Marketing of Ryanair Airlines - Case Study Example

Marketing of Ryanair Airlines Marketing of Ryanair Airlines Introduction Ryanair is an airline company Ireland that offers low-cost airline services across the globe. It has headquarters in Swords, Dublin, Ireland. Moreover, it offers it is operational services at London and Dublin airports. This report entails the marketing of Ryanair airlines incorporating political, economic, social, and technological (PEST) aspects, and it is significance in the external environment. The report also includes strengths, weaknesses, opportunities and threats (SWOT) analysis of Ryanair airlines. SWOT analysis presents an understanding of the marketing strategies that the airline operates within in the airline industry (Burrow, & Bosiljevac, 2009, p.78). The marketing strategies and programs of the airline contemplate in this report, to enable for a comprehensive outline of Ryanair airlines in marketing it is services across the world. External Audit of the Company The external audit of the company incorporates political, economic, social and technological factors (PEST). These factors influence external environment, pose threats and opportunities and develop impacts on business strategy and corporate objective as discussed in the table Political Economical Social technological External environment Ryanair on the external environment has been affected politically by over-taxation of natives for the construction of various airports across European Union. According to the European court of auditors, over the past 15 years, €666m has been taken from taxpayers pockets for expansion of airlines but many still lie unused and empty (Meager, 2015, p.1) According to Meager (2015), economically, €666m towards construction and expansion of 20 airports in Spain, Italy and Poland, auditors found at least seven not yet profitable and 28 percent of capital went to improvements not needed. This affected Ryanair economically, in its external environment, as it was unable to give full services to its customers because of injections of public money. Socially, Ryanair airlines have developed much in the external environment. Taylor (2015) confirmed that Ryanair firmed plans to offer transatlantic flights. This has boosted their social welfare across the globe especially with the external environment. Ryanair plans of increasing a series of new routes entail technological development in terms of system coordination. Moreover, the external environment is affected since Ryanair CEO Michael O’Leary (2013) increases more passengers to over 2 million with the development of new routes according to a report. Threats/opportunities to the company The use of Taxpayers money in increasing EU airports generates completion in airline industries, which creates threats to Ryanair airlines Economically, the airline develops opportunities for the expansion and construction of new airports since it will increase it is passengers traveling across the world. Socially, the company experiences new opportunities since, the expansion and construction of new airports give opportunities to new employees Technologically, Ryanair airlines experiences threats, since the company will have to compete globally technologically in the development of it, is services Impacts on the business strategy and corporate objective Political interference, influences Ryanair business strategy since the airline will have to comply with the new political challenges, influencing Ryanair business strategies either positively or negatively Economically, Ryanair airlines have high economic power especially, the plans of increasing airports. It positively effects business strategy to attain corporative objective of the company Ryanair social status on business strategy changes from the construction and expansion of airports across the globe by the European Union. This is because more passengers will mean changes in how Ryanair conducts it is business across the globe Technology changes the business strategies of Ryanair in terms of development and operations. It is corporate objective meets standards since more passengers will mean high collaboration with other airlines and therefore development in corporative objective SWOT Analysis of the Company SWOT incorporates strengths, weaknesses, opportunities and threats (Böhm, 2009, p.34). Ryanair SWOT analysis entails the examination of internal and external environment in process of strategic planning (Mortimer, 2015, p.1). SWOT analysis of Ryanair airlines is as categorized below: Strengths Ryanair offers low air cost across transatlantic flights, which makes it have many customers’ across Europe. Therefore, many passengers take Ryanair airlines because of low-cost air ticket emerging, as it is the strength since it can compete healthily among other airlines across the globe. Besides, low airline costs generated enable Ryanair airlines to operate transatlantic flights building up their strengths as an airline, since the operations enable them to compete fairly and make more profits across Europe (Mcloughlin, 2015, p.1; Maslen, 2015, p. 1). Therefore, according to SWOT analysis, Ryanair airlines strengths develop from their ability to offer low-cost air services that generate many passengers and hence making profits especially across transatlantic region. Weakness Ryanair Airlines offers airline services to a limited number of cities and towns in the world. It has not expanded it is services around the world incorporating this as the major weakness that affects Ryanair airlines. It can offer services to limited routes across the globe with limited administrative staff contributing to it are weakness across the globe (Bilotkach, Gaggero & Piga, 2015, p. 158). Opportunities Ryanair announced Germany as a significant growth market for it is operations. Moreover, it publicized it is intention to connect key German cities with major Europe centers as an opportunity they would like to exploit (Grewal& Levy, 2010, p.45). Besides, the plan tends to support 2000 jobs especially in Cologne. This movement creates more opportunities for Ryanair airlines as it increases customer base and the creation of new routes from Cologne to Berlin, Canaria, Porto, Warsaw and Valencia (Mcloughlin, 2015, p.1) Threats Threats faced by Ryanair airlines involve competition from other airlines across the globe. Other airlines continue to dominate the airline industry by creating new routes and improving their services across the globe such as Virgin and Emirates Airlines (Baines, Fill & Page, 2008, p.56). The two airlines pose major challenges to Ryanair airlines, developing major threats to Ryanair airlines across the globe. Therefore, stiff competitions from other airlines across the globe pose a major threat based on customer satisfaction and new developments in the airline industry. SMART marketing objectives of the company Specific, measurable, attainable, realistic and time (SMART) objectives of Ryanair airlines generate from SWOT analysis factors (Knuth, 2005, p.102). Moreover, four main marketing objectives that Ryanair airline can develop from SWOT include; be the best marketed airline within 3years across the globe, to grow their market share by 10 percent in major markets, to become the most recognized airline in the industry and finally, to offer services across the globe with 65 percent growth. Besides, SMART marketing objectives that the company may include in order to expand it is operations entails: Specific- the specific marketing objective of Ryanair airlines includes giving the best services to it is customers in the operational routes Measurable- measurable marketing objective entails 10 percent market share in major airlines within the industry Attainable- Ryanair has the ability to attain 65 percent growth on it is services across the globe Realistic- the realistic marketing objective of Ryanair airlines include the offering of it is services across the globe with an increase of 10 percent share in the market share Time frame- Ryanair anticipates being the most marketed airline within 3years in the across the globe. The marketing objectives of Ryanair airlines according to SMART allows for the expansion of the airline in terms of customer satisfaction across the world. Moreover, incorporation of marketing objectives gives an opportunity for the airline to grow and become one of the best airlines in the industry offering the best airline services. Therefore, it is important for Ryanair airlines to concentrate on SMART analysis since it enables them to survive competitively in the market and become the best airline in the world. Marketing Strategies and programs Ryanair airlines positions itself has a digital innovator as one of it is marketing strategies. This marketing strategy introduces the airline as one of the best features in bookings platforms and improves it is customer data services(Mortimer, 2015, p.1) Besides, new aircraft interiors will feature more destinations images alongside new cabin crew uniforms as marketing strategies for Ryanair airline. These marketing strategies improves customer base for Ryanair airline as it increases it is profits from the services it offers. Moreover, the airline served 90 million passengers in 2014, and with the new marketing strategies, it is expected to increase it is passengers to 100 million in 2015 (Taylor, 2015, p.1) Mortimer (2015) argues that the aim of the marketing strategies is to enable an increase in passenger carrying ability of the airline as it continues to offer it is services across the globe. Moreover, customers will increase since bookings online and new interior design attracts more customers to Ryanair services. It is important for companies to adopt marketing strategies to enable the expansion of customer base and attraction of huge profits. Additionally, marketing programs developed by marketing actions of Ryanair airlines include advertising, promotions, interior changes, gifts inside the plane and direct customer relations. These marketing actions increase customer contact period with Ryanair cabin crew, which enables passengers to feel comfortable with the services offered by the airline. Conclusion Marketing of Ryanair airlines has challenges developed from the external environment as well as benefits sourced from marketing strategies. However, good and well-developed marketing strategies enable for an efficient development in providing the airlines services that result in high profits. Bibliography Baines, P., Fill, C., & Page, K 2008, Marketing, Oxford, Oxford University Press. Bilotkach, V., Gaggero, A. A., & Piga, C. A 2015, Airline pricing under different market conditions: Evidence from European Low-Cost Carriers, Tourism Management, 47, p.152-163. Böhm, A, 2009, The SWOT Analysis, GRIN Verlag. Burrow, J., & Bosiljevac, J 2009, Marketing, Mason, OH, Southwestern Cengage Learning. Grewal, D., & Levy, M 2010, Marketing, Boston, McGraw-Hill Irwin. Maslen, R March 10, 2015, Ryanair Smells Success in Cologne Market, Routes Online, Retrieved March 12, 2015 from http://www.routesonline.com/news/29/breaking-news/247698/ryanair-smells-success-in-cologne-market/ Mcloughlin,G, March 11, 2015, “Ryanair: Airline Says It Will Increase Passenger Numbers By 2 Million Through New Cologne Routes, Independent.ie, Retrieved March 12, 2015 from http://www.independent.ie/business/ryanair-airline-says-it-will-increase-passenger-numbers-by-2-million-through-new-cologne-routes-31054506.html Meager, L, March 6, 2015, “Europe’s Dead Airports: A Big Waste of Taxpayers’ Money, Journal of the Voice of the Market”, World Finance, Retrieved March 12, 2015 from http://www.worldfinance.com/home/europes-dead-airports-a-big-waste-of-taxpayers-money Mortimer, N March 3, 2015, “Ryanair Eyes "Digital Innovator" Status as It Ramps Up Data and Personalization, The Drum, Retrieved March 12, 2015 from http://www.thedrum.com/news/2015/03/03/ryanair-eyes-digital-innovator-status-it-ramps-data-and-personalisation Taylor, I March 9, 2015, “ Ryanair Confirms It’s “Considering” Transatlantic Flights”, Travel Weekly, Retrieved March 12, 2015 from http://www.travelweekly.co.uk/articles/2015/03/09/53399/ryanair-confirms-its-considering-transatlantic-flights.html Read More