This technical statement is prepared to clarify the marketing strategies carried out by EasyJet in order to get a competitive edge over its rivals in the market for low-cost aviation. I've researched the European 'budget flight' industry and viewed the various strategies employed by EasyJet when comparing with its main competitors. Its clear from the study and the study, EasyJet has been very successful in its approach to its marketing promotions and having a very large customer bottom part and a brand name. Within the strong marketing environment, EasyJet needs continuously look for new strategies and ideas as the industry becomes a lot more competitive.
EasyJet an introduction
A successful example of a Western european no frills airline is EasyJet. The Civil Aviation Power (CAA)'s publication on March 2010 shows, EasyJet as the UK's most significant airline, assessed by the amount of individuals who flown in a year. The statistics shows that the individuals who soar over EasyJet through UK airports will be more than 28 million in '09 2009.
Stelios Haji-Ioannou (Greek) founded EasyJet 1995. It really is predicated on the low-cost, no-frills model of the united states carrier Southwest The historical voyage begins when they started out their first flight from London Luton to Glasgow (10 November) and Edinburgh (15 November) in 1995. It began with its marketing slogan of 'Making soaring as affordable as a set of jeans - 29 one way'. Primarily they started out with two leased Boeing 737-200 plane.
The background of the EasyJet shows a steady improvement. In 1997 EasyJet launches its web site as easyJet. com to provide information on the airline. In1998 they bought 40% of Swiss charter operation, TEA Basel AG, later they renamed as 'easyJet Switzerland'. In the year 2000 EasyJet floats on the London Stock market at an offer price of 310p, valuing the business at 777m. Soon after, EasyJet joins the FTSE 250 set of companies. 2001 EasyJet makes Gatwick as its fifth foundation and becomes the second largest scheduled air travel at the air port. In the year 2002 EasyJet buys Stansted-based low-cost airline Go (which got originally been set up by English Airways) to produce Europe's number one air carry network. 2003 the first Airbus A319 goes into service in Geneva and 12 months after the offer to buy up to 240 airplane was announced by them. Year 2004 EasyJet flight becomes the first to take advantage of the newly-enlarged European Union by starting plane tickets to Hungary and Slovenia.
Ten years from the start where they begin with two leased aeroplanes, in year 2005 EasyJet can take delivery of its 100th airplane. 2007 easyJet shifted to its new headquarters in an plane hangar at Luton airport. In the entire year 2008 easyJet truly becomes a skillet European flight, which functions in 400 routes with over 175 airplane in 27 countries. For the first time, over 50% of easyJet's travellers originate from outside the UK. Season 2009 easyJet completes the acquisition of GB Airways, a London Gatwick-based flight operating to spots across Southern Europe and North Africa [Web 14].
The mission assertion of the Easy plane is "To provide our customers with safe, value, point-to-point air services. To result and to give a steady and reliable product and fares attractive to leisure and business markets on a variety of European routes. To achieve this we will establish our people and set up lasting relationships with this suppliers. "[Web 15].
The situation examination is used to recognize where we are actually in conditions of e-Marketing. The examination literally considers, Easy jet's eMarketing situation by the perspectives of inside and external factors [Web02].
3. 1 SWOT Analysis
SWOT examination is a straightforward framework which can be used for generating strategic alternatives from a predicament analysis. This construction is used to identify Easy jet's strengths, weaknesses, opportunities, and dangers which is helpful in inspecting the marketing environment and make an e-Marketing technique to its operations [Web01].
3. 1. 1Strengths of Easy Jet
Low budget, no frills air travel service - EasyJet is a respected supplier this service to many of the primary city destinations in the UK and across Europe.
The brand - The brand EasyJet has all the characteristics required for a permanent memory storage rather than easy to neglect.
Leadership - The extremely strong, innovative and proactive authority provide by the ex girlfriend or boyfriend- Chairman and ex lover- CEO which is being continued.
Quality of service - The high quality service provide by the EasyJet at competitive prices and will be offering put them in a high position. Some of the features are ticketless travel, internet reservation and assisted travel services.
Air range coverage - The EasyJet air range flies to main destination airport through the Europe makes them as attractive business travelers.
Aircraft - EasyJet uses the same kind of aircraft because of its operations. This makes easy training, maintenance as well as less guidance cost[Web05].
Keen on environment- The key contributor to the garden greenhouse result and global warming. EasyJet is keen on environmental responsibilities and continue to keep these factors as important when they are expanding their future strategies [Web05].
Lowest time of fleet - The EasyJet fleet now having 130 aeroplanes with average era of 2. 24 weeks which make them as the youngest of any major airlines in Europe[Web05]. This raise the security of the people as well as higher petrol emission.
Overhead - EasyJet has a minimal overhead due to the flat structured corporation.
Website - The user friendly web environment of EasyJet makes the customers easy on their operations.
Brand building investment - The air travel is investing properly on strong brand building steps like advertising and tv ensures a higher brand recall to EasyJet.
Employee culture - The maintenance of high quality of staff culture which raise the customer services.
Promotion - EasyJet provides an online promotion alert to the customer bottom, which escalates the sales.
Direct sales - EasyJet sells the ticket straight and they don't have agents to operate. This allows to give the tickets in less price
3. 1. 2Weakness of Easy jet
Food service - EasyJet do not offer free food service on the longer flights, which journey more than 2 hours.
Cost control - In the dynamic marketing environment it can be difficult to keep a carries on cost leadership
Price and convenience - The focus on price and the concentrate on convenience are the two drivers of the progress of the EasyJet. These has their natural limits
Regulatory decision on landing charges- the landing charges and air-port access are determine more by the regulatory decision and less determine by the commercial negotiation, this may boost the cost.
Limitation of airports - EasyJet avoid big international airports like London Heathrow airport to reduce the expense of getting. But this makes customers who live near to these airports uneasy, given that they need to squander their time as well as money to travel to the EasyJet landing airports.
Law margin - The excess taxes or charges which are impose by the government or airport government bodies will make a big impact on EasyJet since they have a regulation margin.
Customer retention - The customer retention management or the building of customer commitment is not available in EasyJet.
Expansion - Don't have a permanent plan on widening the routes to outside the Europe.
3. 1. 3Opportunities of Easy jet
Recession - The existing recession is advantageous for the EasyJet because the people and businesses are more focus on cost-conscious
EU enlargement - You will see new locations to fly since the EU enlargement.
Full service flight withdrawal - full service airlines are generally focus on the profitable long haul rout and they may withdraw from regional market where they find difficult to compete with low cost operators.
Reduced aeroplanes prices
3. 1. 4 Dangers of Easy jet
Nature - The type disruption like snow and volcanic ashes which made them to cancel their routes and 380, 000 passengers disrupted by snow and 850, 000 individuals disrupted by volcanic ashes. This made an impact on 75million to 100million on the earnings[Web 11].
New viable road - It really is difficult to develop as practical new routes from London.
Increased competition - Increased competition on low cost operators are likely to lead to better difficulties in requiring incentives from communities. This makes some routes are not profitable.
Drop in business travel - Business travel of the firms are low in economical downturn, where they use alternatives like video tutorial conferencing for their meetings.
Terrorism - This will reduce the travel
Dependency on petrol market - Petrol cost is depending on petrol market. This raise the variability in its cost.
Government rules - The government intervention can cause new costly guidelines or unpredicted new international competition.
3. 2 Infestations Analysis
War - the war in the Middle East will boost the terror invasion as well as boost the cost of the gasoline.
A EU east-enlargement gives usage of viable new destination as well as new markets
The increase taxation on airfare tickets makes unaffordable for the clients.
Unstable government - The existing UK authorities is unstable because of the collision with two people.
Increasing fuel costs, congestion and other environmental restrictions
Higher security and insurance charges due to the risk of terrorism.
As the downturn is likely for a few more years, travelers will keep an eye on their travel expenses.
Globalization should continue to raise the air traffic in the long-term.
The level of inflation for recent years are extremely high.
There are whole lot of individuals without careers. The unemployment percentage is high. This makes less on extra cash for entertainment outings.
The increase taxation on flight tickets makes unaffordable for the clients.
The Europe people aren't moving towards the visa or mastercard usage for an example German and French people.
The culture of the Western european is changing towards low cost. This allows more air travel to EasyJet
Using new aircraft that happen to be fuel efficiency as well secured
EasyJet has to monitor the technological improvements in the field of e-commerce.
The web solution needs to travel towards mobile solution.
Introduction of bullet coach will impact on air travel
Business users uses video conferencing technology for the meetings, this reduce the journey of the business enterprise uses via flights in the tough economy period.
Supply chain software packages.
4. E-marketing strategy
4. 1 Marketing mix
The marketing mixture of EasyJet is co-ordinate with the effective product, price, and campaign and place ways of sell the merchandise and services online. The trend of the consumers change to online from the traditional marketing, where they use internet to
research and buy products online. There for it is crucial to identify the proper strategies to gratify the clients as well as it gives profit to the organization.
The strategies which appeal to and maintain customers will give more profit to the organization.
4. 2 E marketing strategy
Price strategy is one of the strategies found in the marking mix. The EasyJet has a reputation of giving the lowest price of air trip to the customers. Price strategy is definitely difficult to do and need to consider great deal of areas, nothing like the traditional prices on finding the costs, finding how much consumers are eager to pay, and taking profile of the competition rates and then setting the price. Due to the use of e-marketing there is no necessary of many staff to market the merchandise and the service of EasyJet, and allocate lot of area (store) to its booking and selling businesses. However they have to add the online and offline marketing cost as well as the development and maintain the net system cost to its costing.
The main features of the simple plane is the airline service through the Europe. There for the business enterprise area mainly I am centering is on airline services' rates strategy. Whenever a consumer need to travel for a vacation spot he is willing to by the cheapest price ticket from a reputed service provided company for his or her convenience, security as well as the economical situation where they live not allows spending much money. There for they use the internet to search the best offer from many companies and journey from one which more suits them. Nothing like the original purchasing which calls for lot of your energy to invest on searching the service by calling to the service providing company or browsing their place, now it's a matter of time to spend few minutes to select a service. You will discover se's which search and give the best price from the different airlines. There for the pricing needs to become more accurate and had a need to catch the attention of the consumers from the rivals. This requires a depth marketing research to give the best price to the client frequently.
From the situation analysis we identified that the effectiveness of the EasyJet is to give the cheapest price solution from the opponents to get more customers. They have got archived this giving best price, however the competitors also adapting to the same policy. For a good example Ryanair is also using the same theme of good deal destination ticket with online arranging of 94% from other total bookings[Web ]. Due to these factors when doing the charges strategy they need to consider more on lowering the cost of procedure as well as providing pay back to the dedicated customers.
The company has recently having a person base of more than 21millon in the financial calendar year of 2010, which provided the earnings of GBP 912. 4 million [Web11]. Maintaining the prevailing customer bottom part and attracting clients is the primary aim of the online marketing strategy. There are several devoted customers who soar often via EasyJet. The online scheduling system is supplying an advantage of identifying the devoted customers, who travel frequently through EasyJet. When charges for the devoted customers there must be an insurance plan of giving a loyalty incentives to targeted band of them. This will likely allows to keep up the prevailing customers with EasyJet.
The price strategy allows keeping the purchase price low, if the functional cost is less. Easy jet uses different technique to keep the operational cost low. As we mentioned in the SWOT research we can see that the easy jet is using the flat management framework, which reduced the over head as well as unneeded managerial cost. They operate modern 737 aircraft because operating costs are low (in comparison to older aircraft), but also because crew training is simplified (avoiding the overhead of requiring crew for several different aeroplanes types) [Web 10]. EasyJet uses the price per seating model comparison with rival airlines. Seats are sold accordingly. Seats prices start off very low, with the price increasing as more chairs are sold, but nonetheless the passenger is actually guaranteed with the cheapest price [Web 10]. EasyJet don't possess a business course (Business Category can reduce chairs from 149 to only 109 chairs and boosts cabin team overheads), don't possess agents for its operations (EasyJet was the first airline to slice out providers), don't give printed seat tickets (reduces delays for individuals picking up tickets, and printing cost etc), don't provide free food (reduces costs and staff overheads), , nor travel to congested airports (avoid airports with big delays and high charges). Every one of the above gives the room of keeping the operational cost to less and much more focusing on the purchase price strategy of good deal journey for the clients. This will raise the customer base.
The customer used to by the product that they more prefer in price and quality of product and service via online medium. Once considering to the EasyJet they involved in selling air ticket, car rentals function, hotel and apartment center, Travel cover to the clients, airport car parking etc[Web09]. All of these product and services must meet the quality that the customer expect from them to keep a large customer bottom part. I am mainly concentrating on the air travel industry which is the central function of EasyJet from this strategy. There should be a specific online facts and information about the services provided by the EasyJet available on the website. This allows the customer to understand the procedure immediately and they don't want to get assistance on scheduling a ticket in which days they prefer or the vacation spot they travel etc.
According to the SWOT examination we can recognize that the people who take a flight more even more than two hours are not getting any food services. This can make inconvenience to the customers. There for the long rotes of travel its better to add a food service that may more entice the passengers.
One of the biggest changes to the marketing combine is the web purchasing. Based on the situation analysis customers use to by the seat tickets straight from EasyJet where they don't really have any agent to market the tickets. The task for online marketing to the EasyJet is to spread the service to the customer at right place as well as at the right time. Location is important within the place strategy. Online location can make reference to where links are put on web sites. Placing a link on Google or Yahoo would make high consumer traffic to EasyJet. Knowing the customer and knowing where they visit can help EasyJet to comprehend where to place their online links and adverts. [Web 08]
Since EasyJet don't sell their through the agent, they have to promote their business to the clients. The advantage which determined in the problem analysis is the fact EasyJet has a very good brand name. However in a energetic marketing environment its better to target more on promotional solutions to improve the sales via advertising and developing a brand building of EasyJet. Here here are the promotional types which will be using by EasyJet to raise the customer platform.
Search Engine unit Optimization
Search Engine Search engine optimization (SEO) is a procedure that pertains to attracting Internet traffic directly into EasyJet website as much as possible. SEO is one of the key methods found in online marketing success of EasyJet's business. It includes optimizing the website in such a way that it will appear in original internet pages of the search, so the web users can go to the EasyJet website for the details they are in search of. That is done using keyword phrases that the users generally put in the Internet search engines for searching a specific service or product [Web 07].
Pay Per Click (PPC)
Buying sponsored adverts on search engine pages and content webpages while only paying for those ads over a performance basis, i. e. when they are clicked on, has shown to be an exceptionally cost-effective online online marketing strategy because you merely pay when it works. This will be a good tool to use to market EasyJet since its affordable [Web 06].
Email Marketing Strategy
Email marketing which is focused on mailing information of the merchandise and services of EasyJet to the potential customers using email. That is a proven effective approach to using online marketing as an efficient tool for business era. This is also a very good business marketing way of building good business relations with the clients [Web 07]. .
Online advertising is a marketing method, which has a very substantial PROFITS ON RETURN (ROI) value. It includes placing advertisements of products and services on the company website, sites which are rating on the first pages of the internet search engine, and sites which are getting a great deal of traffic from Internet users. Affiliate internet marketing is a good example of internet marketing, which pertains to paying your company's product marketer according to the sales era [Web 07].
Businesses generally issue online newsletters to regular customers for permitting them to really know what new introductory offers can be found and which new products are likely to be launched. Unlike e-mail marketing, these online news letters are issued at regular time intervals [Web 07].
Media Media Rooms
A media news room is a center online that includes the majority of the company blogs and information which may be accessed by cultural media. If the company information reaches the social press, it takes virtually no time for the info and media to be transferred to the general public. The info in media news rooms is usually available to journalists and bloggers, who are tourists looking for specific media and facts of the products and not just general information. That is also one of the most effective Internet marketing strategies[Web 07]. .
The banner advertising is also a way of promoting the EasyJet in web pages. There will vary kind of banner adds specifically Keyword banners and Random banners.
Web pr (WPR)
This allows online PR strategies to attain their full probable because the brand gets to travel to so many places, constantly linking back to your site [Web 06].
4. 5 Budget
To put into practice the new strategies with the internet site will cost 74, 850. 00
Implementation of new strategy for EasyJet will boost the customer foundation as well the income of the company. The promotional strategy will reach the majority of the clients and the costing strategy will catch the attention of most of the clients towards EasyJet. When putting into action the strategy it is vital to create a Customer Marriage Management as a fresh core which expands the value for the clients.
In the competitive commercial world it's important to keeping existing customers and extending business. The costs associated with finding new customers mean that every existing customer is vital. Customer use to do the web transaction in the EasyJet website, there for its necessary to deal with the connections with customer bottom part. Customer romance management (CRM) of EasyJet will help to gain an understanding into the action of the clients and improve their business functions when it's necessary to ensure that customers are dished up in the perfect way. CRM helps to recognize the value of its customers also to capitalize on improved customer relations. The better knowledge of the customers, gives more responsive towards EasyJet. CRM may be accomplished by
finding out about the EasyJet customers' purchasing habits, viewpoints and preferences
profiling individuals and categories to market more effectively and increase the sales
changing just how of EasyJet operate to improve customer service and marketing
Implementing customer romance management (CRM) answer to the EasyJet provides many potential benefits. A significant benefit is the development of better relations with existing customers, which may lead to
increased sales in a particular time by anticipating needs predicated on historic trends, in which a particular customer travel can be predicted
Easy identification of the needs by understanding specific customer requirements provides more customers to EasyJet
cross-selling can be done on other products by highlighting and suggesting alternatives or enhancements. The
Easily can determining which of the customers tend to be profitable and which are not. For the more profitable customers we can provide loyalty facilities which keep them with EasyJet.
a more personal way of customers will gain more business in the future.
The customer satisfaction and retention, ensuring that the good reputation available on the market continues to grow and the brand value of EasyJet will be increased.
increased value from your existing customers and reduced costs associated with aiding and servicing them, upping your overall efficiency and reducing total cost of sales
improved success by focusing on the most profitable customers and dealing with the unprofitable in more cost effective ways
The more we realize about the clients will allow better to identify new potential clients and raise the customer foundation of EasyJet
The execution of a person relationship management (CRM) strategy will have the next steps
Stage 1 - Collecting information
Customers will go into their detail when they do a purchase with EasyJet
Stage 2 - Storing information
The information will be stored in a relational data platform which allows up-to-date information about the customers
Stage 3 - Accessing information
The stored information will be available to staff in the most readily useful format.
Stage 4 - Analyzing customer behavior
Using data mining tools to analyze data to identify patterns or associations that we can start to account customers and develop sales strategies.
Stage 5 - Marketing more effectively
Using CRM to gain a better understanding of your customers' needs, needs and self-perception, we can encourage and aim for EasyJet's most effective customers.
Stage 6 - Improving the client experience
Give an opportunity to improve the customers experience in to positive way. [Web 16]
The management will balance their online offline campaign solutions to get a good ad to the EasyJet. They will evaluate the price of investment of these industries and the out come of the investment by customers feedbacks studies.
The online campaign methods like SEARCH ENGINE MARKETING, pay per click, banner add, email messages, web publication relationship, multimedia room etc will be utilized to get more online sales to the EasyJet. You will see a high level of investment will be achieved on this sector to get more business.
The offline promotion methods will be performed like grouped ads in newspaper publishers, producing up brochures, offer t-shirts, caps, pens, coffee cups, and other trinkets, which are given to the customers. EasyJet can sponsor a countrywide sports which can make an enormous offline marketing to EasyJet. Evenly a high level of investment will be placed directly into these offline promotion to get protected the full total customer base. Someone who may well not use internet will get to know by these as well as the internet surfers likewise have the facility to gain access to the website of EasyJet by these adverts.
6. Legal and Moral Issues
There are extensive legal and honest issues to consider when gathering, control, circulation and use of information in an online site. They are identified here below
Copyright provides inventor of some types of material rights to control the use or commercial exploitation of that material. This also contains in materials that happen to be released on the internet. So we can not use somebody else's text duplicate or photos or images on the website without the owner's permission. Some designers or creators may allow utilizing their material free of charge. A copyright notice on an online site will often lay out what you can and can't do with the materials on that site. The absence of a copyright notice will not indicate you are free to reuse the material on that website - by default you should assume that other people's works is covered by copyright unless explained otherwise. [Web 12]
Data safety act
The Data Safety Function 1998 (DPA 1998) can be an act of the United Kingdom (UK) Parliament defining the ways in which information about living people may be legitimately used and completed. The main purpose is to protect individuals against misuse or mistreatment of information about them. The fundamental rules of DPA 1998 specify that personal data must:
be processed pretty and lawfully.
be obtained only for lawful purposes rather than processed in virtually any manner incompatible with those purposes.
be adequate, relevant rather than excessive.
be exact and current.
not be maintained for longer than necessary.
be processed in accordance with the protection under the law and freedoms of data themes.
be covered against unauthorized or unlawful control and against accidental loss, destruction or harm.
not be used in a country or place outside the European Economic Area unless that country or place protects the protection under the law and freedoms of the data content [Web 14]
It is illegitimate to send unsolicited email messages to email users except in limited circumstances. If customers wish to obtain information from in the past, ie opted in, then we can send them information on other things that people think they might be interested in. We should give these folks the option to decide out of getting any further information from us [Web 13].
We cannot use any trade symbol key term on the online advertising.
The easy plane has a growing opportunity in the market since it has a very high infra structure and an improved policy of cost management. Increasing the customer retention management component increase sales of easy aircraft and it can give attention to the near future.
The resection provides an good thing about promoting the low price budget to easyJet into the Western market. The vacation spots which use to travel are an advantage to the clients since it includes most regions of Europe. The new flights which are used by the company increase the customer satisfaction as well as the safety and fuel usage.
The future of boosting the routs from Europe to other destination will raise the customer base.
The political factors of the current UK situation won't increase the sales where the customers don't have way of increasing money. The fees and vat increase will straight impact the EasyJet.
Adopting the new strategies directly into their existing web site will raise the business.
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