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Transcript of easyJet final
Market And Competitor Analysis
External and Customer Analysis
Marketing Mix Strategies
Product and Brand Strategies
Low fares and high frequency between major European airports
Consumers willing to pay ( a little ) more for value-added proposition
Growth based on joining the dots and adding frequency
Building Europe’s No 1 Air Transport Network
Develop a winning customer proposition
Deliver low cost and maximize margins
“To provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.”
To Be The Best Low Fares Airline In The World
“making flying as affordable as a pair of jeans”
Connects to all the major destinations.
A convenient airliner for the low budget traveler.
Airport network & market share.
Unit cost per passenger.
Reserve pricing strategy.
Encouraging internet reservations.
Quick turn around flights.
Highly distinctive branding.
Feature on television airline series.
Website painted on the aircraft.
Bright orange color.
Cost base not as low as Ryanair.
Brand Vs. Legacy carriers.
Seasonality of earnings.
Hassle in changing bookings
Relying solely on price is not a good strategy
Further cost cutting.
Weakening Pound against Euro
Airport price increases.
Return of competitor capacity growth.
Stagnant economies / austerity.
Fuel price & currency movements.
Air travel taxes.
Accidents & failures.
Alternative modes of transport
Business travelers due to high frequency of flights
Backpackers and Students
Flies to all the primary airports in Europe
Commitment to customer service
Price is a crucial positioning factor
Identify consumer needs and the proportion of customers who have those needs
Develop products and prices to meet these needs
Target communications at customers within each segment
Allocate funds to support and develop each market opportunity.
Web-site based ticketless sales
Can be viewed in 18 languages
easyJet is the 3rd most searched for airline globally
easyJet App now has 4.5m downloads
Flight tracker introduced used over 4 million times since launch
Over 4,000 updates posted
Mobile boarding cards being rolled out and now live in over 50 airports
Buy earlier pay less!
Payment option with installments with no interest
Brand-stretching can help to economize on advertising
Established reputation in offering no-frills services at low prices
Expertise in flexible pricing and online selling
Revenues from “easy” brand
First, Business, Economy Plus, Economy
Business class may cost 5-10 times more than Economy but the service costs much lesser than that
Flying to main airports in cities
The marketing mix is based on keeping costs to a minimum to allow the airline to offer the lowest fares possible
Lower operating costs
High productivity of resources
Reduced distribution costs
Improved online booking system
Low cost airline industry increasingly competitive
Competitors serving secondary airports (More cost savings)
Natural limitations on price; Increases in fuel price and airport charges
General factors affecting strategies
and decisions within airline industry
Fluctuation in oil prices
Threat from terrorism
Natural disaster / epidemic
Presence of competitors offering similar products
Comparison of price can be done easily through internet
Heightened Environmental Consciousness
Consists of some older and major conventional airlines
A few up and coming low cost carriers
Rival consciousness prevalent
Build Brand through campaigns
by receiving significant press coverage
by targeting a higher yield target
and being present in large cities
Focused and targeted new advertising campaigns
Complete commercial evaluation
Best and Final offers
Determine whether / size of new generation fleet order
Fleet order announced
Circular sent to shareholders
General meeting to approve transaction
Italy is a significant market for easyJet
Focus on connecting Italy with the rest of Europe
easyJet is focused on:
•Building on strong market share in major catchment areas
•Business passengers and those with higher disposable incomes
•Adapting the model to the characteristics of the Italian market
•Building the brand and differentiating the product