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

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United Airlines Media Plan Lacy Bedol, Margaret Cobb, Alexia Conley, Kate Farmer, Sondra Schmidt 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. 2 Situation Analysis 3 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 located in:1 MERGER 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. 5 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.
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