A Blue Moose Media Production

jetblue airlinesMedia Plan

Fall 2010

Taylor BuieJordan HarrisCory Mccollumnicole nazarenus

Table of Contents

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Plan Summary.............................................

I. The Problem............................................

II. Situation Analysis A. Target Research........................... B. Market Information..................... C. Creative/Media Background....... D. SWOT Analysis...........................

III. The Solution A. Creative Strategy......................... B. Media Objectives.........................

IV. Appendices A. Appendix One............................. B. Appendix Two.............................

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Plan Summary

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In 1999, David Neeleman announced his plans for a new low-cost air carrier,

JetBlue. Since then, the company has reached its 10th anniversary with over 75

awards in the airline industry. With JetBlue still flourishing, the company contin-

ues to find innovative ways to please it’s customers. The products they offer during

the flight are exciting for customers along with superb service and entertainment.

They’ve been rated the top consumer friendly airline by SmartTravel Editors’ (jet-

blue.com). This quality is their biggest asset when marketing to consumers. Their

success in unbelievable, but there is one thing they are trying to improve.

JetBlue’s customers travel more often than not, for business. Realizing that

when business travel sinks during summer months, they saw the opportunity to

increase vacation travel. After adding several coastal and international destinations,

they are now trying to branch out and attract vacation travelers. Our challenge is to

create a media plan that will increase passenger seat miles by 5% between specific

locations to coastal vacation areas. We used the information from Media Flight

Plan to develop our media plan.

Plan Summary

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After using Media Flight Plan and other outside sources, we created a de-

fined target audience to which we will aim our campaign. The creative strategy

will be an extension of their You Above All campaign, but focus on how that ties

to their vacation destinations. The media objectives target national markets as well

as the top five spot markets. Making efforts to reach both markets will allow us

to make our reach and frequency goals and hopefully increase the passenger seat

miles for summer vacations. We set the advertising schedule to run from February

to April and be consistent with which media we bought during each month. The

mediums that fit our target audience best were chosen for our buys. We believe this

campaign will be ineffective in reaching our goals and solving the problem and

challenge that JetBlue is faced with.

The Problem

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Problem: JetBlue Airways already holds a great share of the business traveler market, and now

they are looking to become a presence in vacation travel by increasing passenger seat miles by

5% to exotic destinations like Aruba and Cancún. Unfortunately for the JetBlue brand, their

current businessman target is not a lucrative market for vacation travel. In order to be successful

in the vacation travel market, JetBlue must lure a new segment of the population into choosing a

low-cost carrier for their vacation travel needs. This new target will preferably be a segment that

has discretionary income for vacation travel, yet doesn’t mind flying an airline labeled a “low-

cost carrier” (J.D. Power & Associates).

In addition, JetBlue faces major competition from over 40 major airlines. Each of these

major airlines bring in more than $3 billion annually. Although JetBlue’s annual revenue of

more than $3 billion puts them in the major category, they are still considered to be one of the

smaller airlines in the category.

Challenge: The challenge assigned to Blue Moose Media is to increase passenger seat miles on

JetBlue flights to the Caribbean and other warm-weather vacation destinations by 5% (from 21

domestic airports). To do this, Blue Moose Media will look to highlight JetBlue’s strengths that

will appeal to our new target market with the minimal advertising budget that JetBlue allocated

to us.

Situation Analysis

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A. Target Research

Demographic: After using the MFP data, we’ve narrowed the demographic of our target audience to business women with a college education, ages 25-44. These women are likely to be employed full time and have a household income of $100,000. They are slightly more likely to be single than married, but do not have kids. Most of them live in the Mid Atlantic or New England area of the United States.

Psychographic: After defining the demographics, we found some interesting things about the women we are targeting. This group of women are seeking higher social status and seem to be worried about how the outside world views them. They like nice things, but only if it will be seen by others. For instance, they are likely to remodel their homes and buy name brand cloth-ing and cars, however they are likely to buy store brand products like over the counter medica-tions. Brand names only matter when they are buying things others will see. Convenience is also of importance to them. They do not have time for cutting coupons, but will use them if they are sent to a mobile device. These women are conscious of being healthy and regularly use organic products and fresh ingredients. Junk food and frozen meals are hardly ever a part of their diet. They read financial news publications and keep up with the news and latest technology as well. They believe that traveling encourages learning about different cultures, and are eager to go to new and foreign places (MFP Data).

Behaviorgraphic: While seeking high social status, the women typically buy brands that reflect their personal style and purchase with credit. They enjoy trying new products and services and their friends count on them for advice. Before purchasing electronics, they read reviews and research the product ahead of time. These women also invest their money in stocks and bonds. They like to cook and are health conscious (MFP Data).

Media Habits: Since the target is surrounded by other business people, they are likely to be dependent on their mobile devices to keep organized. They are fascinated by new technolo-gies and are likely to have the newest gadgets. These women are likely to use the Internet for booking their travel arrangements because they prefer no to use a travel agent. As said before, convenience is key to their busy lifestyles so using coupons and apps on their phones is helpful. The three mediums they use most are Internet, magazines, and newspapers (MFP Data, Twitter, Facebook).

Situation Analysis

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Target Profile

Courtney is a 29 year old woman who lives Greenwich Vil-lage in Manhattan. She works at IBM in the city and enjoys going out for drinks after hours. She goes to neighborhood restaurants such as Lupa where she tries new but healthy entrees (Yelp). Courtney is single and likes to go out with the girls, but still dates on occasion. Former social chair for her sorority, Kappa Alpha Theta, she loves to plan week-end getaways with her friends (Kappa Alpha Theta). As a graduate of the Sales and Distribution program at Syra-cuse University, she didn’t travel far to find her new home in the city (Syracuse University). She keeps up with celebrity gossip by reading People magazine and Perez Hilton’s blog. Her iPhone keeps her connected with friends and family and allows her to post up-dates via Facebook, Twitter, and FourSquare. She also blogs about her travels and her friends always ask for her insight before booking a trip. Court-ney likes to splurge on shoes and is saving for a new pair of Christian Louboutin’s (Christian Louboutin). She appreciates creative outdoor ads as she takes the subway to IBM’s offices (IBM). Courtney knows she’s trendy and is the first to try new gadgets and styles.

Situation Analysis

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B. Market Information

CDI: [31,545,287(Category total)/237,295,462(Total)] x 100= 13.29%/100%= .1329 CDI

BDI: [6,329,677(JetBlue total)/237,295,462(Total)] x 100= 2.6%/100%= .026 BDI

Airline Time Period RPMsAirTran February-March 2009 4,290,849JetBlue February-March 2009 6,329,677SkyWest February-March 2009 2,650,346Southwest February-March 2009 18,274,415Category Total 31,545,287(RITA Trans Stats)

Estimated Value Report

Top Valued Markets: * New York City (JFK), NY * Chicago, IL * New York City, NY * Seattle, WA * Phoenix, AZ

Least Valued Markets: * Burlington, VT * Portland, ME * Syracuse, NY

According to the data given to us, the charts below explain all the markets we targeted and then ranks them based on the estimated value percentage. Population, total revenue passenger miles, and average flight cost were the factors we chose to include in this comparison (U.S. Census Bureau; RITA Trans Stats). Based on this data, we can choose which markets are more valuable and decide to spend more of our budget in these areas. We chose to weight the indices because we believed it was an important factor in deciding which markets to consider when budgeting for the different markets.

Situation Analysis

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Step 1: Raw Values Table

*Indicates Raw Data

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Step 2: Percentages Table

Situation Analysis

Situation Analysis

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Step 3: Weighted Raw Values Table

Situation Analysis

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Step 4: Weighted Percentages Table

Situation Analysis

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C. Creative and Media BackgroundPast Advertising Creative Campaigns In May of 2010, JetBlue fired their advertising agency, J Walter Thompson of New York, whom they had been using since late 2005. They were looking for a complete creative overhaul, and for that, they hired another firm, Mullen in Boston. JetBlue saw major problems with the way that airlines were treating their passengers. The entire company was founded on the very premise of bringing humanity back to air travel, and their new agency has created an answer to those problems in three simple words: “You above all.” Mullen created a simple, optimistic campaign that capitalized on customers’ growing aggravation with higher airfares, fees, and lack of amenities from other airlines. Advertising powerhouse and direct competitor Southwest Airlines had already initiated a campaign all about their free checked bags, and JetBlue knew they had to fight back (Southwest Airlines). With unexpected, minimal headlines for print and out-of-home advertising, Mullen was able to break through a lot of the clutter created by other airlines with big budgets. With careful placement, JetBlue made a huge impact in the market while keeping costs down and reinforcing the brand image that they fought so hard for when JetBlue was founded more than 10 years ago. The ads in this campaign reinforce the JetBlue experience with headlines like “Our stan-dards beat their extras,” and “Overpack. Underpay. First bag flies for free.” The most com-pelling of the ads in this series has to be the one with the headline that reads, “Not a tagline. A promise. You above all.” This creative campaign is spot on. In another engaging and entertaining portion of the campaign, Mullen created a hidden camera film series where ordinary people were denied basic services that they had come to ex-pect in everyday life. For example, one features a New York City bar full of screaming Jets fans watching a game. Then, the bartender switches the channel and says, “If you have any entertain-ment suggestions, please feel free to shoot us an e-mail, or leave some suggestions with our man-ager today.” The last frame of the commercial features the slogan, “If you wouldn’t take it on the ground, don’t take it in the air.” This slogan implies that JetBlue will provide all customers with the comforts they have come to expect at no extra charge. JetBlue currently also lists 39 sponsorships on its website, with a wide range of sponsored entities. They support many athletic events, such as the Boston Red Sox, the University of Texas Athletic Department, the 3M Marathon, and many more. They also support many parades and festivals, like the Long Beach Lesbian & Gay Pride Festival and Magic Hat Mardi Gras Parade. JetBlue says they are open to any sponsorships, as long as they do not conflict with the “core values of fun, passion, caring, integrity, and most importantly, safety.” JetBlue’s current advertising and sponsorship strategy is amazing, and for our media buys, we propose that they continue to create similar ads, but aim them more at vacation travel-ers. (See past creative picture examples in Appendix).

Situation Analysis

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Media Mix

Share of Voice

Situation Analysis

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Analyzing JetBlue’s Media Mix and Share of Voice among its competitors is a key com-ponent of our media plan. Surveying the competitive landscape allows us to execute smart, ef-fective buys. Southwest has an overall Share of Voice of 32.54%, and while no other airline even comes close to competing with them in that area, there are definitely operative areas of media that are not being dominated by one particular company. These specific types of media are good places to have high impact, which JetBlue needs since its budget is almost ten times smaller than Southwest. Overall, JetBlue only commands 3.36% of the market, but with proper placement, they can get high impact from their small budget. JetBlue is currently spending 23.65% of its total advertising budget on internet, and controls 4.74% of the market. The only airlines that have considerable advantages over JetBlue are not direct competition in the low-cost airline category. Thus it is a good idea to continue to allocate a large percentage of the advertising budget to internet. JetBlue’s second highest advertising investment sector is outdoor. They are using 21.37% of their budget for outdoor advertising, and they control 11.08% of the market. They hold the third highest Share of Voice in this category, with numbers one and two not far ahead. The third highest portion of JetBlue’s budget goes to consumer magazines, with a Share of Voice of only 2.78%. However, most of the other airlines that utilize consumer magazines have low Shares of Voice as well. American Airlines is leaps and bounds ahead of the competi-tion in this category with 29.24% of the medium, but other than that, very few even exceed 6%. Thus, JetBlue can still make an impact with such a small percentage of the market. Southwest essentially dominates all television categories, and JetBlue has chosen to al-locate only a small percentage of their budget to this sector (Southwest Airlines). This is a smart move and should be reproduced for as long as Southwest has a strong hold on those categories. Our media plan does include 14% of the budget going to television in an attempt to strengthen our campaign with the power of video. Even having just a few commercials here and there is a great way to reinforce the work going on in internet, outdoor, magazines, etc. Historically, the rest of JetBlue’s budget has gone to local radio (12.99%), local (11.51%) and national (6.13%) newspapers, and national spot radio (6.55% of the budget, but gaining 11.2% of the market). The remaining small portion of the budget was split between a few small investments in other media.

Situation Analysis

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Strengths-Rank in Top 3 for lowest amount of

overbooking and lost baggage.-Rated #2 North American Airline by Conde Nast

Traveler, ahead of competitors Southwest, Sky West, and AirTran.

-Posesses strong online presence, currently headlined by the viral You Above All campaign on Youtube.

-Posted strong 3rd quarter earnings of $59 million, up from $15 million a year ago.

Weaknesses-Budget miniscule in comparison to Southwest.

-People unaware of JetBlue perceive the brand as a cheap airline.

-Website fails to differentiate itself from those of competitors.

-Currently operating in only 12 countries.

Opportunities-Aforementioned bland website design of the airline industry shows there’s room for JetBlue to stand out

and let their “people first” mentality to shine.-No airline currently branded as the go-to, low cost

vacation airline.-Market JetBlue Business Card from American Express

to our young, female professional target market for vacation-centric rewards.

-Place a greater emphasis on brand name snacks and drinks, which the target market prefers over

generic items.

threats-Knocked from Conde Nast Traveler’s top spot by

Virgin America for first time in six years.-Southwest, Skywest, and Airtran rank better in

customer complaints, which is problematic given JetBlue’s supposed dedication to “Bringing humanity

back to air travel.” -$205 million profit posted by Southwest in 3rd quarter

-Ex flight attendant Steven Slater still making head-lines, most recently at Jon Stewart’s Rally to

Restore Sanity.

The Solution

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A. Creative Strategy JetBlue’s creative strategy should look to build on their recent successes with the You Above All online campaign, while continuing to promote their core belief of bringing humanity back to air travel. The tone of the creative strategy should mirror the You Above All online campaign by being edgy and comedic in uncovering truths and problems with many of JetBlue’s competitors. JetBlue should continue to exploit the downfalls of their competitors in a way that is more come-dic and less serious. JetBlue’s creative strategy should include both positive and negative images to compare and contrast the experiences of JetBlue and non-JetBlue vacation travelers. Some images should highlight sub-par customer service experienced while flying on other airlines. After highlighting the downfalls of other airlines, images should then show the high quality experience that custom-ers experience by flying with JetBlue. The message of JetBlue’s creative strategy needs to stress that JetBlue exudes trust, qual-ity, and reliabiliy at an affordable price point. MRI psychographic data for our target shows that this group appreciates the finer things in life, but will purchase lower priced items when the qual-ity is there. This message needs to convey that a vacation’s intent is to bring happiness to the customer, and that the method of traveling (i.e. the airline chosen) can greatly help, or hinder, the pursuit of a joyous vacation.

B. Media Objectives and StrategiesTarget Audience Objectives The target audience objective includes reaching an audience similar to our target audience profile (see above) and accomplishing the reach and frequency goals we set, which are: monthly reach, 60 and monthly frequency, 2. Through the campaign we aim to persuade business women to fly JetBlue to their next coastal vacation destination. The media plan will encourage a boost in sales for flights during summer months. The campaign period is early spring, February-April, which will prompt the audience to book their vacations before flights are full. This also allows adequate planning time for working women to ask for vacation time at work, and time to book hotels and excursions at their selected vacation destinations.

The Solution

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Reach, Frequency, and GRP Objectives

The Ostrow Model of Effective Frequency

The Solution

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Summing Results: -0.4 -0.2 +0.7 + 3.0 Benchmark=3.1

The Solution

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Using Ostrow’s Model of Effective Frequency, we have considered many aspects of Jet-Blue’s brand situation. We have considered Marketing, Copy, and Media factors, which are the three strategic aspects that are necessary for estimating frequency. After taking all factors into consideration, we determined that an appropriate benchmark frequency value for JetBlue is 3.1. 3.0 is the base benchmark, and our move to a higher number indicates that, based on the brand, we need to increase the frequency.

Overall Campaign Objectives

Monthly Reach: 60

Monthly Frequency: 2

Monthly GRPs: 120

We decided to use scheduling as our strategy for planning our media buys. We set these goals based on information we gathered from Ostrow’s effective frequency chart and past media plans. Our final goal for frequency was set lower than the model suggested because our budget can not support such a high goal. Had we been given a larger budget, we would have increased the frequency and reach goals and possibly made the campaign run for a longer period of time. The actual values from our media buy can be shown in our media flight plan flow chart below.

Geographic Objectives For our top five markets, we have decided to make spot buys with higher reach and fre-quency goals than the national buys. The reach goal will be 70%, frequency 2, and GRPs 140. New York City (JFK), Chicago, New York City, Seattle, Phoenix were the top five markets in which we have chosen for spot buys. As you read before, these were the top five scoring mar-kets from our Estimated Value chart after we weighted the factors. The budget for spot buys will be spent in network prime time television and cable television. Using The Office and 30 Rock as potential vehicles because they both have a high indices and viewers according to the MFP data. The cable spot buys would focus on getting spots on channels like A&E, Lifetime, and The Travel Channel. Specific vehicle data was not available to us, but these particular cable channels had a large population of JetBlue viewers and high indices as well (MFP Data).

The Solution

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Media StrategiesBudget and costs-- Our budget we were given was $6 million. We spent $1,962,635 each month for a total of $5,887,905 during the entire campaign. Between national and spot spending, we spent more on the national buys, 86.7% (Magazines, Keywords, Sponsorships). The percent of the budget spent on spot markets was 13.3% (Spot TV Prime and Spot TV Cable). Staying under budget was important to us and we finished with an excess of $112.10. Below is an outline of where we spent money in specific mediums. Each month, the spending was the same across all mediums.

Spending by Medium per Month

The solution

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Media Mix and Vehicle BreakdownFor our magazine buys, we would concentrate efforts on getting placement in publications such as Women. Other publications to consider would be business trade magazines and weekly pop culture magazines (MFP Data). Our Internet buys for keywords and searches would concentrated in major search sites like Google and different social networking sites like Facebook and Linke-dIn. Internet Sponsorships would use vehicles like iPhone apps or focus on products that already work with JetBlue. An example would be VitaminWater which is offered on board JetBlue flights or American Express whom offers JetBlue credit cards in which you can earn rewards (JetBlue Press Releases). Our TV spots are all bought in our top five spot markets. Vehicles for these spots include shows such as The Office and 30 Rock, and networks such as A&E, Lifetime, and The Travel Channel (MFP Data).

The solution

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Media Timing and ScheduleOur campaign would begin in February and continue into March and April. We chose these months because we are trying to increase travel during summer vacation months. Most people book these trips in advance since they have to ask for vacation time from their jobs. Since sum-mer vacation travelers typically begin in May and stretch until August, we figure the early spring months would be the best time to reach our target audience.The schedule we created is consistent through all three months. Specific breakdown of reach, fre-quency, and GRPs for each month is shown below in the Year at a Glance chart. The Flow Chart also defines clearly the money spent in each category for each month.

The Solution

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Flowchart

Appendix one

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JetBlue Past Creatives

Appendix Two

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Southwest Past Creatives

works(Cited)

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“Press Releases.” Home. N.p., n.d. Web. 6 Dec. 2010. <http://www.iata.org/pressroom/ pr/Pages/ index.aspx>.

“AirTran Airways - Overview.” AirTran Airways - Overview. N.p., n.d. Web. 16 Nov. 2010. <http://pressroom.airtran.com/phoenix.zhtml?c=201565&p=irol-overview>.

Apple, te of the. “JetBlue Customers Stand By Their Carrier.” BusinessWeek - Business News, Stock Market & Financial Advice. N.p., n.d. Web. 16 Nov. 2010. <http://www.business week.com/magazine/content/07_13/c4027014.htm>.

“Christian Louboutin official web site. Luxury french shoe and bag designer..” Christian Loubou tin official web site. Luxury french shoe and bag designer.. N.p., n.d. Web. 6 Dec. 2010. <http://www.christianlouboutin.com/#/intro>.

“Data Elements.” RITA Tran Stats. N.p., n.d. Web. 16 Nov. 2010. <www.transtats.bts.gov/Data_ Elements.aspx?Data=1>.

“IBM - United States.” IBM - United States. N.p., n.d. Web. 6 Dec. 2010. <http://www.ibm. com/us/en/sandbox/ver1/>.

“JetBlue Airways - 2010 Press Releases.” JetBlue Airways - Shareholder Information. N.p., n.d. Web. 16 Nov. 2010. <http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol- news&nyo=0>.

“JetBlue Airways - 2010 Press Releases.” JetBlue Airways - Shareholder Information. N.p., n.d. Web. 6 Dec. 2010. <http://investor.jetblue.com/phoenix.zhtml?c=131045&p=irol- news&nyo=0>.

“KAŒ∏ - Chi Chapter - Kappa Alpha Theta - Syracuse.” KAŒ∏ - Chi Chapter - Kappa Alpha Theta - Syracuse. N.p., n.d. Web. 6 Dec. 2010. <http://www.syracusetheta.com/>.

“New York Times - JetBlue Pokes Fun at the Competition” 1 Dec. 2010. <http://www.nytimes. com/2010/10/14/business/media/14adco.html>.

Works (Cited)

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Phillips, Matt. “ JetBlue to Customers: If You Get Fired, We‚Äôll Refund Your Fare - The Middle Seat Terminal - WSJ.” WSJ Blogs - WSJ. N.p., n.d. Web. 16 Nov. 2010. <http://blogs.wsj.com/middleseat/2009/02/17/jetblue-to-customers-if-you-get-fired-well- refund-your-fare/>.

SEGAL, DAVID. “JetBlue Deserves Credit for Customer Service - The Haggler - NYTimes. com.” The New York Times - Breaking News, World News & Multimedia. N.p., n.d. Web. 16 Nov. 2010. <http://www.nytimes.com/2010/11/14/your-money/14haggler. html>.

“SkyWest Airlines - Media.” SkyWest Airlines - an airline industry leader. N.p., n.d. Web. 16 Nov. 2010. <http://skywest.com/media/skywest-media.php>.

“Southwest Airlines - Press Releases.” Southwest Airlines | Book Flights, Airline Tickets, Airfare. N.p., n.d. Web. 16 Nov. 2010. <http://www.southwest.com/about_swa/press/prin dex.html?int=GFOOTER-ABOUT-PRESS>.

“Syracuse University.” Syracuse University. N.p., n.d. Web. 6 Dec. 2010. <http://www.syr.edu/>.

“The 2010 Statistical Abstract: Population.” Census Bureau Home Page. N.p., n.d. Web. 18 Nov. 2010. <http://www.census.gov/compendia/statab/cats/population.html>.

“Twitter.” Twitter. N.p., n.d. Web. 16 Nov. 2010. <http://twitter.com/#!/JetBlue>.