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The US – American Merger
Agenda
Execu&ve Summary Company Background Situa&on Analysis
SWOT Marke&ng Strategy
Vision The Plan KPI’S Budget Controls
Conclusion References
Execu5ve Summary
Building from the merger to reposi&on US Airways and American Airlines
Background • In December, 2013, AMR Corp., merged with U.S. Airways Group.
• Serves more than 330 des&na&ons. • Primary hubs. • Customer benefits merger.
Situa5on Analysis
American Airlines lost its market leadership to United Airlines in 2011.
SWOT
US AIRWAYS American Airlines
Strengths
On time performance Dominance in East Coast Good Customer Service US Airways Club – Affiliations 400 Airbuses
Weaknesses
Traditional Image Location and Size of Hubs Lack of Presence in the West Coast Excessive assets/Bankruptcy Fewer Entertainment Choices
Strengths
Flexible change/cancellation policy First class oversells economy AA Advantage program Top Tier Elite Program
Weaknesses
High Cancellations/Delays Lesser Hubs Rewards points/miles expire in 18 months High additional baggage fee Bad Customer service Fewer Entertainment Choices
Threats
Corporate Cultural Differences Customer Confusion
Brand Consistency
Fluctuating Oil Prices
Future Economic Instability Unpredictable Weather
Increasing Labor Costs
SWOT
INTERNAL
EXTERNAL
US AIRWAYS American Airlines Strengths On time performance Dominance in East Coast Good Customer Service US Airways Club – Affiliations 400 Airbuses
Weaknesses Traditional Image Location and Size of Hubs Lack of Presence in the West Coast Excessive assets/Bankruptcy Bad Entertainment system
Strengths Flexible change/cancellation policy First class oversells economy AA Advantage program Top Tier Elite Program Dominance on Midwest & West coast
Weaknesses High Cancellations/Delays Lesser Hubs Rewards points/miles expire in 18 months High additional baggage fee Bad Customer service Bad entertainment System
OPPORTUNITIES
Increased efficiency
Largest Airline in the world
Improved Customer Satisfaction
Shared Rewards Program – More Affiliates
Strategy
Redefine the &red US Airways and American Airlines brands to create a unifying brand that resonates with today’s flyer.
Who is Today’s Flyer?
Today’s Flyer is…
The NEW AMERICAN
Introducing America’s largest Airline…
NEW AMERICAN
INSIGHT
We are all different.
BRAND IDEA
Personalized experiences that bring the des&na&on to YOU.
To promote Equality, Diversity, Youth and Culture, ALWAYS.
Vision
The PLAN
High Cost
Quality
Low Cost
Service
Compe55ve Analysis
High Cost
Quality
Low Cost
Service
Compe55ve Analysis
OBJECTIVE
Reclaim posi&on as market leader within 24 months.
Our Target Audience …
• Domes&c Leisure travel volume: 17% are 35-‐44, 20% are 25-‐34, • Target: 37% are 25-‐44 (reasoning: 62% spending on Leisure travel)
Leisure travel
TACTICS
PERSONALIZATION
• Customize In-‐Flight Experience to des&na&on:
• Food : Chicago-‐Deep dish pizza • Music : Hawaii-‐Ukulele • Inflight : NYC-‐ Fashionable ougits • Interior : Vegas-‐Poker pillow case
New American App
PERSONALIZATION
N A
Pick your movie & dinner ahead of 5me
PERSONALIZATION
Beat mini bar fees
PERSONALIZATION
Keep loved ones informed
PERSONALIZATION
Don’t let NYC cabbies APRIL Fool your fare
PERSONALIZATION
LOYALTY PROGRAM Rack New American points
Partnership – American Express
Get the best swag with American Express
Partnership -‐ Hotel Affilia5ons
Partnership -‐ Uber
Personalize your ride...
You fancy huh...
Keepin it real Green…
Take control of the wheel…
Partnership -‐ Enterprise
Customize your taste buds
Partnership -‐ OpenTable
Content Marke5ng
Tell your story… • Summer Selfie Contest
#NewAmericanSummerSelfie
ENTERTAINMENT Access your favorite movie, shows…
Stream your favorite tracks…
ENTERTAINMENT
CAUSE MARKETING
• Sponsor a dream to become a pilot • Provide aid to children in need
THEY ARE THE NEW AMERICA
KPI’s
50%
20%
30%
BUDGET 50%
Rebranding
30% Analy&cs Purchase App Development Entertainment Unit Contact Modeling Promo&onal Costs
20% Bring the Des&na&on to you
1. Plane interior 2. Food Cura&on 3. Staff training
CONTROLS
Analyze data collected on a regular basis from key performance metrics to avoid failures of key ini&a&ves
CONCLUSION
hip://academy.aerosim.com/Portals/1/PDF/2013%20Pricing%20Guide.pdf hip://phx.corporate-‐ir.net/phoenix.zhtml?c=117098&p=irol-‐reportsannual
REFERENCES
Thank you