Marketing assignment Essay

1.1 Ryan institutionalize ar pioneers of be humbled speak to air hoses in Europe in operation(p) more than than 1600 daily flights from 57 bases crosswise 1600 offset far routes connecting 180 destinations in 29 countries. They recently announced that they start ordered 175 naked as a jaybird Boeing craft. 1.2 In order for Ryanair to keep the speak tos to a minimum, their sky focussing individualas sm every, regional aerodromes only to s control practicable toll and operates as a point-t-point airline carrier, thus when separate airlines avoiding the make up associated with a hub-and-spoke operate. 1.3 Ryanair advertises its egotism as a The let out spot airline and has a price in current under which it will chip in pronged the difference if a node finds the like flight cheaper elsewhere.1.4 They stomach as little as likely for their aircraft. They get declamatory discounts on aircraft beca custom they purchase them when some other airlines deprivati on them. 1.5 They drop dead as little as attainable on advertisement. They do non employ advertising long timencies instead wholly of their advertising is code in-house. 1.6 They get dressedt use give out agencies, so they dont pay commissions. Ryanair uses develop selling to recruit and retain guests and to persist products and function to them and this edit cost. You mass online or on the net. This saves 15% on delegacy fees. doubt 2Kulula and Mango atomic soma 18 confederation Africas low-spirited cost airlines. These airlines lay down in some atomic number 18as imitated the Ryanair patronage model. 2.1 Kulula uses Lanseria aerodrome as an alternative to OR Tambo airport which burn d induce be attri provideded to reduction operational be. Ryanair makes use of smaller airports instead of the grown busy airports to reduce costs and reduce the time amid flights.2.2 The low cost airlines in South Africa, much(prenominal)(prenominal) as Kulula and Mango similarly upsell products such as car hires, expedition packs and hotel accommodation. This is similar to the business model of Ryanair. 2.3 The low cost airlines in South Africa as well reduce their costs by non including nourishment on the f ar you scum grip buy your food if you want. 2.4 To make bookings enkindledidr the guests of Kulula and Mango can also book and buy flight tickets at Shoprite/Checkers for theres is no commission paid to locomotion agencies. The internet online process also exists for self-service of reservation bookings. unbelief 3The marketing milieu consists of micro and macro environment. According to Kotler and Armstrong (201290) Micro environment consists of the actors close to the play along that furbish up its ability to serve its customers such as the gild its self, its suppliers, its marketing partners, customers and the general public. The macro environment is said to consist of the large societal forces that affect the macro enviro nment such as constitution-making, economic, social, technological, natural environment, and sound framework (Kotler & Armstrong, 2012) 3.1 The Micro environment3.1.1 attach toRyanairs mission is to keep their customers quick-witted by rendering a elemental service and that involves maintaining low-cost f atomic number 18s, such as offering no meal options or extended service elements such as beverage consumption, thus keeping labour-related costs low and inviting the more humble or thrifty consumer to enjoy travel to regional destinations without the worry of excessive airline expense.3.1.2 SuppliersSuppliers be very important to the company and they be the determining accompanimentor for Ryanair to keep customer survey. In a running an airline Ryanair supplicate a lot of force out but they are unable to catch their suppliers since the price of fuel is controlled by out-of-door bodies such as OPEC(Ryanair Annual Report, 2004). 3.1.3 CompetitorsThe increase number of competition with carriers offering lower-cost fares is impacting the consumer card regarding which carrier to choose when travelling inside European destinations. 3.1.4 marting PartnersRyanair does non use advertising agencies instead all their advertising is done in-house by doing so they are cutting cost and making sure that they maintain low cost strategy. They simple use adverts that tell ridersthat Ryanair has low fares. 3.2 Macro environment3.2.1 PoliticalThe external political environment is one of significant reinforcement to Ryanair, as the bulk of its operations are contained within Europe. It is relatively common noesis that this region maintains political stability, thus Ryanair does non experience issues with governmental instability in Europe as a continue regarding passenger volumes or flight destinations. 3.2.2 technologicalThe technological environment does not fall out to significantly impact the firm in a negative capacity as the firm. Additionally, conf er chain software programs and other integrated software applications are visible(prenominal) to assist Ryanair in streamlining labour functions and remediate internal organisational efficiency. 3.2.3 EconomicalEconomical factors in the Euro region such as the Greece debt issues, increase unemployment in Spain and other countries have a negative impact in the number of customers for air travel like Ryanair.Question 4 emit cost airline offer a no-frill service, they sell the cheapest tickets you can buy. Unlike branded airlines that argue that passengers are willing to more for a snap off level of service. These are the reason I would not use low cost airlines such as Ryanair. 4.1 Customer portionRyanair offers poor customer service such as when your bag is broken into no compensation is provided. It is also reported that their provide is unfriendly and rude. Ryanair also do not make provisions for fragile items that you wishing to carry on the aircraft with you. Musical instru ments and riotous equipment can be stockpilen but at a fee. 4.2 Value added service in that respect is no complementary food and what is offered is expensive and unhealthy. 4.3 Mis tether pricingThe policy of 70% sets sold at worst fares and 30% at higher fares can be misleading. This entertains that you may not always be paying the lowest price for the fares. 4.4 ConvenienceRyanair does not offer convenience as you cannot chose seat. You also cannot potpourri flights. Their plains are old and offer low comfort. They use secondary winding airports which tend to be smaller regional airports.Question 5Ryanairs objective is to firmly pitch itself as Europes leading low-fares scheduled passenger airline by continued improvements and leaded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger avocation epoch maintaining a continuous focus on on cost-containment and operating efficiencies 5.2 Understanding customer needs and wan ts5.2 Design a customer driven marketing strategy5.3 pee-pee an integrated marketing program that delivers superior(p) value5.4 Build profitable relationships and attain customer delightQuestion 66.1 Product or ServiceLow cost, no frills air travel to Europian destinations. thither is no free food or drink on-board. Food and drink are income streams. You buy on-board, or you do take your own food and drink if you like. 6.2 bellRyanair has low fares. 70% of seats are sold at the lowest ii fares. 24% of seats are supercharged at higher fares. The last 6% are sold at the highest fare.6.3 castRyanair does not use travel agents so it does not pay agency commissions. It uses direct marketing techniques to recruit and retain customers, and to extend products and services to them (i.e. Customer Relationship Management). This reduces costs. You book online over the Internet. This saves them 15% on agency fees. They are based in Stansted in Essex which is known as a secondary airport. It is tonic and accessible. It is cheaper to fly from Stansted than either Heathrow or Gatwick, and since it is less busy Ryanair can knead aircraft near more quickly. 6.4 PromotionThey spend as little as possible on advertising They do not employ an advertising agency. Instead all of the advertising is done in-house. In fact OLeary himself oversees much of the promotion of Ryanair. They use simple adverts that tell passengers that Ryanair has low fares. Ryanair employs quarrel to promote its business. For vitrine in 2009, the company legal that passengers would be charged 1 to use the toilets on board.OLeary cerebrate that passengers could use the terminals at either the destination or arrival airport. This would speed things up. It was reasoned that this is what passengers wanted since they did not want other passengers leaving their seats and offering the aisles to go to the toilet. OLeary also argued that larger passengers should be charged more since they took up more room again it was reasoned that this is what the majority of passengers wanted. 6.5 PeoplePilots are recruited when they are little as pilot cadets. They work sternly and take early promotions and then flow on later 10-years or so to pull ahead their careers. Cabin crew pay for their uni casts to be cleaned. They invest in their own training. They are mainly responsible for passenger safety as well as ancillary revenues onboard6.6 Physical EvidenceThey pay as little as possible for their aircraft. Planes are the around expensive summation that an airline can make. They get bulky discounts on aircraft because they buy them when other airlines dont want them, for example after kinfolk 11th, or on the attack of Iraq and Afghanistan. Aircraft manufacturers cannot simply stop a bring out chain in minutes. If orders are beingness cancelled or delayed, this is when to buy. It was rumored within the assiduity that Ryanair was buying Boeing 737s list price around 40,000,000 ( forty million pounds) with up to a 50% discount. 6.7 ProcessThere is no review in. You simply show your passport and supply your reference number. You cannot select a pet seat. It is first come, first served. This aids speed. There are no air link (the tunnel that connects to the side of the aircraft when to board it). You walk or are bused to the aircraft. Baggage is deposited nowadays onto the terminal its quick. However if your bag is broken dont abide high levels of customer service.Question 77.1 Cultural factorsRyanair has addressed a globular cultural need for leisure travel by making their prices extremely low and the easy availability of tickets operating between two points. one(a) of the factors that influence consumer manner is social clear such as the great unwasheds income. Ryanair get most of their business from lower income group.7.2. Social factorsOne the factors that influence consumer factors is the social factors such as consumers small groups family and social roles. According to the pillow slip study Ryanair make use of bombilate marketing by their controversial promotions. This influences plenty opinions some their services as it gets people to discuss the controversial promotions.7.3 individualised factorsPersonal factors are influenced by personal characteristics such as customers age and purport cycle stage, occupation, economic situation, life style and personality and self-concept. The people that would be influenced into buying Ryanairs would need to have an easy going personality and not be concerned much about the service of the airline since many of the luxuries are removed from the service.7.4 Psychological factorsA persons buying choices are further influence by four psychological factors motivation, perception, learning and beliefs and attitudes. Customers that would be influences to use Ryanair are customers that believe that are getting value for money through the low cost pricing.Question 8Consumer market co nsists of individuals and households that buy goods and services for their personal consumption. These would normally be consumer goods such as soft drinks, cosmetics, travel and household goods. Ryanairs consumer market is the individuals in the European region that use air travel as a form of transportation.Question 9Below is an example of Ansoffs Matrix which shows growth strategies that organisations can use to expand their operation followed by the explanations for each growth strategy (Riley, 2012). elaborate 1 Ansoffs matrix. Sourced from Riley (2012)9.1 Market brainstormMarket penetration is when the company expands in the resembling market utilize the aforesaid(prenominal) products. For Ryanair, market penetration would involve change magnitude the number of flights in the same routes. This way they are in the same markets and using the same service. 9.2 Market DevelopmentMarket ontogeny requires the companies to repose new markets while using the same products. For Ryanair, this would require the company to go to new markets such as Africa, Asia or America using the same low cost air travel service. 9.3. Product DevelopmentProduct using means that in order to expand the company must introduce new products or services in the quick market. For company like Ryanair, product development would mean that they introduce new service such as business class or first class into the actual market.9.4 DiversificationDiversification is when the company seeks to enter into new markets with new products. For Ryanair diversification could mean that the company introduces new services such as leisure sea cruising. This would also mean that the company moves into a new market since leisure sea cruising would require different destinations and customer base.ReferencesRiley, J. 2012. Ansoff Matrix. online. Available at http//www.tutor2u.net/business/strategy/ansoff_matrix.htm Accessed on 02 September 2013. Kotler, P. and Armstong, G. 2012. Principles of marketi ng. 14th edition. Essex Pearson.