Ryanair Marketing Analysis - Case Study Example

Ryanair Marketing PESTLE Analysis Let us conduct an analysis on the external environment to the firm to position it accordingly. Ryanair is a European airline with the comparative advantage of offering the lowest airfares. It operates under considerably favorable market conditions, which can be analyzed from the fact that around 1600 flights are operating under the flight everyday carrying over about 500,000 per year. Political The airline isn`t just limited to one particular state, rather operates in 30 countries, this every country poses certain political implications on the business. However, the airline has the comparative political advantage of having a financial power owing to which it can enhance its profits, implying that distancing itself to full service peers ought to enhance the profits. Economic High oil prices and Europe wide economic recession resides in the external environment, which indicates can competition is going to get fierce in the future. Moreover, the airline has economic advantage of offering low rates to routine travelers not carrying much luggage, which implies that they`ll be saving money by exploiting this airline. Also, a new class of services are being introduced to the airline to further impact the market and own a comparative advantage over its competitors. Social Branding and image building of the Ryaniar airline is at stake, since there is bad word of mouth in the society against the airline. The airline marketing staff lags behind in developing strategies to gain trust of the market audience, instead relies of cheap publicity such as adding additional charges on using the toilet facility. Also, it is a known fact that the population of ageing population is increasing by the day in Europe. Moreover, it is also a known fact that the increasing singles in the population also calls for certain alterations to the policies of the company. Technological The airline is lagging behind in terms of technological advances, especially in context to the information technologically which is the need of the time, especially for businesses like these. There is no possibility of attaining airline information via email or website, which is a huge turn off as most of the tour planners worldwide now use this medium for research. The only way to reach out to the official Ryaniar staff is via premium charged phone line. More so, offering an internet facility in lounges and other points is also crucial to the business class travelers who have to be in communication with the world at all times. Legal The airline offers a low air-fare to its customers, yet it poses unforeseeable charges on other airline services which may turn out to be a legal implication later for the company. Since the company policy doesn’t see to highlight on the charges earlier, the customers may sue the company for blindfolding them. Thus, the company may have to face legal issues pertaining to the fact in the future. Environment Global Warming has been impacting the environment, causing certain change in weather at all vacation spots. Thus, service packages need to be introduced accordingly, keeping the environment in mind. SWOT Analysis: Based on the PESTLE analysis of the airline in context to the external environment, a SWOT analysis can be conducted in order to better position Ryanair in the industry analysis. Strengths: Ryanair has the comparative edge on the pricing, as the airfares are lower than any other airline functioning. Also, this is the only airline serving the needs of those who travel often, without much luggage. More, so given the sociological circumstances it also suits the needs of single men and women looking for a cheaper airline. Weaknesses: There is a bad word of mouth in the industry regarding the Ryanair Airline, owing to which the competitors can find an opportunity to take advantage of. In addition to that, it charges extra money for luggage and other additional airline facilities, which can be a hurdle in the long term. The company is slow in adapting to technological advances which can make it go out of business in the long-run. There may be legal implications on Ryanair due to unforeseeable charges as the uninformed clients may file a lawsuit Opportunities: Ryanair already has a reputation of offering cheaper services Brand name and brand loyalty has been developed, giving an edge over competitors Those who travel the most find this airline the most suitable one for their needs The changing demographics in Europe can prove be quite an opportunity The changing Global Climate can also prove to be an opportunity Challenges: Technological advances are a huge challenge to Ryanair, where others are quick in adapting and this airline lacks the basic infrastructure Tax increases due to oil prices leading to recession is a huge challenge Customer base is changing by the day, calling for innovations Lawsuits are unpredictable, may cause financial concerns in future Marketing values and techniques are changing with time Marketing Objectives: Given the SWOT analysis (Jacoby 2011), marketing objectives need to be identified, for which a SMART analysis may be conducted; Specific The word of mouth regarding Ryanair must be considerably positive by the end of next year. Measurable The Airline needs to acquire around 13 m new passengers this year, particularly those who travel with luggage i.e. the vacationers Actionable The targets must be communicated to the marketing teams in all 30 years, i.e. to market the plan extensively to the segment where vacationers lie Realistic Offer realist vacation plans, considering the weather change owing to global warming, for vacation spots Time-related Develop and adapt to the latest technology, and market effectively the innovative technology designs to communicate the message that the company is opening up to timely technical tools Marketing Strategy Alternatives Given the circumstances; two kinds of strategies may be designed for the company to adopt i.e. 1. Market Vacation Packages: This Package includes effective marketing plans keeping the needs of honeymoon couples or family vacations in mind. For the purpose, marketing teams can liaison with resorts as well, after which brochures and flyers may be distributed aggressively to appeal to the new segment of the market. However, the transparency of the rates must be communicated beforehand to avoid any discrepancies or bad word of mouth later. These packages must be customized to the customer`s need keeping the pricing competitive edge in mind, where the customer finds them irresistible. 2. Social Media Marketing: Since the company lags behind in terms of technology, utilizing the social media platform can prove to be an effective yet a cheaper way to market the airline. Extensively launching the company`s website, Facebook and Twitter page, alongside Youtube channel with a discount of the flights will help attain followers. More so, online competitions to win free vacations can be launched to create a hype in the audience, alongside a good word of mouth. With the right use of tools, and an effective social media strategy, the airline will definitely meet its new targets. In my view, the social media marketing strategy can prove to be more effective, as it will not only save time but also communicate a very effective message that the company is open to new ideas and welcomes criticisms from the customers. This way the customers will also be directly able to communicate to the company, which will act as a feedback to the company to alter their marketing plans accordingly. Marketing Action Plans Outlined below is a marketing plan to suit the needs of the airline; 1. Word of Mouth The airline staff must be trained to be extremely cooperative and reflect a positive attitude, to help promote a positive word of mouth for the company to attain more customers and a wider customer base 2. Launching the Website A grand website launch over multiple stations of the airline is crucial where all information must be updated and marketed properly to help the customers attain maximum amount of information 3. Social Media Marketing Facebook Page, Twitter Handle and Youtube Channel must be used for soft marketing of the airline, to help communicate the message that the company is open to two way communication 4. Launching Discount Packages Special discount packages must be launched to appeal to those planning their vacations, these packages must be customized to suit the needs of a wider customer base 5. Launching Vacation Deals The marketing team must come up with a plan to liaison with hotels and resorts, to offer an all inclusive, transparent trip deals to appeal to the customers planning their vacations. The pricing must be kept in mind, and a reasonable package must be created to suit the needs of the new customers base References: Jacoby, S. (2011). Never say die: The myth and marketing of the new old age. New York: Pantheon Books. Read More