This paper presents a thorough marketing plan for the no-frills, low-cost airline EasyJet by following a professional and widely-used and accepted marketing planning structure. To familiarise the reader with the airline industry as well as EasyJet, the company under study here, the text starts with an introduction to EasyJet’s corporate history and its current position within the airline industry.
Then, an external and internal analysis of EasyJet’s business follows which culminates in a SWOT analysis. The paper concludes with a marketing plan recommendation to further EasyJet’s growth in international air transport.
Table of Contents
1. EasyJet Corporate History
1.1 EasyJet Mission Statement
1.2 The Southwest Model
2. Competitive Analysis
3. EasyJet Marketing Mix
4. SWOT Analysis for EasyJet
4.1 Internal analysis – strengths and weaknesses
4.2 External analysis – opportunities and threats
5. Competitor Analysis
6. Situational Analysis
7. Marketing Plan – Conclusion
Research Objectives and Core Topics
This case study aims to analyze the strategic market position of EasyJet within the European airline industry, specifically focusing on its "no-frills" business model. The primary research objective is to evaluate how EasyJet leverages competitive advantages, such as low-cost structures and internet-based sales, to maintain growth despite an increasingly saturated market and intensifying competition.
- Corporate history and organizational development of EasyJet
- Application of Porter’s five competitive forces to the airline industry
- Analysis of the "no-frills" business model and its scalability
- Strategic marketing mix and promotional tactics
- Comparative analysis of European low-cost competitors
Excerpt from the Book
1. EasyJet Corporate History
Air travel is one of the world’s largest industries having generated over $300 billion in revenues in 2001 alone. Originally, the air travel market was driven by the demand for business travel as companies became increasingly international in their activities, reflected in the rapid growth in world trade and investment. The leisure market subsequently took off as rising living standards and extra leisure time encouraged holidaymakers to travel to destinations increasingly further a field.
A further stimulus to air travel has been privatisation and deregulation of the airline industry, ending the monopolies and protection traditionally enjoyed by state-owned flag carriers and exposing them to the forces of competition. In Europe, With the expansion of the EU, and the breaking down of trade barriers, the airline industry was deregulated in 1992. This meant that any European airline could fly and land anywhere in Europe. This offered airlines the chance to expand routes across the continent and to apply market strategies with greater accuracy. One feature of this changed landscape has been the emergence of the “no frills” airlines, which have achieved rapid growth in market share in the short haul European market.
A successful example of a European no frills airline is EasyJet, brainchild of Stelios Haji-Ioannou, the son of a Greek shipping magnate who founded the company, based on the low-cost, no-frills model of the US carrier Southwest, in 1995. Today, he and his family still hold the majority of the shares. The concept of EasyJet is based on the belief that demand for short haul air transport is price elastic that is that if prices for flights are being reduced, more people will fly. Traditional airline concepts are based on the assumption that airline traffic grows in line with the economy and that cutting prices will only lead to a decrease in revenues. With the introduction of the ‘no nonsense’ concept to the European market, after its deregulation, EasyJet has proven this theory wrong and goes from strength to strength by actually increasing the size of the market and more recently by taking away passengers from the majors.
Summary of Chapters
1. EasyJet Corporate History: This chapter outlines the emergence of the low-cost airline industry and the foundational business model of EasyJet established by Stelios Haji-Ioannou.
1.1 EasyJet Mission Statement: This section deconstructs EasyJet's corporate mission, focusing on its commitment to providing safe, value-driven, point-to-point air services.
1.2 The Southwest Model: This chapter details how the US-based Southwest Airlines served as the primary blueprint for EasyJet’s operational strategies and corporate culture.
2. Competitive Analysis: This section applies Porter’s five forces to evaluate the external pressures and structural threats facing the airline industry.
3. EasyJet Marketing Mix: This chapter covers the specific pricing, product, distribution, and promotional strategies that define EasyJet’s market approach.
4. SWOT Analysis for EasyJet: This chapter provides an internal and external assessment of EasyJet’s strengths, weaknesses, opportunities, and threats.
4.1 Internal analysis – strengths and weaknesses: This section evaluates EasyJet's specific organizational advantages and current operational limitations.
4.2 External analysis – opportunities and threats: This section explores market trends, economic factors, and competitive risks impacting the firm’s future growth.
5. Competitor Analysis: This chapter profiles major rivals such as Ryanair, Virgin Express, and traditional carriers like British Airways.
6. Situational Analysis: This chapter synthesizes the current market environment, predicting the trajectory of the low-cost sector within Europe.
7. Marketing Plan – Conclusion: This chapter offers a PEST analysis and strategic outlook, highlighting necessary considerations for EasyJet’s continued development over the next five years.
Keywords
EasyJet, Low-cost carrier, No-frills, Airline industry, Marketing mix, SWOT analysis, Deregulation, Competitive analysis, Porter's five forces, Price elasticity, European market, Business model, Aviation, Strategic planning, Market share.
Frequently Asked Questions
What is the primary focus of this case study?
The study provides a comprehensive marketing evaluation of EasyJet, examining how it competes within the European low-cost airline market.
What are the central themes discussed in the document?
Core themes include the evolution of "no-frills" business models, Porter's competitive forces, the impact of industry deregulation, and the strategic marketing mix.
What is the main objective of EasyJet’s business strategy?
The goal is to leverage price elasticity in short-haul air transport to increase total market size and gain passengers from traditional network carriers.
Which scientific methods are applied to analyze the industry?
The author utilizes standard strategic management tools, specifically Porter’s five forces framework and a PEST (Politico-legal, Economic, Socio-cultural, Technological) analysis.
What does the main body of the work cover?
The body analyzes EasyJet’s corporate history, its operational model derived from Southwest Airlines, its marketing mix, and its competitive standing against rivals like Ryanair.
Which keywords best characterize the research?
Key terms include "Low-cost carrier," "No-frills," "Competitive analysis," and "Marketing mix."
How does EasyJet handle its competitive response to new market entrants?
The document suggests EasyJet must conduct rigorous market research on customer segments and cost structures to decide between aggressive price competition or segment-specific positioning.
What role does the "Southwest Model" play in EasyJet's success?
It provides the framework for high-utilization, single-aircraft fleets, point-to-point service, and internet-heavy sales channels which are critical to the firm's cost-saving efforts.
- Quote paper
- Florian Mayer (Author), 2003, A case study of EasyJet and the airline industry, Munich, GRIN Verlag, https://www.grin.com/document/13594
