EasyJet airline started its operations in 1995 in UK and was founded by the Sir Stelios Haji-Ioannou. Sir Stelios Haji-Ioannou and its family members were major shareholders of the EasyJet at the time of the commencement (Official Website, 2010). Its new hq is at London Luton Airport terminal, Hanger 89. EasyJet has an extremely low marker show in the air travel industry that main reason is that so many giants organizations will work from generations and compare to them EasyJet is relatively new. EasyJet always focuses in providing the perfect quality of services to the clients to make them satisfied and happy (Standard Website, 2010). EasyJet's always is convinced in taking care of the long term relationships with the customers and always gives very importance to them. In airline industry, there are so many big airlines are functioning and also the globalization has made this competition is very stiff. Airline industry is very competitive because of the number of preference designed for consumers such as the Ryan Air, Lufthansa, Airbus, Air France, English airways etc.
EasyJet is an air travel company who provides the air visiting services in UK, Europe and throughout the world. EasyJet is probably the leading low fares online of the European countries. EasyJet's core business is to supply the flights services to the clients but it is also providing the some additional services as per requested by the clients which includes the room reservations in hotels, arrange travelling for the kids, insurance, tourist manuals etc (Public Website, 2010).
EasyJet Mission statement
To provide our customers with safe, value, point-to-point air services. To result and to give a regular and reliable product and fares appealing to leisure and business market segments on a variety of European routes, to achieve this we will establish our people and set up lasting relationships with our suppliers (Standard Website, 2010).
The first 10 years of the twenty first century has been very worse for the airline industry including the Easyjet. The cyclic downturn, that was started in 2000, harms the airline industry and became most severe in 2001. The occurrence of world trade centre in Sept 2001 was also a huge setback for the air travel industry. Then the start of the Iraq battle in 2003, which started out the fuel crisis and energy price rose very high. The monetary downturn also afflicted the world airline industry in 2008 but now condition is bettering and economy is currently in the revival phase which is also an opportunity and positive for the Easyjet.
EasyJet seems to be positioned perfectly with experts predicting excellent progress opportunities for the low cost-sector. Given the saturated market and the scarcity of other available choices in the united kingdom, competition will probably intensify - inevitably followed by consolidation, an early indication of which is easyJet's purchase of GO. THE UNITED KINGDOM market offers little growth opportunity, therefore concentration will be on the continental market, a step of progress in this way is establishing a significant new basic at Berlin, with plane tickets from 11 Western cities, and possibly as well on Eastern Europe. Emphasis remains on charges Strategy and development of its route network. Promotion needs to persuade people that it is safe to soar and establish easyJet as Europe's greatest low-cost carrier.
EasyJet has started out its procedures in 1995 and still it is not in a position to make its brand position clear and distinctive among other brands. EasyJet brand name is very weakened and its still must take so many actions and making its goodwill and brand positing in the market and in your brain of customers because customers are now supplying huge importance to the brand. EasyJet main marketing strategy will be to provide the best quality of services to the customers and really should improve its image in the population. Corporate social responsibility also helps the EasyJet in building the positive brand.
The macro environmental or external factors have significant impact on the business and it includes the following political, legal, economic, sociable and scientific factors.
EFFECTS ON AIRLINE INDUSTRY
Political Balance in UK.
The politics situation of the UK was very uncertain and unstable prior to elections however now, after the elections and appointment of the David Cameron as excellent minister, Political stableness is approaching.
It will have an optimistic effect on the Easyjet Flight that now business activities will revive once again.
No comfort and insufficient administration support to air travel industry.
The situation of the flight industry was most severe due to the current economic downturn and Air travel industry needs the supports of the federal government in order to endure and operate in this challenging situation. No relief package deal or grant was announced by the federal government.
It can affect the smooth stream of procedures of the air travel industry organization and will be difficult to use, if there's no government support.
European Union Eastern enlargement
The addition of the greater countries in EU will provide the routes to the new market segments and countries to serve and chance to serve more customers.
Excess to the new marketplaces and more market share
EFFECTS ON Air travel INDUSTRY
Continuous increase in petrol has a direct impact on the airline industry.
It will employ a negative affect on the Easyjet as it is known for the reduced fare flight.
Security and insurance cost
The security and insurance cost of has increased due to the danger of the terrorism.
It has place the strain on the airlines to invest huge amount of money for the protection which has increased the operating cost of the airlines.
The world economy is now in its revival phase and it business activates are now once more has started out.
It will bring the more opportunity for the air travel industry as now people will once again start venturing for the business enterprise purposes.
EFFECTS ON AIRLINE INDUSTRY
Changing buying behavior
Now individuals are incredibly price conscious and folks are transitioning to the reduced cost airlines to save lots of the money
There can be an opportunity to aim for those customers.
Immigrants and visitors
There are so many people come to the united kingdom for the different purposes like educations, trips, Jobs, health etc. and each one of these immigrants choose the low fare airlines services.
It is an opportunity for the business to increase its sales and profits.
Globalization has also made the visitors to travel more often which is also in the favor of the airline industry.
Opportunity to increase sales.
EFFECTS ON AIRLINEINDUSTRY
Online offering of Tickets
Convenient and easy to buy tickets online. Increase customer's satisfaction and save their time.
Help in lowering the operating cost.
The use of internet and mobile technology is currently more frequent because of the availability of internet technology at low rates.
Opportunity to increase sales online.
The micro environment of the EasyJet flight can be analyzed via porter five causes which include the horizontal makes and vertical competition. These five makes include the pursuing:
PORTER'S FIVE FORCES
Threat of new entrants
LEVEL OF THREAT
The Easyjet brand name is known in the air travel industry as the low fare airline. However, not known globally.
High capital requirements
To installation the airline business is challenging that huge amount of capital is required as when Easyjet started its business with a loan of 5 million with two leased airplane.
The products and services are similar. The services offered are same with the other competition.
Lack of take-off and getting slots
It is very difficult for the new entrant to determine the suitable international airports.
Conclusion: These factors show the amount of threat of new entrants getting into the air travel industry is very fragile as the huge capital and the lack of take-off and getting slots will be the biggest barriers.
Threats of substitute products
LEVEL OF THREAT
To travel from the teach or car is not possible for the long distances but London to Paris can be reached by Euro Star
Threat of Substitute
Threat of replacement is very high because now people choose the travel by sea or train than Flights for the holidays or spending vacation trips purposes.
Conclusion: The substitution hazard is medium as there is absolutely no substitute for the air traveling for long ranges as it's requires less time and more secure than other alternative like sea or travel by teach.
LEVEL OF THREAT
Low switching cost
Due to low turning cost buyer can switch to the opponents products and services
Civil Aviation Expert (CAA)
CAA supplies the customers security and safety. So, clients have absolute electricity.
As customers will most likely check around for the better price, specifically with the dependence that the reduced cost airline has on Internet sales.
Conclusion: the customer ability within the flight industry in UK is high as there are so many potential buyers are on the market who seeks the reduced fare airline industry.
LEVEL OF THREAT
Less transitioning costs
Customers switching in one product to some other, making it difficult for airline companies to fully capture them.
larger quantity of firms
The huge amounts of air travel companies are operating in the united kingdom and air travel industry is very competitive.
The Easyjet brand name is well known in the airline industry as the reduced fare airline. However, not known internationally.
EasyJet provides its products and services at the lowest fare rates in UK and European countries which is the competitive benefits.
Conclusion: the above mentioned analysis shows the rivalry within the fashion industry in UK is considered to be at the medium low level. In addition, it shows an extreme rivalry between competitors all targeting a show in the flight market.
Airline industry is very competitive due to the number of choice available for consumers such as the Ryan Air, Lufthansa, Air France, Uk Airways etc.
Ryan Air (1985)
Strong brand identity
Low fare rates
Prone to bad press
British Airways (1974)
Delayed & Terminated Flights
Regular Strikes issues
Air France (1933)
Leading airline in Europe
Strong Brand Recognition
Higher Fare rates
Fifth major in conditions of holding passengers
No economies of scale
The Challengers Matrix is shown and it summarizes these rivals in relation to Eazyjet air travel. It demonstrates the competitive environment generally is hard and that it will be difficult to try to grow the business enterprise by taking customers from the main element competitors in airline industry. There's always the risk of the opponents to the EasyJet a little oversight can be the reason of sacrificing the valuable customers. So, EasyJet should keep a close eyeball on the goes of its rivals to minimize the risk from the opponents.
Easyjet airlines core competencies are as follows:
Low fare rates air travel when compared with the competitors
Effective employees and customer relationship management
Commitment towards to the organization social responsibility
Online offering of the tickets
Improved and progressive designs of the aircrafts, which will make the air visiting more secure and secure.
Strong budget within the industry
Most used airline service in the UK
The capacities of the EasyJet airlines can be assessed by the examination of its 5M's such as the Money, Marketplaces, machinery, Men, and Materials.
EasyJet air travel is a giant multinational corporation of the world which is financially very steady and has not any restrains related to the fund accumulation.
EasyJet air travel is working in the complete European countries, UK and along with a few of other countries of the world. The marketplace of the Easyjet is very broad and its own still has used the strategy of going globally and can get into those untapped marketplaces soon.
EasyJet's major aircrafts are made by the other company and Easyjet does not own that equipment which is used in the manufacturing of these aircrafts but is trying to make its aircrafts as its however the company also own all the equipment and tools which are used in the aircrafts like Refrigerator, Microwave Owen, etc.
EasyJet has applied almost 6666 employees across the world and having very good relationship using its employees and Easyjet always give value to its real human resource and is aware the value of the determination of its employees towards the business.
Easyjet aircrafts always used the grade of the materials in the developing of the aircrafts and it is very difficult and its own material is not purchased form one supplier.
This SWOT research of EasyJet analyzes the external as well as the internal environment of the EasyJet flight.
Strengths and weaknesses are analyzing the Eazyjet internal capabilities and difficulties.
Customer Retention policy
ISO 9001 Certified
Corporate communal responsibility
Innovative and unique designs of aircrafts
Opportunity and hazards give the external environmental insights.
Increase in financial activities after recession
High investment in new technology and research and development.
Changing in consumer behaviour
New market development
PROBABILITY OF OCCURENCE
Danger of Terrorism
Higher fuel prices
Strict regulations and regulations
After doing the marketing audit, it is currently clear that EasyJet marketplace mainly consist on the customers who want the environment travelling service at low cost. If EasyJet needs to increase its market talk about it will go for the untapped market customers and should increase its target market by offering those customers who are financially very strong and prefers quality, swiftness, safety than the reduced cost flight services to save money. EasyJet should add more new customers to that they can easily provide and then EasyJet can get more market talk about in the industry which will result in the increased sales and earnings. EasyJet should adopt the competitive globalization strategy because its global occurrence is very poor.
The target market of the EasyJet includes the neighborhood and international customers and the organization sector both private and governments who travel domestically and internationally. EasyJet is targeting the lower income band of the marketplace, who cannot afford the higher rates fares and EasyJet provides them superior quality of services. EasyJet target market includes the folks of all era, gender, religion, job etc. The primary marketplace of the EasyJet is to serve those customers who travel for the business enterprise purposes and they are the most profitable section for the EasyJet. The second portion includes the students who travel for the purpose of review and go with their home towns, people travel for the spending holidays, and folks travel for the jobs etc.
EasyJet can be an air travel company who supplies the air traveling services in UK, Europe and throughout the world. EasyJet is among the leading low fares online of the Europe. EasyJet's main business is to supply the air travel services to the clients but it is also providing the some additional services as per requested by the customers which includes the room reservations in hotels, arrange travel for the kids, insurance, tourist manuals etc (Standard Website, 2010).
EasyJet overall marketing aims include the followings: EasyJet main marketing target is to become a market innovator in airline industry in future by creating more sales and revenue via delivering the high quality of services within a specified period. The marketplace talk about of EasyJet is very low in local and as well as international market. So, get more market show will be in the priorities of the business. The effective online marketing strategy can help the EasyJet in getting the market show. EasyJet is working in few countries including UK and European countries to extend its functions worldwide will be its objective. By implementing globalization strategy, EasyJet can increase their business worldwide. The need for branding is increasing daily as consumers are buying those products and services of these companies which have a strong brand. EasyJet is having a weak brand name which is its weakness. So, getting the competitive gain through having a solid brand is also the aim of the EasyJet. EasyJet objective is by using the ground breaking and modern tools for marketing like use of internet for the marketing. The main emphasis of the EasyJet is to use the modern and effective means of communication.
EasyJet major product is to supply the people flights services in UK and Europe. EasyJet is also providing some additional services to the customers as required by them that are hotel reservation, travelling management, vacationer guide etc. The purpose of the Product strategy is to satisfy the need and desire of the clients. The product strategy will also disclose all the feature of the merchandise and services of the EasyJet. EasyJet will also coach his staff which can only help in providing the best services to the customers. EasyJet product strategy purpose is to make their airline services as the motivating part of the customer's quest.
Customers always preferred those companies which create value on their behalf by delivering the assistance at low rates and enthusiastic about their satisfaction and overall keeping and cheap rates of the merchandise. EasyJet price strategy will give attention to providing the services and products to the customers at relatively low rates than its competitors in industry. To provide the services at low rates is simple enough for the EasyJet because they are already providing its services at low rates and it is the key low fare rates flight service in the European countries. EasyJet is using the hybrid pricing strategy which include the skim and penetration costs strategy. It is necessary for the EasyJet to keep their prices low, if indeed they want to become market head.
EasyJet has always tried to provide the services to its customers to their convenient locations as its sellers are functioning in the most potential markets of the UK and Europe. EasyJet distributes its tickets through independent retailers and they charge commission payment on the ticket sold. EasyJet airline is now concentrating on reducing the engagement of the middleman and today focusing on the interacting with directly with customers. EasyJet now typically sells its tickets via online directly through its websites. By doing so, company can straight interact with the customers and chances of the miscommunication will be little. By reducing the number of independent retailers, EasyJet's overall cost will be reduced and EasyJet will copy this benefit to the customers by reducing the prices of the tickets.
EasyJet will use both categories promotional marketing program to market the services of airlines. First use be to promote the merchandise and service of the EasyJet to the clients and second will be to retain the existing customers. The primary shoot for these promotional marketing campaign is to boost the company brand consciousness and brand acknowledgement among every person locally and across the country.
In new consumer marketing program, EasyJet will concentrate on the new segment of the actual customers which includes left and can catch the attention of them by offering them the services that they need. EasyJet will advertise greatly for appealing to this untapped section via using all the available mediums (print, electric, radio, online etc. )
These programs concentration is to increase the profitability from per existing customer. The company will give some special discounts and packages to the customers who will use the EasyJets services again. EasyJet will give the follow up calls to the clients about the existing available deals and benefits.
Product (employees training expenditures, wages, maintenance of aircrafts, etc. )
Price ( special discounts, special offers, etc. )
Placement (delivery bills, sales expense, transportation etc. internet cost)
Promotion (including advertising, Telecommunications (eg. telephone, fax, online sites, cellular, etc. )
If EasyJet adopts this marketing Mix plan than this cost will be incurred and company must keep this. Budget is allocated based on EasyJet's previous activities and current market situation has been examined that how much effort is necessary by the EasyJet to implement this marketing Mixture plan. There is absolutely no hard and fast rule for allocating this budget and while causeing this to be budget management and folks who are involved, their feedback in addition has taken.
The formal controls that are necessary for the proper execution of marketing arrange for EasyJet includes:
Additional human resource
The types of process control buttons which will be needed through the execution of the marketing plan include:
Management dedication to the plan and employees
Revised worker evaluation
The efficiency evaluation standards will include of EasyJet Marketing plan:
Increased Customer satisfaction and retention or not
Increased Dollars sales and sales amount or not
Increased Market talk about or not
The product performance specifications include:
Whether Product satisfies its specs or not
Whether Primary product quality is delivered or not.
New product advancement, branding, and positioning
The price performance expectations include revenue goals, source/demand balance, price elasticity or produce management.
The distribution performance specifications include distribution efficiency/efficiency, supply string integration and value provided.