Southwest AirlinesMarketing Case Study. Marketing expertise also plays a key role in Southwest's strategy. Since Southwest's inception, the core elements of its product offerings have been price, convenience and service. Being originally from Texas and primarily serving Texas markets, he played the role of the hometown underdog, battling against the majors. Now, when Southwest enters a new market, it uses a sophisticated combination of advertising, public relations, and promotion in the belief that once people fly Southwest they will be hooked. Growth. Despite its remarkable growth in what had until recently been a relatively moribund industry, Southwest has not emphasized growth as a goal. Indeed, Herb Kelleher expresses a "go slow" philosophy. For example, Southwest will not enter markets unless it perceives favorable conditions, ranging from the desires of the local community to the availability of adequate labor supply. Given its record of success and reputation, it's no surprise that there are many communities that want Southwest to serve their markets. After all, good air service is considered by most communities to be an essential aspect of economic development. However, Southwest's policy prohibits accepting monetary subsidies or other incentives offered by cities and airports to obtain air service. Southwest has also demonstrated a remarkable ability to manage its growth, an essential asset in an industry known for its complexity. The inability to handle rapid growth has been blamed for the failure of many carriers, including Braniff, PeopleExpress and ValuJetTechnology. Like all airlines, Southwest uses computer technology heavily. This technology supports all businesses… at the heart of the paper… the world is changing, people are traveling again and with improving opportunities, they are seeking and seizing opportunities while other airlines struggle to be simply as profitable as flight costs fuel increases and fares decrease. Kelly also faces significant threats: Budget airlines JetBlue and AirTran Airlines are also looking to expand into the same markets. To do so, it demands greater productivity from already effective employees and asks pilots to fly up to 70 hours a week for less money than they could earn with other carriers. Kelly's strategy to connect with ATA stunned the market and industry Entering 2005, Southwest found itself facing many familiar challenges: rising oil prices, intense competition, complex regulations. In the uncertain times that left legacy (traditional) carriers reeling, Southwest was still flying ahead with its ever-popular low-cost formula
tags