United Airlines Media Plan Lacy Bedol, Margaret Cobb, Alexia Conley, Kate Farmer, Sondra Schmidt

Executive Summary

The following Media Plan for United Airlines is an in-depth analysis of the current state of United Airlines and suggested actions they should take to further their sales and brand recognition. This plan takes into account the history of the company, past spending, competitors,

SWOT analysis and target audience analysis. Using this information, United can better spend advertising dollars to maximize their appeal amongst other airline providers.

Research for this plan was gathered using United Airline’s website, Claritas’ PRIZM segments and Mediamark Research & Intelligence, Inc. (MRI). United Airline’s website provided information about past advertising tactics, spending and company history.

Claritas’ PRIZM segments gave insight to the target audience and narrowed down specific segments of the population that needed to be targeted. MRI provided in-depth demographic and psychographic information that was essential to our determination of the target audience and media strategies.

After extensive research, the target audience for United Airlines was determined as men and women aged 35-54, who have a spouse and/or family, and travel for leisure or business. These people fell into three PRIZM population segments: Upward Bound, Fast Track

Families, and Brite Lites, Lil’ City. Knowing the specific segments of the population that United should target, further suggestions for media strategies and objectives were established. Media objectives were based off of target audience, reach, frequency and GRPs, budget, scheduling and timing, geography, creative and sales promotion. Using those objectives, strategies were put in place to achieve the objectives while maintaining a budget of $15 million within a one-year campaign, all while appealing to our previously determined target audience.

Using research to determine an accurate target audience, creating attainable and specific objectives and implementing a plan to achieve those goals will allow United to better understand their current market standings and attain better brand recognition and higher sales in the future.

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Situation Analysis

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Brand Analysis BUSINESS STRATEGY OVERVIEW

The skies have not been so friendly for today’s United Airlines. The United Airlines operates in a very competitive domestic airline strength of an airline’s brand, and an airline’s ultimate success, is a industry. Because of the intense competition facing these airlines, function of its network and capacity, its customer service and its those with the lowest costs are able to offer the lowest fares. In customer loyalty. Although for many years an industry leader, United order to compete in this industry, United Airlines has found it has recently suffered through a variety of brand-challenging events: necessary to match their competitors’ discounted fares, though it financial troubles, labor conflicts, highly-visible problems while can often negatively impact revenues.1 integrating with its merger partner, Continental Airlines and media gaffes. United operates more than 5,600 flights a day to more than 370 domestic and international locations from their hubs, domestically 1 MERGER located in: Chicago Los Angeles Cleveland Newark United Continental Holdings is the parent company of the new United Airlines. The two airlines that recently joined to create this new Denver San Francisco operation have been around since the 1930s. When the airlines Houston Washington, D.C.

merged, they retained the United name but the Continental colors, Through their impressive hub network, United Airlines serves the livery, and logo. four biggest cities in The United States. Typically, United is the dominant airline in those cities where it maintains a major hub, The Merger between United and Continental took effect on October 1, 1 giving it a strong and visible presence in many of the largest U.S. 2010, following an agreement made in May of that year. Although the markets. This is demonstrated by their success in 2011, when they combined company has incurred substantial expenses in connection carried 142 million passengers on over two million flights.5 with the Merger, the airline hopes it will ultimately strengthen the brand, as well as the competitive and financial position of the company. Where their planes do not fly directly, United is still able to serve The combined company expects to realize from “$1.0 billion to $1.2 1 their customers through their alliance with a number of other billion in net annual synergies…by 2013.” These synergies will come airlines, known as the Star Alliance. Founded in 1997, the alliance in large part from the increased options to customers resulting from the is designed to allow United to offer its customers travel options to “greater scope and scale of the network.”1 markets United does not serve directly.1

Despite the increased revenues expected, United has incurred a A significant attribute of United’s strategy is its hub and spoke significant amount of integration costs and will likely continue to incur operation. According to their 2011 Annual Report, “the hub and them for some time as the airline purchases new planes, adds staff, and spoke system allows [United] to transport passengers between a merges computer systems.2 large number of destinations with substantially more frequent service than if each route were served directly.” In addition, it As a result of the 2010 Merger, UAL Corporation became the parent allows for many flights and routes to be served with a limited company of both Continental and United and its name was changed to number of aircraft. United Continental Holdings, Inc.1 The United website has been updated to its new look which combines the United name with the Continental color scheme and globe logo.3 The combined company has chosen to retain United's theme song, George Gershwin's 1924 4 "Rhapsody in Blue," which has been in use since the mid-1970s.4

Brand Analysis

PAST ADVERTISING CAMPAIGNS

Following the merger with Continental, UAL’s advertising United has also recently begun an ad campaign to promote its loyalty

spending has increased significantly, from $44 million in 2009 to program. The ads will push the airline’s increased offerings “of low- $90 million dollars in 2010 to $142 million in 2011.1 mileage frequent-flier award tickets through its MileagePlus loyalty program.” 10 According to USA Today Travel, “the campaign will One of United Airlines’ more recent campaigns was focused include ads in and around airports as well as ads in newspapers, around the 2012 Summer Olympics. In their “Proud to Fly” magazines and related news and travel-oriented websites,” drawing campaign, United focused on their commitment and tradition of attention to their rank as “#1 in award seat availability among U.S. flying the United States’ athletes to the Olympics. The campaign global carriers.”9 featured a “Proud to Fly” challenge, which quizzed Facebook followers on their Olympics knowledge and encouraged them to 6 SUMMARY share their score with friends. They also ran a campaign centered around the 2012 Team USA. "Before They Move Us, We Move United Airlines certainly has a strong history, and a lot of potential for Them" highlighted the airline's tradition of flying Team USA growth following their recent merger with Continental Airlines. By athletes and featured the airline’s theme song, “Rhapsody In emphasizing their strengths, addressing their weaknesses, managing Blue.”7 The campaign included television, print, outdoor, and their threats, and capitalizing on their opportunities, United Airlines social media advertising in addition to airport signage in their could truly put themselves at the forefront of the domestic airline domestic hubs.6 travel industry. Through solid business practices and a strong media campaign, United Airlines could obtain a significant competitive advantage over their competitors. Other past advertising campaigns that proved successful for United include its “Come Fly the Friendly Skies” commercials, which aimed to emphasize “the modern age of air travel.”8 They’ve also run a campaign titled, “It’s Time to Fly,” focused on reaching their business travelers to showcase United’s advantages

in that category.7

It is important to note the large success United has had in the past with their commercials that emphasized emotional appeal. In addition, location of advertisements has become essential as well. One ad with the copy, “You’re going to like where we land,” was removed from Ground Zero in New York City after NBC New York reported some complaints about the ad’s placement. Although an outside vender placed this advertisement, it demonstrates the importance of monitoring media and campaign strategies, as well 9 as addressing complaints in a timely manner.

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Competitive Analysis The main competitors for United Airlines are JetBlue, Southwest Airlines, US Airways, Delta Air Lines and American Airlines. All five of these airlines have various promotions and strengths that prove to be competition for United Airlines.

JETBLUE JetBlue’s main competitive advantage is their website. Recently, they have received awards for the user- friendly features of their website and their new promotional tools (See Appendix 5). In 2011 JetBlue received awards including “Best Airline” from New Now Next Travel Awards, “Best Airline Booking Experience” from U.S. Travelers Choice and “Best Coach Class Experience” from Travel 2011 Editor’s Choice Awards and “Excellent Web Service” in 2010 from Compuware Gomez Web & Mobile Performance Awards. .(endnote) Their new slogan “You Above All” features a bold and modern font that is appealing to a younger consumer (Appendix 5). Last year JetBlue spent $13,396,535 on national advertising. (endnote) According to the provided competitive information, their advertising budget was spent on national B2B, Internet and news paper advertisements. According to the JetBlue website, their national advertising budget was spent on online, in-flight, print and out-of-home advertising, email, and YouTube and other digital commercials. They also sponsor a variety of charity- based promotions. JetBlue offers promotions based on sports teams, special interest groups and fan clubs. These offers, their frequent flyer club, TrueBlue, and user-friendly website work together to create a well-rounded customer experience. 11

SOUTHWEST AIRLINES Southwest Airlines is well known for its low prices and easy check-in process. Recently, Southwest received the Eco-Friendly Pioneer award and JD Power 2012 Customer Service Champion for performance in People, Presentation, Price, Process and Practices. On their website, Southwest makes their commitment to service and safety very clear. Southwest has over 3,400 flights a day from 97 12 airports in over 41 states and 6 international companies. Last year, Southwest Airlines spent $353,024,013 in advertising. Based on the provided airline spending data, Southwest spends its money on national TV commercials, B2B, Internet, radio and newspaper advertisements. According to the Southwest website, advertising promotions focused on in-flight, television and print advertising. Recently, Southwest has created the blog “Nuts About Southwest” which features customer reviews, photos, current company happenings and links to all other social media sites (Appendix 4). Southwest Airline’s main competitive advantages over United Airlines are its low fares and consumer service.

U.S. AIRWAYS U.S. Airways is the fifth largest airline companies in North America, with more than 3,200 flights taking place each day. In the realm of social media, U.S. Airways has a strong presence on Facebook and Twitter. This is one of their greatest strengths and competitive qualities. On Facebook, the company hosts social media campaigns, such as National Breast Cancer Awareness Month campaign that was promoted in the month of October. U.S. Airways uses their Twitter account as a form of Human Resources, responding to clients hourly (Appendix 6). U.S. Airways earned a 100 percent rating on the Human Rights Campaign of Corporate Equality Index for six consecutive years. In addition, it was also the only airline included as one of the 50 best companies to work for in the United States by LATINA Style magazine’s 50 Report for 2010 and 2011. U.S. Airways has a very similar audience to United Airlines, as 74 percent of customers are between 25 and 54 years old and 77 percent have an annual household income of $50,000 or more. U.S. Airways customers also are frequent travelers, as 93 percent have purchased travel tickets online in the last 12 months.13 6

Competitive Analysis

DELTA AIR LINES Delta Air Lines offers more than 5,000 flights a day, serving the greatest number of passengers out of all airlines in North America. By having so many customers, Delta was appropriately bestowed with multiple awards. In the last year, Delta was named “Airline of the Year” by the readers of Travel Weekly and “Top Tech-Friendly U.S. Airline” by PCWorld magazine. Last year, Delta Air Lines spent $38,587,979 on advertising. Their budget was spent on FSI Coupons, local Internet, local magazines, network TV, Spanish language cable TV, and spot radio. Delta Airlines advertised nationally, but focused the majority of its advertising budget on spot radio and local magazine advertisements. Delta Air Lines also has a strong presence on Twitter, with a few tweets each day. But instead of using this form of communication as a type of customer service, @Delta is used to promote advertising campaigns and feature articles related to traveling. Their Facebook page is used for a variety of topics—everything from promoting Delta’s eBoarding Pass for smart phones to encouraging the general public to vote on Election Day. Delta’s current slogan is “Peace of Mind, To Go” – with their website conveying the serene tone reflected in their tagline.14

AMERICAN AIRLINES American Airlines’ current advertising campaign focuses on their commitment to making the travel experience as seamless as possible. Their online efforts focus on fares, AAdvantage mileage offers, and promotions. This year, American Airlines has won the “Most Admired Airline” award from Mercado magazine and like U.S. Airways, scored perfectly on the Human Rights Campaign of Corporate Equality Index. Last year, American spent $20,340,767 on advertising. The majority of American Airlines’ advertising budget was spent on spot radio, followed by network TV then local magazines. Their advertising budget was also spent on Spanish language cable TV and local Internet. For social media efforts, American Airlines uses their Twitter to promote job openings, update weather-related flight cancellations and to introduce their new Instagram account. Their Facebook and Twitter pages 15 essentially contain the same content, but their Facebook page features more pictures.

SUMMARY

Each airline has its own strengths and weaknesses—all of which United Airlines should study and keep in mind when making decisions about marketing objectives and strategies. The key is to take note of competitors’ strengths, see how improvements can be made to United Airlines’ strategies and implement them effectively.

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Target Audience Analysis OVERVIEW UNITED AIRLINES’ TARGET AUDIENCE

Air travel was the second greatest means for leisure travel United Airlines’ target audience is made up of mainly Caucasian adults 35-54 between August 2008 and July 2009.16 It remains a form who, at minimum, graduated college and have a household income of of transportation consistently used by both leisure travelers $75,000. They are employed full-time in professional, business, or and business travelers in the U.S., with approximately 2 management occupations and mainly live in urban or suburban areas with billion trips taken for leisure and business in 2011.17 their spouse and/or family. We suggest that for the purposes of this campaign specifically, United Airlines should focus on target audience members living Between August 2008 and July 2009, approximately 42 in United hub cities and in the top six western DMAs. percent of U.S. adults reported using air travel for a leisure trip and about 48 percent of U.S. adults said they had used AGES 35-54 air travel for a business trip. 16 According to U.S. Travel Association, members of Gen X—defined as those For the purpose of this report, we took this information born between 1965 and 1980—make up about 31 percent of all leisure and aimed to define United Airlines’ target audience more travelers and 36 percent of all business travelers. 16 Young Boomers, or those specifically, both in terms of demographics and born between 1955 and 1964, comprise of 21 percent of leisure travelers and psychographics. We used data from the United Airlines 22 percent of business travelers. While these figures include all forms of website, MRI, and Claritas’ PRIZM segments to establish transportation for leisure and business trips, we expect the numbers are fairly United’s audience as a whole. Then, as discussed later, we consistent with air travel alone as well. broke it down to create a cohesive media campaign aimed at an appropriate and valuable audience. This significant proportion of travelers would be made up of adults ages 32- 57 based on the definitions of Gen X and Young Boomers. To be consistent with United Airlines’ passenger profile, MRI data, and Claritas’ PRIZM segments, we chose to define the target audience as ages 35-54, as this is also consistent with the U.S. Travel Association data and represents a demographic that is approximately 25 percent more likely to fly United Airlines.

PROFESSIONAL OCCUPATIONS

Close to 500 million business trips were logged in 2011, totaling almost $250 billion dollars in direct spending.17 Adults in professional, business or management occupations are a target for United Airlines, in part due to the huge opportunity business professionals present in terms of revenue. In addition, those in professional, business or management occupations are more than twice as likely to fly United Airlines and comprise close to 50 percent of United Airlines passengers.

We believe that those in professional occupations are also more likely to have earned a bachelor’s or graduate degree. Fifty-eight percent of United Airlines passengers have graduated with at least an undergraduate degree. In addition, those who have graduated college or more are over twice as likely to fly United Airlines. This makes the college graduate demographic an appealing target for United Airlines in combination with those in professional occupations. 8

Target Audience Analysis HHI $75,000+ PRIZM SEGMENTS

United Airlines customers are 59 percent more likely to have a Based on United Airlines’ above target audience, we used Claritas’ household income of $75,000 to $149,000 and more than 2.5 times PRIZM segments to define two primary segments and one secondary more likely to have an income of greater than $150,000.18 Leisure segment. The primary segments we suggest United Airlines target travel is often considered a luxury, and so it makes sense that those are “Upward Bound” and “Fast-Track Families.” The secondary who travel more have more discretionary income to spend. In target we recommend is “Brite Lites, Li’l City.” All are detailed addition, those in professional, business, or managerial positions are below. more likely to make higher incomes simply based on their careers. PRIMARY TARGET 1: UPWARD BOUND 20 URBAN/SUBURBAN The Upward Bound segment is similar to Brite Lites, Li’l City in their According to MRI Reporter, over 51 percent of United Airlines level of income and home ownership status. However, this group of passengers live in size A counties, which are defined as the largest adults aged 35-54 has children and very much revolves around metropolitan areas and make up 40 percent of U.S. households.19 The them. Dubbed “the home of those legendary Soccer Moms and next largest county size, B, provide homes to 30 percent of U.S. Dads,” Upward Bounds are often running around their satellite city households and 29.4 percent of United Airlines passengers live in of residence, buying children’s toys and games, shopping at Target, these metropolitan areas.19 Overall, United customers are 24 percent and taking their kids to sports practice in their SUVs. The dual, more likely to live in the largest metropolitan areas.19 For this reason, relatively high incomes in this target allows for some discretionary we have defined United Airlines’ target audience as those living in spending for leisure vacations to visit grandma for Thanksgiving or urban or suburban areas. to hit the slopes in Aspen over spring break, and thus are a strong target for United as well. HUBS & WESTERN DMAs PRIMARY TARGET 2: FAST-TRACK FAMILIES 20 United Airlines has hubs in the following major cities: Fast-Track Families are another segment of upscale income, college- Chicago Los Angeles educated professionals with families. They own their homes in Cleveland Newark smaller towns or more rural areas, but frequently travel by plane Denver San Francisco for business due to their management-level careers. These 35-54 Houston Washington, D.C. year old adults have a higher number of children and frequently buy new technologies for them. They have enough disposable In addition, to these hubs, United also operates in number of top income to be able to give their children a comfortable life, so they DMAs across the U.S. However, United passengers are 78 percent do whatever they can to do just that. more likely to live in the western United States and over 40 percent of United customers live in that region. For this reason, we encourage SECONDARY TARGET: BRITE LITES, LI’L CITY 20 United Airlines to focus their campaign on the above hubs and the following western DMAs: Members of the Brite Lites, Li’l City demographic are upper income, middle-aged couples (<55) without children. They are employed in Phoenix Salt Lake City management-level careers and for the most part own their homes in Portland San Diego slightly smaller metropolitan areas around the U.S. This group of Sacramento Seattle consumers shops at more upscale stores like Crate & Barrel and purchases the latest technologies. Since they don’t have children and We anticipate that a national campaign with significant heavy-up in have high-paying jobs, they tend to have a lot of disposable income these 14 spot markets will properly support a campaign aimed at this for leisure vacations, making them a highly desirable target for target audience and create noticeable impact in United’s sales and United Airlines. brand recognition. 9

Target Audience Analysis

MEET BOB, A UNITED AIRLINES PASSENGER

Bob Nicholson is a 42-year-old father of two boys, Robert, 15, and Since Bob and Mary love the outdoors so much, they try to limit the Edward, 11. He’s been married to his wife, Mary, for 18 years and number of hours their family spends watching TV or surfing the they live together in the home they purchased 10 years ago, right Internet. However, they do let their boys watch movies or TV shows outside of Denver. Bob works for a well-known consulting firm, on their road trips to the mountains in Mary’s Honda Pilot. The which requires him to travel fairly regularly. He began his career in Nicholsons subscribe to The Denver Post and Bob tries to take time to consulting 12 years ago, at the age of 30. He worked in business read the national and local news’ business sections each day. In development at the headquarters of a mid-sized retail company in addition, the family subscribes to several magazines including ESPN, Jacksonville, FL from the time he graduated from The University of InStyle, and Time. Colorado-Boulder with a degree in Business Administration, until his switch to consulting in 2000. Through his time in business Now, thanks to the Nicholsons’ good fortune and hard work, they development, Bob worked on getting his M.B.A. by taking evening continue to live comfortably in Denver while still having classes at The University of North Florida. opportunities for travel and recreation. They take a minimum of one trip per year to see their families in Maine and Florida. Usually, they When Bob was ready to make his career switch, he and Mary decided go to one family for Christmas and the other over the summer. In to return to Colorado, where they had met, despite the fact that their addition, the boys have the same spring break and Mary typically families lived in Florida and Maine. Denver seemed like the perfect likes to take that opportunity to go somewhere a little warmer after a place to raise a family and enjoy the activities they missed so much. long and cold winter. Since Bob travels fairly regularly for his job, Luckily, there was an opening in the consulting firm where one of he has built up a pretty significant amount of frequent flyer miles Bob’s fraternity brothers worked and Bob came highly recommended through MileagePlus and the family uses these for their vacations. by his supervisors, professors, and peers. For the past 12 years, he has worked diligently to climb the ladder and just recently became a Since the Nicholsons are veteran travelers, they’ve gotten used to the partner. hassles of airports, but they continue to be fairly frustrated by airlines’ customer service. One holiday, Mary also graduated from The University of Colorado-Boulder, but when the family was traveling to Maine earned her degree in Early Childhood Development. Her love of to see Bob’s parents, United lost Mary’s children and knack for teaching led her to pursue a career in luggage full of her clothes and some of the Elementary Education. She worked at a private school in Jacksonville, Christmas presents for her boys and FL until Robert was born. Shortly after arriving in Denver, she and Bob in-laws.This wouldn’t have been so bad found out they were pregnant again! This prevented her from getting if the customer service representatives had a job right away, but since Bob’s compensation had increased pretty been more sympathetic. As a regular significantly with his career switch, they were still able to maintain a traveler for United, Bob feels like he comfortable lifestyle for their family. When Edward turned two and should receive above-average service, started preschool at First Presbyterian Church, Mary was finally able but has had a hard time believing to get back into teaching. She began working as a first grade lead that United Airlines agrees. teacher at their neighborhood school, but when the assistant principal position opened up last year, she was the clear choice for the role.

Robert and Edward attend the local public schools, where they both have been excelling in their academics. Robert has just gotten his learner’s permit and they frequently go driving in Bob’s Honda Accord on Saturday mornings before Robert’s soccer games. Edward has a knack for music and has recently discovered his passion for the piano. Once a week, he has lessons in their home in addition to the regular 10 band practice at school.

SWOT Summary

Strengths Weaknesses

• Service to 378 airports worldwide • Negative reputation of customer service • Hubs in eight U.S. cities and two internationally • Sensationalized complaints by unhappy • Most fuel‐eficient airplane leet (when adjusted customers for cabin size)

Opportunities Threats

• United/Continental merger expanded leet, • Smaller airlines becoming viable competitors employee base and airport service • Possible United/Continental merger synergy • Use of direct sales websites allows United to issues

target customers effectively and retain customers, • Uncertainty of airplane fuel costs among other opportunities • Instability of economy both globally and within • United's loyalty program, MileagePlus, to gain the U.S. additional customers through Continental's • Southwest/AirTran merger loyalty program, OnePass • Other strong competitors in category

Key Challenge

The key challenge that United will face over the next two to five years will be successfully integrating the United and Continental brands. Whether this involves the merging of the loyalty programs, the consolidation of business plans, employee relations or re-branding initiatives, the two corporations will have to work tirelessly to successfully become one. As there are many viable competitors in the category, customers will not hesitate to change airlines if they feel that they didn’t have a successful experience with United Airlines.

Key Consumer Insight

United customers are not interested in the flight experience as much as getting from point A to point B safely, efficiently and without large inconveniences. They don’t want their flying experience to consume their trip: they fly only because they have to and want it to be as quick as possible so they can continue their lives on the ground.

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SWOT Analysis

After understanding its strengths, weaknesses, opportunities and threats, United Airlines can see itself from an unbiased position. With a better understanding of its position within the airline category, United can capitalize on its strengths, evaluate a way to overcome its weaknesses, take advantage of its opportunities and avoid the negative consequences of the threats. All of these realizations are valuable to United as it continues to compete with other successful airlines in the industry and become more profitable.

STRENGTHS WEAKNESSES

United Airlines serves 378 airports, both nationally and United’s customer relations department has undergone scrutiny for internationally. United customers can fly to almost any city in the its way of dealing with those who were unsatisfied with their flying United States via a one-stop or non-stop flight. There are also experiences. Dave Carroll released a music video entitled “United flights available in 63 countries in Asia, Australia, Europe, Latin Breaks Guitars” that quickly went viral after United refused to America, Africa and the Middle East.21 The vast service area allows replace or pay for his guitar that was broken during a flight. 24 United to always be a viable option. Supermodel Maggie Rizer also lashed out against the way United United has hubs in eight U.S. cities, including four of the largest employees responded after her dog died of heat stroke while in the U.S. cities, and two hubs in cities internationally. 22 Hubs include underbelly of one of their airplanes. The airline eventually returned San Francisco, CA, Los Angeles, CA, Denver, CO, Houston, TX, the $1,800 it originally cost to transport the dog.25 Chicago, IL, Cleveland, OH, Newark, NJ, Dulles, VA, Tamuning, Guam and Tokyo, Japan. 21 A 10-year-old child was reported to be lost after a United employee failed to meet her at the gate to help her find her way to the United’s fleet of airplanes ranks as the most fuel-efficient when connecting flight. Representatives for the airline were difficult to adjusted for cabin size22 and has one of the best airplane fleets as a reach and seemingly uninterested after the child’s parents were result of its purchase of the Boeing 787 Dreamliners.23 contacted that she never arrived at her summer camp.26

In all of these cases, travelers cited apathy and an unwillingness to help following their poor travel experiences. It wasn’t until the customers spread the message via the Internet that United responded.

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SWOT Analysis

OPPORTUNITIES THREATS

The United Airlines and Continental Airlines merger in 2010 Large airlines such as United have the challenge of covering their combined two of the largest airlines in the nation and also large overhead, which includes employee salaries and equipment eliminated a major competitor. United could use the new purchases and maintenance. Smaller, developing airlines do not partnership to dominate the category through the increased number have these challenges and could pose a threat to United’s market of employees and airplanes acquired.27 share.

According to United Airlines’ 10-K for the 2011 fiscal year, the use Even though the United Airlines/ Continental Airlines merger of direct sales websites such as United.com and Continental.com provides great opportunities to expand their market share within allows the company to take better control of the content, target the airline category, there are risks involved with merging two customers in a more effective manner, retain customers and companies. Issues could include those associated with integrating decrease distribution costs.28 the workforce and business models of the two airlines, obligations imposed from the regulatory authority in addition to branding/re- As a result of the United Airline/ Continental Airlines merger, branding costs.29 United will gain the members of Continental’s OnePass loyalty program to add to their existing loyalty program, Mileage Plus. United Airlines has the most fuel-efficient airplanes adjusted for Awards redeemed from the Mileage Plus program represented 8.2% cabin size, but the uncertainty of aircraft fuel costs poses a major of United’s total revenue passenger miles in 2011 and 5.6% of risk to operating profits. This, combined with uncertain economic Continental’s total revenue passenger miles.28 conditions within the United States and globally, will affect the airline industry as it is historically cyclical and follows economic conditions.30

Air Tran and Southwest merged in May of 2011 and received a single operating certificate from the Federal Aviation Administration 31 in March of 2012. This means that the two will be able to operate under the Southwest name and possibly prove to be a major competitor for the newly merged Continental and United.

There are a number of valid competitors within the airline industry such as Delta Airlines, American Airlines, U.S. Airways, Southwest Airlines and Jet Blue Airlines. United is not alone in the industry. There are many substitutes available if customers are not satisfied with their flying experiences.

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Media Objectives

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Strategies

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BIG IDEA

Based on United Airlines’ current situation, including their strengths, weaknesses, opportunities, and threats, we have established that United has a need to improve their brand image while also growing their market share in a highly competitive industry. The following objectives and strategies aim to do just that.

MARKETING OBJECTIVE ADVERTISING OBJECTIVE

Increase United Airlines’ sales by 10 From the beginning 2013 to the end of percent from December 31, 2012 to 2013, increase target audience’s recall of December 31, 2013. United Airlines by 30 percent as the airline that will help you “Be There.”

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Media Objectives

TARGET AUDIENCE OBJECTIVE

Target the 2013 media campaign towards 8 to 10 million married adults, age 35-54, who have graduated college or more, work in professional or management occupations and earn a household income of $75,000 or more.

REACH, FREQUENCY, & GRPs OBJECTIVE

Gain a total of 320 GRPs, resulting from 80% reach and a frequency of 4, in heavy-up months of April, June, July, August and December. Gain additional GRPs in normal months to support campaign throughout the 2013 campaign year (specific number unavailable because of insufficient data in determining reach for these media forms).

BUDGET OBJECTIVE

Achieve the sales promotion, creative, geography, scheduling & timing, and reach, frequency & GRPs objectives within the budget of $15 million within the one-year campaign from beginning of January 2013 to end of December 2013.

SCHEDULING & TIMING OBJECTIVE

Employ a pulsing schedule with the heavy-up months of April, June, July, August, and December, which contain the majority of advertisements.

GEOGRAPHY OBJECTIVE

The $15 million budget for the twelve-month campaign will be divided between national advertising (29 percent) and spot advertising (71 percent) in the chosen media, focusing on the United Airlines hub cities and western DMAs.

SALES PROMOTION OBJECTIVE

Sales promotions will increase brand awareness within the outlined target market by 20 percent by the end of the twelve-month campaign.

16 Media Strategies

TARGET AUDIENCE REACH, FREQUENCY, & GRPs

Based on the target audience as defined in the situation analysis and Reach is a count of persons with at least one impression. It’s a flexible our geographic decisions as defined below, we estimate that United concept so that it works for any demographic and also works for Airlines will try to reach between 8 to 10 million people. media schedules, campaigns, or individual programs or magazines. Heavy up months, which include April, June, July, August and This number represents the U.S.’s population of adults 35-54 who December, in spot markets of television and radio will have a reach of have obtained a bachelor’s or graduate degree and now work full- 80 percent. time in a professional or management occupation. They are married and live in United Airlines’ hubs and top western DMAs Frequency is the average number of times a reached individual was with their spouse and/or family. exposed to a campaign. We must assume that it will take an average of three times for the target audience to act upon our advertisement. We used United States census data to extrapolate an estimate of Products with more competition need a greater frequency though so United’s target population size. Based on the chosen geographic we will increase our target frequency to four during heavy-up markets and population characteristics, we estimated the size of the months, including spot television and radio advertisements. total population by finding percentages of individuals in each city who fit the age and education requirements. Due to the high The target GRPs for the national campaign will be found by correlation of people who fit the education and occupation multiplying the average frequency and reach. Because of the selected requirements, we felt that using both percentages to calculate an media mix and budgeting constraints, a GRP calculation is not estimate would cause too much overlap and, thus, underestimate available for all months. What is known is the following: the GRP the size of our population. However, we did check them both to target for national spot TV for early fringe is 70, the GRP target for examine the similarity in estimates. national spot time in prime is 50. Similarly, the target GRP for spot radio during the morning drive is 100, as is for the evening drive. This To come to a final conclusion, we examined a number of estimates totals up to 320 GRPs per heavy-up month. GRPs are unavailable for based on various combinations of the demographics and their Internet, newspapers and magazines because reach cannot be percentages of the population. Then, we found the average and determined from the information acquired. median of those estimates. When those numbers were relatively close, we felt confident that 8 million was a good estimate of United Airline’s target population. To allow room for error and overlap, we chose to extend that range to between 8 and 10 million.

See Appendix 7 for a breakdown of the estimated population size and information source.

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Media Strategies

MEDIA BUDGET INTERNET

The designated budget for United Airline’s 2013 campaign is $15 Members of the United target audience are heavy Internet users, million. It will be divided between various media by percentage of the according to MRI data. Based on this as well as the provided total budget, based upon given data on advertising spending in the information for United’s past media spending, ads placed on the airline category. Portions of the budget will be spent both nationally and Internet will account for 18 percent of the total campaign budget, within our chosen spot markets. totaling $2,700,000.

MEDIA MIX According to our research using MRI, United customers are more likely to visit Amazon.com, MapQuest.com, Weather.com, NYTimes.com, Pandora.com, Orbitz.com, Gmail.com and Media have been suggested based on research regarding United Airline’s ESPN.com. For each of the websites, we aim to reach target audience and past spending data as provided. approximately 60 percent of total unique impressions per month Advertisements for United Airlines’ campaign will be placed in the with each ad.

following media outlets, with the designated percent of the budget: The number of ads purchased are based on the price of 60 percent of unique visitors as well as the percent down numbers, or the percentage of United customers that visit the specific website. The amounts calculated are based on given CPM numbers multiplied by the number of thousand impressions that will be purchased. For a breakdown of spending on each website, please see Figure 1 below.

Figure 1: Internet Spending32 Unique 60% of # Website % Index visitors/ visitors CPM of Total Cost down month ads Amazon.com 38.3 186 103,664,423 62,198,653.8 $12 1 $746,383.8 MapQuest.com 30.6 165 40,670,350 24,402,210 $8 3 $585,653.04 Weather.com 37.4 147 35,991,023 21,593,613.8 $9.50 2 $410,297.60 NYTimes.com 12.8 239 12,552,390 10,531,434 $25 2 $562,571.50

Pandora.com 17.6 174 17,034,893 10,220,935.8 $3.50 5 $178,866.45

Orbitz.com 12.8 277 7,943,095 4,765,857 $7 6 $200,184.12

Gmai Gmail.com 33.4 171 214,332 128,599.2 $2 7 $1800.40 ESPN.com 16.6 132 71,382 42,829.2 $13 3 $1,670.37

18 Media Strategies

MAGAZINES (NATIONAL & SPOT) The sixty percent of the spot circulation budget allocated to Members of the United Airlines target audience, as described above, are Newsweek totals $1,3500,000, allowing there to be eight full medium to heavy magazine users, according to MRI data. Based on this as page, four color ads in each of the hubs. This means there well as provided information about the airline category’s media spending, will be a total of sixty-four ads over eight weeks in eight 15 percent of the campaign’s budget ($2,250,000) will be spent on spot cities, totaling $1,333,510. See Figure 2 for the chart circulation of magazines and 11 percent ($1,650,000) will be spent on the detailing circulation and pricing for each of the cities.36 national circulation of magazines. Based on MRI data for the United target audience, United ads will be placed in InStyle, Time, Reader’s Digest for The percent down or percentage of United flyers who read national circulation and Newsweek and National Geographic for spot National Geographic is 18.3 and the index is 129. The rate circulation. Magazines offer more creative opportunities and each issue has base to advertise in the top 25 metro markets is 2,100,000 a fairly long life. Unfortunately, ads can be costly and be drowned out by per month, and pricing decreases per ad when buying six or the excessive clutter in this medium. more ads. With the forty percent of the spot circulation budget ($900,000), there will be six one-page, four color ads NATIONAL: in National Geographic at a rate of $149,690 per ad, totaling $898,140.37 The percent down or percentage of United flyers who read InStyle is 8.4 percent and the index is 184. The national monthly rate base for InStyle is Figure 2: Newsweek Costs by City 1,700,000 and the monthly charge for a half -page square advertisement is DMA Circulation Cost per ad $104,400. Over the course of the campaign, six half-page square ads will run in InStyle, totaling $626,400 (the national circulation budget, Chicago, IL 84,000 $22,100 $1,650,000, divided by three national circulation magazines plus the Cleveland, OH 23,000 $19,625 33 surplus after all other magazine spending was calculated). Denver, CO 25,000 $19,625

The percent down or percentage of United flyers who read Time is 11.1 and Houston, TX 22,000 $19,625 the index is 139. The national monthly rate base for Time is 3,250,000, New York, NY 105,000 $24,495 while monthly circulation is 3,298,390. One half-page, four color ad in the Los Angeles, CA 90,000 $22,935 weekly publication is $240,000. By using the $550,000 allocated Time as San Francisco, CA 85,000 $22,100 one of the three magazines with ads in national circulation, there will be one one-half page ads in two different weeks of the publication. This totals Washington, D.C. 63,000 $20,445 $480,000.34

The percent down or percentage of Untied flyers who read Reader’s Digest Figure 3: Magazine Budget Breakdown is 12.4 and the index is 112. The national circulation per publication (ten per year) is 5,500,000. One half-page, four color ad is $111,300. By using the $550,000 allocated plus some surplus after all other magazine spending was calculated, there will be five one-half page, four color United ads in Reader’s Digest. This totals $556,500.35

SPOT:

The percent down or percentage of United flyers who read Newsweek is 8.5 percent and the index is 157. Spot ads will run in the eight United hubs in the U.S.: Chicago, IL, Cleveland, OH, Denver, CO, Houston, TX, New York, NY (in place of the hub in Newark, NJ), Los Angeles, CA, San Francisco, CA, and Washington, D.C. 19

Media Strategies

TELEVISION (SPOT) RADIO (SPOT)

Based on MRI data, the target market for United contains light to According to MRI data, the United target audience contains heavy medium TV users. Based on this as well as the expensive nature of users of radio. The data also suggests that United customers listen to TV ads, United ads will only appear in spot markets as determined the radio during the morning drive (from 6 a.m. to 10 a.m.) and by United hubs and DMAs in which the majority of customers live during the evening drive (from 3 p.m. to 7 p.m.). Using the (according to MRI data). The spot markets chosen include Chicago, percentages from United’s media spending (provided), applying IL, Cleveland, OH, Denver, CO, Houston, TX, Los Angeles, CA, them to the budget of $15 million and taking into account media Newark, NJ, San Francisco, CA, Washington D.C., Seattle-Tacoma, usage according to MRI, there will be $2,700,000 or 18 percent of WA, Portland, OR, Sacramento-Stockton-Modesto, CA, San Diego, the budget allocated to 30-second radio ads in the spot markets CA, Phoenix, AZ and Salt Lake City, UT. Fifteen second United ads listed above. The scheduling will be the same as that for TV ads: will appear in the early fringe/ news and prime day parts in five during five months of historically heavy travel. There will be a total different months (April, June, July, August, December), as described of 200 GRPs in each month as well as $861,600 per month for spot in the Reach/ Frequency/ GRP objective and strategy section. The radio advertisements. See Figure 5 below for GRP, CPP, CPM and total cost per month is $753,470, totaling 3,767,350 over the total cost breakdown (according to Media Flight Plan) per each of co urse of the campaign. See Figure 4 below for GRP, CPP, CPM and the five heavy-up months. Radio has a local appeal as messages can total cost breakdown (according to Media Flight Plan) per each of be tailored to specific geographic areas. It also provides a platform the five heavy-up months. TV offers a low cost per contact with to reach a fairly segmented audience. Audience members may not viewers and can convey persuasive messages. On the other hand, be extremely attentive to radio, however, as they may have it on in messages can be fleeting and with the implementation of TiVo and the background. Creative limitations are present as ads only appeal DVRs, audience members can fast forward through ads and tune to the audience through sound, unlike TV which appeals through them out. visuals and sound.

Figure 4: Spot TV Dayparts Figure 5: Spot Radio Dayparts Medium GRPs CPP CPM Total Cost Medium GRPs CPP CPM Total Cost Spot TV: 70 $4206 $15.09 $294,420 Spot Radio: 100 $4229 $15.17 $422,900 Early Fringe Morning Drive Spot TV: 50 $9181 $32.94 $459,050 Spot Radio: 100 $4387 $15.74 $438,700 Prime Evening Drive

20 Media Strategies

NEWSPAPERS HUB CITIES

According to MRI data, the target market for United contains heavy Some ads are priced by the column inch, while others are priced newspaper users. Based on given past United spending as well as based on a set ad space (multiple column inches). Newspapers like this MRI data, six percent of the $15 million budget plus surplus The Plain Dealer, The Denver Post, The New York Times, and San will be allocated to spot newspaper advertisements. This total comes Francisco Chronicle have more expensive 6 column inch ads, so the to $1,221,637.24 for the 12-month campaign. The spot markets number of ads during the campaign year was decreased to 18 will include top western U.S. DMAs where, according to MRI data, instead of 21. Twenty-one was chosen as the starting number after much of the target market lives, and the cities where United’s hubs the total amount allocated to newspapers in hub cities was divided are located. The newspapers and the cities from United hubs by the total cost of all eight newspapers’ single ads. include: Chicago Tribune (Chicago, IL), The Plain Dealer (Cleveland, OH), The Denver Post (Denver, CO), The Houston Chronicle For a breakdown of circulation, cost per ad and total cost by (Houston, TX), LA Times (Los Angeles, CA), The New York Times newspaper in each hub city, please see Appendix 8. (Newark, NJ), San Francisco Chronicle (San Francisco, CA), The Washington Post (Washington D.C.). The newspapers and the cities WESTERN U.S. DMAs from the western U.S. DMAs include: The Seattle Times (Seattle- Tacoma, WA), The Oregonian (Portland, OR), The Sacramento Bee Each of the six newspapers in the western U.S. DMAs will have 24 (Sacramento-Stockton-Modesto, CA), U-T San Diego (San Diego, United ads (each measuring 12 column inches). The total amount CA), The Arizona Republic (Phoenix, AZ) and The Salt Lake Tribune allocated to the western U.S. DMAs, $608,152.32, was divided by (Salt Lake City, UT). the total cost of all six newspapers’ single ads to equal 24 ads in each publication. Instead of the six column inch ads in the hub At first, the total budget for newspapers in the top western U.S. cities’ newspapers, the ad size was increased to 12 column inches as DMAs and those in United hubs was divided in half. After the column inch price is less expensive than that for the hub cities’ calculating each column inch rate and number of ads possible, it newspapers. These cities are important to include since our target was decided it is best to allocate $613,484.92 to newspapers in audience lives and works in these cities. United hubs and $608,152.32 to newspapers in the top western U.S. DMAs. Newspapers in general have a broad reach, credibility with A breakdown of circulation, cost per ad, and total cost per the audience and deliver information in a timely manner. These newspaper in each DMA can be found in Appendix 8. advantages may be offset by the creative constraints, poor reproduction and short life of each issue.

21

Media Strategies

NON-TRADITIONAL SOCIAL MEDIA

Six percent of the year’s campaign plus the surplus left over from Social media efforts will comprise $100,000 of the non-traditional other media’s budgets will go towards non-traditional advertising budget and will go towards sponsored tweets on Twitter and ads on efforts, totaling $1,227,662.76. Facebook. For free social media efforts, we will maintain accounts on Facebook, Twitter, Instagram and Pinterest. Facebook and Twitter NFL TEAM SPONSORSHIP will focus on promotions as listed in the “Sales Promotion” section as well as reference relevant articles about the airline industry. Twitter, According to MRI data, United Airlines’ customers are very likely more specifically, can deal with customer service complaints and to watch professional football games on TV over the give travelers updates on weather delays. The Instagram account weekend (27.7% down and index of 111). If the NFL creates a new will prompt customers to send in pictures taken on vacations or football team to be based in Los Angeles within the campaign year, business trips after flying with United Airlines. They will use the United will use $1,000,000 of its non-traditional advertising hashtag “#United” to reference the pictures taken. United Airlines budget to become a bottom-level sponsor for the new team. will have a Pinterest account to post "dream vacations" to different boards to showcase areas that United serves. For this $1,000,000 sponsorship, we will assume we will receive two banner ads around the stadium, five promotions throughout AIRPORT BUS WRAPS the season and two ten second radio or TV spots per home game. There will be promotions for those who fly United to win We will dedicate the remaining non-traditional budget to bus wraps, tickets to football games as well as contests during the game to win totaling $127,662.76. The wraps will be on city buses in United's top round trip flights with United. This directly connects the western DMAs and on pre-travel transportation vehicles at United's sponsorship to the brand and with audience interaction, will hub airports. The bus wraps will feature drawings of people sitting improve brand awareness. on a United airplane. The drawings will be headless, so when a passenger sits in a seat on the bus, it will look like they are on a By choosing to sponsor a team or stadium that will have TV plane. coverage as well as a large audience, both in the stands and on TV, the sponsorship money will go even further to improve brand For an example of this advertising technique, please see Appendix awareness. 12.

If the NFL does not add another team, we will look for other relevant opportunities for sponsorship such as another football or soccer team.

22 Media Strategies

SCHEDULING & TIMING GEOGRAPHY

In the entirety of the media mix that we selected for our United Media spending will be divided between national and two types of Airlines media plan, a pulsing plan was found most appropriate spot areas: United Airlines’ hubs and the top western United States for scheduling. The associated graph (see Appendix 9) shows the DMAs. The western DMAs were chosen based on MRI data showing seasonality of each media type and when advertisements will be that United passengers are 78 percent more likely to live in the purchased throughout the year. western Census region. Furthermore, the MRI data shows that 40.8 percent of United passengers live in this region. This is compared to Because of the budget constraints, our hopes to buy national TV the next greatest concentration of United customers, which MRI and magazine advertisements throughout the entire year could not shows as 24.7 percent living in the Southern Census Region. come to fruition. The majority of all advertising takes place in the heavy-up months, which are April, June, July, August and Since United Airlines tends to have a strong presence in their hub December. These months were chosen based on the airline cities, we wanted to be sure that those DMAs are represented in our industry’s seasonality, with much more traveling taking place media campaign. These include Chicago, IL, Cleveland, OH, Denver, during April for spring breaks; June, July and August for summer CO, Houston, TX, Los Angeles, CA, Newark, NJ, San Francisco, CA and break; and December for holidays, including Christmas. Washington D.C. For reference, Appendix 10 contains a map of the United States with each hub represented by a blue dot. However, there are various Internet and newspaper advertisements running throughout the year – during both normal The western DMAs as chosen based on United’s customer base, and heavy-up months. airline location, and strength of brand presence are Seattle-Tacoma, WA, Portland, OR, Sacramento-Stockton-Modesto, CA, San Diego, We could not save much money in choosing a different dayparts CA, Phoenix, AZ and Salt Lake City, UT. See Appendix 11 for a map of for TV and radio spots because our target audience watches TV each of these DMAs. during some of the priciest times for advertising, according to MRI data. To make the ads more affordable, we changed the length of the spots to 15 seconds instead of 30 seconds. We decided it is more important to advertise while the target audience is tuned into the medium rather than not reach them at all.

These scheduling and timing strategies should result in the most efficient use of money in advertising for this campaign.

See Appendix (3) for the full pulsing schedule.

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Media Strategies

SALES PROMOTIONS GROUPON DEALS

During the twelve-month campaign, United should encourage both Since 13.8 percent of the United target visits Groupon.com existing and new customers to fly on their airline by offering according to MRI data, United will offer two visits to its United Club discounts and special benefits including special rates during non- for $50 with the purchase of a round-trip ticket. After visiting the major holidays, MileagePlus promotions, Groupon deals for United airport lounge, which includes free Wi-Fi, beverages, snacks and Club entry and rental car discounts. assistance with reservations and flight status, United customers will still want access to the club after their two visits.x It will encourage FLIGHT DISCOUNTS more customers to become United Club members or United Star Alliance Gold members so they can have access to the lounge every Following the creative objective to encourage customers to “Be time they fly. There,” there will be a fifteen percent discount on flights around Valentine’s Day. As February is not one of the heavy travel months, FREE CHECKED BAG discounted rates around Valentine’s Day will encourage those who might not normally travel during this time, to travel and travel via United customers will receive a free checked bag when they fly United. within the first week of a non-peak travel month. Instead of paying $25 for the first checked bag and $35 for the second, travellers FREE WI-FI during this time period will not have to pay a baggage fee for their first bag. y This will encourage flying during this time period as Mileage Plus customers will receive free Wi-Fi both in the airport well as making boarding and deplaning more stream-lined terminal and during the flight beginning in November and ending processes. Flights will be more likely to be on time, as flight January 1 (the end of the campaign). By offering these deals that attendants will not have to check extra baggage during the save travelers the sign on fee, they will sign up for the MileagePlus boarding process. Once customers see how easy it is to fly United rewards program (including the credit card), use the credit card for (because of the lack of large suitcases in the airplane cabin), they holiday shopping, earn miles to fly United and therefore become will want to travel with the airline again. more loyal customers.

RENTAL CAR DISCOUNTS ECONOMY PLUS UPGRADE During non-peak travel months, United will partner with a rental After MileagePlus members earn 100,000 miles by traveling with car company to offer discounted rates on rental cars. Since non- United, they will have the option to upgrade to an economy plus peak travel months for airlines are most likely similar to those of seat which has more legroom and has the option to board the rental car companies, this promotion will encourage United airplane sooner so they can take advantage of overhead bin space customers to rent a car when they might not normally. This for luggage. w This will encourage customers to become more loyal promotion will benefit the rental car company enough so it will to United as they want to reach the 100,000-mile marker and agree to participate, but most importantly, it will encourage redeem this offer. travelers to fly with United.

MILEAGE PLUS PROMOTIONS

United’s loyalty program, MileagePlus, will offer double miles when flying during the first weekend of a non-peak travel month (January, February, March, May, September, October, November). This will encourage existing MileagePlus members to fly during this time and also encourage flyers to join the loyalty program. 24

Media Strategies

SALES PROMOTION BUDGET AND MEDIA

The sales promotion budget will be $100,000, taken from non- traditional advertising efforts. Flight attendants and gate agents will announce the promotions over the loud speaker on airplanes and in airports. There will be e-mail blasts to MileagePlus members about relevant promotions to encourage their participation. Both of these methods of advertising will not cost anything, other than the production of the script to be distributed among employees as well as the production of the email layout.

Sales promotion ads can be placed in already-determined websites, magazines, newspapers, TV and radio ads if there is not any relevant content to be advertised in its place. The majority of the $100,000 will go towards out-of-home ads and kiosks placed in airports in the eight hub cities. Billboard-style ads will be placed on the walls of airport terminals advertising the promotions one or two months before the promotion occurs. Kiosks will have United Airlines employees explaining the advantages of the MileagePlus rewards program and the promotions that go along with it.

25

Creative Brief

BACKGROUND/OVERVIEW

This campaign will focus on the idea that United is the best way to get you from point A to point B. For United and its customers, flying isn’t about all the fancy additions or extras. It is about getting you where you need to go so you can get on with the things that really matter in your life. United understands that traveling can be difficult, and they are committed to making the travel experience as simple as possible.

THE BIG IDEA: “BE THERE.”

The single most important thing to communicate is that United Airlines is the quickest, safest and easiest way to fly. Customers can “Be There” without having to deal with all the usual stresses of flying.

TARGET AUDIENCE: WHO WE’RE TALKING TO

Our target audience is men and women aged 35-54 who travel for either work or leisure. These people are married with or without children. They live in smaller metropolitan cities and suburban areas. Most are homeowners that have at least a college education and make more than $75,000 a year. They spend time on the Internet, watch television and videos and they read magazines and newspapers.

CALL TO ACTION

Customers should choose to fly United more frequently than other airlines. The goal of this campaign is for customers to book a flight with United Airlines. If they don’t book a flight in the near future, they should be able to recall our slogan “Be There” and think about choosing United in the future.

MEDIA MIX/ACTION PLAN

Our campaign will be positioned in national Internet spots and national magazine ads. We will also run advertisements in spot newspapers, spot magazines, spot radio and spot TV in the top western DMAs and major United hubs. We will sponsor a new NFL team and create brand awareness from a non-traditional standpoint. Internet spots will focus on a series of online advertisements using banner ads and commercials on websites where United Customers frequent (See Appendix 14). National and local magazine ads, and spot newspaper ads will feature the slogan, “Be There” in a modern and innovative way (See Appendix 13). Promotions around the holidays will also help ensure that customers fly United (See Appendix 13). To better reach our target audience, we plan to advertise within the United travel cycle, which includes pre-travel, at airport, in club, on board and post travel. It is our goal to heavily promote United Airlines within that cycle. For example, creative bus wraps for pre-flight transportation, in-airport and in-flight advertising through national magazines and websites and post travel advertising through everyday mediums. The advertisements for this campaign will be serious yet playful, while highlighting United’s strengths of the ease of travel. We want to engage the consumer and get them excited about United, while maintaining the professionalism that helps United fly safely and efficiently.

BUDGET CONSIDERATIONS

Due to budget constraints, our campaign will employ both national and local tactics to entice United customers to fly. By appealing to a wide variety of customers through national magazine buys and advertisements on National websites that United customers frequent, our national buys will have a big impact on consumers in our target audience. To further drive customers to fly United, local campaigns aimed at top DMAs and major United hubs will appeal to our target audience by focusing on their location and everyday activities. 26 Appendix

Appendix (1): United Airlines Post-Merger Logo

Appendix (2): Competitive Data

27 Appendix Appendix (3): United Airlines Advertising Examples

Appendix (4): Competitive: Southwest Airlines Appendix (5): Competitive: JetBlue

Appendix (6): Competitive: U.S. Airways

28 Appendix

Appendix (7): Population Estimate

Chicago Cleveland Denver Houston LA New York Phoenix Total 9,504,024 2,068,283 2,600,594 6,086,895 12,944,801 19,015,900 4,263,236 Age 35-44 13.8% 12.5% 14.8% 14.3% 14.4% 13.8% 13.6% Age 45-54 14.4% 15.4% 14.3% 13.8% 14.1% 14.7% 13.0% Married 46.8% 45.4% 49.2% 49.8% 44.0% 45.5% 48.1% Bachelor's or Higher 34.2% 27.9% 38.4% 28.9% 31.0% 36.2% 28.5% Management/Business/Science/Art 37.3% 36.8% 41.1% 36.1% 36.2% 39.6% 35.3% Occupation Salt Lake San Washington Portland Sacramento City San Diego Francisco Seattle D.C. Total 2,262,702 2,176,235 1,145,905 3,140,069 4,391,037 3,500,026 5,703,948 Age 35-44 14.6% 13.1% 13.5% 13.4% 14.9% 14.6% 14.8% Age 45-54 14.1% 14.2% 11.7% 13.7% 14.8% 14.8% 15.1% Married 49.5% 47.3% 53.1% 47.0% 47.5% 49.8% 48.5% Bachelor's or Higher 34.2% 30.1% 31.0% 33.7% 43.9% 37.1% 48.0% Management/Business/Science/Art 38.8% 39.3% 36.3% 40.0% 45.7% 42.0% 50.7% Occupation

TOTAL/ # OUT OF AVERAGE TOTAL DEMOGRAPHIC EQUATION ESTIMATE Total 78,803,655 78,803,655 AGE 35-54/MARRIED (22,188,858 * 47.96%) 10,641,776 Age 35-44 14.01% 11,038,141 AGE 35-54/BACHELOR'S (22,188,858 * 34.51%) 7,657,374 Age 45-54 14.15% 11,150,717 AGE 35-54/MANAGEMENT OCCUPATION (22,188,858 * 36.04%) 7,996,864 Married 47.96% 37,794,233 AGE 35-54/MARRIED/BACHELOR'S (10,641,776 * 34.51%) 3,672,477 Bachelor's or Higher 34.51% 27,195,141 AGE 35-54/MARRIED/MANAGEMENT (10,641,776 * 36.04%) 3,835,296 Management/Business/Scie MARRIED/BACHELOR'S (37,794,233 * 34.51%) 13,042,790 nce/Art Occupation 36.04% 28,400,837 MARRIED/MANAGEMENT OCCUPATION (37,794,233 * 36.04%) 13,621,042

LOW ESTIMATE 3.7 million HIGH ESTIMATE 13.6 million AVERAGE ESTIMATE 8.6 million MEDIAN ESTIMATE 8.0 million

*All population information gathered from http://factfinder2.census.gov/faces/nav/jsf/pages/searchresults.xhtml?refresh=t 29 Appendix Appendix (8): Hub & Top Western DMA Newspapers Circulation & Cost Number of Newspaper City (Hub) Circulation Cost* Ads Total Cost

Chicago Tribune Chicago, IL 388,83840 $723.80 (2 21 $15,199.80 (Travel Section) columns x 3.5”)38 (7 col. in. each)

44 ~$850 per 18 The Plain Dealer Cleveland, OH 219,509 column inch** (6 col. in. each) $91,800** The Denver Post Denver, CO 226,11844 $862.64 per 18 $93,165.12 column inch39 (6 col. in. each) The Houston Chronicle Houston, TX 234,48344 $676 per column 21 $85,176 inch (6 col. in. each) The New York 44 $1,114 per 18 Times New York, NY 717,513 41 $120,312 (Travel section) column inch (6 col. in. each) *All costs are for 21 ads in a publication LA Times 44 $1064 (2 columns Monday-Friday. Los Angeles, CA 454,498 42 (14 col. in. $22,344 (Travel section) x 7”) each) **Estimated cost SanAppendix Francisco ~$845 per 18 based on a 43 Chronicle San Francisco, CA 212,550 column inch** (6 col. in. each) $91,260** newspaper with similar circulation. The Washington 44 $891 per column 18 Post Washington, D.C. 434,693 inch45 (6 col. in. each) $96,228

Number Newspaper City (DMA) Circulation Cost* of Ads Total Cost Appendix (9): Pulsing Schedule $425.50 per The Seattle Seattle, WA 206,51746 column 24 (12 col. $122,544 Times inch47 in. each) $263.70 per The Portland, OR 209,08342 column 24 (12 col. $75,945.6 Oregonian inch48 in. each) The ~$395 per Sacramento Sacramento, CA 192,19949 column 24 (12 col. $113,760** Bee inch** in. each) $459 per U-T San San Diego, CA 208,93150 column 24 (12 col. $132,192 *All costs are for Diego inch51 in. each) ads in a publication $495 per Monday-Friday. The Arizona Phoenix, AZ 274,78344 column 24 (12 col. $142,560 **Estimated cost Republic inch52 in. each) based on a newspaper with The Salt Lake Salt Lake City, $73.44 per 24 (12 col. 110,54653 column $21,150.72 similar circulation. 30 Tribune UT inch54 in. each)

Appendix (10): Map of United Hubs

Appendix

31

Appendix (11): Maps of United’s Top Western DMAs*, Con’t

*U.S. Map from: http://www.image- maps.com/united_states.p hp

Appendix (11): Maps of United’s Top Western DMAs*

Appendix

32 San Diego DMA Seattle-Tacoma DMA Sacramento DMA

*All DMA Maps from: http://www.ustravel.org/ research/destination- insights/designated- market- Phoenix DMA Portland DMA Salt Lake City DMA areas#Washington

Appendix (12): Bus Wrap Example

33 Appendix

Appendix (13): Creative Examples – Print Ads

Appendix Appendix (14): Creative Example - Commercial

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35 End Notes 1 2011 10-K Annual Report 2 http://www.nytimes.com/2012/07/27/business/uniteds-profit-falls-on-merger-problems.html 3 http://online.wsj.com/article/SB10001424052748703933404576170393021650666.html 4 http://articles.chicagotribune.com/2012-01-05/business/chi-united-to-keep-rhapsody-in-blue-as-theme-song-20120105_1_theme-song-rhapsody-united-airlines 5 http://www.unitedcontinentalholdings.com/ 6 https://hub.united.com/en-us/News/Company-Operations/Pages/united-proud-to-fly-challenge.aspx 7 http://www.prnewswire.com/news-releases/united-airlines-launches-tv-advertising-to-support-campaign-for-2012-team-usa-164021146.html 8 http://www.united.com/web/en-US/content/company/advertising/commercials.aspx 9 http://www.nbcnewyork.com/news/local/United-Airlines-Ground-Zero-Ad-Land-WTC-NYC.html 10 http://travel.usatoday.com/flights/post/2012/09/united-airlines-frequent-flier-ad-campaign/837019/1 11 jetblue.com 12 southwest.com 13 https://twitter.com/USAirways & https://www.facebook.com/USAirways?ref=ts&fref=ts 14 https://twitter.com/Delta & https://www.facebook.com/delta?ref=ts&fref=ts & http://news.delta.com/ 15 https://twitter.com/AmericanAir & https://www.facebook.com/AmericanAirlines?fref=ts & http://www.aa.com/i18n/aboutUs/main.jsp?anchorEvent=false&from=Nav 16http://www.ustravel.org/news/press-kit/travel-facts-and-statistics 17 http://www.ustravel.org/sites/default/files/page/2009/09/USTravelAnswerSheet_June2012.pdf 18 MRI+ Mediamark Reporter 19 http://www.gfkmri.com/Shortcuts/ClientService/DataMethodologyFAQs.aspx#_Toc184541307 20 21 http://www.unitedcontinentalholdings.com/documents/FactSheet.pdf?file=united_factsheet.pdf&type=pdf 22 http://www.unitedcontinentalholdings.com/index.php?section=about 23 http://blog.seattlepi.com/airlinereporter/2012/09/24/united-airlines-takes-delivery-of-their-first-boeing-787-dreamliner/ 24 http://www.huffingtonpost.com/2009/07/08/united-breaks-guitars-pas_n_228062.html 25 http://articles.nydailynews.com/2012-09-21/news/34007819_1_pet-deaths-airline-worker-dog 26 http://www.smartertravel.com/blogs/today-in-travel/united-loses-child-traveling-alone.html?id=12282302 27 http://articles.latimes.com/2012/mar/05/business/la-fi-mo-united-glitches-20120305 28http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=IROL- secToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMDczMDEwL3RvYy9wYW dl&ListAll=1&sXBRL=1 (page 7) 29http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=irol- SECText&TEXT=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMDczMDEwL3htbC9zd WJkb2N1bWVudC8xL3BhZ2UvMTU%3d (pages 13-14) 30http://ir.unitedcontinentalholdings.com/phoenix.zhtml?c=83680&p=IROL- secToc&TOC=aHR0cDovL2lyLmludC53ZXN0bGF3YnVzaW5lc3MuY29tL2RvY3VtZW50L3YxLzAwMDExOTMxMjUtMTItMDczMDEwL3RvYy9wYW dl&ListAll=1&sXBRL=1 (page 15) 31 http://www.dallasnews.com/business/airline-industry/20120301-airtran-southwest-airlines-to-get-faa-ok-to-operate-as-single-carrier.ece 36 End Notes

32 www.compete.com 33 http://www.instyle.com/instyle/static/advertising/mediakit/instyle/generalad.html 34 http://www.timemediakit.com/us/rates-specs/national.html 35 http://www.rd.com/mediakit/pdf/rate-cards-2012/2012_RD_Rate_Card.pdf 36 http://mediakit.newsweekdailybeast.com/pdf/2012_NW_RateCard.pdf 37 http://www.nationalgeographic.com/mediakit/pdf/ng-magazine/Rates.pdf 38 http://advertising.chicagotribune.com/drafts/64665/68651/configure 39 http://mediakit.denverpost.com/images/rateCards/Natl-display-plus-FC-8-15-2011.pdf 40 http://extras.chron.com/banners/r/rates09/hc_national_rates_p1.html 41 http://nytmarketing.whsites.net/mediakit/uploads/rates/2012_Travel_RateC_PM3.pdf 42 http://www.latimes.com/advertiser/category/travel/ 43 http://www.statista.com/statistics/193842/average-paid-circulation-of-the-san-francisco-chronicle/ 44 http://accessabc.wordpress.com/2012/10/30/the-top-u-s-newspapers-for-september-2012/ 45 http://www.washingtonpostads.com/sites/default/files/RC_General2012_0.pdf 46 http://accessabc.wordpress.com/2012/05/01/the-top-u-s-newspapers-for-march-2012/ 47 http://www.seattletimescompany.com/advertise/currentrates.html 48 http://biz.oregonian.com/adrates/pdf/general.pdf 49 http://www.sacbee.com/2012/10/31/4950197/bee-circulation-drops-over-past.html 50 http://www.sandiegoreader.com/weblogs/news-ticker/2012/oct/30/most-u-t-circulation-numbers-decline-according-to-/ 51 http://www.utads.com/ad_specs/rates/general/general2012/GeneralRatebook2012_PR34617.pdf 52 http://republicmediasolutions.com/uploads/pdf/NationalGrossAdRates2011.pdf 53 http://www.poynter.org/latest-news/mediawire/173101/how-the-deseret-news-nearly-doubled-its-sunday-print-circulation/ 54 http://www.nacorp.com/marketing/pdfs/ 35 http://www.united.com/CMS/en-US/products/travelproducts/Pages/EconomyPlus.aspx 36 https://www.united.com/web/en-US/content/travel/airport/lounge/amenities.aspx?Mobile=1 37 http://www.united.com/CMS/en-US/travel/Pages/CheckedBaggage.aspx

Images Sources: http://skift.com/2012/11/08/united-airlines-says-sandy-cost-it-90-million-in-revenue-but-it-could-have-been-worse/ http://mediagallery.usatoday.com/United+Airlines http://www.yaleruddcenter.org/newsletter/issue.aspx?id=9 http://www.gadling.com/2009/07/27/good-move-by-united-airlines-award-redemption-fees-to-be-elimi/

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