COM 356-Media Planning and ManagementCollege of Communication and Media Sciences

Zayed University

Done By: Aisha Alawi

JetBlue American Airlines

U252589

Table of ContentsOverview: Executive Summary 3 The Problem & Challenge 4 Situation Analysis 5 Company Analysis 5Competitive Analysis 6

Southwest Airline 6American Airline 6

Flights Delay 7Mishandled Baggage 9Oversales 9Consumer Complains 10

Consumer Analysis & Target Audience 12

S.W.O.T Analysis 13 Market Analysis 14 Media Objectives: 14 Geography Objectives: 14 Reach & Frequency Objectives: 14Media Strategies: 15 Reach & Frequency Strategies: 15

Media Tactics 16 Creative Strategies: 18Appendix Creative: 19

Budget 20 Scheduling 22 Flow Chart 23

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1. Overview: Executive Summary:

Travelling is a unique experience, it allows for exploration and discovery of more

than just destinations and cites. It is a chance for the person to explore their own

wants and desires. JetBlue Airlines differentiated from other airlines through sincere

branding, honest care and consideration for their passengers with satisfy. This has

allowed JetBlue to become a favorite airline for many travelers despite only being 10

years old!

Air travel is sometimes associated with the stress of security, long lines, and baggage

problems. With JetBlue. Its easy for all of this to fade away and let an enjoyable.

JetBlue is the brainchild of David Neeleman. Concentrating on New York, Florida

and California. It started with an initial capital of $160 million and the process began

on February 11, 2000. The inaugural flight was between New York’s JFK

international airport and Fort Lauderdale.

The media objectives target are businesswomen between 25 to 44 years old, and the main goal for our campaign is to increase these passengers in summer

vacations. We set the advertising schedule to run from February to August and

be consistent with which media we bought during each month. Our budget is

$20,000,000 in which it will divide in different categories and needs during the whole

6 months.

We believe this campaign will be ineffective in reaching our goals and solving the

problem and challenge that JetBlue is faced with.

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2. The Problem & Challenge:

The Problem :  

JetBlue American Airways already holds a great share of the business traveler market,

and right now they are looking to become an occurrence in the vacation travels by

increasing passenger seats to 20 %. Unfortunately for the JetBlue brand, their current

businessman target is not a beneficial market in vacation travels.  In order to be

successful in the vacation travels, JetBlue must attract new targets of the population.

This new target will be a sector that as flexible income for vacation travels. In

addition, JetBlue suffer from some problems that affect their repetition which are,

flight delays, cancellations, mishandled baggage, oversales and consumer complain.

The Challenge :

The challenge assigned to increase passenger seats on JetBlue flights to 20 %. And to

reach this, this campaign will look to highlight JetBlue’s strengths that will appeal to

our new target audiences with the advertising budget that JetBlue allocated to.

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3. Situation Analysis:

Company Analysis: David Neeleman under the name “New Air” introduced JetBlue in February of 1999.

Neeleman, a former Southwest Airlines employee and began the concept for JetBlue

in 1993. David Neeleman’s intentions were to follow Southwest’s ideals, offering low

cost travel, while focusing mainly on the customer’s needs and comforts. JetBlue

seeks large areas, which mainly offer high air travel fares, and offer low fares to

customers. It based out of John F. Kennedy International Airport, while their

secondary locations include Los Angeles, Boston and Washington D.C. (JetBlue,

2007).

On February 11th, 2000, JetBlue launched its inaugural flight between John F.

Kennedy Airport in New York City and Fort Lauderdale, Florida.

By December 2000, JetBlue flew over 1 million passengers and reported $100 million

in flown revenue for 2000. Many companies suffered large financial losses due to the

post 9/11 terrorist attacks. JetBlue on the other hand remained one of the few

American airlines to continue to net profits. With these profits JetBlue was able to

finance many new aircrafts and expand their highly rated employment. Neeleman

took the company public in 2002. (JetBlue, 2007). With the newfound success of

JetBlue, the company began to focus most of their attention on customer service.

Currently JetBlue serves over JetBlue serves 63 destinations in 21 states (including

Puerto Rico), and eleven countries in the Caribbean, South America and Latin

America (2011).

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Competitive analysis: JetBlue’s competitors consist of low cost including Southwest Airlines and American Airlines:

Southwest Airlines: Southwest maintains a low-cost, no-frills, no reserved seats approach to air travel throughout the US, serving 65 cities in more than 30 states. In competition with the other US airlines, Southwest stands as a famous inspiration for new low-fare airline new comers around the world. Southwest has remained profitable for the past 34 years despite the constant ups and downs of the airline industry. Simplicity is essential to Southwest’s success with flights being limited to less than two hours and use of small rather than large airports. Southwest Airlines uses about 480 aircrafts specifically from the Boeing 737 type, which allows for less training and maintenance costs. The airline also insinuates simplicity with reassigned seating. Passengers are boarded in three levels, those with boarding cards A first, followed by B, followed by C, and so it pays to check-in early. This unique policy helps the carrier achieve quick turnaround rates at airports and allows the airline to stick to their schedules.

American Airlines: American Airlines is the largest airline in the world in terms of total passengers miles transported and fleet size and the second largest airline in the world in terms of total operating revenues. American Airlines contributes more than $150 billion per year to the U.S. economy. American and its regional airline affiliates, American Eagle and the American Connection airlines make more than 4,000 daily

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flights serving 250 cities in over 40 countries including the Americas, Europe, and the Asia/Pacific region (AA.com). Among domestic U.S. airlines, American’s 2006 market share was 17.8% (AA.com).

Overall percentage of reported flight operations arriving on time by carriers in October 2009

This is a chart shown the three different carriers, in their flight operations arriving on time during October 2009.

The highest percentage of arrivals on time is in JetBlue by 82.5 %. The lowest percentage is in American Airlines.

Number and percentage of regularly scheduled flights / arriving late 70 % of the time or more

1-Aug Sep-09 Oct-09 12 months ending oct 2009

76.00%

88.70%

82.90%

76.60%77%

86%

76% 76%

82.80%

89.10%

77.80%

82.10%

JetBlue American SouthwestOverall percentage of reported flight operations arriving on time and carrier rank, by month, quarter, and database to date

Flights Delays

20

82.5

29

76.5

21

77.8JetBlue American Southwest

5030

1179

3

3210

61

JetBlue American Southwest

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Causes of Delay:- Air Carrier Delay : the cause of the cancellation or delay was

due to circumstances within the airline’s control (e.g. maintenance or crew problems, etc.).

- Extreme Weather Delay : significant meteorological conditions (actual or forecasted) that, in the judgment of the carrier, delays or prevents the operation of a flight.

- National Aviation System Delay : delays and cancellations attributable to the national aviation system refer to a broad

Total reports

Ontime Cancelled Diverted

14723 12200

39 61

4567634701

301 132

93100

72466

530 125

JetBlue American Southwest

According to the chart, Southwest Airlines has the highest number of reports, on time arrivals, cancelled and diverted. JetBlue has the lowest cancelled flights number just 39 flights and diverted 61 flights. The American Airlines has 45676 reports and 301 flights cancelled.

The highest percentage of lateness in flights and arriving is in Southwest Airlines it reach 3,210 reports. On the other hand, JetBlue is the lowest reports it is just 503 reports, in October 2009. (According to the Air Travel Consumer Report).

5030

1179

3

3210

61

JetBlue American Southwest

22%

0%

52%

0%

25%

Causes of delay for JetBlue in October 2009

Air Carrier delayExtreme weather delayNational avitation system de-laySecurity delayLate arriving aircraft delay

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set of conditions – non-extreme weather conditions, airports operations, heavy traffic volume, air traffic control, etc.

- Security Delay : Delays caused by evacuation of terminal or concourse, re-boarding of aircraft because of security breech, inoperative screening equipment and long lines in excess of 29 minutes at screening areas.

- Late Arriving Aircraft Delay : Previous flight with same aircraft arrived late, which caused the present flight to depart late.

Consumer complains

Here is a summarization aviation consumer complaints filed with the Department in writing, by telephone, via e-mail, or in person. Complain categories:

Enplaned Passengers

6,011,251

19,794,039

26,434,803

JetBlue American Southwest

The number of passengers who hold conferment reservations and are dented boarding (bumped) from a flight because it is oversold. These figures include only passengers whose oversold flights departs without them, they do not include passengers affected by cancelled, delayed, or diverted flights. 6,011,251 were the lowest rates for enplaned passengers in JetBlue Airlines.

OversalesThe statistics in the above charts shown the passengers denied boarding in three U.S Airlines: JetBlue,

American, Southwest Airlines in July-September 2009. In JetBlue Airlines the total baggage reports is

3334 reports also the number of enplaned passengers is 1,1616,914 passengers, which is the lowest

number of reports and passengers, comparing to the two other competitive. The highest number is in

Southwest Airlines.

Mishandled baggageIn these chat it gives the rate of mishandled-baggage reports per 1,000 passengers by carrier and for the

industry. The rate based on the total number of reports each carrier received from passengers concerning

lost, damaged, delayed or pilfered baggage. (Air Travel Consumer Report).

Total baggage reports

3334

20223

27629

JetBlue American Southwest

Enplaned passengers

1,616,914

5,840,296

9,012,758

JetBlue American Southwest

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- Flight Problem : cancellations, delays, or any other deviations from schedule, whether planned or unplanned.

- Oversales : Allah bumping problems, whether or not the airline complied with DOT oversales regulations.

- Reservations, Ticketing, Boarding : Airline or travel agent mistakes made in reservations and ticketing; problems in making reservations and obtaining tickets due to busy telephone lines or waiting in line, or delays in mailing tickets, problems boarding the aircraft (except oversales).

- Fares : incorrect or incomplete information about fares, discount fare conditions and available, overcharges, fare increase and level of fares in general.

- Refunds : problems in obtaining refunds for unused or lost tickets, fare adjustments, or bankruptcies.

- Baggage : claims for lost, damaged or delayed baggage, charges for excess baggage, carry-on problems, and difficulties with airline claims procedures.

- Customer services : rude or unhelpful employees, inadequate meals or cabin service, treatment of delayed passengers.

- Disability : civil rights complaints by air travelers with disabilities.

- Advertising : advertising that is unfair, misleading or offensive to consumers.

- Discrimination : civil rights complaints by air travelers (other than disability), for example, complaints based on race, national, origin, religion, etc.

- Animals : loss, injury, or death, of an animal during air transport providing by an air carries.

- Other : frequent flyer, smoking, tours credit, cargo problems, security, airport facilities, claims for bodily injury, and others not classified above.

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Oversale

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RES/TKTG/B

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Refunds

Bagga

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Custom

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Disabili

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Overtist

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Discrim

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Animals

Other

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4

8

12

16

20

JetBlueAmericanSouthwest

Consumer Analysis & Target Audience:

Most JetBlue travelers are adults’ female ages between 18-24 and male ages 35-44 represented the largest number of flyers. They are mostly employed in business areas such as: wholesale & retail

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64

24

Total Complaints

JetBlue American Southwest

This chart shows the numbers of complain categories, that against U.S. Airlines: JetBlue, American and Southwest. The best Airlines that has less complain during October 2009 is JetBlue, with 24 complains.

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trade, educational services, professional, scientific, and technical services. Both target groups demonstrate a tendency to depart from coastal airports such as Miami, Los Angeles, and San Francisco.

JetBlue is a low cost airline with several luxury aspects; it developed a consistent consumer base. We draw a line towards one major target audience, which is a businesswoman with a college education, ages between 25 to 44 years old. These women are likely to be employed full time and have a household income of $110,000. They are slightly more likely to be single than married, but do not have kids.

We found some areas that interest these targeting women. This group of women are seeking higher social status and seems be worried about how the outside world views them. They prefer nice and beauty things, but only if it will be seen by others. For example, they are likely to change their homes and buy name brand clothing and cars, brand names are only important and matter when they are buying things others will see. They believe that traveling encourages learning about different cultures, and are eager to go to. They enjoy trying new products and services and their friends count on them for advice. Before purchasing electronics, they read reviews and research the product ahead of time.

Consumer Benefit: Consumers will benefit by saving both time and money when flying in JetBlue. JetBlue’s trained staff will make customers feel comfortable during their travels by providing top quality customer service. JetBlue guarantees to provide on time flights, or compensation for flights that may be delayed or canceled.

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4. S.W.O.T analysis:

The S.W.O.T. Analysis is used here to weigh the strengths, weaknesses, opportunities and threats related to JetBlue. Understanding the various factors that will affect the target audience’s perception and opinion of JetBlue. Here is a complete list of all possible factors affecting JetBlue is provided below:

Strengths:

1. JetBlue is the strong brand among the US people.

2. Efficient employee help JetBlue to perform operation in a better way for facilitate its customers.

3. Consumer is satisfied from the services offered by JetBlue.

4. Effective use of technology, reservation is handled online with the unique reservation system.

5. Low operating cost.

Weaknesses:

1. JetBlue is still new in the industry as compared to other Airlines.

2. It has been using a single fleet.

3. Concentration on middle class.

4. Shifting customer’s need.5. Lesser number of destinations

compared to competitors.

Opportunities:

1. Creation of Airlines Alliances.2. Deregulation of international

air travel. 3. Technological improvements

in Airline design, operation and maintenance.

4. JetBlue financial position is strong, so it can think for further expansion nationally and internationally.

5. Add up more services for the passengers.

6. Increase number of flights.

Threats:

1. Global crisis. 2. Security. 3. Rise in fuel prices.4. Strong competition from

Southwest and American Airlines.

5. Employees unions.

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5. Market Analysis

Media Objectives:

1. Geography Objectives:

The flights covered between points within the United States by the thirty-one (31) U.S

airports. The main ones are New York City International (JFK), Chicago Midway

(MDW), Seattle, and Phoenix.

The following map shows the geographic distribution of current airports served by

JetBlue.

JetBlue also plans to enter new markets in which there is the demand for lower fares.

Destinations in Canada, Mexico, and the Caribbean are considered to have high fares

in general, and JetBlue sees these as possible growth areas.

2. Reach & Frequency Objectives:

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We aim to accomplish the reach and frequency goals, which is: monthly reach 150

fans and through the campaign we aim to persuade businesswomen to fly JetBlue to

their next vacation destination.

Media Strategies:

1. Reach & Frequency Strategies:

The media plan will encourage businesswomen to travel through JetBlue, during

summer months and also improve to avoid the bad repetition with a verity of steps.

The campaign period is early spring, February-April, which will prompt the audience

to book their vacations before fights are full. This also allows adequate planning time

for working women to ask for vacation time at work, and time to book hotels and

excursions at their selected vacation destinations.

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6. Media Tactics:

In terms of specific tactics to enhance the strategies JetBlue has came up with a verity

of media to use. The media being used will be three main events in each month and

promotion specific.

1. Opening Ceremony:

JetBlue will be in three main cities, New York, Florida and California. To promote

these events, JetBlue will use different local and general advertising. First will be a

billboard in each of these cities, has the logo "Happy JetBlue". This billboard will be

at each location for three months start on the first week of from February to the end of

April. And along with this will be the radio commercials on different stations,

especially in the weekdays in the morning when all the businesswomen going to their

jobs.

2. Happy JetBlue:

This event will be in one of the main street in

Yew York, 7 businesswomen will hold

billboards to promote a beauty service and

JetBlue Airlines. And those who buy more

than $100 will get a coupon to travel in any

U.S. city during the summer vacation. Each

customer will get also a brochure. This event

will hold at the end of February and April.

Social Media:

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is a great way for Airlines to use it nowadays, so the customers can easly interact and

transparency build through daily engagement cash it in when need to. There are more

than 100 companies in the US, use social media to reach publics, (According Burston-

Marsteller, 2010): 79 % use at least one platform, 20 % use all four platforms, 65 %

use Twitter, 33 % use corporate blogs, 54 % use Facebook Fan Pages, 50 % use

YouTube. The reasons behind use Social Media is to announcements and news,

events and promotions, customer service, conversations with other users and

companies, monitors what is said about the company and competitors, environmental

scanning, make company executive available in the real time. JetBlue Airlines has a

strong position in the digital space: 1,626,968 million Twitter followers, 497,969

Facebook Fans. (2011)

The main objective for these social media pages is to make themselves available, help

whenever possible, and to show that their brand is built by real people who care about

their customers. An Official twitter, Morgan Johnston, provide a great way to monitor

customer feedback and disseminate information. He believes" twitter is a great way to

talk too many, but even better for listening" (Twitter JetBlue’s Page).

Social media has been a good fit with the existing organizational culture; emphasis is

not the tools itself, but on what can be achieved by using them. Integration and more

cohesion are necessary if JetBlue is to keep up with the customers' demand and the

fast pace of social media.

Television:

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The television advertisements consist of 30-second spots that are humor based. The

use of humor will attract our customers especially businesswomen and raise top of

mind awareness. Within the advertisement we will incorporate the target market in

order to gain consumer brand connection with celebrities. National television will run

continuous, yearlong campaigns while spot television will run from April 1 st to July

31st.

Radio:

American spend increasing amounts of time in their cars, radio the medium that

invented “drive time” is always along for the ride. More than 73.1 % adults ages

between 18+ 30 % are listen to radio in their cars on a typical weekday. Radio reaches

71 % of all U.S consumers every day, 181,003,000 (Radar, 2009). Monday, Sunday,

24-hour daily cume estimate.

The radio advertisements will consist of 60-second spots and incorporate humor in

order to attain the attention of listeners. It will provide feedback about prices,

schedules, and customer service, including facilities on hand when flying JetBlue.

Nation radio will run continuous; yearlong campaigns while spot radio will also run in

KIIS of Los Angeles is probably best known as the radio home of Rayan Seacrest. It

boasts one of the largest audiences of any pop radio station in the U.S. and frequently

hosts major artists as on-air guests, WNEW-FM - New York and WXRT-FM –

Chicago. This will be from 1st February to 31st and 1st June to 31st August. The time

we will advertise our ads will be in the early morning, when all our target audiences

going to their jobs from 6-10 A.M and then from 3-7 P.M three times per a week.

Print:

Print will consist of 4A full-page ads in magazines, newspapers and brochure. The

goal of the print ads is to raise awareness and attract businesswomen. Print

advertisements will run a continuous schedule for six months.

Creative strategies:

JetBlue’s creative strategy should look to build on their core belief of bringing

humanity back to air travel. The tone of the creative strategy should mirror the “A

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JetBlue we like you too” campaign by being edgy and comedic in uncovering truths

and problems with many of JetBlue’s competitors.

Appendix : Creative

JetBlue Print Advertising: An advertisement prepared to JetBlue to set strategy for the airline’s marketing.

Billboard: The commercial titled Happy Jetting was done by JWT New York advertising agency

for JetBlue Airways in United States. It was released in the April 2009. Business

sector is Transport, travel & tourism.

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7. Budget:

1. Media Budget Objectives:

JetBlue campaign has set a budget of $20,000,000 in which it will divide in different

categories and needs, also for the whole 6 months.

This budget will include many things for the company that will encourage brand

awareness, repetition, and increase passengers. Since the campaign does not advertise

yet, so the advertisements will be on a verity of medium including: television,

magazine, radio, Internet, social media, billboards, and newspapers. Along with these

mediums, there will be events that will boost awareness and encouragements. These

events will be located in various places across the U.S. and will reach a verity of

people and specially our target audience. The following section shows different

graphs that show a breakdown of the actual budget.

69%

30%1%

Breakdown of Budget

Advertising Media Special EventsOther

44%

11%

44%

Events

Opening Cermony Happy JetBlueBlue Busniesswomen

8%

50%

40%

1%1%

Advertising Media

RadioTelevisionNewpapers & MagazinesBillboardInternet

20

8%

50%

40%

1%1%

Advertising Media

RadioTelevisionNewpapers & MagazinesBillboardInternet

66%

34%

Total Cost of Radio

WNEW-FM - New YorkWXRT-FM – Chicago

6%

3%

62%

29%

Total Cost of News-paper

Los Angeles Times Miami Herald Tampa Tribune New York Daily News Albany Times Union

Newspapers Audience Full page Ad

Los Angles Times 18,168,900 $215,05

Miami Herald 12,493,000 $23,845Tampa Tribune 4,804,44 $84,44New York Daily

News 15,000 $5,678

Albany Times Union 345,67 $56,076

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City Rating point GRP/Week Cost

New York 5.7 136.8 3.173

Chicago 4.0 96 3.173

8. Scheduling:

1. Scheduling and Timing Objectives:

Our campaign would begin in February and continue into March and April. We chose

these months because we are trying to increase travel during summer vacation

months. Most people and especially our target audience book their trips before

months since they have to ask for vacation time from their jobs. As summer vacation

travelers begin in May and continue until August.

2. Scheduling and Timing Strategies:

The schedule we created is consistent through all three months.

Media Feb Mar Apr May Jun Jul Aug

EventOpening ceremonyHappy JetBlueBlue BusinesswomenAdvertising MediaRadioNewspapersTelevision

85%

15%

TV Budget

DaytimePrimetime

California

Florida

Billboard

22

Billboard

Flow Chart JetBlue Case

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HeavyMediumLight