Pob stage 2 marketing seminar 4 pre students

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