Other examples include phone cards and bus tickets. Customer Relationship Management). Ryanair implement different marketing strategyto make the company survive in the competition and to be able to gain competitive position in the airline market. This aids speed. 2nd ed. Countries connected. 7 Common Mistakes in Airline marketing strategies 7.1 Objectives - Airlines are sometimes for other purposes than to make profits - Transport service providers to remote area (The reasons why many airlines are state control). Aer Lingus to vote on board pay – BBC News Online – 5th June 2009. Ryanair employs controversy to promote its business. Corporate objective for Ryanair includes increase their profitability, marketing objective includes increase their market share through their extensive marketing campaign. Next to the Ryanair; Easy jet is having 500 routes and serving 28 countries. With recent developments, the … Environment & Carbon Emissions. People are daily reading news about the flight delays, bad customer service and those significant additional charges. All rights reserved. - The company has deals with Hertz car rental, and a number of hotel businesses, phone cards and bus tickets. BBC, 2005, February 16. It is mainly operating in European countries which are having less population. It focuses on low cost and no frills. As of now there is no risk for Ryanair because planes are manufactured for several decades before being discontinued. It is not easy for a new airline industry to enter into the airline market. There is a high demand for fuel as we can see the fuel price will be always fluctuating as oil is limited. You can pre-assign seats. To increase the number of countries served, Ryanair has to serve up the major airports, this is difficult to achieve as the cost will be increased if they are serving major airport. Below the line promotion options are- catalogues, tradeshows and direct mail campaigns. Ryanair Holdings plc, Europe’s largest airline group, is the parent company of Buzz, Lauda, Malta Air & Ryanair DAC. More . It looks at low cost promotions, free publicity, yield management etc. In London, Ryanair’s Chief Marketing Officer, Kenny Jacobs said: “As Europe’s favourite airline, we will carry 129m customers this year and continue to be the world’s most visited airline website. Energy Efficiency. Best-in-class benchmarking “compares an organization performance against best in class performance-wherever that is found” (Johnson, G and Scholes, K. 2002), and it is the best option for Ryanair because in this we can compare other company success and can apply in a better way in the company. They were not sure about which one they wanted. For example, British Airways adds an extra charge to tickets whereas Ryanair rely on periods of unrestricted price rises being short. “The key to the strategic group concept is that differences in profitability between groups persists because of the existence of mobility barriers that stop firms entering or moving between groups and thus competing away profit differentials” (Johnson, G, Scholes, K. and Whittington, R. 2008). Process. BACKGROUND ULCC - RyanAir pioneered the low-fares operating model in Europe in the early 1990s. To positively impact on the attitude of our discontented customers with the view of attracting new customers; 7P’s includes: Product. Ryanair Marketing Mix Product or Service. Objectives of Ryanair’ Strategy Establish itself as Europe’s leading low-fares scheduled passenger airline Through continued improvements and expanded offerings of its low-fares service. Problem Statement . You buy them onboard, or you don’t – take your own food and drink if you like. Differentiation strategy appears to be less advantageous as it’s easy for the competitors to imitate and then attract the customers towards their side. Ryanair followed a strategy which was similarly followed by Southwest they also carry out direct point-to-point service. Ryanair takes a commission on 'up selling'. The purpose of this essay is to critically analyze the airline’s marketing position based on various factors and discuss whether Ryanair is doing well in terms of its marketing strategies. profitable European airlines, which is Ryanair, that could lead the airline to a negative market trend in the future. The marketing mix I have conducted for Ryanair identifies its core values of low prices, efficiency and value for money. News of the World, Jaguar and Kilkenny (beer). The main substitutes of airlines which Ryanair need to consider are rail services because they have become much more suitable and easier for travelling and they are also available at low-cost. There was change in the restrictions in a short time by increasing the number of quick check-ins and full body scanners. Service: After sales, the company should continue providing value to the customers. Secondary airports, which tend to be smaller regional airports, depend upon this single carrier – some (it is rumored) paying up to £100, 000 for each additional new route. Airline industry will be influenced by political factors and policies in many ways, they can create advantages and opportunities for organizations and on the other hand they can place requirements and duties on organizations. More News . Ryanair enjoyed a buoyant summer, as revenue increased 14 per cent to €4bn (£2.86bn) in the six months to 30 September and profit after tax jumped 37 per cent to over €1bn. 77. It is popularly known as the largest low-cost airline which can also be specified as no add-ons or a discount carrier. However based on the background of Ryanair‘s success, Ryanair today is a ‘’monster’’ of borderless Europe with its crowded population and vaguely defined political boundaries. It is said that the company was regarded recently as the most punctual airline between Dublin and London. Human Resource management: Deals with managing employees, giving appraisals, rewards, recruitment. For example if you fly to Copenhagen (Denmark) you arrive in Malmo (Sweden) – although it is only a short coach trip over the border. Ryanair has managed to decrease landing cost, parking cost, noise charges by providing their services to secondary and regional airports. (Refer Appendix-7). Looking for a joint venture with Air Lingus which will help Ryanair to expand its flights to global areas. Company number 05936182. The research project will focus on competitive analysis on one of the leading low-cost airlines, termed as Ryanair. The main focus on the surroundings (including external and internal) of Ryanair, which help to produce their service. The strategy of Ryanair was not clear as it wanted to be a cost leader but was more focused. The socio-cultural factors include demographics, disposable income, changes in buying pattern (Pearce and Robinson, 2005).