Posted at 12.17.2018
This article undertakes a study of EasyJet e-marketing strategies and its execution outlining its effect on EasyJet operations as a whole.
EasyJet is an airline company operating in European countries with its bottom part in UK. It was founded by Stelios Haji-Ioannou in mid 1995. EasyJet's businesses are paperless, with all business ventures done through the internet.
EasyJet has experienced an effective online business due to its e-market strategy that seeks to provide low priced no frills air travel. Beneath the strong and charismatic control of Stellios, it offers achieved its goal by creating brand understanding, adoption of your efficiency-driven operating model and maintenance of a high level client satisfaction.
EasyJet conducted its business using mobile phone in order to achieve the goal of undercutting traditional carriers and increase cost savings by direct offering. Business was later on conducted online aiming to cut down cost onto it call centers, to make soaring affordable also to compete despite having busses by appealing to people who have normally not travelled by air.
EasyJet does this by using an online site which was created with high usability and has an intuitive navigation allowing individual to do reservation and purchase ticket online. EasyJet also does promotion on publication by operating internet only advertising, giving discounts to consumers who purchase online only. This mix has helped in EasyJet advertising supplying impressive results by reaching tremendous sales results.
The design, framework, usability and usefulness of its website have empowered EasyJet to secure leverage over its competitors. The most important simple truth is that EasyJet has designed overall flexibility in its e-marketing strategy enabling it to foresee changes and further develop its ways of counter-act consequently. The impact of EasyJet e-market strategy is noticeable on the growth that EasyJet has appreciated through the years
In standard the e-marketing strategy followed by EasyJet works for it. EasyJet is actually aware of its encircling environment, and appreciates the magnitude of meticulously monitoring and control of its strategy, to be able to stay ahead in an environment that constantly evolves by keeping a close vision on any taking place changes. It's apparent that EasyJet takes few dangers and applies firm business guidelines while carefully discovering the marketplace.
EasyJet can be an airline company based in Britain using its head office at London Luton Air port. It functions 500 home and international routes between 118 countries within Europe, Western Asia and North Africa taking more individuals than every other UK based airline. Its father or mother company EasyJet plc is listed in London Stock Exchange. (Wikipedia, n. d).
EasyJet Airline was founded in Britain by Stellios Haji-Ioannou, holder of experts' degree running a business and son of an Greek Cypriot shipping and delivery tycoon. He started the business with 5 million loaned by his dad after he was contacted by Virgin Atlantic's Greek franchisee to invest in a London-Athens course and decided to start his own airline instead. The business started out with two leased airplanes functioning in two routes; London Luton to Edinburgh and Glasgow respectively and later Aberdeen.
Stellios was motivated by theory of price elasticity applied by Southwest Airlines located in the United States. Southwest air fares were so low that the flight attracted people who would not have normally journeyed by air. It aimed to contend with busses as much as it did with other airline companies.
In the beginning, EasyJet controlled a paper air travel contracting English World Airlines to travel and maintain its two 148 seats leased planes. Its basic in London was at Low-rent Luton air-port. After acquiring its first aircraft, EasyJet started contending against Uk Airways and KLM on the path to Amsterdam concentrating on short-haul routes looking to offer half of its rivals' fare. Stellios down the road capitalized on the Swiss interconnection buying 40% stake in a failing charter airline; TEA Switzerland.
It is believed that, initially EasyJet spent all its income on advertising, offering cheap air fares. A particular exemplory case of billboards declaring a fare of 29 for London-Scotland option which was one-tenth the price charged by British Airways. Advertising on TV aimed customers to bypass travel agents and directly call the business reservation number which was also colored on all EasyJet planes. Direct offering was the strategy from start and later the web became EasyJet's preferred arranging media.
Dress code because of its employees was denims and orange sweatshirts which mirrored a informal yet fast-paced attitude. Only pilots were allowed to wear neck ties. Company culture of EasyJet was referred to as 'brutally clear', allowing employees in all paperless offices to talk about all sorts of information except payroll, by checking all its documents into some type of computer system accessible to all or any employees.
The company is low fat on services having no in-flight catering, charging for appetizers and soft drinks and having no cancellations or refunds option. The three secrets to EasyJet strategy were Simplification, Frugality and Friendliness with a motto of 'Easy come, easy go'. Some people were apprehensive of low-rate airlines compromising safety, EasyJet experienced to change tactic in advertising by describing why it was possible to lessen fares without compromising safety. EasyJet activated traffic in every the markets it came into by producing price competition to market that was previously driven by free offers such as repeated flier miles. This empowered EasyJet to turn a profit of 2 million in the year 1997.
In 2000 fiscal season, EasyJet declared a earnings of $33 million and floated a quarter of the company's stock on the London Stock Exchange with shares offered entirely to institutional buyers, bringing up 190 million that was used to acquire 32 new Boeing 737 airplanes. After it merged with Go Journey in August 2002, it became one of Europe's biggest and leading low priced airlines. (Business Essays, n. d)
Since its establishment in middle 1990s, EasyJet has relished a rapid enlargement growing through the combo of mergers, acquisitions and bottom openings as a result of demand of low-cost air travel by consumers. It now boasts a fleet of over 180 aircrafts with 20 bases across European countries and is rated as the second largest low-cost carrier in Europe having taken 45. 2 million people in 2009 2009. (Wikipedia, n. d).
EasyJet has already established its fare talk about of legal battles, typically the most popular one being with British Airways. It has additionally encountered criticism in Germany for not observing the European Union law on payment and on environmental issues because of its advertising campaign that EasyJet aircrafts made 22% less emission compared to its rivals.
Services proposed by EasyJet include real-time on-line booking, telephone booking for three months before flight bookings, in-flight newspapers containing destination courses, trip and accommodation products, car leases, airport parking, travel insurance and on-board sales of fragrances, makeup etc.
A business will not operate in isolation. Business reactions and decisions rely upon what happens on its environment. The factors going on outside a business are known as exterior factors or influences. The external factors have an impact on main internal operations and the aims and strategies of the organization. Hence, it is important to recognize factors that might in turn affect lots of vital variables that are likely to influence the organization's supply and demand levels and procedure costs (Kotter & Schlesinger, 1991; Johnson & Scholes, 1993).
The strategy of EasyJet is to provide low priced, no-frills air travelling. This strategy has allowed EasyJet to prosper. It really is however, important to continually strive to meet customer needs and stay static in a competitive position by assessing market fads and situation. This calls up the necessity to do situational analysis that involves the learning of important business elements such as opponents, customers, costs, climate (exterior environment), collaborators and the business itself. Doing a situational analysis for an organization supplies the knowledge and framework for planning by describing the company's competitive position, financial and functioning conditions and the general state of the company's internal and exterior affairs. To accomplish this methods such as SWOT and Infestations are utilized.
PEST means Political, Economical, Sociable and Technological. PEST evaluation is a construction used to categorize environmental issues that influences an organization Politically, Financially, Socially and Technologically.
Papers4you. com (n. d) quoting Kotler (1998) and Porter (1985) says that:
"Kotler (1998) says that PEST analysis is a good strategic tool for understanding market growth or decline, business position, potential and way for operations. The headings of Infestations are a framework of reviewing a predicament, and can in addition to SWOT and Porter's Five Forces models, be applied by companies to review a strategic guidelines, including marketing proposition. The use of PEST analysis can be seen effective for business and tactical planning, market planning, business and product development and research reports. PEST also means that company's performance is aligned positively with the powerful makes of change that are impacting business environment (Porter, 1985). PEST is useful when a company makes a decision to enter into its business procedures into new market segments and new countries. The usage of PEST, in this case, helps to break free of unconscious assumptions, and help effectively adjust to the realities of the new environment. " (paperwork4you. com, n. d)
PEST examination is therefore useful tool for understanding and identifying the market development or drop of a business, the position as well as the actual and direction of a business. PEST research for EasyJet shows the following:
The change of federal or policy may influence the business account as new regulations are launched.
EasyJet has been involved with various legal disputes an example is when Germany criticized EasyJet for not watching the European Union law on compensation.
Political changes in the countries where EasyJet has routes. EasyJet works in different countries across European countries; changes in these countries may have an effect on its businesses.
Local federal councils object to noises and prohibit building of new runways.
Governments wanting to promote travel and leisure in their countries may welcome and work in the favor of EasyJet.
Different taxes that are costed in various countries for petrol, landing, airport tax etc.
Changes in occupation laws, trade restrictions and tariffs has influences on EasyJet business functions for example in April 2000, EasyJet was required to launch a advertising campaign to stop Barclays from increasing getting fees by 300%.
Economic recession where some countries economy might grow and some might collapse.
Uncertainty due to the cost fluctuation of energy and gas.
Business consists of having loans; change of interest rates and forex rates may affect EasyJet permanent loans.
There has been unrest in consumer's attitude due to the September 11th episodes which caused a substantial decrease in the confidence of airline travelers.
Flying with EasyJet may entice companies with employees doing frequent business trip since EasyJet do not offer in-flight luxuries thus less cost to companies.
Stability in economy and extension of tourism means many people want to soar away for getaways.
Low cost, no frills appeals to wider demographic of consumers including people who have otherwise not think of going by air.
Outbreak of contagious diseases including the bird flu, SARS could cause loss of travelers.
Safety solution applied while on air and on the ground conveys a good image of the company thus many people feel safe to travel with EasyJet planes.
The friendliness and efficiency of EasyJet employees make customers to always want to travel by EasyJet.
The development of inhabitants means more travelers and people in a certain life stage have more disposable income to spend.
EasyJet works an environmental friendly business; depending entirely on the internet operating paperless operations this means less waste. Thus giving it an optimistic outlook from a world that is so environmental mindful.
The rate of which technology changes has favored EasyJet by which makes it possible to conduct paperless functions therefore reducing procedure costs. IT technology is available in competitive price thus permitting EasyJet to create a system that can be remotely accessed by all its employees.
The progress in technology also ensures the option of spares and maintenance services to its fleet of airplanes.
Technology has become cheaper; it is cost effective in the performing of the company but at the same time the entries to barrier are lower for opponents to join in.
SWOT is an important part of tactical planning which involves a scan of inner and external organization environment. SWOT research provides helpful information for appropriate organizations capabilities and resources to the competitive environment it manages in. SWOT research is used to look for the Strengths, Weaknesses, Opportunities and Hazards of a business.
EasyJet is under the strong and charismatic control of Stellios who offers great entrepreneurial vision, is adaptable to change and can identify business opportunities
EasyJet is original and has very effective promotional strategies.
EasyJet is serving lots of the leading city areas across Europe and it is leading as supplier of low budget and no added costs flights.
It is a well known, respected and named the leading brand in travel industry in UK.
Has a minimal running cost due to the use of internet supplying its customers the good thing about spending money on local calls.
EasyJet is easily recognizable and distinguishable off their competitors due to the high distinctive corporate and business colors on all of its aeroplanes.
EasyJet has varied into other market such as car rental and internet cafes making life possible for their customers by being served by same company when demanding these services.
Has a great customer service for example EasyJet offers refunds for plane tickets that have been postponed for 4 hours or even more.
It operates an efficient and fast service with the average turnaround time of thirty minutes or below thus is able to maintain a headache free and reliable service to its individuals.
It has a very user-friendly website showing fully the price breakdown structure for traveler planned vacations. Divulging the entire breakdown price plan helps prevent any concealed charges to customers when confirming their booking.
It has a advanced system that offers online promotion alerts by e-mail to existing customers.
EasyJet relies very much on personal computers for booking and information storage space that could be dangerous.
EasyJet flies solely within European countries.
EasyJet will not offer free in-flight food services.
The extreme competitiveness of the home flights industry can restrict and shape pricing policies on some of EasyJet's less profitable routes. EasyJet has to charge low rates even on these routes to compete with their competitors which are Plane", BMI Baby, Ryan Air and other smaller impartial companies.
Possible beginning of other routes to major places in European countries such as from Dublin to UK and new links into business flyers to and from UK.
Restructured types of the soar on the wall documentaries would supply the EasyJet brand with more coverage and publicity.
Offering free in-flight refreshments would be a bonus and would increase comfort to EasyJet customers.
Threat of substitution where travelers travelling as a group might choose other means to save on travelling expenses.
Other airlines flying the same routes contend fiercely on price forcing pressure on margin on popular plane tickets and time slot machine games.
External market causes such as the surge of price of olive oil can have major effect on working costs posing significant strain on the income of less popular routes and time slot machines.
Day to day procedures of EasyJet can be significantly affected by pressure from unions and employee relations committees, attacks have proved to be costly to the company and its image.
Economic downturn may decrease the number of casual and business travelers.
To fully understand what e-marketing entails, it is worthwhile to revisit the initial definition of marketing before it was prefixed by 'e'. Nowsell. com, (n. d) quotes cim. co. uk description of marketing as follows:
"Marketing is the management process responsible for determining, anticipating and satisfying customer requirements profitably" (nowsell. com, n. d)
The definition accentuates the concentrate of marketing on the client, while implying the need to web page link other business functions to achieve the required profitability.
E-marketing is therefore defined as achieving marketing goals by using electronic digital communication technology which includes internet, eBooks, e-mail, directories, wireless cell phones and digital tv set. (nowsell. com, n. d). The web, as noted by Smith and Chaffey (2001) may be used to support the seeks mentioned in the definition i. e. identifying, anticipating and satisfying the following:
Identifying - make an online search for general market trends to discover customer needs.
Anticipating - the internet provides an additional route for customers to access information and makes purchases. Understanding this demand is basis to governing resource circulation to e-marketing.
Satisfying - an important success factor in e-marketing is completing customer satisfaction through electronic channel by making sure that the website performs properly and is simple to utilize.
Planning is vital in order to succeed in e-marketing. An effective e-marketing plan depends on traditional disciplines and planning techniques that is modified for the digital advertising environment and blended with digital marketing communication techniques. SOSTAC is a general platform used for e-marketing planning. SOSTAC stands for:
S - Situational evaluation (where are we now)
O - Goals (where do we want to go)
S - Strategy (how do we make it happen)
T - Tactics (the facts of strategy)
A - Action (or implementation)
C - Control (evaluation, measurement)
The Situational research above has identified the current position of EasyJet using SWOT and PEST methods. The research shows EasyJet holds a solid position and has gained a competitive edge due to the use of technology - internet specifically - in performing its business procedures.
The target of EasyJet is to increase online earnings, lessen cost and retain their customers. EasyJet has accomplished this by creation of brand awareness, adoption of an efficiency-driven operating model and maintenance of a higher level client satisfaction.
Strategy is the process of expanding options to achieve a desired outcome. E-marketing strategy therefore involves steps considered and procedure implemented for marketing a brandname through the website. (buzzle. com, n. d). The important aspect in any e-marketing strategy is the business website which must be properly formatted and designed, to be able to give a good impression and draw in users and so increase sales.
EasyJet uses internet to meet its goals. EasyJet has a thorough website with good usability and composition that presents EasyJet services without the use of redundant design and advertisement which usually distracts website visitors. EasyJet proceeded to go online as a result of need to reduce cost. EasyJet targeted at making traveling affordable and urged travelers to package direct and cut out travel companies. An overview of EasyJet lists the following strategies:
Reduction and syndication of costs by online reservation.
No tickets during travel, just an e-mail with the booking reference is enough to table the airplane. This reduces responsibilities and costs associated with issuing, distributing, control and reconciling tickets.
Paperless operations making the internet useful in other areas of the business such as administration and management.
EasyJet URL is imprinted alongside all its planes. The business aimed to scale down its call centers functions by selling the majority of the tickets online. By putting the company URL just about everywhere, it increased the use of the website which helped EasyJet get more customers thus making EasyJet flights prices cheaper.
EasyJet also uses the website as an competitive tool. An example is the competition to forecast BA losses on 'Go' tempting visitors with awards. EasyJet also experienced previously used a Television series to market itself in every household in the united kingdom.
The value proposition and differential good thing about this strategy can be seen on the benefits offered to customers as well as cost slicing experience by EasyJet. EasyJet manages cheaply so that it is possible to give its customers reliable, convenient and great affordability service.
The EasyJet market combine (i. e. the 4ps: product, price, position and advertising) can easily be examined at the structure of its website. EasyJet has recognized its website audience as those on-line guests living in European countries necessitating cheap, comfortable and thorough real time travel without having to go through travel agents. Because of this, EasyJet offers low priced, no frills flights and other services such as car renting and accommodation (product) at reduced online price with no hidden-added cost (transparency) - displaying fully the price breakdown composition (price), that can be purchased immediate (disintermediation) online without the need to go through third party travel companies (positioning), permitting travelers know where to buy ticket by advertising on Television set, magazines, EasyJet planes and through e-mails (advertising).
The website has all the mandatory information easily available in all dominating dialects of the continent and it is sectioned under different tabs of accommodation, travel cover, car rentals, air travel bookings and airport related carry to permit users to go directly to the service they might need. Modest use of content material eradicates wastage of their time yet communicates accurate note to website people to guide them through various links based on logical visitor's utilization. In addition, it has enough information on each webpage to support the necessity of site visitors without abstract marketing banners to distract real customers. EasyJet website gives attention on usability and dependability of information somewhat than awareness and colorful display together; it however will not lack color. Orange color has constantly been used throughout the website supporting clients to easily connect the website with the airline. EasyJet maintains a website that may be considered an excellent re-intermediation where service provider is in immediate connection with the consumers via an electric medium (Internet). This reduces cost to both consumer and provider and creates business value. (businessteacher. com, n. d)
The execution of EasyJet e-marketing strategy has been achieved on the business's website. The EasyJet website has been made to offer high usability to visitor and is very simple to use in comparison to a few of its competitors. It is simply designed, with an intuitive navigation - allowing users to go from webpage to page without the need to look via website. It offers high functionality which is without unnecessary baggage. It had been created with the intention not to tire visitors with redundant graphics and advertising which would distract its tourists and make sure they are walk away from the website. It employs modest use of wording eliminating time wastage while conveying appropriate message to guide users through various links. Each web page on the website comprise enough required information without abstract marketing banners to sidetrack real purchasers. For example if a user wants to reserve a flight, he would enter the particular date of travel, vacation spot and check journey availability then move to make scheduling or purchase.
The reason for establishing an on-line business is to ensure progress, efficiency, competitive edge and leverage over opponents. (businessteacher. com, n. d). Utilising the web, EasyJet has had the opportunity to reduce operating cost and cut down its supply string by removing intermediaries and working direct with customers enabling it to market almost 90% of its journey over the internet. EasyJet website goals business and leisure travelers who are keen on saving money and time, nor want to cope with alternative party intermediaries, providing them with easy access to booking, air travel scheduling, travel and accommodation. Facilities such as choice of airport lounges or car parking are essential in completing the procedure of travel arranging, and having this on the website EasyJet extends value for customer.
They also assess consumer e-mail questions and use these to formulate services regarding to customer needs. Working in this manner reduces cost and helps the company, by use of technology mediation, to sell its product and services and create business value.
There are exclusive campaigns for on line booking customers and everything customers who book online receive discount for every lower leg of the journey example EasyJet could reduce 1 for folks who booked online. Online customers also get the benefit of paying the price of local call. EasyJet make it a spot to place all cheap plane tickets online and customers can search plane tickets by reasonable and view plane tickets that are available over two weeks. Customers can make journey transfers, change names, reschedule air travel bookings, and need duplicate verification by e-mail and check in on-line. There is also a choice of swiftness boarding which enables the passenger to plank the journey before other travellers.
They likewise have flight offers which intend to avoid customers who would travel with EasyJet. These campaigns are advertised few minutes before the journey time aiming to eliminate empty car seats.
The management amounts online and offline promotion by using magazines to advertise about new online special offers and will be offering by calling or e-mailing journalists and referring these to the web site. EasyJet will this by putting internet-only campaigns in newspaper stimulating travelers to get their ticket online. The "guess BA Go Loss" and the section entitled "Struggle with Swissair" were advertised on paper to lure more people to the website.
The execution of the strategy has an impact on the business enterprise performance because the website is well integrated into EasyJet's existing systems and business process. An example is the ability to feed news release into the site through electronic and new destination appearing automatically once given in to the company's information system. Also the effectiveness of the web site was demonstrated when the dedicated contact number on the webpage hit six months concentrate on within six weeks. The log file saved 8 minutes average time spent on the website per person and almost each caller made a purchase. The website proven that EasyJet phone operators were occupied selling tickets alternatively than responding to questions over the phone.
The use of Internet in e-commerce has brought up intrusive legal and ethical issues. This is partly because of its root features and just how it's been exploited by businesses disrupting existing sociable and business associations and understanding.
EasyJet like many other businesses has benefited from commercial development of the internet but this commercial development demand a price from individuals. EasyJet gathers and procedures customer information and uses this information for marketing by mailing e-mails. That is regarded as intrusion of solitude because once a person registers in the EasyJet website, then they will be acquiring constant emails which may be really annoying. This has resulted to consumer use of spam officer (junk mail filters) to stop receiving unsolicited messages.
Sherrington (2009, p 19) stresses that the position of your business is not respected; it is attained (Sherrington, 2009, p 19). It isn't good for an enterprise to burst into people's inboxes or information on social networks such as Facebook, advertising their brands because it has noticed a potential customer. Consumers regard this as mistreatment and violation of their privacy plus some can punish the business enterprise by never purchasing their service or product. It's important in e-marketing to demonstrate integrity, honesty, esteem and a determination to share and apply the golden rule of dealing with consumers as you would like to be treated. This can be accomplished by enabling consumers know before their information is collected, give consumer the opportunity to agree or refuse secondary usage with their information, give consumer gain access to and the right to review personal data, store exact consumer information and also have in place a means where consumer can treat the problem if some of their right is violated.
The use of internet excludes a certain group of men and women who do not use internet. An example is the elderly who do not seem to grasp the use of computers. EasyJet are likely never to have customers from this group.
The use of internet sometimes violates the laws of copyright where intellectual properties such as trademarks of others are used without consent. EasyJet went through a legal struggle with United kingdom airways for by using a slogan that resembles that of BA. EasyJet called itself "The web's favorite air travel" mimicking the BA slogan "The world's favorite flight".
This article mirrors EasyJet strategy for its web business model. In wide-ranging EasyJet strategy works well for the business. EasyJet knows its business environment and realize the value of monitoring it. By using internet, EasyJet been successful to be among the top low cost, no frills airline companies in the UK. The design, structure, usability and usefulness of its website have enabled EasyJet to secure leverage over its rivals. The main simple truth is that EasyJet has integrated versatility in its e-marketing strategy allowing it to assume changes and additional develop its strategies to counter-act accordingly. As a result, the website is becoming one of the very most successful on the web hence forging the success of EasyJet procedures.
However, your competition in low cost airlines is strong, and to be able to stay strong and maintain its status, EasyJet has to continue being inventive in its e-marketing strategies. For EasyJet to stay competitive, I would recommend that EasyJet should think about the opportunity of moving into other advertising mediums to reinforce their market vitality. EasyJet should also concentrate in keeping its management in marketing; evaluate its environment often and strive to improve on its advertising style by employing the assistance of its existing customers. This can be achieved by figuring out faithful customers and award them with special offers and discounts in substitution for supporting EasyJet with advertising. EasyJet also needs to find a way of reaching out to customers who do not want to book online.
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