Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
 Introduction to easyJet
 Factors affecting the airline industry
 SWOT
 Strategies of easyJet
 Recommendations
 Conc...
 British budget airline, 2nd largest low cost
carrier in Europe
 Founded by Sir Stelios Haji-Ioannou in 1995
 Part of E...
 Serves major airports in key markets
 Targeted market segment
 Business travelers due to high frequency of flights
and...
 Strategic priorities:
1. Safety
2. Building Europe’s No 1 AirTransport Network
3. Develop a winning customer proposition...
 Strategic priorities:
1. Safety
• Flight management data
• Safety management system
2. Building Europe’s No 1 AirTranspo...
3. Develop a winning customer proposition
• Arrive at destination within 15min of scheduled time
• Tailored marketing emai...
 General factors affecting strategies and
decisions within airline industry
 Market demand
 Competitors
 Fluctuation i...
 Market Demand
 Increased demand for air travel due to:
▪ Reduction in air fares
▪ Increased in average incomes
 Significant increase in short haul travels.
Increase to
187million
 Competitive Market
▪ Cannot influence on-going market price
 Travelling considered as luxurious good.
▪ Demand is elast...
 Competitors
 Presence of competitors offering similar products
 Comparison of price can be done easily through
internet
 Fluctuation in oil prices
 Due to instability in middle east, influence of
cartel
 Oil resource drying up
 Increases in oil prices will increase
cost of production
 Erode profit margin
 Consumer have to pay more
 Threat from terrorism
 Fear of flying
 May avoid air travel until psychological shock is
overcome
 E.g.
▪ Bombing in ...
 Epidemic / Natural Disaster
 SARS (November 2002)
▪ Fear of being contracted
 Volcanic ash cloud over Europe (April 20...
 Government regulation
 Environmental degradation becoming a major
issue
 Increase in emphasis on sustainable developme...
 Dynamic Pricing
 Adjust prices continually when flight date nearing
 Promotional Pricing
 Temporary reduction of pric...
Strengths Weaknesses
Opportunities Threats
easyJet
 Flies to primary airports
 Convenience for business travellers on tight
schedules
 Low cost offering
 No frills airli...
 Ease of booking flights
 24/7 Internet booking
 Phone booking(slowly phasing out)
 Fast turnaround time of aircrafts
...
 Highly distinctive branding
 Featured on Airline TV series, spread name in UK
 Bright orange colours
 Catchy slogans
...
 High-density seating
 Discomfort for passengers during long
distance flights
 Hassle in changing bookings
 Top up dif...
 Weakening Pound against Euro
 Increased demand in travel from
European countries to Britain
 Cater more flights
 Risi...
 Brand names
 Easy to copy
 Confuses customers
 Damage the brand name
 Competitors
 Ryanair
•Europe largest low-cost carrier
in terms of market share
•Fly to secondary airport
 Air Berlin
•...
 Alternative modes of transport
 Eurorail - Trains
 Comparable duration and price for
short distances
 4 Ps
 Place
 Promotion
 Product
 Price
 Other strategies
 Place
 Online booking website
 Telephone booking
 Promotion
 Internet business model
▪ Slowly phasing out telephone sales operation
 Aggressive branding
▪ Bright orange...
 Product
 Offers one-way tickets for passengers
▪ Flexibility of travelling
 No frill experience
 Price
 Good-value pricing – right combination of quality
and price
▪ Everyday low pricing
 Due to cost advantage strat...
 Optional-Product Pricing – Pricing of
complementary products
▪ Food & Beverages
▪ Priority Boarding Pass
 Dynamic Prici...
 Diversification
 Unable to rely on low-cost approach
 EasyGroup provides complementary services
▪ Offer a bundled deal...
 Environmental Strategy
 To be efficient in air
▪ Efficient use of aircraft
▪ Fly short haul only
 To be efficient on t...
 Current Situation /Trend
 Global warming
 Increased air pollution
▪ Various sources such as factories, power plants, m...
 Increase emphasis on sustainable development
 Green initiatives
▪ Reduce
▪ Reuse
▪ Recycle
What we propose easyJet should do
 In view of the current situation
 Actively market easyJet as a Green Airline
 Allow ...
 PotentialAdvantage for easyJet
 Improve branding of easyJet (Societal Marketing)
▪ Concerned with making a positive imp...
 Lower cost of operation
 Possible free or extended advertising from green
groups
 Fuel efficient engines allow greater...
 PotentialAdvantages for third parties
 Companies’ whose staff travel with easyJet
▪ Improve image of companies
 How to do it
 Seek constant improvements into greener
technology
 Jet engines that reduce fuel consumption and
emit le...
 Catchy slogan
its easyJet being green…
 Cannot rely solely on low pricing
 Only one element of company’s broader
marketing strategy
 Does not retain customer’...
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
EasyJet Analysis
Upcoming SlideShare
Loading in …5
×

EasyJet Analysis

61,899 views

Published on

EasyJet analysis for Marketing Module

EasyJet Analysis

  1. 1.  Introduction to easyJet  Factors affecting the airline industry  SWOT  Strategies of easyJet  Recommendations  Conclusion
  2. 2.  British budget airline, 2nd largest low cost carrier in Europe  Founded by Sir Stelios Haji-Ioannou in 1995  Part of EasyGroup  easyHotel  easyBus  easyCar
  3. 3.  Serves major airports in key markets  Targeted market segment  Business travelers due to high frequency of flights and convenience
  4. 4.  Strategic priorities: 1. Safety 2. Building Europe’s No 1 AirTransport Network 3. Develop a winning customer proposition 4. Deliver low cost and maximise margins
  5. 5.  Strategic priorities: 1. Safety • Flight management data • Safety management system 2. Building Europe’s No 1 AirTransport Network • Build frequency and stability to core routes • Number of aircraft based in countries is constantly being reviewed
  6. 6. 3. Develop a winning customer proposition • Arrive at destination within 15min of scheduled time • Tailored marketing email offer according to preference of individual customer  Strategic priorities: 4. Deliver low cost and maximise margins • Focus on fuel conservation • Own family of air craft which is cheaper to operate
  7. 7.  General factors affecting strategies and decisions within airline industry  Market demand  Competitors  Fluctuation in oil prices  Threat from terrorism  Natural disaster / epidemic  Government regulation
  8. 8.  Market Demand  Increased demand for air travel due to: ▪ Reduction in air fares ▪ Increased in average incomes
  9. 9.  Significant increase in short haul travels. Increase to 187million
  10. 10.  Competitive Market ▪ Cannot influence on-going market price  Travelling considered as luxurious good. ▪ Demand is elastic Big drop in demand Small increase in price
  11. 11.  Competitors  Presence of competitors offering similar products  Comparison of price can be done easily through internet
  12. 12.  Fluctuation in oil prices  Due to instability in middle east, influence of cartel  Oil resource drying up
  13. 13.  Increases in oil prices will increase cost of production  Erode profit margin  Consumer have to pay more
  14. 14.  Threat from terrorism  Fear of flying  May avoid air travel until psychological shock is overcome  E.g. ▪ Bombing in London on 7th July 2005 ▪ US recently issued a travel alert to travel in Europe
  15. 15.  Epidemic / Natural Disaster  SARS (November 2002) ▪ Fear of being contracted  Volcanic ash cloud over Europe (April 2010) ▪ Halting of aircraft ▪ Loss of $200 million in a day
  16. 16.  Government regulation  Environmental degradation becoming a major issue  Increase in emphasis on sustainable development ▪ Sustainable marketing – invest in modern fuel efficient aircraft operating at high capacity
  17. 17.  Dynamic Pricing  Adjust prices continually when flight date nearing  Promotional Pricing  Temporary reduction of price to create excitement
  18. 18. Strengths Weaknesses Opportunities Threats easyJet
  19. 19.  Flies to primary airports  Convenience for business travellers on tight schedules  Low cost offering  No frills airline – non essential features removed Eg. Light freshments  Reverse Pricing System The earlier you book, the cheaper the air ticket
  20. 20.  Ease of booking flights  24/7 Internet booking  Phone booking(slowly phasing out)  Fast turnaround time of aircrafts  Planes ready to take off within 30 minutes from landing  Efficient  Increase frequency of flights
  21. 21.  Highly distinctive branding  Featured on Airline TV series, spread name in UK  Bright orange colours  Catchy slogans Eg : “The web’s favourite airline” “Come on, let’s fly”  Website livery painted on plane
  22. 22.  High-density seating  Discomfort for passengers during long distance flights  Hassle in changing bookings  Top up difference in price depending on current price level  Relying solely on price is not a good strategy  Competitors may draw customers away by offering lower prices
  23. 23.  Weakening Pound against Euro  Increased demand in travel from European countries to Britain  Cater more flights  Rising markets  Middle East  China
  24. 24.  Brand names  Easy to copy  Confuses customers  Damage the brand name
  25. 25.  Competitors  Ryanair •Europe largest low-cost carrier in terms of market share •Fly to secondary airport  Air Berlin •Germany’s 2nd largest airline •Offer free snack and drinks •Fly out of Europe
  26. 26.  Alternative modes of transport  Eurorail - Trains  Comparable duration and price for short distances
  27. 27.  4 Ps  Place  Promotion  Product  Price  Other strategies
  28. 28.  Place  Online booking website  Telephone booking
  29. 29.  Promotion  Internet business model ▪ Slowly phasing out telephone sales operation  Aggressive branding ▪ Bright orange colour ▪ Catchy slogans ▪ Website livery on airplane ▪ Featured in AirlineTV Series
  30. 30.  Product  Offers one-way tickets for passengers ▪ Flexibility of travelling  No frill experience
  31. 31.  Price  Good-value pricing – right combination of quality and price ▪ Everyday low pricing  Due to cost advantage strategies ▪ Does not provide free on board snacks and beverages ▪ No business class seats ▪ Direct marketing – use of internet
  32. 32.  Optional-Product Pricing – Pricing of complementary products ▪ Food & Beverages ▪ Priority Boarding Pass  Dynamic Pricing - prices vary according to demand and date of booking ▪ Charges low prices for early bookings
  33. 33.  Diversification  Unable to rely on low-cost approach  EasyGroup provides complementary services ▪ Offer a bundled deal which increases convenience for customer. ▪ Ryanair also use similar approach but tie up with partners to earn commissions ▪ easyJet will have more control over promotion package
  34. 34.  Environmental Strategy  To be efficient in air ▪ Efficient use of aircraft ▪ Fly short haul only  To be efficient on the ground ▪ Using less ground equipment ▪ Keep waste to minimum
  35. 35.  Current Situation /Trend  Global warming  Increased air pollution ▪ Various sources such as factories, power plants, motor vehicles and aircrafts ▪ Aircrafts are a major contributor of carbon dioxide gases to the atmosphere
  36. 36.  Increase emphasis on sustainable development  Green initiatives ▪ Reduce ▪ Reuse ▪ Recycle
  37. 37. What we propose easyJet should do  In view of the current situation  Actively market easyJet as a Green Airline  Allow consumers to see easyJet as intrinsically associated with green issues
  38. 38.  PotentialAdvantage for easyJet  Improve branding of easyJet (Societal Marketing) ▪ Concerned with making a positive impact on the environment ▪ Customers will associate easyJet with being green “Consumers not just buying an air ticket, they are buying into something bigger, and that is reduced air pollution”
  39. 39.  Lower cost of operation  Possible free or extended advertising from green groups  Fuel efficient engines allow greater savings
  40. 40.  PotentialAdvantages for third parties  Companies’ whose staff travel with easyJet ▪ Improve image of companies
  41. 41.  How to do it  Seek constant improvements into greener technology  Jet engines that reduce fuel consumption and emit less harmful gases ▪ NASA is developing technology that would permit Boeing 737 and Airbus A320 jets, in 2018, to burn 25% less fuel and reduce nitrogen oxide emissions by 80%.
  42. 42.  Catchy slogan its easyJet being green…
  43. 43.  Cannot rely solely on low pricing  Only one element of company’s broader marketing strategy  Does not retain customer’s loyalty  Seek to differentiate from competitors  Green Initiatives  Cost savings due to fuel efficiency  Carry on providing low cost

×