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American Airlines

American Airlines. Learns to Use the Internet March, 2009. Executive Summary.

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American Airlines

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  1. American Airlines Learns to Use the Internet March, 2009

  2. Executive Summary American Airlines is currently in a financial slump. The Economy is in a depression and people don’t trust big companies. American Airlines needs to reach out to its consumers by using current new media strategies. By improving the usability of their Twitter and Facebook and by creating a worthwhile blog, AA can recreate its identity. This will also allow AA to compete with smaller companies such as JetBlue and Southwest Airlines who are growing in popularity due to their influential Twitter and Facebook sites. By reaching out to consumers, American Airlines can win back the favor of their current customers and also gain new customers.

  3. Current Company Standings 100,000 Employees $150 Billion a year 260 cities in 40 countries with 3400 flights daily on 655 aircrafts 2007 Market Share was 18%

  4. Current Communication Website Simple and functional Plenty of information on the company Easy booking abilities Errors?

  5. On the American Airlines website, under their corporate communications fact sheet, there are conflicting statistics within 15 lines from each other.

  6. Current Communication Mobile site Ability to view reservations, flight check-in, status, and schedules, check on baggage, check weather at destination, change and book flights, and contact AA Easy to use and highly useful to anyone with a smart phone Not a lot of knowledge about it

  7. Current Communication Twitter site Tried to interact with customers but it never took off Has not been updated in 6 months Uses a standard Twitter page instead of something personalized to the company

  8. Current Twitter Page

  9. Current Communication Facebook Non-interactive Many pictures Discussion board is uneventful

  10. Current Facebook Page

  11. Current Communication Blog AA started a blog in early 2008 Blog was wordy and impersonal Shut down after a short amount of time

  12. Former Blog

  13. Company Economic Situation Stocks are at all time low for the past 5 years March 5th, 2007, stock was at $32.87 March 9th, 2009, stock was at $2.74 Market share is down from 18% in 2007 to 14.4% in 2008

  14. Stakeholder Groups • Focus on current and potential new customers • Currently, people are unsatisfied with the company. • My3cents.com recent posts on American Airlines include lines like: • Rude Customer Service • Worst Airline • Poor Customer Service and lack of Care for Customer • American Airlines are a Fraud and a Rip Off

  15. Objective • To improve the image of American Airlines and to raise the negative feelings of current consumers while increasing market share from 14.4% to 15% for 2009 • While the increase seems small, in an industry with so many competitors, that will be a remarkable increase

  16. Strengths of the Strategy Reach out to new technology savvy audience Ability to answer questions and give feedback in real time Personalize American Airlines into a truly friendly company who is straight forward and honest

  17. Improved Twitter Redesigned home page Interactive tweeting with representatives online to reply to consumers Ability for consumers to check flights, delays, post comments, and get feedback immediately Offer special promotions

  18. Potential New Twitter Page

  19. Improved Facebook Reach out to more followers via ads through Twitter, Facebook sidebars, online ads and AA website Ask worthwhile discussion questions and message fans for their answers Have representatives online to answer questions

  20. Improved Blog • Collection of blogs from a variety of employees • CEO, Customer Service Manager (Gate Agent), Mechanic, Baggage Handlers • Give AA a face and personal side • Ability to address current issues, explain situations (why gate agents type so much, why bags get lost, etc.) • Additional blog where customers can post about their recent experiences • Constantly monitored to immediately follow up on negative posts or issues and answer questions

  21. Potential Blog Page

  22. Post Launch of New Tactics • Measure effectiveness by • Increase in followers • Increase in posts • Change in market share • Amount of new customers

  23. Contingencies • When to shut down • When the tactics fail to work properly or bad press is generated by the sites, it is time to reorganize but never shut down the sites. This could be seen as another failed attempt and could make AA look like technology challenged quitters • Lack of Participation • More promotion through commercials, guerrilla marketing, online ads, promotion on website, and promotion of all the different tactics on each different site

  24. Contingencies Cont. • Excessive Participation • Would be awesome, as long as it is positive participation • Give rewards for those who do a lot to promote the company • Spam and Content • Clauses stating that those who post spam will be banned from the group • Use of a word verification

  25. Contingencies Cont. • Ownership of Intellectual Postings • Clause saying that AA reserves the right to use you postings for promotional and professional uses

  26. Sources "AA.com - Now Serving Your Mobile Phone!" Airline Tickets and Airline Reservations from American Airlines | AA.com. 10 Mar. 2009 http://www.aa.com/aa/i18nForward.do?p=/urls/mobile.jsp&anchorLocation=DirectURL&title=mobile. Airline Tickets and Airline Reservations from American Airlines | AA.com. 10 Mar. 2009 http://www.aa.com/aa/homePage.do. "American Airlines Consumer Reviews." My3cents.com - Let your voice be heard! Consumer Reviews, Complaints and more... 10 Mar. 2009 http://www.my3cents.com/companyOverview.cgi?code=14. "AMR: AMR Corporation Stock Report | Quote & News." 10 Mar. 2009 http://quote.morningstar.com/Quote/Quote.aspx?ticker=amr. "American Airlines." Welcome to Facebook! | Facebook. 10 Mar. 2009 http://www.facebook.com/inbox/readmessage.php?t=1013692553860&f=1&e=0#/pages/American-Airlines/7003656077?sid=ec19641bc7e53448a66b300102eb9fc3&ref=s. "Public Relations: American Airlines' Blog Is As Good As Its Flights." Gawker ; Gossip from Manhattan and the Beltway to Hollywood and the Valley. 10 Mar. 2009 http://gawker.com/380395/american-airlines-blog-is-as-good-as-its-flights. RITA | BTS | Transtats. 10 Mar. 2009 http://www.transtats.bts.gov/. "Twitter / AmericanAir." Twitter: What are you doing? 10 Mar. 2009 http://twitter.com/AmericanAir. "Twitter / JetBlue." Twitter: What are you doing? 10 Mar. 2009 http://twitter.com/JetBlue.

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