This paper seeks to provide a comprehensive analysis of Ryanair marketing strategies, an airline company that began operations in 1985 with only a single fifteen-seat plane plying between London Gatwick and Dublin and waterfall in Ireland. …
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According to the research findings Ryanair began its operations in 1985 with a single 15-seater plane, primarily a conventional airline from Dublin and Waterford in the Ireland Republic to London. During the initial years of operations, the airline faced significant financial challenges, which led to losses in the company. After an analysis of its marketing strategies, the company decided to re-launch in 1990/1991 as a “no frills”, low cost air carrier, replicating the business model of American Southwest Airline. Since then, price has been the integral marketing strategy of the company, promoting and maintaining its growth in the European low-cost airline industry. These changes were the ideas of Michael O’Leary, initially the financial controller of the company. O’Leary, now the chief executive officer at the company, persuaded Tony Ryan (owner) to redress financial issues affecting the company at the time. He developed a marketing strategy based on American Southwest Airlines, introducing the concept of low-cost, “no frills” in the airline. These changes stemmed the losses of the company, as well as turning the venture into a huge success. According to statistics, the company posted a profit after tax of 303million dollars in 2006, a 13% increase from that recorded in 2005. Currently, the airline operates in more than 146 routes to 84 different destinations in 16 countries, carrying more than 15 million passengers annually. Further, the airline plans to become the largest airliner in Europe in a few years. By any standards, one can consider the company as successful, primarily based on its growth in the market as well as its profitability. 2. Mission and Strategy The objective of Ryanair is to be the largest and leading low-cost airline in Europe through continuous expansions and improvements in its low-cost services. The primary objective that are in place to achieve this include, low-cost fare, industry-leading customer service, strong commitment to quality and safety maintenance, flight services on short-haul routes, leveraging the internet, and low operating costs that address personnel productivity, aircraft and equipment, airport access fees and customer service costs. The principal policy of Ryanair is to offer the lowest flight fares available from any carrier (Gugenheimer, 2006:67). For instance, the company often matches the prices of a competitor if they lower their prices. Consequently, one may consider this anomaly given that the company has a strong commitment to provide quality customer service, but these two strategic elements are complementary insofar as the company is concerned. Ryanair strategically uses small regional airports for its flight operations, keeping the operations costs low as well as providing a less congested traffic alternative for its customers travelling, thus less delays. Additionally, the frequent, short-haul flights do not require provision of complex services such as food and drinks, as they are rather short compared
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The company connects 160 destinations by offering low cost flights to its customers. With a team of 8,000 people and carrying 73.5 million passengers, Ryanair has become one of the World’s favourite airlines (Ryanair.com). According to the information available on the official website of the company, in 2009 the airline carried total 66,503,999 passengers and its traffic grew by 14 percent as compared to previous year.
They did not divert passengers from other carriers but created new customers by diverting from other modes of travel. To sustain competition they maintain low prices, which imply that they offer no frills. To eliminate the agent’s commission, they use online booking and ticketing system which further pushes down costs.
Change of policies pertaining to the European Union owing to outbreak of viral epidemics and also rise of terror threat tends to affect its spontaneous flight services in several European regions (Hagele, 2006, p.2). Economic RyanAir’s operation in the European region is held to grow owing to the sustenance and growth of political and economic situation of Europe.
Later in 1986, the European Union allowed international travel by air between two nations as long as the countries had bilateral agreements on the same. Ryanair took advantage of the higher fares offered by its competitors to make air travel cheaper between two routes namely London and Dublin.
Core competencies imply access to a wide variety of markets, contribution to the perceived customer benefits and it should be difficult for competitors to imitate. They are built through a continuous process of
In the last couple of years however the visible decline in consumer patronage of the services of the airline have given management reason to conduct an exhaustive analysis of the most immediate and remote factors
The information collected through surveys has been analysed through SPSS software. Different methods and techniques have been used to derive the conclusions from the collected data.
In the first section, the frequency analysis has been
It is specializes in low-cost, low-fee airline service to the worldwide customers. Its overall business strategy encompasses a series of in-flight operations. Ryanair has adopted a functionality-based approach to business strategy and decision