Group #5 Angela Gatian Artem Koban Brianne Henney Craig Evans Dheerai Corepall

Executive Summary

Target Audience

We will focus our advertising on both a primary and secondary market. Our primary audience consists of

both men and women ranging in age from 45-64. They travel frequently and are employed with a

household income of $100,000 or more. This group is likely to be married with 1-2 children. They

live in the top 30 markets in the United States. Our secondary market also consists of both men and

women. They are younger with ages ranging from 35-49. They are likely to have young families with

households of 4+ people. The secondary market are current jetBlue travelers who reside in the New

England area.

Objectives

For our primary audience, we plan on achieving a reach of 80 and a frequency of 4 during the months of

March, April, May, October, and November. During the remaining months, we want a reach of 75 and

a frequency of 3. For our secondary market, we plan on achieving a reach of 75 and a frequency of 3

during the months of March, April, May, October, and November.

Strategy

We will reach our primary audience through the mediums of magazines, targeted sites on the internet, spot

television during prime time, spot radio during the morning and evening drives, newspapers, and

outdoor advertising. The secondary audience will be reached through targeted sites on the internet,

spot radio during the morning and evening drives, magazines, direct mail, and outdoor advertising.

Pg 2

Table of Contents

Executive Summary…………………………………………………………………...……………2

Situation Analysis

Industry………………………………………………………………………….……...….4-5

Company………………………………………………………………………………….6-14

Competition…………………………………………………………………………..…15-18

Target Audience………………………………………………………………………………. 19-20

Strategic Vision……………………………………………………………………………………21

Objectives………………………………………………………………………………………....22

Strategy…………………………………………………………………………………...……23-32

Budget Resolution……………………………………………………………………………..33-38

Conclusion……………………………………………………………………………………...…39

References……………………………………………………………………………………..40-42

Pg 3

Airline Industry Analysis

Sales

The airline industry is a multi-billion dollar industry that

allows customers to travel just about anywhere in the

world. In 2009, the airline industry had $374 Billion in

sales for passenger travel, and $48 Billion in sales for

cargo transportation. This totals to be $482 Billion in

sales11. The industry sales vary from year to year, but

have been increasing over the years.

Market Share

Within the airline industry, the leaders are Delta, Southwest,

American, and United Airlines. These top four carriers

make up over 54 percent of the airline market. Delta

has a market share of 16.2 percent, and Southwest has a

market share of fourteen percent. American Airlines

has a market share of 13.7 percent, and United Airlines

has a market share of 10.2 percent. Jet Blue only has a

market share of 4.4 percent8.

Delta

SouthWest

American

United

JetBlue

Other0

100

200

300

400

500

600

2008 2009 2010

Cargo

Passenger

Pg 4

Trends

There are many trends occurring throughout the entire airline industry, but perhaps the

most important is the use of alternative fuels2. The airline industry is looking at

alternative fuels that are sustainable and will leave a smaller carbon footprint. There are

some requirements that the alternative fuels must meet, but the industry is working on a

couple of ideas. One of these ideas would be bio-fuels (algae or switch grass). Some

airlines have already started to experiment with alternative fuels.

Aside from using alternative fuels, another trend in the airline industry, is the rise in

safety concern19. Safety is the airline industry's primary concern, and every year, they try

to reduce the number of destroyed planes, and the accident rate. The number of destroyed

jets, or hull loss rate, continually decreases over the years. Also, there is a decrease in the

number accidents over the years.

Another trend the airline industry is seeing, is the increase in sales11. Sales keep

increasing over the years, and with the possibility of new, cheaper, alternative fuels, and

safer jets, the sales can continue to increase each year.

Airline Industry Pg 5

jetBlue Analysis

History of jetBlue17

David Neeleman founded jetBlue in February 1999, under the name “New Air.” The origin of the company dates back to

1993, when Neeleman sold his first airline, Morris Air, to Southwest Airlines where he was previously an employee.

jetBlue started by following Southwest's approach of offering low-cost travel, but wanted to be different by offering high-

quality amenities, such as in-flight entertainment, TVs on every seat and Satellite radio. In Neeleman's words, jetBlue

looked “to bring humanity back to air travel.” This is still a major tagline for the company. jetBlue Airways launched on

February 11, 2000 with the inauguration of service between New York City's John F. Kennedy Airport and Fort

Lauderdale, FL. By December of 2000, jetBlue reported flying over a million passengers and having a revenue for the year

of a $100 million.

jetBlue was one of only a few U.S. airlines that made a profit during the sharp decline in airline travel following the

September 11, 2001 terrorist attacks. This allowed the company to increase its highly rated employment and inquire new

airplanes with bullet proof glass and dead bolted cockpits. In 2002, jetBlue Airways acquired LiveTV, which is the

provider of the airline's in-flight satellite TV entertainment system. In 2004, jetBlue launched its first international service

between JFK and Santiago in the Dominican Republic. In February, 2006, jetBlue announced its first quarterly loss ever,

but returned to profitability by January, 2007. That same year jetBlue introduces the jetBlue Customer Bill of Rights: the

first in the airline industry. Dave Barger was also named CEO in 2007. 2008 was a big year for jetBlue because they

announced even more leg room in planes, which the airlines prides itself on and “Jetting to Green” which introduced

carbon offsetting and an alternative fuel partnership which has continued to save the airlines money.

Currently, jetBlue serves over 60 destinations in 22 states including Puerto Rico, Aruba, Mexico and most major US cities.

In February of 2010 the company celebrated their 10th anniversary. Neeleman’s words still are true because jetBlue proved

that innovative, high-quality airline service tied with low fares will attract a strong and loyal market.

Pg 6

Important Awards17

•2000 "It" Airline Vanity Fair It List

•2002 Best Domestic Airline North American Travel Journalists Association, Five-Star Award

•2004 North America's Leading Budget Airline 11th Annual World Travel Awards

•2008 Most Eco-Friendly Zagat Airline Survey

•2010 Best Cabin Ambiance Passenger Choice Awards™, Airline Passenger Experience Association (APEX)

2010 #1 Airline Brand

• On June 8, 2010, jetBlue ranked 'Highest in Customer Satisfaction Among Low Cost Carriers in North

America' by J.D. Power and Associates, a customer satisfaction recognition received for the sixth year in a row

•jetBlue is currently ranked as 4-star low-cost carrier by Skytrax

jetBlue Pg 7

jetBlue

Sales

The sales of jetBlue are steadily increasing. In

2008, jetBlue made $3,392 million in sales.

Then in 2009, jetBlue made $3,292 million in

sales. In 2010, jetBlue made $3,779 million in

sales12.

Price

The price of a flight, using jetBlue, varies

depending on many factors. These include:

where you fly, when you fly, and what class

you fly in. The following is an example of

jetBlue and its competitors, flying from New

York City to San Diego, on the dates June 1,

2011 and June 8, 2011.

0

1000

2000

3000

4000

2008 2009 2010

Sales, in Millions

Other

Passenger

Carrier Price

jetBlue13 $386

Southwest

Airlines20

$465

American

Airlines3

$349

United Airlines22 $371

Pg 8

jetBlue

Products15

jetBlue Airways has many products and services that go above and beyond air travel. The company counts on low

fares to make its “ledgers jet-black”. The carrier offers one-class service with leather seats, satellite TV from

DIRECTV, satellite radio from XM, and movies. They fly to about 60 cities in the US, Mexico, Colombia,

and the Caribbean including Puerto Rico, the Bahamas, and the Dominican Republic. Most of its flights

arrive or depart from one of five key markets: Boston; Orlando and Fort Lauderdale, Florida; Long Beach,

California; and New York. jetBlue has a fleet of about 150 aircrafts consisting mainly of Airbus A320s but

also includes Embraer 190s. It owns one subsidiary, in-flight entertainment system developer: LiveTV.

“JetPaws” is jetBlue's exclusive program designed to provide pets and their owners the tips and tools they

need for a smooth trip from start to finish. “We're simply committed to each and every one of our customers,

including the four-legged ones.” Unlike most other competitors their first checked bag is free. They offer a

variety of boxed meals for a small price, free name brand snacks, and a “Shut-Eye” service for long flights.

An element of jetBlue’s 10th anniversary push included a sale of $10 “last minute” flights, sold on May 11

and 12 only, for travel those same days. The company sent out an email blast to its frequent flyers early on

Monday, along with postings on Facebook and Twitter, and the tickets were said to be sold out. jetBlue is

even working on offering free Wi-Fi for flights beginning in early 2012. Finally, their services include

assistance and deals for groups, cargo for businesses, corporate travel, and tickets through travel agents.

Pg 9

jetBlue

Advertising Expenditure10

The Total advertising expenditures for

jetBlue totaled $19,192,500. The

majority of this was spent on Internet

and Outdoor advertising. As of right

now, jetBlue is not spending any

money on network, SLN or

syndicated television, Sunday or

Hispanic magazines, and Network

radio.

Advertising

Magazines

Newspaper

Radio

Internet

Outdoor

Other

Pg 10

jetBlue

One of the most popular jetBlue ad campaigns highlights the

frustrations of flying. It was a commercial in 2010. In this

clever ad campaign, jetBlue explores some of the most

annoying aspects of flying when applied to customers on

the ground. For example, this ad where the cab driver tells

his passengers that they have to pay an additional $25 for

the bag in the trunk. Clearly they aren’t too happy with the

scenario. jetBlue has other ads which show a lady buying

a can of soda from a sidewalk vendor; only he pours it into

a little cup full of ice and tells her she can’t have the can.

Another takes place in an elevator with the attendant

pushing the buttons for all floors and telling the

passengers it’s not a “direct” elevator and this is the most

cost-effective way to run it, in case others want to get on

at other floors. Yet another is in a cab again, this time with

the driver moving his seat back against the passenger’s

legs, simulating the tiny amount of leg room we get on

airplanes. Their message is clear: “they understand the

frustrations of flying and differentiate themselves from

other airlines by addressing these”. The tagline to the

campaign is: If you wouldn’t take it on the ground,

don’t take it in the air.

(Alcos, 2010)3

http://travel-industry.uptake.com/blog/2010/10/14/jetBlue-you-above-all/

Previous Campaigns1

Pg 11

Previous Campaigns Cont.14

The next campaign features the introduction of a newly spoken jetBlue brand promise “You Above All.” This

is jetBlue very simply restating their commitment to putting people first and their ongoing mission to bring

humanity back to air travel. This took place in October 2011. “You Above All” is designed to show the

differences between jetBlue and other airlines. It also observes its crewmembers' efforts to provide a superior

travel experience. “In so many ways, this exciting new marketing campaign speaks to the core of who we are

as a brand,” said Marty St. George, senior vice president of marketing and commercial strategy at jetBlue.

“You Above All is authentic. It's transparent. It's understandable. Quite simply, it's very jetBlue. As we move

into our second decade of service, “You Above All” underscores our commitment to always put people first,

to bring humanity back to air travel. That’s a message we can all relate to, whether we take to the skies once a

year or once a week.” This campaign is the first that jetBlue has developed in partnership with its new

advertising and media agency, Mullen. The campaign includes a series of call-outs explaining jetBlue’s

superior service offering, including the following lines:

• “Over pack. Underpay. First bag flies for free.”

• “Mix business with legroom. The most legroom in coach.”

• “Room. With a view. The most legroom in coach and free DIRECTV.”

• “Someone has to stand-up for tall people. The most legroom in coach.”

(jetBlue Launches New

Advertising and Marketing

Campaign: You Above All,

2010) http://travel-industry.uptake.com/blog/2010

/10/14/jetBlue-you-above-all/

jetBlue Pg 12

jetBlue

Share of Voice10

Southwest airlines has the highest share of voice in the airline industry at 32.54%. No other airline

even comes close to reaching this number. However, there are several areas of media that are not

completely controlled by any one particular company. This would allow jetBlue to have a greater

impact with its budget. jetBlue has a share of voice of 3.36% of the market. 23.65% of its total

advertising expenditures is going towards the internet. In this category, jetBlue controls 4.74% of

the market. Their second highest advertising spending is in the outdoor category. This takes

21.37% of their total advertising expenditures and results in a share of voice of 11.08%. They hold

the third highest share of voice in this category. The next highest portion of jetBlue’s advertising

budget goes to consumer magazines. Here the share of voice is 2.78%. This may seem low,

however, most of the other companies also have low share of voices in this category. American

Airlines is dominating consumer magazines with 29.24%. The majority of the rest of jetBlue’s

spending comes from local radio (12.99%), local (11.51%) and national (6.13%) newspapers, and

national spot radio (6.55%). The shares of voice in these categories are 12.1%, 3.5%, 3.7%, and

11.2% respectively.

Pg 13

SWOT Weakness18

- Only fly to large cities

- jetBlue has not yet tried to lift money by selling snacks

during flights

- Jet Blue is still new in the industry as compared to other

Airlines

- It has been using a single fleet

- Negative Press: for example, a jetBlue pilot threatened to

harm himself just hours prior to takeoff in 2010

Strengths16

- Low distribution and operating costs create low fares

- High aircraft utilization to help keep fares low

- Average age of plane is 4.3 years; they are more fuel

efficient, better technology

- jetBlue was named the number one U.S. domestic airline

by Coned Nast Traveler magazine’s “Readers’ Choice

Awards” for the sixth year in a row.

- jetBlue continually hiring talented and experienced people

and also retaining them

- Former employees of Southwest Airlines are currently

working with Jet Blue

- Extra Space, leg room

- Advanced Technology and Entertainment-They also offer

exciting entertainment. The entertainment includes XM

Radio which includes over 100 channels at every seat and it

is free. Also there is a TV at every seat with at least 36

Direct TV channels. jetBlue also offers movies and free

wireless internet.

- Unique Services in the Airline Industry, such as name

brand names for free

jetBlue

Opportunities

- Increase market share, already in top 10 in industry

- More international flights

- Increase the number of flights

- Add up more services for the passengers

-Joint ventures with other Airlines for new market development

Threats

- Increasing fuel price

- Entire industry is sensitive to economic conditions

- Terrorism is the major concern after 9/11 Incident

- Employee Unions

- Strong competition especially from AMR Corporation,

Southwest Airlines and United.

Pg 14

Competition Analysis

Sales

American Airlines had a total sales of $22,710

million in the year 20104. Southwest

Airlines had a total sales of $12,104 million

in 20106. United Airlines had a total sales of

$23,229 million5.

jetBlue's competitors have the majority of the

market share in the airline industry.

Southwest Airlines has a market share of 14

percent, American Airlines has a market

share of 13.7 percent, and United Airlines

has a market share of 10.2 percent. The only

company to have a higher market share is

Delta Airlines, with 16.2 percent.

Advertising Expenditures10

Southwest Airlines, and American Airlines spent

more money in advertising than jetBlue,

with $185,673,200 and $54,858,400,

respectively. United Airlines spent

$4,218,200 in advertising. The majority of

Southwest Airlines budget was spent in

network and spot television, with

$110,232,100 and $31,731,500 respectively.

The majority of American Airline’s

advertising budget was spent on magazines

and cable television, with $27,577,700 and

$7,691,300 respectively. Finally, most of

United Airlines budget was spent on internet

and local newspaper, with $2,243,400 and

1,251,900 respectively.

Market Share12

Pg 15

Competition

Products 20

Southwest is currently offering their customers a chance to

enter a sweepstakes to win a free trip of their choice.

Also, the company is offering a new InAirtainment, which

allows you to download 20 free songs on iTunes also

offers movies and TV shows and different apps.

Southwest also has a rapid rewards program which allows

customers to redeem certain rewards with their miles.

Strengths:

Excellent customer service

One Airline with lowest rates

Free Baggage

Pets onboard

Early bird check-in

Weaknesses:

Limited sizes of airplanes

Don’t have many accommodations

Previous Campaigns20

Currently Southwest is offering “bags fly free”. Other

airlines charge when you check in bags but southwest

has no handling fee.

A lot of their previous campaigns are fun innovative

advertisements that express a unique personality.

Opportunities:

Improve service, size of airplanes and

accommodations.

Threats:

United Airlines and Continental Airlines are a

primary threat to Southwest air, due to their

size and accommodations.

Southwest Airlines23

Pg 16

Competition

Products22

President Club lounges for travelers flying first class

Offer a business MasterCard for companies to gain points

Economy Plus allows customers more room and easier travel

Strengths:

Fuel burns reductions strategy

Many alliance partners

Weaknesses:

Unstable costs and expenditures

Previous Campaign22

“Work Hard Fly Right”

Greener Planes mean Bluer Skies

“Turns out our first class, is first class”

All previous campaigns are holding their standards higher

than industry standards

Opportunities:

Fuel efficiency programs.

Buy other airlines.

Threats:

Loosing customers.

Dropping revenues.

Loosing investors interest in a company

United Airlines21

Pg 17

American Airlines7

Products3 Economy

•Overhead screens showing a variety of current movie releases,

as well as news, great documentaries and comedy.

•Complimentary headsets.

•Choice of main course and beverage service.

•Sliding tray table that gives option to set a laptop, beverage or

book in the most convenient position.

•Slimline profile for even more legroom and controls for

lumbar support, footrest and six way leather headrest so you

can mould the seat the way you want.

Strengths:

Worlds fourth largest in passenger miles transported.

Carries more passengers between the US and Latin A.

Strong in transcontinental markets

Weaknesses:

Loosing value over quantity.

Financial position is unstable and cost structure is week.

Large divisions create week communication between each

other

Previous Campaigns3 •Fly to different countries and get a “Global Scope”

•“Picture Yourself Winning 250,000 AAdvantage Miles in

American Airlines Spot, Snap and Send Sweepstakes”. Allows

New York residents to take a picture of an American airlines

ad and send it in to the company for a chance to win the above

stated prize.

•Advertisements on taxi tops, buses, phone kiosks, bus shelters,

urban panels and newsstands are the ones that should be

photographed and sent in.

Opportunities:

Favorable wage negotiation.

Travel increasing in general

Low interest rates

Government backed loans

Threats:

Increased air travel inconvenience.

Business travel declining.

Availability of pricing information

Competition Pg 18

Target Audience

After using the Media Flight Plan data, we’ve narrowed the demographic of our target audience to men and women, ages 45-64. We

choose to target high personal or vacation travelers, for example three or more trips per year. These people are likely to be

employed and have a household income of $100,000 or more. They are slightly more likely to be married and have 1-2

children. Our target audience lives in the cities that jetBlue flies to, in the top 30 markets in the United States.

Our target market has a size of about 24,400,000 people9.

We chose to target to both men and women, because it does not matter who flies on jetBlue's planes.

We chose the age range of 45-54 and 55-64 because these two age ranges both had high indexes, of 112 and 120 respectively. Also,

our advertisements will reach both age groups, so we might as well target them.

We chose to target employed individuals, because we thought that people who are employed are the most likely to travel leisurely.

Also, employed people had an above average index of 114.

Our target market has an annual income of $100,000+ because these people are the most likely to have disposable income which

will allow them to travel more often by plane. Additionally, people with $100,000+ in an annual income have an index of 200.

Our target audience includes married people with 1-2 kids. Married people are likely to travel with their families when they go on

vacation. So this will create more sales for jetBlue.

We will target the cities that jetBlue flies in, in the top 30 markets in the United States. We chose to do this because we feel like we

will reach the largest number of people this way.

About 70 percent of our budget will be spend on the primary target audience.

Primary Audience

Pg 19

Target Audience

Our secondary audience was narrowed down to men and women, ages 35-49. We choose to target current jetBlue

travelers. These people are likely to be younger families with a house of 4+. Most of them live in the New England

area.

Our target audience consists of 7,400,000 people9

For our secondary target audience, we decided to target current jetBlue users. We decided this because we want our current

customers to keep coming back. This will help to sustain the brand, and targeting new customers will help to grow

the brand.

We chose to target to both men and women, because both had an above average index.

We are targeting people between the ages of 35-44 because they make up most of jetBlue's current fliers. They have an

index of 107. This age group is more likely to be business people, who are flying for business, without any children.

Again, we want the secondary target audience to have over $100,000 in an annual income because then they will have the

most disposable income. People with over $100,000 in an annual income have an index of 196.

Finally, we decided to target the New England area because that is where most of the current jetBlue customers live. They

have an index of approximately 300.

About 30 percent of our budget will be spent on the secondary target audience.

Secondary Audience

Pg 20

Strategic Vision

We want jetBlue to become The United States Airline of Choice.

We believe that jetBlue is becoming a highly renowned airline where people

can enjoy celebrated customer service through high quality services. The

mission of our multi-channel marketing campaign will be to increase the

awareness of jetBlue, among its top markets. In doing this, we will use

various types of media to target different people throughout their daily

routines, especially heavy vacation travelers and current jetBlue users. Our

main goal is to increase the awareness of jetBlue, and keeping the current

customers coming back.

Pg 21

Objectives

Target Market

For March, April, May, October, and November, we want a

reach of 80, and a frequency of 4.

We chose these months because these are the months

leading up to the busy travel seasons, and people

are more likely to buy their plane tickets then.

For the months of January, February, June, July, August,

September, and December, we want a reach of 75, and a

frequency of 3.

We chose these months because we wanted a continuous

advertising schedule but we felt that a high level of

advertising was not necessary.

We feel that these established objectives are important for

the brand because they will help to increase the number of

jetBlue users. The media choices that we use will hit

many people, in several different ways, multiple times.

This will hopefully put jetBlue into their minds the next

time they have to purchase an airline ticket.

Secondary Market

For March, April, May, October, and November, we want

to achieve a reach of 75, and a frequency of 3.

We chose these months, because they are the months

leading up to the busy travel seasons. People

are likely to buy their tickets in these months,

so we want to remind them about jetBlue

during this time.

These objectives will keep jetBlue fresh in the minds of the

current customers.

We chose all of these objectives because we believe that

they are higher than jetBlue’s previous campaign, and

we are aiming for improvement

Pg 22

Media Strategy

Our strategy will be to achieve the desired objectives by carefully segmenting

the primary and secondary target audience.

We will target the primary audience through magazines, targeted sites on the

internet, spot television during prime time, spot radio during the morning

and evening drives, newspapers, and outdoor advertising.

We will target the secondary audience through targeted sites on the internet,

spot radio during the morning and evening drives, magazines, direct mail,

and outdoor advertising.

Pg 23

Strategy for Target Market

Magazines

We chose magazines, because our target audience are people who travel frequently and have a higher income, and are thus

more likely to look at magazines. Magazines have a long life span and a high pass-along readership, so the ads will hit

multiple people, several times. jetBlue only has a share of voice in magazines, of about 3 percent, while American

Airlines has a share of voice of about 30 percent10. This will allow jetBlue to increase their share of voice in magazines.

Internet

We chose to advertise on targeted sites on the internet, because it is fastest growing media channel. The internet will allow

jetBlue to reach a massive amount of people, anytime they want. Also, they will be able to specifically pick what types

of people they want to target. Finally, through tracking, we can see what sites heavy travelers are visiting the most, and

advertise on those sites to reach our target market. Even though the internet was a rather expensive choice, the exposure

rate is rather high. Also, Continental Airlines has the highest share of voice for the internet. If jetBlue were to advertise

more on the internet, they could increase their share of voice, and potentially reach a larger market.

Spot Television – Prime Time

We decided against Network Television because jetBlue primarily flies from major cities within the United States, so

advertising in Network television would not be a smart use of their money. Spot television will allow us to hit the major

markets where our target audience lives. Spot television, during prime time, will give us a large reach because most

people watch television during prime time. Also, our target audience consists of high travelers and they are more likely

to watch television during prime time because they work during the day and travel frequently. Prime time is also a wise

choice for jetBlue, because they will reach people who might not travel as frequently as their target audience, but could

still be potential customers and travel in the future. Southwest Airlines, and American Airlines take up about 70 percent

of the share of voice and jetBlue only has a 0.17 percent10.

Pg 24

Strategy for Target Market

Spot Radio – Morning and Evening Drive

We chose to do spot radio for the same reasons we chose spot television. We only want to hit specific markets, since jetBlue only travels

from major cities. Also, radio has the ability to target select audiences. Our audience, people ages 35 – 49 are likely to listen to the

same type of radio stations, so jetBlue can advertise on those types of stations. Also, radio advertising is relatively inexpensive and

has a high frequency. We chose the morning and evening drives, while people are commuting to work because these are the

highest dayparts and they will hit the most amount of people. Aside of jetBlue and Southwest Airlines, not many companies

advertise often on the Radio, therefore, jetBlue would not have a lot of competition.

Newspapers

We chose to advertise in Newspapers because newspapers have a large reach. The newspaper expense is high, for all of the markets, but

they also reach a lot of people. Newspapers are known for being credible and comprehensive, so that might make the readers

perceive jetBlue in the same way. We are only advertising in the newspapers in March, April, May, October and November,

because Newspapers have a short lifespan and we want to advertise in the months leading up to the busy seasons. In doing this, it

will keep jetBlue fresh in the minds of travelers, and decrease the amount of wasted advertisements.

Outdoor

We chose to advertise outdoor because it is the lowest cost, for each exposure, for any medium. Since our target market is high travelers,

they are more likely to drive past billboards, and other outdoor advertisements. Outdoor advertising is never turned off, therefore it

allows people to see it anytime, and creates a high frequency during its lifespan. Currently, many of the airline companies advertise

outdoor, along with jetBlue. This will make it hard to increase jetBlue's share of voice, but if they continue to advertise outdoor,

they will still be able to compete with the rest of the airlines.

We did not use direct mail, network radio, network cable, network TV, keyword/searches and sponsorships on the internet, and national

newspapers. We did not use these media because they are rather expensive, do not hit our target audience very well, and generate more

waste.

Pg 25

Strategy for Target Market

For the primary market, we chose the

top 30 markets in the United States,

and then picked the ones that jetBlue

flies to. We chose the following 21

markets because it will allow us to

reach a large number of people.

Markets:

Baltimore, MD Houston, TX Pittsburgh, PA Washington, DC

Boston, MA Las Angeles, CA Portland, OR Tampa, FL

Charlotte, NC Miami, FL Raleigh, NC Phoenix, AR

Chicago, IL New York, NY Sacramento, CA Hartford, CT

Denver, CO Orlando, FL San Francisco, CA San Diego, CA

Seattle, WA

9%

34%

10% 9% 9%

10% 19%

Primary Audience

Magizines

Internet

Spot Tv- Prime

Spot Radio- Morning

drive

Spot Radio- Evening

drive

Newspapers

Outdoor

Pg 26

Target Audience Ad Choices

Magazines

We choose magazines to run the entire year nationally with

half-page black and white inserts. We choose 65 units to

be displayed in January, February, June, July, August,

September, and December. For the remaining months,

March, April, May, October, and November ,we choose

50. This is for a total of 705 costing $4,951,200. We did

more magazine advertising during our busy travel seasons

and we felt that by doing half-page black and white ads

that our ads would be visible within the magazines and by

not doing it in color which costs more we were able to

stay within our budget. Many other airlines advertise

within magazines so we felt that the advertising we

choose will help us compete with our competitors.

Internet – Targeted Sites

We choose targeted sites on the internet, which are banner ads,

to run all twelve months but to advertise, more in the

build up to our busy season. This was opposite of

magazines, with 100 units in March, April, May, October,

and November. For the months of the busy season,

January, February, June, July, August, September, and

December we did 36. We feel that these numbers were

sufficient because all of our main low price airlines

competitors advertise heavily on the internet. We decided

that banner ads were the best because they are visually

stimulating and reach a high number of people. The

internet is the fastest growing advertising expenditure so

we wanted to further establish our brand as an up-to-date

brand that can cater to those on the move. Also, we

advertised more in the months leading up to the busy

season because most people buy online tickets ahead of

time so we wanted to keep our message out there. Spot Television – Prime Time We choose prime time spot television to run 15 second ads for a total of 26 during January, February, June, July, August,

September, and December. We also choose 50 to run for the remaining months. Our strategy centered around the fact that

most people travel for leisure during the months previously stated, with most of our advertising done in March, April, May,

October, and November because most people plan vacations ahead of time. We think spot television is the best for our brand

because it promotes the continuity of our brand by reaching more people which we think can be instituted within our

advertisement. Our totals were 432 for $5,370,600. Even though that Southwest dominates television we feel that we can

attempt to strengthen our campaign with the power of video.

Pg 27

Target Audience Ad Choices

Spot Radio-Morning/Evening Drive

We choose to advertise 30 second spot advertisements during

morning and afternoon drive times. We felt that 30

seconds for the advertisements were the right way to go

because they are not that expensive and can be heard

often because people usually are in the car the same

time everyday. For these separate dayparts, we choose

the same numbers with January, February, June, July,

August, September, and December being 50 for both

and March, April, May, October, and November with

100. The totals were 850 for $4,469,300 and 850

$4,504,200 respectively. Historically, jetBlue has

always advertised some of the budget into national spot

radio. We felt that it was important to have a fresh

innovative marketing strategy that still celebrated the

company’s past.

Newspapers

We choose to do half-page black and white ads in the

newspaper. We did this type of advertising for only

March, April, May, October, and November because

this was a very expensive type of ad and one of our

goals was to stay $100,000 within budget. Even though

newspapers are becoming a “thing of the past” we felt

that our heavy travelers would be exposed to them

while on the go. The GRPS are 233 with a cost of

$5,172,400.

Outdoor

We choose outdoor advertising also. This is 25 shows a

month. jetBlue’s second highest advertising investment

sector was always outdoor so we wanted to keep it the

same because we thought that it was a very effective

advertising method. We did 680 every month for a total

of 8161 GRPs and a cost of $10,231,300.

Pg 28

Strategy for Secondary Market

Magazines

Magazines have a higher lifespan than newspapers, so they have the opportunity to reach more people. Also, we can target

specific types of people, through the different categories of magazines.

Internet

The internet allows jetBlue to reach a broad audience. People between the ages of 35-44 are likely to use the internet daily.

It will be relatively easy to target specific sites that they travel to each day.

Spot Radio

Spot radio allows us to target specific markets that we want to reach. Also, we will be able to reach our secondary target

audience while they are driving to and from work. This would be a good time to reach them because they will possibly

be listening to the radio, and will be more focused on it since they could be driving alone.

Outdoor

An eye catching billboard will stay in the minds of anyone who passes it. If it stays in the minds of our target audience, they

might be more likely to think of jetBlue the next time they purchase a plane ticket.

Direct Mail

Direct mail will just serve as a reminder to the current jetBlue customers, incase there were anyone who was missed by the

previous advertisements.

We did not decide to use any type of television, network radio, newspapers, or keyword searches and sponsorships on the internet.

We decided that these media choices would not target our audience very well.

Pg 29

Strategy for Secondary Market

We chose these markets because

the New England area consists

of the people who most

frequently travel with jetBlue.

All of the overlap will allow

us to ensure that we reach the

majority of our target market.

5%

68% 4%

4%

5% 14%

Secondary

Magazines

Internet

Spot Radio-

Morning

Spot Radio-

Evening

Outdoor

Direct Mail

Markets:

Boston, MA New York, NY Washington, DC

Baltimore, MD Portland, ME

Pg 30

Secondary Audience Ad Choices

Magazines-General Interest: We choose to run black and white half-page ads. This is for the New

England area. To use the budget as economically as possible we only advertised in March, April,

May, October, and November. Our GRPS totaled 150 and our cost was $1,062,900.

Internet-Targeted Sites: We ran the banner type of targeted sites for the same months as magazines

and got total GRPS of 655 and cost of $15,490,800. The internet is widely used media outlet,

therefore the majority of our budget and strategy for our secondary audience is through the internet.

Spot Radio: Morning Drive/Afternoon Drive: We had 30 second ads which we thought would be

effective. Our totals were GRPs of 385 and a total cost of $822,400; GRPs of 385 and a total cost of

$815,000 respectively. Radio can be effective because our current users know our brand so they

will listen more when they hear an advertisement for jetBlue.

Outdoor: We wanted to advertise outdoor to our secondary audience because most people normally

drive similar patterns and the more times our ads are seen the more recognizable our brand is. The

totals were GRPS of 3420 and a total cost of $1,198,600.

Direct Mail: We choose direct mail because it can be very effective and generally gets a high response

especially when a customer has already used the product. We choose ten letters a month in the

months leading up to the busy season totaling GRPs of 50 and Costing $3,112,100.

Pg 31

Scheduling

Primary Target Audience

We will reach our primary target market through the use of a pulsing schedule. Constant

advertising will be occurring throughout the entire year, with the exception of

newspapers, with periods of heavier advertising during the months of March, April,

May, October, and November.

Secondary Target Audience

Advertising to our secondary market will occur through a flighting schedule followed by

periods of hiatus. March, April, May, October, and November are the only months in

which we will be advertising.

Pg 32

Primary Audience Media Schedule

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Magazines 456.5 456.5 351.2 351.2 351.2 456.5 456.5 456.5 456.5 351.2 351.2 456.5

Internet 851.4 851.4 2365.0 2365.0 2365.0 851.4 851.4 851.4 851.4 2365.0 2365.0 851.4

Spot TV-

Prime 323.2 323.2 621.6 621.6 621.6 323.2 323.2 323.2 323.2 621.6 621.6 323.2

Spot Radio-

Morning 262.9 262.9 525.8 525.8 525.8 262.9 262.9 262.9 262.9 525.8 525.8 262.9

Spot Radio

- Evening 265.0 265.0 529.9 529.9 529.9 265.0 265.0 265.0 265.0 529.9 529.9 265.0

Newspapers 1034.5 1034.5 1034.5 1034.5 1034.5

Outdoor 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6 852.6

Total 3011.6 3011.6 6280.6 6280.6 6280.6 3011.6 3011.6 3011.6 3011.6 6280.6 6280.6 3011.6

All Numbers in $(000)

Pg 33

Primary Audience Budget

Month National only: Spot only: Total:

Jan $1,307.90 $1,703.70 $3,011.60

Feb $1,307.90 $1,703.70 $3,011.60

Mar $2,716.20 $3,564.40 $6,280.50

Apr $2,716.20 $3,564.40 $6,280.50

May $2,716.20 $3,564.40 $6,280.50

Jun $1,307.90 $1,703.70 $3,011.60

Jul $1,307.90 $1,703.70 $3,011.60

Aug $1,307.90 $1,703.70 $3,011.60

Sep $1,307.90 $1,703.70 $3,011.60

Oct $2,716.20 $3,564.40 $6,280.50

Nov $2,716.20 $3,564.40 $6,280.50

Dec $1,307.90 $3,564.40 $3,011.50

$52,483.60

Pg 34

Secondary Audience Media Schedule

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Magazines 212.6 212.6 212.6 212.6 212.6

Internet 3098.2 3098.2 3098.2 3098.2 3098.2

Spot Radio-

Morning 164.5 164.5 164.5 164.5 164.5

Spot Radio -

Evening 163.0 163.0 163.0 163.0 163.0

Direct Mail 239.7 239.7 239.7 239.7 239.7

Outdoor 622.4 622.4 622.4 622.4 622.4

Total 4500.4 4500.4 4500.4 4500.4 4500.4

Numbers in $(000)

Pg 35

Secondary Market Budget

Month National only: Spot only: Total:

Mar $3,310.70 $1,189.60 $4,500.30

Apr $3,310.70 $1,189.60 $4,500.30

May $3,310.70 $1,189.60 $4,500.30

Oct $3,310.70 $1,189.60 $4,500.30

Nov $3,310.70 $1,189.60 $4,500.30

$22,501.50

Pg 36

Budget

The numbers expressed in the flow charts are the amount budgeted for each

medium, each month. The internet, spot television during prime time, and

newspapers will help to increase the reach of our media mix. These media

will reach the majority of our audience. The outdoor advertising, magazines,

and spot radio advertising will increase the frequency of our media mix.

They will target our audience, during their daily routine, multiple times.

The budget spent for the primary market was $52,483,600 and the budget spent

for the secondary market was $22,501,500. The total amount spent was

$74,985,100 out of the allowable $75,000,000.

Pg 37

CPP and CPM

CPP – Primary Target Audience

Our cost for our primary market was $52,483,000. Our media schedule gave us

the total GRP of 3594. This means that our cost per rating point is $14,602.95

CPM – Primary Target Audience

Our cost was again, $52,483,000. The delivered audience was 24,400,000

people. This means that the cost per thousand is $2,150.94

CPP – Secondary Target Audience

The cost were $22,501,700. The total GRPs were 1625. This gives us a cost per

rating point of $13,847.20

CPM – Secondary Target Audience

The cost was $22,501,700. The delivered audience was 7,400,000 people. This

results in a cost per thousand of $3,040.77.

Pg 38

Conclusion

Our proposed multi-channel strategy will increase the number of jetBlue

customers, and keep the current jetBlue customers coming back. Our

goals will be reached, with an excess in reach and frequency. Our reach

for the primary target, during the busy months, is 83.9. Our frequency for

the primary target, during the busy months, is 4.8 times. Both of these

exceeded our goals of 80 and 4, respectively. Our reach for the primary

target, during the non-busy months, is 76.4. Our frequency for the non-

busy months is 3 times. Both of these exceed our goals of 75 and 3

respectively. Our reach for our secondary market is 77.1, and our

frequency for our secondary market is 4.2 times. Both of these exceed our

goals of 75 and 3 respectively.

We hope you enjoyed our strategy, and we look forward to working with

you in the future.

Pg 39

References

Pg 40

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Pg 42