The study will explore the strategies of the company that have made it more successful than its competitors. More specifically, this study will discuss the marketing strategy of Easy Jet Company and compare its pricing strategy with that of its competitors…
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Easy Jet Airline Company
Since its establishment in 1994, the company has undergone a lot of improvements including base openings and acquisitions. For a company to survive in the market, it should employ marketing strategies that are compatible with the market and profitability of the company (Koenigsber, Muller & Vilcassim 279). Easy Jet has applied a unique marketing strategy that has enabled it to survive in the competitive market (Koenigsber, Muller & Vilcassim 281). The mission of the company is to provide customers with exceptional value and point-to-point airline services. The company also aims at offering and effecting reliable and consistent fares and products that appeal to business markets and leisure on various European routes. By 2009, the company had employed more than 6107 employees. Easy Jet has been one of the most successful and competitive low-cost and short-haul airline with a clear pricing structure (Mayer 16). All prices for a given flight are quoted one way; this means that a single price prevails in any point of the flight. The prices of the airline are low early on, but increase as the date of departure nears. Easy Jet applies various and distinct strategies in its operations. First, the company does not offer a last minute deal. One cannot get a flight ticket at the last minute of the flight. Secondly, the company offers a single class of travelers unlike other airline companies where there are different travelling classes. Price is the only variant that controls the demand for flight tickets at Easy Jet Company (Mayer 17). The third strategy applies to the duration of sale of tickets. The company varies the time in which its tickets are offered on the market. The first two strategies can be contrasted to the traditional airline pricing strategy. Most of the competitors of Easy Jet Company offer the last minute deals through resellers or directly to customers (Koenigsber, Muller & Vilcassim 282). The prevailing pricing strategy at Easy Jet also aims to control the demand through seat allocation to certain classes of people. This is done by making price the only variable that controls demand for travelling tickets, and offering equal services to all customers. Ryanair is one of the airlines, which compete with Easy Jet. The two companies use the same pricing strategy that insists on providing air services that are cheaper than other competitors. The low prices set by the two companies are feasible through reducing all possible costs, and having no frills. They use indicative ways to reduce their costs such as little product differentiation, reducing the costs of research and development and reducing the advertising and selling costs (Jones 28). The two companies also use efficient scale facilities; any innovations can only be adopted when the other competitors have tried and implemented them successfully. This helps in reducing the risks that may arise after implementing these innovations. A competitive advantage of the two companies lies in the fact that they have a combination of high frequency services and low cost fares (Mayer 17). They also have an excellent network of routes where they increase the number of flights. Having reduced prices, Easy Jet and Ryanair do not offer drinks, food, or other services offered by other competitors. This way, the company lowers the expenses thus reducing the prices. Easy Jet has succeeded in reducing the costs
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(Easy Jet Airline Company Term Paper Example | Topics and Well Written Essays - 1250 Words)
“Easy Jet Airline Company Term Paper Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/business/1397251-easy-jet.
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