Ryanair Marketing Strategy | An Analysis

1. 0 Introduction

Ryanair functions around 610 routes to European countries, has 24 Western european bases and uses a team of 5000 people, comprising over 25 different nationalities. It has been characterised by speedy growth and has evolved into one of the world's most profitable airlines. It is the third largest air travel in Europe in conditions of passenger numbers. The company has the world's youngest fleet of Boeing 737-800s, with the average era of around 4 years (as of December 2008); Ryanair designs to twin its fleet to 262.

This statement is ready to cover the proper marketing planning process, the marketing audit, proper development as well as the use of the marketing blend for Ryanair.

2. 0 Strategic Marketing Planning Process and Ryanair

Strategic marketing planning is a management process resulting in a marketing plan (Malcolm, 2008). Marketing strategy can be defined as a process where any organization aligns itself with the market it has decided to operate (Fifield, 2007). A strategic plan is an idea which covers an interval beyond another fiscal yr. Usually this is for between three and five years (McDonald, 1999).

Marketing planning is very important for just about any company as it works as -

A road map for achieving its objectives

A construction for screen and control

Clarifies roles and functions and assigns duties and deadlines

Assist efficiency and effectiveness

The marketing planning process requires some steps which can be called SOSTAC Model, which is utilized to apply and monitor plan's improvement.

S stands for Situation Analysis

Situation analysis answers where in fact the business is right now. It will involve performing a marketing audit which really is a comprehensive and periodic examination of Ryanair's marketing activities to be able to identify trouble spots and then propose solution for conquering problems. The situation analysis can be done using SWOT, Porter's five pushes and PESTLE evaluation.

O means Objective Setting

Objectives are what the business wants to accomplish through its activities. To create target for Ryanair, SMART requirements can be utilized. Purpose can be corporate and business, business and marketing. Commercial goal for Ryanair includes increase their success, marketing purpose includes increase their market show through their considerable marketing campaign.

S means Strategy Development

Strategies are the methods to achieve Ryanair's objectives. Strategy can be developed through various techniques such as- the ANSOFF's matrix, Boston Consulting Group (BCG) matrix. These strategies are used to fulfil Ryanair's target to expand and increase its profitability in the market

T stands for Tactical Development

Tactics will be the ways to achieve the objective of Ryanair through the chosen strategy. Methods development includes the use and manipulation of 7P's- Product, Price, Place, Campaign, People, Process and Physical proof.

A means Action

Actions must take when strategy and strategy has been set for Ryanair. Action plan for Ryanair includes three activity- Allocating responsibilities and responsibilities, Arranging of marketing activities and Setting up the marketing budget.

C means Control

When the chosen strategy with the correct methods has been implemented for Ryanair control is required which means taking corrective methods if things 're going relating to plan. Control includes benchmarking and well balanced scorecard method.

3. 0 Marketing Audit Using SWOT, Porter's 5 Causes, PESTLE Evaluation for Ryanair

Marketing audit might be thought as a comprehensive, systematic, independent and regular examination of a company's environment, goals, strategies and activities to find out problem areas and opportunities, also to recommend a plan of action to increase the company's marketing performance (Kotler et al. , 2005).

3. 1 SWOT Analysis

SWOT means Talents, Weaknesses, Opportunities and Threats. The SWOT analysis evaluate the company's internal advantages and weaknesses which it includes control over, it also evaluate company's exterior opportunities and risks on which the organization might not have control over. The main aim of SWOT evaluation is to convert dangers into opportunities and weaknesses into talents.

3. 1. 1 Strengths

Strength is inner issue for a business. It is the aspects of the business in which they are simply much better than other competitor's. For Ryanair, advantages are-

Ryanair is Europe's most significant low-cost carrier which really is a greater edge for them as they can catch the attention of more customers who wants to happen to be different places without expending excess amount.

Ryanair's turnover and pre-tax profit increased than past year which is an advantage much like the increased earnings they can use these to increase their routes and volume of fleets.

Ryanair has the world's youngest fleet of Boeing 737-800s meaning they'll be able to utilize them for longer time than their competitor

3. 1. 2 Weaknesses

Weakness is also an interior issue which refers to aspects in which any organization lacks in comparison to its competitor. For Ryanair, greatest weakness is really as these are low-cost carrier, they tend to decrease some facilities for his or her traveler which other company's usually takes advantage to contend with Ryanair.

3. 1. 3 Opportunities

Opportunities are external issue on which the company may take benefit of. For Ryanair, the opportunities includes-

Approved open up sky pact that will enable Ryanair to soar over anywhere from European union to USA. It means that they will be able to kick off new routes from European union to major US locations in more competitive fare.

Forecast of progress in the amount of passengers carried by UK based mostly airlines. As Ryanair likely to increase their fleet by 2012, it'll be perfect timing for them because they'll be able to hold more people with the increased volume of fleet.

3. 1. 4 Threats

Threats are another external factor on which the company has no control over. Dangers are issues that create problem to any organization to accomplish their goals. For Ryanair, threats are-

Government legislation of doubled air passenger duty. This is direct risk to Ryanair as it will impact the fare plan of Ryanair. Either they have to increase their fare or absorb the excess cost

Campaign of various environmental organizations. These organizations are blaming airline industry for greenhouse effect which might induce authorities to make legislation to make carbon offsetting 1 mandatory resulting pressure to make use of larger and fuel-efficient plane not forgetting the fare

3. 2 Porter's 5 Forces

Porter's five forces are being used to analyse and better understand the industry in which Ryanair works. These five makes make a difference all the business on the market. Ability to earn higher revenue depends on the strength of these forces. Regarding to Porter's platform a strong competitive pressure can be regarded as a threat while vulnerable competitive power may be thought to be opportunities. It might be possible for a firm to alter the strength of a number of of the five forces to its advantages through it strategy (Hill and Jones, 2008). These five pushes are-

Bargaining vitality of buyers

Bargaining vitality of suppliers

Availability of substitutes

Threats of new entrants

Competitive Rivalry

3. 2. 1 Bargaining electricity of buyers

Buyers are the consumer of the company who use the products. It refers to choices of purchasers have regarding the product they obtain company. As regarding Ryanair, bargaining power of buyer will be higher if they want to use in Bangladesh as there are many airlines working from Bangladesh specifically Bangladesh Biman, United Airlines, GMG Airlines, Qatar airways etc. Therefore the buyer has the availability of choice from various airlines.

3. 2. 2 Bargaining ability of supplier

Suppliers supply the necessary influences needed by Ryanair to provide its services. If there are fewer suppliers for a specific site, then Ryanair has more bargaining electric power as regarding aircraft. There are only two aircraft developing company in the world- Boeing and Airbus. Ryanair uses Boeing, so the bargaining vitality is higher for the airlines developing company as Ryanair has to depend on Boeing because of its activity. Bargaining electric power of provider is higher for petrol supplying as only Bangladesh Petroleum Organization has the power to supply energy.

3. 2. 3 Option of substitute

Substitutes are choice products that can gratify the same consumer needs. Replacement could be either direct or indirect. Regarding Ryanair, the immediate replacement is Biman Bangladesh, United Airways, GMG Airlines whereas indirect substitute is high speed rail service, Bus services.

3. 2. 4 Threat of new entrants

This identifies how easy or difficult it is for new competition to enter into the firm's industry. Admittance of new rivals is determined by various factors such as-

Government regulations

Cost of capital or investment needed

Level of expertise required

Demand and revenue level

Exit cost

Ryanair runs in air travel industry which is very costly and requires higher capital and investment than many other industries. Therefore the hazards of new entrants is leaner for Ryanair Inside the airline industry people required to work should be highly skilled and highly expert. So for a new rival to come in the airline industry is very hard.

3. 2. 5 Competitive rivalry

Competitive rivalry identifies the level of the level of competition in the firm's industry. There are usually two types of competition- friendly competition and hostile competition. Inside the airlines industry the competition is very brutal. Every company tries to take advantage of other companies problem. In Bangladesh rivalry is friendly rather than cut throat.

3. 3 PESTLE Analysis

PESTLE analysis really helps to analyse and better understand the company's exterior or macro environment. The business has no control over these factors and really should therefore change and take up changes to these factors. This examination seeks to forecast the magnitude to which change is likely to occur and its possible effects for the business. PESTLE stands for-







3. 3. 1 Politics factor

There are various politics factors that impact the company decision to run its business. If Ryanair attempts to extend its route to Bangladesh they must consider that Bangladesh doesn't have as much political steadiness as India has. Occurrence of strike reasonably common however the situation has increased over last few years as there was no such incident

Threat of terrorism is a hot issue in the current framework. Bangladesh might be a good choice if Ryanair decides to use, as the united states does not have any record of experiencing such occurrence.

3. 3. 2 Economic factor

Ryanair must concentrate on various financial factors if they want to grow its way into another country. Main concerns in economic factors are- Tough economy, Demand, Interest, Inflation, Exchange rate, Job level, Throw-away income.

If Ryanair decides to include Bangladesh in their path they need to consider the demand and disposable income level as they will impact the most for the profitability of the business. Demand for airlines is high especially from Europe as lots of Bangladeshi people live here. You will discover well over 150, 000 Bangladeshi people surviving in London and the south east of Great britain (BBC, 2010) by themselves and most of them travel frequently with their home country. Therefore the demand of airlines is high for Bangladesh. Another factor may need to be consider is the exchange rate of local currency. In 2009 2009 exchange rate of Bangladeshi taka (BDT) to per US dollars was 69. 047tk (CIA, 2010). So, this factor is also positive for Ryanair.

3. 3. 3 Socio-cultural factor

Before considering expanding the business, Ryanair needs to consider various socio-cultural factors which includes-Education level, Population demography, Religion, Values and values, Aesthetic, Ethics.

Education factor would be the biggest factor for Ryanair if they choose to operate in Bangladesh. Literacy rate is 47. 9% (CIA, 2010) in Bangladesh and this will impact the business's business as they mainly operate online. As few people are informed enough, Ryanair need to find different ways to operate their business in Bangladesh.

3. 3. 4 Technological factor

As Ryanair provides their solution online only, technical factor will be the biggest issue in the united states they are functioning such as- Communication framework, transport facilities, technical skills.

Communication structure such as- option of broadband, radio, Tv set etc. are receiving better in Bangladesh. Federal government has taken effort to widen the broadband service to complete country, new certificate has been directed at operate 3G, Wi-Fi service in the united states. In 2008 total number of broadband user was 556, 000 (CIA, 2010).

3. 3. 5 Legal factor

Legal factor such as- employment law, health insurance and safety legislation, investment regulation are also had a need to consider to operate in a certain country. You will find about 47 labour-related laws and regulations, which regulate salary and employment, trade union and commercial disputes, working environment and labour supervision, and related things (Bangladesh High Commission rate, 2010). So for Ryanair, it'll be simpler to operate in Bangladesh as there are particular laws regarding making an investment of their operation.

3. 3. 6 Ecological factor

Ecological or environmental factor also performs a very big role available. Issues like air pollution, recycling, renewable factor is required to be considered. In Bangladesh emphasize has been directed at minimize air pollution and there are recycling center which has been built in the city.

4. 0 Selection of Strategic options available to Ryanair

Various methods can be used to determine strategy for Ryanair, but mostly used method is ANSOFF's matrix which is also known as Product-Market Expansion Grid. This plan can be shown by the next figure (number-1)

Existing Products New Products

Market Penetration

Product Development

Market Development


Existing Markets

New Markets

Figure 1: ANSOFF's Matrix

Market Penetration

This strategy includes increase in sell of existing product in the existing market where the company operates. In case there is Ryanair, market penetration requires persuading existing customer to generate more earnings such as discount, family reward etc.

Product Development

This strategy includes developing of new product and provides it into existing market. This strategy is preferred when demand of existing product is in decrease.

Market Development

This strategy includes of selling the company's existing product to a fresh market. For Ryanair, they could go to another country to provide their existing service to the new customer.


Diversification means creating a new product and equipment it into a totally new market. For Ryanair, diversification range from creating a new service such as built a hotel, resort, restaurant etc.

Recommendation for Ryanair

If Ryanair wants to increase their income, then market development will be right technique for them. As talked about before, Bangladesh can be future market for Ryanair where people soar to seperate location including various countries in European countries and Midsection East. So they can take their existing service which is flying different location at a cheapest fare and market it in Bangladesh. As mentioned earlier there can be an opportunity for Ryanair to extend their operations so far as USA under the new open air pact. So it is a perfect chance for Ryanair as there are very few airlines functioning from Bangladesh to USA and take good thing about the situation.

Competitive Strategy:

Ryanair must decide the technique to contend with other airlines and choose the competitive benefit to use against its rival. Competitive strategy can be expressed as three possible strategies-

Cost Leadership



Cost leadership strategy is used when the company has a charging advantage over opponents. Differentiation aims to provide products which are unique compare to rival companies. Focus uses cost control or differentiation but focus on particular portion of market rather focusing on the whole market.

For Ryanair, cost management would be the right strategy as they are already the least expensive airline in Europe and they can use the same technique to gain access market of Bangladesh.

5. 0 Employ Recommended Strategy Using Marketing Mix for Ryanair

The marketing mixture is the group of controllable tactical marketing tools that the organization blends to produce the response it would like in the mark market. The marketing combination consists of everything the firm can do to affect the demand for its product (Kotler et al, 2008). Marketing blend contain 7 Variables commonly known as 7P's you can use to achieve Ryanair's marketing goals and targets. 7P's includes







Physical Evidence

Product Blend

Product means the totality of goods and services that the company offers to the target market to gratify consumer needs. Regarding Ryanair main product is their service to take a flight people to the required destination. In case the marketing development strategy is chosen then Ryanair don't need to create a new product somewhat they can market their existing service. If Ryanair makes a decision to operate in Bangladesh they can choose to start out domestic trip as there are 15 international airports available in the united states. Typically the most popular destination in Bangladesh include Chittagong, Cox's Bazaar and Sylhet, so Ryanair can operate in Bangladesh internationally and domestically.

Price Blend

Price is the money charged for something or service. Price plays an essential role in marketing. For Ryanair, they are already the cheapest airlines in European countries. They can continue to do so if indeed they chose to broaden their business in Bangladesh as that will draw in more customers because the plane tickets that are operated inside the country are not cheap.

Place Mix

Place entails company activities that produce the product open to target buyers. For Ryanair, the one place their service can be purchased is through internet. But if they want to use in Bangladesh, the business will need to change their technique for advertising their service through internet to visit agencies because so many people don't have the accessibility to use internet.

Promotion Blend

Promotions are the activities that draw in customer to the product or service the business advertising. If Ryanair selects to operate in Bangladesh they can provide some promotional offer such as family program which might include discount if three or four folks of the same family buy seat tickets from Ryanair. They can also promote their product through press such as Television set, Newspaper. They can also sponsor in various cricket competition that are placed in the united states, in this way they can reach to wide selection of customer.

People Blend

People are the employees that work in the company. Ryanair will need to hire determined people and coach them to provide the service to the client to keep the brand image of Ryanair if they want to extend their service to Bangladesh.

Process Mix

Process mix involves the way the activities are done in Ryanair. As Ryanair do not operate through travel firms, they'll need to plan extensively to keep up queuing, delivery plan if they choose to use in Bangladesh.

Physical evidence mix

Physical data means the aspect of Ryanair that consumer can see and feel which along the way might impact their perceptions of the service provided. Ryanair can print brochure and supply them through their office in Bangladesh. Another exemplory case of physical data can be producing special outfit for the staff of Ryanair as the culture of Bangladesh is different from Europe plus they need to echo the culture of these operating country through the attire. They can also use magazine, in-flight films, halal foods as the almost all of the customer are Muslim. They are able to also improve the seats for their customer.

6. 0 Conclusion

Thus it could be figured Ryanair can choose to operate in Bangladesh to increase their profitability. To do so they will need to put into practice strategy that is reviewed along with marketing audit using various techniques. To operate in Bangladesh a strategy has been recommended and marketing combine has been applied to describe the strategy.

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