A Paper Submitted in Partial Fulfillment of the Requirements for
Essentials of Marketing Management
Cal Poly Pomona University
Fiorello B. Abenes, Ph.D.
Table of Contents
Company History 6
Regulatory Environment 7
Company Product 9
Target Market 9
Market Segment 9
Competitors and Competition 11
Product and Pricing 12
Product Positioning 12
Market Positioning Strategies 12
Marketing Strategies 14
Pricing Strategies 15
Distribution and Promotion 17
Product Distribution Strategies 17
Promotion Strategies: Marketing Mix 19
Frequent Flyer Awards 20
Television Sports Advertising 22
Public Relations 24
E-Commerce Promotion 28
Internal Marketing 30
Reference List 37
I chose to study the marketing strategies of Southwest Airlines (SWA) for this paper because I believe it is the best managed airline in the United States, if not the world. As a business student, stockbroker, and investor, I try to find companies in beleaguered industries that manage to do well in comparison to its competitors. By doing this, I hope to find business paradigms that help me in my MBA studies as well as find profitable investment opportunities for my clients.
During the months following the terrorist attacks of September 11, virtually every major U.S. air carrier has downsized, laid-off workers, grounded aircraft, and disrupted air service. Southwest, in contrast, has steadily grown: no employees have been furloughed and not a single aircraft was grounded (Southwest Airlines 2002 Annual Report). How did Southwest manage to eke out a profit while its competitors drowned in red ink? One would say it pared down its operating costs that were already the lowest among major airlines (Lim, et al, 2003); but it was more than that. It responded to the tragedy and convinced a petrified... [continues]
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