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POB T7 S4 debrief
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Seminar: Easyjet and the Marketing Mix
Topic Number:4
Principles of Business: Stage 2 Marketing
Overview
Easyjet, is the largest airline by passenger numbers in the UK, has seen exponential growth since its inception in 1995. Its success has largely been due to its ability to utilise the marketing mix more effectively then its competitors.
In this seminar, we will critically evaluate how Easyjet has managed each aspect of the marketing mix and determine its key areas of strength and weakness.
We will start off by looking at its product proposition and thereafter move onto the way it prices their flights. Thereafter, we will evaluate its communication approach and finally how they determine their distribution network.
3
• Be able to determine and describe Easyjet’s product proposition
• Critically evaluate how Easyjet’s pricing strategy and articulate its key principles
• Be able to describe Easyjet’s communication approach
• Articulate Easyjet’s distribution network and their approach to developing new routes
Learning outcomes of this seminar
Agenda for this seminar
Explain Easyjet’s product proposition using appropriate frameworks
Discuss Easyjet’s promotional strategy and how it attracts new and existing customers
Explain how Easyjet’s distribution strategy works
Critically evaluate how Easyjet’s pricing strategy works using appropriate frameworks
Structure for the session
You will have 15 minutes to
discuss each question
We will have a de-brief at the end of each 15 minutes to hear your thoughts on each area
Feel free to ask questions but please do not have separate conversations ‘we are all in
this together’!
Easyjet – Right Place, Right Time?
I mean the unbelievable thing with easyJet is I took an enormous risk with my family's fortune back in the 90s and I was lucky to have been in the right place, which believe it or not was Luton, and at the right time - mid-90s when the European airline industry was deregulating - and with the right father, to give me a lot of money to bet on new aircraft. And it worked!
Stelios Haji-ioannou
Origins of Easyjet
The airline was established in 1995 as part of the EasyGroup conglomerate. It was launched by Greek Cypriot businessman Sir Stelios Haji-Ioannou with two wet leased Boeing 737-200 aircraft, initially operating two routes: London Luton to Glasgow and Edinburgh. In April 1996, the first wholly owned aircraft was delivered to EasyJet, enabling its first international route, to Amsterdam. Until October 1997, the aircraft were operated by GB Airways, and subsequently by Air Foyle as EasyJet had not yet received its Air Operator's Certificate.[14]
Easyjet’s Mission Statement
To provide our customers with safe, good value, point to point
air services. To effect and to offer a consistent and reliable product
and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people
and establish lasting relationships with our suppliers.
Explain Easyjet’s product proposition using appropriate
frameworks
A re-cap: a product has a number of levels
1. Core benefit: the benefit the customer is really buying
2. Basic product: Marketer must turn the core benefit into a basic product
3. Expected product: Set of attributes and conditions that buyers normally expect
4. Augmented product: Exceeds customer expectations
5. Potential product: Possible augmentations and transformations thaa a product might undergo
Easyjet’s Core Product: From A to B
Easyjet’s Basic Product
Safety
Efficiency
Adequate
Easyjet’s Expected Product
Online Booking/Check-in In-Flight Snacks
Easyjet’s Augmented Product
Speedy Boarding Seat Allocation
Potential Product
Critically evaluate how Easyjet’s pricing strategy works using
appropriate frameworks
Price is critical for a competitive advantage
With recognition for providing more efficient, low-cost flights, whilst maintaining as a high quality of service as possible, easyJet is positioning itself to
its consumer base as the best form of budget travel in Europe
Factors that influence price
Competition on route
Seat supply
Seat demand
Fuel pricesDistance of
route
Pricing Approach
• Lower the price, the higher the demand
• Easyjet adopts Good Value Pricing
Reverse Price System
Further the date of departure, the cheaper
the ticket
Encourages customers to book early
Gauge demand for every flight
One-way ticketing policy
Extra Charges
Discuss Easyjet’s promotional strategy and how it attracts new and existing
customers
Marketing Promotional Areas
+
Product Marketing!
TV Show
View video: https://www.youtube.com/watch?v=_54HFrg6hnc
PR
Direct Marketing
Explain how Easyjet’s
distribution strategy works
Main Routes
easyJet flies between more primary airports on more
popular routes across Europe than any other airline. These
airports offer our passengers a greater connectivity across
Europe, however they tend to be busier and more subject to slot constraints and curfews than smaller airfields located further away from Europe's
main cities. Nonetheless, we do everything we can to get
passengers to their destination on time.
Making it easier for customers to buy
New online booking system
Appendix – Sources for illustrations
Slide 6:www.virgin.com
Slide 7:Facebook, Virgin and Dyson websites
Slide 11:www.virginatlantic.com & www.grameenbank.com
Slide 12:www.grameenbank.com & www.wikipedia.org
Slide 13:www.ladieswholaunch.com & www.wikipedia.org
Slide 14:www.heatspring.com
Slide 16:www.appl.com
Slide 17: www.wikipedia.org
Slide 20:www.pingdom.com
Slide 18:www.apple.com
Slide 19:www.asme.org
Slide 21:www.wikipedia.org
Slide 22www.brandpackaging.com
Slide 24www.pearsoncollege.com
Slide 27:www.fabeetle.com
Slide 28: www.atongwalli.com
End of Seminar
Note: This recording is for your personal use only and not for further distribution or wider review.
© Pearson College 2013