marketing and business development plan

1. Ryanair-British Airlines Alliance
Karim Ghazal

2. Introduction
• Ryanair is the largest European airlines founded in 1985
• Ryanair vision is to become Europe’s favourite airlines and
its mission is to offer low cost services with the lowest
operation cost
• Ryanair is planning to expand to USA and to major airports
to utilize new purchased aircrafts
• Ryanair long term plan is to build strong holding company
with diversified subsidiaries
• Ryanair achieved high efficient and cost effectiveness
operation model through innovation
• Ryanair adopt lean philosophy through targeting second-
tier airports, single type of aircraft, short routes and quick
turnaround

3. Introduction
• Ryanair adopt 3rd party contractors to provide airport
services (check in- fuel- baggage handling)
• Ryanair Operation cost in 2016 was 4.16 Billion serving
81.4 million passenger
• Ryanair has less customer focus based on passenger to
employee ratio 9700
• Ryanair has a full size training setup with four Boeing 737
simulators
• British airways operation cost in 2016 is 17.9 Billion
serving 67.2 million passengers
• British airways fleet size in 2016 was 457
• British airways shows high customer focus based on
passenger to employee ratio 1118

4.  SWOT Analysis for the Alliance
1- Strengths:
• Cost –Leadership (Ryanair)
• Operation Cost effectiveness (Ryanair)
• Punctuality (Ryanair)
• Quick turnaround time which improve utilization (Ryanair)
• High employees productivity (Ryanair)
• User Friendly booking website (Ryanair)
• Comprehensive ancillary services (Ryanair)
• Frill flights (British Airways)
• Long-Haul Flights (British Airways)
• High Customer satisfaction (employee to passenger ratio) (British Airways)
• Business and corporate travelers (British Airways)
• High Supply chain bargaining power (Alliance)
Strategic Scenario 1

5.  SWOT Analysis for the Alliance
2- Weakness
• Only short-haul point to point / lack long –haul
Experience (Ryanair)
• Low customer focus/satisfaction (Ryanair)
• High operation cost (British Airways)
Strategic Scenario 1

6.  SWOT Analysis for the Alliance
3- Opportunities
• Growing demand of global tourism
• Growing demand for LCC (low cost carriers)
• Target dual segments (Business –Economy)
Strategic Scenario 1

7.  SWOT Analysis for the Alliance
4- threats
• Expansion of fast railways
• Impact on Ryanair brand image as a low cost carrier
• Impact on British Airways brand image as a premium flights
• Impact on operations model
Strategic Scenario 1

8.  Alliance Pros and Cons
1- Pros:
• High supply chain bargaining power (800 craft-150 M vol)
• Target new customer segments , business and corporate
travelers through Ryanair and low budget travelers through
British airways
• Matching with company strategy to provide long-Haul flights
to main cities and to north America(Ryanair)
• Utilize the new set of aircrafts through long-haul, major cities
flights
• High access of British Airways to major airports and availability
of ground staff (check-in, fuel and landside operations)
(Ryanair)
• Utilization of Ryanair training center and Boeing 737
simulators (Ryanair)
• Improve customer focus/satisfaction (Ryanair)
• Optimize operations cost (British Airways)
• Improve Employee productivity (British Airways)

9.  Alliance Pros and Cons
2- Cons:
• Increased operations cost of long-Haul ,major
cities flights due to increased turnaround time
which will reduce utilization (Ryanair)
• Impact Ryanair Brand Image as low cost flights
• Impact British Airways brand image as high
quality frill flights
• Impact customer focus/satisfaction (British
Airways)

10. Strategic Portfolio
Phase I Phase II Phase III
• Business Travel
• Economy Travel
• Tourism Company
• Cargo
• Aviation Academy
(Training)
• Business
Consultation
• Airport services

11.  Phase I
1- Economy Flights (Short- long haul)
• Business Rationale : High demand on low cost carriers
• Leverage points :
- Growing Demand on Tourism
- Growing demand on studying abroad
• Product attributes
- Low fares
- Secondary airports
- One way ticket
- Limited Baggage
- High safety
- Reliability
- Paid ancillary services
Strategic Portfolio

12.  Phase I
2- Business Flights (short and long Hauls)
• Business Rationale : the legacy and ability of British airways to provide frill flights
• Leverage points :
- Global trade (business and corporate travel)
• Product attributes
- Frill flights
- High quality
- High customer focus
- Better baggage policy
- Major cities and airports
Strategic Portfolio

13.  Phase II
1- Tourism (Subsidiarie)
• Business Rationale : generate revenue from Ancillary services
• Leverage points :
- The need of travelers to other services during travel to be
provided from one side
• Product attributes
- Visa service
- Hotels
- Limousine
- Car rental
- Sigh seeing
- Tourism programs and packages
Strategic Portfolio

14.  Phase II
2- Cargo
• Business Rationale : alliance accessibility
to many primary and secondary airports
• Leverage points :
- Growing Global trade
• Product attributes
- Variable destinations
- Major and small cities and airports
Strategic Portfolio

15.  Phase III
2- Aviation academy-Business consultation-Airport
services
• Business Rationale:
- Make the best use of company resources (knowledge- Know-how- expertise) to serve
the alliance and external bodies and build a consistent revenue stream
- Avoid Seasonality
- Achieve company’s strategy to establish subsidiaries under a big holding company
• Leverage Points
The need for operation cost optimization in aviation industry to overcome economic crises
• Attributes:
-Training for pilots-cabin crew-airport staff
-offer consultation on operation cost optimization for different airlines
-New company for airport ground services to serve the alliance and external airlines
Strategic Portfolio

16.  Eastern Europe Market:
1- According to the UN ,eastern Europe consists of 12
countries such as (Russia, Czech Republic, Hungary and
Ukraine)
2- Eastern Europe known as ancient Europe and characterized
with sight seeing and considered as tourism destination.
3-the economic growth of Eastern Europe is below the
average global growth
5-Eastern Europe has lower income level with higher poverty
rate compared with western Europe with
6-Population of Eastern Europe in 2019 is 293.4 Million
7- Age group between 20-35 years old represent 20% of the
total population
8- Number of tourisits in Eastern Europe is expected to
increase from 44 million to 90 million by 2022
Strategic Scenario 2

17.  Eastern Europe Market:
Strategic Scenario 2

18.  Strategic Decision:
Extend Fleet capacity under the same brand Ryanair Airways
• Strategic rationale:
- Benefit from The legacy of Ryanair as a low cost carrier rather than starting a new
brand
- The same business model (Lean Strategy) of Ryanair will be applied in Eastern Europe
- Achieve company’s objective to be the European leader in low-cost airlines
• Business Drivers:
- Low economic status and income level of eastern Europe
- The demographics of eastern Europe (20% aged from 20-35)
- Eastern Europe is considered as one of the global tourism and sight seeing
destinations
• Validated Concerns :
- No Airport hub for Ryanair or British airways in Eastern Europe
- Legal requirements needed to operate in eastern Europe Airport hub for Ryanair in
Eastern Europe
- No Contracts with sub contractors in eastern Europe to provide airport services.
Strategic Scenario 2

19. 1- Market Access Methodology
• Strategic decision
-Acquire a new hub in Eastern Europe
-fulfil the legal and regulatory requirements for operating in Eastern Europe
-Contract sub contractors to provide landside airport services
• Business Rational
-Hub will enables Ryanair to provide point to point flights
-Maintain the same lean model by outsourcing airport services
• Business Implications
-Offer low cost (Fair fares) flights in eastern Europe
-Be the leading 5th airline across Eastern Europe by 2021
Strategic Scenario 2

20. 2- Branding And communication
framework
• Strategic decision
-Target Audience : Age group 20-35
-Channels: online social media- Offline universities, clubs
-Message: low cost-fast flights for young travellers travelling for
tourism or study
• Business Rational
- the mentioned age group matching with Ryanair strategy.
• Business Implications
-Offer low cost (Fair fares) flights in eastern Europe
-Be the leading 5th airline across Eastern Europe by 2021
Strategic Scenario 2

21. 3- Launch brand positioning
skeleton
• Strategic decision
-Brand Positioning : For young travellers in Eastern Europe
looking for low cost flight, Ryanair offers fair fares flights
with high punctuality, safety and flexibility
• Business Rational
-according to market analysis of eastern Europe the
mentioned age represent a very potential segment for low
cost flights
• Business Implications
-Offer low cost (Fair fares) flights in eastern Europe
-Be the leading 5th airline across Eastern Europe by 2021
Strategic Scenario 2

22. 4- Tactical Marketing plan
• Online and offline Launch events in Social media, Clubs,
Universities, Malls.
• Social media campaigns through travel bloggers and
influencers
• Full Packages for honeymooners, students, etc to travel
for vacations
• Program with ministries of tourism in eastern Europe
countries to encourage tourism travel and cultural
exchange as a source of income for those countries
• Loyalty programs to improve customer loyalty/retention
Strategic Scenario 2

23. 4- Tactical Marketing plan
• Partnerships :
- Corporates and governments to offer frill flights through
the Alliance
-Sports federations and clubs (football,handball,etc) to
transfer fans and supporters for sport games and events
with low cost flights and full packages including visa,
hotel, transportation, match tickets
-Universities and students associations to transfer
students who studying abroad or for cultural exchange
programs
-Tourism companies to offer full packages of services
-Hospitals to support medical tourism
-Banks to offer payment plans for students, sport fans
who wants to travel
Strategic Scenario 2

24. Thanks