Promotional Plan For Easy Jet Airlines To Ancona, Genoa, Nea Anchialos And Reus

Promotional Plan

The promotional plan can be defined as a significant instrument which assists the victorious instigate of new product or service or for its extension in a new marketplace. Promotion is considered as the function of enlightening, influencing and manipulating purchase verdict (Antonov, 2015). The present report emphasizes on a promotional plan of Easy Jet Airlines for expanding its services through providing a direct route to Ancona, Geona, Nea Anchialos and Reus. Further discussion relating to cost volume profit analysis and application of same by the organization has been presented. All the variants, i.e. ethical, pricing, legal etc. regarding promotional planning have been discussed in the report.

Figure 1: Internal variants of the promotional plan

Promotional plan is a vital planning tool which assists the management to contribute towards a successful launch of a product or service (Ashraff, Salleh and Latif, 2017). It is a way to persuade, inform and attract and influence decision relating to purchasing. The goals of the promotional plan are creating an optimistic image; prospective consumers get to know that a new business is being started, convincing consumers in new corporation and creation. The two specific plans which are required for promotional planning are:

• An aperture plan to set the foundation
• An ongoing plan to prop up promotion process once it is in the way.

The easy Jet airline is believed as British Low-cost carrier airlines, having headquartered at London Luton Airport. There is no doubt that it has amazingly worked well along with its low rate pricing policy to infiltrate in the extensively competitive airline diligence.  The company is expanding through adding a new destination in Greece, Spain and Italy along with providing direct routes to Ancona, Genoa and Nea Anchialos and Reus. Market psychiatry recommends that the idea of low rate budget flights is proving to get attractiveness since people wish to journey economical with necessary amenities. This shows that various more competitors are anticipated to join low price industry so as to contend with Easy Jet Airlines. It is estimated that it will constantly discover new methods of price savings to make sure offering the low ticket on its flights (Beria, Redondi and Malighetti, 2016). Moreover, it is the foremost airlines in the world that started e-ticket journey and also its watchword describes that “now everyone can fly”. In relation to presented airlines corporation, it is a latest instinctive no additions airline. Furthermore, Easy jet Airline has the ability to contend with the conventional filled frills airlines, despite its low budget facilities are not capable of matching with the assistance of ordinarily filled frills in terms of justice.

Easy Jet Airline

Figure 2: Promotional tools and channels applied for promotion

Advertising: It is referred as a form which is paid communication regarding the details of product or service (Cattaneo and et al. 2016). In the present scenario, social media has been proven the best platform for promoting any product or service. Thus, the same will be applied by Easy Jet airlines so that maximum no. of people can be influenced and attracted regarding the new as well existing services of the company.

Sales Promotion: Promotion is an incentive tool in which attempt is made to develop a reason for purchase. Discount can be provided on first time booking, or less fair can be charged in case pre-booking are being made. Additional deals can be provided on the basis of targeted audience and budget and response of each tool. The trial can be made on one or two methods and on the basis of the response of target audience; a final method which is to be continued can be decided (Georgiev, 2014).

Public Relation: The prime objective of the airline is to gather as many customers as possible. It is imperative to generate a trust factor which will be able to keep them attached to the roots of Easy Jet. Therefore, the airline must apply public relations as a promotional tool towards gaining customers. It should be able to give the connection to hearts of Italy. As per the analysis of Hoskins (2017), the public relation can be developed through conducting seminars or shows in which the company gets to knows about the choice and preference of customers. Rather they get a chance to prove themselves that they do care about the choice of the customer (Johnson, 2016).

Direct Marketing: Direct Marketing is believed as the best method for promotion of any service or product.  Kalafatis, (2016) assessed that the reason behind same is no mediators are available which provide a cost benefit to customers as well as companies. In order to apply same company can promote through its website and provide services at the same time. The growth attained by them can be communicated to the customers, and they can be assured that the company is the best available option for them.

Since, Ancona, Italy will be a new destination city for EasyJet, the target audience will be the population of the city. Post the successful run of the route; the people will be able to commute from Ancona to other destinations in a more convenient manner. The promotional strategies will be able to focus on the lifestyle of the people of Ancona. Well, not only Ancona, the focus of the airline must be the neighbouring states that contribute in an itinerary for the city. Therefore, the airline must be able to connect with the people. Being a new experiment, it could be a win or lose situation. Hence, it is important for the airline to create a buzz or scarcity in the city of Ancona. The people must know about the airline way before its advent in the city. It is mandatory for Easy Jet to be able to relate to the culture of the city. They should be targeted in a way that they will be able to identify with the airline. This would help in allowing more people to choose Easy Jet in Ancona.

Promotional Tools and channels

Maintaining all the social and ethical norms in the aviation industry is not a cake walk (Cavusgil and et al. 2014). Post the event of 9/11 in the US; many people are afraid of preferring airlines as no one wants to see the repetition of the dreadful events. For Easy Jet, it is important to overcome these barriers. Therefore, the airline must first understand these social and ethical issues and consider the same while implementing the promotional plan (Malighetti, Paleari and Redondi, 2015).

The laws and regulations imposed by the government pose a lot of difficulties in the functioning of the airlines. They create obstructions in obtaining a license, maintaining cargo and carrier. These regulations are dependent upon the size, and type of aircraft.

Aviation Law 2018 is said to be one major law passed by the UK government which is both against and in favour of airlines. Further, the company has to comply with the CAA regulations. Many bodies will be functioning as the jurisdiction authorities of the law. As per the assessment of Mills (2016), there is an economic authorization limit which is set in order to allow the airlines to avail their license; this seems another treat. As any insufficient limit will be considered inadequate to give license. Various certificates have been announced in the law that must be with the airline in order to define the level of security it provides. The absence of the certificate might lead to a declaration of the airline as unsafe.

The complexities of prices of airlines often act as one major factor that contributes well to frustrate a customer. The revenue management often aims at maximizing the revenue which further increases the rates (Morlotti and et al. 2017). Therefore, it creates a fuss for the passengers.

1. No last minute deals

It is a custom of all the airlines do not offer any last minute deals. Since the passengers tend to take expensive flight mostly in case of emergency. This allows the airlines to gain revenue.

1. Pricing to control demand

The airline aims to divide the seats as per the class divisions. These classes vary as per their prices. Therefore, the extra cut of the revenue is covered as per the pricing techniques allocated.

1. Time Division

Easy Jet, similar to most airlines, prefers to put the prices on a lower side when most people do not book tickets. Moreover, the airline aims to place prices it higher in the closing work hours. Taneja, (2017), assessed that this is usually the time when people book the flights, and this helps in generating more revenue.

Target audience

Furthermore, Easy Jet must also study closely, the constant and variable costs. These two costs help in identifying the areas where the cost fluctuates. Any arrival of revenue accounts for the airline to sort with last minute offers. However, being one of the low-cost airlines, Easy Jet has flexible pricing techniques.

Calculation of contribution margin
Particular	Amount of £	Per unit
Sales	1012000	23
Variable Cost	450000	10.23
Contribution margin	562000	12.77
Contribution Margin Ratio
Contribution Margin / Sales	56%	56%

Break Even Point
Particular	Amount
Revenue (44000*23)	1012000
Variable Cost (44000* 10.23)	450000
Contribution Margin	562000
Fixed Cost	150000
Net Income	412000

Break-Even Analysis
Particular	Amount
Break Even Sales	150000/.56%
(Total Fixed Cost /Contribution Margin Ratio)	26785714.29
Break Even Unit	150000/12.77
(Total Fixed Cost /Contribution per margin)	11746.28034

• Fixed Cost
• Total Cost
• Variable Cost

Amount in £

Chart
Data Table
Units	Sales	V. Costs	F. Costs	T. Costs
0	0	0	500000	500000
40,000	800000	560000	500000	1060000
80,000	1600000	1120000	500000	1620000
1,20,000	2400000	1680000	500000	2180000
1,60,000	3200000	2240000	500000	2740000

Cash Flow Statement

uk(Amount in £)

	Jan-00	Feb-00	Mar-00	Apr-00	May-00	Jun-00	Jul-00	Aug-00	Sep-00	Oct-00	Nov-00	Dec-00
Cash on hand (beginning of month)	2,00,000	73,000	31,500	92,500	1,67,000	2,69,000	3,67,500	4,29,000	4,66,500	4,73,500	4,96,500	5,12,500
CASH RECEIPTS
Cash sales	46,000	57,500	1,15,000	1,26,500	1,61,000	1,49,500	1,15,000	92,000	23,000	46,000	34,500	46,000
TOTAL CASH RECEIPTS	46,000	57,500	1,15,000	1,26,500	1,61,000	1,49,500	1,15,000	92,000	23,000	46,000	34,500	46,000
Total cash available	2,46,000	57,500	1,46,500	2,19,000	3,28,000	4,18,500	4,82,500	5,21,000	4,89,500	5,19,500	5,31,000	5,58,500
CASH PAID OUT
Advertising (Fixed Expense)	1,50,000
Fuel Expenses	10,000	15,000	40,000	41,000	45,000	40,000	40,000	35,000	5,000	12,000	5,500	12,000
Management Expenses	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000	5,000
Other Expenses	2,500	2,500	5,500	2,500	2,500	2,500	5,000	7,000	2,500	2,500	2,500	2,500
Office expense	5,500	3,500	3,500	3,500	6,500	3,500	3,500	7,500	3,500	3,500	5,500	3,500
TOTAL CASH PAID OUT	1,73,000	26,000	54,000	52,000	59,000	51,000	53,500	54,500	16,000	23,000	18,500	23,000
Cash on hand (end of month)	73,000	31,500	92,500	1,67,000	2,69,000	3,67,500	4,29,000	4,66,500	4,73,500	4,96,500	5,12,500	5,35,500

Cost Volume Profit Analysis can be referred as a technique which assists the executives to comprehend the relation among price, volume and income in the company through aiming at some factors such as the cost of products,  level of action, per unit changeable cost and blend of products sell (Kotabe and Helsen, 2014). Through the application of CVP analysis, the executives are capable of appraising between precedent and present performance and make the suitable assessment related to price setting , route psychiatry, demand forecasting and preservation and dealer sequence analysis. With the help of CVP company can decide which cost is unchanging and which is changeable. In the present case of Easy Jet Ltd., same is being applied in order to expand through providing direct routes to Ancona, Geona, Nea Anchialos and Reus. From the assessment of CVP analysis, it can be assessed that at least 11750 tickets will be required to be sold to each of the newly expanded areas in order to attain the breakeven point. If the company is able to attain such position, then it will be able to achieve no profit any loss position.

Conclusion

The above study depicts that Easy Jet Airlines require focusing on retaining its traditional market leadership. It must seem to shift into newer means for publicity mainly using television propagation. Moreover, it ought to deem expanding the levels of effectiveness and enthusiasm within their staff base which other competitors unsuccessful in identifying. Therefore, Easy Jet Airlines be supposed to open their actual bureau so that passengers can book tickets directly from them. The company would be able to communicate directly with customers as well as will be able to reduce the cost to be charged from customers.

References

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Hoskins, K., 2017. Post-18 Educational Choices:‘Our Students Need to Avoid the easyJet Version of Universities’. In Youth Identities, Education and Employment (pp. 79-107). Palgrave Macmillan, London.

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