Factors Influencing Purchase Decision in Low-Cost Airline Industry
Added on 2019-12-17
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Running Head: RYNAIR AIRLINE SERVICES1Ryanair Airline ServicesName of studentInstitution affiliationDate of submission
RYANAIR AIRLINE SERVICES2Table of ContentsIntroduction......................................................................................................................................3Marketing Mix Framework..............................................................................................................4Consumer Definition + Ryan air’s consumer..................................................................................6Decision Making Process................................................................................................................7Conclusion.....................................................................................................................................10References......................................................................................................................................12
RYANAIR AIRLINE SERVICES3INTRODUCTIONThe “Ryanair” is one of the leading Irish airlines that emphasizes on offering low costservices to its clients. The company was established in 1985 with combined efforts of Tony andChristy Ryan. The organization was named by considering surname of both the partners. Withinone year of operations, the company applied for a license to fly to London. It has been noticed bythe Ryanair in 1985 that 800, 000 passengers were travelling to London through Aer Lingus. Thesurvey helped the organization to start a flight for London Luton Airport. The move had resultedin offering the tough competition for Aer Lingus. In response to this challenge Aer Lingus hasbeen forced to reduce their high fare prices and therefore this force/push become the first pricefare war in Europe and responsible for that was Ryanair company and its central focus on costreduction. Since the 1990s Ryanair applies southwest low-cost business model and has becomeEuropean’s first and main developer of low-cost fare Airline Company. The appearance of alow-cost business model was first introduced in the beginning of 1970’s by Southwest in theUnited States. In addition to it by applying the low-cost business model Ryanair gives itscustomers opportunity to regularly visit their friends and families (Mason, 2001).Nowadays the appearance of low-cost carriers has totally changed the air passengertransport industry. In order to understand Ryanair’s services, price, distribution channels andpromotional strategies there is need to appreciate the way in which the company has usedmarketing stimuli in a way that has robustly supported the consumers’ decision making process.Ryanair mainly focuses on offering services at low prices. Henceforth, the low operations areconsidered to provide the organization an edge over its competitors. The report proposedherewith emphasizes on analyzing the case for Ryanair on grounds of Marketing Mix strategies,Consumers’ perceptions and decision making process.In the above case study, we will firstdiscuss the literature on marketing stimuli and consumers’ decision making and introduceMaslow’s Hierarchy of Needs. These models will work as a framework for present analysis(Mason, 2001). Then we will present Ryanair’s sells services, price, distribution channels andpromotional strategies, focusing in particular on the company’s consumers’ characteristics andbehavior. Through the propose framework, we will then analyze the range of influences thatmake the Ryanair strategy successful in drawing consumers to the final purchase (Creaton,2014). We will show that Ryanair manages to target a wide range of customers’ needs(according to the Maslow’s model) and is, for example, coherent with strong value safety needs
RYANAIR AIRLINE SERVICES4and self-actualization. The case analysis helps in identifying ways through which Ryanair hasbeen able to occupy the prominent position in consumers’ mind. MARKETING MIX FRAMEWORKNowadays a lot more companies tend to used Marketing Mix in order to outspread theirmarketing strategy in most efficient way (Mason, 2001). The framework about Marketing Mixand Four Ps (product, price, promotion and place) was first anticipated by Jerome McCarthy in1960s. According to McCarthy, marketers can set up a comprehensive marketing plan andtherefore to improve overall companies’ performance in more simple and visible way by usingthe right combination of variables. There exists a set of controllable variables can be very usefulfor the company to affect the buyer’s response because these variables help a company toestablished a unique selling point as well as brand image thus Ryanair’s company do.Ryanair company unique selling point and brand image is definitely “Cheap andCheerful”. Companies applying very successful Marketing Mix framework in more provocativeway by providing product and services on almost unbeatable low prices as well as make certaindestinations available, work in cooperation with different rental and business hotels (Buhalis,2004). By doing this Ryanair keeps the costs lower which highlight them as a company fromother rivals and therefore make their products and services more affordable for the customer aswell as helped company gain better profit.The price is one of the most important and sensual marketing instrument in bothdirections provider and customer and therefore Ryanair use this instrument very successful byproviding to the customers’ lowest fare cost in the industry and confirm the company name ascost leadership (Buhalis, 2004). Evidence of this can be found on companies’ web site wherethere is a motto stating that “Ryanair lowest fare guarantee or we pay you double the difference”.This motto confirms once again the cost leadership reputation of the company and at the sametime send message to the customer that there is nothing cheaper than us on the industry on aqualifying route with another airline. Or in other words we can take you where you want for lessthan you think. The Ryanair’s strategy to offer airline services at low price helps the organizationin capturing large number of customers. It is seen that few years back, consumers’ tends toconsider that airline services as luxurious offering. Henceforth, the organization were unable tocapture demand of customers falling into middle-class category. It is with low-price offering that
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