BA Marketing Management: Brand Audit of Ryanair Airways

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This report presents a brand audit of Ryanair, a prominent low-cost airline. The analysis begins with an overview of Ryanair's history, brand inventory (logo, slogan), and brand value proposition, highlighting its focus on low fares. It then delves into a competitive advantage analysis, examining how Ryanair's low-cost model and pricing strategies position it against competitors like EasyJet. The report explores customer perceptions of the brand, emphasizing the value proposition and cost leadership. A brand exploratory section examines the marketing mix (7Ps), Keller's Brand Equity Model, and the STP (Segmentation, Targeting, and Positioning) of Ryanair. The report also identifies points of parity and difference with other brands and concludes with strategic recommendations to improve the brand's performance and concludes with references.
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Running Head: Brand Audit of Ryanair
Ryanair Airways (UK)
Brand Audit
System04104
7/16/2019
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Brand Audit of Ryanair
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Table of Contents
1. Introduction.........................................................................................................................2
2. Overview about the Ryanair...............................................................................................2
Brand Inventory.........................................................................................................................2
2.1 Logo and Slogan of the Ryanair.......................................................................................3
2.2 Brand History...................................................................................................................3
3. Brand Value Proposition.....................................................................................................4
3.3 Competitive Advantage Analysis of Ryanair...................................................................4
3.4 Current Perception of Customers about the brand...........................................................4
Brand Exploratory......................................................................................................................5
1. Marketing Mix (7Ps) of Ryanair.....................................................................................5
2. Keller’s Brand Equity Model..........................................................................................6
3.1 STP (Segmentation, Targeting, and Positioning) of Ryanair...........................................7
4. Points of Parity and Points of Difference with other Brands..............................................8
5. Recommendations...............................................................................................................9
6. Conclusion........................................................................................................................10
References................................................................................................................................11
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1. Introduction
Ryanair is one of the largest and one of the low-cost Irish Airlines of UK. Ryanair has very
low production’s cost, which is less than other airlines (Ryanair, 2019). The low production
and operational cost makes it bigger and stronger brand than its other competitors. Ryanair is
known for its cheap flights and a wide network of coverage through its flights. This report
considers various factors, which contribute in the brand performance of Ryanair and also
evaluating the performance of competitive brands to evaluate the perception of customers
about the company. This brand audit helps to understand the current market position of the
company and shows the thinking of people about this brand. This brand audit also describes
various brand elements and the pertinent attributes of the brand. This report also helps to
understand the current perception of customers about the brand.
2. Overview about the Ryanair
Ryanair was established in 1984 as a low cost Irish airways company. The Headquarter of the
company is located in Dublin and it primarily operates its flights from Dublin and London
Stansted airports. Currently, the company has 83 bases in Europe and North Africa through
which it connects 37 countries (Ryanair, 2019). The company operates more than 2400
flights per day and have more than 17,500 skilled employees. The company has 455 new
Boeing aircrafts through which company covers more than 225 destinations (Ryanair, 2019).
However, Ryanair is known for its fast growth. Ryanair was one of the fastest growing airline
companies in Europe in 2015. The below figure shows the logo and slogan of the Ryanair
that is “The Low Fares Airline.” As the logo indicates, the main objective of company is to
provide low budget flights to the people (Ryanair, 2019).
Brand Inventory
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2.1 Logo and Slogan of the Ryanair
(Source: Ryanair, 2019)
2.2 Brand History
Source: (Barrett, 2016)
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3. Brand Value Proposition
Brand value proposition shows that how company creates a brand image and identity among
its people. It also shows that how this brand seen in the market and what are the perception of
people about the company. A successful brand always reflects a clear message to the mass
that who they are and what they stand for (Alamdari and Fagan, 2017). Therefore, the project
and identity of the company accordingly designed that fulfil the main objective of the brand.
Ryanair mainly focuses on providing cheap rate flights to the people and it is the company’s
main value preposition.
3.3 Competitive Advantage Analysis of Ryanair
Ryanair is known for its low fares, which is set by the company based on the demand for a
particular flight. This gives an edge to Ryanair over its competitors. Ryanair is also affected
by other low cost airlines like EasyJet and Monarch. These companies forced the Ryanair to
improve its service quality with low price strategy. The increasing competition in Airways
industry forces the Ryanair to cut its fare to minimum level and reduces its profit margin.
Although, the low price strategy of the company increases its number of customers but it also
negatively affect the profit margin of the company. That is why company has experienced
decrease in its financial returns (Alderighi, Nicolini, and Piga, 2019).
3.4 Current Perception of Customers about the brand
The mantra of Ryanair is to sell more seats on low prices when its going gets tough in the
Airways industry. By offering low fares, Ryanair expects to operate its business rather than
completely stop the services. This service model of the company creates an image of cheap
brand in the mind of customers. Customers think that Ryanair provide full value of their
money and provide best services on low cost that is suitable for their income. Ryanair plays
the role of cost leadership in the airlines industry and it gives a strong competition to its rival
airways companies (Myska and Harasta, 2016).
The other thing that gives an edge over the other player is use of scare resources in Ryanair.
Apart from this, the company receives discount from the Boing Company for using its
aircrafts and this also helps the company in its cost-effective services. However, use of
advanced technologies also provides advantages to the Ryanair over other airways companies
like EasyJet and British Airways. The services provided by the Ryanair are really good but is
not world class (Alderighi, Nicolini, and Piga, 2019).
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Brand Exploratory
EasyJet is one of the strong competitors of Ryanair in the UK market. The services of
EasyJet are almost similar to Ryanair and it also proposing the low cost services to its
customers. However, Ryanair is known for its rapid growth and low cost air services in the
market. Ryanair has achieved a significant growth in both in its number of passengers and in
its number of aircrafts (Dziedzic and Warnock-Smith, 2016). The company is continuously
focusing on purchasing new and advanced aircraft like Boeing 737 and Boeing 800 series etc.
Although, the company is charging very low fare to its customers but it negatively affects its
profit margin. However, the strategy of purchasing new aircrafts helps the company reduce
its operational cost like consumption of less fuel and low maintenance cost etc. (Buchan,
2017).
1. Marketing Mix (7Ps) of Ryanair
The marketing mix of Ryanair is as follow:
Product: Company has 455 new and modern Boeing Aircraft career (Grant, 2017). It also
focuses on purchasing latest technology aircraft career for its operation. These products are
very innovative in space.
Price: Prices of flight tickets and services provided within the flights are very low. The prices
of the flights decide to benefit middle-income class people. Ryanair generally charges very
low prices for its services (Moreno-Izquierdo, Ramón-Rodríguez and Ribes, 2015).
Place: Ryanair has its own hotels and it has leisure agreements and contracts with cheaper
airports. It mainly focuses on those restaurants and hotels, which provides best facilities to
the customers on cheap prices.
Promotion: The Ryanair uses social media channels, local newspapers, magazines, mobile
phone networks, and online booking platform to advertise its products and services to its
customers.
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Process: Ryanair has 91% accuracy in its arrival and departure time of flights. Ryanair is
known for its punctuality in flights and it very few cases were recorded of bag missing or lost
bags during the flight of customers (Negru, 2018).
People: Ryanair uses both its online portal and social media site like Facebook, Twitter,
Instagram etc. for complaints of its customer. The customer care services of the company also
solve the issue of its customers in minimum time. The fast action and instant solution of the
problem leave a great impact on the customers. Ryanair provide more cabin space for people,
ticketing flexibility, and seal allocation for the people.
Physical Evidence: Ryanair covers all European Union market and it always try to connect
more and more customers through its secondary airports. Apart from this, safety, security,
and cleanliness are the fundamental focus area of the Ryanair. The company also focuses on
more ticketing window facilities, pre-online reservation facilities, and provides primary
airports for the convenience of its customers.
2. Keller’s Brand Equity Model
The Keller’s CBBE (Customer Based Brand Equity) model shows the brand equity of the
Ryanair. It can be explained under the following points:
1. Resonance: The Company attached with its customers because of its low price
functionality of services. Even company connected with its customer when it was
failed to leave a great experience. It shows that company has weak brand resonance.
2. Judgements: According to this point, customer gets the service what they deserve to
get. In other words, Ryanair provides low quality services at high credibility on low
prices tickets (Hagmann, Semeijn, and Vellenga, 2015).
3. Feelings: Customer faces so many discomforts during flight ticket booking and
within the flight as well. However, the Ryan cares for the safety and security of its
customers. Company has very transparent and clear policies regarding its services and
operations.
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(Source: Wehner, López-Bonilla, and Santos, 2018)
4. Performance: The Company has good performance in departure and arrival time of
flights. Apart from this, company also care for its customers and provide best safety
and security. Ryanair also focuses on reducing the waiting time of customers and
provide them efficient luggage handling facilities. Cases of lost luggage is also very
less in Ryanair’s flights (Wehner, López-Bonilla and Santos, 2018).
5. Imagery: The Company has low fare policy but still it is known for its innovation.
The services of Ryanair are highly differentiated from its competitors and it gives an
edge over its competitors.
6. Salience: Ryanair has high level of brand image among its people. The company has
well-recognised logo and it has great values among its people. The company has high
brand awareness and strong brand equity among its customers (Zuidberg and de Wit,
2016).
3.1 STP (Segmentation, Targeting, and Positioning) of Ryanair
The Segmentation, Targeting, and Positioning of the company are as follow:
Segmentation: The Company focuses on short Haul and Long haul flights and makes its
strategies accordingly. The company mainly targets the young generation people but the
major customer belongs to age between 15years to 64 years. However, the company has 31%
customers between 25 to 34 years of age group (Caputo, Borbély, and Dabic, 2019). The
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company focuses to fulfil the needs of middle class and lower middle class people by provide
them flight services on very low costs.
Under
18yrs 18-
24yrs 25-
34yrs 35-
44yrs 45-
54yrs 55-
64yrs 65+ yrs
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
Age
Age
(Source: Caputo, Borbély and Dabic, 2019)
Targeting: The Ryanair is a low cost carrier and it gives strong competition to other
competitors. According to the age group table most of the customers of the company belongs
to 18-54 years of age group that reflects the target market of the airline. Ryanair has the best
opportunity to cover the future market in the airways industry and give strong competition to
both local and international airways companies (Barrett, 2016).
Positioning: The Company mainly focuses on low and middle-income class group and
introducing its airlines in Asian countries. Asian countries such as China and India are known
for huge population and most of the people belong to middle-income class (Thomas and
Thomas, 2015). The company is also focusing on giving value for money of its customers
and make ready to people to spend money for experience best comfort in the flights.
Customer satisfaction at the low cost is the primary motive of the company. The company is
also positioning itself among the Business travellers and students as well (Dobruszkes,
Givoni, and Vowles, 2017).
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4. Points of Parity and Points of Difference with other Brands
Points of parity: The customer perception about the Ryanair is that it provides best services
in low cost. The quality of services is almost similar to other brands and their services. Apart
from this, another parity is that it has European presence same as other airways like EasyJet.
Points of Difference: The prices of the Ryanair services are unbeatable and it has very low
communication budget. The company charges very low fare from its customers and it is the
major point of differences among all.
5. Recommendations
On the basis of above brand audit of Ryanair, these are following recommendations that can
be applied to improve the current situation of Ryanair:
1. The company needs to improve its digital footprints and invest money to advertise its
brand and brand message to the large number of people. The company needs to
convey its message to large number of people through advertising channels like social
media or TV advertisings. It is the short-term goal that company can used to improve
its performance and maintain its reputation as a low cost brand.
2. The company needs to improve the relationship with its employees because it further
helps to improve its operation cost with educated and trained employees. Apart from
this, the company can also enhance the number of flights to cover the future demand
of customers.
3. The next step that can help the company to improve its business operation and
maintain the low cost brand equity is to increase its fleet size and also increase the
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number of destinations. The company should find new destinations where people
usually travel. It will help the company to improve its profit margin.
6. Conclusion
In conclusion, there is no doubt that Ryanair is one of the popular brands in the UK, but its
low pricing strategy and low profit margin will definitely affect its business operation and its
brand image in future. The low cost brand equity of the company should be planned in such a
way that will not affect its profitability and brand image in future. The company needs to
formulate strategies that ensure the company to fight with future challenges and gain
competitive advantage over other competitors by maintain adequate profitability levels.
However, the Ryanair should review its inflight services and should maintain its uniqueness
in its differentiated services. Low cost fare and differentiated services are the key things
about the Ryanair and the company should try to maintain its brand image among the people.
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References
Alamdari, F. and Fagan, S. (2017) Impact of the Adherence to the Original Low-cost Model
on the Profitability of Low-cost Airlines. Low Cost Carriers, 15(4), pp. 73-78.
Alderighi, M., Nicolini, M. and Piga, C.A. (2019) Is low-cost carriers’ revenue management
a firm capability?. Journal of Air Transport Management, 78, pp.15-22.
Barrett, S.D. (2016) Ryanair and the Low-cost Revolution. Air Transport in the 21st Century,
4(6), pp. 163-178.
Buchan, J. (2017) Lessons from Ryanair. Nursing Standard, 32(11), p.28.
Caputo, A., Borbély, A. and Dabic, M. (2019) Building theory on the negotiation capability
of the firm: evidence from Ryanair. Journal of Knowledge Management, 23(2), pp.240-262.
Dobruszkes, F., Givoni, M. and Vowles, T. (2017) Hello major airports, goodbye regional
airports? Recent changes in European and US low-cost airline airport choice. Journal of Air
Transport Management, 59, pp.50-62.
Dziedzic, M. and Warnock-Smith, D. (2016) The role of secondary airports for today's low-
cost carrier business models: The European case. Research in transportation business &
management, 21, pp.19-32.
Grant, R. (2017) Ryanair: matching the activity system to the strategy. The Business &
Management Collection, 16(8), pp. 22-26.
Hagmann, C., Semeijn, J. and Vellenga, D.B. (2015) Exploring the green image of airlines:
Passenger perceptions and airline choice. Journal of Air Transport Management, 43, pp.37-
45.
Moreno-Izquierdo, L., Ramón-Rodríguez, A. and Ribes, J.P. (2015) The impact of the
internet on the pricing strategies of the European low cost airlines. European Journal of
Operational Research, 246(2), pp. 651-660.
Myska, M. and Harasta, J. (2016) Less is More: Protecting Databases in the EU after
Ryanair. Masaryk UJL & Tech., 10, p.170.
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