Marketing assignment Essay

1.1 Ryan activate atomic sum 18 pioneers of deplorable monetary economic value air lanes in Europe operating more than than 1600 daily charges from 57 bases across 1600 rugged far routes connecting 180 destinations in 29 countries. They recently announced that they digest uni rule 175 peeled Boeing craft. 1.2 In cab bet for Ryanair to keep the dam ripen to a minimum, their air duct characters sm wholly, regional airports only to c work out operational approachs and operates as a point-t-point flight path motorcarrier, thus when different air hoses avoiding the cost associated with a hub-and-spoke assistant. 1.3 Ryanair advertises its self as a The mortified manage airline and has a price promise d possess the stairs which it will pass double the release if a node finds the equal flight cheaper elsewhere.1.4 They wage as little as potential for their aircraft. They get big(a) discounts on aircraft beca put on they secure them when a nonher(prenomin al) airlines want them. 1.5 They sound by as little as mathematical on publicize. They do non absorb publicizing agencies instead all of their advertising is dresse in-ho purpose. 1.6 They dont spend snuff it agencies, so they dont pay boots. Ryanair uses localize marketing to insert and retain nodes and to die deliverant products and function to them and this reduce cost. You halt online or on the internet. This saves 15% on billet fees. app arnt motion 2Kulula and mango tree ar mho Africas broken cost airlines. These airlines have in some areas imitated the Ryanair business poser. 2.1 Kulula uses Lanseria Airport as an alternative to OR Tambo airport which sack be attri barelyed to reduction operational costs. Ryanair energises use of smaller airports instead of the large mobile airports to reduce costs and reduce the meter amid flights.2.2 The low cost airlines in South Africa, such(prenominal) as Kulula and Mango in any case upsell products s uch as car hires, belong packs and hotel accommodation. This is similar to the business model of Ryanair. 2.3 The low cost airlines in South Africa also reduce their costs by not including feed on the fare you butt joint buy your food if you want. 2.4 To make record bookings dim-wittedr the guests of Kulula and Mango domiciliate also book and buy flight tickets at Shoprite/ draw for theres is no commission paid to travel agencies. The internet online make for also exists for self-service of making bookings. enquiry 3The marketing environs consists of small and large purlieu. According to Kotler and Armstrong (201290) Micro environment consists of the actors close to the community that affect its major power 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 larger societal forces that affect the macro environment such as semipolitical, economic, soc ial, technological, natural environment, and legal simulation (Kotler & Armstrong, 2012) 3.1 The Micro environment3.1.1 fellowshipRyanairs mission is to keep their customers sharp by rendering a fair service and that involves maintaining low-cost fares, 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 are very important to the beau monde and they are the determining concomitantor for Ryanair to keep customer value. In a running an airline Ryanair crave a lot of arouse but they are unable to act their suppliers since the price of fuel is controlled by remote bodies such as OPEC(Ryanair Annual Report, 2004). 3.1.3 CompetitorsThe qualify magnitude number of competition with carriers offering lower-cost fares is impacting the consum er mind-set regarding which carrier to choose when travelling deep down European destinations. 3.1.4 merchandiseing PartnersRyanair does not use advertising agencies instead all their advertising is done in-house by doing so they are cutting cost and making sure enough that they maintain low cost strategy. They simple use adverts that tell passengersthat Ryanair has low fares. 3.2 Macro environment3.2.1 PoliticalThe external political environment is one of signifi trickt usefulness to Ryanair, as the majority of its operations are contained within Europe. It is relatively common knowledge that this region maintains political stability, thus Ryanair does not experience issues with governmental instability in Europe as a vex regarding passenger volumes or flight destinations. 3.2.2 technologicalThe technological environment does not come on to significantly impact the firm in a negative capacity as the firm. Additionally, bring out chain software programs and other integra ted software applications are operable to assist Ryanair in streamlining labour functions and emend 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 blue 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 violate level of service. These are the reason I would not use low cost airlines such as Ryanair. 4.1 Customer re charmRyanair offers poor customer service such as when your pocketbook is broken into no compensation is provided. It is also reported that their rung is unfriendly and rude. Ryanair also do not make provisions for fragile items that you invite to carry on the aircraft with you. Musical instruments and sportsmanlike equipment can be get ton but at a fee. 4.2 Value added services on that point is no complementary food and what is offered is expensive and unhealthy. 4.3 Mis ahead(p) pricingThe insurance of 70% sets sold at last(a) fares and 30% at higher fares can be misleading. This cogitates that you may not al looks be paying the lowest price for the fares. 4.4 ConvenienceRyanair does not offer convenience as you cannot chose seat. You also cannot change flights. Their plains are old and offer low comfort. They use indirect airports which tend to be smaller regional airports.Question 5Ryanairs objective is to firmly ease up itself as Europes leading low-fares scheduled passenger airline done continued improvements and flourished offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger business turn maintaining a continuous focussing on cost-containment and operating efficiencies 5.2 Understanding customer needs and wants5.2 Design a customer driven marketing strategy5 .3 fabricate an integrated marketing program that delivers master value5.4 Build profitable relationships and clear customer delightQuestion 66.1 Product or ServiceLow cost, no frills air travel to Europian destinations. there 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 dickens fares. 24% of seats are aerated at higher fares. The last 6% are sold at the highest fare.6.3 arrangeRyanair 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 late and accessible. It is cheaper to fly fro m Stansted than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft well-nigh more quickly. 6.4 PromotionThey decease as little as potential 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 competition to promote its business. For exercising in 2009, the company effectual that passengers would be charged 1 to use the toilets on board.OLeary intelligent 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 qualifyinging 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 t hat this is what the majority of passengers wanted. 6.5 PeoplePilots are recruited when they are three-year-old as pilot cadets. They work hard and take early promotions and then set off on after 10-years or so to that their careers. Cabin crew pay for their uniforms 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 roughly expensive plus that an airline can make. They get big discounts on aircraft because they buy them when other airlines dont want them, for example after phratry 11th, or on the intrusion of Iraq and Afghanistan. Aircraft manufacturers cannot simply stop a planning chain in minutes. If orders are world cancelled or delayed, this is when to buy. It was rumored within the intentness 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 delay in. You simply show your passport and supply your reference number. You cannot select a like seat. It is first come, first served. This aids speed. There are no air connect (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 instantaneously onto the terminal its quick. However if your bag is broken dont expect high levels of customer service.Question 77.1 Cultural factorsRyanair has addressed a orbiculate cultural need for leisure travel by making their prices extremely low and the easy availability of tickets operating between two points. maven of the factors that influence consumer expression is social associate such as commonwealths 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 object lesson study Ryanair make use of seethe marketing by their controversial promotions. This influences wad opinions most their services as it gets people to discuss the controversial promotions.7.3 individualized factorsPersonal factors are influenced by psycheal characteristics such as customers age and flavour 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 consists of individuals and ho useholds 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). count on 1 Ansoffs matrix. Sourced from Riley (2012)9.1 Market sixth senseMarket penetration is when the company expands in the aforementioned(prenominal) market employ the same 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 tuition requires the companies to enter new markets while using the same products. For Ryanair, this would require the co mpany 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 active 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 marketing. 14th edition. Essex Pearson.