The purpose of this report is to provide a Marketing Plan for Ryanair, which is developed to strengthen the company’s position in the market. It is precisely tailored to the company’s actual organizational situation and its market environment.
The report deals with analyses of Ryanair Holdings plc and its core business – low cost flights – with regards to get a status of its performance and the actual market situation in order to develop a suitable and successful marketing strategy.
Ryanair offers low cost passenger flights within Europe. The airline serves short haul, point-to-point routes between Ireland, the UK and Continental Europe. Our idea is it to keep the product as simple as possible. Passengers travel ticketless without any frills in one class without any seat – it is simple air transportation from A to B.
The external environment in Europe favors Ryanair and the entire low-cost airline market with an air traffic growth of up to 20%. Regarding the competitive environment Ryanair - with a clear strategy and structure - gains in importance and already became the market leader in the intra-European low-cost airline market – closed-packed with Easyjet and followed by Air Berlin. With its 35 Mio passengers in 2006 and an excellent profitability on a high level of 20% is growing healthy and shows strong financial reserves of more than €2 billion.
Our customer is anyone within Europe in the age between 15 and 64, who wants to save money and still be able to travel by air to attractive destinations. This awareness of different passenger types requires marketing campaigns that cover all categories of potential customers. With this in mind we developed a Marketing Plan with specific tactical marketing activities.
We have ambitious goals and objectives for further growth and market penetration in Europe within a time frame of 6 years till 2012. On the one hand we plan to raise the market share within the low cost sector up to 40%. With our growing fleet of 200 airplanes in 2012, we want to double our annual passenger transportation to 80 million by then. On the other side we plan to eliminate the rest of our costly call centers and base the distribution only on online booking.
These concrete plans base on a realistic financial plan.The included best and worst case scenarios illustrate clearly that with implementing and executing all activities properly, the airline can quadruple its annual profit up to €1,230 billion in 2012.
Table of Contents
1 Introduction: Ryan Introduction: Ryanair Holdings plc
2 Situation Analysis
2.1 Analysis of the internal environment
2.2 Analysis of the customer environment
2.3 Analysis of the external environment
3 SWOT Analysis
4 Marketing Goal and Objectives
5 Marketing Strategies
5.1 Target customer profile
5.2 Product
5.3 Price
5.4 Place and Process
5.5 Integrating Marketing Communications (Promotion)
5.6 People and Physical Evidence
6 Marketing Implementation
7 Projected Profit and Loss Statement
8 Evaluation and Control
9 Conclusion
Objectives and Core Topics
The primary objective of this report is to formulate a comprehensive marketing plan for Ryanair to solidify its market-leading position within the European low-cost airline sector through 2012. The document explores the company's internal capabilities and external market dynamics to develop a strategy that optimizes cost-efficiency, enhances customer awareness, and drives long-term profitability.
- Strategic analysis of Ryanair’s internal and external business environment.
- Evaluation of target customer segments and purchasing behavior.
- Implementation of cost-leadership and pricing strategies.
- Optimization of digital distribution channels and promotional activities.
- Financial forecasting based on best-case and worst-case growth scenarios.
Excerpt from the Book
2.1 Analysis of the internal environment
Ryanair, with its 35 Mio passengers in 2006, is the market leader in the intra-European low-cost airline market – closed-packed with Easyjet and followed by Air Berlin. Appendix 2 gives a detailed overview by a comparison of the three major competitors. Ryanair’s profitability remains surpassing on a high level of around 20 %, while its competitors only reach 6% and less (Arthur D Little 2004, pp.7-8). The following table compares the latest financial and operational results of Ryanair, Easyjet and Air Berlin, whereas the Positioning-Portfolio illustrates Ryanair’s pure low cost strategy.
Ryanair works with a tight and compact organizational structure and with a clear strategy. Its main strength is the big financial reserves it has earned since years, which is estimated on 2 billion Euros (International Herald Tribune 2006). These savings and the airline’s profitability enable it to survive in a crisis or compete in price fights. This economical advantages result from its learning curve in aggressively optimizing production costs. In this regard Ryanair has kept its cost low also because of outsourcing services (see also Appendix 8 “Value chain”) to specialty operators and aggressively behaving towards suppliers like ground handling or airports. A very detailed description of “resources and structural issues” is attached as Appendix 2.
Summary of Chapters
1 Introduction: Ryan Introduction: Ryanair Holdings plc: Provides an overview of Ryanair’s history, mission, and current status as a pioneering low-cost carrier.
2 Situation Analysis: Examines Ryanair’s internal performance, current customer segments, and the external competitive environment in the European aviation market.
3 SWOT Analysis: Evaluates the company's strengths, weaknesses, opportunities, and threats to inform strategic decision-making.
4 Marketing Goal and Objectives: Defines clear, measurable targets for market share, fleet expansion, and distribution efficiency by 2012.
5 Marketing Strategies: Outlines the tactical approaches for targeting, product positioning, pricing, distribution, and promotional communication.
6 Marketing Implementation: Details how the marketing strategy is executed, including departmental responsibilities and internal training initiatives.
7 Projected Profit and Loss Statement: Presents financial forecasts comparing best and worst-case scenarios for the period 2006–2012.
8 Evaluation and Control: Describes the mechanisms used to monitor marketing activities and implement corrective measures.
9 Conclusion: Summarizes the importance of rigorous cost control and quality service in maintaining Ryanair's leadership position.
Keywords
Ryanair, Low-Cost Airline, Marketing Plan, Strategic Management, Competitive Advantage, Profitability, Pricing Strategy, Market Share, Customer Segmentation, Digital Distribution, Cost Optimization, Aviation Industry, Business Growth, SWOT Analysis, Marketing Mix
Frequently Asked Questions
What is the core focus of this document?
This report serves as a detailed marketing plan for Ryanair, designed to strengthen its market position and guide its growth strategy within the European low-cost airline sector through 2012.
What are the primary thematic areas covered?
The report covers situation analysis, SWOT assessment, marketing strategies (product, price, place, promotion), implementation tactics, and financial projections.
What is the main research objective of this plan?
The primary goal is to achieve significant market penetration, aiming for a 40% share in the low-cost sector and doubling passenger numbers to 80 million by 2012.
Which scientific methodology is employed?
The report utilizes qualitative and quantitative analysis, including Porter’s Five Forces, SWOT analysis, and financial performance benchmarking against key competitors like EasyJet and Air Berlin.
What topics are discussed in the main section of the document?
The main sections focus on analyzing internal resources, external market factors, tactical marketing activities, and the financial implications of different growth scenarios.
Which key terms define this publication?
Key terms include low-cost carrier, competitive advantage, cost leadership, yield management, and market expansion.
How does Ryanair maintain its competitive pricing?
Ryanair utilizes a combination of cost-saving measures, such as secondary airport usage, fleet commonality, and an exclusive online booking strategy to keep ticket prices significantly lower than those of traditional network carriers.
What role does the Internet play in Ryanair’s distribution?
The Internet is central to Ryanair’s strategy, accounting for nearly all ticket sales, which allows the company to eliminate expensive call centers and reduce overall distribution costs.
- Quote paper
- Sascha Mayer (Author), 2007, Ryanair and its low cost flights in Europe, Munich, GRIN Verlag, https://www.grin.com/document/87815
