Promotional Plan for Easy Jet Airlines: Direct Route to Ancona, Geona, Nea Anchialos and Reus

The report emphasizes on a promotional plan of Easy Jet Airlines for expanding its services through providing a direct route to Ancona, Geona, Nea Anchialos and Reus. The report discusses the promotional tools and channels applied for promotion, target audience, social and ethical issues in advertising, legal and regulatory issues, pricing techniques, and cost volume profit analysis.

Travel and tourism

Table of Contents
Introduction................................................................................................................................2
Promotional plan........................................................................................................................3
Easy Jet Airline..........................................................................................................................3
Promotional Tools and channels................................................................................................5
Target audience..........................................................................................................................6
Social and ethical issues in advertising......................................................................................7
Legal and regulatory issues........................................................................................................7
Pricing techniques......................................................................................................................7
Cost Volume profit analysis.......................................................................................................8
Conclusion and Recommendation............................................................................................11
References................................................................................................................................12

Table of figures
Figure 1: Internal variants of promotional plan.........................................................................4
Figure 2: Promotional tools and channels applied for promotion..............................................6

Introduction
The promotional plan can be defined as a significant instrument which assists the victorious
instigate of new product or service or for its extension in a new marketplace. Promotion is
considered as the function of enlightening, influencing and manipulating purchase verdict
(Antonov, 2015). The present report emphasizes on a promotional plan of Easy Jet Airlines
for expanding its services through providing a direct route to Ancona, Geona, Nea Anchialos
and Reus. Further discussion relating to cost volume profit analysis and application of same
by the organization has been presented. All the variants, i.e. ethical, pricing, legal etc.
regarding promotional planning have been discussed in the report.
Promotional plan
Figure 1: Internal variants of the promotional plan
Promotional plan is a vital planning tool which assists the management to contribute towards
a successful launch of a product or service (Ashraff, Salleh and Latif, 2017). It is a way to

persuade, inform and attract and influence decision relating to purchasing. The goals of the
promotional plan are creating an optimistic image; prospective consumers get to know that a
new business is being started, convincing consumers in new corporation and creation. The
two specific plans which are required for promotional planning are:
 An aperture plan to set the foundation
 An ongoing plan to prop up promotion process once it is in the way.
Easy Jet Airline
The easy Jet airline is believed as British Low-cost carrier airlines, having headquartered at
London Luton Airport. There is no doubt that it has amazingly worked well along with its
low rate pricing policy to infiltrate in the extensively competitive airline diligence. The
company is expanding through adding a new destination in Greece, Spain and Italy along
with providing direct routes to Ancona, Genoa and Nea Anchialos and Reus. Market
psychiatry recommends that the idea of low rate budget flights is proving to get attractiveness
since people wish to journey economical with necessary amenities. This shows that various
more competitors are anticipated to join low price industry so as to contend with Easy Jet
Airlines. It is estimated that it will constantly discover new methods of price savings to make
sure offering the low ticket on its flights (Beria, Redondi and Malighetti, 2016). Moreover, it
is the foremost airlines in the world that started e-ticket journey and also its watchword
describes that “now everyone can fly”. In relation to presented airlines corporation, it is a
latest instinctive no additions airline. Furthermore, Easy jet Airline has the ability to contend
with the conventional filled frills airlines, despite its low budget facilities are not capable of
matching with the assistance of ordinarily filled frills in terms of justice.

Promotional Tools and channels
Figure 2: Promotional tools and channels applied for promotion
Advertising: It is referred as a form which is paid communication regarding the details of
product or service (Cattaneo and et al. 2016). In the present scenario, social media has been
proven the best platform for promoting any product or service. Thus, the same will be applied
by Easy Jet airlines so that maximum no. of people can be influenced and attracted regarding
the new as well existing services of the company.
Sales Promotion: Promotion is an incentive tool in which attempt is made to develop a
reason for purchase. Discount can be provided on first time booking, or less fair can be
charged in case pre-booking are being made. Additional deals can be provided on the basis of
targeted audience and budget and response of each tool. The trial can be made on one or two
Promotional
Tools and
channels
Direct
Marketing
Public
Relation
Sales
Promotion
Advertising

methods and on the basis of the response of target audience; a final method which is to be
continued can be decided (Georgiev, 2014).
Public Relation: The prime objective of the airline is to gather as many customers as
possible. It is imperative to generate a trust factor which will be able to keep them attached to
the roots of Easy Jet. Therefore, the airline must apply public relations as a promotional tool
towards gaining customers. It should be able to give the connection to hearts of Italy. As per
the analysis of Hoskins (2017), the public relation can be developed through conducting
seminars or shows in which the company gets to knows about the choice and preference of
customers. Rather they get a chance to prove themselves that they do care about the choice of
the customer (Johnson, 2016).
Direct Marketing: Direct Marketing is believed as the best method for promotion of any
service or product. Kalafatis, (2016) assessed that the reason behind same is no mediators are
available which provide a cost benefit to customers as well as companies. In order to apply
same company can promote through its website and provide services at the same time. The
growth attained by them can be communicated to the customers, and they can be assured that
the company is the best available option for them.
Target audience
Since, Ancona, Italy will be a new destination city for EasyJet, the target audience will be the
population of the city. Post the successful run of the route; the people will be able to
commute from Ancona to other destinations in a more convenient manner. The promotional
strategies will be able to focus on the lifestyle of the people of Ancona. Well, not only
Ancona, the focus of the airline must be the neighbouring states that contribute in an itinerary
for the city. Therefore, the airline must be able to connect with the people. Being a new
experiment, it could be a win or lose situation. Hence, it is important for the airline to create a
buzz or scarcity in the city of Ancona. The people must know about the airline way before its
advent in the city. It is mandatory for Easy Jet to be able to relate to the culture of the city.
They should be targeted in a way that they will be able to identify with the airline. This
would help in allowing more people to choose Easy Jet in Ancona.

Social and ethical issues in advertising
Maintaining all the social and ethical norms in the aviation industry is not a cake walk
(Cavusgil and et al. 2014). Post the event of 9/11 in the US; many people are afraid of
preferring airlines as no one wants to see the repetition of the dreadful events. For Easy Jet, it
is important to overcome these barriers. Therefore, the airline must first understand these
social and ethical issues and consider the same while implementing the promotional plan
(Malighetti, Paleari and Redondi, 2015).
Legal and regulatory issues
The laws and regulations imposed by the government pose a lot of difficulties in the
functioning of the airlines. They create obstructions in obtaining a license, maintaining cargo
and carrier. These regulations are dependent upon the size, and type of aircraft.
Aviation Law 2018 is said to be one major law passed by the UK government which is both
against and in favour of airlines. Further, the company has to comply with the CAA
regulations. Many bodies will be functioning as the jurisdiction authorities of the law. As per
the assessment of Mills (2016), there is an economic authorization limit which is set in order
to allow the airlines to avail their license; this seems another treat. As any insufficient limit
will be considered inadequate to give license. Various certificates have been announced in the
law that must be with the airline in order to define the level of security it provides. The
absence of the certificate might lead to a declaration of the airline as unsafe.
Pricing techniques
The complexities of prices of airlines often act as one major factor that contributes well to
frustrate a customer. The revenue management often aims at maximizing the revenue which
further increases the rates (Morlotti and et al. 2017). Therefore, it creates a fuss for the
passengers.
1. No last minute deals
It is a custom of all the airlines do not offer any last minute deals. Since the passengers tend
to take expensive flight mostly in case of emergency. This allows the airlines to gain revenue.
2. Pricing to control demand

The airline aims to divide the seats as per the class divisions. These classes vary as per their
prices. Therefore, the extra cut of the revenue is covered as per the pricing techniques
allocated.
3. Time Division
Easy Jet, similar to most airlines, prefers to put the prices on a lower side when most people
do not book tickets. Moreover, the airline aims to place prices it higher in the closing work
hours. Taneja, (2017), assessed that this is usually the time when people book the flights, and
this helps in generating more revenue.
Furthermore, Easy Jet must also study closely, the constant and variable costs. These two
costs help in identifying the areas where the cost fluctuates. Any arrival of revenue accounts
for the airline to sort with last minute offers. However, being one of the low-cost airlines,
Easy Jet has flexible pricing techniques.
Cost Volume profit analysis
Calculation of contribution margin
Particular Amount of £ Per unit
Sales 1012000 23
Variable Cost 450000 10.23
Contribution margin 562000 12.77
Contribution Margin Ratio
Contribution Margin / Sales 56% 56%
Break Even Point
Particular Amount
Revenue (44000*23) 1012000
Variable Cost (44000* 10.23) 450000
Contribution Margin 562000
Fixed Cost 150000
Net Income 412000
Break-Even Analysis
Particular Amount

Break Even Sales 150000/.56%
(Total Fixed Cost /Contribution Margin Ratio) 26785714.29
Break Even Unit 150000/12.77
(Total Fixed Cost /Contribution per margin) 11746.28034
0 40,000 80,000 120,000 160,000
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
C-V-P GRAPH
A
B
C
Sales Volume (units)
A- Fixed Cost
B- Total Cost
C- Variable Cost
Amount in £
Chart
Data Table
Units Sales V. Costs F. Costs T. Costs
0 0 0 500000 500000
40,000 800000 560000 500000 1060000
80,000 1600000 1120000 500000 1620000
1,20,000 2400000 1680000 500000 2180000
1,60,000 3200000 2240000 500000 2740000
Cash Flow Statement

uk(Amount in £)
Jan-00
Feb-
00
Mar-
00
Apr-
00
May-
00
Jun-
00 Jul-00 Aug-00 Sep-00 Oct-00
Nov-
00 Dec-00
Cash
on
hand
(begi
nnin
g of
mont
h) 2,00,000
73,0
00 31,500 92,500
1,67,0
00
2,69,0
00
3,67,5
00 4,29,000
4,66,5
00
4,73,5
00
4,96,5
00 5,12,500
CAS
H
REC
EIP
TS
Cash
sales 46,000
57,5
00
1,15,0
00
1,26,5
00
1,61,0
00
1,49,5
00
1,15,0
00 92,000 23,000 46,000 34,500 46,000
TOT
AL
CAS
H
REC
EIP
TS 46,000
57,5
00
1,15,0
00
1,26,5
00
1,61,0
00
1,49,5
00
1,15,0
00 92,000 23,000 46,000 34,500 46,000
Tota
l
cash
avail
able 2,46,000
57,5
00
1,46,5
00
2,19,0
00
3,28,0
00
4,18,5
00
4,82,5
00 5,21,000
4,89,5
00
5,19,5
00
5,31,0
00 5,58,500
CAS
H
PAI
D
OUT
Adve
rtisin
g
(Fixe
d
Expe
nse) 1,50,000
Fuel
Expe
nses 10,000
15,0
00 40,000 41,000 45,000 40,000 40,000 35,000 5,000 12,000 5,500 12,000
Man
agem
ent
Expe
nses 5,000
5,00
0 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Othe
r
Expe
nses 2,500
2,50
0 5,500 2,500 2,500 2,500 5,000 7,000 2,500 2,500 2,500 2,500
Offic
e
expe
nse 5,500
3,50
0 3,500 3,500 6,500 3,500 3,500 7,500 3,500 3,500 5,500 3,500
TOT
AL
CAS
H
PAI
D
1,73,000 26,0
00
54,000 52,000 59,000 51,000 53,500 54,500 16,000 23,000 18,500 23,000

OUT
Cash
on
hand
(end
of
mont
h) 73,000
31,5
00 92,500
1,67,0
00
2,69,0
00
3,67,5
00
4,29,0
00 4,66,500
4,73,5
00
4,96,5
00
5,12,5
00 5,35,500
Cost Volume Profit Analysis can be referred as a technique which assists the executives to
comprehend the relation among price, volume and income in the company through aiming at
some factors such as the cost of products, level of action, per unit changeable cost and blend
of products sell (Kotabe and Helsen, 2014). Through the application of CVP analysis, the
executives are capable of appraising between precedent and present performance and make
the suitable assessment related to price setting , route psychiatry, demand forecasting and
preservation and dealer sequence analysis. With the help of CVP company can decide which
cost is unchanging and which is changeable. In the present case of Easy Jet Ltd., same is
being applied in order to expand through providing direct routes to Ancona, Geona, Nea
Anchialos and Reus. From the assessment of CVP analysis, it can be assessed that at least
11750 tickets will be required to be sold to each of the newly expanded areas in order to
attain the breakeven point. If the company is able to attain such position, then it will be able
to achieve no profit any loss position.
Conclusion and Recommendation
The above study depicts that Easy Jet Airlines require focusing on retaining its traditional
market leadership. It must seem to shift into newer means for publicity mainly using
television propagation. Moreover, it ought to deem expanding the levels of effectiveness and
enthusiasm within their staff base which other competitors unsuccessful in identifying.
Therefore, Easy Jet Airlines be supposed to open their actual bureau so that passengers can
book tickets directly from them. The company would be able to communicate directly with
customers as well as will be able to reduce the cost to be charged from customers.

References
Antonov, A., 2015. Promotional plan for the small business company in conditions of
current crisis. Case company: RENE.
Ashraff, N.A.M., Salleh, A.S.S. and Latif, A., 2017. THE USE OF FACEBOOK BY
AIRASIA AND EASYJET TO MANAGE CORPORATE BRANDING. Journal of Global
Business and Social Entrepreneurship (GBSE), 3(8).
Beria, P., Redondi, R. and Malighetti, P., 2016. The effect of open access competition on
average rail prices. The case of Milan–Ancona. Journal of Rail Transport Planning &
Management, 6(3), pp.271-283.
Cattaneo, M., Malighetti, P., Morlotti, C. and Redondi, R., 2016. Quantity price
discrimination in the air transport industry: The easyJet case. Journal of Air Transport
Management, 54, pp.1-8.
Cavusgil, S.T. and et.al. 2014. International business. Pearson Australia.
Czinkota, M.R. and Ronkainen, I.A. 2013. International marketing. Cengage Learning.
Georgiev, D., 2014. Application of ‘Cost-Volume-Profit’Analysis in the Hotel Industry
Based on Survey Data of High-Ranking Hotels in the North-East Region of Bulgaria.
Hoskins, K., 2017. Post-18 Educational Choices:‘Our Students Need to Avoid the easyJet
Version of Universities’. In Youth Identities, Education and Employment (pp. 79-107).
Palgrave Macmillan, London.
Johnson, G., 2016. Exploring strategy: text and cases. Pearson Education.
Kalafatis, S.P., 2016. Strategic brand alliances. The Routledge Companion to Contemporary
Brand Management, p.120.
Kotabe, M. and Helsen, K., 2014. Global marketing management.
Malighetti, P., Paleari, S. and Redondi, R., 2015. EasyJet pricing strategy: determinants and
developments. Transportmetrica A: Transport Science, 11(8), pp.686-701.
Mills, G., 2016. The Airline Revolution: Economic Analysis of Airline Performance and
Public Policy. Routledge.
Morlotti, C., Cattaneo, M., Malighetti, P. and Redondi, R., 2017. Multi-dimensional price
elasticity for leisure and business destinations in the low-cost air transport market: Evidence
from easyJet. Tourism Management, 61, pp.23-34.
Taneja, N.K., 2017. Simpli-Flying: optimizing the airline business model. Routledge.