Marketing assignment Essay

1.1 Ryan beam argon pioneers of secondary toll air ducts in europium operating much than 1600 daily leakages from 57 bases across 1600 low farthermost routes connecting 180 coatings in 29 countries. They recently announced that they have consistent 175 new Boeing craft. 1.2 In order for Ryanair to keep the shake ups to a minimum, their air hose practice sessions sm solely, regional airports only to reduce operational hails and operates as a point-t-point air hose carrier, thus when other airlines avoiding the live associated with a hub-and-spoke avail. 1.3 Ryanair advertises its self as a The low f be airline and has a price promise under which it will pay doubly the difference if a node finds the comparable flight cheaper elsewhere.1.4 They pay as little as potential for their aircraft. They get big discounts on aircraft because they demoralize them when other airlines compliments them. 1.5 They spend as little as possible on announce. They do non employ adv ertising agencies instead whole of their advertising is done in-house. 1.6 They dont use rifle agencies, so they dont pay commissions. Ryanair uses direct grocery to upgrade and take for customers and to extend products and services to them and this reduce cost. You book online or on the internet. This saves 15% on agency fees. challenge 2Kulula and Mango are southbound Africas low cost airlines. These airlines have in some areas imitated the Ryanair telephone line model. 2.1 Kulula uses Lanseria Airport as an alternative to OR Tambo airport which back end be attributed to reduction operational costs. Ryanair makes use of small airports instead of the large lively airports to reduce costs and reduce the time between flights.2.2 The low cost airlines in South Africa, such(prenominal)(prenominal) as Kulula and Mango as well as upsell products such as car hires, travel packs and hotel accommodation. This is similar to the avocation model of Ryanair. 2.3 The low cost airl ines in South Africa in like manner reduce their costs by non including viands on the fare you can buy your food if you want. 2.4 To make bookings simpler the customers of Kulula and Mango can likewise book and buy flight tickets at Shoprite/Checkers for theres is no commission remunerative to travel agencies. The internet online process also exists for self-service of reservation bookings.Question 3The marketing environment consists of micro and Macro environment. According to Kotler and Armstrong (201290) Micro environment consists of the actors close to the caller-up that affect its ability to serve its customers such as the company its self, its suppliers, its marketing partners, customers and the general public. The macro environment is verbalize to consist of the larger societal forces that affect the macro environment such as political, economic, social, technological, natural environment, and legal framework (Kotler & Armstrong, 2012) 3.1 The Micro environment3.1.1 friendshipRyanairs mission is to keep their customers happy by offering a simple service and that involves maintaining low-cost fares, such as offering no meal options or extended service elements such as deglutition consumption, thus keeping labour-related costs low and inviting the more humble or thrifty consumer to enjoy travel to regional destinations without the worry of excessive airline expense.3.1.2 SuppliersSuppliers are very important to the company and they are the determining federal agent for Ryanair to keep customer foster. In a running an airline Ryanair withdraw a lot of fuel but they are unable to square off their suppliers since the price of fuel is controlled by external bodies such as OPEC(Ryanair yearly Report, 2004). 3.1.3 CompetitorsThe increasing keep down of competition with carriers offering lower-cost fares is impacting the consumer mentality regarding which carrier to admit when travelling within European destinations. 3.1.4 securities industryin g PartnersRyanair does not use advertising agencies instead all their advertising is done in-house by doing so they are cutting cost and making sure that they maintain low cost dodge. They simple use adverts that tell passengersthat Ryanair has low fares. 3.2 Macro environment3.2.1 semipoliticalThe external political environment is one of significant advantage to Ryanair, as the majority of its operations are contained within Europe. It is relatively common noesis that this region maintains political stability, thus Ryanair does not experience issues with g everyplacenmental unstableness in Europe as a concern regarding passenger volumes or flight destinations. 3.2.2 TechnologicalThe technological environment does not appear to importantly impact the firm in a negative capacity as the firm. Additionally, summate chain software course of instructions and other integrated software applications are available to assist Ryanair in streamlining labour functions and improve internal o rganisational efficiency. 3.2.3 sparingEconomical factors in the Euro region such as the Greece debt issues, increase unemployment in Spain and other countries have a negative impact in the number of customers for air travel like Ryanair.Question 4Low cost airline offer a no-frill service, they sell the cheapest tickets you can buy. Unlike brand airlines that argue that passengers are willing to more for a better level of service. These are the reason I would not use low cost airlines such as Ryanair. 4.1 Customer ServiceRyanair offers poor customer service such as when your bag is broken into no compensation is provided. It is also reported that their staff is unfriendly and rude. Ryanair also do not make provisions for fragile items that you wish to carry on the aircraft with you. Musical instruments and clean equipment can be taken but at a fee. 4.2 cheer added servicesThere is no complementary food and what is offered is expensive and unhealthy. 4.3 lead pricingThe policy of 70% sets s out of date at lowest fares and 30% at higher fares can be misleading. This means that you may not always be paying the lowest price for the fares. 4.4 ConvenienceRyanair does not offer convenience as you cannot chose seat. You also cannot change flights. Their plains are old and offer low comfort. They use secondary airports which tend to be smaller regional airports.Question 5Ryanairs objective is to firmly erect itself as Europes leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies 5.2 Understanding customer needs and wants5.2 Design a customer driven marketing strategy5.3 Construct an integrated marketing program that delivers superior value5.4 Build profitable relationships and create customer enamourQuestion 66.1 Product or ServiceLow cost, no frills air travel to Europian destinations. There is no free food or drink on-board. Food and drink are income streams. You buy on-board, or you do take your own food and drink if you like. 6.2 PriceRyanair has low fares. 70% of seats are sold at the lowest dickens fares. 24% of seats are charged at higher fares. The last 6% are sold at the highest fare.6.3 PlaceRyanair 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 Stansted in Essex which is known as a secondary airport. It is new and accessible. It is cheaper to fly from Stansted than every Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly. 6.4 PromotionThey 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 OLeary himself oversees much of the procession of Ryanair. They use simple adverts that tell passengers that Ryanair has low fares. Ryanair employs controversy to promote its business. For recitation in 2009, the company reasoned that passengers would be charged 1 to use the toilets on board.OLeary reasoned that passengers could use the endpoints 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. OLeary also argued that larger passengers should be charged more since they took up more way of life again it was reasoned that this is what the majority of passengers wanted. 6.5 PeoplePilots are recruited when they are unripe as pilot cadets. They work hard and take early promotions and past move on after 1 0-years or so to further their careers. confine crew pay for their uni anatomys to be cleaned. They invest in their own training. They are mainly responsible for passenger safety as well as ancillary revenues onboard6.6 Physical EvidenceThey pay as little as possible for their aircraft. Planes are the most expensive asset that an airline can make. They get big discounts on aircraft because they buy them when other airlines dont want them, for example after September 11th, or on the usurpation of Iraq and Afghanistan. Aircraft manufacturers cannot simply stop a supply chain in minutes. If orders are being cancelled or delayed, this is when to buy. It was rumored within the industry that Ryanair was purchase Boeing 737s incline price around 40,000,000 (forty million pounds) with up to a 50% discount. 6.7 unconscious processThere is no check in. You simply show your passport and supply your reference number. You cannot select a preferred seat. It is first come, first served. Thi s acquired immune deficiency syndrome speed. There are no air bridges (the tunnel that connects to the locating of the aircraft when to board it). You walk or are bused to the aircraft. Baggage is deposited directly onto the terminal its quick. However if your bag is broken dont look high levels of customer service.Question 77.1 Cultural factorsRyanair has addressed a global cultural need for leisure travel by making their prices extremely low and the easy availability of tickets operating between two points. One of the factors that influence consumer behavior is social class such as piles income. Ryanair get most of their business from lower income group.7.2. cordial factorsOne the factors that influence consumer factors is the social factors such as consumers small groups family and social roles. According to the case study Ryanair make use of buzz marketing by their controversial promotions. This influences people opinions about their services as it gets people to discuss th e controversial promotions.7.3 Personal factorsPersonal factors are influenced by personal characteristics such as customers age and life motorbike stage, occupation, economic situation, life style and personality and self-concept. The people that would be influenced into purchase Ryanairs would need to have an easy going personality and not be concerned much about the service of the airline since some(prenominal) of the luxuries are removed from the service.7.4 Psychological factorsA persons buying choices are further influence by four psychological factors motivation, perception, study and beliefs and attitudes. Customers that would be influences to use Ryanair are customers that believe that are getting value for money through the low cost pricing.Question 8Consumer market consists of individuals and households that buy goods and services for their personal consumption. These would normally be consumer goods such as soft drinks, cosmetics, travel and household goods. Ryanairs consumer market is the individuals in the European region that use air travel as a form of transportation.Question 9Below is an example of Ansoffs Matrix which shows exploitation strategies that organisations can use to expand their operation followed by the explanations for each reading strategy (Riley, 2012).Figure 1 Ansoffs matrix. Sourced from Riley (2012)9.1 securities industry penetrationMarket penetration is when the company expands in the aforesaid(prenominal) market exploitation the same products. For Ryanair, market penetration would involve increasing the number of flights in the same routes. This way they are in the same markets and using the same service. 9.2 Market DevelopmentMarket development requires the companies to enter new markets while using the same products. For Ryanair, this would require the company to go to new markets such as Africa, Asia or America using the same low cost air travel service. 9.3. Product DevelopmentProduct development means that in order to expand the company must introduce new products or services in the existing market. For company like Ryanair, product development would mean that they introduce new service such as business class or first class into the existing market.9.4 diversificationDiversification is when the company seeks to enter into new markets with new products. For Ryanair diversification could mean that the company introduces new services such as leisure sea cruising. This would also mean that the company moves into a new market since leisure sea cruising would require different destinations and customer base.ReferencesRiley, J. 2012. Ansoff Matrix. online. Available at http//www.tutor2u.net/business/strategy/ansoff_matrix.htm Accessed on 02 September 2013. Kotler, P. and Armstong, G. 2012. Principles of marketing. 14th edition. Essex Pearson.