Ryanair is arguably one of the best airlines in Europe. One of the factors which promote the growth of the organization is the ability to offer its clients with fair prices that make Ryanair relevant in the industry. The first part of the paper will discuss the companys marketing mix and other strategies used in promotion.
Task 1 - Evolution of Marketing
There are different philosophies which companies can adopt to ensure that they achieve competitive advantage and sustainable growth in the industry. First, production orientation is one of the most common views which can be utilized by an organization, and it implies that the company will ignore the needs of the customers so that they can focus on bettering the quality of their output (Baxi & Karani 2016, p. 4). Frequently, most companies which adopt the use of production orientation believe that they can still sell their product if it is of high quality even if they do not meet the needs of the clients. Second, a business can also apply marketing orientation to secure a competitive place in the industry. Unlike production, market orientation believes in sustaining the needs of the consumers, and that is the reason why theory focuses on meeting the needs of the buyers. A business which applies marketing orientation will always consult the buyers before the executive can make the final decision. Third, an organization can also make use of societal orientation. This idea is quite similar to market orientation since it focuses on satisfying the consumers, as the business also aims at remaining relevant in the community for an extended period.
Ryanair, which is one of the bestselling European airlines, applies the use of production orientation. As previously highlighted, companies that make use of production orientation do not care about the comments offered by their customers, but they just focus on high-quality production since they believe that the quality of their product will attract the customers. First, Ryanair initiates production orientation through its high efficiency and low operation costs. Whereas the quality of the flights is highly rated, the company does not offer its passengers in-flight extras such as newspapers, sweets, foods, and beverages. While the executives of the company in the discussion believe in lowering operating costs and ensuring that the passengers get the best quality flights, this is against the needs of the buyers, hence production orientation. Most clients who have used the airlines claim that they would wish that the company would also offer them inflight advantages such as newspapers and food. Second, the company achieves its initiation of production orientation through low fares (Willems & Brengman 2017, p. 167). Notably, fair pricing is yet another strategic application of production orientation since it ensures that the business attracts price-sensitive consumers. Despite Ryanairs refusal to cater for the customers needs, they still manage to have the highest number of flights in the European market since they offer the travelers with the best prices.
Task 2 Marketing Environments
Situation analysis refers to a collection of different strategies applied by managers in understanding a business internal and external environment before they initiate marketing tactics (Baxi & Karani 2016, p. 7). Just like many other companies, Ryanair must also undertake a situation analysis before initiating a marketing strategy since it will have the following benefits to the company in the discussion. First, situation analysis will provide Ryanair with their possible strengths in the industry (Finne & Strandvik 2012, p. 126). Arguably, it is quite impossible for an organization to achieve prosperity if the management is not familiar with its strengths and weaknesses. However, application of situation analysis ensures that the executives are familiar with the weak and strong areas, hence the selection of the best marketing strategies. Second, it is beneficial for the company since it will make the management note their possible competitors or threats in the industry. Identification of rivals in the market is crucial since it provides the business with an opportunity to counterattack their strategies and remain relevant in the industry.
Whereas Ryanair is interested in setting up the best marketing strategies that will ensure business prosperity, it is important to note that there are political and sociocultural factors which might either hinder or promote their marketing strategies. First, one of the leading political factors that affects Ryanairs marketing strategies is taxation. Although Ryanair is interested in selecting the best marketing strategy which will promote the objectives of the institution, the government requires that the business must settle tax as provided by the law, and this hinders its development since they have to incur more expenses (Luxton & Reid 2015, p. 44). Moreover, fluctuations in the tax rates which the company is supposed to offer are the sole reason why they cannot set up a specified marketing strategy in advance. Second, Ryanair also faces sociocultural factors such as ethnicity in its marketing policies. Unlike the previously discussed political element, ethnicity does not hinder the achievement of the business marketing plans, but it promotes their ideas since European race mainly covers the region. Whereas there are other languages that the company can initiate their marketing plan, they mostly use English since it is common with most people in the area.
Although Ryanair is currently rated as the best airline in Europe, the organization is facing stiff competition from other carriers such as Norwegian and Vueling. Norwegian and Vueling are depicted as threats to the prosperity of Ryanair since they pose several threats to the business. First, these two airlines might just lower their prices to match that of Ryanair, and this will impact negatively to the company in the discussion. As much as Ryanair is profiting from the air business today, most customers tend to like trying out new companies, and that is the reason why those who are price sensitive will shift from Ryan to either Vueling or Norwegian in case they decide to lower their costs. Second, the highlighted entrants are threats since they might secure customer loyalty through their in-flight benefits. It was initially noted that Ryanair does not offer its travelers with inflight advantages such as food, beverages, and newspapers, but they only focus on high-quality services. However, the stated companies also provide high-quality services, meaning that their inclusion of in-flight benefits will lead to business prosperity.
Internal environmental factors are vital in the prosperity of any company since the management controls them, and it is evident that Ryanair has several significant internal factors. The first internal environmental factor that promotes the business in the discussion is excellent communication between the employers and the management. Communication is one of the fundamental internal environmental factors that help the advancement of any company since the employees can learn and air their views. Excellent communication links at Ryanair have made it easy for the executive to initiate organizational change as the employees are confident and always ready to learn. Moreover, financial muscle is yet another internal factor that assures the business its prosperity. Notably, financial stability is crucial for an organization since it implies that they can initiate the best advertisement to reach out to a broad market range.
Task 3 Marketing Strategies Market segmentation involves the activities of a business entity which aims at breaking the broader market into smaller groups which have similar interest. However, there are segmenting variables that are used in this process, and this paper identifies the four primary segmentation variables. First, the geographic variable entails the breakdown of the populace regarding the location and population density. For example, a business will identify the number of people within a given locale before dividing the group as their marketing strategy. Second, there is also the demographic variable of segmentation, and this involves factors such as age, occupation, gender and income levels (Finne & Strandvik 2012, p. 130). Third, a company can also use a psychographic variable. Notably, psychographic variable entails market segmentation based on elements such social class, consumers personalities, and their living standards. Lastly, organizations also make use of behavioral variables, and this involves loyalty status and the usage rate of their products. Task 4 Ryanairs Marketing Mix Product. A low price for the travelers is one of Ryanairs main strategies in satisfying the needs of their consumers. Unlike many other airlines that operate in Europe, Ryan has mastered the art of reaching out to price-sensitive consumers, and that is the reason why the company focuses on proving fair pricing (Finne & Strandvik 2012, p. 134). Moreover, Ryan does not offer its customers with inflight advantages such as food and drinks. Instead, the management states that the passengers can either purchase food while on board or they can carry their own while from home.
Price. Ryanair offers the lowest air traveling cost in Europe, and this has ensured customer loyalty for an extended period. As previously highlighted, there are clients who are price sensitive, hence the reason why they choose Ryanair over the other air travel companies. Importantly, 70% of the seats are sold at low prices while the remaining 30% are sold at high prices.
Place. While many European companies use travel agents in their advertising, Ryanair has employed the use of direct marketing for many years, and that is the reason why they do not have to pay commissions (Baxi & Karani 2016, p. 3). Arguably, direct marketing by the organization ensures that they create good relationship and links with their clients, thus customer loyalty. Furthermore, the company does not use agents in the booking of their tickets as they have online portals where interested travelers can book their travel tickets. Lastly, Ryanair is located at Stansted in Essex, and this location has promoted its prosperity because the area is not busy, hence providing an easy time for the pilots to overturn the aircrafts.
Promotion. Notably, employment of low operating costs is one of the critical strategies of the company in the discussion, and this reflects their low-cost promotion. Since the establishment of the company, Ryanair has never used advertising agents; instead, the management employs the use of in-house advertising that minimizes expenditure. Moreover, the executives employ controversy as a marketing strategy so that they can remain relevant in the airline industry. People. The people are the key players in the growth of Ryanairs business, and this mainly involves the staff. The pilots who work at Ryanair airlines are recruited immediately they complete their stu...
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