Marketing Strategies of EasyJet: A Case Study

This case study analyzes the marketing strategies of EasyJet, a low-cost airline company, and its target market segments. It also examines the external environmental factors affecting the airline industry.

Running head: CASE STUDY 1
Case Study
Student’s Name
Institution Affiliation
Date

CASE STUDY 2
EasyJet targets customers that are considered to exhibit substantial potential such as
private and state corporate business travelers who wish to save their time while enjoying high-
quality services and pay for the premium services offered by EasyJet airline services. This is the
sole reason that has made the company command a small market share in the UK market
compared to other airline companies. Ensuring that the customers get satisfied goes a long way
in making sure that they remain loyal in the long-run.
EasyJet is said to serve leisure travelers who happen to spend their holidays and
vacations with their beloved families in countries such as India. EasyJet is also a provider of
other services and facilities such as hotel bookings, prepping for transportation services and
offering insurance services (Beynon-Davies, 2013). With consumer having full knowledge of the
products and services provided by the aircraft industries, they now demand services that are of
high quality at prices termed as cheap and reasonable.
Target, positioning, and segmentation
Though launched in 2016, EasyJet’s generation adverts target strictly an age group that is
more probable to spend their disposable income while taking advantage of the fact that there will
always be ever-cheaper air travel for this specific age group. The actual campaign trail represents
an airline that positions and views itself as being at the center of youthful and easy city breaks.
One of its recent slogans that target the demographic is “why not?”
The international markets exhibit markets that are highly competitive where customers
continuously place increasing importance on the brands, and it is for this reason that EasyJet
strives to establish its image and brand in the airline industry. EasyJet can be said to achieve
milestone successes with regards to branding the quality of its airline services. Based on the past
reports, it has been archived that EasyJet has the most contented and loyal clients in the world.

CASE STUDY 3
EasyJet is a brand name that precedes its reputation. EasyJet has focused its attention on
providing the best quality with regards to airline services to its customers across the globe at low
yet reasonable rates to gain the market share in the global airline industry. Brand positioning is a
very critical concept for the success of any business enterprise including an airline player such as
EasyJet.
As of today, brand positioning can be termed as the most significant and crucial aspect in
people’s lives. When individuals purchase a product or service, they always strive to have an
understanding of the characteristics and any features associated with the product that they will
use. It is a fact that people will use a product or a service that they were once satisfied or
products that they have utmost trust when it comes to using such products.
Currently, the concept of branding has evolved, and this is exhibited by the different
understanding about brands, and the intent is different from the people who came with the idea in
the 19th century. All the brands and ideas have adapted through learning to match the prevailing
circumstances of different times and situations. The significance of brand position cannot be
ignored in any industry with the inclusion of the airline industry. For instance, when it comes to
comparing airline brands, there are huge disparities just like other differences in products such as
computers and clothes.
The people from India are conscious of the image and the social responsibilities of
business ventures (Thompson & Zacher, 2012). It is reported that the Indian market has a wide
array of market players particularly the airline industry who take advantage of the fact that they
not only know the market and the culture of the Indian people but also that they have been able
to create robust brands due to them being in the market for a long time (Thompson & Zacher,
2012). On the other hand, the low-cost airlines in the Indian market have mimicked the business

CASE STUDY 4
model used for low-cost airlines in Europe. For instance, Air Deccan has modeled itself entirely
on the European no-frills carriers such as Ryanair and EasyJet (Morris, 2016). Also, the high
bargaining power of buyers is due to the existence of a variety of low-cost airlines that are fully
serviced. This translates to having Indian customers comparing prices of the various products
making them access product information easily due to the increasing popularity and ability to
access the internet.
The use of language as an integral component of the cultural framework is another crucial
element that requires consideration (Thompson & Zacher, 2012). The use of English as a
language that enjoys significant status for national, political and business communication though
Hindi is a mother tongue of approximately 30 percent of the people in India (Thompson &
Zacher, 2012). India is still grappling with challenges of low literacy levels which translates to
the fact that more than 39 percent of people in India are illiterate (Thompson & Zacher, 2012).
India’s shifting to a consumer society is due to the increasing connectivity that has been widely
attributed to the presence of mobile phones, internet, and the televisions. Also, advertising has
(Thompson & Zacher, 2012) been a significant player on the shift as it has become a critical part
of people’s lives specifically those living in major cities and among those considered as the
growing middle class.
Since the establishment of EasyJet in 1995, the company has witnessed rapid growth with
a profitability index of more than 10 percent annually (Thompson & Zacher, 2012). The concept
of low-cost airlines that are widely regarded as the saver of the one-time ailing of the European
airlines, EasyJet set up a vital enterprise concept to overcome any costs that may be unnecessary.
The operational and marketing traits based on this concept such as the one kind airplane, short-

CASE STUDY 5
haul travel and no in-flight meals led to EasyJet realizing profits amounting to more than 450
million pounds in 2013 despite the low-ticket prices (Thompson & Zacher, 2012).
Compared to other low-cost airlines, EasyJet and Ryanair, one of its strongest competitors in the
market are still dominating the market with regards to the low-cost airlines. It is estimated that in
2005, both the EasyJet and Ryanair carried approximately 70% of the total passengers carried by
the low-cost airlines (Thompson & Zacher, 2012). However, due to the increased liberalization
of the airline industry, multiple new companies are now venturing the market, and this has
significantly increased the competitiveness of both the market and the industry (Thompson &
Zacher, 2012). Substantial evidence of the stiff competition is the constant decrease of the
average price of price tickets of both leisure and business traveling that has simultaneously
triggered attraction of passengers of both segments to fly using the low-cost airlines.
Leisure traveling
Ideally, leisure travelers can be categorized into two segments, the business class, and
economic class leisure travelers. Unlike the business class passengers that are considered
affluent, the economic class is concerned about the high prices of the flight due to the limited
disposable income (Beynon-Davies, 2013). The travelers that are expense conscious and
sensitive to price changes are the target for EasyJet. Based on research conducted, it is true that
price elasticity with regards to airline tickets for the economic class has led to the increasing
demand for low-cost airlines (Beynon-Davies, 2013). Moreover, a good number of the Indian
people in this segment are either short or middle-haul passengers. In this case, EasyJet in the
context of price-sensitive short or middle-haul passenger group becomes EasyJet’s primary
target segment.
Price sensitive travelers that are short-haul

CASE STUDY 6
Demographic traits
A good number of low-cost airlines place much emphasis on the age factor more than the
gender issue since the number of passengers with regards to both genders remains relatively
constant. The low-cost airlines encompass a wide range of age groups spanning from 19 to 54
while older people above the age of 55 prefer full-service airlines. EasyJet’s consumers are
approximated to average between 41.5, and this age has increased by one year since 2009.
Travel preference
Travel in groups
Compared to business class travelers, leisure travelers’ journey in small groups and low-
cost airlines such as EasyJet carry more passengers compared to full-service airlines.
Limited disposable income
In the past years, EasyJet defined its target consumers as individuals who finance for their travel
from their own pockets. From such a definition, it is a fact that the targeted market segments
with regards to EasyJet are primarily focused on individuals that cover their travel expenses. For
such travelers, one of the primary factors that they give consideration is the limited disposable
income. Choosing airlines that are cheap and offer relatively superior services is primarily
becoming their best shot.
Prefer regular and shorter trips
The entry of airlines such as EasyJet and Ryanair considered low-cost airlines not only
has revolutionized the structure of the airline market but has also changed the traveling behavior
of people across Europe. The presence of cheap tickets allows people to make frequent travels
though they have limited disposable income making many trips and short breaks are becoming a
custom. With India experiencing economic growth that has seen the country’s level of poverty

CASE STUDY 7
decline and since 1985 India has succeeded in helping more than 100 million people from the
grinding poverty particularly those living in urban centers. The large and well-educated
population of India with the current population being estimated to be more than 1.2 billion
people, such a population can be considered an asset as it represents a limitless labor supply and
consumer demand. Having this in mind translates to an increasing demand for services and
consumer goods particularly among the middle class who account for more than 40 percent of
the entire population based on projections of 2035. Thus, services such as those offered by the air
travel have increased by more than 8 percent as a result of price reductions and increased levels
of disposable income. India is still grappling with developmental challenges due to its
geographic size and the fact most people are still living in abject poverty.
Based on the above analysis, the variables used in segmentation by the company entail
the usage of the product, service perception and demographic elements. It is through utilization
that the market can be segmented into various segments such as short-haul leisure passengers and
short-haul business travelers. As such it is evident that EasyJet aims at targeting both the short-
haul travelers that are either leisure or business travelers.
When segmenting EasyJet’s markets with regards to its consumers, the concept of
studying the perception and values can have a significant impact when establishing travel
preferences. For instance, for individuals who use the low-cost airlines such as EasyJet may view
such an airline as an instrument that delivers point to point transportation as opposed to an
enjoyable journey that goes with great comfort as they prioritize the price they are charged than
any other factors.
External environmental analysis

CASE STUDY 8
The research seeks to identify some of the marketing strategies that are implemented by
an airline such as EasyJet in gaining the competitive edge over its rivals in the segment of low-
cost airlines. The report has gone further in looking at the European budget with regards to the
airline industry and has identified many strategies employed by EasyJet along other players in
the market. The findings from the report give strong indications of how EasyJet has been
successful in addressing its marketing campaigns due to the strong image that it built and
sustained for many years in the airline industry. EasyJet however, has to seek new ways and
strategies to cope up with new challenges as the market is highly competitive.
EasyJet is a company that was established by Stelios-Haji-Ioannou in 1995 and runs the
no ‘frills’ low-cost airline that aims to outcompete its rivals such as Ryanair and BMI among
others. Such airlines operate on the identical business model to that of prominent USA southwest
airlines (Beynon-Davies, 2013). The competitive advantage associated with budget airlines is
sustained through the achievement of low operating costs, charging higher revenues and using
the emerging technologies such as the use of the internet to sell their products such as airline
tickets (Topham, 2017).The low-cost airline sector is estimated to command approximately 8.6%
of the gross airline market with EasyJet commanding a 3.8%. As of 2004, EasyJet realized
profits estimated at 62 million pounds and led to EasyJet announcing expansions into East and
central parts of Europe (Tran, 2004). This was part of their strategy of establishing their winning
formula of commanding a wider proportion of the airline industry.
EasyJet’s external environment entails a PEST analysis that highlights main influences
upon the LCCs airline industry. The competitive environment analysis, on the other hand,
outlines the current strategies employed by competitors, the potential of new entrants penetrating

CASE STUDY 9
the market and the behavior of suppliers and buyers and the availability of complementary and
supplementary goods.
Marketing environment
Political
The European deregulation of commercial airlines was essential to the development and
growth of the aviation industry. This was coincidental with the expansion of the airlines that are
low-cost carriers in 1990. It is through such moves that the low-cost carriers in the industry were
in a position to reap from the benefits of relaxed laws enabling them to expand their operations.
Economic
In one of the reports that were compiled in 2002, it was reported that the low-cost carrier
airline market conforms to some set of criteria. The first one is that it provides a product that
entails no seat reservation, free seating, and ample flight services. They are true no-frills airlines
with products and services that are simple in the market. EasyJet has been identified as one of the
airlines that have succeeded in maintaining a high degree of customer emphasis through their
new, user-friendly website that has an improved booking process.
It is also apparent the low-cost carriers’ market is characterized by mergers and
acquisitions leading to the expansion of low-cost airlines and market exits due to bankruptcy
such as Debonair. Also, the low-cost airlines operate on short haul, point to point traffic with
numerous traffic, aggressive marketing campaigns and operate from secondary airports.
Conversely, EasyJet has maneuvered its differentiation strategies through dealing with primary
hub airports such as Gatwick. Lastly, the industry runs on a low-cost ethos that is maintained by
the lean sales made, high resource productivity, low maintenance costs, and the low wages.

CASE STUDY 10
The oil prices which tend to be 50% more expensive as compared to the previous years is
something worth worrying for the low-cost airline industry. Following one of the interviews that
was conducted with the chief operating officer of EasyJet, he said how fuel prices continue being
volatile and high a significant concern for small carriers since they are not in the position to
sustain the low-cost bases.
Social
It has been the norm of low-cost carriers to position their products to travelers who are
either on leisure or for business purposes. However, EasyJet has learned to differentiate its
services and products to target both the business and leisure segments. Such a behavioral
segmentation establishes an active edge compared to what the competitors are doing who
primarily focus on leisure travel. Thus, it is imperative for EasyJet to ensure that its formula
works and aims at attracting a vast market. EasyJet has been confirmed as a low-cost airline that
has close to 26 million passengers in 14 different countries. The airline has more than 190 routes
with 58 airports, and it is estimated that 160 million people leave in EasyJet’s airports at
approximately one hour.
Technological
The low-cost carriers can maintain a high degree of client focus through the
establishment of user-friendly websites that have improved booking procedures. Such websites
can charge bookings with a lot of easiness and employ and simplified finder to obtain the
cheapest fares. It is through the sale of tickets through the internet- based websites that enable
EasyJet to eliminate the presence of travel agents thus reducing costs associated with agency
commissions.
Competitive environment

CASE STUDY 11
Strengths
One of the main strengths associated with EasyJet is their ability to yield a simplified fare
structure that has good value for money thus ensuring that unit costs continue being relatively
low (Malihetti, Paleari, & Renato, 2015). Also, EasyJet has already established a strong brand as
a consequence of serving markets such as the Swiss and the UK. Such a brand also comes as a
result of the strong corporate culture effective through the development of an extensive multi-
base network.
Weaknesses
As witnessed in the 2003 fiscal year, EasyJet’s flaws became apparent where it was
estimated that costs associated with the crew grew by 68% to approximately 97 million pounds
and accounted for more than 13% of the operational costs (Clark, 2003). Also, costs associated
with advertising increased by more than 40% to 28 million pounds and this translated to more
than 3.7% of the gross costs with the EasyJet’s airport costs surging to 103 % which was
approximately 149 million pounds (CNN, 2003).
Opportunities
Some of the opportunities that are presented to EasyJet come by as a result of the stiff
competition from another airline such as Ryanair. The increasing demand from business
customers has led to the need for the provision of particular facilities such as airport lounges for
frequent fliers; this is one way of handling some of the practicalities associated with providing
better and quality services (Cattaneo, Malighetti, Morlotti, & Redondi, 2016). In meeting the
demands of changing lifestyles, it is essential to look at such changes with a lot of seriousness as
there is an ever-growing demand for new routes such as the Rome and Berlin and this will help
to gain a competitive edge.

CASE STUDY 12
Threats
Some of the primary competitors such as Ryanair and FlyBe continue posing more
challenges to EasyJet. Ryanair was initially founded in 1985 and later re-launched in 1991.
Ryanair aimed at offering fares 50% off or slightly lower than those provided by other airlines
mainly known as no-frills operation. Ryanair according to one of the reports stated that it
accumulated 190 million pounds in profits following taxes. Other players such as KLM and Buzz
and in 2004 they led with regards to passenger growth having the lowest fares and costs across
Europe. It was evident that they continued to maintain their rank at the top of the industry.
Ryanair has been at the forefront in responding to aggressions existing in markets that are
deemed home market for EasyJet (Powley, 2016). Both Ryanair and EasyJet have aggressively
been engaged in lowering their fares in markets such as Knock and Shannon among others (Gill,
2015). They are building up the pressure in cities such as Liverpool and Luton leading to
increases in operating flights and with the rise of new airlines such as Jet2 and Monarch, EasyJet
is sailing in turbulent waters.
Strategies used by EasyJet to gain competitive advantage
Location
EasyJet has been successful in implementing its marketing strategies through the location
components of the destinations where it operates its flights. In achieving a competitive advantage
over its competitors, EasyJet flies in all primary and leisure airports across Europe to ensure that
customers do not have to transfer to another airline in connecting to their final destination.
Other airlines such as Ryanair for instance, though they strive to compete at fair prices with
EasyJet, they do not operate efficiently in particular route maps. (Englund, 2016) Thus, such
rivals can only provide the low-cost advantage by flying in more remote regions. On the other

CASE STUDY 13
hand, EasyJet run on an almost maximum level of efficiency at airports with high turnaround
times making it possible for Ryanair to utilize its fleet system maintaining its extra flights for its
passengers. EasyJet has played a critical role in expanding its hub airports to having bases in
almost all regions in the UK and recently has been integrated into airports across Europe.
Advertising and marketing campaigns
It is after a thorough utilization of the marketing channels at disposal that has made it
possible for EasyJet to establish and maintain a preceding corporate image following the
establishment of the company for more than one decade. The advertisements by EasyJet can be
seen posted everywhere and in cities across Europe starting from the billboards to public
transport buses. The company has made tremendous efforts of ensuring that wherever they spot
potential customers for EasyJet, their presence gets recognized through the offers made through
advertising with regards to flight costs, the launch of new routes and to reveal why customers
should fly with such an airline (Elderman, 2014). In such a highly contested market, the
marketing team of EasyJet develops a robust advertising strategy and always seek marketing
ideas to ensure that they are not losing their clients to other rival airlines.
Currently, EasyJet has taken advantage of online platforms such as the online advertising
and with increased use of the internet by the consumers ensuring that EasyJet’s consumer base is
reached (Andrade, 2016). Though there is a national media as a marketing option, EasyJet has
gone a step further in adopting a regionalized approach to advertising that is European oriented.
Most of the campaigns by EasyJet place a lot of focus on making an impact at the regional level,
and this has proven the point that they are a personalized strategy that has enabled EasyJet to
adapt their marketing methods to address the needs of local customers.
Airline documentary series

CASE STUDY 14
In one of the documented series of EasyJet ‘fly, the wall’ is a marketing strategy that was
adopted that led to the success of the airline. The series was broadcasted across the nation on
major channels and was at one time slated for nomination as the programme of the year. Though
the programme displayed some lousy image to the public when in some parts passengers were
not allowed to board the plane, it was positive publicity for the airline.
Conclusion
EasyJet has progressively continued to identify itself among the vast pool of consumers
as the best channel of traveling budget across Europe. The company recognized the growing
demand for this kind of travel and its marketing techniques had been geared to provide efficient,
low-cost flights while at the same time maintaining high-quality services. It is through their
websites that they have managed to make it simple for customers to interact with the company
while at the same time positioning their advertisements that are to be focused on the market
served. Policies aimed at expanding the company have been the driving motive behind the
success and growth of EasyJet making it possible for the company to eliminate key rivals from
the market.

CASE STUDY 15
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comparison/

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