Specific Strategies Used by JetBlue - Research Proposal Example

Marketing 1. Specific strategies used by JetBlue to provide value for customers. Any customer who chooses to use Jet blue will be entitled to several rights which are made clear. In case a flight is cancelled, then the traveler will be offered a full refund of the amount paid and incase the cancellation is made by the airline itself four hours to the departure then the customer will be offered accommodation on the next available flight without incurring any extra charges on the required fare, and also a $50 will be issued to the same customer as credit good for future travel. Other forms of compensation include overbooking as it is stated in the JetBlue contract of carriage where any customer that is involuntarily denied access to boarding are entitled to $1300 (Reiner, 2009). In cases of on ground board delays then all customers are provided with free food and drink, access to clean restrooms and incases of medical problems then also medical services are offered for free. Since technology is currently taking toll worldwide, Jet Blue has been trying to embrace online marketing for their products. Almost all information can be accessed online and it would therefore save a customer the need to have to go to the customer care service desk to always make enquiries and get assistance. People would opt for saving when making choices other than just having empathy for a given brand. The use of social network has enabled Jet Blue to effectively influence buyers and maintain good and lasting customer relationships. Jet blue gives critique to customer’s voices and that is what lead to the establishment of the software that helps the analysts to have better insights of feedbacks obtained from customers. This helps in making critical decisions driven to ensure full customer satisfaction in the bid to fight competition from other airline service providers (Parekh, 2012). Jet Blue Product Concept Marketing is a process which involves all the necessary steps to ensure final sales. It involves planning, pricing, promotion, distribution and sales that ensure the satisfaction of both the customers and the producers, in terms of profits and consumer satisfaction. The general concept of marketing lays emphasis on selling satisfaction other than just selling the products. It involves determining the needs and wants of customers and giving out more desirable outcomes than any other competitors, in trying to achieve the organizational goals. JetBlue as an airline company acts to provide customers with the best flight services and this they achieve through a number of ways such as offering compensations and seeking customer feedbacks after service delivery (Brizek, 1998). This makes it clear that the airline is giving more concern to the kind of products they offer. They measure whether their outcomes are close or up to those desired by their customers. The type of products offered is the key concern for this organization. It is for this concept of products that they are going far in trying to save costs for their customers by conducting online marketing and providing full information and enquiries through their network. This is done in order to facilitate quality products in terms of the services. Understanding the dynamics of the needs and wants of customers enables the organization to enhance the services they offer. They are able to understand what would best meet the needs of their customers and in doing this, then there is a good relationship built up between the provider and the consumers. There is mutual benefit for both parties that is; satisfaction. Since it is the customers receiving services, the organization largely depends on the direct feedback from their customers which is tapped by their analysts through a text analytics software, enabling them to better understand needs which keep on varying, in the long run promoting pro activeness and providing consumer satisfaction and highest customer services. 1. Short Essay: Successful Brand Product As a manufacturing company coca cola is put to task to ensure the product meets the demand and expectations of consumers outside there. Due to increasing demand the company has expanded their distribution base the key product attributes are measured by focusing on ingredients used materials, regulation of the manufacturing and distribution. All these will ensure that the product is of quality and will meet the end desires of their consumers (Kapferer, 1992).in ensuring consistency reliability and quality production the company has a management system that helps them grow strategically as well as address the changing business landscapes. This facilitates quality production as well as maintaining the same high standards of distribution. As a beverage company the coca cola bottle is synonymous with their brand. It is also believed to play big role as to the current looks of many bottles since it has almost maintained the same bottle shapes overtime since its indulgence into the market in the early 1916. The bottle has however changed a bit over the last century from being squarer in design to having a curvaceous figure. Also over time the company has advance to a new kind of bottle that is plastic including their logo. This is more convenient for consumers especially those on the move due to its portability. The coca cola company as the leading soft drink industry has a number of factors that facilitate the overtime dominating popularity and among them is the packaging and labeling (Ayandutta, 2010). Any product should have a label identifying it and should be packaged for reasons such as to attract the customer. It should be presented in a manner persuasive to any consumer to feel the urge to purchase the product. The packaging in itself will always attract the consumer and should be generally descriptive of the contents found in it, for example the contents and ingredients. Customers will want to go for a product that will prove convenient in home storage. In mind also is the issue concerning transportation from the point of purchase to the destinations. Is the product well protected to be moved across to the end destination or to the point of consumption? Coca Cola Company has with time established more brands suitable for consumption by the consumer and has also enhanced the looks through updating the labels and the containers. The changes keep on coming about due to the need to keep their customers and it is evident that by use of all those above techniques they have been able to maintain their customers since the company remains the most popular and best producers of soft drinks worldwide (Pride, 2008). The company has given a lot of aesthetic considerations in terms of the package size material and color to ensure that any customer would be comfortable in using the product. 4. How southwest airline pricing strategy creates value for its customers People usually choose other airline companies as they assume that the ticket prices are higher at Southwest. They under look the fact that the Southwest Company does not have the extra charges posed on each bag for passengers. A round up ticket from this airline is almost the same as a ticket from any other company including the extra percentage charged on luggage. This airline company, unlike others does not avail their tickets on popular travel sites but they are concealed within their own website (Perkins, 2009). This necessitates the customers to visit their specific website to make the purchase. In doing this the customer is not in any way subjected to booking fees which is usually perceived as an extra cost. Since there proves less potential for their customers to comparison shops, then it also allows the company to bring down their prices a bit in favor of their customers. The airline is able to understand its customers’ needs and for that reason the customers never seemed bothered by the introduction of new charges for early check-ins. The company is also keeping up to date with technology. For example, they have developed mobile applications, which allow the customers to perform actions such as monitoring flights, making bookings and cancellation of flights among others. Once an organization gets to know and understand what their customer’s value and what they desire to attain full satisfaction then it facilitates their performance as the product delivery which in this case is always in form of services, will always be up to standards. Creating value for customers is an objective for all service providers. The southwest airline has integrated the use of different channels to reach out to the people (Churchill, 2001). They use media channels such as face book and twitter to keep contact with the growing demands of the customers. 5. How low cost no frills create a better value for its customers The airline industry as we know is a very competitive industry. Some downturn in economy led to thriving for low cost markets and no-frill airlines. This forced many airlines to look for new strategies to meet the new demands brought about by the downturn. Many travelers are cost sensitive especially for short flights and would seek airlines that offer mechanisms that drive down travelling costs. Customers only choose services that best suits their needs and in this case, ones that do not provide luxuries at extra costs. An airline that offers this kind of service will automatically attract large numbers of customers who will at any given time opt for that given provider as they find the offer convenient. The southwest airline company has taken to execute their business models through perfect strategic alignment. Among its strategies is providing low cost flights and ensuring that the customers get to their destinations at the lowest possible fares and enjoy the time they take to get there. With this the company is guaranteed that the customers will always fly with that airline. They are able to get the satisfaction they want and hold value for the amount they part with. The southwest airline fleet solely consists of Boeing 737s. They offer only economic seats not having either first class or business class. The staff morale is exceptionally high and this gives the customers pleasure in the kind of services they receive. It is even in the record that this airline holds the best cumulative customer satisfaction record for the past 18years. Other than that they also offer the lowest and most of all simplest fares, having the lowest operating cost structure in the US domestic airline industry (Sorensen, 2004). 6. Maintaining Profitable Long term relationships with customers The success of any other company is always based on the profits generated. These profits can only be acquired through the consumer’s consistent demands. Their demands will always vary and this poses a great challenge for the service providers in this case Boeing Aviation Company. It is important that an organization maintains good clients who will keep coming back for more. The type and quality of services that they receive are great determinants for this kind of relationship. The more the customers keep on coming back the greater the profits. Any consumer who chooses on a supplier should have in place trust that the services will be up to their expectations (Dunne, 2011). In turn there should be elements of respect among the two parties to maintain long lasting relationships. Long lasting relationships will always ensure convenience and satisfaction for the providers of service and those who receive the service (Parkinson, 2000). Without long lasting relationships the Boeing aviation company will have a big challenge of having to endure uncertainty in their financial gains. This may cause the company to underperform. The bottom line of maintaining customer long term relations is for increase in competitive standing and for greater profits. The amount of money that a customer spends with a company that drives their lifetime value to the company regardless of the duration in which they have been consumers of that organization. References Ayandutta. (2010, August 8). Packaging and labelling of Coca cola. Retrieved from Studymode: http://www.studymode.com/essays/Packaging-And-Labeling-Of-Coca-Cola-382035.html Brizek, M. (1998). Jet blue Airways Trouble in the Sky. Journal of Aviation Management and Education, 8-10. Churchill, A. (2001). Creating Customer Value Through bStrategic Marketing Planning. Netherlands: Kluwer Academic Publishers. Dunne, M. C. (2011). Retailing. USA: SouthWestern Cengage Learning. Kapferer, J. (1992). The New Strategic brand Management:Creating and Sustaining BEquity Long Term. Les Editions L'Organasation: London. Parekh, R. (2012, June 6). How Jet blue became one of the Hottest Brands in America. Retrieved from Ad Age cmo Strategy: http://adage.com/article/cmo-strategy/jetblue-hottest-brands-america/144799/ Parkinson, D. (2000, September 5). Maintaining Long Term Relationship with Clients. Retrieved from TechRepublic: http://www.techrepublic.com/article/maintaining-objective-long-term-relationships-with-clients/1028062 Perkins, E. (2009, February 23). Fees in the Future for South West. Retrieved from Smarter Travel: http://www.smartertravel.com/travel-advice/fees-in-the-future-for-southwest.html?id=2834063 Pride, M. H. (2008). Business. USA: Cengage Learning. Reiner, R. E. (2009). Introduction to Information Systems:Supporting and Transforming business. United States of America: John Wiley& Sons. Sorensen, J. (2004, March 15). Retrieved from Airline indurtry Annalysis: http://www.ideaworkscompany.com/wp-content/uploads/2012/05/PressRelease4LowCostCarriers.pdf Read More