of course) Nimrod PriellJan 6 Ear protectors for guarding your ears from the dirt on the re-used earphones handed out on non-JetBlue flights!The hilarious part of the campaign is when the people try to buy the products online, a beautiful pop up come up displaying the following text: Thanks for shopping at The Flyers Collection. Due to unexpected demand, this product has sold out. If youd rather just book a more confortable flight, simple Go Jetting.

The Flyer's Collection NY Subway Ad Amato said JetBlues campaign represents a shift in how companiesand their business partnersapproach marketing these days, Now, businesses in general are looking for new ways to make money, and this is the sort of project that delivers a huge net gain to all parties involved. The Flyers Collection campaign is a great example on how to engage online with the community, how to build a brand affiliation and create loyal customers, JetBlue without any doubt is changing the way marketing online should be approached by large corporations of any kind. This article has been written by Libardo Lambrano, founder of Syndikomm; an online marketing firm based in New York city and specialized in multicultural markets. Libardo Lambrano, a digital citizen of the world can be reached@llambrano http://syndikomm.com/blog/2010/01/successful-strategies-of-jetblue-in-online-marketing/