Harvard Case - The WestJet Christmas Miracle (A)
"The WestJet Christmas Miracle (A)" Harvard business case study is written by Kersi Antia, Ramasastry Chandrasekhar. It deals with the challenges in the field of Marketing. The case study is 16 page(s) long and it was first published on : Aug 25, 2014
At Fern Fort University, we recommend WestJet capitalize on the viral success of the "Christmas Miracle" campaign by integrating it into a long-term, customer-centric brand strategy. This strategy should focus on building brand equity through consistent, authentic acts of kindness, leveraging digital marketing channels, and fostering a culture of customer-centricity within the organization.
2. Background
The case study revolves around WestJet, a Canadian low-cost airline, and their spontaneous act of kindness during the Christmas season of 2013. WestJet surprised passengers at a Calgary airport with a 'Christmas Miracle' campaign, fulfilling their Christmas wishes in real-time. This unexpected gesture went viral, generating immense positive publicity and a surge in brand loyalty.
The main protagonists are WestJet's CEO, Clive Beddoe, and the marketing team who orchestrated the 'Christmas Miracle' campaign.
3. Analysis of the Case Study
Marketing Strategy & Brand Management:
- Disruptive Innovation: The 'Christmas Miracle' campaign was a classic example of disruptive innovation. It challenged the traditional marketing approach of airlines and created a powerful emotional connection with customers.
- Brand Positioning: The campaign effectively repositioned WestJet from a low-cost airline to a brand synonymous with warmth, generosity, and customer-centricity.
- Consumer Behavior: The campaign tapped into the emotional desires and aspirations of consumers during the holiday season, triggering a strong emotional response and positive brand association.
- Digital Marketing: The viral nature of the campaign highlighted the power of social media and digital marketing in amplifying brand messages and creating a buzz.
- Customer Relationship Management: The campaign fostered a sense of community and loyalty among customers, creating a powerful platform for building long-term relationships.
Financial Analysis:
- Return on Investment (ROI): While the campaign's financial impact was not explicitly measured in the case, the significant increase in brand awareness, customer loyalty, and positive media coverage suggests a high ROI.
- Brand Equity: The campaign significantly increased WestJet's brand equity, which translates into increased revenue, customer retention, and competitive advantage.
SWOT Analysis:
- Strengths: Strong brand image, customer loyalty, innovative marketing approach, positive media coverage.
- Weaknesses: Limited international presence, potential for over-reliance on viral marketing.
- Opportunities: Expand international operations, leverage digital marketing channels, develop new customer-centric initiatives.
- Threats: Competition from established airlines, economic fluctuations, potential for negative publicity.
4. Recommendations
- Integrate 'Christmas Miracle' into a Long-Term Brand Strategy: WestJet should establish a consistent brand philosophy based on acts of kindness and customer-centricity. This philosophy should guide all marketing efforts, product development, and employee interactions.
- Develop a 'Surprise and Delight' Program: Create a structured program for delivering unexpected acts of kindness to customers throughout the year. This could involve personalized gestures, community outreach initiatives, or partnerships with charities.
- Leverage Digital Marketing Channels: Invest in a robust digital marketing strategy that utilizes social media, content marketing, and search engine optimization (SEO) to amplify brand messages and engage customers.
- Foster a Culture of Customer-Centricity: Train employees to embody the brand's values and prioritize customer experience. Implement internal programs that incentivize and reward employees for demonstrating exceptional customer service.
- Track and Measure Results: Implement a comprehensive marketing analytics framework to track the impact of marketing initiatives, measure brand equity, and optimize future campaigns.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Mission: The 'Christmas Miracle' campaign aligns with WestJet's core values of customer-centricity and innovation. Building on this successful initiative will strengthen the brand's identity and enhance its competitive advantage.
- External Customers and Internal Clients: The recommendations focus on creating a positive customer experience and fostering a culture of customer-centricity within the organization. This approach will benefit both external customers and internal employees.
- Competitors: The recommendations aim to differentiate WestJet from its competitors by emphasizing its unique brand values and customer-centric approach. This will help WestJet attract and retain customers in a competitive market.
- Attractiveness ' Quantitative Measures: While the exact financial impact of these recommendations is difficult to quantify, the potential for increased brand equity, customer loyalty, and revenue growth makes them highly attractive.
6. Conclusion
The 'Christmas Miracle' campaign demonstrated the power of authentic and unexpected gestures in building brand loyalty and driving positive publicity. By integrating this approach into a long-term brand strategy, WestJet can solidify its position as a customer-centric airline, attracting and retaining customers in a competitive market.
7. Discussion
Alternatives:
- Focus on Price Competition: WestJet could choose to compete solely on price, offering the lowest fares to attract price-sensitive customers. However, this approach could erode brand equity and lead to a price war with competitors.
- Traditional Marketing Campaigns: WestJet could rely on traditional advertising and marketing campaigns, but this approach may be less effective in generating the same level of emotional connection and viral impact as the 'Christmas Miracle' campaign.
Risks:
- Over-reliance on Viral Marketing: The 'Christmas Miracle' campaign's success was largely due to its viral nature. Reliance on viral marketing alone could be unpredictable and unsustainable.
- Negative Publicity: Any negative publicity or customer service issues could damage WestJet's carefully cultivated brand image.
Key Assumptions:
- Customer Demand: The recommendations assume that customers value authentic acts of kindness and customer-centricity.
- Digital Marketing Effectiveness: The recommendations assume that digital marketing channels will remain effective in reaching and engaging target audiences.
8. Next Steps
- Develop a detailed brand strategy document outlining the 'Surprise and Delight' program, digital marketing plan, and employee training initiatives. (3 months)
- Pilot the 'Surprise and Delight' program at select airports and gather customer feedback. (6 months)
- Launch a comprehensive digital marketing campaign to promote the brand's new customer-centric approach. (12 months)
- Continuously monitor and evaluate the effectiveness of marketing initiatives and make adjustments as needed. (ongoing)
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Case Description
WestJet, Canada's second largest national airline, is preparing to launch a social media initiative to coincide with the year-end holiday season. As the company's executive vice-president (Sales, Marketing and Guest Experience) reviews the plan, he is seeking answers to three questions. Does the proposed initiative fit or mismatch with WestJet's brand image? Will the initiative deepen or dilute the engagement the airline currently enjoys with its guests (as it calls its passengers) and WestJetters (as it calls its employees)? What specific outcomes can WestJet achieve through the initiative and how can those outcomes be improved?
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