Example Of A Comparison Of Marketing Practices: Easyjet V. Ryan Air Airlines Essay
The current trends have seen some organizations lose their market shares to their rivals depending on how well each one of them adapted to new environments (Greg, Gittell, Hoffer, Thomas, and Andrew, 2009, p. 45). Marketing capabilities influence and determine the success of different companies operating in particular industry. In most cases, the company with the best marketing strategies acquires the largest market share or wins competitive advantage over rivals (Lindgreen, Palmer, and Vanhamme, 2004, p. 685). The case of Easyjet and Ryanair airlines presents a good example of how the marketing capability of a company influences its market share and subsequently defines its success (Marketing Tango, 2013, par. 7). This paper evaluates the marketing practices of Easyjet and Ryanair airlines, which are rivals in an airline industry, comparing their trends and how they have managed to acquire and utilize new technologies in their marketing efforts. Additionally, based the failures of Ryanair’s in its practices, the paper suggests some recommendations for the future operations.
Based on various reports, Easyjet has managed to retain low-cost leadership in the airline market, despite the stiff competition from competitors like Ryanair. However, this does not mean that it overcame its rivals without a fight. Ryanair has also tried to offer its services at lower prices in its numerous routes for a longer period (Greg, Gittell, Hoffer, Thomas and Andrew 2009, p. 78). Under cost leadership strategy, both airlines have adapted this model through further cost cutting, as they seek to eliminate some costs levied on particular services (Boru, 2006, p. 45). For instance, the companies have been warded off the temptations of selling some of their connecting services while they also strive to provide complimentary snacks on board (Greg, Gittell, Hoffer, Thomas and Andrew, 2009, p. 56). Easyjet surpasses Ryanair, especially when it comes to the quality of services offered. Therefore, even if both companies offer their services at subsidised prices, Easjet airline has managed to offer quality goods and services (McGarrity, 2015, par. 7).
Based on various reports, the demand for cheap airline services in European markets has been increasing with the introduction of new travel routes (O’Connell and Williams, 2005, par. 260). With such developments, the key players in this market have been strategizing themselves to take exploit or take advantage of emerging opportunities to enable them expand their market shares (O’Connell and Williams, 2005, par. 285). Specifically, taking an advantage of the new markets is one of the best marketing approaches any company may adopt to broaden its market share (McGarrity, 2015, par. 6). Both EasyJet and Ryanair have been at the forefront in trying to take advantage of the emerging markets (Marketing Tango, 2013, par. 9). For example, Ryanair is currently serving more than 729 routes across Europe and North America, in 31 countries. On the other hand, Easyjet is now serving over 700 routes in about 32 countries. Such statistics are indicative of cutthroat competition, especially in relation to market expansion. Indeed, it is clear that both companies have managed to access and acquire almost equal opportunities in similar markets. In reference to time of operations, Easyjet seems to have expanded its market share at a higher rate than Ryanair. Research indicates that Easyjet was established in 1995 while Ryan Air commenced its operations in 1985.
In references to the STP marketing model, both companies are very effective at market segmentation, targeting, and positioning. For instance, both companies usually segment their markets demographically, financially, and based on accessibility, something that has seen both of them extends their market shares more rapidly than any other airline in Europe (O’Connell and Williams, 2005, par. 286). For effective segmentation and positioning, the companies conduct thorough market researcher studies in their target markets. Subsequently, they use the information collected to position the services to the right customers and at the most favourable prices. However, statistically, Easyjet seems to be more efficient and successful.
In terms of creativity and innovation, Easyjet has managed to acquire some of the most advanced technologies in most of its marketing practices an effort that enabled it meet high customers' satisfaction and expand its market share in comparison to Ryan (Marketing Tango, 2013, par. 5). With contemporary advancements as well as the advent of globalization, technology has become a critical and crucial aspect in every aspect of development, especially in business operations. For instance, Easyjet has adopted the use of technology in almost all its processes, starting from safety assurance, aircraft maintenance, and in marketing (Marketing Tango, 2013, par. 10). For example, the company has introduced a mobile technology that enables customers to scan their passports using their Smartphone cameras. Specifically, this application has seen the company increase its competitive advantage over its rival, Ryanair (Adthena, 2015, par. 6). Such a development has also increased its services delivery efforts, thereby bolstering its competitive advantage and increasing its market share over their competitors (Lindgreen, Palmer and Vanhamme, 2004, p. 675). On the contrary, Ryanair has also been adopting various technologies, although at a slower rate and degree. For instance, in its marketing efforts, the company has adopted the use of online platforms. However, it has not yet extended its efforts to other modern methods, such as mobile marketing and the use of robots for maintenance.
Easyjet is widely considered the safest airline in Europe. The company has adopted advanced technologies and contemporary methods of ensuring safety in their aircrafts as well as for their customers. For instance, the company has developed a technology that uses drones to inspect its aircrafts fleets. In most instances, they undertake these inspections to identify and avert malfunctions that might risk the safety of their customers. The company is also planning to develop maintenance robots to handle its support and maintenance efforts (Williams, 2006, p. 289).
Based on international marketing, both companies are competing on the regional as well as other international markets such as North America and Europe (Williams, 2006, p. 284). Since its establishment in 1995, Easyjet has managed to expand its operations to international markets at a higher rate than Ryan air (Marketing Tango, 2013, par. 7). For instance, the company is using acquisitions to extend its presence and activities in various international markets.
Conclusion and Recommendations
Both Easyjet and Ryanair airlines have developed some of the best marketing practices in relation to airline effectiveness and accuracy (Marketing Tango, 2013, par. 9). However, Ryanair has not managed to adopt new trends in most of these practices in comparison to its rivals (Adthena, 2015, par. 8). Under the cost leadership strategy, both companies have developed robust cost-cutting techniques for their services across various markets. However, Easyjet has managed to use the best cost leadership strategy compared to Ryanair (Adthena, 2015, par. 4). Precisely, the company has managed to balance aspects such as cost leadership, quality, and organizational requirements. Easyjet is also ahead in innovation, market venture, and safety assurance.
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