Marketing Strategy 63k3v

United Airlines: A 360º fiasco Group 11 Kanika Mittal

160201024

Mit Ajit Desai

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Prakhar Joshi

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Priya Agarwal

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Vareesha Fatima Vignesshvar U

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Background & Research engers asked to leave to accommodate crew

The Incident

Mr. Dao violently treated and dragged off the plane Video shot goes viral Attracts criticism, public anger, competitors announcements

Top management summoned to strategize the incident

Assumptions  Similar public reaction  Majority of public will react in the usual way; showcasing sympathy with the victim  Overbooking continues to be legal  Law empowers airlines Industry to overbook and deny engers a seat in case a need arises

Parameters Competition • None of the major North American Airlines reacted directly to the incident • Competitors like Qatar, Emirates, Royal Jordanian take on social media Social • Social media platforms a powerful medium to reach out to masses • Can affect a brand both positively and negatively • Public anger can turn tables • Remuneration can prove to be heavy: “United breaks guitars”

Parameters

Culture • Front line managers didn’t have decision making power • Strict policies to document customer interaction • No empathy showcased towards customers’ concerns

Legal • Attracts multimillion dollar lawsuit • “Contract of carriage” clause signed by engers Customer • Frequent flyers • Corporate/Business flyers Economic • Shares nose dived • Loss of 4% shares • $1 Bn. wiped out

Choices available to Choice Opted Option 1: United defends its actions

Option 2: United apologizes to manage the situation

Keeping in mind the strong external factors playing, United should do the following: • Issue an apology statement; specially aimed at the social media • Announce remuneration to the injured enger • Promote official messages to counter competition’s actions • Modify policies to reduce law enforcement intervention • Empower front line staff with decision making powers

Impact of the chosen option  Save brand image  Use of social media platforms to spread messages will create a ripple effect  Revive the financial situation  Prevent further dip in stocks and loss of investors  Investor's approval can be saved  Stakeholders’ interest safeguarded; goodwill of the brand remains  Stand by your tagline: “Fly the friendly skies”  Showcases customer focused approach

Thank You!