jetBlue media plan 2012
Becca Adams, Kirstie Casta単eira, Gillian Cronin, Will Crum, Lily Fu
contents executive summary situation analysis
target audience analysis
media objectives and strategies
the big idea
target audience and media mix
reach, frequency and GRPs
scheduling and timing
executive summary While the airline industry is increasingly competitive, jetBlue has consistently offered its customers a high quality experience at a low cost. It has been recognized time and again as a “Top Low Cost Airline for Customer Satisfaction” and for its “Best Coach-class Experience.” Catering to 60 destinations in 12 countries, jetBlue is a familiar and respected brand both nationally and globally. SoFly advertising specifically wants to encourage jetBlue vacation travel with our new campaign. We intend to increase passenger seat miles by 5% in the spring and summer months as well as improve jetBlue’s share of vacation travelers overall. We propose a primary target audience of both men and women professionals ages 25-34. These individuals are tech-savvy business travelers that also have expendable income for leisure, but they are often shy from treating themselves because they consider the vacation they want as prohibitively expensive and hate compromising on quality. To dispel these perceptions and position jetBlue as the solution, we will use an integrated media campaign including magazine and newspaper print, television, social media and internet ads nationally and in key spot markets to obtain 247 GRPs in peak months, with a reach of 83 and frequency of 3.
situation analysis the airline industry
Airlines have collectively lost around $55 billion in profits over the last 10 years, stemming from volatile jet fuel prices which account for 35% of an airline’s yearly operating costs, the 20% tax burden on airline profits levied by the U.S. government each year and flucuating demand. However, current data indicates that the airline industry is on track to post 3.5% annual growth in 2012 and demand is projected to rise from 730 million passengers in 2011 to 1.2 billion in 2032. However, as passengers have increased, costs have only gone up. If inflation adjusted fares had not dropped 17% in the last decade, it is believed that domestic travel would have decreased, as low-cost competition continues to come to the fore. A report by online financial company Mint indicates that car drives of less than four hours are more cost-effective than flying. Additionally, a 2005 study from the University of Cornell concluded that the added hassle of post-9-11 security restrictions resulted in a 5% passenger decline. Because of a lack of low-cost alternatives, international air travel has less elastic demand. As airlines battle waning consumer perceptions and rising variable costs, they must also compete with each other. The traditional “Big Four” airlines (Delta Air Lines, United Airlines, American Airlines and US Airways) along with Southwest Airlines account for an 80% share of market (in terms of revenue) and 84% of passengers in 2011, leaving all other carriers with a fifth of the market and even less of its clientele. Southwest and American managed to maintain profits their position as market leaders during the peak of the recession. With tight competition in a market with a seemingly non-existent profit margin, major airlines are forced to match each other’s low fares and to make up their revenue gap with ancillary costs (baggage fees, cancellation and flight change fees, etc.), which tend to leave passengers feeling increasingly maligned and further debases consumer sentiment.
domestic market Automotive travel is the top choice for travel within the US, with 70% of respondents in a 2010 Mintel survey indicating it as a mode of transportation they had used recently. Air travel comes in a distance second, with 32% reporting recent use domestically. 65% of respondents cited economic factors as the primary impediment to vacationing, claiming that they could not afford leisure travel of any form in the past year. Out of those who did travel, 25-44 year olds were more likely to travel for business reasons, while those 45+ were more likely to travel for pleasure. Business travel fell 6% by volume and 12.5% in terms of spending in 2010, generally attributed to the increasing use of cheap alternatives like video conferencing. Despite falling fares, this trend is expected to continue. Out of those who had recently made travel bookings, 40% of them did it online, while only 7% used traditional travel agents. Instead, travelers followed the trend of an increasingly connected world: 33% cited word of mouth recommendations made by friends as the primary factor in their decision making process. Top domestic destinations by state include Florida (13%), California (11%), Texas (7%), Nevada, New York
jetBlue’s market position JetBlue Airways is not merely selling a means from A to B, but what it describes as the “jetBlue Experience.” jetBlue strives to give its customers the best value for their dollar and aim to prove that competitive fares and quality air travel need not be mutually exclusive product they can provide on reasonable fares, cramming value into their customers’ purchases. Eager to expand its customer base, jetBlue’s self-proclaimed marketing objectives “are to attract new customers to our brand and give our current customers reasons to come back to us time and time again.” They pursue this goal by offering competitive prices that still ensure a high quality experience and promoting it accordingly: In 2011, the airline spent $57 million in promotions, a figure that has risen by $2 million per year since 2009.
the brand JetBlue is a familiar and respected brand both nationally and globally, which brings further value to its product. Brand equity is high, and the superior quality and value of the “jetBlue experience” has been acknowledged by the industry. In 2011, jetBlue received numerous impressive awards, including being voted “Top Low Cost Airline for Customer Satisfaction” by J.D. Power and Associates for the seventh consecutive year. They were also accredited with awards like “Best Coach-Class Experience”, “Most CustomerFriendly Airline” and “Best Value Airline-Domestic” in the SmarterTravel Editor’s Choice Awards for 2011. In its 2011 annual report, jetBlue accurately states, “we believe [global recognition] differentiates us from our competitors and identifies us as a safe, reliable, value-added airline.” One way in which jetBlue measures its success is by net promoter score, or NPS, which is a customary measurement used to gauge customer experience. According to Satmetrix, the were recognized as the leader in for customer loyalty in the airline category for the second year in a row.
promotion vehicles The main vehicle that the company uses for promotion is its eponymous website, www.jetblue.com. It is the lowest cost media vehicle and is designed with customer experience in mind. Some alternate vehicles that jetBlue utilizes are social media, like its Facebook and Twitter accounts, larger events like local events and sponsorships and mobile ads.
industry position In the United States the airline industry is a very competitive and unpredictable industry. Historically, it has been dominated by the chief U.S. airlines, including dominant market share holders United Air Lines, Delta Air Lines, American Airlines, Southwest Airlines and US Airways. The Department of Transportation defines these as airlines with annual revenues of at least $1 billion. Currently jetBlue is one of the 12 airlines that meet these criteria.
Among these jetBlue has a smaller fiscal backing and therefore operates as a low-cost carrier on a regional scale. This comparatively smaller financial pool means that jetBlue cannot afford to be as consistently competitive as those airlines with deeper pockets.
geography JetBlue does not cater to the entire US. The cities that accrue the bulk of the airline’s revenue include New York, Boston, Long Beach, Orlando, Fort Lauderdale and San Juan, Puerto Rico. JFK in New York is far and beyond jetBlue’s largest hub and the area in which the majority of the airline’s flights depart and land.
positioning JetBlue’s mission is “to bring humanity back to air travel” and it aims to become “America’s Favorite Airline” for the benefit of its customers, shareholders and employees alike. To achieve this goal, the airline strives to adhere to five key values: “Safety, Caring, Integrity, Fun and Passion.” Providing excellent service and a high quality experience for a lower cost is something that differentiates jetBlue from other passenger airlines.
seasonality The passenger airline industry is significantly affected by seasonal fluctuations in demand, which are compounded by regional differences. Florida is one of jetBlue’s most profitable seasonal destinations, producing high revenues between October and April for vacation and leisure travel. For its western destinations, peak season occurs during the summer months. The numbers for other months tend to be much more unstable when events like snowstorms and hurricanes threaten air travel. Operating mainly on the east coast, jetBlue is more likely to see a considerable drop in its yearly revenue due to an unusually inclement winter than many of its competitors.
Traditionally, jetBlue has a strong emphasis on leisure travel, further contributing to its seasonal fluctuations in revenue. However, jetBlue experiences less seasonal variation in demand in its newer markets abroad, such as Latin America and the Caribbean. This is due mostly to “a mix of leisure and visiting friends and relatives, or VFR, travelers…who tend to be slightly less seasonal and more recession resistant than traditional leisure destinations.”
the competition The principal competitive factors in the airline industry are fares, customer service, routes served, flight schedules, types of aircraft, safety record and reputation, capacity, in-flight entertainment systems and frequent flyer programs. JetBlue competes with other airlines as well as other modes of transportation. The passenger airline industry in the United States is very competitive industry, dominated by several major airlines with annual revenues of at least $1 billion. Southwest, United, American and Delta airlines are jetBlue’s primary competitors, while secondary competitors consist of other less-comparable small-scale, regional airlines, trains, buses and cruise ships. When considering airline on-time performance, flight delays and cancellations, it was reported in the October 2009 Air Travel Consumer Report that 82.9% of jetBlue flights arrived on time, 79.4% of Delta flights arrived on time, 77.8% of Southwest flights arrived on time, 76% of American airlines flights arrived on time and 75.1% of United flights arrived on time at all reportable airports. At the same time, United cancelled only 0.2% of flights while jetBlue cancelled 0.3%, Delta cancelled 0.5%, Southwest cancelled 0.6% and American airlines cancelled 0.7% of flights in October 2009.
At a glance... Brand
Top Media Spending
Business travLow-cost elers/ (leader) professionals, price/costconscious, families
“A Symbol of Freedom”
Network, Spot, SLN, Cable TV, Internet
Cost and value- Full-service conscious, airline business travelers
“Let’s Fly Together.”
Spot, Cons mags, National radio, Local radio, online
Business travelers, American employees
“We know Spot, Cable, Cons why you fly.” mags, online
Business travelers, frequent flyers, international flyers
Best-in-class “Keep cost strucClimbing.” ture, costumer experience
Cons mags, National newspaper, local newspaper, internet
southwest airlines Southwest Airlines is the largest low-cost carrier and the largest airline in the United States based on domestic passengers carried. Southwest employs over 46,000 people and operates more than 3,400 flights per day with scheduled service to 77 destinations in 40 states. Southwest has been a model for other low-cost carriers which has been used many times around the world. Southwest’s competitive strategy combines high level of employee and aircraft productivity with low unit costs by reducing aircraft turn-around time particularly at the gate. They have also maintained excellent customer satisfaction ratings and had the lowest number of customer complaints of all U.S. airlines according to the Department of Transportation. For example, one benefit includes offering free in-flight beverages and complimentary snacks on all flights.
TV Commercial: “Bags fly free” In the campaign by GSD&M, real Southwest employees run out on the runway and display their “Bags fly free” message to a competitor’s jet.
Newspaper Ad: “Hidden fees” A newspaper ad displays the hidden fees of the other airlines when you hold the paper up to the light in comparison with the flat rate that Southwest offers.
united airlines United Airlines merged with Continental Airlines in 2010 to form the world’s largest airline in terms of number of destinations. The company boasts the world’s most comprehensive global network, with 229 domestic and 149 international destinations. With 63 countries served, 5,557 daily departures and over 88,000 employees, United has been rated the world’s most admired airline on FORTUNE magazine’s 2012 airline-industry list. United offers a frequent flier program called MileagePlus that gives rewards for consumer loyalty, including elite travel benefits and a variety of credit card and retail partners. There are also United Clubs in select airports that offer members complimentary bar service, snacks and business amenities.
Print Ad: 2012 Olympic Sponsorship These ads by McGarrybowen focus on the tagline: “Before they move us, we move them.”
TV Commercial: Rebranding after Continental Merge After a small logo change, United debuted its new brand identity with a focus on the idea that they now offer more to customers. “Who’s merging isn’t nearly as exciting as what’s emerging.”
american airlines American Airlines operates an extensive international and domestic network, with scheduled flights throughout North America, the Caribbean, South America, Europe, and Asia/ Pacific and ranks as the airline with the third-largest number of international destinations. American Airlines has a fleet size of 605 with a total of 260 destinations. Their on-board service is not quite as impressive; flights two hours or longer have snacks, and flights three hours or longer have sandwiches. American Airlines announced the launch of their direct flight to Shanghai from Chicago by having street teams distribute fortune cookies to business professionals. Each cookie contained a customized message such as â€œNonstop to Shanghai on American Airlines, your perfect matchâ€?. Ten brand ambassadors distributed 100,000 cookies over 6 days to highly receptive Chicagoans.
American airlines placed ads on buses to advertise trips to specific destinations.
These black and white print ads emphasize Deltaâ€™s commitment to customer needs and satisfaction.
delta airlines Delta Airlines is the worldâ€™s largest airline in terms of fleet size, revenue passengerkilometers flown and scheduled passenger traffic. It serves all continent except Antarctica, operates over 5,000 flights every day and employs over 75,000 people. It is the sixth-oldest operating airline and the oldest airline still operating in the United States. Delta also has a high commitment to high wages for employees, lifetime employment and a family culture which in turn allows them to deliver high-quality, consistent service.
Out of the four main competitors, Southwest spends the most on advertising, while jetBlue spends the least. Southwest spends the most on network television, United spends the most on online advertising and American Airlines spends the most on consumer magazines. Delta also spends the majority of their advertising in consumer magazines, but neither Delta nor jetBlue are leaders in spending for any of the media outlets.
In the past, jetBlue has been successful in targeting consumers ages 25-44 and 55-64 who predominately travel for business. In fact, the median age of jetBlue customers is 44, which is slightly lower than its competitors. These consumers’ professions are primarily in legal, computer and mathematics-related fields, as well as education training and library occupations. Generally, their household income is $100,000 or more. Most of these consumers are located in the New England and Middle Atlantic regions of the country. We intend to expand jetBlue’s reach by targeting consumers of other low-cost carriers. We will remain focused on consumers located in the same market regions because logically we should only target areas that jetBlue covers. After looking at MRI data for low-cost carriers and comparing it to jetBlue’s data, our new target audience consists of people with professional, management business and financial, and engineering occupations. These consumers are younger than the median age of current customers and make less income, but they are on the fast track to success and have high ambitions. Finally, we would like to encourage current jetBlue business travelers to consider traveling for leisure as well.
what customers are saying In February of 2007, jetBlue received intense media coverage for stranding passengers on the tarmac during a snowstorm at the JFK airport. The event came to be known as “St. Valentine’s Day Massacre.” Post-crisis, jetBlue created their customer Bill of Rights, which helped dilute the bad press. A similar but less severe issue occurred in 2011, again due to snow. While these disasters could happen to any airline, jetBlue handled theirs admirably and has learned the importance of handling direct response from unhappy customers. Overall, jetBlue is seen as a “first-class” airline with manageable coach prices. Customers appreciate jetBlue’s direct flights, premium snack choices and unparalleled customer service. Other commonly gloated perks include jetBlue’s free bag check, easy check -in process and personal seatback TVs at every seat. Customers also like that they can upgrade their seat and get more legroom for a low price.
Among the complaints customers have, the biggest grievance is that jetBlue doesnâ€™t offer many options for missed flights. While nonstop flights are favored, this makes it difficult for the airline to handle delays or cancelled flights. In addition, while customers wish for more destinations, they worry that customer service will plummet as jetBlue expands into the major carrier market.
demographic Our primary target audience consists of both men and women ranging in age from 25-34. They are employed professionals with a household income ranging from $30,000-$75,000 who are aiming to earn $100,000+ in the near future. They have earned a college degree or higher. Ethnically, these individuals are more likely to be of Asian descent. These consumers are more likely to be couples than singles, and based on the overwhelming data showing higher than average amounts of baby product purchasing, we can assume that the average jetBlue user has children and is willing to spend on them. Most of them live near cities in the New England or Mid Atlantic part of the United States.
psychographic The types of people that fly jetBlue are business professionals that are tech-savvy and sophisticated. They are invigorated by the newest technologies, relish being up-to-date on new products and are likely to rely on technology to keep organized. They value cultural experiences and are more likely to try new things than the average person. These individuals are the calculated risk takers. They always do research before trying a new product. Their friends often rely on them for advice when making purchases. They seek a higher social status and tend to buy products that reflect their personal style. They are also very health conscious. While convenience is important to them, these people prefer to use organic and fresh ingredients because they can afford it. When making purchases, they are pleased to pay less as long as they donâ€™t compromise their standards.
target profile The Upwardly Mobile Millennial Alice Wu is a 27-year-old woman who lives in a two bedroom apartment in Queens, NY. Her parents were first-generation immigrants from China, and she was the first of her family to be born in the United States. She commutes from her residence in Woodside to Manhattan every morning to work as a computer programmer at IBM. She is currently making $55,000 a year. Alice has a steady boyfriend, Ian Hill, whom she has been dating for four years. While plans of marriage are in the future, they are both still focused on their careers. The two enjoy eating out on the weekends at fresh local restaurants; they always research the restaurants online beforehand. Aliceâ€™s parents taught her how to be conservative with money, and she considers herself an expert at finding deals -- but she still likes to occasionally splurge on the newest technology. In her spare time, Alice enjoys going on jogs with her dog, doing yoga and reading up on her favorite business magazines. She also enjoys pampering herself with facials and doesnâ€™t mind stretching her budget for high-end beauty products at specialized shops such as Sephora. She always keeps her calendar updated on her new iPhone 5 and is not ashamed to admit how many productivity apps she has downloaded. She loves that her iPhone allows her to post updates via Facebook, Twitter and FourSquare and also allows her to update her travel blog from wherever. Her personal space is filled with Apple products, and when sheâ€™s not working she indulges in New Age music. In the future, Alice hopes to find time to visit her parents in San Francisco and perhaps vacation with Ian in the Caribbean.
target profile Diego Valdez is a 32-year-old lawyer living in Washington, D.C. He met his wife, Ellie, in undergrad at Columbia. They now have a beautiful home just big enough for them and their two children who are both under the age of 6. Diego is currently working on further certification for his professionâ€”online, so he can spend more time with the kids. He proudly spoils his family by buying them the latest Apple technology and high-end beauty products Diego enjoys gambling leisurely but in places like Connecticut as opposed to Las Vegas. He takes interest in trying less mainstream sports like windsurfing and kickboxing. At the end of a long day, you can find him sipping on Irish whiskey at the local country club. Politically, Diego leans left. When not working, he loves to be with his family on the water in their new powerboat. Diego is the manly man his family needs him to be while still stressing the importance of health to his kids.
· Superior value
· Low market penetration
· Great customer loyalty
· Small market share
· Strong social media following
· Small share of voice
· Commitment to service
· Limited number of destinations
· Unique customer “Bill of Rights”
· Poor response to cancelled flights
· Comforts and amenities · Popular with Asian and Hispanic populations
Opportunities · Domestic demand projected to grow · Growing influence of W.O.M. recommendations · Stable demand for international travel
Threats · Struggling industry due to weak economy · Fluctuating domestic demand · Volatile fuel prices · Decreasing competitor fare prices
· Active social media following as compared · Increasing variable costs · Consumer distrust and annoyance with anto other airlines cillary costs · Automotive travel more cost-effective (for trips <4 hours)
media objectives and strategies the big idea You work hard, and you deserve to get away. But you shouldn't spend the first few hours of your trip feeling like livestock jammed into a freight car. With jetBlue, the vacation starts the moment you get on board -- and without breaking the bank.
target audience and media mix Objective To increase the number of young professionals booking their value vacation air travel with jetBlue by 5% via an integrated media campaign that makes vehicles of highindexing television programs and magazines as well as relevant travel websites.
Rationale Because adults 25-34 index higher as customers of low-cost carriers than any other type of airline, we can infer that each psychographic data index positively correlate with this demographic group. In each media segment detailed below, vehicles were selected because of their high index numbers, as indicated in the corresponding chart.
Strategy: Consumer Touchpoints As our target market chiefly consists of young professionals, some consumer touch points would include public transportation sites, city blocks, office spaces, and happy hour spots where our market would already be dreaming about the next day they did not have to wake up at the crack of dawn to slave away at their work desks.
By positioning our messaging in locations so disparate from the relaxation and comfort of a good getaway, we expect to achieve a powerful resonance with our audience. As half-formed vacation plans begin to take shape, jetBlueâ€™s ads will be the extra push to affirm them by reminding consumers how attainable an affordable vacation can be.
Digital Strategy Our target audience index high as heavy Internet users, are proactive users of technology and like to plan ahead. Therefore, travel planning sites will be another valuable consumer touchpoint to leverage. We will buy banner placements on Kayak, Expedia, Orbitz, Travelocity, Hotels.com, Priceline and Hotwire in April and July, months we have identified as heavy planning months because they immediately precede the targeted vacation sales window. These placements are of a high priority, running into our non-broadcast months and making up a considerable portion of our budget. Additionally, we will be placing bids on search keywords on Google AdWords relevant to those searching for a vacation or air travel. Overall, our digital strategy can be boiled down to getting our message about a better way to fly out to those looking for it -- even if they donâ€™t know they are looking for jetBlue.
Media Buy Altogether, ad placements on these targeted travel sites will account for 60 GRPs per month for four months, or $5,676,000.
Magazine Strategy Below we have listed our choices for magazines that will most benefit jetBlueâ€™s increased sales objectives. These all indexed well above average among our target for 25-34 professionals who fly low-cost carriers. A large portion of our advertising budget will be designated toward magazine efforts due to the benefits of this medium. Our target is not a group of extremely impulsive consumers, therefore concentrating our small budget towards short-lived advertising will not be the most beneficial decision.
Vehicle Magazines -Mens
Men's Golf MagaHealth zine Magazine
Magazines Economist -General Interest (Index #)
Vanity Fair Women's Health Magazine 155
Food & Wine
The New ArchitecturYorker al Digest 180
Media Buy We decided to run half-page, full color ads in each of the magazines below with higher frequency in magazines whose composition contains more of our target market. Publications like The Economist, Forbes, and Wall Street Journal index high among our young professional demographic, as well as more interest-related magazines like The
New Yorker and Fast Company. By advertising in Golf Magazine, we will achieve some integrated media synergy among an audience that indexes very high in both reading about and watching golf.
Frequency of Ads for Given Cost
Men’s Health Maga-
Women’s Health Mag- 177,605
The New Yorker
Food & Wine
TV Ads Strategy Our buys in the television medium will be focused in the months of April and June, as they mark the onset of the spring and summer vacation planning periods. By using a spot-heavy method combined with a few late night segments, SoFly will not soak up the entire budget on television commercial ads.
Media Buy We will run several :30s in April and :15s in June during prime time in our spot markets, as our consumer group indexes high for prime time comedies like The Office and 30
Rock. In these same months, SoFly will also place ads in early and late fringe/news spots in these same spot markets.
On national network television, we will be running :15 ads during Wimbledon in June. The timing for this coincides with our spot heavy ups and allows jetBlue to continue to remind potential consumers to book their vacations with us, as our target segment indexes high for watching tennis, in addition to golf. SoFly will also places buys during late night programming such as the Late Late Show and Saturday Night Live. Vehicle Net TV-L Nite/L News
(Index #) Net TV-Sports*
ters (Index #)
* (Appendix: Sports Spots)
Newspaper Strategy Although our target audience is more tech-savvy than the average consumer, that does not mean they have totally foregone more conventional news sources. Users of low-cost carriers as well as existing jetBlue customers both index well above average for reading two or more daily and Sunday newspapers, indicating that this oftmaligned medium is still a relevant touchpoint.
Media Buy To maintain a broad reach and stay top-of-mind in our audience in the two off-pulse months of our broadcast campaign, we will run full-page inserts in national newspapers in May and July, with a total cost of $1,395,700.
Low Cost Carrier Fliers That
Are heavy readers of newspapers
Read any two or more daily newspapers
Social Media Strategy Compared to other airlines, jetBlue is top-notch in terms of customer engagement in the social media hemisphere. With more than 6.9 million Twitter followers and more than 500,000 Facebook likes, jetBlue ranks above all other airlines in terms of social media influence. While jetBlue already utilizes Twitter effectively by quickly responding to customer complaints and tweeting sales promotions with its handle @jetBluecheeps, jetBlue has yet to take advantage of the higher degree of engagement that occurs on Facebook. Therefore, we will be leveraging jetBlue’s Twitter audience by beginning to link more to interactive content on jetBlue’s Facebook fan page. Over the course of the campaign, we plan to maintain a steady social media presence. In March, along with the introduction of our guerilla advertising, we would like to host a user-generated sweepstakes on Facebook centered around the idea of unexpected comforts. The prompt will encourage followers to upload a photo of them finding comfort in unexpected places. In order to be considered for the grand prize, the users must like the jetBlue page and the photo must amass a high number of likes and shares. We expect the sweepstakes to generate a lot of buzz over the course of the month, organically appearing in the newsfeeds of the friends of those participating. At the end of the month, only the top 50 photos that receive the most likes and shares will continue on to the judging phase. During the judging phase, a panel of qualified judges will review the photos and pick which three photos they like best. The grand prize will be an all-expenses-paid 5-day vacation (jetBlue airfare included) to any coastal destination of the winner’s choosing. The two honorable mentions will win a free roundtrip ticket to any coastal destination of the winner’s choosing. We also plan to feature extended versions of spots on jetBlue’s Youtube page and emphasize vacation travel on the BlueTales blog, all the while linking to this content on Twitter.
Media Buy While social media is a free advertising vehicle, the estimated cost of the sweepstakes prizes is $2,000 (three round-trip tickets an average of $500/ticket, and a $100/day stipend for the 5-day vacation).
Non-Traditional Strategy Our campaign will also include a series of outdoor advertisements in places of high target traffic. Public transportation is much more commonly used among young professionals in urban areas, and thus taking over subway stations, placing signage at bus shelters. SoFly wants to exploit methods of travel such as subway stations, taxicabs and city buses.
Guerilla Marketing Strategy Because our target market is extremely busy with their work and life schedules, soFly sees a guerilla marketing component as critical to increasing our reach. We believe this nontraditional method will garner a more interactive element to our overall campaign. Our idea is to outfit ordinary cabs with amenities more accustomed to limousines. Think the unpredicted experience of Cash Cab minus the competition aspect. Made over with adjustable seats, snacks and personal televisions modeled after the amenities on jetBlue’s planes, these “taxousines” provide an unexpected moment of relaxation in an otherwise hectic rush hour. This works toward convincing our target that the vacation of their dreams is in their price range, and they should never have to compromise on quality. They are getting the limo experience for the cab price -- an idea mirrored by jetBlue’s mission to provide one-class, luxury service for a competitive price.
Media Buy The budget for this component would include the price of inserting the televisions, refurbishing the seats and food provided on these customers unique cab rides. While it does not factor into our operating budget, these guerilla efforts are a crucial component of this campaign. In addition to providing the core content of the broadcast spots that will ensue, the taxousines will likely generate jetBlue positive social media buzz before a dollar has even been spent on traditional media.
reach, frequency and GRPs Objective To create an integrated campaign that will obtain a reach of 82.8, an average frequency of 3.0 and approximately 248 GRPs during the bursting months of April and July. We will eliminate our presence on broadcast media during the months of May and July in order to avoid wear out but will maintain continuity with other media, achieving a reach of 69.9, an average frequency of 2.4, and a total of 165 GRPs.
% of Total GRPs Budget
Net-TV L Nite/L News
Spot TV-Early Fringe/News
Spot-TV Late Fringe/News
Newspapers (40% HH Cvg)
April May June July
Reach 82.8 69.9 82.8 69.9
Frequency GRPs 3.0 247 2.4 165 3.0 247 2.4 165
% of Budget 26.22% 23.78% 26.22% 23.22%
scheduling and timing Objective: To begin with a guerrilla and non-traditional media campaign in March, leveraging it across the web via social media. While maintaining a social online presence, to transition into a pulsing four-month traditional media campaign, with heavy-up before and during the peak vacation-planning months of April until August.
Scheduling and Timing Strategy:
media budget Objective: To execute a campaign on a $15 million traditional media budget. Strategy: Media Vehicle
% of Total
Budget Network TV
geography Objective To utilize a national approach with spot heavy-up in order to reach the greatest percentage of consumers in jetBlue’s target market. Aiming to optimize jetBlue’s share of voice in key spot markets, specifically the DMAs that encompass San Francisco, New York, Los Angeles, Boston, Chicago, Baltimore, Las Vegas, Sacramento, Seattle and Miami. Rationale JetBlue’s market consists of 23 DMAs which collectively comprise 35.3% of the US population. When buying television placement for any media plan, a general rule of thumb suggests that any geographic market segment exceeding 30% of the national population can be reached more cost-effectively with a national campaign. Therefore, a spot-only campaign is not the best option for jetBlue to efficiently achieve its target reach. The chart below compares the costs associated with media buys in the three main modes of distributing television ads across comparable day parts. When assessing how these vehicles perform individually simply on the grounds of cost, it is evident that network is significantly more expensive than spot and cable during non-peak day parts, but is more competitively priced during prime time. Daytime
(Local) Network (National) Cable (National) Cost ($) of 50 GRPs by TV Type and Day Part
(Spot markets selected are the same 23 DMAs, the selected target demographic is adults 25-49, ads are 30 seconds long.)
Because of the national scope of jetBlueâ€™s audience and the high priority of key regional audiences predisposed to spend on vacation travel, SoFly proposes a national campaign with spot heavy-up in the ten DMAs within jetBlueâ€™s market region that index highest for proclivity toward vacation travel. Because individuals from these markets are anywhere from 14% to 89% more likely than the average consumer to fly for leisure, they represent a high sales potential and are thus priority messaging targets for this campaign. Additionally, these are all urban areas that also index high for business travel, further suggesting that these cities are where our young, professional target segment call home. Top 15 Markets Ranked by Personal Air Travel Indexes
Travel by Air-
San Francisco et al, CA
Washington et al, DC-MD
New York, NY
Los Angeles, CA
San Diego, CA
Boston et al, MA-NH
10 Philadelphia, PA
11 Monterey-Salinas, CA 12 Hartford & New Haven, CT 13 Las Vegas, NV
Sacramento et al, CA
(DMAs highlighted in green are the ten selected as spot markets for this campaign)
Strategy This campaign will utilize a combined approach for advertising with spot heavy-up. We do not want to solely rely on national advertising because jetBlue only flies to and from select airports. Therefore it will be most effective to focus our efforts on major cities where our target market is most likely to reside. More specifically, we would like to focus on popular jetBlue departure cities in order to increase passenger seat miles. During the campaign’s most important messaging months of April-July, jetBlue will buy placements in network prime time and sports programming slots and will reinforce broadcast penetration with fringe buys in the ten spot markets. Additionally, SoFly’s public transportation takeovers will begin in March and will occur in these same prioritized target cities where our young professionals live and work.
creative brief Background JetBlue offers low fares and provides one-class, nonstop service to around 55 destinations. While jetBlue’s profit margin is relatively modest in comparison to other major airlines, it faces increased competition from other low-cost carriers like Southwest. In addition, jetBlue seeks to differentiate itself from popular carriers such as Continental, American and Delta. The Challenge Our goal is to increase jetBlue’s passenger seat miles by 5% by placing special emphasis on vacation travel to coastal destinations. We want jetBlue to be top-of-the-mind for consumers in spot markets. While we plan to draw from our existing consumer base, our biggest challenge will be to convince jetBlue’s competitors’ consumers that it offers superior service for a comparable cost. We must create an integrated campaign centered around a key message that carries the rest of our creative strategy to completion. Target Audience We want to attract business professionals between the ages of 25-34 who are techsavvy and ambitious. These “young digerati” consider themselves to be cultured and up -to-date on the latest news and products. When choosing airlines, they do their research. While convenience and value is important, they don’t want to compromise their standards. After a long day at work, they believe that they deserve to fly in comfort.
Key Consumer Insight When people fly, they are looking to get from point A to point B quickly, safely and for a decent price. While price is important, no one wants to sacrifice comfort in exchange for cheaper fare. These travelers look to fly affordably but with class. However, even with sufficient research and preparation, flying can still be a (literal) pain in the neck. Nobody looks forward to the countless hours wasted in the airport and in flight before their vacation starts. Single Most Important Message You work hard, and you deserve to get away. But you shouldn't spend the first few hours of your trip feeling like livestock jammed into a freight car. With jetBlue, t he
vacation starts the moment you get on board -- and without breaking the bank. Supporting Points JetBlue is a creative triple threat in the airline business - economy, comfort and customer consideration. JetBlue never oversells flights and holds a favorable on-time record compared to other airlines. With leather seats, Direct TV, extra legroom options and fun complimentary snacks, customers do not have to sacrifice quality for a good bargain. JetBlue also provides a “Customer Bill of Rights” which promises notification and compensation for delays and cancellations. Customers are always treated like next door neighbors and serviced with a smile. Media Vehicles Network & Spot TV: Prime Time, Early/Late Fringe and Late Night Magazines: Men’s, Women’s and General Interest Social Media: Facebook Sweepstakes, Twitter, Youtube and jetBlue Blog Digital - Targeted Sites: Expedia, Kayak, Travelocity and Hotels.com Newspaper: 40% HH Coverage Guerrilla Advertising: Subway and Taxi Takeover
appendix Brand Analysis JetBlue Investor Website - Annual Business Report for Shareholders http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol-reportsAnnual Mintel Oxygen Reports: US Airlines - August 2012 http://academic.mintel.com.libproxy.lib.unc.edu/display/590662/#atom0 US Travel Market - January 2010 http://academic.mintel.com.libproxy.lib.unc.edu/display/482447/#atom0 J.D. Power Website - Airline Ratings http://www.jdpower.com/consumer-ratings/travel/index.htm J.D. Power defines low-cost carriers as airlines that "operate single-cabin aircraft with typically lower fares," while traditional network carriers "operate multi-cabin aircraft and use multiple airport hubs." It also considers AirTran to be a low cost carrier, although it does operate multi-cabin aircraft.
Satmetrix Press Release - Highest Customer Loyalty http://www.satmetrix.com/company/press-and-news/pr-archive/pr20110217/ Competitive Analysis Kantar Media, Magazine Publishers of America Inc. - jetBlue Competitive Data Excel Sheet (CHART) Southwest Website - Fact Sheet http://www.southwest.com/html/about-southwest/history/fact-sheet.html#employees United Continental Holdings - Fact Sheet http://www.unitedcontinentalholdings.com/documents/FactSheet.pdf?file=united_factsheet.pdf&type=pdf NY Post Article - Continential, United Airlines to Combine http://www.nypost.com/p/news/business/continental_united_airlines_to_combine_cbgXCve0mExFQ1ROzIq7tJ?CMP=OTCrss&FEEDNAME= American Airlines - Fact Sheet http://www.aa.com/content/images/aboutUs/newsroom/fs_aa_jal_backgrounder.pdf Delta Website - Stats & Facts http://news.delta.com/index.php?s=18&cat=47 Target Analysis jetBlue Gfk 2009 MRI Doublebase - Demographic and Psychographic Data (explain how we used this data to come up with our findings) Skytrax - jetBlue Airways Customer Reviews http://www.airlinequality.com/Forum/jet_blue.htm TripAdvisor - jetBlue Ratings http://www.tripadvisor.com/Airlines-B6-JetBlue Epinions - jetBlue Airways Reviews http://www.epinions.com/reviews/trvl-Airlines-US_Canada-JetBlue_Airways?sb=1 Viewpoints - jetBlue Airways Reviews http://www.viewpoints.com/Jet-Blue-Airways-reviews
Media Objectives and Strategies Target Audience and Media Mix Simpliflying - Airlines and Social Media Infographic http://simpliflying.com/2011/infographic-the-future-of-loyalty-program-will-be-powered-by-social-media/ Magazine Media Kits: -Architectural Digest, GQ, Lucky, Self, The New Yorker, Vanity Fair, W, Wired: http://www.condenast.com/brands (Go to magazine, Click Media Kit, Click Print, Click Rates, Click General Rates) -Women’s Health Magazine: http://www.womenshealthmag.com/files/mediakit/WH-MediaKit-2012-Rates.pdf -In Style: http://www.instyle.com/instyle/static/advertising/mediakit/instyle/generalad.html -The Economist: http://www.economistgroupmedia.com (Insert Region: North America; Ad Type: 4 Colour) -Yachting Magazine: http://www.bonniermarinegroup.com/files/_attachments/media_kit/yr_2013_promo_1.pdf -Endless Vacation: http://www.endlessvacation.com/EV_Media_Sheet.pdf (See Rate Card) -Food & Wine Magazine: http://www.fwmediakit.com/ratecard/ratecard.html -Men’s Fitness: http://www.fit-pregnancy-magazine.com/mediakits/mens_fitness/pdf/10rate_card.pdf -Men’s Health Magazine: http://www.menshealth.com/mediakit/advertising/rates.html -Men’s Journal: http://www.srds.com/mediakits/mens_journal/Print.pdf -Golf Magazine: http://www.simediakit.com/files/Golf/2012GOLFRateCard.pdf *Sports Buys: -Expect budget numbers to be to be high for these media buys -No numbers were found for ads broadcasted during Wimbledon. The cost of this may be high, but should be somewhere along the same lines as the advertising for The Masters. -It will cost approximately $40,000 for an ad during The Masters http://content.usatoday.com/communities/onpolitics/ post/2012/04/john-barrow-masters-golf-augusta-attack-ad-/1#.UKKRTaXruDo Newspaper Strategy - Index Numbers for target group
low-cost carrier fliers
Read 2+ daily newspapers 170
Read 2+ Sunday newspa- 186
Heavy users of newspa-
Social Media Strategy The Social Skinny - “100 Social Media Statistics for 2012” http://thesocialskinny.com/100-social-media-statistics-for-2012/ Almost 50% of 18-34 year olds check Facebook when they wake up – 28% before even getting out of bed GNT - “New Survey Reveals Brand Opportunity to Reach Active Consumers Via Targeted Mobile Ads” http://us.generation-nt.com/new-survey-reveals-brand-opportunity-reach-active-consumers-via-press-3676231.html The findings indicate that 53% of all mobile Wi-Fi users are willing to share their location to receive more relevant content. Younger consumers are particularly responsive to location-based programs - 60% of 25-34 year olds and 58% of those under 25 are willing to share their location.
Travel Sites Data: Experian Hitwise revealed the most popular travel websites in the US for the week ending May 7, 2011, in the categories Agencies; Destinations and Accommodation; Airlines and travel search terms. Top Agency websites in the US for the week ending May 7, 2011, by % of visits: 1. Expedia (www.expedia.com): 13.19% 2. Yahoo! Travel (travel.yahoo.com): 9.71% 3. priceline.com (www.priceline.com): 9.67% Top Destinations and Accommodation websites in the US for the week ending May 7, 2011, by % of visits: 1. TripAdvisor (www.tripadvisor.com): 6.85% 2. Hotels.com (www.hotels.com): 2.95% 3. Marriott International (www.marriott.com): 2.90% Top Airline websites in the US for the week ending May 7, 2011, by % of visits: 1. Southwest Airlines (www.southwest.com): 22.86% 2. Delta Air Lines (www.delta.com): 12.17% 3. American Airlines (www.aa.com): 10.79% Top Travel search terms in the US for the week ending May 7, 2011, by % of clicks: 1. mapquest: 3.78% 2. google maps: 1.45% 3. maps: 0.81% 36.78% of all visits to the online travel industry in the US went to the top 10 websites for the month of February 2011, according to Hitwise Monthly Category Report - Travel. The report found that 46.85% of all visits went to the top 20 websites and 69.29% went to the top 100 websites. The average visit duration for visits to the online travel industry was 6 minutes, 52 seconds for the month of February 2011. The top 5 websites in the travel online industry for the month of February in the US, based on visits: 1. Google Maps (maps.google.com): 14.66% 2. MapQuest (www.mapquest.com): 5.95% 3. Expedia (www.expedia.com): 3.29% 4. Southwest Airlines (www.southwest.com): 2.45% 5. priceline.com (www.priceline.com): 2.14% Customer Engagement Strategies - jetBlue Social Media Snapshot http://www.infographicfile.com/infographics/view/483
Edison Research and Arbitron - The Social Habit 2012 http://www.edisonresearch.com/wp-content/uploads/2012/06/The-Social-Habit-2012-by-Edison-Research.pdf Scheduling USA Today Article - How Soon in Advance Should You Book a Flight? http://traveltips.usatoday.com/soon-advanceshould-book-flight-61681.html We assume our target audience does research on airlines and knows when the best time is to buy tickets. On average, it is most cost-effective to buy tickets no earlier than three months in advance for domestic flights. Therefore, we have centered our scheduling around the months before the start of summer in order to align with the time period potential customers will be doing research for their vacation plans. Find another website that backs up the fact that they research airline tickets on travel websites