Frontier airlines marketing utilizes the 4Ps within the constraints that were listed in the module slides. The product, for all intents and purposes, is the seat, in motion from one place to another. If that seat goes unfilled, it is not stored for later use, but goes bad, like fruit. This is a similar issue of production that hotels face. The unit is constantly produced and expiring, with no option not to produce it if it will not be sold (with the exception of scaling back service on, or closing, a route. Additionally, it is a consumer based product, so frontier needs to be sensitive to the desires of the customer, because there are many choices when flying into and out of Denver. Growing up in Denver, I remember feeling that Frontier was Colorado's airline. This was very much to do with the companies marketing strategy. The branding of the airline is "A whole different animal" and the company began painting pictures of wildlife on the vertical stabilizers of thier aircraft, each one unique. In some cases, they would promote new routes. For example, when the airline began flights to florida and the carribean, they painted a dolphin onto the tail. These commercials consisted mainly of dry, witty banter between the different animals as the aircraft sat at the terminal onloading passengers. It was certainly a break from the legacy airline pitches, which showed planes flying at sunset and were still glamorizing the luxury and comfort of travel. Frontier knew that its target market were people who lived in and around Denver who needed to get to surrounding, middle america, locations. Locations which were being more and more underserviced as time went on (the irony being that frontier has dropped the majority of its or... ... middle of paper ... .... (2012). USPS vs. UPS vs. FedEx: Who’s cheapest? Saving With 6abc. Retrieved Nov 11, 2013, from http://abclocal.go.com/wpvi/story?id=8916342 May, M. (2012). The Famous FedEx Logo, And Why It Works. The Laws of Subtraction. McGraw-Hill. Retrieved Nov 13, from http://www.fastcodesign.com/1671067/the-story-behind-the-famous-fedex-logo-and-why-it-works Schrager, M. (2012). Why FedEx’s Marketing Efforts are the Perfect Package. Business Marketing Association, Chicago. Retrieved Nov 12, 2013, from http://bmachicago.org/events/why-fedex%E2%80%99s-marketing-efforts-are-perfect-package Wathen, J. (2013). FedEx or UPS: A Rivalry Worthy of Your Attention. The Motley Fool. Retrieved Nov 13, 2013, from http://beta.fool.com/valuemagnet/2013/07/15/fedex-or-ups-a-rivalry-worthy-of-your-attention Wensveen, J.G. (2011). Air Transportation. (7th Edition). Burlington, VT: Ashgate.
Restructuring the U.S. Postal Service to achieve sustainable financial viability. (2009, July). Retrieved January 17, 2010, from http://www.gao.gov/new.items/d09937sp.pdf
The amount of letters commissioned in America has been steadily decreasing on a daily basis. The majority of citizens are now sending their letters via e-mail or other methods of technology. Postal service companies such as USPS are struggling to keep business thriving. To compete with the technological advances in modern America, USPS should restructure their postal systems by terminating unessential delivery days and strategically limiting postal branches in order to conserve government money.
In Conclusion, What is next for the shipping giant of UPS? In just 25 years UPS airlines has grown to be the second largest Cargo Airline in the world. Time will only tell what is next for the global shipping giant. “What can Brown do for you?”
The airline industry not only transports passengers across the country and world but it also moves cargo from location to location. The largest segment for the airlines is general commercial passengers and business travelers. In 2004, there were 15 major airlines with 12 of those being mainly passenger carriers, the remaining three being cargo carriers. In addition to the large airlines (Delta, United, American, Southwest, Northwest), there are numerous low-cost regional carriers that have tapped into the larger carriers’ customer base. These smaller companies generally fly from smaller airports and serve a smaller amount of destination cities. Calling them a no-frills air carrier would not be far from the truth. Their goal is to move customers f...
Southwest Airlines founder Herb Kelleher studied other airlines to try and figure out what culture he wanted to bring to Southwest Airlines. Herb Kelleher and President Lamar Muse ended up using a model copied almost word for word from an airline out of California called Pacific Southwest Airlines. (Southwest Airlines, n.d.) Pacific Southwest Airlines (PSA) motto was pretty simple as they wanted to also be known as the “The World’s Friendliest Airline” You could tell PSA wanted to be the friendliest airline by the big smiley face that was on the front of each of the companies Boeing 727 airplanes. (Pacific Southwest Airlines, n.d.) Kelleher and Muse saw the success that the culture brought to PSA and they wanted to bring that success to Southwest Airlines. Muse later confessed that creating the operations manual for Southwest Airlines was pr...
As Frontier approached its 10th year of operation, Frontier officials realized an image shift was in order. The airline had established a reputation for friendly and reliable service, and reasonable airfares, mainly appealing to leisure travelers. But they reali...
The product one airline can offer is the same exact product the next airline can offer, a single available seat mile (ASM) for sale. The difference between the airlines lies in the marketing, routing, pricing, executive decision-making, and the operating strategies that each airline chooses to espouse regarding that one product. It is through these strategies that an airline must find productivity in total revenue passenger miles (RPM) flown to be profitable. When the ASM is filled with a fare-paying passenger, sales or income is recognized, and it converts to an RPM. The relationship between the ASM and RPM are directly related and is expressed in percentages known as Load Factors (LF). This LF is a management tool used to determine the efficiency and health of the airline. It is necessary to keep these two variables in balance of each other. Southwest Airlines load factors are represented in Figure 1 and 2.
In 2008 the public found out about Southwest missing required safety inspections, while still flying planes that needed to be inspected (Thompson, et al., 2012). CEO Gary Kelly was quick to publicly apologize for both incidents and reaffirmed the company’s obligation to safety. Looking at comparative statistics in 2010, denied boarding’s due to oversold flights have went up from 1.42 in 2009 to 2.59 in 2010, which puts them at the 3rd worst in the industry (Thompson, et al., 2012). This is also 3.5 times higher than it was in 2005. If maintaining customer satisfaction is their top priority, this needs to be tackled. Another weakness reported in a Southwest SWOT analysis includes contractual obligations which were $2,510 million in FY2014, compared to $1,208 million in FY2010 (Liu, 2012). Even with these statistics, there is still plenty of room for opportunity with the recovery of the U.S. airline industry, recovery of tourism, acquisition of Air Tran, expansion into the International market and improved customer satisfaction (Liu, 2012).
The United States Postal Service is a reliable, excellent, and efficient delivery service. Overall customer rating of any business makes it a profitable and reliable industry. The post office has met these expectations and has gone above and beyond to serve their customers. This delivery service and its employees contribute in many ways to citizens across the nation. They are the best shipping industry in the United States.
Southwest Airlines strategy of focusing on short haul passenger and providing rates as low as one third of their competitors, they have seen tremendous growth in the last decade. Market share for top city pairs on Southwest's schedule has reached 80% to 85%. Maintaining the largest fleet of 737's in the world and utilizing point-to-point versus the hub-and-spoke method of connection philosophy allowed Southwest to provide their service to more people at a lower cost. By putting the employee first, Southwest has found the key to success in the airline business. A happy worker is a more productive one as well as a better service provider. Southwest will continue to reserve their growth in the future by entering select markets only after careful market research.
The airline industry has become more and more competitive over the years. It takes determination, preparation, knowledge, and recourses to start an airline company, and that is just what happened forty-five years ago in Dallas Texas. Southwest Airline is a very successful airline company serving around 100 million customers annually (Southwest Corporate Fact Sheet). Many things stick out about Southwest such as their satellite-based WIFI and free luggage. These accommodations appeal to the customers. The company describes its mission as “dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit” (About Southwest). From a customer standpoint, there is nothing else
Using high level aircraft and employee productivity with minimizing cost by reducing aircraft turnaround time at the gate, Southwest was able to generate an operating revenue of 17.7 billion dollars and an average passenger load of 80.1 percent (Southwest, 2014). A major contributor to the airline’s success is fuel hedging. Fuel hedging is a contractual tool used to mitigate rising fuel costs. Fuel hedging allows Southwest to establish a fixed or capped cost, via a commodity swap or option. When buying a fuel swap, if the price of fuel drops, then the company will be forced to pay the above market rate. When purchasing a fuel call option and the price increases, the company will receive a return that offsets their actual costs. Some fuel call options require an upfront cost. In the previous scenario, if the cost of fuel decreases the company will not receive a return on the option, but will benefit from buying fuel at the lower cost. Southwest Airlines has leveraged this technique and in doing so avoids high fuel costs; drastically important to a company whose annual fuel consumption in 2012 topped approximately 1.9 Billion gallons (Southwest,
Business depends very critically upon Fed Ex. If Fed Ex had a major disruption to their delivery system, flowers would not be delivered on time, resulting in dissatisfied customers. For example, if Fed Ex employees went on strike, there would be no alternative equivalent to Fed Ex to deliver flowers to customers. UPS, although an alternative, did not deliver perishable products in the same timely fashion as Fed Ex.
The Competitive Forces are: The biggest competitor is Fed Ex, and they cannot compare. UPS did 2.5 times the volume through its sophisticated delivery machine.
First, the U.S. Postal faces the decreasing of business by the e-mail revolution and online bill-paying. In order to understand the structure of the U.S. Postal Service, we must begin with conceive the method of operations. Carbaugh (2006) mentions that U.S Postage rates vary widely and depends on the mail’s content, weight, size, destination, and how it is prepared and presented by mailer to the U.S. Postal Service. He provides that mail is organized into grouping called classes. There are four main classification of mail consists by following: