A Marketing Plan for Ryanair       

EXECUTIVE SUMMARY

The objective of this report is to provide a marketing plan for Ryanair by conducting a marketing audit. Therefore a marketing plan has been developed whereby an analysis of the MACRO Environment and MICRO Environment, Ryanair marketing objectives, core strategy, marketing mix decisions has been evaluated. Analytical tools such as PESTEL, SWOT and porter’s five forces have been used for that purpose.

2.0: MARKETING AUDIT

The marketing audit can be viewed as an “umbrella” that covers efforts to assess customer needs and wants and to understand community patterns. It is “a comprehensive, systematic, independent, and periodic examination of an organization's or business unit marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the organisation’s marketing performance” (Kotler et al. 2008: 447). Marketing audit allows the marketing manager to make alterations to the plan if necessary by considering both internal and external influences on marketing planning, and clarifies opportunities and threats. It is conducted not only at the beginning of the process, but also at a series of points during the implementation of the plan.

There are a number of tools that can be used for Ryanair marketing audit, for example SWOT analysis for the internal environment, as well as the external environment. Internal environment needs to looks at the following resources: Men, Money, Machinery, Minutes, and Materials. To get a fruitful result talking to employees from all departments, and where appropriate, suppliers and customers are necessary. PEST and Five Forces Analyses of the airline industry, which focus solely on the external environment, will add value on it. This marketing audit should be undertaken by keeping not only the short term perspective in mind but also the middle and long term perspective should be taken into consideration.

4.0: OUTLINE PLAN TO RE-LAUNCH

From the internal and external marketing audit of Ryanair especially based on their strength and opportunities it is clear that the following marketing mix will be best suited for Ryanair. The analytical tools have been used for audit are PESTLE (see appendix 1), SWOT and porter’s five forces  of Ryanair (see appendix 2).

4.1: Product or Services

The Ryanair will maintain its low cost, no frills air travel to European destinations. They will continue adding new exceptional service like online check in and allowing passengers to use mobile phones, but they can also start hotel and restaurant business in the tourist area and can start rail service between Europe’s most popular cities, thus minimizing the threats of substitute product

4.2: Prices

Ryanair will maintain its cheap pricing strategy without deliberately creating confusing price schedules, including hiding certain costs that only become apparent to customers after usage.

4.3: Place and Time

Ryanair will use direct marketing techniques to get and keep customers and to extend products and services to them with proper Customer Relationship Management to reduce costs. Ryanair’s will be using many secondary airports as destinations to reduce costs. The turnaround time will be 30 minutes so that flight attendants get little bit more time to prepare the aircraft for next fly.

4.4: Promotion and Education

Ryanair will use the options in the marketing communication mix include personal communications such as personal selling and customer service, as well as impersonal communications such as advertising, sales promotions, public relations, corporate design, and the physical evidence offered by the service scape of the service delivery site. Instructional materials will be produced to educate customers on how to make good choices and obtain the best use from the services they have purchased.

4.5: People

Ryanair will be committed to effective management of human resources and work closely with marketing and operations managers to balance.  In the long run, offering better wages and benefits will be more financially viable strategy than paying less to employees who have no loyalty and soon defect.

4.6: Physical Environment

The Ryanair service environment will be redesigned to make customers feel good and boosts their satisfaction, while enhancing the productivity of the service operation.

4.7: Process

The service products will be redesigned and managed to significantly shape the customer experience. Customers’ level of desired participation will be determined so that they would be motivated to play their part in the service delivery.

4.7: Productivity and Quality

Ryanair will improve its productivity for reducing cost, but it must beware of making inappropriate cuts in service that will be resented by customers and employees. It will be improving the quality of services, which should be defined from customers’ perspective.

5.0: OVERALL RECOMMENDATION

Regarding environmental analysis, Ryanair is operating in a highly uncertain environment. Defensive measures   have   to   be   planned   against   government intervention, airport charges and misleading critics over the company.

From industry analysis, Ryanair should concentrate on direct competitors activities and strategies like Easyjey and Goair. However indirect competitions can results through other modes of transport.

Looking upon Internal analysis, it is recommended that Ryananir to build its brand image and its strategic low cost provision.

6.0: SUMMARY

The Report has indentified the factors of internal and external industry audit that affect Ryanair’s performance. This report has indentified the external factors like PESTLE which are the potential factors for the success of the company. This report analyses internal aspects such as the SWOT analysis, the business core strategy. Finally, based on the analysis one marketing mix base recommendation and one overall recommendations have been suggested on which Ryanair has to execute   towards strategic management in future.

APPENDIX-1: PESTLE ANALYSIS OF RYANAIR

Ryanair is influenced by external factors that include; political, economic, social, technological, legal and environmental factors.

Political

In 1997, deregulation of aviation opened up opportunities for airlines across Europe to compete with each other. Formation of EU is opening up the market still further. However, world political crisis also has an effect on Ryanair’s performance. For example- because of military operations in Libya, Ryanair is being forced to divert its flights from Trapani airport in Sicily, increasing its operational expenses (Paris 2011).

Economic

As a European operation, so many of its operations are not affected by exchange rates, despite operating internationally. However, Oil price and tax policy are an issue for all airlines. The Economist (2005) argues that compared with most forms of transport, aviation is under taxed.

Social

Migrant workers has expanded the market for Ryanair, as many from less affluent Eastern European countries have migrated to west, and are likely to prefer  to return home regularly on cheap tickets (Creaton 2005).

Technological

The internet has enabled Ryanair to keep costs down by allowing customers to book tickets and check in through its website rather than through an agent and employees. Aircraft technology offers opportunities. Ryanair currently is replacing 737-200s by Boeing 737-800s, has an even greater range and capacity than the 737-200. However, the web is less attractive in East European markets, as penetration of both the internet and credit cards is lower than in Western Europe (The Economist 2004a). This situation is likely to change in the longer term.

Legal

The legislation has the most impact on Ryanair. Because of European Commission ruled that subsidies from Charleroi in Belgium were illegal (Creaton 2005), Ryanair's share price dropped by 30% (The Economist 2004b). In 2009 European Commission again blocked the acquisition of AerLingus (29.8%), the Court upheld the Commission’s decision (United States Securities and Exchange Commission 2009). Moreover, as Ryanair employing staff across Europe, legal issues are more complicated than within a domestic operation.

Environmental

The main environmental issue facing Ryanair is that of greenhouse emissions. At present, aviation accounts for roughly 5% of the UK's emissions, but this is expected to rise to 25% by 2030 (The Economist 2005). On November 19, 2008, the European Council of Ministers has put a cap for CO2 emissions, will be effected from 2012. Therefore, Ryanair has invested €17bn over the past 10 years on its latest aircraft replacement, have reduced fuel burn and CO2 emissions by 45% (Wikinvest 2009). Moreover, Ryanair is subject to international, national and, in some cases, local noise regulation standards.

REFERENCES

Creaton, S. (2005). Ryanair: How a Small Irish Airline Conquered Europe. London: Aurum. pp: 228-266

Kotler, P., Shalowitz, J., Stevens, R. J. (2008). Strategic Marketing for Health Care Organizations: Building a Customer-Driven Health System. San Francisco: John Wiley & Sons (Jossey Bass).

Paris. Ryanair diverts Sicily flights due to Libya. The Reuters, 20 March 2011. Available From: http://uk.reuters.com/article/2011/03/20/uk-libya-italy-Ryanair-idUKT RE72J4F720110320  [Accessed On 7 April 2012]

The Economist. Headwinds. 17 December 2005, pp: 5-34.

The Economist. Spreading wings.15 May 2004a, pp: 69.

The Economist. Grounded. 31 January 2004b, pp: 61.

Wikinvest (2009). Environmental Regulation. Available From: http://www.wikinvest. com/stock/Ryanair_Holdings_(RYAAY)/Environmental_Regulation. [Accessed On 7 April 2012]