Media Planning Case: JetBlue

By Group 13: Samantha Kafka, Alexander Regalado, Craig Kissoon, and Ayanna George Media Planning (ADV4300)

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Table of Contents 1. Executive Summary

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2. Marketing Objectives

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3. Advertising Objectives

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4. SWOT Analysis

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5. Company Background

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6. Media Mix and Brand Positioning

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7. Competitive Analysis

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8. Media Mix

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9. Share of Voice

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10. Target Audience

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Personality Profile

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11. Recommendations

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12. Media Strategies and Objectives

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Target Audience and Media Mix Objectives

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Target Audience and Media Mix Strategies

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Scheduling and Timing Objectives

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Media Budget Objectives

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Media Budget Strategy

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Geography Objectives

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Geographic Strategy

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13. Cost Summary

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14. Budget Recap

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15. Flowchart of Schedule and Budget Recap

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16. Summary

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17. Works Cited

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Executive Summary Indifference toward passengers is a major complaint received by businesses across the airline industry. Since its conception in 1999, JetBlue has operated under the mission to bring the humanity back into flying. The airline delivers superb customer service equipped with luxurious amenities. At the same time, the brand provides reasonable airfares in comparison to competitors. The product and price dimensions of JetBlue’s marketing mix are strong. The company would now like to grow the business through promotion. Marketing objectives include increasing passenger seat miles by five percent between key destinations. The spring and summer months present a lucrative opportunity to increase its share of vacation travelers by 5 percent.

Despite its position on cheap fares, JetBlue’s customer service and amenities enable the brand to target an affluent audience. The primary audience for JetBlue’s advertising will be frequent travelers in the United States aged 45-64. Advertising will aim to increase brand awareness and consideration in key markets. As outlined below, the campaign will use nontraditional, e-mail, television radio, social media and outdoor advertising.

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Marketing Objectives JetBlue’s primary marketing objective is to increase passenger seat miles by five percent between the following destinations: Boston and Cancun Buffalo and San Francisco Raleigh and Phoenix Syracuse and Barbados Portland (Maine) and Nassau Rochester and Jacksonville Chicago and Bermuda Burbank and Fort Lauderdale New York and Costa Rica Pittsburg and Montego Bay Raleigh and Long Beach (California) Phoenix and Jacksonville Charlotte and Bermuda New York (JFK) and Las Vegas New York (JFK) and Barbados Burlington and Orlando Salt Lake City and St. Maarten Baltimore and Aruba Seattle and Sarasota San Jose (California) and Cancun Sacramento and Santiago (Dominican Republic) Business travelers dominate 55 to 65 percent of revenue miles throughout the year. However, the spring and summer months mark a spike in vacation air travel. Where business travel drops 10 percent, vacation air travel increases by 30 percent. JetBlue intends to increase its share of vacation travelers by 5% over last year’s volume. To achieve the end goal of increasing passenger seat miles, JetBlue aims to capitalize on the vacation travel season. Coastal destinations are especially lucrative. Within the vacation air travel market, travelers to coastal destinations account for 25 percent of additional seat miles from May to August. JetBlue plans to generate a 25 percent increase in revenue by targeting multiple coastal destinations in the campaign.

Advertising Objectives The objective behind JetBlue’s advertising campaign is to increase awareness in key markets.

Although JetBlue is considered a major airline, the brand is small in comparison to competitors in this category of the market. Despite its growing reputation for customer service, the brand aspires to enter the top of the consumer’s mind in order to capture market share from more established brands. Differentiating the brand through a creative strategy and execution is another communication objective that will enable JetBlue to penetrate the consumer psyche. Social media has proven paramount to the brand’s current success. The airline is a leader in leveraging Twitter to announce deals and updates, addressing travel problems and managing customer relationships. Therefore, JetBlue will aim to increase social media presence to defend its leadership position in this area and to attract new business, vacation and recreational travelers. In addition to social media, the campaign will capitalize on mediums the brand currently uses, such as outdoors, nontraditional and e-mail advertising, and utilize not yet used mediums like television and radio.

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SWOT Analysis Strengths • • • • • • • • • • • •

Provides a comfortable ride for passengers with leather seats and extra legroom.

One of the only airlines to offer individual television sets.

Has quicker on-flight Wi-Fi service than competitors.

Is considered a major airline due to its three billion dollars in revenue.

Offers lower fares compared to competitors in the major airline category.

Offers one-class service to approximately 55 cities.

Strong Twitter presence.

Established great customer service.

Maintains a high percentage of on-time arrivals relative to other discount airlines.

Fewer reports of mishandled baggage than most carriers.

Fewest amount of passengers denied boarding due to overbooked flights.

Provides free on-flight snacks and beverages.

A key to JetBlue’s success lies in its ability to provide economical service without compromising customer service or comfort. The airline offers low fares to more than 20 states, as well as to Mexico, Colombia, and the Caribbean. At the same time, the brand provides amenities competitors often do not provide, such as individual television sets. Compared to competitors, some of these amenities are the best including JetBlue’s speedy Wi-Fi. The strongest factor in favor of the airline is its customer service. JetBlue treats passengers as guests rather than customers. The airline maintains a high percentage of on-time arrivals and few reports of mishandled baggage and overbooking in comparison to the competition in the major airline. The campaign could expose JetBlue as the brand that can deliver the elusive combination of economic value and hospitable treatment.

Weaknesses • • • • • • •

Overall customer’s dissatisfaction with airlines.

Limited amount of ports.

Schedules fewer flights in comparison to other carriers.

High level of debt.

Considered a minor airline in the major category.

Absence of television advertising.

Higher prices on flights in the discount airline category.

JetBlue’s weaknesses stem from a lack of availability and convenience, as well as poor customer service and debt. The airline has less available flights as compared to other airlines with fewer scheduled flights than its competitors. JetBlue has had issues with negative feedback from customers due to bad customer service. Another weakness that JetBlue faces is a high level of debt of $1.9 billion on balance sheets as of March 31, 2015, which is 41 percent of its total capital. Due to the airline’s total revenue, it is considered a minor airline in the major category.

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Opportunities • • • • • • •

Expand social media presence across the digital sphere.

Advertising on television.

Advertising in non-traditional platforms.

Expanding into spot advertising in major coastal cities.

Offering premium service on longer flights.

Appealing to members of a higher socioeconomic background.

Increasing share of market.

Because JetBlue is currently only on Twitter, opportunities to expand social media platforms for a more diversified approach to reach more of the target audience exist. Presently, the company has zero percent of its advertising budget spent in television, so the company has the potential to utilize it as a media vehicle. Because the brand has a strong presence in coastal cities, it can focus on spot advertising in these regions. JetBlue has the opportunity to increase share of market among its competitors.

Threats • • • •

Political uncertainty.

Economic trouble interfering with the ability to travel.

Safety concerns about air travel.

News coverage.

A threat to the airline industry as a whole is the political uncertainty that exists in the United States. Threats and attacks from terrorists toward the nation cause people to become hesitant about traveling via airplane. As news stories about missing airplanes and plane crashes continue to increase, people express concerns about the safety of flying. Another factor the airline industry has no control over is the economy. Economic limitations prevent people from traveling. People suffering from financial woes struggle to justify spending the money on airfares to go on a vacation.

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Company Background David Neeleman founded JetBlue in 1999. JetBlue operated under a business model that utilized secondary airports, so consumers could fly without hassle. Neeleman’s colleagues in the airline industry thought JetBlue would fail, but he had the last laugh by tapping into a trifecta: economy, comfort and customer consideration.

Customer consideration is the tenet the brand positions itself on. Neeleman treats his travelers like his neighbors. In 2007, he reinforced his dedication to humane service by introducing the “Customer Bill of Rights.” Any consumer can be compensated as retribution for horrendous service.

The brand entices people to fly JetBlue by offering low fares without sacrificing comfort. The airline serves 20 states, Mexico, Colombia and the Caribbean. Most flights arrive or depart from Boston, Fort Lauderdale, Orlando, New York City or Long Beach.

JetBlue topped the 2009 J.D. Power and Associates North American Airline Satisfaction Study for the consecutive fourth year. Social media plays a vital role in maintaining consumer relationships. The brand is a leader in terms of utilizing social media to address problems.

Passengers have filed complaints about delays, requested wheelchair access and challenged surcharges via Twitter. The ability to provide immediate and direct response has made social platforms useful tools for maintaining superb customer service.

In summary, JetBlue’s current marketing mix provides a solid base for the airline.

• Product: Economical service that does not compromise comfort with an emphasis on customer consideration and high service standards.

• Price: Low fares.

• Placement: Network of secondary airports to avoid the difficulties of traveling through major metropolitan areas.

• Promotion: Excellent execution of customer service and relationship management via social media platforms.

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Media Mix and Brand Positioning

JetBlue spends nearly a quarter of its budget on Internet-based advertising. In October, JetBlue uploaded a 16-minute film on YouTube titled “HumanKinda.” Featuring comedian Sam Richardson, the video satirizes the demands of modern life. Characters include a man juggling multiple part-time jobs and a working mother. Through Richardson, JetBlue encourages people to slow down and take a vacation. The campaign extends into a Tumblr page. The execution reinforces the brand’s position as an airline dedicated to bringing humanity into air travel.

After Internet-based advertising, JetBlue invests the second highest portion of its budget on outdoor advertising. In the same month as the “HumanKinda” campaign, the airline challenged people in New York to tear down bus shelter ads in exchange for free flights and merchandise.

The stunt was executed under the campaign hash tag #NYCTakeOff. Through humorous and quirky social tactics, JetBlue engages a rich social media following consisting of 1,077,489 Facebook fans, 1,939,033 Twitter followers, 63,525 Instagram followers, and 10,941 YouTube subscribers as of November 15, 2015.

JetBlue also utilizes local media by spending 13 percent of its budget on local radio and 12 percent on local newspaper. Less money is invested in national media: six percent in national newspaper and seven percent in national spot radio. The airline spends virtually no money on television.

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Competitive Analysis American Airlines In 1930, American Airways consolidated 80 small airlines owned by the Aviation Group. Four years later when C.R. Smith became president of the company, American Airways transformed into American Airlines. The airline switched headquarters from New York City to Fort Worth, Texas in 1979. American Airlines did not grow into the powerhouse it is today until after the AMR Corporation acquired it in 1982. The size of American Airlines presents an intimidating challenge to JetBlue. Operations are massive with more than 900,000 employees and 350 destinations in more than 50 countries. The airline serves roughly 530,794 passengers and performs roughly 6,700 flights daily.

American Airlines promotes its flight experience as light, vibrant and modern. The airline panders to the traveler who seeks fashion and functionality. A recent advertisement includes a broadcast commercial titled “New Plane Smell.” The ad calls attention to the brand’s promise to keep consumers as comfortable and connected. American Airlines has strongholds in the share of voice for consumer magazines (29.2 percent), network radio (49.7 percent) and Hispanic magazines (50.1 percent).

Southwest Airlines Rollin King and Herb Kelleher founded Southwest Airlines to get passengers where they want to go at the lowest possible fare and to ensure they have a good time in the process. In 1971, Southwest Airlines began offering service from its headquarters in Love Field Dallas. The airline competes closely with JetBlue in customer service. Southwest was the only airline to improve its position on customer dissatisfaction, according to the J.D. Power and Associates 2009 North American Airline Satisfaction Study. Similar to American Airlines, Southwest operates on a large scale. The airline is the nation's largest carrier in terms of domestic passengers. Southwest operates more than 3,600 flights daily and serves more than 100 million travelers annually.

Advertising establishes Southwest Airlines not merely as an economical option, but as the very inventor of low fares. The airline maintains a warm and humorous persona in promotions. A recent campaign from March highlighted human moments that audiences could relate to.

Southwest dominates the share of voice in television with 59.8 percent of spot television, 70.3 percent of syndicated television, 99.6 percent of network television and 100 percent of SLN television. The brand spends nearly 60 percent of its advertising budget on television.

Virgin America Virgin America is a relatively new agency making waves. Launched in 2007, Virgin acknowledges the shortcomings of customer service in the airline industry. Based at Terminal 2 in San Francisco’s International Airport, the airline aims to make flying fun again. Virgin serves 21 destinations in 11 states, the District of Columbia and Mexico. Virgin is another stiff competitor to JetBlue in the arena of customer service. In its brief eight-year life span, the airline

10 has received multiple accolades. The Airline Quality Rating Report has named Virgin the top airline every year since 2013. For the last two years, Travel + Leisure and Fortune’s Best in Business Travel Survey listed Virgin as the best domestic airline.

Virgin achieved notoriety for advertising on October 15, 2014 when the company uploaded a video to YouTube became Ad of the Day in Adweek. The video depicted a five-hour-and-46minute flight from the fictional BLAH airlines. BLAH airlines represented competitors and positioned Virgin as the fun and accommodating airline. 5.8 million people viewed the video.

Out of JetBlue’s competitors, Virgin holds the leadership position in Internet-based advertising at 12.9 percent.

Media Mix:

Share of Voice:

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Target Audience JetBlue aims to target high-class people internationally, regardless of its low cost tickets. The company’s philosophy is that there is no reason to pay more for a flight ticket when JetBlue provides the same luxuries for a low price. JetBlue’s primary audience consists of men and women, aged 45-64, who travel frequently in the United States. They are married with one to two children and have a household income of $100,000 or more.

Personality Profile

Lisa Lewis (to the left) is a 49-year-old finance consultant from New York. She is married with one child who is 19. Her household income is $300,000 a year. She enjoys traveling with her family to new places every year. Comfort and convenience are most important to her and her family when traveling. Lisa enjoys reading, playing tennis and learning new languages.

James Johnson (to the right) is a 61-year-old retired anesthesiologist from Los Angeles, California. He is married with two grown children in their 30s. His wife does not work, and he lives off the interest of his money. His household income is $400,000 a year. James and his wife love to travel for pleasure. They fly very often around the world and prefer to take an airline with great customer service. James enjoys wine tasting, cooking and eating an organic diet.

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Recommendations JetBlue could evolve its media strategy, add new marketing strategies and establish a new campaign with copy focusing exclusively on vacation travel. The company’s new campaign line could be “What is Your Paradise?” JetBlue may pose this question to its audience to prompt sharing on social media. The company could potentially run special promotions and deals in relation to its campaign. For example, JetBlue could prompt people to take pictures of their vacation to answer the question “What is Your Paradise?” JetBlue would then give away free flight tickets, discounted tickets and flyer miles to random people that posted pictures on their vacation with the #WhatIsYourParadise. This has the capability to promote social conversations about the brand as well as spread awareness about JetBlue. This new campaign should prompt vacation goers to fly JetBlue by connecting with its audience on a personal level.

In addition to social media, to spread awareness about the new campaign, JetBlue could host an event in May 2016 and pair sponsorship with The Ritz-Carlton, a high-end hotel resort company.

These hotels appeal to JetBlue’s target market and targets individuals around the same age and income bracket. The event could be at the Ritz-Carlton resorts in New York, Boston, California, and Fort Lauderdale because this is where JetBlue has its major terminals. The event would have free food, wine for guests and activities for kids. This could be an opportunity for the RitzCarlton to prompt people to take a vacation to visit its hotels and fly JetBlue. The hotel could offer discount packages that include hotel and air. The vacationers would travel on JetBlue to reach their destination. This could be a great opportunity for the brand to recruit new customers who enjoyed their flight experience and chose to fly JetBlue on their next trip, as well as boost the brand’s reputation as economically luxurious.

JetBlue could also continue its campaign with a non-traditional outdoor ad. This ad could prompt social media sharing and awareness in a unique and creative way. The non-traditional outdoor ad would be “nap pods” in the same form as airline seating. These nap pods would be all over the place in New York, Boston, California and Fort Lauderdale. The point to this ad is that it is very unexpected and different than what JetBlue’s competitors are doing. It also appeals to the target audience of people in their 40s-60s who are either tired from working all day or are retired and need a rest from walking around. These seats would showcase JetBlue’s comfort, care and luxury for its customers. These nap pods would be enclosed and comfortable with drink holders, air conditioning and heat depending on the season.

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Media Strategies and Objectives Target Audience and Media Mix Objectives The target audience goal for this campaign is to effectively target the men and women aged 4564 in the United States. This audience is comprised of married people with children with a household income of $100,000 or more. JetBlue seeks to influence members of the target audience to take vacations through a creative non-traditional campaign. The campaign will promote sharing on social media and raise awareness to JetBlue’s benefits among vacation travelers to boost brand consideration.

Target Audience and Media Mix Strategies JetBlue aims to increase its share of vacation travelers by 5% over last year’s figures. The brand has been successful reaching its target market through Twitter. Because the brand has been successful advertising on social media, this campaign will increase JetBlue’s social media presence on Google+ and Facebook, as well as to continue to target users on Twitter. The content will be desktop and mobile friendly because according to the Adobe 2013 mobile consumer survey, 71 percent of users utilize a mobile device to access social media. JetBlue will primarily utilize these three social networking websites because it is where its target audience is most prominent. According to the Adobe 2013 mobile consumer survey, 79 percent of men and women aged 55-64 use Twitter, and 56 percent of people aged 45-54 use Facebook. Due to the large amount of time spent online, JetBlue should utilize paid search such as Google AdWords.

It should also continue to utilize email marketing as a way to advertise promotions and facilitate awareness. According to a study by McKinsey, email marketing is nearly 40 times more effective at gaining customers than all social media sites combined and customers that are gained by email are 12 percent more valuable than the average customer. Another media JetBlue should utilize is television. Although the TV usage of millennials is declining, it is still popular among JetBlue’s target demographic. According to the Washington Post, “The median age of a broadcast or cable television viewer during the 2013-2014 TV season was 44.4 years old, a 6 percent increase in age from four years earlier.” JetBlue should continue to spend money on local spot television in order to reach its target audience. JetBlue should utilize outdoor advertising as well as non-traditional advertising. The brand has been successful with its non-traditional ads, which has brought awareness by being spread through social media. Billboard ads are also still proven to be effective. According to Forbes, “On average each of us spends upwards of 20 hours per week and travel more than 200 miles per week” in a vehicle. Although billboards are an effective means of advertising that JetBlue should consider, the airline would benefit most from non-traditional ads. Due to the large amount of time that people spend driving, JetBlue should also advertise on radio regarding vacation travel opportunities. Travel + Leisure and Vacation Agent magazines are an opportunity for JetBlue.

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Scheduling and Timing Objectives JetBlue’s “What is Your Paradise?” social media campaign will run from November 2015 to August 2016. The sponsorship event at the Ritz-Carlton will be hosted through the month of May 2016. The non-traditional “nap pods” will be placed from December 2015 to May 2016.

Scheduling and Timing Strategies JetBlue’s “What is Your Paradise?” campaign will run from November 2015 to August 2016 with the goal of generating social conversations about the brand for winter, spring and summer vacations. This way people planning on taking trips at different times will have the opportunity to win JetBlue perks.

The Ritz-Carlton’s sponsorship event will be hosted throughout the month of May 2016 in preparation for summer vacation when kids are out of school and the parents are planning on taking summer family vacations.

The non-traditional “nap pods” will be placed from December 2015 to May 2016 so that it is long enough for people to notice and spread throughout social media, but not too long that it will get old and played out.

Media Budget Objective To increase the brand experience and engagement by 50 percent using media the brand currently occupies, which includes outdoor, non-traditional and digital advertising, as well as utilizing television and radio advertising.

Media Budget Strategy The media budget consists of seven components: digital, television, production, public relations, print, radio, and guerilla, as well as a contingency allowance.

Taking 21 percent, the digital budget will cover three categories, online, social media, and e-mail marketing. Online strategies include the placement of banner ads, interstitials, and mobile advertising on popular travel-oriented websites. The online portion also supports a considerable amount of paid content for JetBlue’s social media platforms Twitter, Google+ and Facebook.

The television spending makes up 38 percent of the budget. It will cover spending for four local television spots playing at a frequency of three. These four spots will be geared toward the four target markets: New York, Boston, California and Fort Lauderdale.

The production aspect of the campaign, which is six percent of the budget, will be spent on television pre-production, production, and post-production.

15 Eight percent of the budget covers public relations, which will cover social media promotions (including 10 free flights and other premiums and giveaways) and the Ritz-Carlton events that will be held in New York, Boston, California and Fort Lauderdale.

The print medium will make up six percent, consisting of a full-page color spread in Travel + Leisure magazine, which will have a reach of approximately 2.6 million people. Another fullpage color spread will be featured in Vacation Agent magazine, reaching an audience of approximately 70,000 per month.

Budgeting four percent to radio, advertisements will be placed on national spot radio. The schedule will be pulsed over a total of four weeks in the main markets, averaging about 20 commercial spots per week.

Guerilla advertising, comprising of 10 percent, includes 100 nap pods per market (400 total) and digital billboard space.

The media budget allows for a 200,000-dollar contingency, which factors seven percent of the overall budget.

Geography Objective The geography objective is to reach JetBlue’s target market through the primary markets: New York, Boston, California, and Fort Lauderdale.

Geography Strategy The events will take place in JetBlue’s four primary markets because this is where JetBlue has its main terminals. These will be the most effective markets to reach the target audience.

Cost Summary Digital'600,000.00 Online&&&&&&&&&&&&&&&&&&

200,000

Social&Media&&&&&&&&

250,000

E2mail&Marketing&&

150,000

Television'1,100,000.00 Local&Spot&(4)&&&&&

1,100,000/275,000&each

Production'165,000.00 Commercial&&&&&&&&& PR'224,000.00

165,000

16 Promotions)))))))))) Flights&&&&&&&&&&&&&&&&&&

6,000

Ritz2Carlton&&&&&&&&&

200,000&total/50,000&each

Print'170,000.00 Travel&+&Leisure&

148,000

Vacation&Agent&&&

22,000

Radio'128,000.00 National&Spot&&&&&&

128,000/32,000&each&week

Guerilla'272,000.00 Nap&Pods&&&&&&&&&&&&&

240,000

Billboards&&&&&&&&&&&&

32,000/8,000&each

Contingency*100,000.00 Total'2,759,000.00'

Budget Recap

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Flow Chart of Schedule and Budget Calendar

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Summary JetBlue is an airline company, founded in 1999, that offers low fares without compromising on comfortable experience. The airline serves 20 states, Mexico, Colombia and the Caribbean. In 2007, the founder David Neeleman established that JetBlue would be dedicated to humane service, providing the customer with quality treatment and regarding his travelers as if they were his neighbors.

JetBlue intends to increase its share of vacation travelers by 5% over last year’s volume, launching a campaign aimed to increase awareness in the key markets of New York, Boston, California, and Fort Lauderdale.

An evolved media strategy would establish a campaign aimed to: • •

increase social media presence to defend its leadership position in this area and to attract new business, vacation and recreational travelers. capitalize on mediums the brand currently uses, such as outdoors, nontraditional and email advertising, and utilize not yet used mediums like television and radio.

The “What is Your Paradise?” campaign offers an innovative and unexpected method compared to what JetBlue’s competitors are doing. By selecting a target audience of adults, aged 45 to 64, the new campaign would prompt vacation goers in this age demographic to fly JetBlue. This is achieved by boosting the brand’s reputation of connecting with people on a personal level, as well as capitalizing that JetBlue’s service is economically luxurious.

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