Marketing Strategies for RyanAir - Case Study Example

? Ryan Air Contents Contents 2 PESTLE Analysis of RyanAir in the European market 3 SWOT Analysis of RyanAir 5 Marketing Objectives of RyanAir 7 Marketing Strategies for RyanAir 10 Marketing Programs 11 References 13 PESTLE Analysis of RyanAir in the European market Political RyanAir’s flight operations tend to get largely affected by political turmoil and instability in the European markets. 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. It is held that that growth of the purchasing power of the European consumers would help in steering the rate of passenger inflow. RyanAir thus being the low-cost airlines can effectively sustain its market position (Mayer, 2008, p.3). Social With a growth in the per-capita income of the European households the lifestyle of such people is also held to counter changes. The number of vacation goers is thereby held to increase which in turn would help RyanAir gain an increase in passenger traffic during weekends (Hoffmann, 2007, p.13). Technological RyanAir is gradually developing on the technological situation by dearth of developing its website from only a booking enabled site to contain enhanced information pertaining to flight destinations. Further the company is working with other complimentary business firms like travels and hospitality to enhance its online service and information dimension (Bearne, 2010). Legal RyanAir’s flight operations are continuously under legal surveillance. During 2005 the airlines company was sued by a British Court by around ?24,000 pertaining to its erroneous representation of flight prices as against the Consumer Protection codes of the region (Rush and Ottley, 2006, p.286). Again during 2010 the company was made bound by European Union regulations to reimburse the reservation amount to passengers that had gone disrupted owing to rise of ash clouds (EU Business, 2010). Environmental The management body of RyanAir is continually investing billions of pounds to focus on reducing the level of carbon emissions by around 50 percent. The company is stilling facing complaints from European Union and other political factions stating it to be a high carbon-emitting company (BBC News, 2007). SWOT Analysis of RyanAir Strength RyanAir a low cost airliner is gaining increased popularity among vacation goers and business travellers in the European markets. The company acting effectively on its online platform gains the potential to expand its business and consumer portfolio. It also reflects the potential in running airlines rendering low-carbon emissions in the European region. Weakness The company owing to its managerial ineptness tends to face legal suits for not being effective in looking after the problems of passengers. Legal suits filed pertaining to its price misrepresentation and delay in reimbursement tends to dilute its brand image in the low-cost airlines market of Europe. Opportunity RyanAir in terms of economic and social developments of the people pertaining to the European region tends to gain hold of larger opportunities pertaining to increasing the passenger inflows. This increase in the passenger traffic would thus help the airlines enhance its revenue and market share in the European region. Moreover the enhancement of the online paradigm also helps the company gain the advantage of other companies collaborating with it to render services to consumers. Threat Regulatory climate of the European region is continually changing with rise in threat coming from the growth of terrorism and epidemics like flu and SARS. These changes in European regulations happen to render impact on disrupting its flight operations along the European region. Marketing Objectives of RyanAir Area1: Public Relations S-The company can enhance its public relation activity through the creation and enhancement of pages in social networking sites like Facebook and Twitter. M-This goal is measurable in terms of the number of visitor entries to pages of the company in social networking sites. A-This goal is easily attainable in terms of rendering potential contents and designing attractive web pages in social networking sites. R-Through the rendering of potential contents the company can work in enhancing its relationship with consumers and thereby also augmenting the level of brand association. T-Already having a web presence the creation of online pages via social networking sites can be conducted easily by RyanAir. Area2: Advertising S-Advertising needs to be conducted and broadcasted along the television, print and online media as a way of green washing its faulty image relating to environmental and customer care issues. M-This goal is measurable in terms of the increase in passenger traffic signifying reliability in the service provided. A-It is attainable in terms of highlighting its customer servicing image. R-It earns relevancy in restabilising its brand image as an effective low-cost airliner in the European market. T-This objective would need 2-3 months to get conceptualised and then to hit the consumer minds more evidently. Area3: Product and service portfolio S-RyanAir through the development of its web sphere can effectively gain collaboration of car-rental and hotels to help in enhancing the service rendering capacity to its consumers. M-It is measurable in terms of the percentage of passengers getting interested to procure gourmet cards to avail privileges while visiting hotels related to the airlines company. A-This service is attainable in terms of inviting complimentary services rendering concerns like hotels and car rentals to advertise their services via its web page contributing thereby to mutual gain. R-This goal earns relevancy in helping the company gain on marketing revenues from its own and other complimentary services. T-This goal to earn success would need around a year to develop potential contacts with other hospitality services companies to help convince them to work in a collaborating fashion. Area4: Enhancement of networks with airports S-This goal can be achieved by the company through incorporation of the hub-and-spoke model in its service dimension. M-This goal would help the airlines company gain hold of larger markets and consumers along regional markets. A-Its attainable on the ground that RyanAir works in a centralised fashion to jointly work with other regional airports in an integrated fashion. R-This distribution and location enhancement goal would help the company gain in larger consumer traffic and revenues and would also enhance the security framework. T-Owing to the level of complexity involved the implementation of such process would require around two to three years earning success. Marketing Strategies for RyanAir Two specific marketing strategies that gain effectiveness pertaining to low-cost airlines operating in and around the European region are in enhancing the focus behind the development and sustenance of niche consumer markets and secondly working to differentiate its position in relation to its competitors working in the larger market (Doring 2009, p.25-28). These two strategies taken into hold and analysed pertaining to the marketing activities of RyanAir generate the following inferences. Firstly RyanAir falling in the category of low-cost airlines justly fulfils the first criteria pertaining to the development of niche consumer bases. It generally renders no-frill services thus focusing to address the needs of passengers interested in short haul routes. However pertaining to the dimension of service differentiation the company needs to further adopt and enhance such through effective customer servicing ventures. The above strategy would help the company gain on a larger market share in the competitive low-cost airlines market and thereby help in enhancing on brand association and enhancing market revenues. Marketing Programs Pertaining to the adoption of the Differentiation strategy the low-cost airlines company, RyanAir is required to effectively conduct five main marketing programs as listed underneath to gain productivity in terms of market revenues and market shares. Marketing Action1: Firstly the company needs to extensively work in brand enhancement ventures through the social networking sites like Facebook, LinkedIn and Twitter to gain hold of a larger number of people. Through this activity the firm can focus in getting frequent feedbacks from the people pertaining to the level of service offerings and can thereby modify them to enhance their likings. Such activity would help the company in rightly differentiating its brand image pertaining to other like competitors. Marketing Action2: In addition to working based on its social media marketing venture, RyanAir can also focus to enhance its network via the effective incorporation of other like hospitality ventures relating to hotels and car rental companies. The airlines company can work in the generation of gourmet cards through the use of which the passengers can gain enhanced privilege pertaining to their visits to such hotels in terms of reward points and the like. These reward points can then be subsequently reimbursed by the people in their next flights using RyanAir airlines. Marketing Action3: RyanAir to address the growing needs of vacationers and other short-haul route passengers can work in increasing the number of fleets. This increase in the number of fleets would certainly help the airline company in meeting the increase in consumer traffic pertaining to certain occasions. Marketing Action4: RyanAir can effectively integrate the hub-and-spoke model to help enhance its services pertaining to baggage checking and customer servicing pertaining to different airports while acting in a centralised fashion. Marketing Action5: Other than helping the consumers reserve seats in airlines acting on the online paradigm, RyanAir can also work in the delivery of tickets purchased by the consumers from its complementary concerns pertaining to hotels and restaurants. References BBC News., 2007. Ryanair hits back in 'green' row [Online]. Available at: http://news.bbc.co.uk/2/hi/uk_news/politics/6233019.stm. [Accessed 26 July, 2012]. Bearne, S., 2010. Ryanair takes first steps into social media. Marketing Week [Online]. Available at: http://www.marketingweek.co.uk/ryanair-takes-first-steps-into-social-media/3011515.article. [Accessed 26 July, 2012]. Doring, D., 2009. The “No Frills” Strategy of Low-Cost Carriers: And Their Impact on the Regional Economical Importance of Frankfurt Hahn Airport. United States: GRIN Verlag. EU Business, 2010. Ryanair U-turns on reimbursing travellers [Online]. Available at: http://www.eubusiness.com/news-eu/iceland-volcano.48n/. [Accessed 26 July, 2012]. Hagele, K., 2006. Marketing Plan for Ryanair. United States: GRIN Verlag. Hoffmann, S., 2007. The Low-Cost Airline Ryanair: A Critical Evaluation of the Ryanair Phenomenon and Its Future Prospects with Taking the European Airline Industry Into Consideration. United States: GRIN Verlag. Mayer, S., 2008. Ryanair and Its Low Cost Flights in Europe: Marketing Plan. United States: GRIN Verlag. Rush, J., and Ottley, M., 2006. Business Law. United States: Cengage Learning. Read More