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Services Marketing: Analysis of Wizz Air

Created by Catherine Sierra-Bornais, Kelsey Paterson, Kieran Atkinson, Pamela Migalska, Robyn Hounjet
by

Robyn Hounjet

on 10 May 2011

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Transcript of Services Marketing: Analysis of Wizz Air

Prepared by Catherine Sierra, Pamela Migalska, Kelsey Paterson, Kieran Atkinson, Robyn Hounjet Introduction Market offerings Modified Marketing Strategies to Capture the Student Target Market Agenda Market Offerings Physical Evidence Process Price Strategy Distribution System Promotion Personnel Recommendations Physical Evidence Process (Blueprint) Value proposition: Wizz Air is a value-oriented airline that focuses on the traveler’s experience throughout the customer journey.

Technology: The latest technology is utilized to ensure that the “Wizz Air experience” is exceptional in terms of service and value for money. This enables the company to achieve a consistently high standard of service for travelers and high fuel efficiency.

Business Model: Wizz Air offers a ‘simple service model’, which means: ticketless travel, use of cost- and time-efficient secondary airports, single class all-leather seat configuration, no seat assignment, luggage fees and catering on demand for extra payment. Wizz Air's Business Characteristics Established brand
Extensive destination offerings
Fast turnaround time
Updated technology Strengths Weaknesses Inconsistent image perception
WizzAirSucks.com Opportunities Threats Expand routes in Western Europe
Continued expansion into Eastern Europe Strength of competitors in Western Europe
Growing momentum of competitors in Eastern Europe SWOT
Analysis Target Market Citizens of CEE
Travellers in the EU
Travellers on a budget Current Positioning Major Competitors: Ryan Air and Easy Jet
Strongest position in the CEE Price Strategy “Low cost- low fare airline!” Mission Statement Revenue Management Keeping Costs Low Low Basic Price, Charge Extra Fees Currently the biggest low cost airline
Offers cheap flights
Aim for low costs- cut out non-value added activities
Promotions to buy in advance “Our aim is to make flying affordable to the citizens of CEE, as well as to provide a new travel experience to all travelers in the EU. The latest technology is deployed to ensure that the “Wizz Air experience” is outstanding in terms of service and value for money. Wizz Air offers a ‘simple service model’, which means: ticketless travel, use of cost- and time-efficient secondary airports, single class all-leather seat configuration, no seat assignment and catering on demand for extra payment.” Give customer’s what they want
Cheap bare necessities & pay for extra’s
Use Value Based Pricing and not cost based pricing or competition based pricing
Also takes advantage of relationship based pricing in relation to long term contracts with the Wizz Xclusive club Fly to secondary and smaller airports
Restrict carry-on baggage amounts and sizes
Promote online booking (cut personnel costs)
50% cheaper to book additional services online than at airport Cheap “basic” costs of flights advertised on website
Better price when dates are flexible, during the week, and booked far in advanced, or sometimes last minute
Promotional costs change often
When booking flight to Italy price went from 30 PLN to 69 PLN in the middle of the day Extra cost for:
check in bags
checking in at airport
extra legroom priority boarding
travel insurance
delay warranty
SMS confirmation End Price is rarely as cheap as advertised
Smaller carry-on sizes, and additional fee if too large
Customers ‘pay’ for lower prices by forgoing luxuries
High Fees for excess baggage Distribution Strategy “Where, When & How” Customers visit Wizz Air website
Available 24/7
Use intermediary and outsources distribution to Wizz Air announced it will renew agreement with Navitaire, Inc. for distribution, reservation, and departure control services
Navitaire Inc. provides technology and business solutions
Focus on cost effective strategies
Internet focused distribution strategy
Navitaire provides tech and business solutions to airlines
Constantly working to reduce costs 5 categories of service delivery flow: Information Flow Negotiation Flow Service Flow Transactions Flow Promotion Flow Distribution of info and promo materials
Main page of website advertises current deals Many options available for flights and prices Internet channels favored, and services rendered through non-electronic means are discouraged Flower of Service Supplementary Services: focus on electronic methods transportation to new location Using the power of the Internet, ticketless booking, and customer-centric, proprietary technology, our reservations and alternative distribution systems can help you:

Significantly reduce your distribution costs
Drive high web adoption rates and always supply the lowest available fares
Improve customer service by streamlining the customer experience
Capture and easily access centralized customer data
Gain superior analysis and reporting capabilities.
Mission Statement Promotion Word of mouth is used, but not as effectively as it could be
Promotion focuses on intangible customer value
Currently lacking a strong target market
Differentiation factor: uncompromised value Key channels: Direct marketing, online sales promotion, and advertising Some traditional advertising:
Print ads
Bus ads E-marketing:
Targeted emails
Targeted banner ads
Interactive website Personnel Front-line employees play a key role Wizz ambassadors: creating service quality, improving productivity No focus currently on customer loyalty to protect long-term profits Need a greater focus on the inverted organizational pyramid to support front-line employees interacting with customers Invest more resources into hiring and training Recommendations vs. online Introduction 66 airports 220 routes 24 countries 1000+ employees Two-star airline Criticism Criticism 1. Increase transparency 2. Increase efficiency Show final prices BEFORE the end of the booking process
Show number of available seats left at a price level or per sale More efficient in terms of number of screens to go through when booking online
Efficiency and ease of contact – instead of multiple contact centres have one main line that can transfer you to someone of your language (without extensive hold times)
Better feedback for when information is entered improperly online Introduce a free online chat with Wizz employees as an alternative to calling
Check size and weight of carry-on bag at check-in counter (rather than before boarding) Faster check in process
Provide clear instructions when booking flights (i.e. allowed baggage size) Thank you! questions?
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