These customers vary in terms of their requirements and expectations. It is important for the carriers to leverage the available data to get insights into the passenger behavior Getable operated in the low-fare category of the industry, but unlike other low-fare airlines, Getable wasn’t a “ no-frills” airline Offerings – Getable experience
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Bring humanity back to Air travel and make the experience Of flying happier and easier for everyone Wider leather seats More legroom and storage space In-flight entertainment (24 channels) Dedicated service personnel Free co-branded amenities Touch screen check-in Pre-assigned seats It offered a unique flying experience due to its “ Humanity touch” – The airlines tapped in on caring for its customers in an industry that lacked compassion, a missing human touch. It offered to better the lives of its customers, creamers and the communities.
This commitment to inspiring humanity was their differentiator. The airline also flew its planes from point to point. It did not use the hub system of other airlines. By using the point-to point system, Getable was very selective when picking the geographic markets where it wants to compete. VALUE CHAIN Inbound Logistics – Internet presence and web-based ticketing Operations crew scheduling, no meals, automated baggage handling Outbound – Airports chosen carefully, less congested Make. ND sales – work from home call centers, attractive pricing Service customer-focus, CEO who interacts Service Value : Highly productive people, productive aircrafts, caring culture of he organization Hard standards: On time performance Customer support Complaint handling time Bill of Rights Time for boarding Soft Standards: Friendly personnel Cleanliness on-flight Getable understood its internal environment, the external environment, competition, as well as its own customers and potential customers. Noninsured behavioral segmentation and competitive advantage to be ahead of its competitors. Service Marketing Triangle: External Marketing: Jet blue’s external marketing promises to the customer were low cost and high service quality. The service facilities like Spa, Live TV, Dunking Donuts Effie, Satellite radio were examples of the same. Internal Marketing: Jet Blue’s was able to enable its promise by inspiring its employee. Jet Blue had a humble CEO who cultivated the sense of team work in its employees.
The CEO had the ability to connect with its people. The Jet Blue involved its employee in every aspect of the business. The Supervisors in Jet Blue attended the “ Jet Blue University’ to learn the company principles of team work. The inculcated the sense of “ We” in the Jet Blue crew members. They increased the work force productivity through better training and smarter business processes. The internal marketing in Jet Blue helped the airlines to keep its employees motivated and they were actually seen defending the airlines during the time of the crisis.
Interactive Marketing: Jet blue’s CEO used to frequently travel in the airlines and used to connect with the customers to take the feedback on the services provided and also requested them to provide suggestions on the improvement of the airline service as a whole. This was an example of CEO leading its employee by example. Jet blue won lot of awards, In 2007 Jet Blue was named as number three most admired airline by fortune and best in customer satisfaction by Market Matrix in 2006.
They were also picked as best domestic airline by Coned NASA Travel and Travel + Leisure. They had a fleet of highly motivated employees as a result of which they enjoyed the second lowest rate of customer complaints among the 10 Largest U. S. Airlines. Service profit Chain Jet Blue internal marketing let to employee satisfaction, which led to customer satisfaction and increased revenue growth and profitability for Jet Blue. Jet Blue employees considered themselves as an integral member of the airlines.
There were instances wherein the employees were responding to the customer on the complaints raised by them during the time of crisis, this is one classic example of high internal service quality in Jet Blue. The employees in Jet Blue were highly satisfied which led to employee retention and employee productivity; in addition to that this led to high external service value to the end customer. The customer were satisfied with their jet blue experience, in addition to that Jet Blue also had a loyal base of customer which came out in defense of the airline during the time of crisis.
As a result of overall value chain Jet Blue experienced year on year revenue growth from 000 to 2004 and which led to profitability for the firm. Q. What challenges did David Melanin and his executive team face in managing the customer experience as the airline grew rapidly? How did they respond to those challenges? We have used the McKinney as Framework to analyze the steps taken by David Melanin after the first crisis of 2005. as Framework is used for auditing the current state of the organization and it can also be used to implement new strategy. S framework consist Of hard and soft G’s. All the as have to align for the strategy to work. If the as are aligned then the short- term strategy also works. Strategy: Jet Blue short-term strategy was to scale up to increase the revenue by market development. They planned to expand their services to medium and small sized cities. They believed that since the carriers in medium and short run cities are less they can charge a premium on the tickets leading to better revenues. Structure In order to implement the strategy the firm also has to restructure its organization chart.
There is no information present in the case on the change on restructuring of the organization. The people involved in the organization structure were CEO, David Melanin and Chief Operating Officer, Dave Barge. There are instances in the case were it is highlighted that CEO was involved in every aspect Of the business. We believe that they should have hired people from the local area upon expansion so that the load on the CEO and Chief Operating Officer should have been reduced and better handling of the on ground resources could have taken place by quick decision making.
They should have restructured the organization. This was one S, which was not aligned with the company strategy. Systems: In order to implement the new strategy it is important for the organization to improve upon the systems and current processes. Jet Blue moved towards automation and smarter business processes; however Jet Blue did not pay any emphasis on customer support and capacity of the system. This led to increased chaos during the time of the crisis. Jet Blue should have load tested there system for the maximum calls and maximum bookings.
The system went down when people tried to reschedule or cancel their flights during the time of the crisis. This was another place where Jet Blue strategy was not in line with the existing capacity of the system. Skills Jet Blue did improve the productivity of its workforce upon implementation of the new strategy. The employees were trained to be more productive to handle additional traffic. The Skills were aligned with the strategy. Style The management was actively involved with the customer and employee.
The employees also responded positively to the management style. The Style was aligned with the strategy. Shared Value The shared value among the employees of the Jet Blue was to provide the end customer with Jet Blue experience. The Jet Blue experience was high service quality at low cost. The strategy was to expand but not at the expense of shared values. Jet Blue employees were living up to the promise of providing he same-shared values. Staff The staffs of Jet Blue were not increased on scaling up there was a gap between the resource and the demand of the employee.
The prefect example of same was when the Jet Blue went through the crisis in 2007 the pilots and ground staffs were not enough to handle the situation on ground. The Style was not aligned with strategy of the company. The model clearly highlights the Gap in the Jet Blue new strategy were in by auditing using as framework we came to know that Staff, System and Structure were not in line with the Jet Blue strategy as a result Of which Jet Blue Was not able to provide prompt covers to people during the time of crisis and hence failed miserably. 3. What exactly went wrong?