Promotional Plan and Financial Data and Analysis

This report discusses the promotional plan and financial data and analysis for EasyJet's new route for summer 2018. It covers promotional tools, target audience, media objectives, channels, timing, regulatory influences, pricing techniques, cost concept and behavior, campaign planning and costing, cost volume analysis, and forecasted cash flows.

PROMOTIONAL PLAN
AND FINANCIAL DATA
AND ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Promotional tools....................................................................................................................1
Target audience......................................................................................................................2
Media Objectives....................................................................................................................2
Channels.................................................................................................................................3
Timing....................................................................................................................................3
Regulatory influences with legal consideration.....................................................................3
Pricing techniques..................................................................................................................4
Understanding cost concept and cost behaviour....................................................................4
Campaign planning and costing.............................................................................................5
Cost volume analysis..............................................................................................................5
Forecasted cash flows.............................................................................................................5
Break- even analysis...............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Promotional aspects of an organisational unit is for communicating expansion plans as
well as various new services and products introduced by them. In the present report, there has
been discussion based on various tools and techniques which will be used on promoting business
operations. EasyJet is planning to include new routes for summer 2018 on which they have
proposed to start with expanding business in Italy. Managerial professionals and other board
members have decided to initiate business with launching the new route for Ancona. Report will
highlight all areas such as demonstration of target audience, media objectives, schedule of
flights, cash flow forecast as well as break even analysis
Promotional tools
Existing activities and operations which are being performed by EasyJet have appropriate
rise in income and revenue of firm. Therefore, launching a new business idea such as operating
flights for summer 2018 which operates in a new destination as Ancona. It can be said that there
will be need to generalise this new plan and project among stakeholders and consumers of firm
(McGrath and et.al., 2017, pp.6(2) Aviation biofuel from integrated woody biomass in southern
Australia). Marketing objective of entity is promoting this route and flight schedules among
Passengers. Measuring business objectives with reliable techniques such as SMART tools be
like:
Specific: Decision made by board members in relation with improving business
operational criteria. It comprises with the use of various techniques and promotional tools and
technique which in turn will be appropriate and helpful to meet marketing needs of firm. Specific
business plan of EasyJet is that they are planning to operate flights in between Ancona and UK
with the motive to have effective sales during summers of 2018.
Measurable: Targets are needed to be set in a measurable manner. Prices of flights
which are being operated on deck will have cost efficiency as well as it has been assumed here
that business will retain higher revenue gains from operations (Henriksen and Ponte 2018 12(1).
pp.23-45. Public orchestration, social networks, and transnational environmental governance:
Lessons from the aviation industry). It approaches towards maximising revenue generation of
firm as well as attracting Passengers for experiencing cost efficient travel from one place to
another.
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Attainable: A Proposed plan has been developed in relation with improving business
efficiency, financial stability as well as improving brand image in market. Targets and plans for
introducing new route will bring satisfactory gains as well as a large number of passengers. Rise
in revenue as well as increase in performance of this aviation industry (Jiang, and et.al., 2018
144(1). p.04018001.).
Reliable: Proposed targets of EasyJet in relation with operating flight in between UK and
Italy as per promoting effective travelling packages to consumers (Rahman and et.al., 2017 2(5).
pp.44-53. Locational Characteristics of Firms in the Business Service Industry in Airport
Economic Zones). Plan is reliable and appropriate as it considers profitable gains in the coming
time as well as in peak season.
Time-bound: Analysing printability of this proposed plan with consideration of 12
months of forecast. Prices of tickets in each category have been ascertained as per average
selling prices and it will be analysed for respective period as shown in the following cash flow
statement.
Target audience
Specific decision of managers and boards members in relation with setting the routes and
timing for the operations. Therefore, there is no such targeted audiences which will be indicated
by the business. Influences of various derivatives such as demographic, gender, age, sex and
religion etc. here all group of passengers are invited to enjoy the travelling experience with
EasyJet. On other side, there are two categories of consumers which usually travelled an aircraft
such as Business class as well as economy class passengers (Mousavi and Bossink, 2017 167.
pp.1263-1275. Firms’ capabilities for sustainable innovation).
Media Objectives
Ascertaining the objectives of firm in relation with promoting this proposed plan in
market. There can be various objectives of firm in relation with developing the strategic targets
in order to meet several needs such as meeting budgets, improving sales as well as attracting
consumers (Friend, Stolzer and O'Toole, 2017. 62(2). p.28. Air Transportation: Actions to
Improve Employee Safety). Similarly, main objective of EasyJet is for improving revenue
generation as well as having good market image so, the financial health of firm will meet its
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break even point. The ticket prices are comparative set by professionals as per considering cost
efficiency to passengers.
Channels
There are various medium through which EasyJet can have effective promotional
activities which will be assistive as per making effective communication among consumers.
There are various medium through with they can be advertise this new flying route and prices of
tickets, timings of trips as well as seasonal packages which are had to be communicated among
general audiences (McGrath and et.al., 2017. 6(2). Aviation biofuel from integrated woody
biomass in southern Australia. Wiley Interdisciplinary Reviews). Therefore, there are various
operations which will be helpful and beneficial in relation with meeting the qualitative goals of
business, thus, EasyJet will make promotion through Facebook, twitter, you tube such as social
media. On the other side, they can bus magazines, journals articles as well as deliver leaflets
which will be a favourable approachable in developing the most appropriate promotional
techniques in market.
Timing
It has been aimed at operating the flights on the daily basis during summer season as that
time there will be rise in the number of travellers (Henriksen and Ponte 2018. 12(1). pp.23-45.
Public orchestration, social networks, and transnational environmental governance). Thus, it will
be beneficial to entity in terms of retaining the appropriately amount of revenue for business
operations. There will be changes in the flight schedule as per the seasonal demands and the
numbers of travellers in a particular route.
Regulatory influences with legal consideration
Operational activities of an aviation industry is needed to be planned and discussed
among the legal authorities in country (Jiang, and et.al., 2018. 144(1). p.04018001. Locational
Characteristics of Firms in the Business Service Industry in Airport Economic Zones). Therefore,
there are various international standards and authorities which are needed to have proper
information regarding flying schedule as well as timing. On the other side, it can be said that
there sin need to have proper registration of all information which are relevant with the flying
schedule as well as operational practices of EasyJet.
3

Pricing techniques
To improve sale growth as well as revenue generation of the firm there are need of
having effective business plan as well as prices over the tickets therefore, travellers in aircraft
has been charged on the basis of their preferences of selecting the categories of tickets such as
business and economy class (Rahman and et.al., 2017. 2(5). pp.44-53. HIGHER TVET
EDUCATIONIN AVIATION). EasyJet can employ various pricing strategies which will be
profitable to the company. Moreover, it can be said that the prices are needed to be set by
professionals as per consumer demands in market. The prices are set be appropriate as per it
must meet consumers satisfaction level and must cover the costs incurred in business activities.
Illustration 1: pricing techniques
(Source: Price Strategy, 2018)
Understanding cost concept and cost behaviour
Consumers are very price sensitive as per analysing product and revives which are being
doffed by various businesses. They select the cheapest and best quality services that will fit in
their budgets as well as brings them utmost satisfaction over utilised funds for operations.
EasyJet will have suitable prices over services which has been offered by them in consideration
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with meeting the financing goals of the business (Friend, Stolzer and O'Toole, 2017. 62(2). p.28.
Air Transportation: Actions to Improve Employee Safety). Therefore, in order to have
appropriate determination of consumer cost behaviour there will be demonstration of break even
point which will be helpful in terms of brining the accurate analysis among business personnel.
Campaign planning and costing
Initiation of the business plan there is need to have appropriate increment in the revenue
and sales of the business. EasyJet has approached towards facilitating the most cost efficiency
flights to passengers with a motive of retaining the satisfactory amount of gains in the business
activities.
Cost volume analysis
To analyse the cost efficiency of the business there is need to have appropriate control
over the working capital such as operating profit of EasyJet. Thus, the managerial professionals
are said to have appropriate plans and operations which in turn helpful for managing the business
activities in the most prominent way (Mousavi and Bossink, 2017. 167. pp.1263-1275. Firms’
capabilities for sustainable innovation). Moreover, there has been various areas of operations
which are needed to be considered by professionals such as sales prices, variable costs, fixed cost
etc. thus, the business as set to implicate the capital of 200000 pounds for this new route
operations. It has been aimed at that they will retain the satisfactory growth in revenue
generation as well as profit gathering.
Forecasted cash flows
FORECASTED CASH FLOW FOR EasyJet
Revenue
assumptions
OPE
RAT
ING
YEA
R
Janu
ary
Febr
uary
Mar
ch April May June July
Aug
ust
Sept
embe
r
Octo
ber
Nove
mber
Dece
mber
% of total sale
per month
0.23
%
0.18
%
0.16
%
0.13
%
0.12
%
0.11
%
0.10
%
0.09
%
0.09
%
0.08
%
0.08
%
0.07
%
Total
passengers/
2000
0
2500
0
2750
0
3550
0
3750
0
4250
0
4550
0
5000
0
5230
0
5500
0
6000
0
6250
0
5

months
Business class
tickets
Average
selling price 45.11
45.1
1 45.11 45.11 45.11 45.11 45.11 45.11 45.11 45.11 45.11 45.11
Revenue form
business class
9022
00
1127
750
1240
525
1601
405
1691
625
1917
175
2052
505
2255
500
2359
253
2481
050
2706
600
2819
375
Revenue
assumptions
% of total sale
per month
0.11
%
0.10
%
0.08
%
0.07
%
0.06
%
0.06
%
0.05
%
0.05
%
0.04
%
0.04
%
0.04
%
0.04
%
Total
passengers/
months
2500
0
3000
0
3560
0
4020
0
4560
0
4865
0
5347
0
5864
0
6450
0
6850
0
7250
0
7760
0
Economy class
tickets
Average
selling price 28.72
28.7
2 28.72 28.72 28.72 28.72 28.72 28.72 28.72 28.72 28.72 28.72
Revenue form
Economic
class
7180
00
8616
00
1022
432
1154
544
1309
632
1397
228
1535
658.4
1684
140.8
1852
440
1967
320
2082
200
2228
672
CASH
INFLOWS
1620
200
1989
350
2262
957
2755
949
3001
257
3314
403
3588
163.4
3939
640.8
4211
693
4448
370
4788
800
5048
047
CASH
OUTFLOWS
Variable cost
Advertising 42 42 50 20 0 15 0 0 25 30 0 40
Fuel charges 250 100 150 180 162 123 220 230 245 224 196 164 153
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Oil 300 350 380 250 280 265 325 332 368 418 408 450
Maintenance 150 0 0 130 0 0 250 120 0 0 140 145
Landing Fees 150 265 280 320 350 389 410 520 590 480 350 260
Catering 180 220 250 300 315 365 420 459 520 580 602 606
Total variable
costs 922 1027 1140 1182 1068 1254 1635 1676 1727 1704 1664 1654
Fixed costs
Insurance 1550 1550 1550 1550 1550 1550 1550 1550 1550 1550 1550 1550
Aircraft
accessories 320 1260 1260 1260 1260 1260 1260 1260 1260 1260 1260 1260 1260
Taxes and
registration
fees 1180 1180 1180 1180 1180 1180 1180 1180 1180 1180 1180 1180
wages 1750 1750 1750 1750 1750 1750 1750 1750 1750 1750 1750 1750
Total fixed
costs 5740 5740 5740 5740 5740 5740 5740 5740 5740 5740 5740 5740
Total cash
outflows 6662 6767 6880 6922 6808 6994 7375 7416 7467 7444 7404 7394
Net cash flow 570
1613
538
1982
583
2256
077
2749
027
2994
449
3307
409
3580
788.4
3932
224.8
4204
226
4440
926
4781
396
5040
653
Capital
invested
2000
00
Beginning
cash balance
2000
00
1994
30
1812
968
3795
551
6051
628
8800
655
1179
5104
1510
2513
1868
3301.
4
2261
5526.
2
2681
9752.
2
3126
0678.
2
3604
2074.
2
ENDING
CASH
BALANCE
1994
30
1812
968
3795
551
6051
628
8800
655
1179
5104
1510
2513
1868
3301.
4
2261
5526.
2
2681
9752.
2
3126
0678.
2
3604
2074.
2
4108
2727.
2
7

Break- even analysis
Break even analysis
Jan
uary
Febr
uary
Mar
ch April May June July
Aug
ust
Sept
embe
r
Octo
ber
Nove
mber
Dece
mber
Fixed costs 5740 5740 5740 5740 5740 5740 5740 5740 5740 5740 5740 5740
Business class tickets
Average selling price
2000
0
2500
0
2750
0
3550
0
3750
0
4250
0
4550
0
5000
0
5230
0
5500
0
6000
0
6250
0
Economy class
tickets Average
selling price
2500
0
3000
0
3560
0
4020
0
4560
0
4865
0
5347
0
5864
0
6450
0
6850
0
7250
0
7760
0
Variable cost 922 1027 1140 1182 1068 1254 1635 1676 1727 1704 1664 1654
BEP
13.0
2%
10.6
3%
9.26
%
7.70
%
7.00
%
6.39
%
5.90
%
5.37
%
4.99
%
4.71
%
4.39
%
4.15
%
January
February
March
April
May
June
July
August
September
October
November
December
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%13.02%
10.63%
9.26%
7.70% 7.00% 6.39% 5.90% 5.37% 4.99% 4.71% 4.39% 4.15%
B E P
CONCLUSION
On the basis of above report it can be concluded here that EasyJet has planned to
operated flying schedule from UK to Italy as per making it the safe and secure travelling
experiences to the consumer. It has been assumed that the rise in travelling sector will eventually
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raise revenue generation of this aviation industry. In respect with the same there has been
analysis over the 12 months of cash flow forecasts that brings the accurate analysis over the
prices of tickets as well as estimated passengers in each moth. Further,
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REFERENCES
Books and Journals
Friend, M. A., Stolzer, A. J. and O'Toole, M., (2017). Air Transportation: Actions to Improve
Employee Safety. Professional Safety. 62(2). p.28.
<https://search.proquest.com/openview/2564eb91a50704ac4900ed6a22657f03/1?pq-
origsite=gscholar&cbl=47267>.
Henriksen, L. F. and Ponte, S., (2018). Public orchestration, social networks, and transnational
environmental governance: Lessons from the aviation industry. Regulation &
Governance. 12(1). pp.23-45.
<https://onlinelibrary.wiley.com/doi/abs/10.1111/rego.12151>.
Jiang, Y. and et. al., (2018). Locational Characteristics of Firms in the Business Service Industry
in Airport Economic Zones: Case of Shanghai Hongqiao International Airport. Journal of
Urban Planning and Development. 144(1). p.04018001.
<https://trid.trb.org/view/1497623>.
McGrath, J. F. and et. al., (2017). Aviation biofuel from integrated woody biomass in southern
Australia. Wiley Interdisciplinary Reviews: Energy and Environment, 6(2).
<https://onlinelibrary.wiley.com/doi/full/10.1002/wene.221>.
Mousavi, S. and Bossink, B. A., (2017). Firms’ capabilities for sustainable innovation: The case
of biofuel for aviation. Journal of Cleaner Production. 167. pp.1263-1275.
<https://www.sciencedirect.com/science/article/pii/S0959652617315901>.
Rahman, N. A. A., and et. al., (2017). HIGHER TVET EDUCATIONIN AVIATION:
TEACHING QUALITY AND A MASTER KEY TO INDUSTRY 4.0. International
Journal. 2(5). pp.44-53. <http://www.ijepc.com/PDF/IJEPC-2017-05-09-04.pdf>.
Online
Price Strategy. 2018. [Online]. Available through :<http://oyle.kalakaari.co/price-strategy/>.
[Accessed on 7th June. 2018].
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