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First Class Advertising
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Table of Contents



Executive Summary…………………………………………3
Client………………………………………………………...4
Purpose of the Advertising…………………………………..4   Cable TV Rationale…………………………………………
Media Objectives…………………………………………….4          Cable TV Budget……………………………………………
Media Budget………………………………………………..4            Spot TV Rationale……………………………………….….
Magazine Rationale…………………………………….……5         Spot TV Budget………………………………………….….
Magazine Budget……………………………………….……7           Radio Rationale……………………………………………..
Network TV Rationale………………………………………8         Radio Budget………………………………………………..
Network TV Budget……………………………………..…           Outdoor Rationale…………………………………………...
Internet Rationale…………………………………………..         Outdoor Budget………………………………………….…..
Internet Budget……………………………………………..           Non-Traditional Rationale………………………………...…
Newspaper Rationale………………………………….……          Non-Traditional Budget……………………………………..
Newspaper Budget……………………………………….…            Direct Mail Rationale………………………………………..
                                             Direct Mail Budget…………………………………………..
                                             Flowchart……………………………………………
                                             ……….
                                                                                                                                         3




Executive Summary                                                      From a total advertising budget of $155 million, we have
                                                                       allotted 10% or $15.5 million for production costs, leaving us
The introduction of JetBlue, Ted, Air Tran, and other
discount airlines has resulted in increased competition within                       Southwest Advertising Budget
the domestic airline industry. Our primary research revealed
that other airlines may be superior to Southwest concerning
amenities. However, Southwest has the advantage of being                           $1,050,000
first in the consumer’s mind for low prices. Southwest                                                                 Network TV
                                                                           $10,000,000          $10,000,000            Cable TV
Airlines is currently doing better overall than its competitors,
but if Southwest wants to continue this success, it needs to           $4,700,000                                      Spot TV
update its positioning strategy.                                                                                       Newspapers
                                                                      $9,605,800                         $20,885,000
                                                                                                                       Outdoor
Through advertising, we aim to increase awareness for
Southwest Airlines and establish it as the discount airline for                                                        Spot Radio
leisure travel in the United States. We want to remind              $13,911,228                                        Magazines
consumers that Southwest Airlines is the premier domestic                                                              Internet
discount airline. We want to modify consumers’ perceptions
                                                                                                                       Non-Traditional
of quality air travel by shifting the focus from amenities to                                        $26,884,800
                                                                          $16,000,000
service. Another goal is to build brand loyalty and to
increase usage.
                                                                       with a media budget of $139.5 million. This strong media
Our goals can be reached through a carefully planned                   budget will allow high reach and frequency among the target
advertising strategy. With an integrated marketing approach,           audience. Through magazines, newspapers, television, radio,
we will be using many media to achieve a large reach.                  internet, outdoor, direct mail, and non-traditional initiatives, we
Flighting will allow us to maximize impact at times of high            aim to increase brand awareness and preference.
volume while remaining within the budget. We will be
advertising nationally because Southwest flies to 59 cities in 32      Media Weight
states. Because they are not located in every city, we will be         Primary: Magazines, Network TV, Internet, Newspapers
concentrating efforts in 18 cities identified to have significant      Secondary: Cable TV, spot TV, radio
potential for increased sales.                                         Tertiary: Highway Billboards, Floor Display, Outfield
                                                                       Billboard, In-Arena Blimp, Driving Billboards
                                                                                                                                    4




Client
                                                                     Media Objectives
         Southwest Airlines will be advertising their services.
                                                                          Strengthen Southwest’s brand image by increasing
Purpose of the Advertising                                                 brand awareness 30% within the next year among
                                                                           primary and secondary target audiences. Increase brand
         To create awareness for Southwest Airlines and                   awareness 40% within the tertiary target.
          establish it as the discount airline for leisure travel         Modify target's perceptions of quality by shifting focus
          within the United States. We want to remind                      from amenities to service. New tagline ―because
          consumers that Southwest Airlines is the premier                 getting there should be fun too,‖ will reinforce this idea.
          domestic discount airline. We want to modify                    Build brand loyalty and increase usage to gain an
          consumers’ perceptions of quality by shifting the focus          additional 5% of the market share.
          from amenities to service. Another goal is to build             Increase market share by 10% within 17 cities
          brand loyalty and to increase the frequency of fliers.           identified for potential growth with concentrated
                                                                           advertising efforts.
Target Audience                                                           Achieve a frequency of 8 exposures per week
                                                                           throughout all media and reach 80% of the target
                                                                           audience.
         College-educated, married couples aged 25-54 who live
                                                                          Achieve increased frequency and reach before periods
          in regions served by Southwest. We also want to target
                                                                           of heavy travel, specifically in the month of May to
          those categorized as Experiencers because, according to
                                                                           coincide with increased enplanements during the
          VALS, they value trying new things, taking risks, and
                                                                           summer months.
          being active and social. The secondary audience
          includes the same demographic as the primary
          audience, and has children. The tertiary audience          Media Budget
          includes the demographics of the primary audience
          while specifically targeting the two largest minority           The media budget for the Southwest campaign will be
          groups, African Americans and Hispanic Americans.                $139.5 million. This figure is 90% of the entire $155
          There are a total of 29 million people within our target         million advertising budget for the campaign. The other
          market, not taking psychographics into account. 1                10% ($15.5 million) will be allotted to production costs.


1
    Air Vacation MRI Spreadsheet
                                                                                                                                                  5




         The advertising budget of $155 million was used by            We also included Philadelphia, because Southwest has recently
         Southwest in 2003.2                                           expanded into the Philadelphia airport and would gain
Regions with Increased Potential                                       increased sales with increased awareness in the area. In
We chose to concentrate advertising to areas with the most             addition, we chose to include Orlando and Detroit because they
Southwest flights or regions where there is significant potential      were ranked number 9 and 10 of the top 10 airports by
for increased sales. We chose to publish advertisements in             domestic enplanements. Other cities already serviced by
Southwest’s top 10 cities (Las Vegas, Phoenix,                         Southwest were included above.
Baltimore/Washington, Chicago, Huston, Oakland, Dallas, Los
Angeles, Nashville & San Diego)                                             Top 10 Airports ranked by January to July 2004
                                                                                      Domestic Enplanements4
         Southwest Airlines’ Top Ten Airports:
              (as of October 31, 2004)3
Cities                      Daily      Number Nonstop Established                                           Jan-July     Jan-July      Jan-July
                                                                           Rank        Airport Name           2003         2004       2003 Rank
                         Departures       of       Cities                         Hartsfield-Jackson
                                                                           1      International             20,667,958   22,204,402      1
                                        Gates     Served
                                                                           2      O’Hare* International     16,477,332   17,852,555      2
Las Vegas                    195          19        49          1982              Dallas-Ft Worth*
Phoenix                      190          21        40          1982       3      International             13,238,197   15,105,604      3
                                                                                  Los Angeles**
Baltimore/Washington         165          21        36          1993       4      International             11,357,230   12,384,878      4
Chicago Midway               145          19        30          1985       5      Denver International       9,930,660   11,511,556      6
                                                                                  Las Vegas* McCarran
Houston Hobby                139          17        23          1971       6      International              9,710,965   11,158,144      7
Oakland                      129          11        13          1989              Phoenix Sky* Harbor
                                                                           7      International             10,486,304   10,916,741      5
Dallas (Love Field)          123          14        19          1971              Minneapolis-St. Paul
                                                                           8      International              8,671,619    9,426,011      8
Los Angeles (LAX)            117          12        20          1982              Detroit Metropolitan***
Nashville                     86          10        27          1986       9      Wayne County               8,172,832    8,764,312      9
                                                                                  Orlando***
San Diego                     85           8        12          1982       10     International***           7,405,934    8,733,662      11



2
  "Southwest Airlines Co. Financial Fact Sheet" September 20, 2004.
<www.hoovers.com/subscribe/co/fin/factsheet.xhtml?ID=11377>
3                                                                      4
  Southwest Airlines Fact Sheet. Nov. 20, 2004.                         Smallen, Dave. Seven-Month Domestic Traffic Up 7.9 Percent From
<http://www.southwest.com/about_swa/press/factsheet.html>              2003. Nov. 1, 2004. <http://www.dot.gov/affairs/bts2804.htm>
                                                                                                            6




        We have also chosen four cities with airports listed
        among the fastest growing in the nation - Norfolk,
        Sacramento, Ft. Lauderdale, and Manchester. These
        cities offer the opportunity for increased revenue for
        Southwest if we can entice the customers driving up the
        number of enplanements each year to choose Southwest
        over its competitors.

        Fastest Growing Airports - 2000 - 20085

        * Cities seCby * Cities served by Southwest to
        a
        Rank           2000 2001 2002 2003 2004 2005 2006 2007 2008 Growth
        d
        Airport
        v Long Beach
        1.             312    296    731    708    714    719    734    749    764    144.9%
                                                                                      39.6%
        2.
        e Flint
        3. Burlington
                       336
                       450
                              304
                              522
                                     367
                                     550
                                            380
                                            533
                                                   411
                                                   543
                                                          444
                                                          553
                                                                 452
                                                                 563
                                                                        460
                                                                        574
                                                                               469
                                                                               586    30.2%
        r Oakland**
        4.             5,288  5,697  6,373  6,179  6,301  6,427  6,559  6,697  6,842  29.4%
        5.
        t              7,345  7,430  8,167  8,350  8,537  8,732  8,937  9,152  9,378  27.7%
        Chicago/MDW**
        i Madison
        6.             666    673    768    744    758    773    788    804    820    23.1%
        s Akron/Canton 396
        7.                    355    450    436    444    453    462    471    481    21.6%
        8. Norfolk***  1,523  1,482  1,732  1,673  1,700  1,729  1,759  1,790  1,823  19.7%
        e Phoenix**
        9.             17,602 17,551 17,607 17,904 18,426 18,978 19,562 20,181 20,839 18.4%
        10.              3,957   4,006   4,256   4,132   4,218      4,307   4,401   4,498   4,601   16.3%
        Sacramento***
        i Fort
        11.              7,977   8,137   8,546   8,287   8,450      8,621   8,799   8,985   9,180   15.1%
        n
        Lauderdale***
                                                                                                    14.5%
        12.
        * Richmond
        13. Billings
                         1,352
                         354
                                 1,207
                                 353
                                         1,186
                                         379
                                                 1,403
                                                 367
                                                         1,430
                                                         374
                                                                    1,457
                                                                    381
                                                                            1,486
                                                                            389
                                                                                    1,516
                                                                                    396
                                                                                            1,548
                                                                                            405     14.3%
        *
        14.              1,585   1,629   1,685   1,633   1,664      1,697   1,731   1,766   1,803   13.8%
        Manchester***
        15. Harrisburg   636     564     676     654     667        679     693     707     721     13.5%
        A
        Airports served by Southwest to advertise in
        *** Cities added to advertise in


5
 The Boyd Group. Airports USA: Forecast Bulletins. Nov. 20, 2004.
<http://www.airportsusa.com/SUM218a.PDF>
                                                                                                                                         7



Magazines
                                                                             Baltimore Magazine, ―written for middle- and upper-
All magazine ads will be full color to convey the fun tone and               income Central Maryland residents who want to keep
enforce brand recognition. All advertisements will be a full                 up on local people, places, and events,‖ targets
page, except in publications where we will only advertise in 2               experiencers who like to try new things, and visit new
or fewer issues. In publications where we will only advertise 1              places. 88% of their readers have taken a roundtrip
or 2 times in a year we will use a series of four ¼ page ads.                domestic flight for leisure purposes in the past year.
Repetition partnered with articles about travel will increase                That is an index of 114, which reduces the waste of
recall, and provide more value for the price.                                advertising in this publication. Readers of Baltimore
                                                                             Magazine live near BWI, which is one of Southwest’s
                                                                             top 10 serviced airports. We will be looking to increase
   Regional Publications
                                                                             usage in this area to increase our stronghold of the
    We chose publications in each city that have an affluent
                                                                             market share. 91.7% are not regular readers of the
    audience, which would possess the traits of our target
                                                                             Washingtonian; therefore by advertising in both
    audience. These publications have low waste because they
                                                                             publications, there will be a low amount of wasted
    are distributed to a specific audience located in close
                                                                             advertising dollars on duplication.6
    proximity to airports serviced by Southwest. They have the
    finances and ability to purchase the product; the next step is
                                                                             The Washingtonian was chosen to increase our reach
    to increase their desire to make the purchase. This can be
                                                                             in the surrounding areas of BWI Airport. The
    done through carefully planned advertising which will
                                                                             Washingtonian ―publishes articles on a variety of
    emphasize the benefits of flying with Southwest. We will
                                                                             issues, including dining out, wine, real estate, money,
    employ a continuous advertising schedule for the regional
                                                                             people, movies, beauty, fashion, shopping, sports, the
    publications. Although there is some seasonality to the
                                                                             federal and local governments, history, gardening,
    sales of leisure flights, there are people flying for leisure
                                                                             homes, travel, and art.‖ 7 With a circulation of 161,062
    purposes year round. We want people who live in highly
                                                                             this publication will increase our reach within the BWI
    trafficked Southwest areas to be aware of Southwest as an
                                                                             region among our target audience.8
    appealing option for their flights. For the majority of the
    cities we have chosen, there is one publication that covers
    the region efficiently. The exceptions are explained below:
                                                                     6
                                                                       Baltimore Magazine Media Kit
                                                                     7
                                                                       Limpert, John. Letter From the Editor. Oct. 1, 2004.
o BWI – for Baltimore/Washington Airport, we chose two
                                                                     <http://www.washingtonian.com/about/editorletter.html>
  separate publications. Each publication represents one of          8
                                                                       The Washingtonian Magazine. Oct 1. 2004 <http://www.mriplus.com/cgi-
  the two diverse areas serviced by the airport.                     bin/WebObjects/mriplus.woa/9/wo/FZJVo3EPmrSS7blZMuVXEM/2.0.5.1.
                                                                     12.24.0.1>
                                                                                                                                    8




o Huston Hobby/Dallas (Love Field) – For both of these                     San Francisco Magazine, created in 1968 as a source
  airports, we have chosen one publication.                                of information about the people and issues that are vital
                                                                           to maintaining the San Francisco lifestyle. Content is
       Texas Monthly efficiently reaches both of the Texas                 geared to the regional resident and visitors interested in
       cities serviced by Southwest. It is more cost efficient to          sampling part of the local environment. Regular issue
       advertise in one magazine in this case because it is the            features include coverage of regional politics and social
       home state of Southwest Airlines. The company does                  issues, restaurants, personalities, and the performing
       well in Texas and has a fairly consistent customer base.            and visual arts.
       It would be more cost efficient to use supplementary
       funds in areas that are growing or have added potential         Travel Magazines
       for growth.                                                      We will be advertising in some of the most well known
                                                                        travel magazines. Advertising in travel magazines is a
o Ft. Lauderdale – Because there were no magazines                      great way to reach the people who fly for leisure. We have
  published specifically for Ft. Lauderdale effectively                 selected a wide range of magazines to advertise in. We will
  reaching our target market, we have decided to advertise in           be using flighting for all of the magazines with the
  a publication with a slightly broader reach. Although our             exceptions listed below.
  advertising is also reaching the Miami area, there is little
  waste because Miami residents can be convinced to travel              Travel + Leisure Family is only published 3x a year. The
  to Ft. Lauderdale, which is only about 20 minutes away for            magazine is sent to families who subscribe to Travel +
  Southwest’s competitive fares and superior service.                   Leisure. We will purchase one full page in each issue
                                                                        because it goes directly to our secondary target market of
       South Florida Magazine was chosen to cover the Ft.               families with children in the household.
       Lauderdale area. Because there were no available rates
       or circulation information, we had to estimate the costs         Travel America is published bi monthly. We will
       for this publication based on regional publications with         advertise in all six issues because it is a very efficient
       similar qualities.                                               medium to reach our target audience. Because Southwest
                                                                        only provides domestic flights at this time, Travel America
o Oakland – Due to the small size of the Oakland Area, we               is a particularly suitable publication because it publishes
  chose to advertise in a publication from a nearby city. The           articles about domestic destinations.
  publication is for the Bay Area and effectively reaches
  residents of Oakland.
                                                                                                                                        9




    Travel + Leisure is publishing an American Issue in April             December’s ―The New Life List: The vacations you must
    so we will be sure to publish our advertisements in that              take before you die.‖
    particular issue.
                                                                          Sierra features an Annual Wild Journeys Issue with an
                                                                          article entitled ―Travel, Ten Great Escapes‖ in the
                                                                          March/April issue. Sierra also features an article entitled
   Special Interest Magazines                                            ―Annual natural wonders of Florida‖ in their
    We selected special interest magazines with high indexes              November/December issue.
    for leisure travelers within the past year. We will advertise
    in fewer issues of these magazines that feature articles on           Sunset features ―Easy Last-minute Vacation for End of
    travel. There will be four ¼ page color ads to increase               Summer,‖ in the August issue.9
    recall. The ads will also be positioned near the travel-
    focused articles. By advertising in national publications            Minority focused
    less frequently, but in strategically chosen articles and             We have chosen 2 magazines to reach our tertiary targets of
    positions we will increase our reach with minimum waste.              African Americans and Hispanic Americans. We chose
                                                                          publications with high circulation. After comparing the
    Bon Appetit features a May 2005 Annual Travel Issue                   adjusted costs per thousand we chose suitable magazines.
                                                                          We will employ a flighting schedule to reduce waste on
    ESPN the Magazine will be utilized for its February Super             readers outside of our target audience.
    Bowl preview issue, October MLB training camp preview,
    and May NBA Playoff Preview. This strategy is to align
    with the advertising strategy for network television, where
    we will be advertising during these programs.

    Men's Health features a November article entitled ―Best
    and Worst Cities for Men.‖

    Outside Magazine features many travel articles. We have
    chosen to advertise in the 3 most appropriate for our target;
    June ―American Summer: Great pleasures, places, and
    adventures in 50 states,‖ September ―Outside Travel, Fall
    edition: Best warm & cold weather travel destinations,‖ and     9
                                                                        All article titles found at www.mediacalendars.com
                                                                                                                                                           10




 Pricing                                                                            The Washingtonian Magazine   12   $19,135               $16,765    $13,010
        For increased insertions, we took advantage of discounted                    Travel + Leisure             12   $87,530               $84,904     $8,378
        rates as noted in the chart below:                                           Travel + Leisure Family       3   $13,555    $21,905
                                                                                     Travel America                6   $15,995    $15,415    $14,945
                                                                                     VISTA Magazine               12   $35,000    $33,300    $31,570    $27,990
                                                                                     Washington Life               9    $9,650 $8925 (4X) $7,960 (9X)
Publication              frequency       1x          3x         6x            12x
Arthur Frommers Budget
Travel                         12    $29,150    $26,818    $25,652        $21,862
Baltimore Magazine             12     $7,035     $6,332     $5,630         $4,492
Bon Appetit                    12    $92,190    $89,424    $87,581        $82,049
Chicago Magazine               12    $27,270    $26,870    $26,330        $24,995
Child                          10    $74,770    $72,525    $70,285 $67295 (10X)
Conde Nast Traveler            12    $76,910    $74,603    $73,065        $68,450
Ebony                          12    $59,093    $57,911    $56,138        $53,184
ESPN The Magazine              26 $165,000     $160,050   $156,750       $148,500
Family Fun                     10 $122,230 119785 (2) 116120 (5) 110005 (10X)
Hour Detroit                   12     $5,985     $5,685     $5,386         $4,788
Las Angeles Magazine           12    $18,959    $18,387    $17,825        $16,681
Las Vegas Life                 12     $9,980     $9,190     $7,935         $7,175
Men's Health                   10 $131,360     $126,105   $123,480       $119,540
Nashville Scene                52     $2,350 $2253 (4X) $2,214 (8X)   $2,155 (13X)
Orlando Magazine               12     $4,015                $3,495         $2,890
Outside                        12    $70,835    $68,710    $67,295        $63,045
Pheonix Magazine               12     $5,640                $5,035         $4,530
Philadelphia Magazine          12 $188,110      $17,850    $17,580        $16,670
Sacramento Magazine            12     $5,950     $5,450     $5,250         $5,050
San Diego Magazine             12    $16,440               $15,265        $14,655
San Francisco Magazine         12    $15,163    $27,966    $27,902        $25,948
Sierra                          6    $38,745    $36,810    $34,895        $33,175
Sunset                         12    $83,900    $78,866    $76,768        $75,510
Texas Monthly                  12    $33,420               $31,580        $29,920
The Atlantic Monthly           11    $37,800
The New Yorker                 46    $86,505    $83,910    $82,180        $76,989
                                                                                                                                                      11




Magazine
 Budget
                                                                                                                        Total Target
                                                                                                Total Gross               Audience       Adjusted    Adjusted
Publication        Index   Reach   Circulation   Rate (1x)   Frequency   Total Cost     CPM     Impressions    Comp.    Impressions    Circulation      CPM
Bon Appetit         194     5.67    1,292,109     $92,190           1      $92,190     $71.35   1,292,109.00   0.2804       362,307       362,307    $254.45
ESPN                105     4.95    1,790,078    $160,050           3     $480,150     $89.41   5,370,234.00   0.1523       817,887       272,629    $587.06
Family Fun          139      2.4    1,736,719    $119,785           2     $239,570     $68.97   3,473,438.00   0.2012       698,856       349,428    $342.80
Men's Health        130     6.01    1,718,319    $131,360           1     $131,360     $76.45   1,718,319.00   0.1884       323,731       323,731    $405.77
Outside             172     1.63      657,485     $68,710           3     $206,130    $104.50   1,972,455.00   0.2492       491,536       163,845    $419.36
Sierra              220     1.45      701,925     $38,745           2      $77,490     $55.20   1,403,850.00   0.3188       447,547       223,774    $173.14
Sunset              188     4.14    1,455,407     $83,900           2     $167,800     $57.65   2,910,814.00   0.2714       789,995       394,997    $212.41
The Atlantic
 Monthly            212     1.29      447,731     $37,800           1      $37,800     $84.43    447,731.00    0.3058       136,916       136,916    $276.08
The New Yorker      203     3.69    1,003,205     $83,910           3     $251,730     $83.64   3,009,615.00   0.2936       883,623       294,541    $284.88

Arthur Frommer's
 Budget Travel                     700,000**      $26,818           3      $80,454
Conde Nast
 Traveler           227     3.54      779,081     $76,910           3     $230,730     $98.72   2,337,243.00   0.3279       766,382       255,461    $301.06
Travel & Leisure    210     4.61      976,402     $87,530           4     $350,120     $89.65   3,905,608.00   0.3036     1,185,743       296,436    $295.27
Travel & Leisure
 Family                            200,000**      $21,905           3      $65,715    $109.53    600,000.00
Travel America                        242,543     $14,945           6      $89,670     $61.62

Baltimore
 Magazine           114                53,150      $4,492          12      $53,904     $84.52    637,800.00
Chicago Magazine                      182,886     $24,995          12     $299,940    $136.67
Las Angeles
 Magazine                             165,000     $16,681          12     $200,172    $101.10
Las Vegas Life                        34,000*      $7,175          12      $86,100    $211.03
Nashville Scene                     30,000**       $2,253           3       $6,759     $75.10
Philadelphia
 Magazine                             131,564     $16,670          12     $200,040    $126.71
                                                                                                                                                12




Phoenix Magazine                              63,152      $4,530   12         $54,360     $71.73
San Diego Magazine         193                50,184     $14,665   12        $175,980    $292.22
San Francisco
 Magazine                                   125,055*     $25,948   12        $311,376    $292.22
Texas Monthly              161       1.74    300,225     $29,920   12        $359,040     $99.66   3,602,700.00    0.2332   840,150   70,012    $427.35
The Washingtonian
 Magazine                                    161,062     $13,010   12        $156,120     $80.78
Hour Detroit                                  45,000      $4,788   12         $57,456    $106.40
Orlando Magazine                              25,000      $2,890   12         $34,680    $115.60
Virginia Living                              56,000*     $3,300*   12         $39,600     $58.93
Sacramento
 Magazine                                     37,238      $5,050   12         $60,600    $135.61
South Florida                               35,000**    $5,500**    3         $16,500    $157.14
New Hampshire
   Magazine                                  26,000*     $2,984*   12         $35,808    $114.77

                                 5          1,732,117
Ebony                            7   3.15                $56,138    6         $336,828    $32.41   10,392,702.00   0.0822   854,280   142,380   $394.28
Vista                                       1,000,000    $31,570    6         $189,420    $31.57




            Total                                                       $5,175,592


*from mediacalendars.com


**Estimated number
                                                                 13


Network Television

 Super Bowl XXXIX
  Through our secondary research we have found that a large
  segment of our target audience watches football. We have
  decided to advertise during the Super Bowl when there is a
  large percentage of our target audience watching the game.
  We will run four 30-second spots during the game, two
  before halftime and two after. Although the cost is high we
  have decided that the amount of people we will reach will
  be worth it. Southwest Airlines is also a sponsor of Super
  Bowl XXXIX so we felt it would be important to have our
  image seen during the game no matter what the cost.

 MLB World Series
  Since a large segment of our target audience watch sports
  we chose to advertise during the World Series. Since the
  World Series is a best of seven series and a team could win
  in four games we decided to run ten 30-second spots during
  throughout all the games. The World Series is national
  coverage so we will be able to reach a large percentage of
  our target audience.

 NBA Championships
  For the same reason we are advertising in other premium
  sport venues we will be advertising during the NBA
  Championship series. As stated in our situation analysis,
  Southwest Airlines is a fun airline and tries to convey that
  through their commercials. When people watch the NBA
  Finals they are in an entertained and fun mood, which
  coincides with Southwest’s image. The cost is high for the
  Championship series but the expected reach will make the
  advertising worthwhile.
                                                                                                                                                                                            14




Network TV
 Budget
                                # of 4    Average             Average                                                                                                           Cost Per flight
                                week      4 Week               4 Week            Average               Cost Per                                    CPP ($)                  (CPP times number
Dates of Flights               flights     Reach            Frequency        Flight GRPs              Spot (:30)   # of Spots        Total Cost (Estimated)   Total GRP's       of GRPs/flight)


Feb. 6 (Super Bowl)              0.25       40.7%                 70%               28.49     $ 2,500,000.00               4    $ 10,000,000.00   $351,000          7.12               $87,750
Nov. (World Series)              0.25       13.6%                 70%                9.52       $ 325,000.00              10     $ 3,250,000.00   $341,387          2.38               $85,347
June (NBA
Championships)                   0.25       14.7%                 70%               10.29       $ 400,000.00              10     $ 4,000,000.00   $388,727          2.57               $97,182
                                                                                                                                $ 17,250,000.00


                              Rating/                         Cost Per
Target Programs:               GRPs          Index           Spot (:30)              CPP

Super Bowl*                      40.7          128      $ 2,500,000.00         61,425.06

World Series**                   13.6          120        $ 325,000.00         23,897.06

NBA Championships***             14.7          118        $ 400,000.00         27,210.88



*"Super Bowl ratings up 1 percent" New York (AP) 1/27/04
http://sportsillustrated.cnn.com/football/2003/playoffs/news/2003/01/27/superbowl_ratings_ap/
"Super Bowl Advertising: Calling an end around" By Chris Jones 2/2/04
http://www.reviewjournal.com/lvrj_home/2004/Feb-01-Sun-2004/business/23089183.html
**"World Series Makes FOX Sunday Winner" 10/25/04
http://tv.zap2it.com/tveditorial/tve_main/1,1002,272%7C91404%7C1%7C,00.html
"Fox hits triple with postseason" Andrew Stein 10/07/04
http://money.cnn.com/2003/10/07/news/companies/fox_baseball/
***"Lakers clinching performance draws series-high ratings" New York (AP) 6/21/04
http://sportsillustrated.cnn.com/basketball/nba/2000/playoffs/news/2000/06/20/nbafinals_ratings_ap/
NBA Playoffs Up on Cable, John Consoli:
http://www.mediaweek.com/mediaweek/headlines/article_display.jsp?vnu_content_id=1880565
                                                                                                                                    15




Internet                                                                  information about its types of ads so the average price and
                                                                          type was taken from the other sites.12
 Websites                                                                Google.com- Google.com is one of the 5 most popular sites
     These sites were chosen because they reach our target
                                                                          on the Internet and is used around the world by millions of
     market on a leisure basis, such as sports or entertainment.
                                                                          people. Targeting is based on advertiser selected keywords
                                                                          or sophisticated content analysis algorithms, so ads always
     CNN.com- CNN.com is among the world’s leaders in
                                                                          appear in context with other information on the page.
     online news and information delivery. The site is updated
     continuously throughout the day and offers a travel
                                                                          MSN.com- 3 out of 5 people online visit MSN every
     section.10
                                                                          month and they attract an affluent audience of 350 million
                                                                          Internet enthusiasts each month. Targeting is based on
     ESPN.com- This site is the leading provider of sports on
                                                                          advertiser selected keywords or sophisticated content
     the internet for young, affluent, male sports fans. The main
                                                                          analysis algorithms, so ads always appear in context with
     audience for ESPN our median aged males who are eighty-
                                                                          other information on the page.13
     nine percent college education and seventy percent
     employed full time. These demographics fit perfectly
                                                                          Sportingnews.com- This site has a high index on men ages
     within Southwest’s target market. The site has 15.5 million
                                                                          twenty-five to forty-nine, who are within are target market.
     monthly unique users, 1.3 billion monthly page views, and
                                                                          Men who visit this site are more likely to buy an airline
     the average time spent on the site is nine minutes everyday.
                                                                          ticket online because there users are intelligent, savvy and
     This means that Southwest would be reaching part of there
                                                                          eager to interact with new technologies.14
     target market on a daily basis and for up to nine minutes.
     This site also coincides with our advertising in magazines,
                                                                          Travelandleisure.com- This website is also a magazine
     television, and radio.11
                                                                          that we are also advertising in. This way we are making
                                                                          sure that the consumer is getting are message and creating
     Fodors.com- What this site offers is very similar to the
                                                                          more frequency. This website is a great specifically
     other travel websites we have chosen to use, it has a link to
                                                                          reaches are target market or adults 24-55 who are traveling
     Expedia.com and also offers articles tips for traveling and
                                                                          for leisure purposes. The circulation of the magazine was
     bargains. This site did not offer any GPM’s or any

                                                                     12
                                                                        www.Fodors.com
10                                                                   13
   www.CNN.com                                                          www.MSN.com
11                                                                   14
   www.ESPN.com                                                         www.Sportingnews.com
                                                                                                                                    16




     used as the monthly unique users, because that number                local sites, geared at reaching the consumer on a more
     could not be found.15                                                personal level. All the sites chosen are local informational
                                                                          sites, local newspaper sites, or local magazine sites.
     Weather.com- Although no travel information is offered
     on this site, many people visit it to find out the weather of        ChicagoTribune.com- Chicago Tribune’s sites are number
     there desired destination. Also people check this site when          one in total market reach for Chicago news and information
     they want to find out the local temperature, Southwest               Web sites. Many Chicagoans choose to get their online
     airlines could customize its advertisements to target                news from a trusted, local brand, the Chicago Tribune.com.
     consumers. For example for people who live in cold areas,            The audience is young, educated, and affluent and it
     they could say, ―Want to go some where warmer? A flight              reaches more than a million readers every month.19
     to somewhere warm is only this much on Southwest
     airlines.‖ 16                                                        DallasNews.com- The site offers everything you could find
                                                                          in the newspaper, including a travel section. It is currently
     USAToday.com- 8.9 million unique readers visit this site             the number one site in Dallas-Fort Worth and has about
     to get the breaking news. They also has a travel section             700,000 registered users.20
     where consumers can learn about places they want to go.17
                                                                          HoustonPress.com- This site offers information about
     Yahoo.com- Yahoo! is the No. 1 Internet brand globally               what to do in Houston.
     and attracts the largest audience worldwide - over 237
     million unique users per month. Targeting is based on                LATimes.com- They are one of the leading sources on the
     advertiser selected keywords or sophisticated content                web for news and also offer a travel section. The site
     analysis algorithms, so ads always appear in context with            generates 64.5 million unique users a month.21
     other information on the page.18
                                                                          NashvilleScene.com- This is a local website that offers
 Individual Cities                                                       information about what’s going on in Nashville including
     These ten cities listed below were used because they are             travel.22
     Southwest Airlines top ten airports. The websites are all

15                                                                   19
   www.Travelandleisure.com                                             www.ChicagoTribune.com
16                                                                   20
   www.Weather.com                                                      www.DallasNews.com
17                                                                   21
   www.USAToday.com                                                     www.LATimes.com
18                                                                   22
   www.Yahoo.com                                                        www.Nashvillescene.com
                                                                                                                                      17




     OaklandTribune.com- The Tribune specializes in a
     complete daily local news report and has a travel section.23          CheapTickets.com- CheapTickets.com is a leading seller
                                                                           of discounted leisure travel products online. 84% of its
     SignOnSanDiego.com- This site reaches almost one in                   audience is educated with a college degree or more and has
     three San Diego County adults. The users are                          27 million registered members.27
     predominantly young, affluent, educated professionals with
     a wide range of information needs.24                                  Expedia.com- Expedia, Inc. is the world’s leading online
                                                                           travel service and the fourth largest travel agency in the
     BaltimoreSun.com- This site offers information on news                United States. Consumers that are looking to book
     around the world, and includes a travel section.25                    discount flight reservations are likely to visit this site.
                                                                           Expeida.com is one of the 75 most-visited sites and had
     Vegas.com- This site has information all about Las Vegas              17,314,000 unique users in October 2004 alone. The mean
     and includes a search for flight information.26                       age of those who visit Expedia is forty-two, and 69 percent
                                                                           of them are married.28

 Travel Websites                                                          Flights.com- This website offers cheap airline tickets from
     We chose to do a national campaign for internet by                    a large group of Southwest’s competitors. One of our
     choosing popular travel sites that consumers visit when               objectives is to create awareness about Southwest; this
     purchasing discount airfare. All of the travel websites               would be an excellent site to do this because it is used by
     chosen do not offer Southwest airlines as one of its                  our target market. Although the website offers more than
     discount airlines. However we feel that by advertising on             just domestic flights, it is an inexpensive site to advertise
     these sites, it will make consumers consider Southwest                on. We have chosen the rotating banner at the bottom of
     airlines for their leisure travel when they usually would not.        the page between 5 different banners for only $299.00 a
     By advertising on these sites, Southwest is gaining                   month, and also 10,000 impressions a month.29
     exposure to consumers who they know are in their target
     audience. Southwest can run an ad on these sites that                 Orbitz.com- Orbitz is a leading online travel company and
     informs consumers that not all discount fares are shown,              has an award-winning flight engine that makes it easy to
     and have a button linking them to Southwest.com.                      find the lowest fares on more than 455 airlines. All airlines
23
   www.OaklandTribune.com
24                                                                    27
   www.SignOnSanDiego.com                                                www.CheapTickets.com
25                                                                    28
   www.BaltimoreSun.com                                                  www.Expedia.com
26                                                                    29
   www.Vegas.com                                                         www.Flights.com
                                                                  18




     except for Southwest; by advertising on this site we are
     reaching consumers that they normally would not reach. It
     is a great site to try and gain the attention of many
     consumers in our target market. The site also has one of
     the highest monthly unique users of 25 million.30

     Priceline.com- This website also offers cheap airline
     tickets from a large group of Southwest’s competitors.
     There audience consists of 12 million customers, males and
     females with an average age of forty-two and of which
     eighty percent have a college education.31

     Travelocity.com- This site has 41 million member and 15
     million unique visitors with 320 million monthly average
     page views. 69% of the audiences are married who are
     web-savvy and are experienced with buying tickets
     online.32




30
   www.Orbitz.com
31
   www.Priceline.com
32
   www.Travelocity.com
                                                                                                                                                                         19




Internet
  Budget
Website                         Types of Ad Monthly Unique Users (UU) Weekly Unique Users CPM Monthly Cost Weekly Cost Frequency Gross Impressions Total Cost for Year


ESPN.com           Skyscraper                              15,500,000           3,576,923   $40     620,000      155,000         9        32,192,307      1,395,000
Expedia.com        Targeted Banner (468x60)                17,314,000           3,995,538   $35     139,825       34,956         9        35,959,842        314,606
Orbitz.com         Targeted Banner (468x60)                25,000,000           5,769,231   $45     259,605       64,901         9        51,923,079        584,111
Priceline.com      Banner (468x60)                          3,200,000            738,462    $40       29,520       7,380         9         6,646,158         66,420
sportingnews.com   Skyscraper                              15,500,000           3,576,923   $40     143,040       35,760         9        32,192,307        321,840
Travelocity.com    Banner (468x60)                         15,000,000           3,461,538   $30     103,830       25,958         9        31,153,842        233,618

                                                                                                                                     Total Cost=          2,915,595
            20



Newspaper
                                                                                                                                      21



Cable Television                                                           schedule many movies in its lineup, the viewers are in the
                                                                           mindset of having fun, a great place for Southwest to
Cable television will allow Southwest airlines to communicate
its brand to a mass audience, while still allowing it to focus on
key target markets. While cable’s total costs are higher than              capture its fun psychographic. Moreover, A&E will allow
other mediums like radio, it still has a relatively low CPM. For           Southwest a high reach (24.57).
instance, the average CPM for all cable vehicles was 46 cents.
By reaching a mass audience, Southwest can build its brand                BET: While BET has a low MRI index of 65 and reaches
image, and generate an impact on the consumer much greater                 only 5.92 % of our overall target audience of leisure flyers,
than its competitors. Since it has the budget to allow this kind           this channel is a great resource for reaching the African
of heavy impact, it should take advantage of this situation and            American segment of our tertiary audience. African
maintain its place at the top rung on the product ladder in the            Americans dominate 24 of the 59 markets that Southwest
leisure traveler’s mind.                                                   serves. Southwest has advertised on this channel in the
                                                                           past and has established a strong working relationship with
Although cable television is more fragmented than network                  BET and its viewers.
television, it offers a valuable way to pinpoint a more specific
audience, reducing wasted media dollars. We chose channels                Bravo: Bravo has a relatively high index of 119, and
with content that interests our target market. All channels fall           reaches the primary target audience of 25-54 year old
within the target audience age range of 25-54, some nearer to              professionals with high education and middle to upper level
the older end, others nearer to the younger end of that age                income. According to the MRI report, it also has the
range.                                                                     television show, ―The West Wing‖ which has the highest
                                                                           index with air vacation travelers (176), reaches 11.71 and
More spots were bought on cable channels with higher reach,                has a great composition of 25.43.
target audience viewer index and composition, to increase both
effectiveness and efficiency. The average number of spots per             CNN: CNN reaches by far the most viewers in
channel per week was 3.05, or about 12 per channel per four-               Southwest’s target audience, with a coverage of 42.93. It
week flight. The total cost of $23,945,000 used about 17% of               also has a high index (120) and decent composition (17.42).
the total media budget.                                                    The viewers are interested in news, golf and leisurely
                                                                           vacations.33
   A&E: Southwest’s reality TV show ―Airline‖ is shown
    during prime time on A&E. Its audience members are
    more affluent and educated than most. Since A&E tends to
                                                                    33
                                                                         Ibid.
                                                                                                                                        22



   E!: E! Entertainment Television stands for the same thing               connection.‖34 Lifetime also offers an opportunity for
    in television programming as Southwest has positioned                   Southwest to strengthen its brand image in the world of
    itself in the discount airline market: fun. E! targets the              women’s basketball in the same way that relates to the
    female audience especially, and has a decent reach (17.52),             men’s NBA.
    composition (15.94) index (110).
                                                                           TBS: TBS is ―the #1 cable network for adults 18-49 in
   ESPN: Southwest has an established relationship with                    prime and total day.‖35 This age group comprises most of
    ESPN. Through association with the channel that viewers                 the target 25-54 age range. TBS has a high reach (27.46) as
    turn to for sports, Southwest is associating its brand with             well and fun programming, sports, and movies.
    fun and quality entertainment. Many sports fans also travel
    for leisure to visit the ballparks and stadiums of their               TNT: TNT is another highly rated cable channel with
    favorite sports teams. ESPN gives access to all sports                  which Southwest already has a working relationship. It is
    venues, especially: NFL, college football and basketball,               especially prominent in NBA programming. TNT has a
    NBA, PGA Golf, and baseball, all of which have high                     high reach of 23.56 and decent composition of 13.45, and is
    ratings and reach the primary target audience. ESPN has a               geared toward the age range of our target demographic.
    very high reach of 28.2 an index of 123, and a relatively
    high composition of 17.79.                                             USA: This channel enables Southwest to target families
                                                                            who are in the mood for fun, since USA is dominant among
   The Golf Channel: The Golf Channel had the highest                      cable television family programming, offering many
    index (131) for air vacation travelers. The leisurely attitude          movies and sitcoms. Its reach is powerful (23.71) and its
    is reflected in its programming of golf tournaments, which              composition is 13.23.
    all have high ratings with air vacation travelers. The Golf
    Channel has a high composition of 18.9.                                The Weather Channel: The Weather Channel has an
                                                                            exceptionally high reach of 36.76 and targets consumers
   Lifetime: Although it is known as an excellent way to                   who may be planning a domestic trip to another U.S.
    connect with the more specific audience of women,                       vacation spot. It has resort information which connects
    Lifetime also is useful to Southwest because it has a high              with leisure travelers, so Southwest should connect its
    reach of 21.61. ―Number one among all key female                        brand with these prospecting travelers.
    demographics in primetime and total day… the leading
    source of entertainment and information for and about
    women…[with] original series, blockbuster prime time and
    weekend movies, and the WNBA …the Lifetime brand is              34
                                                                          Presentation by Kara from Comcast Cable, Source: CAB, 2004.
                                                                     35
    one that women trust and that is the most powerful                    Ibid.
                                                                                                                                                                                        23




Cable Television
 Budget
                Ratings/                  # of                                                                                                                                     Channel
Cable                                          # of Spots                        Adjusted    Total Gross   Cost Per 30-                                    CPP (Cost Per
               Coverage/    Frequency Flights                 GRP's    Comp                                             Cost Per Flight       Total Cost                   CPM        MRI
Channel                                        per Week                          Audience    Impressions    Second Ad                                             Point)
                  Reach               (4 Wks)                                                                                                                                        Index

A&E                 24.57          80        7      2.86    1965.60      16.7    4,959,065   396,725,200    $40,000.00     $457,142.86 $3,200,000.00          $1,628.00    $0.65      116
BET                  5.92          75        7      2.68     444.00      9.36    2,779,452   208,458,900    $22,500.00     $241,071.43 $1,687,500.00          $3,800.68    $0.61       65
Bravo                6.91          75        7      2.68     518.25     17.15    5,092,693   381,951,938    $17,500.00     $187,500.00 $1,312,500.00          $2,532.56    $0.26      119
CNN                 42.93         105        7      3.75    4507.65     17.42    5,172,869   543,151,245    $22,500.00     $337,500.00 $2,362,500.00            $524.11    $0.46      120
E!                  17.52          80        7      2.86    1401.60     15.94    4,733,383   378,670,640    $17,500.00     $200,000.00 $1,400,000.00            $998.86    $0.30      110
ESPN                 28.2          95        7      3.39    2679.00     17.79    5,282,741   501,860,348    $40,000.00     $542,857.14 $3,800,000.00          $1,418.44    $0.72      123
Golf Channel         3.67          95        7      3.39     348.65      18.9    5,612,355   533,173,725     $5,000.00      $67,857.14      $475,000.00       $1,362.40    $0.08      131
Lifetime            21.61          80        7      2.86    1728.80      13.2    3,919,740   313,579,200    $12,500.00     $142,857.14 $1,000,000.00            $578.44    $0.26       91
TBS                 27.46          85        7      3.04    2334.10     12.91    3,833,625   325,858,083    $35,000.00     $425,000.00 $2,975,000.00          $1,274.58    $0.78       89
TNT                 23.56          80        7      2.86    1884.80     13.45    3,993,978   319,518,200    $35,000.00     $400,000.00 $2,800,000.00          $1,485.57    $0.70       93
USA                 23.71          80        7      2.86    1896.80     13.23    3,928,649   314,291,880    $32,500.00     $371,428.57 $2,600,000.00          $1,370.73    $0.66       92
Weather
Channel             36.76          95        7      3.39    3492.20     15.69    4,659,146   442,618,823     $3,500.00      $47,500.00      $332,500.00          $95.21    $0.07      109


Totals             262.82        1025        7     36.61 23,201.45              53,967,693 4,659,858,180                                  $23,945,000.00
Average/
Channel             21.90       85.42        7      3.05    1,933.45   15.145    4,497,308   388,321,515    $23,625.00     $285,059.52 $1,995,416.67          $1,422.46    $0.46    104.83


 Percent of Media Budget: 17.16%
          Target Audience
               Population: 29,695,000
                                                                                                                                    24


Spot Television
Southwest should utilize the medium of spot television              during the peak months of March, May, June, July, October,
commercials to increase its reach over television network           November, and December. For instance, in May, most
channels. Spot television allows for reaching audiences on          consumers are planning and booking their flights for summer
both a mass scale and a more defined regional scale.                vacations. We hope that by establishing a strong advertising
Television’s dual audio and visual capabilities will allow for      presence in May, we may catch consumers towards the
greater creative impact and interest to help entice the consumer    beginning or middle of the buyer decision making process,
while entertaining them—as a fun medium, it is in keeping           when they are becoming aware of the need to book a flight or
with the campaign’s theme stressing Southwest’s benefit of fun      evaluating alternatives. By influencing these stages of the
customer service.                                                   process, Southwest can seize an advantage over its competitors.

Southwest should run spot television commercials in the             For each market, 400 GRP’s are bought to achieve a strong
following DMA’s. The 18 DMA’s are chosen from the top ten           80% reach and a memorable frequency of 5. The total budget
airport cities where Southwest’s presence is the strongest.         for spot TV is $, which comes to a little less than % of the total
Since the 80/20 marketing rule asserts that the majority of sales   media budget of $139.5 million.
come from the most loyal customers, by targeting the DMA’s
with the airports that Southwest services, Southwest can
increase its sales revenue while working to maintain its strong
brand image. The DMA’s also include the fastest growing
airport DMA’s, where Southwest has a great opportunity to
strengthen its foothold and develop an ongoing relationship
with its customers in those areas early on. The majority of the
DMA’s on the list (Los Angeles and Chicago, for instance) are
among the largest DMA’s by size and household ranking. By
using the mass medium of television to communicate with such
large audiences, we can reach more people in Southwest’s
target audience. Also, African-Americans and Hispanic
Americans have a large population in the majority of the
DMA’s we chose, so we are not only reaching our primary and
secondary audiences, but our tertiary audiences as well.

The spot television commercials will run for 7 flights. Each
flight coincides with the seasonality of Southwest’s sales,
                                                                                                                                                                                            25




Spot TV Budget
                                                                                                                                                   Total #
                                                                                        GRP's/ 4 wk    Reach for Freq. for                               of                       Total Schedule
DMA/Market                  Daypart               Dates (Approx)/Weeks          CPP                                            Cost Per Flight                Total Annual Cost
                                                                                              Flight   Flight (R) Flight (F)                     Flights in                                GRPs
                                                                                                                                                     DMA


Baltimore                Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $286.00            400           80          5      $114,400.00             7         $800,800.00            2,800
Chicago                  Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.   $1,285.00           400           80          5      $514,000.00             7       $3,598,000.00            2,800
Dallas/Fort Worth        Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $876.00            400           80          5      $350,400.00             7       $2,452,800.00            2,800
Detroit                  Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $630.00            400           80          5      $252,000.00             7       $1,764,000.00            2,800
Ft. Lauderdale*          Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.     $73.00            400           80          5       $29,200.00             7         $204,400.00            2,800
Houston                  Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $582.00            400           80          5      $232,800.00             7       $1,629,600.00            2,800
Las Vegas                Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $185.00            400           80          5       $74,000.00             7         $518,000.00            2,800
Los Angeles              Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.   $2,212.00           400           80          5      $884,800.00             7       $6,193,600.00            2,800
Manchester*              Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.     $54.00            400           80          5       $21,600.00             7         $151,200.00            2,800
Nashville                Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $139.00            400           80          5       $55,600.00             7         $389,200.00            2,800
Norfolk/Portsmouth       Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $128.00            400           80          5       $51,200.00             7         $358,400.00            2,800
Oakland/San
Francisco                Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $939.00            400           80          5      $375,600.00             7       $2,629,200.00            2,800
Orlando/Daytona          Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $282.00            400           80          5      $112,800.00             7         $789,600.00            2,800
Philadelphia             Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $919.00            400           80          5      $367,600.00             7       $2,573,200.00            2,800
Phoenix                  Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $444.00            400           80          5      $177,600.00             7       $1,243,200.00            2,800
Sacramento               Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $280.00            400           80          5      $112,000.00             7         $784,000.00            2,800
San Diego                Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $328.00            400           80          5      $131,200.00             7         $918,400.00            2,800
Washington, D.C.         Prime Time   Mar., May, Jun, Jul, Oct, Nov, Dec.    $800.00            400           80          5      $320,000.00             7       $2,240,000.00            2,800
                                                                            Avg. CPP                                                                          Total Annual Cost     Total GRP's
Percent of Media
Budget:                     20.96%                                           $497.24                                                                            $29,237,600.00           50,400

Prices for
Chatttanooga, TN*                           Pop. Ft. Lauderdale: 152,397        Pop. Chattanooga:       155,554
Prices for South Bend,                                                                                          Source: "2000 Census U.S. Municipalities,"
IN*                                           Pop. Manchester: 107, 006          Pop. South Bend:       107,789 <http://www.demographia.com/db-uscity98.htm>
                                                                                                                                                                26




Summaries by
 Market

                                                                                     GRP's by Total (Approx.)
                                     Reach by Market      Frequency by Market                                 Total Frequency    Total GRPS for Entire Annual
                                                                                  Market (Per 4    Reach by
                                      (Per 4 wk flight)       (Per 4 wk Flight)                                      by Market                      Schedule
                                                                                     wk Flight)       Market


Baltimore                                           80                       5            400              88              41                          3,600
Chicago                                             80                       5            400              88              41                          3,600
Dallas/Fort Worth                                   80                       5            400              88              41                          3,600
Detroit                                             80                       5            400              88              41                          3,600
Ft. Lauderdale(Prices for
Chattanooga)                                        80                       5            400              88              41                          3,600
Houston                                             80                       5            400              88              41                          3,600
Las Vegas                                           80                       5            400              88              41                          3,600
Los Angeles                                         80                       5            400              88              41                          3,600
Manchester (Prices for South Bend)                  80                       5            400              88              41                          3,600
Nashville                                           80                       5            400              88              41                          3,600
Norfolk/Portsmouth                                  80                       5            400              88              41                          3,600
Oakland/San Francisco                               80                       5            400              88              41                          3,600
Orlando/Daytona                                     80                       5            400              88              41                          3,600
Philadelphia                                        80                       5            400              88              41                          3,600
Phoenix                                             80                       5            400              88              41                          3,600
Sacramento                                          80                       5            400              88              41                          3,600
San Diego                                           80                       5            400              88              41                          3,600
Washington, D.C.                                    80                       5            400              88              41                          3,600
                                                                                                                               27



Radio
                                                                        All Talk- Has an index of 149 and a reach of 5.69%.
                                                                        Of this percentage 21.49% have flown for leisure
Radio advertisements will be run in the same cites as our
                                                                        purposes in the past twelve months.
television spots. This is to reinforce our message and to create
frequency. The more people hear our message about
Southwest the more likely they are to remember it. We have
                                                                        Sports- Has an index of 146 and a reach of 5.94%. Of
decided to advertise only locally in seventeen specific cities.
                                                                        this percentage 21.07% have flown for leisure purposes
All these cities have are either in a high DMA or are highly
                                                                        in the past twelve months.
frequented airports.
                                                                        All News- Has an index of 146 and a reach of 7.89%.
   Day parts                                                           Of this percentage 21.1% have flown for leisure
    Southwest will advertise in both the AM and PM drive time
                                                                        purposes in the past twelve months.
    in all cities listed. According to the Media Planning
    Encyclopedia; the majority of our target market is listening
                                                                        Alternative- Has an index of 141 and a reach of 13.4%.
    to the radio during 6am to 10am and 3pm to 7pm. These
                                                                        Of this percentage 20.42% have flown for leisure
    caps of times are considered ―drive-time‖ when adults are
                                                                        purposes in the past twelve months.
    driving to and from work. Both men and women, ages 25-
    54 are listening to the radio more at this time then any other
                                                                        Classic Hits- Has an index of 135 and a reach of
    time
                                                                        5.63%. Of this percentage 19.53% have flown for
                                                                        leisure purposes in the past twelve months.
   Formats
                                                                        Adult Contemporary- Has an index of 122 and a reach
    o PRIMARY MARKET                                                    of 22.21. Of this percentage 17.66% have flown for
      Classical- Has a high index of 203 and a reach of                 leisure purposes in the past twelve months. Although
      7.64%. Of this percentage 29.36% have flown for                   this station has the lowest index it has the highest reach
      purposes travel in the past twelve months.                        of all others.
       News/Talk- Has an index of 152 and a reach of                 o SECONDARY/TETIARY MARKET
       21.93%. Of this percentage 21.93% have flown for                The following stations were not chosen for their index,
       purposes travel in the past twelve months.                      but because they will reach are secondary and tertiary
                                                                       markets; which are who is African-American, Hispanic
                                                                       American, or Asian American.
                                                                                                                   28




Ethnic- Has an index of 100 and a reach of 0.56%. Of         Hispanic- Has an index of 73 and a reach of 3.57%. Of
this percentage 14.46% have flown for leisure in the         this percentage 3.57% have flown for leisure in the past
past twelve months. Although the reach is very low,          twelve months. This station would directly target
the people who listen to this station are in the target we   Hispanic Americans.
are trying to reach, and they have a high percentage of
composition.                                                 Gospel- Has an index of 51 and a reach of 1.01%. Of
                                                             this percentage 7.43% have flown for leisure in the past
Urban- Has an index of 75 and a reach of 9.06%. Of           twelve months. Although this index is very low, many
this percentage 10.78% have flown for leisure in the         African Americans listen to Gospel music and this
past twelve months.                                          station would be a good way to advertise specifically
                                                             towards this group.
                                                                                                                                                                   29




Spot Radio Plan and Budget
                                                                                                                           Total #
                                                                                       GRP's/ 4 wk                                                        Total Schedule
DMA/Market                  Daypart(s)             Dates (Approx)/Weeks         CPP                 Cost Per Flight   of Flights in   Total Annual Cost
                                                                                             Flight                                                                GRPs
                                                                                                                             DMA


Baltimore                 AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $71.50           400      $28,600.00               7         $200,200.00            2,800
Chicago                   AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $321.25           400     $128,500.00               7         $899,500.00            2,800
Dallas/Fort Worth         AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $876.00           400     $350,400.00               7       $2,452,800.00            2,800
Detroit                   AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $157.50           400      $63,000.00               7         $441,000.00            2,800
Houston                   AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $145.50           400      $58,200.00               7         $407,400.00            2,800
Las Vegas                 AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $46.25           400      $18,500.00               7         $129,500.00            2,800
Los Angeles               AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $553.00           400     $221,200.00               7       $1,548,400.00            2,800
Manchester                AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $13.50           400       $5,400.00               7          $37,800.00            2,800
Nashville                 AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $34.75           400      $13,900.00               7          $97,300.00            2,800
Norfolk/Portsmouth        AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $32.00           400      $12,800.00               7          $89,600.00            2,800
Oakland/San Franscico     AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $234.75           400      $93,900.00               7         $657,300.00            2,800
Orlando/Daytona           AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $70.50           400      $28,200.00               7         $197,400.00            2,800
Philadelphia              AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $229.75           400      $91,900.00               7         $643,300.00            2,800
Phoenix                   AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $111.00           400      $44,400.00               7         $310,800.00            2,800
Sacramento                AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $70.00           400      $28,000.00               7         $196,000.00            2,800
Fort Lauderdale           AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $18.25           400       $7,300.00               7          $51,100.00            2,800
St.Louis                  AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec    $57.25           400      $22,900.00               7         $160,300.00            2,800
Washington D.C.           AM/PM Drive    May, Mar, Jun, Jul, Oct, Nov, Dec   $200.00           400      $80,000.00               7         $560,000.00            2,800
Percent of Media Budget         6.53%                                                                                                        Total Cost      Total GRPs


                                                                                                                                         $9,079,700.00           50,400
                                                                                                                                                   30




Summaries by
  Market
                                               Frequency by        GRP's by
                        Reach by Market                                       Total (Approx.) Reach   Total Frequency by   Total GRPS for Entire
                                            Market (Per 4 wk    Market (Per 4
                        (Per 4 wk flight)                                                by Market                Market        Annual Schedule
                                                      Flight)     wk Flight)

Baltimore                             80                   5             400                    88                   41                   3,600
Chicago                               80                   5             400                    88                   41                   3,600
Cleveland                             80                   5             400                    88                   41                   3,600
Dallas/Fort Worth                     80                   5             400                    88                   41                   3,600
Detroit                               80                   5             400                    88                   41                   3,600
Houston                               80                   5             400                    88                   41                   3,600
Las Vegas                             80                   5             400                    88                   41                   3,600
Los Angeles                           80                   5             400                    88                   41                   3,600
Manchester                            80                   5             400                    88                   41                   3,600
Nashville                             80                   5             400                    88                   41                   3,600
New York                              80                   5             400                    88                   41                   3,600
Norfolk                               80                   5             400                    88                   41                   3,600
Oakland/San Francisco                 80                   5             400                    88                   41                   3,600
Orlando/Daytona                       80                   5             400                    88                   41                   3,600
Philadelphia                          80                   5             400                    88                   41                   3,600
Phoenix                               80                   5             400                    88                   41                   3,600
Sacramento                            80                   5             400                    88                   41                   3,600
San Diego                             80                   5             400                    88                   41                   3,600
Seattle/Tacoma                        80                   5             400                    88                   41                   3,600
Fort Lauderdale                       80                   5             400                    88                   41                   3,600
Tampa Bay/ St. Pete                   80                   5             400                    88                   41                   3,600
Washington D.C.                       80                   5             400                    88                   41                   3,600


                        Reach/ Coverage           MRI Index
PRIMARY TARGET
Classical                           7.64                 203
                                                                                 31




News/Talk                                          17.55                152
All Talk                                            5.69                149
Sports                                              5.94                146
All News                                            7.98                146
Alternative                                         13.4                141
Adult Contemporary                                 22.21                122
Total Primary Reach                                80.41


SECONDARY/TERTIARY
Ethnic                                              0.56                100
Urban                                               9.06                    75
Hispanic                                            3.57                    73
Gospel                                              1.01                    51
Total Secondary/Tertiary Reach                      14.2

Manchester nembers were not given so South Bend numbers were used instead
because both have similar populations.
Fort Lauderdale numbers were not given
so Chattanooga numbers were used
instead because both have similar
populations.
                                                                                                                                32



Outdoor

 Selection of DMA’S
We decided to use outdoor billboard advertising as a way to
                                                                   We want our audience to see these billboards right before and
reach our target audience throughout the day. We wanted to
                                                                   during the heaviest travel times of the year. The decision for
cover the whole United States by targeting specific cities
                                                                   how many billboard faces will be displayed in each city
throughout the country. Southwest flies to 59 cities in the U.S.
                                                                   depended on price and size of city. We decided to place the
and those cities we decided to place outdoor billboards. We
                                                                   billboards near the airports on large highways as well on
wanted to target the people living in the city of which
                                                                   interstate highways in each city. The following cities that we
Southwest flies so that each person will know of Southwest’s
                                                                   are going to advertise in are:
flights. Each billboard will stay up for 9 months of the year.
                                                                                                                                                                 33




Outdoor Budget

                                         18+ GRPs                                                                                           Gross Impressions
                                   Population (in rate            Total 4 Week Rate $ (4 week) (From Frequency Total Cost (Cost per month   (Circulation times
DMA (market and Type of Outdoor)       (000) book) Total Faces Circulation (000)          Rate book) (# months)           times # months)          Frequency)
Billboards
Albany                                  95.6      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Albuquerque                            426.6      50          3          6,182.4              $8,850           9               $79,650.00              55,642
Amarillo                               173.6      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Austin                                 656.5      15          3          4,242.0              $8,898           9               $80,082.00              38,178
Baltimore / Washington               5,393.7      10         15         15,372.0             $82,350           9              $741,150.00             138,348
Birmingham                             242.8      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Boise                                  185.8      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Buffalo                                292.6      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Burbank                                100.3      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Chicago                              6,106.9       5          6          8,316.0             $55,500           9              $499,500.00              74,844
Cleveland                            1,493.7      15          6          6,064.8             $40,140           9              $361,260.00              54,583
Columbus                             1,203.0       5          3          1,831.2              $9,900           9               $89,100.00              16,481
Corpus Christi                         277.5      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Dallas / Fort Worth                  3,811.2      10          6         11,205.6             $21,600           9              $194,400.00             100,850
Detroit                                951.2      15          3          4,048.8              $8,550           9               $76,950.00              36,439
El Paso                                472.8      50          3          6,955.2             $11,100           9               $99,900.00              62,597
Ft. Lauderdale                       1,289.9      15          4          6,238.4             $22,052           9              $198,468.00              56,146
Harlingen / South Padre Isl.            57.5      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Hartford / Springfield                 121.6      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Houston                              3,442.9      15          6         15,321.6             $21,600           9              $194,400.00             137,894
Indianapolis                         1,107.2      10          3          2,847.6             $15,750           9              $141,750.00              25,628
Jackson                                184.2      75          9          5,619.6             $22,950           9              $206,550.00              50,576
Jacksonville                           854.1      15          3          3,418.8              $9,495           9               $85,455.00              30,769
                                                                                                   34




Kansas City                     441.5    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Las Vegas                      1,112.3   15   3    4,048.8    $8,550   9    $76,950.00    36,439
Little Rock                     183.3    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Long Island / Islip            5,187.3   10   8   14,100.8   $94,600   9   $851,400.00   126,907
Los Angeles                   11,880.6    5   9   16,329.6   $68,625   9   $617,625.00   146,966
Louisville                      256.2    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Lubbock                         199.6    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Manchester                     4,259.2   10   6   11,239.2   $78,750   9   $708,750.00   101,153
Midland / Odessa                 94.9    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Nashville                       545.5    75   9    5,619.6   $22,950   9   $206,550.00    50,576
New Orleans                     484.6    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Norfolk                         234.4    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Oakland                        5,012.0    5   5    7,868.0   $42,500   9   $382,500.00    70,812
Oklahoma City                   820.3    15   3    4,242.0    $8,898   9    $80,082.00    38,178
Omaha                           390.0    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Ontario (Palm Springs Area)     158.0    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Orange County                   128.8    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Orlando                         981.0    10   3    2,772.0   $11,280   9   $101,520.00    24,948
Philadelphia                   4,670.6   10   8   13,619.2   $60,000   9   $540,000.00   122,573
Phoenix                        2,373.5   15   6    9,525.6   $21,000   9   $189,000.00    85,730
Portland                       1,602.0   10   3    4,158.0   $27,564   9   $248,076.00    37,422
Providence                      173.6    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Raleigh-Durham                  276.1    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Reno / Tahoe                    266.3    75   9    5,619.6   $22,950   9   $206,550.00    50,576
Sacramento                     1,228.4   15   3    4,443.6   $36,000   9   $324,000.00    39,992
Salt Lake City                  181.7    75   9    5,619.6   $22,950   9   $206,550.00    50,576
San Antonio                    1,351.0   15   3    6,090.0   $12,000   9   $108,000.00    54,810
San Diego                      1,882.9   10   3    4,628.4   $31,185   9   $280,665.00    41,656
                                                                                                                               35




San Jose                                     5,012.0    5   5   7,868.0   $42,500   9                  $382,500.00    70,812
Seattle / Tacoma                              686.3    10   3   1,747.2   $23,625   9                  $212,625.00    15,725
Spokane                                       195.6    75   9   5,619.6   $22,950   9                  $206,550.00    50,576
St. Louis                                     348.2    75   9   5,619.6   $22,950   9                  $206,550.00    50,576
Tampa Bay                                    1,802.1   10   4   5,129.6   $12,160   9                  $109,440.00    46,166
Tucson                                        660.0    15   3   2,671.2    $8,400   9                   $75,600.00    24,041
Tulsa                                         601.3    25   3   5,073.6    $8,250   9                   $74,250.00    45,662
West Palm Beach                               928.3    10   3   3,183.6   $14,370   9                  $129,330.00    28,652


                   population
http://www.demographia.com/db-uscity98.htm                                              Total Cost
                                                                                                     $13,911,228.00
                                                                                                                                       36



Non-Traditional Media                                                         throughout Major League Baseball these rates are
                                                                              determined by average attendance. Once we obtained this
 Outfield Wall Signs                                                         price we determined the prices of the other 13 cities by
     During the construction of the creative brief we decide it               setting up an attendance to price ratio based on Baltimore’s
     would be beneficial to position Southwest as a fun airline.              average attendance of 34,300, and their price of $280,00037.
     Some of our primary research survey participants said that
     their flights on Southwest Airlines were very ―pleasurable                   This is an example of how Philadelphia was
     and fun,‖ thus we came up with the tagline ―Getting there                      determined:
     should be fun too!‖ In order to stress this fun, enjoyable
     aspect of Southwest Airlines we felt that it would                             34,300                40,589
     appropriate to advertise in fun, enjoyable places such as                      ---------     x      ---------
     baseball games. We decided to place a 10’x47’ sign in the                      $280,000                  X
     outfield of every city with a baseball team that Southwest
     services. We felt that these signs were extremely cost             Floor Display
     efficient. By spending $3,661,210 we would reach                         One conclusion we made from our primary research was
     36,115,058 people, and this does not include people who                  that Southwest airplanes were uncomfortable. Southwest
     are watching the games on TV. We also felt that by                       has already started to make advances to change this
     advertising in fun, family oriented venues like baseball                 perspective. On January 16, 2001, Southwest Airlines
     games it would solidify Southwest’s position as a                        kicked off their 30th Anniversary Celebration by launching
     pleasurable leisure travel airline. The baseball season is               a fresh new look, that they have entitled ―Spirit.‖38 This
     played during the spring and summer which are the two                    new look consist of a new paint job for their planes and all
     seasons that yield the highest number of domestic flights36.             new leather seats. At the end of the year 2005 all Southwest
     This only strengthens our reason to advertise at baseball                planes will have these new leather interior. This is a smart
     games.                                                                   move for Southwest, and to help get the word out about its
                                                                              new transition we thought it would be a great idea to
     To determine prices for each city we contacted John                      display these seats at the airport. Passengers do a lot of
     Dempsey of the Baltimore Orioles. Mr. Dempsey gave us                    sitting around waiting for their flight, which makes it the
     the rates that the Orioles charge to have a sign on the                  perfect opportunity to show them Southwest’s new seats.
     outfield wall for the entire season. He also informed us that            Our agency plans to put a floor display of Southwest’s new

36                                                                     37
 Bureau of Transportation Statistics. July Airline Data: Seven-Month        Attendance figures were determined by www.espn.com.
                                                                       38
Domestic Traffic up 7.9 Percent From 2003. October 14, 2004.                Southwest.com
                                                            37



leather seats in twenty airports across the country that
Southwest flies into. Not only is this creating awareness
about Southwest and the positive advances they are
making, but it is also showing consumers that don’t fly
Southwest, that they are more than a discount airline.

These displays will run from May to August and October to
November, two of the busiest times of year.
                                                                                                   38




Outfield Wall (10x47)
City           Average attendence per game   Yearly attendence per game   Cost per Year    CPM
Baltimore                          34,300                    2,744,013        $280,000      9.80
Philadelphia                       40,589                    3,206,532        $331,338      9.68
Tampa                              16,139                    1,275,011        $131,746      9.68
Cleveland                          22,400                    1,814,401        $182,857      9.92
Detroit                            23,962                    1,917,004        $195,608      9.80
Chicago Cubs                       39,138                    3,170,184        $319,493      9.92
St. Louis                          37,634                    3,048,427        $307,216      9.92
Kansas City                        21,031                    1,661,478        $171,681      9.68
Houston                            38,121                    3,087,872        $311,191      9.92
Phoenix                            31,105                    2,519,566        $253,918      9.92
Seattle                            36,305                    2,940,731        $296,367      9.92
Los Angeles                        43,065                    3,488,283        $351,551      9.92
Oakland                            27,179                    2,201,516        $221,869      9.92
San Diego                          37,531                    3,040,040        $306,375      9.92
Total =                                                     36,115,058      $3,661,210    137.94
                                                                                                                                         39




Floor Displays (H10'xW15')
Airports

City                  Cost per Month   Total Airport Passengers per Month Frequency (Monthly)   Gross Impressions   Total Cost   CPM
Baltimore                    $7,500                            1,641,667                   7          11,491,669      $52,500     219
Chicago Midway               $7,500                            1,534,683                   7          10,742,781      $52,500     205
Cleveland                    $7,500                             879,616                    7           6,157,312      $52,500     117
Dallas/Fort Worth            $7,500                            4,372,118                   7          30,604,826      $52,500     583
Detroit                      $7,500                            2,722,051                   7          19,054,357      $52,500     363
Houston                      $7,500                            3,502,914                   7          24,520,398      $52,500     467
Las Vegas                    $7,500                            2,830,895                   7          19,816,265      $52,500     377
Los Angeles                  $7,500                            4,580,835                   7          32,065,845      $52,500     611
Nashville                    $7,500                             341,141                    7           2,387,987      $52,500      45
New York                     $7,500                             177,211                    7           1,240,477      $52,500      24
Norfolk/Portsmouth           $7,500                             291,666                    7           2,041,662      $52,500      39
Orlando/Daytona              $7,500                            2,228,424                   7          15,598,968      $52,500     297
Philadelphia                 $7,500                            2,055,922                   7          14,391,454      $52,500     274
Phoenix                      $7,500                            2,962,263                   7          20,735,841      $52,500     395
Providence                   $7,500                             462,111                    7           3,234,777      $52,500      62
San Diego                    $7,500                            1,250,355                   7           8,752,485      $52,500     167
San Francisco                $7,500                            2,621,368                   7          18,349,576      $52,500     350
Seattle/Tacoma               $7,500                            2,224,236                   7          15,569,652      $52,500     297
St.Louis                     $7,500                            2,135,509                   7          14,948,563      $52,500     285
Tampa Bay/ St. Pete          $7,500                            1,421,066                   7           9,947,462      $52,500     189
Total                                                                                                               $1,050,000   5,365
                                                                                                                                  40




Driving Billboards

                                              Cost Per Month   Cost 6 Months   City Population*   Frequency   Gross Impressions
Baltimore (Cleveland pop)                              $525          $3,150            651,154         120          78,138,480
Chicago                                                $646          $3,875          2,896,016         120         347,521,920
Cleveland                                              $525          $3,150            478,403         120          57,408,360
Dallas/Fort Worth                                      $361          $2,167          1,188,580         120         142,629,600
Detroit (Dallas pop)                                   $361          $2,167            951,270         120         114,152,400
Houston (phoenix pop)                                  $417          $2,500          1,953,631         120         234,435,720
Las Vegas (Cleveland pop)                              $525          $3,150            478,434         120          57,412,080
Los Angeles                                            $583          $3,500          3,694,820         120         443,378,400
Nashville (Cleveland pop)                              $525          $3,150            545,524         120          65,462,880
New York (Chicago pop)                               $2,583         $15,500          8,008,278         120         960,993,360
Norfolk/Portsmouth (Tampa pop)                         $379          $2,275            234,403         120          28,128,360
Orlando/Daytona (Tampa pop)                            $379          $2,275            185,951         120          22,314,120
Philadelphia (phoenix pop)                             $417          $2,500          1,517,550         120         182,106,000
Phoenix                                                $417          $2,500          1,321,045         120         158,525,400
Providence (Tampa pop)                                 $379          $2,275            173,618         120          20,834,160
San Diego                                              $583          $3,500          1,223,400         120         146,808,000
San Francisco (Cleveland pop)                          $525          $3,150            776,733         120          93,207,960
Seattle/Tacoma (Cleveland pop)                         $525          $3,150            563,374         120          67,604,880
St.Louis (Tampa pop)                                   $379          $2,275            348,189         120          41,782,680
Tampa Bay/ St. Pete                                    $379          $2,275            303,447         120          36,413,640
                                                                  Total Cost                                   Total Gros Imp.
                                                                    $68,484                                      3,299,258,400


*http://www.demographia.com/db-uscity98.htm
                                                                                                       41




Direct Mail

 Postcards to Frequent Fliers
  Direct mailings will reach our current customers
  effectively. We can take advantage of the Rapid
  Rewards frequent flier program by mailing to the
  enrolled members. We will send a simple post card to
  each member. The postcards will have a randomly
  generated number printed on it. Winning numbers will
  be awarded a free elaborate vacation. The postcards
  will instruct members to watch for the Southwest
  advertisement during the Super Bowl. On the card,
  there will also be an incentive to visit the website. This
  will create a buzz around the brand as well as
  increasing hits on the Southwest website which is
  responsible for over half of Southwest’s sales. More
  people will see the Super Bowl ads and remember the
  brand as a fun and exciting company.
                Direct Mail
                 Budget
                                              # Of          Date   Cost Per
                Population              Households      (Approx)     Piece    Frequency   Total Cost

                Rapid Rewards
                Members                   8,100,000    1/20/2005     $0.57           1 $4,617,000.00

				
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