Easyjet Marketing Strategy Analysis

Easyjet switch dodge reconditeness psychologyJump to Easyjet gent abbreviation Easyjet SWOT Analysis Easyjet Marketing Mix Implementing and Managing Easyjets Policies CSR at EasyjetThis technical say has been ordered to clarify the e- merchandise strategies enforced by the EasyJet flight path to gain secluded-enterprise(a) advantages ein truthwhere its rivals in the selling for dep permited make up aviation. Situation compend present site and industry of EasyJet by engagement SWOT and PEST model.This report looked at the various strategies utilize by EasyJet and re reckoned in depth the European budget phone line lane industry. The main objective is to study EasyJets palmy e-marketing campaigns.Since 1995, EasyJet circulariseline Company Limited is a great and successful theoretical account of a European air duct. The chairman Stelios Haji-loannou (Greek) founded the speech soundr this year. It is based on the US carrier SouthWest, and is pocket-sized address, no-frills model. Stelios hired an expensive brand consultancy and furnished them 100,000 to bugger off up with one. A month later, the consultants turned up at EasyLand with pickup clippings attached to pieces of cardboard. Unimpressed by their efforts, Stelios promptly fired them. In the end, he came up with the air passages name himself. The word easy kept on orgasm into his head, so he decided to christen the airline EasyJet. For the fol little logo he went to a small local design consultancy, White Knight, which gave the airline its famous shade of orange, know as Pantone 021C, employ by no distinguishable airline at the time or since. The design consultancy thencece created a simple set of graphics for the airlines first of all advertising campaign.In 1995, EasyJet starts flights from Luton to Glasgow and Edinburgh with to leased Boeing 737-300 with a capacity of 148 spaces at a scathe of only 29 for one way ticket. Glasgow and Edinburgh atomic total 18 the first routes. The logic was simple southern Scotland was the biggest domestic market from London for which air was a sensible substitute(a) to road or rail. The airline opened a tele call up reservations centimeimere and took its first booking on 23 October 1995. The phone at the EasyJet telephone reservation centre started ringing and never stopped. They were in wrinkle.Two years later, EasyJet launches its clearsite, easyjet.com. Web bookings grew from zero to 26 per cent of stage byplay within a year. On the first day of trading during one promotion, 13,000 seats were sold, believed to be a record for the closely commercial morsels carried out on the net income in 24 hour period.By mid-1999, when its meshwork gross sales represented 58 per cent of the total, EasyJet beca usage the first airline to make much sales on the profit than finished convening telephone reservations. In March 2000, EasyJet reached two trillion seats, and it took only just about oth er iii months to reach the three million mark. By 2001, online bookings regularly reached 80 per cent, the highest proportion of online sales for any airline in the world.In pecuniary tidy sum, EasyJet plc was itemisationed on the London Stock Exchange (LSE EZJ) and was a constituent of the FTSE 250 index on 5th November 2000. In October 2004, the inhumenational investment company FL host was purchased an 8.4 per cent stake in EasyJet. In 2005, FL Group increase its dowery in the company to 16.9 per cent.Lois (2005) mentioned that, according to the investment house, EasyJet was becoming a paperless company with a powerful electronic infrastructure. The results were brokener administration equals, better circumspection in versionation and much responsive decision making.Situation AnalysisIn this chapter, I go forth present position and analysis the current position using twain(prenominal) of used SWOT and PEST model.PEST Analysis of EasyjetThe adjacent factors atom ic number 18 likely to begin an influence on the EasyJet.(P)olitical factorsIn 1990 the European deregulation of commercial aviation coincided with the expansion of the low constitute airline industry. The LCC in the industry were able to take advantage of the relaxed laws and surrender kittens their operations. On the other hand, threat of fight in the East Euro and EU east enlargement may provide admission price to viable the red-hot markets were as well as the political factors of EasyJet.(E)conomical factorsMercer Management Consulting (2002) reported that the low hail airline market conforms to the criteria of three components. Firstly, it provides a simple oerlap existing of no seat reservation, free seating, and adequate in flight serve well. They are a substantial no frills airline with a simple product offered to the market. Webster (2004) noned EasyJets competency to maintain a high degree of guest concentrate on by dint of a innovative, user friendly m eshworksite with an improved booking process.Secondly, mergers and acquisitions is overly the low cost airline markets characteristic the expansion of existing low cost airlines and finally, market exits as a result of bankruptcy. Finally, the industry operates a low cost ethos, which is maintained by lean sales, high productivity of resources, low maintenance cost and low wages.(S)ocial factorsThe low cost carriers position their product to unfilled transitlers and non business travellers. However EasyJet has differentiated itself by targeting the business and lei true segments. This behavioural segmentation creates a more dynamic edge in comparison to their antagonists who solely focus on leisure travel. Thus, EasyJet must assure that its dodging is tailored to a wider market. Walton (2005) confirmed that EasyJet was presented as a European low cost airline with a current reading of 26 million passengers in 14 key countries. It has 190 routes to 58 airports and 163 million p eople live within one hour of EasyJets airports.(T)echnological actorsLow cost carriers commence the ability to maintain a high degree of client focus finished user-friendly clearsites with improved booking processes. These websites ca-ca the competency of charging bookings with greater ease and utilising an easy to use fare finder to curb the cheapest fares. Selling tickets via the technological medium of websites and hence by having no travel agents, they avoid paying agency commissions.SWOT Analysis of Easyjet(S)trengthsEasyJet was used the lurid orange as Pantone 021C, used by no other airline at the time or since. It invite a successful financially which they cut out all meals and snacks on travel tour, bottom of the inning minify the cost of operation. Have more flexible organisation and being seen as an innovative.The airline opened a telephone reservation centre is a strong e-business on 1995. EasyJet is similarly was a part of the consortium and confound awarded by UK air concern attend dust National Air Traffic Services (NATS).Single model of aircraft hackd training, maintenance and supervisory costs. At last, EasyJet has been wisely investing in strong brand anatomy measured like advertising and television give tongue tos manipulated high brand recall.(W)eaknesses to a lower place have some weaknesses for EasyJet organisation. It continued sustenance of cost leadership croupister be difficult in a dynamic market. The two drivers of growth, the focus on expenditure and the focus on convenience seem to be reached their natural limits and specialism from there could become difficult.The airline does not consume the EasyJet brand, its give birthed by Sir Stelios and as a result, does not have control on its carrying into action of other products and services used the same name. It besides loss of usage in future could adversely affect its induce market mental process.(O)pportunitiesRecent expansion of the EU has resulted in open of new markets for the LCCs. Their low fares pass on increase movement of job seekers crosswise boarders and also promote the tourism industry, lead to economic growth. Consolidation could help EasyJet to a certain degree offset the pressure on its costs and fares. Otherwise, erect and horizontal expansion could be an important option for EasyJet for growth in mature markets and offset any future threat of increased in service provider costs. Withdrawal of conventional airlines from less traffic-intense routes could be an luck for expand. EasyJet does not seem to have any flights to Scandinavian capitals like capital of Sweden and Helsiki where immigrant flow was on the rise.(T)hreatsThe threats of EasyJet had some factors. Terrorism and catastrophic loss can result in lesser air travel and loss of infrastructural reliever, war threats and outbreak of epidemics or pandemics could increase apprehensions about air travel. Technology overture in the conduct of business meeti ngs like video conferencing can be detrimental to short distance flights and impending increased in environmental taxes could increase costs.In do-gooder, peculiar(a) or no slot availableness could be hurdle in future expansion plans and due to its limited fuel hedging policy, EasyJet is more vulnerable to fuel equipment casualty fluctuations increased by variability in its costs. Currency fluctuations is also the factor of threats, it go out affect especially the US dollar denominated costs like aircraft purchase, aircraft financial support costs, maintenance re inspection and repair payments, fuel purchase etc.. Excess capacity and cost cutting tactics by competitors can affect passenger traffic on popular routes. Imitation of some main no-frills features by traditional airlines on same routes can confuse and blur the typical image of any LCC.Additional, traditional players can partly switch over or start their own baby low cost airline. Last, dependance on third party serv ice providers could cause problems when any of these contracts are not renewed or negotiation of suitable replacement does not take place or if higher rates are charged.eMarketing Strategy AnalysisThis chapter was analysis what eMarketing strategy has the EasyJet weared or is planned to resume and what is the value proposition and differential advantage of this strategy.Marketing application of internet marketing internet based media offer a range of opportunities for marketing products and services across the purchase cycle. EasyJet illustrate the applications of internet marketing since they verbalise how organisations can use online communication theory such(prenominal) as their web site, third-party web sites and e-mail marketing as Direct response medium EasyJet uses sponsored link up when a user is researching a flight using a search engine to prompt them to take awayly visit the EasyJet site by jerking through to it. Similarly the EasyJet e-mail newsletter sent to cus tomers can encourage them to pokey through to a web site to generate sales. Platform for sales transactions EasyJet denounces flights online to both consumers and business travellers. guest service mechanism Customers serve themselves on easyJet.com by re poting frequently asked questions. A relationship-building medium where a company can interact with its customers to better at a lower placestand their needs and offer them relevant products and offers. EasyJet uses its e-mail newsletter and tailored alerts about special deals to help retain its customers and engage them in a dialogue to understand their needs through completing surveys and polls.Consumer matrixBowman and Faulkner (1997) were also mentioned that the consumer matrix details that customers have with regard to the service or product offered to them and the prices charged.When used this theory to retain in EasyJet, can guestimate the general perception generated by the market. EasyJets flights was offer the value to consumer as gained the benefits from the online or telephone transaction relative to price appear favourable in comparison to another competitors.In the view of heterogeneousness, according to the demands for the service, indicated that, one service meets all demands might be let it to the wrong competitive strategy.More consumers were demand the low cost alternative and price sensitive with the airline segment. EasyJet was in order to attain sustainable competitive advantage by the customer matrix price strategy.mart channel structuresChannel structures describe the way a manufacturer or selling organization delivers products and services to its customer. The distribution channel will consist of one or more intermediaries such as wholesalers and retailers.The relationship amidst a company and its channel partners shown in below figure can be dramatically altered by the opportunities afforded by the internet. This occurs because the internet offers a means of bypassed some of t he channel partners. This process is known as disintermediation or cutting out the middleman.Benjamin and Weigand (1995) calculated that, using the sale of pure tone shirts as an example, it was possible to make cost saving of 28 per cent in the case of (b) and 62 per cent for case for (c). Some of these cost savings can be passed on to the customer in the form of cost reductions.6 Is of eMarketingIn this section, I used the McDonald and Wilson (1999) as the 6 Is of eMarketing to summarised the differences between the new media and traditional media. The 6 Is are useful since they sidle up factors that apply to pragmatical aspects of internet marketing such as personalization, direct response and marketing search, but also strategic progenys of industry restructuring and merged channel communications. The 6 Is are Interactivity, Intelligence, Individualization, Integration, Industry restructuring and Independence of location. But in this case, I only focus one of the factors I ntegration, for used by this theory.The Internet provides further scope for co-ordinated marketing communications. Below figure show how it is just one of umpteen different media channels. When assessed the success of a web site, the role of the internet in communicating with customers and other partners can beat out be con locatingred from two perspectives.The EasyJet web site can be used as a direct response tool enabled customers to respond to offers and promotions tell in other media. The web site can also have a direct response or call back induction built into it. The internet can be used to support the buy decision even if the purchase does not occur via the web site. Customer entropy delivered on the web site must be integrated with other informationbases of customer and order information such as those accessed via module in the call centre to provide what Seybold (1999) calls a 360 degree view of the customer.The internet can be used to support customer service. In EasyJet, who received over half their orders electronically, encourage users to go through a list of frequently asked questions compiled from previous customer enquiries before contacting customer support via phone.Marketing MixThe marketing mix the 4 Ps of Product, Price and procession originally proposed by McCarthy (1960) is used as an essential part of implemented marketing strategy by many practitioners.PriceBaker et al. (2001) have mentioned that the price element of the marketing mix refers to an organizations pricing policies which are used to define pricing models and, of course, to set prices for products and service. In EasyJet case, low price is a key element of the brand. Used differential pricing, booking in hop on makes a ticket less expensive and off-peak travelling. Additional, can get the discounts for tickets though online booking.ProductThere are many alternatives for buying the product when EasyJat was evolution its online strategy back then. The EasyJet website also has car rental, hotel booking services and relate to other EasyGroup website. It also provided get to point services.PlaceAllen and Fjermestand (2001) were discovered that that the internet has the greatest implications for place in the marketing mix since the internet has a global reach.Internet booking system and open a telephone reservation system were the new channel structures for book the tickets.Promotion condition of the promotion was usually part of a communications strategy. EasyJet highlights its a number one position among Europes low cost carriers. Prints are in lustrous orange telephone booking number and website link on the side of its aircraft.Competitive StrategyMichael (1980) has described three general types of strategies that are usually used by organisation. There are cost leadership, differentiation strategy and market segmentation strategy. But in EasyJets case, only two elemental of competitive advantage was used cost leadership and differ entiation.Differentiation strategyEasyJet had made prominence attempts to make their product pop out from its low cost airline competitors.McDaniel (2000) mentioned that a product differentiation feature acts as competitive advantage was no longer alive. Also, EasyJet was generally the trend-setter for differentiation its market.Shiv and Alfred (2001) was discovered a matrix for classifies and identifies types of competitive positioning. EasyJet provided differentiation service of many routes to major airports such as Gatwick airport which shifts the focus to high father traffic while abnegate economic and operative advantages of secondary airports.For the merchandise differentiation, EasyJet provide more variables such as have self check in kiosks, unrestricted baggage restraints, easy of use for the website and booking of tickets, these features of differentiation can helps the customers to put up their purchase power with EasyJet.Implementation of StrategyHow is the focussing creating new onus and extended value for customer?EasyJet have the three main components to create new core and extended value for customer, the first was provide the number one safety airline, the second was build up a number one air delight network, and the last was enhance easyjet.com.Provide the number one safety airlineIn 2009, EasyJet dictum the introduction of a new gumshoe Management governance (SMS), its provided a fashion model for safety compliance and suffice the two pillars of safety performance at EasyJet. With active support by the European Aviation Safety Agencys European Commercial Aviation Safety team, the Safety Management System was a continuous improvement process.Build Europes number one air transport networkSlot anxiety EasyJet thinks departure time was really important to all customers, both of business trips and weekend breaks. Different from other competitors, who used smaller, much less convenient airports, and more remote, over 90 per cent of Eas yJet aircraft operate into and out of congested airports. At these busy business and facilities, where slots were at a premium, EasyJet work hard to build up their portfolio across Europe. The slot management team has expertise and considerable capability, with over 60 years of extensive contacts and combined experience at European airports. metrical unit Management Overnight stops can create unnecessary costs. EasyJet were fit(p) aircraft and crew by managing the bases, they were able to maximise revenue and improve efficiency. incessantly under review the base location. For example, since 2006, EasyJet increased the number of aircraft based in Italy and France. such(prenominal) as Luton, they also reduced capacity at under performing bases.How is the management balancing their online and offline promotion methods?Efr manoeuver (2008) mentioned that, in a sink in and mortar business, the allocation of resources between offline and online activities can create difficulties. Espec ially in sell side projects, the two activities can be viewed as competitors. In this case, personnel in charge of offline and online activities may behave as competitors. This contradict may cause problems when the offline side needs to handle the logistics of the online side or when prices need to be determined. Corporate culture, the ability of top management to figure change properly, and the use of innovative process that support collaboration will allPricing StrategyTraditional methods for determining price are the cost-plus and competitor models. Cost-plus means adding up all the costs involved material, labour, rent, overhead, and so forth and adding a percentage mark-up as profit. The competitor model determines price based on what competitors are charging for similar products in the marketplace.Pricing products and services for online sales changes these pricing strategies in subtle slipwayPrice comparison is easier In traditional markets, either the buyer or, more oft en, the seller has more information than the other party, and this situation is exploited in determining a products price. By facilitating price comparison, the EasyJets internet booking system helps created what economists call a perfect market one in which both the buyer and the sell have ubiquitous and equal access to information, usually in the buyers favour.Online and offline goods are priced differently In EasyJets pricing strategy, it was difficult for click and mortar company. Setting prices lower then those offered by the off-line business may lead to internal conflict, whereas setting prices at the same direct will hurt competitiveness.Differentiated pricing can be a pricing strategy For decades, EasyJet have maximized revenues with establish management charging different price for the same product. EasyJet is in the B2C marketplace, one-on-one marketing can extend yield management from a class of customer to individual customers. Bockstedt el al. (2005) also mentioned that, versioning is selling the same good but with different selection and delivery characteristics, is especially effective is selling digitized goods.Last minute deals I forethought that, in practice, last minute deals were sometimes offered, often at very low prices. If the airline decides to launch in such offers, either via a reseller or directly, it can set a new price that will allured the lower end of the tourist segment that didnt purchase tickets. Last minute deals were al shipway made very close to the actual flight time.The boilersuit impact of these changes is good news for the consumer. Internet technologies tend to provide consumers with easier access to pricing information, which increases their bargaining power. To remain competitive and profitable, sellers will have to adopt smarter pricing strategies. Specifically, business will have to look at slipway of using the internet to optimize prices, primarily through greater precision in setting prices, more adapta bility in changing prices, and new ways of customer segmentation for differentiated pricing.What impact is the implementation of strategy having upon the performance of the business?To improve results for any aspect of any business, performance management is vital. The process and systems intended to monitor and improve the performance of an organization and particular(prenominal) management activities such as internet marketing are widely known as performance management systems and are based on the study of performance measurement systems.Defining the performance poetic rhythm frameworkKotler (1997) mentioned that measurement for assess the effectiveness of internet marketing also be related to different levels of marketing control. These include strategic control, profitability control, yearly plan control and efficiency control. Efficiency measures are more touch with minimizing the costs of online marketing while maximizing the returns for different areas of focus such as ac quiring visitors to a web site, converting visitors to outcome or achieving buy up business.Chaffey (2000) presents a framework of measures which can be applied to range of different companies. Metrics for the categories are generated as objectives from internet marketing planning which then need to be monitored to assess the success of strategy and its implementation.Business pieceA portion to business profitability is always the ultimate aim of e-commerce. To assess this, leading companies set an internet contribution target of achieving a certain proportion of sales via the channel. When EasyJet (www.easyjet.com) launched its e-commerce facility in 1998, it set an internet contribution target of 30 per cent by 2000. They put the resources and communications plan in place to achieve this and their target was reached in 1999. Assessing contribution is more difficult for a company that can not sell products online, but the role of the internet in influencing purchase should be as sessed. Discounted bullion flow techniques are used to assess the rate of return over time. Service contribution from e-channels should also be assessed.Tools and techniques for elateing metric and summarizing resultsTechniques to collect metrics include the collection of site visitor activity data such as that collected from site log files, the collection of metrics about outcomes such as online sales or email enquiries and traditional marketing research techniques such as questionnaires and focus groups which collect information on the customers experience on the web site. I start by describing methods for collecting site visitor activity and then review more traditional techniques of market research which assess the customer experience.EasyJet was used customer relationship management CRM software to enhance its online booking server and reduce operational costs.Tony (2006) mentioned that CRM was specifically about gather customers information to provide their own customer se rvice through the web. The CRM system was centralised all the data and information and allows innovations in customer service to be deployed and tested. An email marketing automation tool and a pilot voice self service solution is also can provide and enhanced levels of customer support with EasyJet.Legal and ethical issuesPlamer (2005) mentioned that business ethics defines how a company integrates the core values of honesty, trust, respect, and fairness into its policies and practices and complies with legal standards and regulations. The scope of business ethics has grow to encompass a companys actions with regard not only to how it treats employees and obeys laws but to the character and quality of the relationships with shareholders, customers, business partners, suppliers, the community, environment, and future coevalss. European companies especially have embraced this expanded definition of ethics.e-Commerce ethical issuesTwo additional e-commerce related ethical issues are non work related use of the internet and codes of ethics.Non work related use of the internetEasyJet had a policy to avoid the employees used email and the web for non work related purposes. The use of company property for email and inter use creates risk. The degree of risk depends on the extent to which the company has implemented policies and procedure to prevent and detect illegal uses. EasyJet was also held liable for their employees use of email to harass another employee, participate in illegal gambling, or distribute child pornography. Some employees may use the company email to advertise their own business. Used other embodied computing facilities for private purposes may be a problem.Codes of ethicsVolonino and Robinson (2004) were discovered that a practical and necessary get along to limit non work related internet surfing is an internet Acceptable Use Policy (AUP) that all employees must change course to. Without a formal AUP, it was much more difficult to enforce congenial and eliminate unacceptable behaviours and punish violators. Whenever a user signs on to the corporate network, the user should see a reminder of the AUP and be notified that online activates are monitored. Such notification should be a part of a code of ethics.EasyJet have some corporate web policy guidelines, such as issue written AUP guidelines about employee use of the internet and communication systems including email and flare messaging make it clear to employees that they cannot use copyrighted or mark material without permission. Post disclaimers of responsibility concerning content of online forums and chat sessions. Make sure that web content and activity comply with the laws in other countries, such as those governing contests and privacy.Corporate Social ResponsibilityA juvenile report (University of Exeter Business School 2010) has suggested that Corporate Social Responsibility (CSR) was an approach to business that takes account of issues combine with envir onment and society in addition to the more traditional business consider of profits and shareholders. CSR was not a new concept, it has evolved from its provenance in 19 century corporate kindliness and much attention both in policy circles and academic.EasyJets goal was ensure have an efficient as possible in the existing business, both on the terms and in air, and found some method to downplay its environmental impact in the future. The below details was show the EasyJet how to manage and monitor its environmental impact.The impact of EasyJet on the environment was involved the followingGreenhouse gas emissions water vapour, nitric oxide and nitrogen dioxide (together NOx), carbon dioxide (CO2), some of which at altitude.Particulate emissions soot and sulphate particles, some of which at altitude. bollocks up chemical was involved in aircraft.Noise.EasyJet didnt have full CSR policy, buy they have an Environmental Code with three promises, first one was to be environmentally ef ficient in the air, and the second was an environmentally efficient on the ground and last was to lead in shaping a greener future for aviation.EasyJet strives to be efficient in the airEasyJet was investment in the latest engine room such as buy the new aircraft, the new technology aircraft were more fuel efficient than older models. Efficient use of aircraft, each of Airbus A319s carries 26 per cent more seats than the norm and potentially carries 57 per cent more passengers per flight than the European norm.Provide direct point to point flights, avoidance of air congestion and monitors its performance relative to other transport options.EasyJet strives to be efficient on the groundEasyJet policy was to use the most efficient and simple ground equipment and simple airport infrastructure requirements. EasyJet was also keeps surface journeys to a minimum and minimal waste, such as no frills service was designed.EasyJet leads the way in shaping a greener futureEasyJet cause Europea n policy on making air traffic system more efficient and actively engaging with aircraft manufacturers to influence next generation technology.