Easyjet ONLINE MARKETING STRATEGY Analysis

Keywords: easyjet pest, easyjet swot, swot easyjet, pest easyjet

Jump to: Easyjet PEST Evaluation | Easyjet SWOT Analysis | Easyjet Marketing Mix | Implementing and Taking care of Easyjet's Policies | CSR at Easyjet

This technical report has been purchased to clarify the e-marketing strategies implemented by the EasyJet air travel to get competitive advantages over its competitors in the marketing for low cost aviation. Situation analysis present position and industry of EasyJet by use SWOT and Infestations model.

This report looked at the many strategies used by EasyJet and investigated in depth the Western budget flight industry. The main objective is to review EasyJet's successful e-marketing promotions.

Since 1995, EasyJet Air travel Company Limited is a superb and successful exemplory case of a European flight. The chairman Stelios Haji-loannou (Greek) founded the company this year. It is based on the US carrier SouthWest, which is low cost, no-frills model. Stelios employed a pricey brand consultancy and offered them 100, 000 to create one. A month later, the consultants resulted in at EasyLand with mag clippings attached to bits of cardboard. Unimpressed by their initiatives, Stelios promptly fired them. In the end, he developed the airline's name himself. The term 'easy' continued coming into his mind, so he made a decision to christen the airline EasyJet. For the company logo he visited a little local design consultancy, White Knight, which provided the air travel its famous shade of orange, know as Pantone 021C, employed by no other airline at that time or since. The design consultancy then created a straightforward set of images for the airline's first marketing campaign.

In 1995, EasyJet starts off flights from Luton to Glasgow and Edinburgh with to leased Boeing 737-300 with a capacity of 148 seats at a cost of only 29 for just one way ticket. Glasgow and Edinburgh are the first routes. The reasoning was simple: southern Scotland was the biggest home market from London that air was a reasonable alternative to road or rail. The airline opened a telephone reservations centre and got its first scheduling on 23 Oct 1995. The phone at the EasyJet mobile phone reservation centre started out ringing rather than stopped. These were in business.

Two years later, EasyJet launches its website, easyjet. com. Web bookings grew from zero to 26 % of business in a year. Around the first day of trading during one advertising, 13, 000 chairs were sold, thought to be an archive for the most commercial transactions carried out on the internet in 24 hour period.

By mid-1999, when its internet sales symbolized 58 % of the full total, EasyJet because the first flight to make increased sales on the internet than through normal telephone reservations. In March 2000, EasyJet come to two million seating, and it needed only another three months to reach the three million make. By 2001, online bookings regularly come to 80 %, the highest percentage of online sales for any airline on earth.

In financial view, EasyJet plc was shown on the London STOCK MARKET (LSE: EZJ) and was a constituent of the FTSE 250 Index on 5th November 2000. In October 2004, the international investment company FL Group was purchased an 8. 4 per cent stake in EasyJet. In 2005, FL Group increased its share in the business to 16. 9 %.

Lois (2005) stated that, in line with the investment house, EasyJet was becoming a paperless company with a robust electric infrastructure. The results were lower supervision costs, better management information plus more responsive decision making.

Situation Analysis

In this chapter, I am going to present position and evaluation the existing position using both of used SWOT and PEST model.

PEST Evaluation of Easyjet

The next factors are likely to have an influence on the EasyJet.

(P)olitical factors

In 1990 the European deregulation of commercial aviation coincided with the enlargement of the reduced cost airline industry. The LCC on the market were able to take advantage of the relaxed regulations and develop their operations. On the other hand, threat of conflict in the East Euro and European union east enlargement may provide access to viable the new marketplaces were also the politics factors of EasyJet.

(E)conomical factors

Mercer Management Consulting (2002) reported that the low cost airline market conforms to the standards of three components. Firstly, it provides a simple product consisting of no seat booking, free seats, and sufficient in flight service. They are an authentic no frills airline with a straightforward product wanted to the marketplace. Webster (2004) observed EasyJet's ability to maintain a high degree of customer concentration through a fresh, user-friendly website with a better reservation process.

Secondly, mergers and acquisitions is also the low cost air travel market's quality; the extension of existing low cost airlines and finally, market exits because of this of individual bankruptcy. Finally, the industry runs an inexpensive ethos, which is looked after by lean sales, high output of resources, low maintenance costs and low pay.

(S)ocial factors

The low priced service providers position their product to leisure travellers and non business vacationers. However EasyJet has differentiated itself by targeting the business and leisure segments. This behavioural segmentation creates a far more dynamic edge in comparison to their rivals who solely focus on leisure travel. Thus, EasyJet must be sure that its strategy is personalized to a wider market. Walton (2005) verified that EasyJet was shown as a Western low cost flight with an up-to-date reading of 26 million passengers in 14 key countries. They have 190 routes to 58 airports and 163 million people live within 1 hour of EasyJet's international airports.

(T)echnological actors

Low cost carriers be capable of maintain a high degree of customer emphasis through user-friendly websites with much better booking functions. These websites are capable of charging bookings with increased convenience and utilising an easy to use fare finder to get the cheapest fares. Advertising tickets via the technological medium of websites and hence with no travel companies, they avoid paying firm commissions.

SWOT Evaluation of Easyjet

(S)trengths

EasyJet was used the bright orange as Pantone 021C, used by no other airline at that time or since. It have a successful financially that they trim out all dishes and treats on travel head to, can reduced the price of operation. Have more flexible company and being viewed as an innovative.

The airline opened up a telephone booking centre is a solid e-business on 1995. EasyJet is also was an integral part of the consortium and have awarded by UK' air traffic control system 'Country wide Air Traffic Services (NATS)'.

Single model of aircraft reduced training, maintenance and supervisory costs. Finally, EasyJet has been wisely buying strong brand build assessed like advertising and television shows ensured high brand recall.

(W)eaknesses

Below involve some weaknesses for EasyJet organisation. It persisted sustenance of cost management can be difficult in a powerful market. The two drivers of expansion, the give attention to price and the give attention to convenience seem to be to be come to their natural restrictions and differentiation from there might become difficult.

The airline will not own the 'EasyJet' brand, it's held by Sir Stelios and for that reason, doesn't have control on its performance of other products and services used the same name. It also loss of usage in future could adversely affect its market performance.

(O)pportunities

Recent extension of the European union has led to open up of new market segments for the LCCs. Their low fares will increase movement of job seekers across boarders and also promote the tourism industry, lead to monetary growth. Consolidation could help EasyJet to a certain degree offset the pressure on its costs and fares. In any other case, vertical and horizontal expansion could be an important option for EasyJet for development in mature markets and offset any future risk of increased in service provider costs. Withdrawal of traditional airlines from less traffic-intense routes could be an opportunity for widened. EasyJet will not seem to have any plane tickets to Scandinavian capitals like Stockholm and Helsiki where immigrant move was increasing.

(T)hreats

The threats of EasyJet acquired some factors. Terrorism and catastrophic damage can lead to lesser air travel and loss of infrastructural support, warfare hazards and outbreak of epidemics or pandemics could increase apprehensions about flights. Technology progression in the carry out of conferences like video conferencing can be detrimental to short distance flights and impending increased in environmental fees could increase costs.

In addition, limited or no slot machine game availability could be hurdle in future development plans and due to its limited energy hedging insurance policy, EasyJet is more susceptible to gas price fluctuations increased by variability in its costs. Money fluctuations is also the factor of risks, it will impact especially the US dollar denominated costs like airplane purchase, aircraft funding costs, maintenance reserve repayments, fuel purchase etc. . Excess capacity and cost reducing tactics by rivals can affect passenger traffic on popular routes. Imitation of some main no-frills features by traditional airlines on same routes can mistake and blur the distinctive image of any LCC.

Additional, traditional players can partially turn over or start their own baby low cost airline. Last, dependence on third party companies could cause problems when these contracts are not restored or negotiation of suitable replacement will not happen or if higher rates are recharged.

eMarketing Strategy Analysis

This chapter was analysis what eMarketing strategy has the EasyJet used or is designed to look at and what's the worthiness proposition and differential benefit of this plan.

Marketing application of internet marketing

Internet centered media offer a selection of opportunities for marketing products and services over the purchase circuit. EasyJet demonstrate the applications of internet marketing given that they show how organisations may use online marketing communications such as their internet site, third-party sites and e-mail marketing as:

- Immediate response medium: EasyJet uses sponsored links whenever a user is researching a flight by using a internet search engine to prompt those to directly go to the EasyJet site by visiting through to it. In the same way the EasyJet e-mail publication sent to customers can encourage them to click on through to a site to generate sales.

- Platform for sales orders: EasyJet markets plane tickets online to both consumers and business tourists.

- Customer service device: Customers serve themselves on easyJet. com by looking at faqs.

- A relationship-building medium in which a company can connect to its customers to better understand their needs and offer them relevant products and will be offering. EasyJet uses its e-mail publication and tailored notifications about special discounts to keep its customers and employ them in a dialogue to understand their needs through completing studies and polls.

Consumer matrix

Bowman and Faulkner (1997) were also stated that the consumer matrix details that customers have in regards to to the goods and services wanted to them and the prices charged.

When used this theory to use in EasyJet, can "guestimate" the overall perception made by the marketplace. EasyJet's flights was provide value to consumer as gained the huge benefits from the web or telephone exchange relative to price look favourable compared to another challengers.

In the view of heterogeneousness, in line with the requirements for the service, mentioned that, "one service meets all needs" might be allow it to the wrong competitive strategy.

More consumers were demand the low cost alternate and price sensitive with the air travel section. EasyJet was to be able to attain sustainable competitive advantage by the client matrix price strategy.

Marketplace channel structures

Channel structures explain just how a maker or selling firm gives products and services to its customer. The distribution channel will contain a number of intermediaries such as wholesalers and stores.

The romance between an organization and its route associates shown in below physique can be considerably altered by the opportunities afforded by the internet. This occurs because the internet offers a means of bypassed some of the channel partners. This process is recognized as disintermediation or 'slicing out the middleman'.

Benjamin and Weigand (1995) computed that, using the sale of quality tee shirts for example, it was possible to make cost cutting down of 28 % in the case of (b) and 62 % for case for (c). A few of these cost benefits can be offered to the client in the form of cost reductions.

'6 Is' of eMarketing

In this section, I used the McDonald and Wilson (1999) as the '6 Is' of eMarketing to summarised the differences between the new multimedia and traditional press. The '6 Is' are useful since they highlight factors that apply to practical areas of internet marketing such as personalization, direct response and marketing search, but also tactical issues of industry restructuring and integrated channel marketing communications. The '6 Is' are Interactivity, Intellect, Individualization, Integration, Industry restructuring and Self-reliance of location. However in this circumstance, I only target one of the factors - Integration, for employed by this theory.

The Internet provides further range for integrated marketing communications. Below number show how it is merely one of many different media programs. When evaluated the success of a web site, the role of the internet in interacting with customers and other associates can best be considered from two perspectives.

The EasyJet website can be utilized as a direct response tool allowed customers to respond to offers and campaigns publicized in other multimedia. The internet site can likewise have a direct response or call again facility included in it. The web can be used to support the buying decision even if the purchase will not occur via the web site. Customer information provided on the net site must be integrated with other databases of customer and order information such as those accessed via personnel in the call centre to provide what Seybold (1999) calling a '360 degree view of the customer'.

The internet can be used to support customer service. In EasyJet, who received over half their orders electronically, encourage users to check a set of frequently asked questions compiled from past customer enquiries before calling customer care via cellphone.

Marketing Mix

The marketing combination - the 4 Ps of Product, Price and Promotion originally proposed by McCarthy (1960) - is used as an essential part of implemented online marketing strategy by many practitioners.

  • Price

Baker et al. (2001) have described that the price element of the marketing mix refers to an organization's rates policies which are used to define rates models and, of course, to create charges for products and service. In EasyJet case, low price is an integral element of the brand. Used differential pricing, booking in advance makes a ticket less costly and off-peak visiting. Additional, can have the discounts for tickets though online booking.

  • Product

There are many alternatives for buying the product when EasyJat was developing its online strategy in the past. The EasyJet website also has car hire, hotel reservation services and links to other EasyGroup website. In addition, it provided indicate point services.

  • Place

Allen and Fjermestand (2001) were discovered that that the internet gets the very best implications for put in place the marketing mix since the internet has a worldwide reach.

Internet scheduling system and open a telephone reservation system were the new channel structures for publication the tickets.

  • Promotion

Specification of the promotion was usually part of any communications strategy. EasyJet shows it's a number one position among Europe's low priced carriers. Prints are in bright orange telephone scheduling number and website link privately of its plane.

Competitive Strategy

Michael (1980) has referred to three basic types of strategies that are usually employed by organisation. You can find cost authority, differentiation strategy and market segmentation strategy. However in EasyJet's circumstance, only two basic of competitive benefits was used: cost leadership and differentiation.

Differentiation strategy

EasyJet experienced made prominence efforts to make their product pop away from its low priced airline opponents.

McDaniel (2000) described that a product differentiation feature works as competitive benefit was no longer alive. Also, EasyJet was usually the trend-setter for differentiation its market.

Shiv and Alfred (2001) was found out a matrix for classifies and recognizes types of competitive placement. EasyJet provided differentiation service of many routes to major airports such as Gatwick airport terminal which shifts the focus to high produce traffic while abnegate economical and operative benefits of secondary international airports.

For the item differentiation, EasyJet provide more variables such as have self check in kiosks, unrestricted baggage restraints, easy useful for the website and arranging of tickets, these features of differentiation can helps the clients to enhance their purchase ability with EasyJet.

Implementation of Strategy

How is the management creating new primary and expanded value for customer?

EasyJet have three main components to make new key and extended value for customer, the first was provide the number one safe practices airline, the next was build up a number one air move network, and the last was enhance easyjet. com.

Provide the number one safety air travel:

In 2009, EasyJet found the release of a fresh Security Management System (Text), it's provided a construction for safety conformity and manage both pillars of protection performance at EasyJet. With productive support by the European Aviation Protection Agency's Western Commercial Aviation Protection team, the Safe practices Management System was a continuous improvement process.

Build Europe's number 1 air move network:

Slot management: EasyJet considers departure time was very important to all customers, both of business travels and weekend breaks. Not the same as other competitors, who used smaller, much less convenient airports, plus more remote, over 90 per cent of EasyJet aeroplanes operate into and out of congested international airports. At these occupied business and facilities, where slots were at a premium, EasyJet work hard to develop their profile across Europe. The slot machine game management team has know-how and considerable functionality, with over 60 years of intensive contacts and combined experience at Western european airports.

Base Management: Right away ceases can create needless costs. EasyJet were located airplane and staff by controlling the bases, these were able to maximise revenue and improve efficiency. Constantly under review the bottom location. For instance, since 2006, EasyJet increased the amount of aircraft based in Italy and France. Such as for example Luton, they also reduced capacity at under doing bases.

How is the management controlling their online and offline campaign methods?

Efraim (2008) mentioned that, in a click and mortar business, the allocation of resources between offline and online activities can create difficulties. Especially in sell aspect projects, both activities may very well be competitors. In cases like this, personnel responsible for offline and online activities may work as competitors. This discord could cause problems when the offline area needs to deal with the logistics of the web part or when prices have to be determined. Corporate culture, the ability of top management to expose change properly, and the utilization of innovative process that support cooperation will all

Pricing Strategy

Traditional options for determining price are the cost-plus and rival models. Cost-plus means accumulated all the costs involved - materials, labour, rent, overhead, etc and adding a percentage mark-up as profit. The rival model determines price predicated on what opponents are charging for similar products in the marketplace.

Pricing products and services for online sales changes these prices strategies in understated ways:

Price comparison is simpler: In traditional marketplaces, either the customer or, more regularly, the seller has more information than the other party, and this situation is exploited in deciding a product's price. By facilitating price contrast, the EasyJet's internet scheduling system helps created what economists call a perfect market - one where both buyer and the sell have ubiquitous and equal usage of information, usually in the buyer's favour.

Online and offline goods are charged in another way: In EasyJet's costs strategy, it was problematic for click and mortar company. Establishing prices lower then those offered by the off-line business can lead to internal conflict, whereas preparing prices at the same level will harmed competitiveness.

Differentiated pricing can be considered a pricing strategy: For decades, EasyJet have maximized earnings with yield management - charging different price for the same product. EasyJet is in the B2C marketplace, one-on-one marketing can stretch yield management from a category of customer to specific customers. Bockstedt el al. (2005) also talked about that, 'versioning is selling the same good but with different selection and delivery characteristics, is especially effective is reselling digitized goods. '

Last minute offers: I attention that, used, last minute bargains were sometimes offered, often at suprisingly low prices. If the airline makes a decision to release in such offers, either with a reseller or immediately, it can placed a new price that will allured the lower end of the tourist portion that didn't purchase seat tickets. Last minute offers were always made very near the actual air travel time.

The overall impact of these changes is very good news for the buyer. Internet technologies have a tendency to provide consumers with easier usage of prices information, which enhances their bargaining vitality. To stay competitive and profitable, retailers will have to adopt smarter charges strategies. Specifically, business must look at ways of using the internet to optimize prices, generally through greater accuracy in environment prices, more adaptability in changing prices, and new means of customer segmentation for differentiated charges.

What impact is the execution of strategy having after the performance of the business?

To improve results for just about any aspect of any business, performance management is essential. The process and systems designed to monitor and improve the performance of a business and specific management activities such as internet marketing are widely known as 'performance management systems' and derive from the analysis of performance way of measuring systems.

Defining the performance metrics platform:

Kotler (1997) stated that measurement for assess the effectiveness of internet marketing also be related to different degrees of marketing control. Included in these are strategic control, profitability control, total annual plan control and efficiency control. Efficiency steps are more worried about minimizing the costs of online marketing while increasing the dividends for different regions of concentrate such as acquiring people to an internet site, converting visitors to outcome or attaining do it again business.

Chaffey (2000) reveals a framework of measures which can be applied to selection of different companies. Metrics for the categories are generated as aims from internet marketing planning which then need to be monitored to determine the success of strategy and its own implementation.

Business contribution

A contribution to business success is always the ultimate aim of e-commerce. To evaluate this, leading companies arranged an internet contribution focus on of achieving a certain proportion of sales via the route. When EasyJet (www. easyjet. com) launched its e-commerce facility in 1998, it place an online contribution aim for of 30 per cent by 2000. They put the resources and marketing communications plan in place to accomplish that and their goal was reached in 1999. Examining contribution is more difficult for a business that cannot sell products online, however the role of the internet in influencing purchase should be assessed. Discounted cash flow techniques are being used to assess the speed of return over time. Service contribution from e-channels should also be evaluated.

Tools and techniques for collecting metric and summarizing results

Techniques to gather metrics include the collection of site visitor activity data such as that accumulated from site log files, the assortment of metrics about results such as online sales or email enquiries and traditional marketing research techniques such as questionnaires and concentration groups which acquire home elevators the customer's experience on the internet site. I begin by describing methods for collecting site visitor activity and then review more traditional techniques of general market trends which assess the customer experience.

EasyJet was used customer relationship management CRM software to improve its online reservation server and reduce functional costs.

Tony (2006) described that CRM was specifically about gather customer's information to provide their own customer support through the net. The CRM system was centralised all the data and information and allows enhancements in customer service to be deployed and analyzed. An email marketing automation tool and a pilot words self applied service solution is also can offer and enhanced degrees of customer support with EasyJet.

Legal and ethical issues

Plamer (2005) stated that business ethics identifies what sort of company combines the core ideals of honesty, trust, esteem, and fairness into its guidelines and tactics and complies with legal benchmarks and restrictions. The opportunity of business ethics has widened to encompass a company's activities with regard not and then how it treats employees and obeys laws but to the nature and quality of the connections with shareholders, customers, business lovers, suppliers, the community, environment, and future generations. Western european companies especially have embraced this extended description of ethics.

e-Commerce honest issues

Two additional e-commerce related moral issues are non work related use of the internet and rules of ethics.

Non work related use of the internet

EasyJet had a policy to steer clear of the employees used email and the net for non work related purposes. The usage of company property for email and inter use creates risk. The degree of risk will depend on the degree to that your company has executed policies and process to prevent and detect illegal uses. EasyJet was also placed responsible for their employees' use of email to harass another worker, participate in unlawful gambling, or spread child pornography. Some employees may use the business email to advertise their own business. Used other commercial computing facilities for private purposes may be considered a problem.

Codes of ethics

Volonino and Robinson (2004) were found out that a practical and necessary approach to limit non work related internet browsing can be an internet Appropriate Use Policy (AUP) that employees must consent to. Without a formal AUP, it was a lot more difficult to enforce satisfactory and eliminate undesirable behaviours and punish violators. Whenever a user signs to the corporate network, the user should visit a reminder of the AUP and be notified that online activates are checked. Such notification should be a part of a code of ethics.

EasyJet have some corporate web insurance policy recommendations, such as concern written AUP suggestions about staff use of the internet and communication systems including email and instant messaging; inform you to employees that they can not use copyrighted or trademarked material without permission. Post disclaimers of responsibility regarding content of online discussion boards and chat classes. Ensure that web content and activity comply with the laws in other countries, such as those governing contests and personal privacy.

Corporate Sociable Responsibility

A recent statement (University of Exeter Business University 2010) has suggested that Corporate Community Responsibility (CSR) was a procedure for business that calls for bank account of issues incorporate with environment and society in addition to the more traditional business consider of earnings and shareholders. CSR was not a new theory, it has advanced from its provenance in 19 hundred years corporate charity and much attention both in policy circles and academics.

EasyJet's goal was ensure have a competent as it can be in the existing business, both on the ground and in air, and found some solution to minimise its environmental impact in the future. The below details was show the EasyJet how to manage and monitor its environmental impact.

The impact of EasyJet on the environment was involved the next:

  • Greenhouse gas emissions: normal water vapour, nitric oxide and nitrogen dioxide (together NOx), carbon dioxide (CO2), some of which at altitude.
  • Particulate emissions: soot and sulphate particles, some of which at altitude.
  • Waste: chemical was involved in aircraft.
  • Noise.

EasyJet didn't have full CSR insurance plan, buy they have got an 'Environmental Code' with three offers, first one was to be environmentally productive in the air, and the next was an environmentally efficient on the ground and last was to lead in shaping a greener future for aviation.

  • EasyJet strives to be successful in the air:

EasyJet was investment in the latest technology such as choose the new airplane, the new technology airplane were more energy efficient than more aged models. Successful use of aeroplanes, each of Airbus A319s bears 26 per cent more seats than typical and potentially holds 57 per cent more passengers per journey than the Western norm.

Provide direct indicate point flights, avoidance of air congestion and screens its performance relative to other transport options.

  • EasyJet strives to be effective on the floor:

EasyJet' policy was to use the most efficient and simple earth equipment and simple international airport infrastructure requirements. EasyJet was also will keep surface journeys to the very least and minimal waste products, such as no frills service was designed.

  • EasyJet leads just how in shaping a greener future:

EasyJet shaped Western european policy on making air traffic system better and actively engaging with airplane manufacturers to affect next technology technology.

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