Durian, Inc. SyndicateLa Ode Arief Akbar - Ryan Koesuma - Wahyu Kumoro 

INTERNAL BRAND COMMUNICATION

Internal Brand Communication

Lesson Learned / Key Success Factors

• Consistent message (brand) communication (internally)• Develop both employee's knowledge and motivation• Continuous feedback from customers and employees• Focus on customers by creating fun experience• Employees satisfaction & low turnover

About Southwest Airlines

 

Company Profile

• Founded in 1967, by Rollin King and Herb Kelleher• High-frequency, low-fare, point-to-point airline• First flight at June 18, 1971• Connecting Dallas, Houston and San Antonio

General Information:• Company Name: Southwest Airlines Co. • Company is traded on the NY Stock Exchange trade market (NYSE) with symbol LUV• Corporate Headquarters are located at the physical address: 2702 Love Field Drive

Dallas, Texas 75235.

Company History1973: First profitable year

1975: Listed in NYSE as LUV

1979: Served New Orleans

1988: Southwest wins the first Triple Crown:             Best On Time Record             Best Baggage Handling             Fewest Customer Complaints

1994: Acquired Morris Air1995: Ticket-less Travel available system wide

1996: Launched website www.southwest.com

Southwest Target Customer

• Short-distance business travelers and commuters• Students• Travelers tired of the bigger airlines• No-hassle, no-nonsense air travelers

Southwest Value Proposition

Southwest: Key People

Herb KelleherCo-Founder, CEO (1967-2007),

Chairman Emeritus

Southwest: Key People

Gary C. KellyCurrent Chairman, President & CEO

Colleen BarrettPresident Emerita & Corporate Secretary

Internal Branding

 

Employee Branding Process

Organization Mission

The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit 

To our employees:We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer

Southwest Cares: Vision for the FutureOur vision for our People is clear. We want to protect the job security, prosperity, and well-being of all of our Employees. Our Focus is to bring the best People, with Fun-LUVing attitudes, into the Southwest Airlines Family, at a competitive salary, ensuring all have an equal opportunity - then give them the positive work environment, training, and encouragement to succeed.

Southwest Airlines' number one priority is to ensure the personal Safety of each Southwest Customer and Employee. Beyond this, we follow "The Golden Rule," which means we treat each other the way we want to be treated, which is why doing the right thing by our Employees and Customers is so inherent to who we are. We believe in Living the Southwest Way, which is to have a Warrior Spirit, a Servant's Heart and a Fun-LUVing Attitude. Within each of these categories are specific behaviors to help us be a Safe, profitable, and Fun place to work.

Organization Values

Living the Southwest Way

Source: www.southwest.com

Desired Brand Image

"To Provide safe, affordable, reliable, timely, courteous, and efficient air transportation" 

- Customer Service Commitment Agreement, (Southwest Airlines, 2005) -

"Positively outrageous service" provided in the "Southwest Spirit" 

- Desired brand image delivered by the employees -

Sources Modes / Messages / Brand CommunicationFormal Informal

Internal

"People Department"Recruitment Ad

Training & DevelopmentMonthly Company Newsletter:

Luv LinesPerformance Evaluations

"Culture Committees"Interactions with Leaders

"Open Door" Policy

ExternalAdvertising and PR to external

also targeted internal

Customer Feedback/LettersWoM

Employee's Psyche / Brand Commitment

• Southwest makes a great effort to ensure its message are based on the company's mission and values

• Covenant relationship provide guidelines for employees regarding both what is expected from them and what they can expect in return.

Employee Brand Image

1. Develop employees' knowledge and understanding of the desired brand image by sending frequent and consistent messages.

2. Southwest motivates its employee to deliver the desired brand image by ensuring their psychological contract are upheld.

Psychological contract: practice of consistently basing all organization messages on the company's mission, values, and desired brand image.

Consistent messages to effective manage the employee brand image is a key to Southwest's employee branding success

Outcome

• Effective Positioning• Increased Employee Satisfaction and reduced staff turnover• Higher levels of customer satisfaction and loyalty• Favorable overall reputation• Operational Effieciency

Feedback

• Internal Statistics & Metrics

• External Reports

• Luncheons with executives

• "Open Door" Policy

Internal Brand Management

Source: Burmann et. al (2009)

Brand Focused HR

Brand Focused Leadership:Respect to Employees / A Servant's Heart

Herb Kelleher with Mechanics

Brand Focused Leadership:Respect to Employees / A Servant's Heart

Colleen Barrettwith Mechanics

Colleen Barrettwith Female Pilots

Brand Citizenship Behavior:Willingness to help / Brand Enthusiasm / A Servant's Heart

BAGS FLY FREE

Brand Citizenship Behavior:Willingness to help / Warrior Spirit

11 September 2001 -- other airlines, due to decreased passenger traffic, laid-off personnel. Southwest people were willing to take pay cuts to avoid lay-offs. As a result, no Southwest people were laid-off due to the decreased passenger traffic

5Es of Internal Branding

5Es of Internal Branding

Formal External SourcesAdvertising and public relations efforts are utilized as part of the employee branding process to reinforce the organization's mission and values

Informal Internal SourcesMessage flow between employees ensure the exchange of brand values being exercised

Formal Internal SourcesTraining and development design to reinforce the behaviors & values of the company

Informal External SourcesClear communication is essential to building and maintaining employees' knowledge & understanding of the desired brand image, and motivating them to project that image to others

Informal Internal SourcesRegular Corporate Events for Employee's Celebration

Educate

Source: www.southwest.com

Exchange

Engage

Excite

Exemplify

Brand Culture

 

Brand Culture

Brand Culture: Competencies

• Recruitment Ado finding employees to color outside the lines, or operate in

a manner that is a bit off-center

• Recruitment Processo ensure their attitudes and personal values are consistent

with the organization's values and desired brand image, and team players

Brand Culture: CompetenciesA Servant's Heart / Fun-LUVing Attitude

Brand Culture: CompetenciesWebsite Recruitment

Brand Culture: Behavior

Brand Culture: Behavior Fun-LUVing Attitude

Brand Ambassador: Herb Kelleher

Brand Culture: BehaviorFun-LUVing Attitude

Brand Ambassador: Gary Kelly (CEO)

Brand Culture: BehaviorFun-LUVing Attitude

Haunted Headquarters: Annual Corporate HalloweenBrand Ambassador: Gary Kelly (CEO)

Haunted Headquarters: Annual Corporate Halloween 07Herb, Colleen & Garry

Brand Culture: Behavior Fun-LUVing Attitude

Haunted Headquarters: Annual Corporate Halloween 08Herb, Colleen & Garry

Brand Culture: Behavior Fun-LUVing Attitude

Haunted Headquarters: Annual Corporate Halloween 09Herb & Garry

Brand Culture: Behavior Fun-LUVing Attitude

Brand Culture: Behavior Knowledge Ambassador

Brand Culture: Organization

• "People Department" and "Culture Committees"

• "Open-door" Policy

• Interactions with Leaders 

• Informal hierarchy systemo Southwest possesses a relaxed and pleasing work

environment. Southwest management encourages and accepts ideas to improve operations.

Brand Culture: Social Fabric

Christmas Celebrate

Ski ClubBags Fly Free Celebrate

Brand Equity

 

Employe-based Brand Equity

Internal Ad & PRInternal Newsletter

Training & Development

Open Door Policy

Employee First

Interactions with Leaders

"Covenant"

Consistency Cross-sectional

Increased

Low Turnover

Peer-recruitment

Source: King et al. (2009)

MeasurementRecruitingSales/Profit per Employee

(SPPE)Turnover Rate

R=H/SxA

R= RecruitingH= New hires requiredA= Percentage who acceptS= Percentage of recruit selected

SPPE = S or P/ E

SPPE= sales/profit per employeeS= Total salesP= Total profitsE= Total number of employees

TR = D/E x 100

TR = Turnover RateD= Number of employee departures annuallyE= Total number of employees

*No Data on Recruiting formula above

Resumes Filed= 90043Accepted= 831

Acceptance rate= 0.22%

*2009 Data

$10,350M or $99M / 34,726

=

$298K or $2850

*2009 Data

(35,499/34726) - 1

=

2.22%

*2009 Data

Outcome: Awards & Accolades

Source: Southwest Airlines, 2009. Annual Report

Brand Value

Source: BrandFinance

References

Burman, C., Riley, N., & Zeplin, S., 2009. Key determinants of internal brand management success: An exploratory empirical analysis. Journal of Brand Management (2009) 16, 264 – 284 doi: 10.1057/bm.2008.6; published online 2 May 2008. 

Burman, C. & Zeplin, S., 2009. Building Brand Commitment: A behavioral approach to approach internal brand management. Journal of Brand Management (2009) 16, 264 – 284 doi: 10.1057/bm.2008.6; published online 2 May 2008. 

King, Ceridwyn and Grace, Debra, 2009. Employee Based Brand Equity: A Third Perspective, Services Marketing Quarterly, 30: 2, 122 — 147. 

Southwest Airlines, 2009. Annual Report. 

www.blogsouthwest.com

www.swamedia.com

Thank You