Pricing strategy of Southwest airline in the US - Essay Example

Pricing strategy of Southwest airline in the US Southwest airline is among the largest airlines in the United States (US). It commenced business in 1971 with three Boeing 737 aircrafts. Over the years, Southwest airline has grown markedly and currently operates more than 350 aircrafts. Southwest airlines motto leads, “keep cheap and keep it simple” which has contributed much to its success. To differentiate from the competitors, Southwest offers point-to-point flights that last only for few hours.

This essay concerns how southwest airline can differentiate and position its services to meet the needs of elite business class travelers. Due to intense competition from other competitors, Southwest airline should project its image carefully such that it differentiates its services from those of the competitors (Simmons, 2008). It should position itself as a point to point short haul carrier. The airline should offer separate check-in areas that offer snacks, drinks, internet access, nap rooms and even showers.

While on board, a seat should be a flat bed seat that can recline to 180 degrees- parallel to the floor and one that can guarantee good sleep. The passengers should be served with menus with wide choices. More so, they should consider offering pre-order services where one can place an order before flying. Entertainment for elite business class should also be exceptional probably with a television fixed to the passenger seat or passenger offered with DVD players at will. In addition, passengers should be availed with internet access such that they can still transact their businesses even when on board.

Pricing strategy Considering that everyone is cost sensitive, Southwest airlines should embrace a pricing strategy that offers competitive prices for its target market. It should not only compete with other airlines, but also with other forms of transport. For instance, a wealthy business executive may have a number of options such as either board a hired aircraft, top of range motor vehicle, or use the airline; all offering similar services, but ends up using the airline after considering the cost factor.

However, the airline should ensure that it offers the facilities needed by the executives at lower costs which on the other hand could guarantee reduction in overall costs to the airline.Promotion strategy Southwest should distinguish its promotional strategies from those of its competitors by ensuring insightful knowledge of elite business class needs and the ways in which such needs could be translated into the desired services. Nonetheless, the airline should embrace the basic promotional methods such as running televised and print adverts that are more accessible to many people (Skipper& Hyman, 1990).

As noted, many airlines reward their customers based on miles flown and in this case, Southwest airline should consider a different mode such as number of trips taken, which could eventually lead to regular use of its aircrafts by the clients. Product strategy Many airlines use agents to distribute their products. Therefore, to maintain an edge in this competitive industry, Southwest airline should try direct marketing which includes use of internet or direct phone calls to the business executives.

However, with increased use of technology, Southwest should consider e-ticketing which could totally eliminate process and print ticket. This technology could help the business class to book the airline and make payments online and only show up for the flight.Place Strategies Southwest idea of offering point to point travels could give a competitive edge over its competitors as this could avoid waste of time on inter-flight connection. In addition, many business people would wish to travel directly to their destinations.

More so, due to its large fleet, Southwest airlines not only offer flights in US, but also connect many other cities all over the world. Conclusion Southwest offers unique services that make it stand out from its competitors. It has been successful in establishing a loyal customer base with its exceptional customer service. To succeed in this industry, Southwest should know that not only the strategy of doing it better will lead to success, but also doing it differently. ReferencesSimmons, G. (2008). Marketing to postmodern consumers: introducing the internet Chameleon.

European Journal of Marketing, 42(3), 299-310.Skipper, R. & Hyman, M. R. (1990). Marketing and Logical Deduction. Journal of Marketing, 54 (2), 89-92.