Marketing Planning for Easy Jet: Analysis and Proposed Strategy

This report discusses the marketing planning for Easy Jet, a British low-cost airline. It includes an analysis of the macro and micro environment, internal capabilities, and proposes a strategy based on SWOT analysis.

Marketing Planning

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Environment Analysis.....................................................................................................................4
Macro Trend Environment Analysis...........................................................................................4
Micro Trend Environment Analysis............................................................................................5
Internal Environment Capability Analysis..................................................................................7
Proposed Strategy..........................................................................................................................10
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing planning refers to plans which are developed by the company to promote its
products in market in such a way that it can attract most of the customers from its target market.
This requires considering all the factors and environment affecting the operations of the
company. This report will discuss about Easy Jet, British low cost airline group founded in 1995
and headquartered at London, Luton Airport, Luton, UK. Easy Jet operates at domestic and
international schedules on over 979 routes in 33 countries. Easy Jet employs 15000 employees
and these are employed throughout Europe though mainly they are based at UK (Cattaneo and
et.al., 2016). From its foundation Easy Jet has expanded and its expansion happened through
combination of acquisition and base openings. Vision of Easy Jet is that they want to develop
leading value brand of Europe’s into global force. Mission of Easy Jet is that by managing and
expanding Europe’s leading value brand to more products and services and at the same time
creating wealth for stakeholders. Values of Easy Jet are based on safety, Simplicity, one team,
integrity, passion and pioneering. Strategies of Easy Jet are that its structural cost advantage
allows it to provide more affordable travel services. Strategic priorities of Easy Jet are number
one or two in primary airports, wining loyalty of customers, value by efficiency, the right people
and innovating with data.
Easy Jet is working for giving best value to its customer but the company faces several
challenges among them one is increasing price of oil (Gilligan, 2017). This is really a challenge
for Easy Jet because it is a low cost airline and it is important for it that related costs are low.
Environmental concern is another challenge for the company because carbon emission and
increasing concern for environmental sustainability and safety of nature might require that Easy
Jet might have to adapt unexpected challenges.

MAIN BODY
Environment Analysis
Macro Trend Environment Analysis
Micro environment of Easy Jet can be analysed through PESTLE analysis. The analysis
is as follows-
Political
This is an important factor affecting business operations and their success. Easy Jet is
operating in travel industry and because it is an international airline this exposes itself from
various political environments (Achinas and et.al., 2019). There are several political factors such
as travel policies of countries, decision regarding taxation and level of interference of political
factor in business and industry. Easy Jet operates in Europe and based in UK and this is why
Brexit is also an important factor affecting Easy Jet. Brexit can negatively affect operations of
Easy Jet in EU countries.
Economical
This is concerned with factors such as economic condition of a country, inflation rate,
rate of saving and disposable income of people in a country all this affect business and its
operations. In this factors affecting Easy Jet are stability of economic system, market economy
and intervention of government affecting prices of the airline, quality of infrastructure, inflation
rate etc.
Social
This is concerned with those who are customers and potential customers of Easy Jet.
Easy Jet is a low cost airline and this why it has strong factor to attract people towards it. Social
factor involves taste and preferences of people and their tendencies too travel (Gheibi and et.al.,
2018). People at some of the countries have higher tendencies to travel on regular bases whereas
people of some of the countries do not travel that much. These are some of the factors affecting
external environment of Easy Jet.

Technological
This is a strong basis for competition as well as standard of excellence of the business
and its operations. Easy Jet has to consider latest technological development of its competitors
and also engage in research and development to provide enhanced services at low cost.
Regarding airline operations carbon emission is one of the important point to consider Easy Jet
requires technology through which it can reduce carbon emission.
Legal
This environment consists of rules and regulations which govern and control operations
of a business. These are legal framework of countries and are mandatory to be followed by the
businesses in order to avoid any legal issues. Some of the factors affecting Easy Jet are consumer
protection, employment, health and safety, data protection etc.
Environmental
This has become important concern for the businesses they do not affect the environment
in any negative manner (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes, 2016). Easy Jet
has to ensure its carbon emission and impact on its activities on environment. Other than this
climate, weather change and laws governing pollution are also important to be considered by
Easy Jet.
Micro Trend Environment Analysis
Porter’s Five Forces Analysis
These forces analyse and evaluate attractiveness of an industry on the basis of five forces
which exist in industry and impact Easy Jet and its competitive strength. These forces of
competitiveness are;
Threats of new Entry
This is concerned with entry barriers of an industry. These barriers exist in form of
resources and capital which is required for entering into an industry. Easy Jet operates in air
travel industry and in this industry resources and capital requirement both are high. This is why
position of Easy Jet in this competitive force in high and threat from new entrants is less.

Threat of Substitute product
This threat is concerned with threat from the products which customers can use to fulfil
their needs and desire instead of buying product of the Easy Jet (Lewis, 2017). Easy Jet
significantly operates in domestic market and in domestic market travel by road in substitute of
travel by air. This is why these means are substitute for Easy Jet and its services. In this
competitive force position of Easy Jet is moderate because its low cost strategy is also an
attractive substitute for road travel.
Bargaining power of suppliers
This is concerned with power that suppliers has this is affected from number of suppliers,
resources being supplied. This competitive force become favourable when there are adequate
number of suppliers and cost of switching is low. Position of Easy Jet is strong because there are
adequate number of suppliers who can supply resources which are required to Easy Jet.
Bargaining power of buyers
This is the power which is concerned with buyer of the products company is selling. This
is based on factors which are number of buyer, number of sellers, cost of switching etc. This
power and force of competition is favourable if there are more buyers and sellers are limited.
Airline industry is getting more and more customer oriented and customers in such case possess
more power and this weakens power of Easy Jet. But as Easy Jet has factor which attract
customers and cost of switching for customers is also high position of Easy Jet is moderate in
this force.
Industry Competitiveness
This is mainly based on number of firms operating under an industry. Easy Jet operates in
airline industry and this industry houses many firms. This is the reason that attractiveness of the
industry is considerably low (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes, 2016).
This has one more reason that Easy Jet is low cost airline and there are other firms which are
offering better quality service and value provided by them is also high. This is why Easy Jet is
weak in this force of competition.

Customer Segmentation Analysis
Customer segmentation refers to segmentation of people in various customers group.
Segmentation is done on the basis of psychographic, demographic, geographic and behavioural
factors. On the basis of these varied characteristics customer groups are targeted by the company
this is done to specify customers whose needs company can and want to fulfil. Later marketing
of the company is done focusing on these customers groups which company is targeting. This is
known as positioning which means company targets and position it in customers in the way
company wants to position on the basis of its values.
Easy Jet has adopted customer segmentation and targeting which is considered as
differentiated targeting. In this Easy Jet targets more than one customer group. Customers
segmentation which are being targeted by Easy Jet are long-haul leisure travellers, long-haul
business travellers, short-haul leisure travellers and short-haul business travellers. This means
that company adopts a targeting strategy in which it targets both short and long haul business and
leisure travellers (Dietrich, Rundle-Thiele and Kubacki, 2017). This positioning and targeting
strategy of Easy Jet is very effective because business travellers are frequent travellers and this is
possibilities for such travellers seeking a low and budgeted travel are high. Easy Jet also provides
services for long and short haul leisure travellers because its services are in divided in different
categories.
This analysis of micro and macro suggests that Easy Jet has some of opportunities in its
competitive forces as it can take advantage of strong position in suppliers’ power and its position
is also safe from threat of new entrants. Micro environment also possess several opportunities
which are laid in social environment, technological environment etc.
Internal Environment Capability Analysis
McKinsey’s 7S Framework
It is a model which analyse internal environment of the organisation and its capabilities.
This model analyse 7S of the Easy Jet which are;

Figure 1Mckinsey's 7S Framework
Hard values in this refer to those values which are difficult to change and remain constant for
Easy Jet. Soft Values on the other hand are those values which can easily modified and keep
changing as per the situation and requirements of the Easy Jet (Szeto, 2017). Analysis of these is
as follows-
Strategy
Strategy of Easy Jet is to provide competitive fares by maintaining its capacity and low cost
structure. Low cost structure of Easy Jet enables it to charge fares which are affordable for the
passengers. Along with this customers targeted by Easy Jet are also business travellers those who
travel frequently and requires affordable travel.
Structure
Structure refers to structure of the organisation in which roles and responsibilities are divided
and this structure of Easy Jet is complicated and is in traditional form. Structure of Easy Jet
consists of CEO and departmental manager. CEO of the company manage and control all the
departmental managers and outside vendors and contractors are also managed by CEO.
System
This refers to management and organisation system in which all the activities are carried out in
the Easy Jet. Management system at Easy Jet considers both manual and technological factors.
Easy Jet also focuses on IT facilities in the organisation.
Shared Values

Easy Jet’s values are based on safety, its values involve not compromising on safety, simplicity
in which elements not required are cut out, integrity which means that Easy Jet does what it says,
passion in its means passion of Easy Jet for its customers, work and our people.
Skills
Training is provided to employees in order to improve their skills and before that Easy Jet
employs best talent available to be hired (Shaqrah, 2018). But many young and inexperienced
employees has also been hired by Easy Jet.
Style
Style followed in Easy Jet is autocratic leadership though the leader is considered to be
charismatic leader and all the major decision are taken by the leader. This states that leadership is
centralised.
Staff
Retention of staff is a challenge for Easy Jet because its competitors higher employees of Easy
Jet providing them higher salaries. This is a difficulty and increase cost of Easy Jet in terms of
staff and people of the Easy Jet.
VRIN Framework
Internal capacities of Easy Jet can also be analysed through VRIN model of Barney. This model
involves capacities which are strength of organisation;
VRIN refers to Valuable, Rare, Inimitable and Non-substitutable. Such resources and assets of an
organisation make is strong to stand in competition (Tamzini, Ayed and Boulanouar, 2016).
Financial resources of Easy Jet are its valuable resources because capital base of the company is
really good and make it valuable for the Easy Jet.
Human resources are other important resources which are valuable for Easy Jet because Easy Jet
employs and have best employees for customer relationship management and IT skills of Easy
Jet are also very efficient.

Strong brand name which is capable of attracting customers towards itself is another resources
and capability of the Easy Jet.
Relationship with stakeholder is another capability of Easy Jet because it has managed to
maintain effective relations with its stakeholders (Diharto and Budiyanto, 2017).
Some other resources and capabilities involve, its low cost strategy, technology, customer focus.
VRIN Analysis of above resources and capabilities of Easy Jet
Resources/
Competencies
Valuable Rare Inimitable Non-substitutable
Financial
capabilities
Yes
Human Resource Yes
Digital Platform Yes Yes
Location strategy Yes Yes
Relationship with
Stakeholders
Yes Yes Yes
Low costs strategy Yes Yes Yes
Brand name Yes Yes Yes
Proposed Strategy
SWOT Analysis
This involves identification and analysis of strength and weaknesses of organisation and
also what are the opportunities and threats available for it (Phadermrod, Crowder and Wills,
2019). This can be identified from the above analysis of environment of Easy Jet. This is as
follows-
Strength
 Pricing strategy
 Low cost structure

 Market share and location of the airports
 Effective leadership
Weaknesses
 Traditional leadership style which is not suitable for present business environment
 Seasonality of Earnings
 High employee turnover
Opportunities
 Technology for sustainable environment
 Growth of international market outside Europe
 Business Passengers
Threats
 Increasing business environment complexity because of political unrest, changing
regulations and economic fluctuations
 Competitors providing better value in terms of service and luxury
 Price of fuel which affect its cost and result in increased prices
In this marketing plan one of the most suitable strategies that Easy Jet can adopt is technology
development for sustainable environment (Bull and et.al., 2016).
This opportunity is based on the product development strategy of Ansoff Matrix. In this
strategy Easy Jet needs to develop a new product for its existing customers. Development of
technology which is an opportunity available to Easy Jet cannot be considered as development of
product because through this company will be able to give its services which are for
environmental good. Increasing concern of people and various local and global organisation
regarding safety and sustainability of environment Easy Jet will be able to attract more
customers.
To utilize this opportunity Easy Jet will have to research on and develop technology
though which its aircrafts can become environment friendly which means that they are able to
reduce carbon emission (Schöggl, Baumgartner and Hofer, 2017). Most important element in

doing so is that the technology should be such which is cost effective because of main strategy of
the Easy Jet which is low cost structure. New technology application if costs more in such case
this will affect cost of the Easy Jet and this will increase fares and it can make negative impact
on its business.
Objectives
 To increasing customer base from existing target market to 10% before completion of
current financial year
 To reduce carbon emission through operations of Easy Jet
 Maintaining Cost at its present level to combat with increasing cost in research and
development
Marketing Mix
Product
The product will remain same as it is in form of air travel to the passengers the change through
this planning is that air travel will be environment friendly (Wu and Li, 2018).
Price
Price Strategy in this is low cost price strategy and competitive fares to retain existing customers
of Easy Jet.
Promotion
Promotion in this marketing planning will include promotion through customer loyalty and sales
promotion in form of discounts. In order to promote some holiday package will also be offered
by the company at comparatively less price in which it will give advantage of early bookings.
Place
The place in this is existing digital place and sales and along with this third party through which
customers can buy product of Easy Jet.

This opportunity and its utility can also help Easy Jet in dealing with one of the
challenge of Easy Jet which is increasing environmental concern. This way this opportunity and
its application can work in double way this will also present new products in front of customers
in order to attract customers and this will also contribute Easy Jet in combating its challenge
regarding environmental concern (Massingham and Pomering, 2017). To exploit this opportunity
company can utilize its existing resources which are its financial resources and human resources
and IT and technical capabilities of Easy Jet can also be used for this development.
Implementation Plan
The proposed plan is based on development of new technology which requires research
and development. This means that actual plan and implementation of the product development
strategy will start once product gets developed.
This plan can be implemented through device of plan and strategy for research and development
and this will involve determination of vision and objective of research and development.
Determination and organisation of the resources required for carrying out research and
development (Gonzaga, 2019). The resources required are financial resources (this involves
determination and budgeting of financial resources), human resources (ensure availability of
adequate and efficient manpower) and organising material resources.
Risk involved in this is very high and may result in financial loss and loss of efforts if
company fails in its research purpose and developing new technology.
The risk involved is high and this is why it requires timely and proper monitoring and evaluation
to ensure that efforts are going on the right direction. This requires that before starting research
Easy Jet develops small attainable goals regarding its research and development. During its
efforts it will able to measure its results from the goals which have been designed and developed
before starting the research (Yulianto and Kasahara, 2018). Achievement of goals will ensure
that research is going in the right direction and not achieving this will lead to take immediate
action to improve which will save time and efforts of the company.
The objectives will also work as key performance indicator and sales projection will be followed
once company develops the product.

CONCLUSION
On the basis of above discussion it can be concluded there are various threats and
opportunities in the environment of business. These threats can be avoided if company employs
rights strategy and opportunities can also be utilized by adoption right kind of strategy. This
report involved and discussion was carried out that company can adopt new product
development strategy.

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