Situational analysis and emarketing technique for EasyJet

Easyjet was founded in 1995 by Stelios Haji-loannau as a no frills budget Airline Company. Its initial aims were to under-cut the current competitors that targeted the same market segments. Low-cost airlines achieve their competitive advantage through achieving low operating costs and increasing their gains to be able to provide the best prices. Easyjet stumbled onto a platinum mine that allowed these to trim their costs by such a margin that they truly became the market market leaders (Chaffey 2009).

Easyjet experienced early success in their company's life span through the adoption of an eMarketing strategy. Initially the company turned down the idea of adopting the internet in an effort to do business responding to it as a place for "nerds". But after taking baby steps into this new area Easyjet soon observed how valuable this new route could be. It proved to be even more beneficial to them in the first couple of years of procedure than they might even predict.

Easyjet used the "cost control" technique to identify itself from the other rivals out there. They strived to have the lowest flight costs on the market and maintain it. These were able to achieve this because of the amount of money that they preserved in operations because of the implementation and adoption of the internet to their business (Chaffey 2009).

In the first many years of procedure their website offered them approximately 40% of their bookings, which eventually became 90%. They soon made their website the principal way to obtain their trip bookings, aiming to provide easier methods in which clients could connect to them. They were the first company to adopt an eMarketing strategy as an initial means of conducting business but others soon adopted.

The sophistication with their site allowed Easyjet to be always a very flexible company, changing prices and discounts in just a moment's notice to cope with any market changes or gaps they found. The site also provided them with fast accurate feedback that required only verifying statistics of the web site. Easyjet has entirely changed the way flights companies perform themselves on the market place and will probably continue to achieve this task in the future.

Situational Analysis

SWOT Analysis.

Strengths:

EasyJet is the leading Low cost air travel provider in lots of the leading city spots in the united kingdom and across European countries.

Is thought to be the leading brand name based on the travel industry within the united kingdom.

Their aircrafts have a unique look making them easily recognizable and easy to distinguish between them and their competitors.

Their services can be found at a high quality while keeping competitive prices.

EasyJet, being truly a company in an industry being meticulously viewed by the publics' eyesight in conditions of adding to the green house result and global warming, has taken active steps to reduce its carbon footprint and has made this a priority in future advancements.

They offer a variety of features including internet arranging, ticketless travel and aided travel services.

Their website is regarded as being very user-friendly which is easily navigated. All of the costs are evidently laid out prior to the end user so that no hidden costs are thrust upon the unsuspecting customer.

Weaknesses:

EasyJet, on plane tickets longer than 2 time, does not give you a free food service.

EasyJet is part of the domestic air travel market which really is a very competitive market. Competition can limit and shape prices policies on EasyJet's less profitable routes.

Opportunities:

EasyJet could develop their routes by beginning alternate routes to major cities in Europe. Soccer players who travel from Dublin to the UK might appreciate a way linking the two places.

Long trip flights could be very unbearable on domestic flights, so if EasyJet offered free refreshments for flights longer than 2 time this might make their long distance plane tickets more inviting than their rivals.

Threats:

Popular plane tickets are highly sought after and fought between by competitors soaring the same way forcing strain on the pricing and income of those routes.

Less popular flights could become costly if the external market has an effect on it. If the price tag on oil escalates the profitability of these less popular plane tickets could drastically reduce.

Economic recessions may lead to businesses and informal flyers to lessen unnecessary expenditure which may result in them flying only when they need to causing those to journey less.

Pest Analysis

Political

The enlargement of the budget air travel industry corresponded with the European deregulation of commercial aviation in 1990 which allowed the low cost carriers in the industry to take good thing about the laws being more lenient and enlarge their businesses.

Economical

Figure 1: True low-cost airlinesFor airlines to be looked at true low-cost flight companies they need to adhere do the 3 components exhibited in physique 1. As can be seen below Easyjet, Go and Ryanair all qualify to use in Europe as genuine low-cost airlines. Easyjet handles to catch the eye of customers through their website that is user-friendly, new with a sophisticated booking process (Webster 2004).

(Mercer Management Consulting 2002).

Most low priced airlines operate by taking a small insert, in conditions of luggage and folks, and travel directly from one indicate another. These vacations are normally short and done regularly. Their marketing strategies are normally aggressive and mainly give attention to secondary airports. Easyjet differs here as they deal with major hub airports. The industry tries its better to operate at a low cost, which is achieved by sales which have little excess, maintenance held at a low cost, wages retained low and a high production of resources.

Oil prices being on the increase also offers a big influence on the airline industry but irrespective of this Easyjet has had the opportunity to keep their costs relatively the same because of the size while smaller flight companies haven't been able to keep up competitive prices.

Social

Figure 2: Air travel PositionsBelow is a number expressing the different airlines also to what type of folks they target their services to in body 2 (Fainsilber 2000).

From these it could be seen that low-cost airlines normally focus on Non-business People and Price-Conscious Business Travellers. Easyjet has set themselves aside my targeting the business enterprise and leisure sections. They have ensured that its online marketing strategy is advertised for a wider market than the competition giving them a slight competitive border.

Technological

The new functions of websites allow low cost airlines to save lots of a lot of money on their bookings because of the insufficient personal needed to keep it jogging. This allows them to stay competitive and also gain a fresh form of advertising which clients can certainly access. Having no travel agents means devoid of to pay any travel company commissions.

e-Marketing Strategy

E-Marketing can be explained as "Achieving marketing objectives through use of digital communications technology" (Smith, Chaffy 2001). Electric communications technology identifies the web, e-mail, Ebooks, database and mobile phones.

"Marketing is the management process accountable for determining, anticipating and fulfilling customer requirements profitably. " (Smith, Chaffy 2001).

The above price shows marketing's concentrate on the customer and the way to satisfy the customer to reap revenue.

Internet as a marketing tool can be used to support the next aims

Identifying your clients desires and needs: The web allows clients to provide feedback from any location at their own time with relatively no effort required whatsoever. WebPages can also give readings back again to features most used and others that are seldom used to allow them to enhance their eMarketing strategy.

Anticipating the requirements for new or existing products: Allowing customers to buy things and bookings online opens up a fresh channel where the customers can interact with the business enterprise. This tool allows the business to get responses from other site showing which with their features are more popular and which ones aren't. They are also in a position to check what other companies might be doing so they can adapt and keep carefully the competitive edge.

Satisfying the client's needs and desires: The internet is very easy to use if implemented appropriately. This makes the experience your client has when accessing the web site a pleasurable one. The main element success factor for e-marketing is ensuring the customers are satisfied through the electronic digital route. As easy as the site is to access, it is just as effortless to close. Therefore keeping the users attention for so long as possible is an integral desire. (Smith, Chaffy 2001).

Another way in which the internet can positively affect a company if implemented correctly is exactly what Smith and Chaffey (2001) call "the 5S's". These are the following

Sell - Growing sales through better customer understanding and an inexpensive but effective method of advertising.

Serve - Adding extra value in using the site such as special benefits or offers that can only be gained through the site. Also displaying more info for the client so that they can have easier usage of it.

Speak - Allowing the company to get closer to their clients through online surveys, learning about customer's personal preferences through site traffic monitoring. Mainly by creating dialogue between your client and the business.

Save - Protecting costs by not requiring people to interact with the clients, or needing costs of traditional methods of advertising such as producing out advertising or paying for adverts on the tv screen. Also providing a strategy to speak to clients that otherwise would be very costly to communicate to by traditional means.

Sizzle - Permits brand extension via online methods. Not only can the brand be broadened, however the expansions made can certainly be produced to the customers who access the website.

Easyjet initially had taken baby steps onto the idea of websites being beneficial to their company. Once they experienced success in this they made the decision to start moving towards making their business more "web" orientated with the goal of profiting from everything stated above (Chaffey 2009).

In the early stages of the sites life, it made 38% of the business enterprise air travel bookings. Below can be an remove from Easyjets website (Easyjet 2010a) exhibiting their end of season funds for 30 Sept 2010.

Figure 3: Easyjet Full 12 months Results for the year 30 September 2010

90% of these sales can be attributed to online sales. This compared to the companies 87, 710 car seats sold online in the entire year 2000 for an individual week in Oct, which was 74% of total sales (Easyjet 2010a). From this information and the info in the number it could be seen Easyjet has grown by a large amount since their first adoption of the internet into their company composition. The growth was so extreme at one point in 2000 Easyjet managed to double their range of flights in only one year achieving 1000 flights weekly (Easyjet 2010a).

Easyjet transferred towards only allowing bookings through their site until 14 days before the flight time where conventional scheduling methods would be allowed. This differentiated their product from other air travel industries as these were the 1st flight company to get this done (Chaffey 2009).

Easyjet has adopted the colour orange to represent their company. Their website has this coloring used all over the place and their fleets are coated orange as well. This allows the company to easily be distinguished by customers between other airline companies (Easyjet 2010a).

The direct interconnection the customers have finally in reserving their flights, permitting them to be their own travel agents, has not only saved big money in conditions of paying travel organizations commissions because of their services, but it addittionally has increased the customers buying power.

"This direct interconnection can be utilized for special deals to last-minute impulse buying customers, active pricing, cross-selling, better cash flows scheduled to direct selling and cost reductions such as the chance to outsource earnings accounting to lessen wage countries. " (Soldt, Bobbink & Ying 2007).

As can be seen from the above quotation, the benefits from clients having a greater buying power are quite substantial. Below is a body showing why flight companies are shifting towards a more e-Commerce marketing strategy.

Figure 4 Causes driving progress of e-commerce in air transfer (Soldt, Bobbink & Ying 2007).

All the factors stated in the above mentioned figure all lead towards airlines becoming more e-Commerce orientated. Ryanair establish itself away by proclaiming itself to be "the World's most liked air travel company". Easyjet establish itself away by declaring itself to be "the Web's most adored airline company" (Butler & Denholm 2006). In order to keep competitive benefits, Easyjet required the "cost-leadership" procedure transferring all of this low-cost advantages to the consumer by means of low prices.

In terms of product differentiation, Easyjet has allowed customers to "personal check in" (Easyjet 2010a) to minimize disruption which no other flight had implemented at that time. Also in their charges methods they took a different procedure from the normal stating prices excluding fees and other charges. They made a decision to implement "inclusive pricing" which exhibited the total price upfront (Internet Travel Media, 2005). This has helped build customer trust towards Easyjet.

Implementation

New Key and extended value for customers

Management is creating new core and prolonged value for customers in a number of ways. With the booking strictly being done online and the need for travel businesses aren't required, the customers have grown to be their own travel companies. This has increased the customers buying power and they're in more control over their journey bookings than previously.

Due to customers having the ability to directly communicate with the business via their website customer relationships have increased causing Easyjet to raised understand their clientele. It has allowed them to create special deals and other offers that basically appeal to their client base, providing them with more value in their experience with Easyjet (Soldt, Bobbink & Ying 2007).

Easyjet's website can be looked at in 15 different dialects which was an effort in increasing their trip audience. Clients feel more at home when interacting in their home language. This has made the experience of arranging on the Easyjet website a pleasant one. It includes definitely increased web sites value for clients using the site (Easyjet 2010a).

Easyjet has followed a cost command approach in an effort to distinguish themselves from the other airlines. This is able to be achieved do to the low cost and costs kept from running their website. It has allowed Easyjet to release prices that where unrivaled and gain the competitive benefit. This has business lead to other airline companies implementing an e-Marketing strategy by producing their own WebPages. This has triggered Easyjet to have to constantly adapt in order to keep competitive advantage but being the first ever to adopt this online approached has place them in advance (Chaffey 2009).

The website allows Easyjet to revise their pricings and special deals immediately which allows those to be very versatile on the market. Also because of their increased stream of information gathered through their website they can quickly gain current market situation knowledge and modify almost instantly. This has allowed them to remain constantly competitive (Chaffey 2009).

Easyjet calm their hands luggage restrictions which allow passengers to bring up to 40% more luggage onboard compared to their previous restrictions. Also with their no weight limitations for cabin baggage along with their flexible ticket plan which allows these to create earlier airfare standby's all which is very appealing to business passengers who want to get on and off when they can to minimize the time spent at the air-port, and permitting them to bring more onboard means they don't have to check on in any luggage which means they can leave the airport terminal as soon as they log off the air travel (Easyjet 2010a).

Balancing of online and offline promotion methods

Management is managing their online and offline campaign methods. As mentioned above they use online promoting a lot, but also take great care in their offline special offers. Among their major offline special offers is their setting of their businesses. Recent studies show that Easyjet is within thirty minutes average going distance from the general human population (Easyjet 2010a). This is appealing to customers as after and before airline flight visiting times are placed to a minimum.

Easyjet recently declared a strategic arrangement with Lowcosttravelgroup, which will allow Easyjet customers discounted prices at any Lowcosttravelgroup available offers (Easyjet 2010b). These include holidays, hotel accommodation and so many more incentives. Easyjet CEO Carolyn McCall said, in response to this agreement

"We see a significant possibility to further expand our ancillary revenues, by offering our customers a huge range of flexible and low priced beach and city holiday seasons. " (Easyjet 2010b).

This helps bring about customers to utilize Easyjet never to only gain special discounts on plane tickets but also acquire discounts on the holidays.

Easyjet recently received the Business holidaymakers Best Low-Fares Air travel for the tenth 12 months in a row (Easyjet 2010c). Being successful this award allows other business holidaymakers to note Easyjet and heightens their promotion of these airline. The actual fact that Easyjet has gained this award 10 years in a row shows their determination to making sure they get it and keep it. This encourages trust between the customer and the business.

9. 7 million People melody into Airline, a Tv set documentary series, when it was covering Easyjet (2010d). This is 37% of most people watching Flight instead of other channels. This was vital advertising that made Easyjets current position in their market well known to the general public. Easyjet even offered customers that viewed the documentary an opportunity to win free plane tickets, promoting them further.

Probably the most important form of advertising and product campaign is the Easyjets colour pallette of orange. Customers instantly identify this color with Easyjet and everything to do with Easyjet. Their website is protected with this color therefore is their fleet. Also all their advertising is drenched with this shade all to make sure that customers identify Easyjet and the colour orange (Easyjet 2010).

As it can be seen above, Easyjet not only has numerous online advertising methods, but they do not neglect their offline promotion techniques. The combination of these two methods provides Easyjet with a great deal of strategic campaign opportunities.

Implementing impact of the strategy

There can be an impact of implementing this strategy after the performance of the business enterprise. Originally it cost them 10 million pounds to implement their website and get it operating to bring benefits to the company. They initially experienced a goal to succeed in a degree of customers via the web site in 6 months. This goal was come to within the first 6 weeks of the site being up.

As observed in figure 3 above, Easyjets total earnings for the financial year of 2010 totalled 2 973. 1 million pounds, which was an 11% increase from the previous time. This shows the company has grown exponentially from other original baby steps onto the online world and continues to grow even today. They are actually regarded as the UK's top air travel (Easyjet 2010) in terms of passengers taken.

It has used Easyjet a long time to get their site to what it is today but due to its state Easyjet will keep one step ahead of their competitors due to the functionality of the site and the opinions it gives. This allows them to be proactive at the same time to be able to be reactive in the manner they operate on the market, having the ability to transfer prices and offers almost instantly because of the swiftness of the web site (Chaffey 2009).

Initially the execution of the web site destroyed a great deal of careers in Easyjet as certain parts of the business where no longer needed, or no longer needed at that size. The call centre no more needed many visitors to manage as the majority of the bookings originated from the website, therefore a whole lot of careers were lost and possible careers in the future in that field reduced to a minimum (Chaffey 2010).

In the process of losing jobs, Easyjet has had the opportunity to produce more job opportunities within their company by their company's progress. If the company didn't use their website, it is safe to state they wouldn't have been almost as successful and as large as the company is today. Which means careers lost outweigh the jobs been created today.

As can be seen above, Easyjets strategy helped bring them more success than recently could be forecasted. Even they failed to predict the total amount that the web site would gain them underestimating it by 450%. Some unwanted effects did occur but in the long run it was worth it in the long run.

Legal and Honest issues

One of the major honest problems that comes up in terms of the internet and electric multimedia is intellectual property issues. You will find laws and regulations that protect physical property that folks can easily see and touch. This idea is easily comprehended. The thought of intellectual property fraud is a grey area with most people. Officially though, any ideas thought up with a person or company are thought to be his property, and any try to take that idea without his/her consent is undoubtedly fraud (TekXam 2002).

Easyjet, as they operate daily in this field, must obey all the laws and ethical values stated below to keep their image and have to ensure they don't really violate some of them. They need to also prepare yourself to take legal action against anyone who violates these laws and regulations against them as it might damage their business forever.

The main areas of legal and ethical concern for the internet and electronic media (TekXam 2002) are identified and mentioned below

Protection of intellectual Property

There are several ways that intellectual property is safeguarded. The first way is to keep carefully the idea a magic formula. This is essentially the most apparent step as no-one can grab a concept that no-one else knows about. Other ways is if the theory is copyrighted. Copyright protection is designed for an "original appearance of an idea that is fixed in virtually any physical medium" (TekXam 2002) and the "right" to how this idea is indicated is directed at the person who owns the Copyright.

Trademarks are used to protect brand names, logos or phrases that distinctively identify the business. Trademarks do not prevent folks from copying products, but instead prevent anyone from utilizing their trademarked band, brand or phrase to recognize their product. Trademark protection is automatically applied when that symbol is put on that product and then sold.

Patents is a right of ownership that is directed at a concept that is new for things such as a new machine, make, composition of matter, or method, or an improvement of an existing item previously mentioned. This prevents other folks from legally taking this notion and deploying it as their own (TekXam 2002).

Prevention of fraud

When contracts are given to clients as an agreement that both people have agreed on, the firms providing the service are bound by these by laws and regulations. If the company does not provide the service specified in the deal, they may be taken to courtroom. A good example of this could be a web company that set in place rates for specific interconnection speeds. The business could be flooded with new businesses and their lines might slow down because of the new volume of traffic. This would cause the clients to get rates of speed under that which was specified in their agreement resulting in a breach of deal (TekXam 2002).

Protection of independence of appearance versus problems of defamation

Defamation of an person or companies figure or image fundamentally means slandering/libelling their name. Slander is a affirmation that is phony made to ruin the trustworthiness of a person or group of people. It is against the law to defame someone or something (slander their/its name) but the issue that happens on the internet is people can slander other people or things anonymously without fretting about being punished by the law, as no-one can observe them. Companies also need to fret about not defaming clients. This may lead to a law suit (TekXam 2002).

Protection of privacy

Information is compiled about us all the time. For most of enough time we know that this is going on and are fine with it. But due to the functionality of the internet, a person's every click can be tracked and saved into a profile about them without their knowledge. This has increased several issues and now clients must be produced aware that their information is being tracked. They need to be given a choice whether they want their information to be monitored or not. They also needs to have the ability to access these details that is being stored about them. This data that is placed about them should be safely stored and not given to another companies/people. Any information that is leaked about them is feasible for legal action (TekXam 2002).

Control of Internet indecency versus free speech

Anyone's viewpoints are permitted to be stated on the internet. Many choices are available to make your point known. This may come as a blessing or a curse. While people can express themselves, there are a lot of people that prefer to spread hate talk, or items which aren't deemed suitable to everyone. These things must be made known to an individual before entering the site, also almost everything that's not decent for folks under the age of 18 will need to have an option to verify this before entering the website (TekXam 2002).

Control of spamming

The take action of spamming entails sending an e-mail, or e-mails, aimlessly minus the permission of the device of the e-mail. The people sending have no disregard of the appropriateness of the communication.

This has lead to laws and regulations that condition the sender must identify themselves and their IP when sending announcements, and identify whether or not the mail is undoubtedly advertising or not. Also there has to be a functionality that allows users to prevent all mails from the specific sender as a way of guarding them from spam (TekXam 2002).

Management Summary

Recommendations for the business from what has been mentioned are as follows
Due to the low-cost flight industry getting maturity lately, Easyjet needs to change from being truly a "Prospector" to the "Analyzer" relating to Mls and Snow's Organizational Strategy, Composition, and Process. That classifies businesses into four different categories that are the following

"Defenders have a restricted selection of products and focus on efficiency and process Improvement; Prospectors have a broad market/product domains and have a tendency to lead change on the market; Analyzers fall between your above two groupings and are likely to follow a second-but-better strategy; Reactors haven't any consistent strategy and they merely respond passively to environment pressure. " (Tan, Weston & Tang 2005).

From the above it could be seen that a Prospector is more focused than an Analyzer, however, not as extensive. If Easyjet would like to keep its market authority it is going to have to once again set itself apart from the rest of the companies.

Easyjet should tap into untapped advertising domains such as advertising on it. That they had a documentary on them but little or nothing they initiated as 100 % pure advertising. This will increase their market ability and future.

Due to Easyjets Company being so large, they must spend time refining each branch bettering their degrees of efficiency and motivating their employees to provide better service. This would increase Easyjets reputation with everyone even more.

Conclusion

The purpose of this doc was to evaluate how Easyjet achieved the success they were able to achieve. They utilised very successful marketing strategies through many different means open to them and managed to establish themselves a long-term image to be one of the best low priced airlines in European countries. To totally understand Easyjets position on the market, the market that Easyjet run in also had to be analyzed.

Easyjet has always tried out to make itself recognized to the consumer to be the best form of low cost airline travel in Europe. Almost all their marketing strategies have been aimed at reducing their costs so that they provides cheaper, competitive costs to the people. While they targeted at becoming the least expensive mode of air travel travel, in addition they strived to keep their quality at a high, making certain their services remained at a high quality.

There website helped bring them great early success and made the work of flying much easier to the average person giving them more electric power over their alternatives of flights. They may have strived to make their site as user-friendly to the clients as possible, rendering it easier for the clients to interact with the company. Through this they have observed great growth and be the market leaders.

Though they experienced early on success, their competitors are finding and catching up fast and Easyjet is required to keep to be ground breaking if they want to keep their proper advantage for future years.

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