Target market presentation

TARGET MARKET

Justin Galligan, Rochelle Robnett, Lacey Link, Josh Hernandez, & Sara Bradshaw

Market size

● Revenue increased by an average of 4.8% from 2004-2008

● Dropped 16% the following year● What is $138.3b x .246?● $34.25 Billion dollars spent by business in

2013(IBISWorld)

Product Life Cycle

State of Decline:● Product saturation● Increasing

Consolidation● limited

technological innovation

Poor Performance:● Soaring crude oil

prices● Bad Economy

Future Outlook

Projected growth through 2017● Economy is slowly recovering which drives

business activity● Technological advances on the way

Market Share - United

Domestic Market Share - 15.7%Business Market Share - 13.49%

Market Share - Delta

Domestic Market Share - 16.3% Business Market Share - 21.11%

Market Share - Southwest

Domestic Market Share - 15.4% Business market share - 10.26%

Seats per Kilometer

Southwest - 0.09United - 0.04Delta - 0.06

Define

● Business Travelers● Income 100K● Travel over 5 times a year

3 Micro Segments

● Entrepreneur Travelers● Small Business Travelers● Corporate Travelers

Entrepreneur Travelers

● Have start-ups● PRIZM: Up & Comers● Risk takers, self starters● Age:18-34● Income: $50,863● No children & own homes● College Educated

Geographic-Entrepreneurs

Psychographic-Entrepreneur

Small Business Travelers

● Small business = <500 employees?● PRIZM: Upward Bound● Come from traditional households● Average age 50● Income: $71,690● Have children & own homes● College Educated

Geographic-Small Business

Psychographic-Small Business

Corporate Business Travelers

● Corporation = Legally declared a separate entity from its owners (Incorporated)

● PRIZM: Kids & Cul-de-sacs● Average Age: 34.5 years old● Average Income: $70, 298 per year● Have children and own homes● College Educated● High Percentage of Hispanic and Asian Americans

Geographic - Corporate

Psychographic - Corporate

● Target● Fantasy Sports● Parents Magazine● X Games● Honda Odyssey

Recommend Corporate Travelers

● Stabilizing Economy means increased need for business traveling

● Companies are trying to save money on Travel Expenses

● Corporations must travel often regardless of economy

The Corporate Business Traveler

● GBA Survey● 78% prefer meeting in person● 46% travel on a budget● Benefits Southwest

The Corporate Business Traveler

● Five Different Types of Travelers○ Veteran○ Road Weary○ Wide- eyed and Anxious○ Passionate High-Tech○ New Recruit

Travelers by Generational Cohort

● Baby Boomers ○ Largest Demographic○ 40% Business Travel○ Uses Loyalty Programs○ The Veteran Traveler○ Amenities and Lounges

Travelers by Generational Cohort

● Generation X○ 1965-1976○ Not considered Workaholics○ Tech Savvy○ Road Weary Traveler○ Amenities and Lounges

Travelers by Generational Cohort

● Generation Y○ 1977-1994○ The Passionate High Tech Traveler○ Amenities and Lounges

Target Market Grid

Risk of partnerships

● Good domestic coverage

● Legal ramifications● Jeopardizing

customer service

In-Air amenities

● USB Ports● Electrical Outlets● Discounted WIFI

Lounges

● Internet● Snacks and Drinks● TV● Restrooms

Challenging United and Delta

In air amenities and lounges will allow southwest to challenge them without changing their current business model.