Ryanair: How a small Irish airline conquered Europe
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This essay explores how Ryanair, a small Irish airline, became successful and conquered Europe using marketing concepts. It discusses the effectiveness of marketing orientation and societal marketing orientation in Ryanair's context.
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Ryanair how small Irish airline conquered Europe
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Table of Contents INTRODUCTION..........................................................................................................................1 MAIN BODY...................................................................................................................................1 Significant marketing concepts and its effectiveness in Ryanair context..................................1 Marketing Orientation and societal marketing orientation.........................................................2 CONCLUSION AND RECOMMENDATIONS...........................................................................3 Conclusion...................................................................................................................................3 Recommendations.......................................................................................................................3 REFERENCES................................................................................................................................3
INTRODUCTION This essay is based upon an Ireland based budget airline named, Ryanair, which is the largest airline and it carries large number of international passengers than any other airline (RYANAIR,2019). It deals with wide range of products and services such as airlines, hotels, bus tickets, car rentals,and so on. In this essay, the examination of airlines of Ryanair is done. It also includes how it has become successful by using appropriate concepts of marketing and in this regard, it is using production concept. It alsocovers orientation of marketing management and societal marketing orientation and its effectiveness in this company. MAIN BODY Significant marketing concepts and its effectiveness in Ryanair context Marketing concept is determined as a philosophy that is used by an enterprise for analysing customer's needs and then develop certain decisions for satisfy these needs, in a more better way than competition. Many firm nowadays use this concept in order to satisfy customer's needs and achieve business objectives. Ryanair also uses marketing concepts in order to provide high satisfaction to its customers (Nuuttila, 2019). There are various concept of marketing and its effectiveness in context of Ryanair are elaborated as follows- Product Orientation-The organisation with this orientation believes that customer's interest is in product's quality. Ryanair provides high quality airline services to its customers with affordable prices. Sales Orientation-Such enterprises focuses upon making large sales volume with the help of engaging in certain promotional activities like direct marketing, sales promotion and advertising. Ryanair do not only focuses upon sales but it focuses upon providing high quality product to its customers (Awan, 2019). Marketing concept used by Ryanair ThemarketingconceptwhichisutilisedbyRyanairisProductionconcept.Its effectiveness in this organisation context is explained as follows and how this enterprise utilise this concept is also elaborated- Production Concept-This concept lays more significance upon making such products which are easily available and affordable. In this, it is assumed that market is price sensitive and the company will produce cheaper product which is easy affordable. Ryanair's business operations 1
has proved to be production oriented enterprise. It is cost focused company that lays emphasis upon developing services at lower prices for making profits out of these cheap prices. Its carries out its operations at low cost and reduce its production cost to minimum. Ryanair has become successful after its Southwest Airlines business model in which it is operated at low fair prices. The famous quote by Michael O’ Leary is that Ryanair provides you cheap airfare which is safe and on time flight. It do not provide its customers any kind of vouchers, free food, drinks, and all the luggage carried are chargeable (Bain, 2008). This enterprise follows a complete philosophy of production oriented in which its aim is to offer cheapest price services to its customers. An organisation that is production-oriented believes in the fact that the low price offered by it will automatically reduce competition and attract large number of customers. Ryanair do not only offers cheap prices than its competitors but it also give tough competition to its substitute service provider such as roadways and railways. It has taken advantage of fact that consumers can do anything for the reduction in the travelling monetary burden imposed upon them. It passes directly upon the benefits it has gained from its passengers. It can be understood by an example in which airline discourage check in baggage which eliminates the handler's cost. This benefit is than passed to its customers in cheaper tickets form (Guides, 2019). If a customer choose to carry baggage than passenger is required to pay extra charges for this baggage. In this way, the cost is not developed at all. By following this concept of production orientation, Ryanair has successfully achieves its various set of objectives and goals in order to earn maximum amount of profit. It produces services at the minimum cost which has reduced its cost of production and than after it, the services are sold at the lower possible cost price. Marketing Orientation and societal marketing orientation Market orientation is determined as a business model which focus upon delivering such products that are designed as per needs and preferences of customers (Market Orientation of Ryanaire Essay,2019). On the other hand, societal marketing refers to that an enterprise should make marketing decisions not only for customers but also for long term society benefits. Ryanair focuses upon its customers and provide them quality services with lowest possible price (Veenendaal, 2019). This organisation knows that customers will prefer lowest possible travelling fares as compared to high amount of fare in travelling. So keeping in mind about the tastes and preferences of customers, this organisation offers them services with low 2
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prices. It also indulge in societal marketing by providing services that ensures society's long term interest. It comprise of energy efficiency, labour management, ethics, transparency and corporate governance in order to provide benefits to society (RYANAIR Investor Relations,2019). CONCLUSION AND RECOMMENDATIONS Conclusion From the above essay report, it has been concluded that Ryanair very effectively uses the concept of marketing to achieve its business objectives. This enterprise use the low price strategy by charging lowest possible price to its customers. It is ahead of its competitors as well as its substitute competitors such as roadways and railways. In short, it is doing its best for achieving its business objectives (Bowen, 2019). Recommendations Although, Ryanair is doing its best in achieving its business objectives but still it can improve more effectiveness to its marketing concepts such as it can improve its customer service by offering services that are produced of minimised cost. It can be achieved by improving the training quality that is given to employees at front line (Durand, 2019). 3
REFERENCES Books and Journals Awan, A. W., 2019. New contributions on the determinants of International Tourism Demand: Weather, Travel Diseases and Income. Bain, J., 2008. Ryanair—How a small Irish airline conquered Europe.Journal of Revenue and Pricing Management.7(1). pp.117-118. Bowen, J., 2019.Low-Cost Carriers in Emerging Countries. Elsevier. Durand, J. P., 2019. Two Scenarios for the Future. InCreating the New Worker(pp. 311-372). Palgrave Macmillan, Cham. Guides, R., 2019.The Rough Guide to Crete (Travel Guide eBook). Apa Publications (UK) Limited. Nuuttila, N., 2019. Breaking Down Brexit: What it could mean for the British Economy and International Trade. Veenendaal,A.K.,2019.RelevanceandCurrentPerspectives.InTowardaBetter Understanding of Rule-Breaking Market Behavior(pp. 1-35). Springer, Cham. Online MarketOrientationofRyanaireEssay.2019.[Online].AvailableThrough: <https://graduateway.com/market-orientation-of-ryanair/>. RYANAIRInvestorRelations.2019.[Online].AvailableThrough: <https://investor.ryanair.com/governance/esg/>. RYANAIR.2019. [Online]. Available Through:<https://www.ryanair.com/gb/en/>. 4