Ryanair's Marketing Communication Plan - Term Paper Example

 Introduction At the very heart of the success prospects of any business entity lies in its ability to be able to come out with a strategic policy that can create an accessible bridge between the business organization in question and its clients. The process of developing such a policy entails an enormous amount of significant pre-planning running into the main planning process to be eventually translated into all segments of the implementation. It is in the light of this that this report will seek to conduct an exhaustive analysis of Ryanair, a major player in the low cost airline industry. Arguably, in its ambitious quest to achieve and maintain competitiveness in the airline industry Ryanair is zealously exploring as well as exploring its options in a bid to capture a significant percentage share of the low cost airline market. At present, a survey of the capitalization of Ryanair reveals that the company is occupying a modest share on the market ranking. The potential for growth however remains exclusively enormous. It is therefore against this background that, this report will analyze the marketing policies of the airline with the aim of highlight the main sections of the marketing policies of Ryanair that have proven successful whilst also pointing out ways to smoothen the rough edges, as part of the process of driving its corporate success agenda. The advent of low cost airline services unto the market was originally intended to serve a number of purposes among them includes the provision of budget fares for the numerous low and middle income travelers whilst also enhancing profit for the operators in the industry. By the tenets of this report, management of Ryanair are envisaging the coming years as latently wrought with the capacity for them to capture the commanding heights of the economy in view of the marketing policies that will be implemented. The Ryanair Company is headquartered in the city of Dublin in Ireland with a long record of providing the needs of customers with low fares to travel to a number of destinations across the Americas, Africa and Europe (Calder, 2002, Creaton, 2007). The airline has a total stock of one hundred and sixty eight aircrafts plying all the routes the company operates. In the 1990s the company enjoyed tremendous success largely due to the thriving capacity of the low cost business model. Unfortunately, in the last few years Ryanair has come under increased media lambasting for alleged inefficiency in service provision (Mulligan, 2008, Creaton, 2007). There is no doubt that this unpalatable media propaganda about the lapses in the operations of Ryanair is threatening to exacerbate the dwindling fortunes of a potentially successful company in the wake of stifling competition in the low cost airline industry. It is against this background that management have committed themselves to the goal of reversing the tide of negative publication against Ryanair through a comprehensive media communication plan to be implemented in the 2009 business year. Any attempt to turn the tide around should begin from the development and implementation of a comprehensive marketing communication plan. It is therefore on this reason that this report has identified the thrust of any positive change will depend on how the communication plan will perform; consequently the bulk of this report deals with the subject of the marketing communication plan. Ryanair understands that the process of realizing the comprehensive marketing goals enshrined in the marketing strategy of the company should be hinged on the communication plan; it therefore becomes imperative must for the communication plan to reverberate amongst its global clientele base. Failure to respond to these anomalies places the company in an uncomfortable risk zone of being pushed out of business by the contemporary challenges of the twenty first century. This report therefore borne out of a broad based consultation exercise, Ryanair’s immediate formal marketing quest is to target low and medium income earners, civil servants, students and seasonally unemployed people. For good reasons the current recession in the global economy as predicted by the World Bank is expected to run into the whole of 2009 into the early parts of 2010; the effects of the economic slowdown is definitely a rapid drop in income levels which will compel people to opt for low cost flights to serve their traveling needs. Theoretical Background of the Report According to a recent survey, it was observed that almost seven out of ten new products introduced unto the market fall out during the first eighteen to twenty four months after its introduction. In the light of these findings it is definitely evident that there are serious flaws in the marketing campaigns of contemporary corporations. This report therefore has the goal of critically analyzing the core factors that have been overlooked for such a very long time resulting in a complete mistrust for new products and services in the minds of customers. The report will also look at begging questions such as those that requires the critical consideration of researchers before leading the way into the market arena. In a monumental study, Page (1993) exhaustively discusses the changing dynamics inherent in the success or failure that a firm experiences as part of the process of introducing a new product or service unto any market. A basic premise of this study is the normative analysis of success or failure from the view point of the firm. Stated differently, a firm’s judgment of success or failure is a direct product of the expectations of the producing firm in relation to the general performance of the product or service on the market. Drawing an inference from Page (1993), it is acceptable to peg success or failure of any product or service to the establishment of realistic expectations. The good news however is that in the last few years the high trend of new product and service failures is steadily declining. Of course there are reasons to explain this new emergence, with a most possible factor being the fact that because modern corporations are now towing a safety line in their bid to launch new products on the market. Irrespective of how this is viewed, one thing is certain, there is a steady decline in the level of innovation that accompany new product development. Executives are restricting the risk component to the corridors of the traditional line and brand extension because the minimum perceived level of risk it presents. In what follows, there will be an analysis of the real contending issues as they are presented. A major draw back to the process of adding new services to existing ones can be attributed to the visibly lack of exclusive uniqueness in the development and implementation of packages in the service industry. Suffice to cite computer software industry as a shining illustration of this guilty. Despite the rugged competition between the main players in Silicon Valley, a significant number of the products introduced on the market were not just very dull but also terribly unappealing to customers of all segments of the market. Taking note of this weakness, Apple Computers Inc wasted no time in translating it into a market advantage with the introduction of its brand of iProducts that have caused a significant stir in the software media players industry. Notwithstanding the long delay, there is still a very disturbing time lag in the area of response from its competitors vis-à-vis the quest for innovation. Apple Computers have carved a formidable reputation for its solid commitment to innovation at all levels of its business practice. It has especially identified research and development as a driving key to the quest for technological input advancement that can facilitate sustainable new product development and eventually achieving market supremacy. The ripples of the September 11, 2001 terrorist attack on the World Trade Centre transcended beyond the corridors of political and national security questions for the United States Government. Considering the fact that the orchestrated attacks used airlines to implement their arsons sent very chilling signals that negatively affected the airline industry. Industry experts estimate that the airline industry underwent a reduction of almost twenty percent following the waves of attacks that were carried out in New York. Hit by this reality as the industry was struggling to recover from the devastating effects the attacks brought on the industry, then came other related developments such as the Middle East political instability and the hike in oil prices on the global market resulting in yet another reduction in airline traffic across the world as opposed to earlier projections made about the growth potential of the industry. Another significant feature of the aviation industry lies in its contribution to the overall total output of the economies of leading destinations in Europe and the Americas. Notwithstanding the turbulence in the industry, experts are predicting a dramatic consistent annual rise of 3.4% growth that will run into the 2015 fiscal year. This figure is expected to be doubled in Europe by the close of the 2015 fiscal year, taking cognizance of the fact that the industry contributes to 10% of the GDP of Europe. The airline industry is so diversified that dealing into the specific details of all the diverse facets of the industry will be complicated partly because it is beyond the scope of this essay to do so. Much of the thrust of this work will be centered on the low-cost wing since Ryanair the main subject of discussion is within this category. The low-cost service component of the airline industry have inspired and driven a new dispensation of progress within the industry. It has stretched the activities of the industry to locations that were hitherto not considered viable for profit and above all reached a significant customer base that was also for many years not counted among the list of potential movers. With this feat the low-cost service providers have propelled themselves into a position of repute by taking hold of 40% of the traffic in the industry by the beginning of the year 2000 coupled with an estimated 43% of the market share. In many ways this success can be attributed to the deregulation policies that ushered in the low fare services with increased options to customers. Despite coming under heavy criticism from so many quarters Ryanair is reportedly making its fair share of gains in the industry because the company continues to make huge investments in the acquisition of new carriers with a corresponding increase profits despite the difficult economic climate under which they are operating. Put together the low-cost airline companies have being able to push airline prices down by almost 60 percentage points. The current financial crunch and its attendant woes have not left the airline industry unscathed. Ironically, crude oil prices have fallen so dramatically that major operators in the industry have lowered prices not just because of the fall of crude oil price on the international market but also due to an anticipated reduction in general demand for airline service. A challenge that is fairly attributed to the economic uneasiness that has engulfed the global economy; the 2009 fiscal year is however presenting new optimism for the industry. Responding to the Target Market To enhance the success of the marketing strategy, the first step begins on the premise of identifying the business environment under which Ryanair is operating alongside what the trends are today, in order to forecast what the future outlook appears for the industry. It should be noted that the main service offered by Ryanair is the provision of low cost airline services to various destinations. A survey geared at establishing a customer profiling indicated that the bulk of customers who patronize the services of Ryanair within the last few months include are people within the low income group; a fact that is already known, therefore eliminating the need to spend precious time to look at it. An important marketing strategy as described by Jess (2008) is to immediately recognize the type of customers and their relative frequencies in order to be able to come out with a comprehensive catalogue of the customer group to place on high target. In this sense therefore, the most obvious group to consider placing premium on are those within the professional domain. The wisdom behind this choice lies in the apparent reduction in general disposable income levels of customers. They are therefore more inclined to demand the services of low income airlines should the customer intend to make an unavoidable journey. The next most important element to be incorporated into the promotional strategy is based on how to make the services of Ryanair more appealing and distinctive. It should not be forgotten that there are other equally forceful players in the industry; to be successful therefore requires the use of deliberate strategies that will make its services unseat its competitors from their long position of dominance. In the first phase, the use of discounts to elicit customer attention should be vigorously pursued. This is based on the understanding that in order to attract the attention of customers, there should be a motivating reason to do so (Lake 2008). The discount period is envisaged to span the promotional period and also contingent with results obtained after the period. It will therefore be specifically defined by the service and their respective individual discount rates. Of particular note to this strategy is the fact that the discount will also lay heavy emphasis on trigger offers. Trigger services have the highest propensity of swelling up sales and boosting annual turn overs ( Mann, 1997). Another important dimension of the strategy is the deliberate framework of the promotion. The essence of this provision is to ensure that the promotional framework is carried out in a very realistic manner that will not only be successful in the short term, but also sustainable in the long run. To this end, Ryanair must take full ownership of the campaign. It is equally important to work on boosting the publicity of the promotional campaign. Consequently, a radical media campaign will be carried out simultaneously in order to draw massive public awareness on the new path Ryanair is charting. Conclusion This marketing promotional campaign as presented above is the comprehensive market revolutionizing blue print for Ryanair as it drives towards improving its overall market capitalization in the food industry. The Role of the Marketing Communication Plan within the Marketing Program To achieve the stated marketing goals of the company, the following elements of the marketing communication plan is being highlighted as part of the process that will lead to the achievement of these goals: The primary mission of the communication plan is to generate and sustain awareness about the innovative ingredients contained in the customer service package for the medium to long term framework. Aggressive promotional materials that will purposefully address the customer’s needs as an integral component of the operations of the company. The plan will also allow for the efficient location of relevant customer information. For the 2009 fiscal year, there will be considerable attention on such vital issues policy decisions, facilities, the introduction of new services, online platform for the discussion of enhancing marketing programs. Whilst pursuing these provisions, the communication plan will encourage continuity in the current list of workable marketing strategies that have served customers well in the last few years. It is expected that by so doing, the platform will be created to usher in the communication plan using a workable coordination of marketing activities. Objectives of the Marketing Communication Plan The strength of the communication plan lies in its ability to explicitly identify and recognize the following foundational objectives as the key to the success of the marketing policies of Ryanair. To positively impact on the attitude of its discontented customers with the view of attracting new customers; To be able to reach out to approximately 80% of air travelers within and outside Europe with the message of innovation in our transforming company; To create the enabling environment through incentives in the marketing strategy to boost the attractiveness of Ryanair to customers across the world. Message Strategy The increasing demands of the business climate in the twenty first century are characterized by tough competition brought about by globalization and its attendant effects. It is based on this realization that Ryanair should be prepared to implement a strategy that is not only consistent with its core values but also placing it one step ahead of its main competitors as part of the drive to satisfy their traveling public. The following factors listed below are of paramount importance to the strategy that defines the communication plan. I) Message Peculiarity Essentially, the marketing communication plan is conspicuously going to highlight the value placed on each customer through enhanced service delivery, user friendly information data base for customers, investors and other interested stakeholders. The company’s visual image and identity will be used in all communication materials in a fashion that is consistent with the company’s communication policies as stated in the stylebook. There will also be an internal mechanism that will allow for innovation from departments and employees liaison with the Marketing and Public Relations departments as part of the drive to address the marketing needs of the company. III) Media Relationship Ryanair should pursue a multifaceted approach in its media relationship using wide assorted mediums such as electronic and publication message propagation, sustainable marketing and advertising strategies etc. Over the years the company expended so much energy in being reactive to unpleasant media publications, there should be a complete paradigm shift in this policy to give way to a more constructive and proactive methodology. Within the framework of this new strategy, the relationship between the company and the media institutions both at home and abroad should be built on the publication of news items that have a direct connection with the goals, values and mission of the company. In addition, Ryanair should implement a method that allows for an online data base software to keep a detailed record of all news publications and their respective reporters and press houses. In doing this, it is expected that there will be a firm relationship between the company and the media institutions. It also has the added advantage of facilitating the process of monitoring and evaluation of the policy’s success or other wise within the context of the communication plan. Target Audience The Marketing Communication Plan of Ryanair is designed to produce a self-regulatory feedback that will be generated from the target audience through a series of activities and strategies. Management within this context needs to be fully aware that the company serves a whole variety of customers from a variety of social dispositions and demographic groups. To this end, the communication plan needs to be an all-encompassing integrated policy that will not leave any part untouched. It should be admitted that within the short term framework the plan should target customers within the low income group, believing that in the near future the plan will be expanded to reach the groups that are outside this domain. Inasmuch as it is absolutely necessary to have a wide target group the emphasis is being placed on the low income group customers for the reasons given below: They by far constitute the greatest lump of our customer base; Low income earners are more conditioned to seek for low fare tickets should they consider traveling by air; The global economic recession has hit so hard that the real income levels of most people have being eroded thus increasing the total number of people who will be potentially be grouped under the low income group. • Creating a comprehensive marketing plan that addresses effective ways to reach low income level customers will also serve to help the company in its bid to reach its other audiences moreover going for a particular target group is an integral part of marketing activities within a time scheduled arrangement. Campaign Execution The successful execution of the marketing communication plan of Ryanair requires a well consented collaboration between all sectors of the company. It is also crucial to gain the confidence of stakeholders thereby roping them into the early stages of program down to all aspects of the implementation stage. Team work is a requirement that can never be compromised granted the plan will have to succeed. In order words through out the implementation stage the plan should be accepted and implemented internally within the company before selling it out to the public. The marketing department also has crucial role because of the frontline role it occupies in the company’s overall marketing agenda; thus making their involvement highly imperative. Marketing executives ought to keep senior executives within the plan as part of keeping track of the plan at all levels of the implementation stage. It is also necessary to point out that the main publicity gear will be set in motion as soon as the year begins. The publicity process should begin on a modest scale to pick up steam as the year progresses and also based on the intermittent feedbacks generated. As part of the process of carrying out a sustainable implementation program it is prudent to identify a specific element within the target group so as to ensure a consistent view of the implementation process (Onkvisit, 2008). Doing this has the advantage of creating the platform for the transmission of timely indicators contained in the feedback process. Ryanair should choose an accessible travel and tour agency that has a solid experienced in the low fare industry to partner it in the communication plan. The choice will be carried out in each of the main routes that Ryanair operates; on the basis of this relationship there can be contact between the customers on the one hand and the company on the other hand. Ryanair is fully aware that the feedback that will be generated will be both negative and positive. The company must therefore give equal premium to both the negative and positive feedback that will be generated based on the realization that whilst it is imperative to highlight the positive feedback generated there is also a compelling need to view the negative feedback as an open-ended opportunity to smoothen all the rough edges in the customer service delivery package through effective marketing. In a related work Callan (2006) proposed the following factors stated below as the main forces that will influence the process of selecting a specific section within the broader target group in order to achieve positive record in the implementation of the communication plan: Identification and nurturing some early adopters that are responsive and in tune with the dynamics of the industry; It also necessary to target and deal with experienced players in the industry; target some high-status researchers; charge them to spread the message to their colleagues. In many ways the marketing communication plan of Ryanair is in harmony with the description presented by Fill (1999) that fundamentally the communication plan will highlight “all strategies, tactics, and activities involved in getting the desired marketing messages to intended target markets, regardless of the media used." 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