Week 7 Case Analysis Study Example | Topics and Well Written Essays - 750 words

Week 7 Analysis - Case Study Example The company instituted a policy that allowed its customers to check-in two bags free of charge. Most airlines in the industry charge their customers $15 to $25 per bag. The strategy has been very effective because during recessionary times customers are looking for ways to save. Transportation – Southwest Airlines operates in an industry in which overhead costs are very high. The company might be foregoing a lot of income by not charging its customers money for transporting their bags. Integrated Marketing – The company is using an integrated marketing campaign in which the firm is attempting to steal market share from other companies by promoting its free bag policy. The organization might have made a mistake within its strategy by becoming the first airline in the industry to charge for carry-on bags to highlight the benefits of free bag handling. Promotional Mix – The firm’s promotional mix has been effective, but the company might not be focusing on other revenues opportunities such as increasing the amount of business flyers that utilize the firm’s services. Target market – The marketing strategy of the company is targeting flyers that are looking for a bargain price. The firm’s strategy is not focusing enough on obtaining recurrent flyers. Based on Pareto’s 80-20 rule 80% of a firm’s business comes from 20% of its customers (Starak). Public relations – The public relations campaigns of the company focus a lot on how fun it is to fly with the company. The firm might be better off by illustrating to its customers how much more value the firm offers through its combination of lower prices and free bag handling. Value based purchasing brings together information about the quality of the product or service (Ahrq). The case study is a good illustration of how companies can take advantage of recessionary times to increase their market share. Often people believe that during a recession all businesses have