Harvard Case - WestJet: A New Social Media Strategy
"WestJet: A New Social Media Strategy" Harvard business case study is written by Derrick Neufeld, Faizal Jiwani, Sarah Hardy, Peter Tong. It deals with the challenges in the field of Marketing. The case study is 12 page(s) long and it was first published on : Jun 20, 2016
At Fern Fort University, we recommend WestJet implement a comprehensive social media strategy focused on customer engagement, brand storytelling, and community building. This strategy should leverage the power of social listening, data analytics, and influencer marketing to drive brand loyalty, customer acquisition, and positive brand perception.
2. Background
WestJet, a Canadian low-cost carrier, has experienced significant success by focusing on customer service and creating a unique brand identity. However, the company faces growing competition from established airlines and new entrants like Swoop. WestJet needs to adapt its marketing strategy to remain competitive and attract new customers in an increasingly digital world.
The case study focuses on WestJet's decision to develop a new social media strategy to engage with customers, build brand loyalty, and attract new customers. The company's current social media presence is limited and lacks a clear strategy.
3. Analysis of the Case Study
We can analyze WestJet's situation using the following frameworks:
a) SWOT Analysis:
- Strengths: Strong brand reputation, customer-centric culture, innovative approach to customer service, strong presence in Canada.
- Weaknesses: Limited social media presence, lack of a clear social media strategy, potential for brand inconsistency across channels.
- Opportunities: Growing social media usage, potential for viral marketing, increased demand for travel experiences, opportunity to leverage data analytics.
- Threats: Increasing competition, economic uncertainty, changing travel trends, potential for negative publicity.
b) PESTEL Analysis:
- Political: Government regulations on air travel, trade agreements, political stability.
- Economic: Economic growth, fuel prices, consumer spending patterns.
- Social: Changing travel preferences, growing demand for personalized experiences, social media influence.
- Technological: Advancements in air travel technology, digital marketing tools, social media platforms.
- Environmental: Sustainability concerns, carbon emissions, environmental regulations.
- Legal: Aviation safety regulations, consumer protection laws, data privacy regulations.
c) Porter's Five Forces:
- Threat of New Entrants: High, due to low barriers to entry in the low-cost carrier market.
- Bargaining Power of Buyers: High, due to the availability of alternative airlines and online travel agencies.
- Threat of Substitute Products: High, due to the existence of alternative modes of transportation, such as trains and buses.
- Bargaining Power of Suppliers: Moderate, due to the dependence on fuel and aircraft manufacturers.
- Rivalry among Existing Competitors: High, due to the presence of numerous established and low-cost airlines.
4. Recommendations
1. Define a Clear Social Media Strategy:
- Target Audience: Identify specific target market segments, including families, business travelers, and adventure seekers.
- Messaging: Develop a consistent brand voice and messaging across all social media platforms.
- Content Strategy: Create engaging content that resonates with the target audience, including travel tips, destination guides, behind-the-scenes glimpses, and customer stories.
- Social Media Platforms: Select the most relevant platforms for each target audience, such as Facebook, Instagram, Twitter, and YouTube.
2. Leverage Social Listening and Data Analytics:
- Monitor Brand Mentions: Track online conversations about WestJet and identify customer sentiment.
- Analyze Customer Data: Gather insights from social media interactions, website visits, and customer surveys.
- Optimize Content Strategy: Use data to refine content strategy and tailor messaging to specific audiences.
3. Implement Influencer Marketing:
- Identify Relevant Influencers: Partner with travel bloggers, vloggers, and social media personalities who align with WestJet's brand values.
- Develop Influencer Campaigns: Create engaging campaigns that leverage the influencer's audience and expertise.
- Track Campaign Performance: Measure the effectiveness of influencer campaigns and adjust strategies as needed.
4. Foster Community Building:
- Create Engaging Groups: Establish online communities for WestJet customers to connect and share travel experiences.
- Host Contests and Giveaways: Run social media contests and giveaways to generate excitement and engagement.
- Respond to Customer Feedback: Actively engage with customers on social media and address their concerns promptly.
5. Integrate Social Media with Other Marketing Channels:
- Cross-Promote Social Media Content: Share social media links on website, email newsletters, and advertising materials.
- Use Social Media for Customer Service: Provide customer support through social media channels.
- Track Social Media ROI: Measure the return on investment for social media campaigns and optimize strategies accordingly.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies: WestJet's core competencies lie in customer service, operational efficiency, and brand building. The recommended social media strategy aligns with these strengths by focusing on customer engagement and brand storytelling.
- External Customers: The strategy addresses the needs of WestJet's target customers by providing engaging content, personalized experiences, and opportunities for interaction.
- Competitors: The strategy aims to differentiate WestJet from competitors by leveraging social media to build brand loyalty and create a sense of community.
- Attractiveness: The strategy is expected to drive customer acquisition, increase brand awareness, and improve customer satisfaction, leading to increased revenue and profitability.
6. Conclusion
By implementing a comprehensive social media strategy that focuses on customer engagement, brand storytelling, and community building, WestJet can leverage the power of social media to drive brand loyalty, customer acquisition, and positive brand perception. This strategy will enable WestJet to remain competitive in the evolving airline industry and attract new customers in the digital age.
7. Discussion
Alternative Options:
- Traditional Advertising: While traditional advertising can still be effective, it may not be as cost-effective or engaging as social media.
- Limited Social Media Presence: Maintaining a limited social media presence may not be sufficient to compete with airlines that are actively engaging with customers online.
- Focus on Price: Focusing solely on price may lead to a price war and erode profitability.
Risks:
- Negative Publicity: Negative social media posts can damage brand reputation.
- Data Privacy Concerns: Data collection and usage must comply with privacy regulations.
- Social Media Platform Changes: Social media platforms are constantly evolving, requiring ongoing adaptation.
Key Assumptions:
- Growing Social Media Usage: The strategy assumes continued growth in social media usage among WestJet's target audience.
- Customer Engagement: The strategy assumes that customers are willing to engage with WestJet on social media.
- Data Analytics Effectiveness: The strategy assumes that data analytics can be effectively used to optimize content strategy and target marketing efforts.
8. Next Steps
- Develop a Detailed Social Media Strategy: Define specific objectives, target audiences, content calendar, and budget.
- Select Social Media Platforms: Identify the most relevant platforms for each target audience.
- Develop Content Strategy: Create engaging content that resonates with the target audience.
- Implement Social Listening Tools: Monitor brand mentions and customer sentiment.
- Partner with Influencers: Identify and engage with relevant influencers.
- Track and Analyze Results: Monitor campaign performance and adjust strategies as needed.
Timeline:
- Month 1: Develop social media strategy and select platforms.
- Month 2: Create content calendar and develop influencer partnerships.
- Month 3: Launch social media campaigns and begin tracking results.
- Month 6: Analyze results and adjust strategies as needed.
By taking these steps, WestJet can successfully leverage social media to achieve its business objectives and remain a leader in the airline industry.
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Case Description
In October 2015, WestJet, Canada's second largest airline, needed to expand its social media presence. The vice-president of marketing and communications and the manager of social media were excited about the prospects of continuing to grow their customer base and reach even more guests through social media. WestJet had developed a highly successful approach to managing social media, and now the two executives were faced with two new possible social platforms: Snapchat and Pinterest. With an economy in decline and a flat marketing budget for 2016, they had a decision to make. Should the company pursue either of these platforms for the coming year, and if so, how? Which one would be best for the growth and evolution of WestJet's social media presence?
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