Monday, October 22, 2012

United Breaks Guitars

http://www.youtube.com/watch?v=5YGc4zOqozo

“United breaks guitars.”  This three-word chorus line sung by Canadian musician Dave Carroll got the attention of over 8 million viewers.  Traveling is always a hassle especially when it comes to being a musician.  They carry special cargo also known as a “Guitar’’ wherever they go.  Dave Carroll had an incident back in July 2009 where the neck of his Taylor guitar was snapped due to careless employees.  United wouldn’t compensate him since it wasn’t within the “24 hour” period of time but his viral video sparked a blaze that destroyed more than one guitar.

·      180 Million dollars of shareholders money declined.
·      Stock plunged by 10%
·      Biggest decline in 3 years.
·      Compensated him $3,000 for the $3,500 guitar.

Today there is over 12 million youtube video views and at one point had reached the number one spot on itunes.  This video hurt the business of United Airlines displaying poor costumer service and care.  But on the other hand boosted the business of Taylor guitars who gladly gave Dave Carroll two brand new Taylors.  

Untied Airlines objective is to provide better customer service and satisfaction to make sure that all their customers are satisfied and taken care of.  This incident caused a large decline in sales and image due to social media.  The target audience for United Airlines is the anyone who is a current customer between the ages of 18-50.  Also, anyone part of the music community will second guess flying United Airlines after this problem, so they should market and reassure that their valuables are safe with this airline. 

With this problem Untied can use this as an opportunity to show that they care and boost their company's compassion and customer satisfaction.  They can use the tactic of making sure their employees attend to the concerns of all their passengers and not take any incident lightly so that their business will not be further damaged.  Lastly, they need to measure their worth of loss that could occur to the problem or situation and look at the damages that could happen in the long run.


John Coviello

1 comment:

  1. John,
    This is a good company example - thank you. Please take a stab at the style, format, grammar, sentence structure. This has the potential to be a great analysis but needs some editing.

    Thanks,
    Perri

    ReplyDelete