I am going to do a project on marketing mix. Please give me a good or service which will be comfortable.?
I am going to do a project on marketing mix. Please give me a good or service which will be comfortable to do my project. It should involve maximum phenomenon that comes in the 4P’s. Thank you.
This is just an example, (as its already been used..) Try a similar airline that is the cheapest in your area/country.
Ryanair Case Study.
Ryanair Marketing Mix.
Ryanair is the European low cost airline. Low cost or no frills marketing strategies are of great interest to marketers since the marketing mix employed tends to run in opposition to what makes a great brand - and Ryanair is a great brand and a very successful business. In a nutshell Ryanair sells the cheapest tickets that you can buy (on most occasions).
Its charismatic boss Michael O’Leary has a business model with a central focus on cost reduction (and making money of course!). In around 20 years he has taken Ryanair from a single plane company to become the largest airline in Europe. He had a vision and achieved it through masterful leadership. So how did he do it? How does Michael O’Leary retain his narrow cost focus niche strategy in the face of intense competition? The business simply has lower costs and those costs are passed on to their passengers in the form of low fares.
The branded airlines argue that passengers are willing to pay more for a better level of service. You can pre-assign seats. You get food and drink onboard, and can choose a higher level of service e.g. business class. However the large flag carriers have taken notice of the low-cost model and have employed it as part of their own more differentiated business model.
In 2009 the company settled for 30% of its local Irish rival Aer Lingus after a prolonged takeover bid. Tough trading conditions meant that Ryanair made its first annual loss in 2008/9. O’Leary put this down firmly to rising fuel costs (as did British Airways in the same year). The company also needed to take into account the burden of purchasing its stake in Air Lingus. So in reality things are looking good for Ryanair and its budget operation - since the business aimed to fly double the amount of passengers 2009/10.
Let’s take a closer look at Ryanair’s marketing mix:
Product or Service.
* Low cost, no frills air travel to European destinations.
* There is no free food or drink onboard. Food and drink are income streams. You buy them onboard, or you don’t - take your own food and drink if you like.
* There are other income streams - or ancillary revenue. The company has deals with Hertz car rental, and a number of hotel businesses. So Ryanair takes a commission on ‘up selling’ i.e. ancillary revenue. Other examples include phone cards and bus tickets. About 16% of profit is made this way. This keeps costs lower.
Price
* Ryanair has low fares.
* 70% of seats are sold at the lowest two fares.30% of seats are charged at higher fares. The last 6% are sold at the highest fare
* Ryanair occasionally get in trouble with bodies such as the Advertising Standards Authority (ASA) in the UK over differences between advertised and actual price - in fairness to Ryanair these are rare mistakes.
Place
* Ryanair does not use travel agents so it does not pay agency commissions. It uses direct marketing techniques to recruit and retain customers, and to extend products and services to them (i.e. Customer Relationship Management). This reduces costs.
* You book online over the Internet. This saves them 15% on agency fees.
* They are based in Stanstead in Essex - which is known as a secondary airport. It is new and accessible. It is cheaper to fly from Stanstead than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.
* Many of Ryanair’s destination airports are secondary. For example if you fly to Copenhagen (Denmark) you arrive in Malmo (Sweden) - although it is only a short coach trip over the border. Secondary airports, which tend to be smaller regional airports, depend upon this single carrier - some (it is rumored) paying up to £100, 000 for each additional new route. Costs are lower and aircraft can be turned around faster.
* Keeping aircraft in the air as much as possible is another important part of the low cost jigsaw. However, the company has been challenged by the European Union in relation to anti-competition laws.
Promotion
* They spend as little as possible on advertising.
* They do not employ an advertising agency. Instead all of the advertising is done in-house. In fact O’Leary himself overseas much of the promotion of Ryanair. They use simple adverts that tell passengers that Ryanair has low fares.
* Ryanair employs controversy to promote its business. For example in 2009, the company reasoned that passengers would be charged £1 to use the toilets on board. O’Leary reasoned that passengers could use the terminals at either the destination or arrival airport. This would speed things up. It was reasoned that this is what passengers wanted - since they did not want other passengers leaving their seats and walking the aisles to go to the toilet. O’Leary also a
December 31st, 2009 at 11:09 am
This is just an example, (as its already been used..) Try a similar airline that is the cheapest in your area/country.
Ryanair Case Study.
Ryanair Marketing Mix.
Ryanair is the European low cost airline. Low cost or no frills marketing strategies are of great interest to marketers since the marketing mix employed tends to run in opposition to what makes a great brand - and Ryanair is a great brand and a very successful business. In a nutshell Ryanair sells the cheapest tickets that you can buy (on most occasions).
Its charismatic boss Michael O’Leary has a business model with a central focus on cost reduction (and making money of course!). In around 20 years he has taken Ryanair from a single plane company to become the largest airline in Europe. He had a vision and achieved it through masterful leadership. So how did he do it? How does Michael O’Leary retain his narrow cost focus niche strategy in the face of intense competition? The business simply has lower costs and those costs are passed on to their passengers in the form of low fares.
The branded airlines argue that passengers are willing to pay more for a better level of service. You can pre-assign seats. You get food and drink onboard, and can choose a higher level of service e.g. business class. However the large flag carriers have taken notice of the low-cost model and have employed it as part of their own more differentiated business model.
In 2009 the company settled for 30% of its local Irish rival Aer Lingus after a prolonged takeover bid. Tough trading conditions meant that Ryanair made its first annual loss in 2008/9. O’Leary put this down firmly to rising fuel costs (as did British Airways in the same year). The company also needed to take into account the burden of purchasing its stake in Air Lingus. So in reality things are looking good for Ryanair and its budget operation - since the business aimed to fly double the amount of passengers 2009/10.
Let’s take a closer look at Ryanair’s marketing mix:
Product or Service.
* Low cost, no frills air travel to European destinations.
* There is no free food or drink onboard. Food and drink are income streams. You buy them onboard, or you don’t - take your own food and drink if you like.
* There are other income streams - or ancillary revenue. The company has deals with Hertz car rental, and a number of hotel businesses. So Ryanair takes a commission on ‘up selling’ i.e. ancillary revenue. Other examples include phone cards and bus tickets. About 16% of profit is made this way. This keeps costs lower.
Price
* Ryanair has low fares.
* 70% of seats are sold at the lowest two fares.30% of seats are charged at higher fares. The last 6% are sold at the highest fare
* Ryanair occasionally get in trouble with bodies such as the Advertising Standards Authority (ASA) in the UK over differences between advertised and actual price - in fairness to Ryanair these are rare mistakes.
Place
* Ryanair does not use travel agents so it does not pay agency commissions. It uses direct marketing techniques to recruit and retain customers, and to extend products and services to them (i.e. Customer Relationship Management). This reduces costs.
* You book online over the Internet. This saves them 15% on agency fees.
* They are based in Stanstead in Essex - which is known as a secondary airport. It is new and accessible. It is cheaper to fly from Stanstead than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.
* Many of Ryanair’s destination airports are secondary. For example if you fly to Copenhagen (Denmark) you arrive in Malmo (Sweden) - although it is only a short coach trip over the border. Secondary airports, which tend to be smaller regional airports, depend upon this single carrier - some (it is rumored) paying up to £100, 000 for each additional new route. Costs are lower and aircraft can be turned around faster.
* Keeping aircraft in the air as much as possible is another important part of the low cost jigsaw. However, the company has been challenged by the European Union in relation to anti-competition laws.
Promotion
* They spend as little as possible on advertising.
* They do not employ an advertising agency. Instead all of the advertising is done in-house. In fact O’Leary himself overseas much of the promotion of Ryanair. They use simple adverts that tell passengers that Ryanair has low fares.
* Ryanair employs controversy to promote its business. For example in 2009, the company reasoned that passengers would be charged £1 to use the toilets on board. O’Leary reasoned that passengers could use the terminals at either the destination or arrival airport. This would speed things up. It was reasoned that this is what passengers wanted - since they did not want other passengers leaving their seats and walking the aisles to go to the toilet. O’Leary also a
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