Marketing and Communication: Ryanair's Orientations, Strategies, and Competitors

This document discusses the marketing and communication strategies of Ryanair, including its orientations, analysis of macro environment, potential threats from competitors, and strengths of its business operations. It explores the different variables used in segmenting consumer markets and provides an overview of Ryanair's marketing mix. The document is relevant for marketing and communication courses in colleges and universities.

MARKETING
AND
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(a) Definitions of production, marketing and societal orientations.............................................1
(b) Different orientations which adopted by Ryanair.................................................................2
TASK 2............................................................................................................................................3
(a) Purpose of situation analysis for market strategies................................................................3
(b) Analysis of Macro environment of Ryanair..........................................................................3
(c) Potential threats of key competitors of Ryanair on its business............................................4
(d) Strengths of Ryanair's business operations............................................................................4
TASK 3............................................................................................................................................5
(a) Four variables used in segmenting consumer markets..........................................................5
(b) Segmenting variables used by Ryanair..................................................................................5
TASK 4............................................................................................................................................6
(a) Marketing mix of Ryanair.....................................................................................................6
Part 2................................................................................................................................................8
Explanation of promotional mix theory helps in selecting the communication channel............8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Marketing communication is a business plan for product informations and brand
awareness. It helps to provide informations regarding particular products to the customers. It is
the process through which informations passes to the audience and create awareness among
them. It helps to promote the brand as well as create good image of company in consumer's mind
and consumers translate information into their perceptions about its products and services.
Company can create good position in the market through proper communications and build good
relationship with suppliers and customers.
Ryanair is one of Europe's low fares airline service provider which operate over 2000
flights per day (Smith and Zook, 2011). It was world's favourite airline for passengers but due to
poor customer services it was branded the worst brand in the world. So in this report, it will
explain marketing and societal orientations as well as identifications of those orientation adopted
by Ryanair. It describe the situations of marketing for best strategies and environmental factors
that can affect to the business or identifications of strengths, weaknesses, opportunities and
threats. And it defines poster for better understanding.
TASK 1
(a) Definitions of production, marketing and societal orientations.
Productions: This concept defined the internal capabilities of the firm as like
manufacturing process through which company produce its products or goods. In this
organisation's people manufacture products according to their philosophy as by undertaking that
consumer will like it so it focuses on their internal capabilities that how they can utilise their
resources to produce maximum outputs (Kitchen and Burgmann, 2010). Ryanair airlines
undertakes its available resources for best allocations that depends on their own capabilities.
Marketing: It is an activity in which includes the process from manufacturing to market
place as well as these activities involved in this to satisfy consumer's needs and wants. Market is
the place where goods and services buys and sales. It provide benefits or profits to the company.
Ryanair should undertakes effective marketing orientations to fulfil customers demand and
desires.
Societal orientations: This concept defined company plans for marketing to fulfil
customers needs and wants. As it can be said that it is social consciousness part in which
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company consider consumer behaviours as what they want and how can be satisfy their needs to
meet their expectations while considering the long term benefits and good for society. Ryanair
airlines should care about its passengers as well as their healthcare and safety.
(b) Different orientations which adopted by Ryanair
Production orientation: It is the process of producing goods and services for the selling
purpose. Its main aim is to produce maximum outputs from minimum inputs. So they focus on
only productions process rather customer's needs and wants. But now a days it has been
evaluated that philosophy has changed regarding the productions because long term growth is
more important than short term benefits as they manufacture good quality of products and
services.
Product orientations: Same as production orientation, in this industry focus on high
quality of goods and services rather than bulk productions as well as they invest lots of funds for
better featured products for consumer welfare or fulfil their demand and it can be sold in
favourable prices that consumers afford.
Selling orientation: Before evaluations, industries were focusing on sale of products as
just increasing sales as much as possible and get more profits by selling its products (Rice and
Atkin, 2012). But it has evaluated as industries focus on building good relations with people by
selling them effective products and services at reasonable price that create value for customers.
Here are some approaches for the Ryanair airlines that will help to increase demand among
customers such as:
Marketing orientated: In this defined proper communications or informations regarding
new products and services to the targeted audience for creating awareness helps to develop the
business. Ryanair should focus and analysis customers wants and expectations rather than
companies profits.
Product orientated: From this approach business develop their brand and goodwill by
providing best products to the people. As Ryanair can use this approach for developing best
holiday packages in effective.
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TASK 2
(a) Purpose of situation analysis for market strategies
For conducting the different marketing strategies it is must to analysis various situations
of the firm. Situations can be defined as the factors like internal and external that can affect to an
organisation so through the analysis, it can help to identify capabilities, resources, customers,
strengths and weaknesses of the business.
It is important for Ryanair to set marketing strategy because it could help him following
ways discussed below:
 It will help Ryanair in identifying all future issues which could be faced by his flight
business.
 It will support him to determine risks to his business.
 Situational analysis will prepared him for any unexpected events.
 Through situation analysis he might know the factors which could affect his flight
business.
 These analysis will help Ryanair in setting market strategy to grab future opportunities.
 Assessing different situations like optimistic, pessimistic and most likely events to find
critical path for a company.
(b) Analysis of Macro environment of Ryanair
Macro environment are the external environment of a business which impacts its
operations. Ryanair don't have any control over this factors (Albarracin, Johnson and Zanna,
2014). Some of the factors of Macro environment of Ryanair is discussed below:
 Political factor: These factors can impact business due to change in government or
change in government policies and regulations. But European Union's regulations and
restrictions on welfare of staff might affects Ryanair's strategy. Company has future
opportunities to make this factor positive through reviewing regulations of EU to avoid
negative effects on its airline.
 Sociocultural factors: These types of factors are customs, lifestyles, preferences and
values that give clear picture about society. Usually culture of societies includes
aesthetics, education, language, law and politics, religion, social organisations,
technology and material culture. This factors creates threats for Ryanair as its owner
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doesn't care about what society thinks about it. That's why it become worst brand in the
world due to bad customer services.
(c) Potential threats of key competitors of Ryanair on its business
Ryanair is already make a place in low fares industry as it is a strong cost leader in a
market. Hence, two main competitors of Ryanair are Easyjet and British Airways. Both these
competitors have low threats to business because of Ryanair is in low fares industry.
These industries requires capital, price and distribution channels to beat Ryanair. But
Easyjet and British Airways has an opportunities to lead Ryanair by providing better customer
services to its passengers.
These two competitors i.e. Easyjet and British Airways in future has high potential
threats to Ryanair due to entering in price leadership and customer satisfaction. Ryanair requires
to convince customers through avail better services to maintain airlines current status in the
market.
Easyjet is also operating under low-cost carrier model which is future threats for Ryanair.
It is also providing online booking facilities to its customers. On the other hand, British airways
is the largest airline in UK as it carries huge passengers at a time (Hollensen, 2015). It offers free
hand baggage allowances up-to 23kgs which can give competition to holiday packages of
Ryanair.
(d) Strengths of Ryanair's business operations
Ryanair is world famous for its low fares flight but besides this there's other factors also
which gives company internal strength to compete with its competitors like Easyjet and British
Airways. These internal environments are discussed below:
 Low cost strategy: This is the basic strength of Ryanair because this strategy helps
company in providing bigger profit. This strategy makes companies fares low and
convenient for a customer. Through this strategy, Ryanair gets competitive strength in
capturing huge market share in UK.
 New Aircraft Model: This is the basic strength of Ryanair, because it allows company to
save costs on fuel and maintenance. It's single type fleet supports company in
maintaining lower maintenance and training costs. This internal factor gives strength to
this company as through this model it has created first budget airline in Europe.
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Apart form this Ryanair's brand name of low-fare airline also gives strength to
this company.
TASK 3
(a) Four variables used in segmenting consumer markets
Market segmentation is necessary for every company to make product strategies
accordingly. It is not a good practise to target whole market segments because opinion or taste of
one age group might be different from others (Khang, Ki and Ye, 2012). Hence, consumer
markets are basically segmented by using these four variables given below:
 Geographic variables: These type of segmentation divides market into different
geographical units like nations, regions, states, countries, cities and neighbourhoods.
 Demographic segmentation: This variables divides markets into groups which is based
on age, gender, family size, income, family life cycle, occupation, religion, education,
nationality and generations.
 Psychographic segmentation: It divides buyers into different groups on the basis of
social class, lifestyle and various characteristics of personality. Persons who belongs to
same demographic group has different psychographic attitudes.
 Behavioural segmentation: It divides buyers of products into different groups like
attitude, informations available, uses and responses of persons.
(b) Segmenting variables used by Ryanair
Ryanair is using different segmenting variables for sorting its potential customers. This
variables are discussed below:
 Demographic Segmentation: Ryanair targets middle class people by providing best low
airfares to them. They also provide attractive packages to these customers. In this
variables, it has made its marketing strategies which revolves around middle class
persons (Khan and Khan, 2012). It has also focused on family life cycle like for example
Ryanair has launched holiday packages for family who likes to spent their holidays in UK
or other countries.
 Psychographic segmentation: In this segmentation, company focuses on lifestyles
variables of persons. Like for example, only Ryanair offered free carriage for skis and
snowboards to its travellers who prefers to fly to Alps in winter seasons usually in
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September. This shows that Ryanair is targetting customers on the basis of their
lifestyles.
TASK 4
(a) Marketing mix of Ryanair
Ryanair has its central focus on cost reduction strategies to make more profits from its
business. It's effective marketing mix helps company to expand from single plane company to
largest airline in Europe. It has focused on narrow cost for making niche strategy to face
competition in the market.
Below are the marketing mix of Ryanair:
 Products or Services: The current product strategy of Ryanair's contains following
things:
◦ Low fares airlines for travelling to European destinations.
◦ Ryanair's don't provide free food and drink to its customers. As these are income for a
company.
Company sells cheapest tickets which middle class person could easily manage to buy.
 Price: This mix contains pricing strategies of a company. It usually adopt cost plus
margin to decide particular price for a product. The current situation of Ryanair's pricing
strategy is discussed below:
◦ It has low fares.
◦ 70% of its seats covers by lowest fares and 30% seats are covered by people who
ready to pay higher fares. Remaining 6% seats have highest fare.
◦ It has faced the issue of difference in its actual price comparing to its advertised price.
 Place: These factors are targetted locations for which company makes strategies to attract
more customers. Current place strategies of Ryanair's are explained below:
◦ It doesn't use travel agents to avoid commissions to them. It normally uses direct
marketing strategies to directly meet with customers.
◦ Online booking through internet is provided by Ryanair's. This helps company in
saving over 15% agency fees.
◦ They are located at Stansted which is also known as secondary airport of the
company. Because fly from here is cheaper than Heathrow and Gatwick.
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 Promotion: This factors consists of all advertising strategies to promote companies
product in the market. Some of the current promotion strategies of Ryanair is mentioned
below:
◦ They believe not to increase costs on advertising.
◦ They also don't prefer advertising agency for promotion of their product.
◦ Their less fare strategies helps them to avoid promotional strategies and company
only simply tells passengers about cheap tickets to its passengers.
◦ But still company has tie ups with few advertisers like News of the World, Jaguar and
Kilkenny(beer company).
 People: This factors are staff, employees and labours of the company. Below is the
explanation of Ryanair's people strategies:
◦ Young pilot cadets are recruited by company because they are hard working and get
early promotions.
◦ Cabin crews are charged by Ryanair for cleaning their uniforms. Company charges
for training provided to cabin crews.
 Physical Evidence: This is the product of a company which is used by customers as a
service provided by company. Plane is the physical evidence for Ryanair. Below is the
physical evidence strategy of Ryanair:
◦ Company tries to pay less for maintenance of aircraft's. As planes are most expensive
investment by a company. Ryanair has adopted effective strategies of buying those
planes which are not required by other aircraft company's. This helps Ryanair's in
buying other airlines at big discounts.
 Process: These are related to operational activities of a company. Ryanair's process
strategies are described below:
◦ Company doesn't have check in posts, which saves lots of times for customers. But at
the same time increases security issues.
◦ It adopts the strategy of first come, first served for allotment of seats to its customers.
◦ Company has quick strategy of depositing baggage directly at terminal.
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Part 2
Explanation of promotional mix theory helps in selecting the communication channel.
The promotional mix helps the company to promote themselves in the large market.
Promotional mix is very effective in nature if used in creative manner. Marketing can be done
through advertising, personal selling, sales promotion and public relation. Thus the promotional
mix do helps the company to choose communication channel which helps in getting effective
working by the entity. Communication channel include formal, informal and unofficial way of
communicating. Thus it depends on the type of product produced by organisation. Generally
promotion mix is used to attract the large population towards firm and the product. The formal
communication is used by promotional mix when the information is provided by firm to address
that with million of people. Informal communication is used when a company is producing its
new product in the market and they introduce in such a way that attract the large market towards
goods and services.
Thus communication channel do helps the firm according to product introduced in
market. The context used by entity should be perfect which can attract million of people to listen
the advertisement. The marketing department chooses the communication channel according to
requirement of product and service. The Ryanair mostly chooses the formal channel in
promotion mix because the firm who is in service industry goes with formal communication
that's why Ryanair chose to be a formal communication. Entity should choose the summarize
form of content which can influence in the minds of million people in proper manner.
CONCLUSION
The Ryanair is a airline company who is providing the best services in UK. The report
has discussed about marketing mix used by firm in proper manner. The entity satisfy customers
through making segmentation of market and this helps firm in a great manner. Marketing
channel and promotion mix attracts large amount of people towards industry.
REFERENCES
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Online
Marketing and communication. 2017. [Online]. Available through
:<http://www.marketingteacher.com/introduction-to-marketing-communications/>.
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