1. Jack Daniel’s – Set J
MKTG 2200, May 2014
ANNIVERSARY PROJECT
Case Study

2. INTRODUCTION
1

3. INTRODUCTION
WestJet“By 2016, WestJet will be one of the five most
successful international airlines in the world
providing...guests with a friendly caring experience
that will change air travel forever.”
(WestJet’s Vision. WestJet, 2014)

4. INTRODUCTION
WestJet
2014
FIRST
DEPARTURE
FIRST
TRANSATLANTIC
FLIGHT
SERVING OVER 100 DESTINATIONS (WestJet, 2014)
OVER 100 AIRCRAFTS
1996
$270millionnet earnings in 2013
10,000
employees
(WestJet, 2013)

5. Marketing Objectives
Situational Analysis
Stakeholders
SWOT Analysis
Competitive Analysis
Strategic Decisions
Communication Objectives
Target Audience
Positioning Strategy
Marketing Mix
3Ps – Place, Product, Price
Past Promotions
Marketing Communication
Strategy
Promotional Mix
Message Design & Delivery
Budget
Evaluation
Q&A
AGENDA
WestJet

6. MARKETING OBJECTIVES
2

7. MARKETING OBJECTIVES
WestJet
million
REVENUE$121
Average
percentage of
seats filled on
WestJet flight
2013 2016
85.0%81.7%

8. SITUATIONAL ANALYSIS
3

9. STAKEHOLDERS

10. PRIMARY STAKEHOLDERS
WestJet
42%
MALE
10,000non-unionized
employees
58%
FEMALE
(WestJet, 2012)
EMPLOYEES

11. PRIMARY STAKEHOLDERS
WestJet
DOMESTIC CUSTOMERS
TRANS-BORDER FLIGHTS
within North America
CUSTOMERS
36% 13%
(CAPA, 2013)

12. PRIMARY STAKEHOLDERS
WestJet
ON-BOARD AIRLINE
services suppliers
SUPPLIERS
Ø Boeing 737 series
Ø Bombardier Q400s
(WestJet, 2014)
FLEET SUPPLIERS

13. PRIMARY STAKEHOLDERS
WestJet
Ø SELF-GOVERNING COMMITTEES (WestJet, 2012)
1. CGN Committee
2. SH&E Committee
3. People and Compensation Committee
GOVERNMENT
Ø INTERNATIONAL AIR AUTHORITY

14. COMMUNITIES
supports
national
charities6
supports
employees who
donate over
hours of
time on
volunteer
projects
40
builds homes for
families living in
poverty
(WestJet, 2014)
5
homes were
built in 2013
PRIMARY STAKEHOLDERS
WestJet

15. SECONDARY STAKEHOLDERS
WestJet
CANADIAN ASSOCIATION OF AIRLINE
PASSENGERS
SPECIAL INTEREST GROUPS
PUBLIC INTEREST
ADVOCACY CENTRE

16. SECONDARY STAKEHOLDERS
WestJet
WESTJET
TRAVEL AGENT
SIGN-IN
TRAVEL AGENCIES
PARTNERED WITH
(WestJet, 2012)
(Johnson, 2014)

17. SWOT ANALYSIS

18. Ø LARGE AND GROWING FLEET
Ø EXTENSIVE SOCIAL MEDIA PRESENCE
Ø ADVANCEMENTS IN IN-FLIGHT SERVICES
512,000
FACEBOOKLIKES
35,000
YouTubeSUBSCRIBERS
315,000
TWITTERFOLLOWERS
21,000
INSTAGRAMFOLLOWERS
SWOT ANALYSIS
WestJet
STRENGTHS

19. Ø DEPENDENCE ON BOEING AND BOMBARDIER as the
only suppliers
Ø FLEET LIMITATIONS
WestJet’s current fleet is … only able to fly between
Maritime provinces and Dublin, Ireland (Deveau, 2014)
SWOT ANALYSIS
WestJet
WEAKNESSES

20. Ø GROWING TOURISM INDUSTRY
Ø POSITIVE OUTLOOK ON CANADIAN AIRLINE INDUSTRY
The tourism transportation market is expected to reach $ 42.7billion
by 2017 (Euromonitor International, 2013)
SWOT ANALYSIS
WestJet
OPPORTUNITIES
12.9
$ billion19.7
$ billion
International
Air Transport
Association
forecasts
increase in
profit 2013 2014
(Heilprin, 2013)(Euromonitor International, 2013)
+7%
Passenger traffic
2017

21. Ø GROWING DOMESTIC MARKET SHARE (Jang, 2012)
SWOT ANALYSIS
WestJet
OPPORTUNITIES
7%
36%
2000 2011 2015
45%

22. SWOT ANALYSIS
WestJet
THREATS
Ø GOVERNMENT REGULATIONS
Ø COMPETITION
Ø FALLING CANADIAN DOLLAR
Every 1-cent drop in Canadian dollar knocks $14-million
from operating income for WestJet (Keenan, 2014)

23. COMPETITIVE ANALYSIS

24. COMPETITIVE ANALYSIS
WestJet
$ 12.1
billion
operating revenues
82.7% load factor
56% domestic
market share
$ 3.4
billion
operating revenues
82.8% load factor
36% domestic
market share

25. COMPETITIVE ANALYSIS
WestJet
On-time landing rate is
(CBC, 2013)
60.9%
On-time landing rate is
(CBC, 2013)
70.0%

26. STRATEGIC DECISIONS
4

27. COMMUNICATION
OBJECTIVES

28. 70% PREFERENCE/LIKING
7% ACTION
90% AWARENESS
COMMUNICATION OBJECTIVESWestJet

29. TARGET AUDIENCE

30. TARGET AUDIENCE
WestJet
BRITISH
COLUMBIA
ALBERTA
ONTARIO
QUEBEC
Provinces with
highest Millennial
population
(Statistics Canada, 2013)
0.9M
0.8M
GEOGRAPHIC
2.9M
1.6M

31. TARGET AUDIENCE
WestJet
GEOGRAPHIC
BRITISH
COLUMBIA
QUEBEC
ALBERTA
ONTARIO
Airports with the highest
percentage of domestic
passenger traffic
(Statistics Canada, 2013)

32. TARGET AUDIENCE
WestJet
BRITISH
COLUMBIA
ALBERTA
ONTARIO
QUEBEC
Provinces with the
highest Millennial
population
(Statistics Canada, 2013)
0.9M
0.8M
GEOGRAPHIC
2.9M
1.6M
6.2M
Total
Millennial
popula=on
in
4
provinces
= all other provinces1.0M

33. TARGET AUDIENCE
WestJet
BEHAVIOURAL
AVERAGE NUMBER
OF BUSINESS TRIPS
PER YEAR
5
7.8
AVERAGE NUMBER
OF LEISURE TRIPS
PER YEAR
(Expedia, 2013)

34. TARGET AUDIENCE
WestJet
BEHAVIOURAL
MILLENNIALS
GEN X
20%
32%
9%
12%
TECHNOLOGY USAGE WHEN BOOKING (Expedia, 2013)

35. POSITIONING STRATEGY

36. POSITIONING STRATEGY
WestJet
Low-costcarrier
Limited service and diversity across Canada
Full service w/diverse destinations across Canada
High-costcarrier

37. MARKETING MIX
5

38. 3Ps PLACE, PRODUCT, PRICE

39. Route Map (WestJet, 2014)
3Ps PLACE, PRODUCT, PRICE
WestJet
PLACE & DESTINATIONS

40. 3Ps PLACE, PRODUCT, PRICE
WestJet
PRICE
A ONE-WEEK ROUND TRIP FLIGHT, BOOKED ONE-WEEK
IN ADVANCE, RANGES FROM $922 TO $1555
(WestJet, 2014)

41. PAST PROMOTIONS

42. PAST PROMOTIONS
WestJet
million views
on YouTube35
Christmas
Miracle
uploaded
YouTube videos250+
Owners Care

43. MARKETING
COMMUNICATION
STRATEGY
6

44. PROMOTIONAL MIX

45. PROMOTIONAL MIX
WestJet
STRENGTHS
Ø USERS OF PUBLIC TRANSPORTATION
Millennials consider public transit the most preferred
modes of transportation, as it allows them to multitask
and socialize while traveling (APTA, 2012)
Ø MILLENNIALS ARE VISUAL LEARNERS
Advertising allows the opportunity to create visually
aesthetic advertisements (Millennial Marketing, 2014)
PRIMARY TOOLS. ADVERTISING

46. PROMOTIONAL MIX
WestJet
PRIMARY TOOLS. INTERNET MARKETING
STRENGTHS
Ø COMPETITIVE EDGE ON SOCIAL MEDIA
Ø TECH SAVVY
83% have smartphones
98%
Millennials use
the Internet
(MTM, 2013)
75% - like,
retweet, or
share content
(The Case Foundation, 2013)

47. PROMOTIONAL MIX
WestJet
PRIMARY TOOLS. INTERNET MARKETING
LIMITATIONS
Ø HIGH USAGE OF ADBLOCK
AdBlock users are Millennials
(AdBlock Plus, 2011)
32%

48. PROMOTIONAL MIX
WestJet
PRIMARY TOOLS. PUBLIC RELATIONS
STRENGTHS
Ø TRUSTING OF USER-GENERATED AND THIRD-
PARTY CONTENT (Bazaar, 2012)
LIMITATIONS
Ø RISK OF LOW ROI ON PUBLIC RELATIONS
EXPENSES (Know This, n.d.)

49. MESSAGE DESIGN
& DELIVERY
7

50. THEME

51. MESSAGE DESIGN
WestJet
2
male
Canadian
Millennials 20
locations 2016
year
THEME
DISCOVER WITHIN

52. BROADCAST

53. MESSAGE DESIGN
WestJet
1introduces the campaign
and the two Millennials
commercial 2highlights WestJet’s diverse
Canadian destinations
commercial
3will be reflective of the
Millennials’ experience
commercial

54. MESSAGE VEHICLES
WestJet
120spots
97.1% average weekly reach
23.3million general viewers
during primetime
from Sunday to Thursday
March, May, October
(CTV, 2013)

55. PRINT

56. MESSAGE VEHICLES
WestJet
once a week
March, April, May
Ø HALF-PAGE, COLOURED
Ø FULL-PAGE, COLOURED
once a week
March

57. OUT-OF-HOME

58. MESSAGE VEHICLES
WestJet
Ø MAIN TRANSIT HUBS AND ARTERIAL ROUTES OF
VANCOUVER
EDMONTON
CALGARY
MONTREAL
TORONTO
March, April, May
September, October, November

59. PUBLIC RELATIONS

60. MESSAGE DESIGN & VEHICLES
WestJet
Ø CHARITABLE ACTIVITY within 3communities
Ø 20TH ANNIVERSARY CELEBRATION
Vancouver, Toronto, and Montreal

61. DIRECT MARKETING

62. MESSAGE DESIGN & VEHICLES
WestJet
January 1st, 2016

63. BUDGET
8

64. BUDGET
WestJet
TOTAL COST FOR THE DISCOVER
WITHIN ANNIVERSARY CAMPAIGN
NEWSPAPER
41%
SALES PROMOTION
TRANSIT
INTERNET MARKETING
PUBLIC RELATIONS
3%
8%
27%
15%
6%
TELEVISION
$4,915,000

65. Thank You!