Evolution Of Marketing And RyanAir’s Marketing Orientation

Orientations of Marketing

Ryan Air is a leading low fare airline that offers no frill services across Europe and North Africa (Creaton, 2014). The low cost, increasing innovation and large network covering lesser known areas of the subcontinent. The brand was production oriented and offered a no frill service to its customers at a moderate price (Caputo, 2016). However, now the brand is looking at establishing its holiday packaging business as a part of its expansion plans and providing the customers with a one stop shop for all their holiday needs.

Production orientation of any business indicates its focus on its internal capabilities and competencies with little or no attention paid to fulfilling the demands of the consumers (Kritchman, 2014). Production oriented business simply make the best use of their internal strengths and produce goods and expect them to sell basing upon high quality.

Unlike production and sales orientation, marketing oriented businesses research about the needs and demands of the consumers and base their production on the same (Dalgic, 2015). They strongly believe in establishing the right promotion mix for their customer. Business which are marketing oriented build long term sustainable relationships with their customers by maximizing value (Sheth, 2015). It is a customer centric approach and responds to customers’ needs.

Societal marketing oriented business throw light on the long term welfare of the society and produce and sell products which create a better environment (Korschun, 2014). This orientation considers long term betterment of the society and acts in a socially and environmentally responsible manner by addressing critical issues such as pollution, safety etc.

Ryan Air’s orientation has shifted base from production to marketing. Now the brand has paid more attention to consumer needs and demands.

Their “Always getting better” program launched by Ryan Air focuses on customer needs, likes and dislikes of customers and aims at fixing the service quality delivered by the airlines. This program focuses on ensuring better customer service, improved behavior towards customers and enhanced quality of flying experience.

Initially, Ryan air charged its customer 10 euros for checking in at the airport. This was discontinued in 2009 and required all customers to check in online and get printed boarding passes to the airport.

Moreover, Ryan Air chief executive Michael O’Leary started another campaign to reinvent its image as a more family friendly airlines upon realizing that 20% of 81 million customers are travelling with families. Since then, the airline has put in tremendous efforts in ensuring safety and quality of service delivered to families travelling via Ryan Air (Dabholkar, 2015).

Ryan Air’s marketing orientation

Situation analysis is a marketing tool designed for firms to understand where they stand in the current marketing place. This requires businesses to take note of their strengths and weaknesses, analyze opportunities available to them and be vary of existing threats (Hollensen, 2015).

In the face of increasing competition this Situation analysis can help Ryan Air draw a clear picture of their current marketing position with respect its competitors and can hence work upon improving the same and gaining competitive advantage (Pike, 2014).

The recent exit of Britain from the European Union has adversely impacted Ryan Air’s business. Flights between UK and EU are expected to be canceled for months (Chen, 2017). Chief executive Michel O’Leary said this would adversely impact the business of Ryan Air as the firm draws 40% of its business from UK customers.

Ryan Air has been majorly benefitted by the increasing recession in the European Union. This has impacted people and made them switch to low cost modes of travelling and Ryan has provided the customers with exactly that.
Increasing terrorism is another socio cultural factor that has adversely impacted the brand as people now prefer other modes of commuting. Consumers have shifted to trains and cars even for long distance travel as it is considered a safer mode of transport.

Easy Jet is one of the biggest competitors of Ryan Air and the biggest threat it poses to business is by attracting customers on the basis of much lesser ancillary charges (Dey, 2017).

Charges	Ryan Air	Easy Jet
Food (Approximate charge)	Starts at 6 Euros	Starts at 4.5 euros
Choosing a seat	4 Euros	1.99 euros
Checked baggage	35 Euros for 20kg	13 Euros for 20kg

Norwegian airlines are another well-known budget airlines based out of Europe. It can pose a threat to Ryan Air by its excellent customer service, polite staff, friendly nature of air hostess, reclining chairs and on time flights (Adler, 2017). The CEO takes keen interest in hiring polite and soft spoken employees and all of the mare well trained to behave impeccably with all the customers. This advantage has been noticed by several customers who have shifted their loyalties to Norwegian airlines.

One of the biggest advantages of Ryan Airline is the largest short haul network as compared to any other European air carrier. The airline covers over 1600 routes across30 countries in Europe and North Africa. It carries the largest number of customers reported at 83.4 million in 2012. This large size of the brand is currently unmatched and one of the biggest strengths of Ryan Air.

Except Easy Jet, no other airlines has put as much effort as Ryan Air to change the face of airline industry in Europe. Direct or online distribution, automated baggage drops, hand luggage only travel and online check-ins are innovations brought in by Ryan Air. The brand has done sufficient to revolutionize the flying experience of customers in Europe (Cheng, 2014). Ryan air has also opened up relatively lesser known regions of Europe and UK by enhancing its travel network to smaller cities.

Situation analysis

Demographic segmentation refers to dividing the market segment on the basis on gender, age, caste, housing type, level of education, income and/or sexual preference (Aziz, 2013).

Time segmentation is rare but in terms of airlines it can be widely used by dividing the market upon time at which customers fly. Airlines can position themselves better by catering to late night and early morning flyer segment of the market.

Price segmentation is widely practiced. This involves dividing the market segment upon disposable incomes of people.

This is also known as lifestyle segmentation and divides the market into customer segments depending upon their attitudes, lifestyles, values, beliefs, perceptions or emotions. This segmentation requires various qualitative research methodologies (Boone, 2013).

Ryan Air has offered low price air travel and specifically targeted lower income groups. These customers look for low priced travel options and often includes lower middle class people or individuals who travel very frequently.

Ryan air has segmented its market and targeted customers who look for value for money option. These customers often travel short distances and are not looking for excessive inflight service or comfort.

The service offered by Ryan Air is short haul and long haul airline covering sundry routes in a timely manner. The service provided is no frills.

The brand prices its service extremely low for basic air travel and charges extra for various ancillary services offered like food, choice of seats, airport check-in etc.

Ryan Air covers over 1600 routes across 30 countries spanning over Europe and North Africa. The primary base of the airline is at Dublin and London Stansted airports. Ryan Air operates from a total of 84 bases connecting 33 countries

Ryan air has used television advertisements, billboards and social media promotion tools to reach out to wider audience. Their YouTube page alone has over 23k subscribers while their Twitter handle is followed by over 341k users. These tools have helped enhance brand awareness and increased brand value.

This aspect of the marketing mix covers everyone directly and indirectly related to Ryan Air. Primary stakeholders of the brand include employees, pilots, customers, media houses, suppliers, airport managers and investors.

The various processes involved in the establishing, sustaining and success of the brand include production, sales, marketing and branding, advertising, PR management, event development and human resource management within the firm.

Services offered by Ryan Air are intangible in nature. The physical evidence supporting the brand includes 403 Boing aircrafts across 83 bases spanning over 33 countries in Europe and North Africa. The logo of the brand includes a harp which is a traditional Irish symbol which appears on the seal of the President of Irish Republic. The staff of Ryan Air is dressed in Blue and Yellow color which are the official colors of the brand.

Macro environment analysis

Conclusion

Ryan Air is a leading low cost air carrier based in Dublin. It is renowned for its low fares and no frills service. Over a period of time, the brand has garnered loyal customers. However, the chief executive is looking to expand into Holiday packages and providing customers a one stop shop for their holiday needs (Clark, 2017). The firm has been rigorously aiming to work upon the quality of its service. Its biggest competitors are Norwegian airlines and Easy Jet. But the brand has managed to maintain in competitive advantage over low cost, increasing innovation, low fares and unmatchable size.

References

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