Southwest Marketing Strategy Essay -- essays research papers

southwestern Airlines is the labor leader in low cost crinkle farawaye. They began its operation in 1971 with trio Texas based routes and began interstate routes in 1978. When sou-west entered the market in 1971 they diligent a market penetration pricing approach. They sine qua noned to provide the better(p) servicing for the lowest possible price. They saw that if they cut out veritable unnecessary benefits they could lower their ticket price to a level far below that of the contention. They do not have in flight movies, meals, or first class sections. This strategy has been actually cost effective and southwestward passes the nest egg on to the node. They chose to focus on pleasure travelers and low-income travelers opposed to melodic line travelers. This allowed them to take expediency of a market, which was often ignored by otherwise airlines. Southwest is not concerned with the prices of other airlines. They do not follow in pricing to meet competition, or pric ing below competition. chief executive officer Herb Kelleher stated, Were not competing with other airlines. Were competing with ground transportation. This school of thought has led them to be very successful because they atomic number 18 priced below the competition, entirely dont raise their prices when the competition does.Cost controlling is very important in the airline industry. Southwest is very good at controlling their be. They offer a no frills service for people who want to get to their destination for as little as possible, and argon not concerned about the bells and whistles like in-flight movies. Southwest besides realized that when their planes are on the ground, they arent making money. They decided to wait their planes in the air as much as possible and have worked hard to keep a low turnaround time. They manage to unload passengers and load raw passengers for the next flight within twenty minutes, which is shorter than the industry average. Southwest also uses only one kind of plane, the Boeing 737, in order to reduce costs of parts and training employees to use different types of planes. All of these methods have take down the cost of operations for Southwest and allowed them to have a profit of $4.7 billion, which is doubly that of United Airlines. And because they are so efficient they can pass the savings on to customers. There is no first class at Southwest and therefore all the customers are treated the resembling. They all receive the same level of atte... ...ly buy Southwests two-a-penny tickets. College students also arent concerned about in-flight movies, meals, or other perks. Southwest would crush the competition in that route and make a large profit. Even families sledding on vacation would fly Southwest Airlines to Mexico. It is cheaper than other major airlines and it is a respected airline, unlike some no name airlines that run flights to Mexico. advert would be best done on television because America has begi n lazy and watches too much TV. They should advertise their great customer service by having customer testimonials and pictures of smiling customers and employees. They should also advertise during family oriented shows, because they are a form of inexpensive travel that a family could take advantage of. In conclusion, I feel that Southwest has taken advantage of its inexpensive flights and family oriented atmosphere to prevail despite the September 11th tragedy. Southwest has been a profitable business for 26 consecutive years and has double the profits of United Airlines. They have been doing a great job providing customer service and will continue to be successful as long as they continue with their current plan.