A Comprehensive Report on Ryanair's Marketing and Communication

This report provides a comprehensive analysis of Ryanair's marketing and communication strategies. It begins with an introduction to marketing concepts, including production, marketing, and societal orientations, and then examines Ryanair's specific orientation. The report delves into a situational analysis of Ryanair, exploring macro-environmental factors, and identifying key competitors. It then discusses market segmentation, outlining the variables used by Ryanair to target its customer base. Finally, the report applies the 7Ps of the marketing mix to Ryanair, providing insights into its product, price, place, promotion, physical evidence, process, and people strategies. The report concludes with a summary of findings and references.

Marketing and
Communications

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK-1............................................................................................................................................1
1.1 The production, marketing and societal orientation in marketing...................................1
1.2 The orientation of Ryanair by giving examples...............................................................1
TASK-2............................................................................................................................................2
2.1 Purpose of situational analysis and its importance of Ryanair ........................................2
2.2 The macro environment factors for Ryanair...................................................................2
2.3 The two competitors of Ryanair.......................................................................................3
2.4 The strength of Ryanair business operation.....................................................................3
TASK 3............................................................................................................................................3
3.1 Discussing major set of variables used in segmentation of market .................................3
3.2 Identification of segmentation variables used by Ryanair...............................................4
TASK 4............................................................................................................................................5
4.1 Using 7P's in Ryanair marketing mix...............................................................................5
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
The concept of marketing plays an essential role in any business .More and more people
are making strategies for marketing in order to grab more number of customers towards their
services and product (Bharadwaj, 2015. ). The needs, wants and demand are some concept of
marketing that is used by companies. Many organizations are also making use of social website
in order to make their communication stronger with their employees and customers.
Ryanair Ltd. is an Irish low-cost airline that was founded in the year 1984.The main goal
of this company is to pay attention on high efficiency and low operational cost. This report will
represent the production, marketing and social orientations in marketing. The orientation that is
being adopted by Ryanair will also be explained in this report. The macro environment will be
considered of Ryanair. The key competitors of Ryanair will also be identified in this report. The
marketing mix for Ryanair will also be disused in this report.
TASK-1
1.1 The production, marketing and societal orientation in marketing
The production concept – In business this is one of the oldest concept. In this the
products that are not so costly and also which are easily available are preferred by the customers.
In order to achieve high production efficiency managers focus on this concept. The assumptions
are made about customers that they are interested in availability of products and at a low cost.
The Marketing concept – This help the organization to gain competitive advantage form rival
companies. By using this concept the marketing of product is done as per the needs of customers.
The better products from the rivals are being delivered by the company. With these goals of
organization can also be achieved as they will develop products keeping in mind the desire of
customers. The market reach have been conducted .For any type of product and market the
market concept is suitable (Dawson, Hirt and Scanlan, 2016.).
The societal marketing concept – In this the attention is there on needs and wants of target
market. The human welfare is put on the top by concept of societal marketing concept. More
effectively the satisfaction among customers is delivered form this marketing concept.
1.2 The orientation of Ryanair by giving examples
On the making of products the production orientation of these companies focus. It wants
to make its services affordable and available. The inexpensive products are made and also the
products are also easily affordable. Ryanair is a very-cost focused company. At the cheap rates
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the services are provided by this company. On almost all of its resources its operations are
carried out at low price (Dawson, Hirt and Scanlan, 2016). For an example not only low price is
offered by this company but also competed with substitute services for air travel such as rail and
road. It is one of the greenest and cleans airline. In order to reduce the impact on environment the
most efficient operation are being used. The interaction with customers have been enhanced be
launching the always getting better customer charter. In order to promote its services the
company also make use of advertisements .For an instance one of the advertisement of this
company was made in which it was shown that most comfortable and cheapest fly is proved by
this company. The cost of handlers is been eliminated by the company as this airline discourages
check-in baggage. In the form of cheaper tickets this benefit is been directly passed on to
customers. The objective of earning profit is achieved by the company by following the
production orientation. At minimum possible cost it provides its services and at the most
minimum possible costs it sells the same services (Kakarot-Handtke, 2015.).
TASK-2
2.1 Purpose of situational analysis and its importance of Ryanair
All the answer where the business is standing now can be get form situational analysis.
The marketing audit is being conducted in it .In which all the problem regarding the company is
identified and in order to overcome that issues the solution is also provided. By using SWOT,
porter's five forces and pestle analysis the situational analysis can be done.
The marketing strategy will help this company to achieve its goals of business. The
company will be able to provide its services as per the needs of customers through this marketing
strategy and also it will be able to gain competitive advantage from the rivals. More innovative
and creative products will be used by the company to make its services superior to the rivals. The
company will also be able to expand its business on a broader platform by using the strategies of
marketing (Gerlemann and Carr, 2014).
2.2 The macro environment factors for Ryanair
Political factor – As there is increase in competition there have been decrease in
margins which is related to deregulation. The cost of oil has been increases due to political
instability in middle east. The operational costs and waiting times have been increased due to
new security requirements (Pestle analysis of Ryanair , 2017). This all things are making this
transportation less attractive for customers. The new environmental cost have been there so the
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tax that is associated with it will increase. The entire airline industry will have an impact due to
rise in the UK air passenger duty.
Social cultural – The number of staff that needs to operate have been reduced by this company in
order to increase cost efficiency (Hofmann, 2015.). The multi tasking is being enforced by this
company. The pilot helps in unloading bags during engaged times. Due to attacks that is taking
place there is a fear among people regrading travel. People are also going less due to recession
and also there is a change in treads and attitudes of people.
Both these factors that is social and political factor are threats rather than opportunities
as if there will be any attack there will be a downfall that will be faced by this company .
2.3 The two competitors of Ryanair
One of the competitors of this company is easy Jet .At low cost it provides its services
and also its profit margins are high. This company gives importance to the safety of customers
during their travel. In order to achieve their business goals the employees are hard-working and
talented. The competition is also faced by this company from Monarch Air Group. This airline
company also proved its services at lower fare to customers. The potential threat that posses is
that both of these airline provide its services to customers at lower prices and also that safety and
facilities is more given to customer in comparison with Ryanair (Leonidou and Zeriti, 2013.).
2.4 The strength of Ryanair business operation
Low costs – Across the globe it is one of the lowest of any airline. In comparison, with
rivals the cost per available seat kilometre ,cost per seat etc all are low in cost.
Low fares – On a profitable basis low cost enable low fares. In comparison, with rivals the
average fares of Ryanair are low.
Innovation – The nature of short-haul flying have been changed by Ryanair this innovation was
done by this company. In Europe the lost-revolution was also done by this company.
This company's safety record is first class and in the online booking system it is the
leader and also in the ticket- less flight.
TASK 3
3.1 Discussing major set of variables used in segmentation of market
Market segmentation means dividing the whole market and the customer into various
segments or sub groups which share same type of characteristics (Krush and Agnihotri, 2016).
Company's do this segmentation to identify the customers and the market to gain maximum
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profit from them according to the age, gender, income, education level and various others. The
four main variables of market segmentation are on the bases of demographics, psycographics,
geographic and behavioural segmentation.
 Demographics- this segmentation is based on the personality qualities of the market
consumer which include age, gender, caste, race, marital status, income and occupation
which the consumers are having.
 Psycographics- in this the market consumer are divided into the shared activities, interest
and behaviours which the consumers are having (Büyüközkan, Mukul and Uztürk, 2016).
With in the activities the lifestyles are also the base of the market segmentation and the
opinions and values which the customers are having.
 Geographic- when the market segmentation is based on the locations which include
regional and national level then it is known as geographic segmentation. Like targeting an
urban population of 100000 customers is different from targeting 1000 population of
rural population.
 Behavioural- in this the customers are targeted by the interest and experience of the
customer with that of the company. Like usage of the product, loyalty and status are
common characteristics.
3.2 Identification of segmentation variables used by Ryanair
As Ryanair is a low fair airlines which focus on high quality and low cost of the air
tickets and is not offering free sweets and food in their flights. So the segmentation will many
based on the occupation and income level of the customers which generally prefer the low cost
flights (Singh and Dharmarajan, 2017). The customers who like to travel from low cost and high
quality flights certainly will prefer Ryanair airlines.
So Ryanair will be using demographic segmentation to divide the customer into segments
and that to into economic status and income (Al-Khateeb and Al-Hazmi, 2017). Like it need to
increase the sales and profits of the company so it will target the middle class people from the
market so that they can use the airlines and give the preference to the company. The company
can also use the behavioural segmentation to segment the market customer in to sub groups like
the customer who are likely to remain more loyal to the company.
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TASK 4
4.1 Using 7P's in Ryanair marketing mix
The marketing mix are the variables which Ryanair will use to increase the sales and
profits of the company. Marketing mix is the marketing tools which are used by the company to
pursue the marketing objectives of the company. The marketing mix include 7P's in it which are
namely product, price, place, promotion, physical evidence, process and people. As Ryanair
being the service based industry the use of 7P's in it are very important.
 Product or service- Ryanair is about to launch holiday package to a Europe tour in
December 2017 which would be increasing the sales by 14%. So this is the service which
the airlines is about to start in December which need to be very attractive so that more
and more customers can be included in the tour.
 Price- the price is the value that the customer will require paying in return of the
purchase made by him which is in terms of money. So the price of the holiday tour
package of Europe which is organised by Ryanair should be affordable as it is targeting
the middle class people in the market.
 Place- this include the market coverage and the location decision and also the
transportation. As Ryanair is covering the parts of Europe and is operating in Europe only
with over 2000 flights per day.
 Promotion- this refers to the market communication through advertising, direct
marketing and the sales promotions. The promotional mix also include the channel and
media strategies that how to reach the target audience. As Ryanair will be planning a tour
to Europe in December 2017 so it need to do the promotion of the products and the
service which it will be providing to the customers.
 Physical Evidence- this is the actual environment and the space where the service will be
taking place. This will also include the website of the airlines which should be very good
and the content in it should also be very useful for the customer.
 Process- this is the documentation and the other procedures which are included in the
working of the company. The process will include starting from the website, then the
ticket booking, then the check in and check out and till the date the service has been
delivered to the customer.
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 People- they are the personal who are delivering the service to the customers. All the
staff members and the employees of the airlines and the interactions of employee with
that of the employers.
CONCLUSION
Thus , summing up the above report it can be concluded that marketing strategy plays an
essential role for the companies. With this the companies can expand their business on broader
platform. Ryanair company which is a well-known airline in UK make use of production
marketing where the cost of services is low and is easily made available for customers. The
competition from easy jet is faced by this company. The strength of this company is that its
prices of airline and fares is low. On the occupation and income level the segmentation will be
done. The advertising is used by company in order to promote its services to the target market.
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REFERENCES
Books and journals
Al-Khateeb, T. T . and Al-Hazmi, N. M., 2017. Obstacles to promotional mix for tourism in the
Kingdom of Saudi Arabia: an applied study on Al-Kharj governorate.
Bharadwaj, S., 2015. Developing new marketing strategy theory: addressing the limitations of a
singular focus on firm financial performance. AMS review. 5(3-4). pp.98-102.
Büyüközkan, G., Mukul, E. and Uztürk, D., 2016, December. MARKETING STRATEGY
SELECTION FOR LOGISTICS COMPANIES. In LM-SCM 2016 XIV. INTERNATIONAL
LOGISTICS AND SUPPLY CHAIN CONGRESS (p. 437).
Dawson, A., Hirt, M. and Scanlan, J., 2016. The economic essentials of digital
strategy. McKinsey Quarterly.
Dawson, A., Hirt, M. and Scanlan, J., 2016. The IAB Establishment Panel—methodological
essentials and data quality. Journal for Labour Market Research. 47(1-2). pp.27-41.
Gerlemann, G.D. and Carr, S.N., 2014. Impact of ractopamine hydrochloride on growth,
efficiency, and carcass traits of finishing pigs in a three-phase marketing
strategy. Journal of animal science. 92(3). pp.1200-1207.
Hofmann, A., 2015. Compensation and Benefits: Essentials of Base Salary. Handbook of Human
Resources Management, pp.1-15.
Kakarot-Handtke, E., 2015. Essentials of Constructive Heterodoxy: Money, Credit,
Interest. Browser Download This Paper.
Krush, M. T., and Agnihotri, R., 2016. What Marketing Strategy Matters? Examining a
Contingency Model of the Relationship Between Marketing Performance Management and
Business Unit Performance. In Marketing Challenges in a Turbulent Business Environment
(pp. 321-322). Springer, Cham.
Leonidou, L.C. and Zeriti, A., 2013. Resources and capabilities as drivers of hotel environmental
marketing strategy: Implications for competitive advantage and performance. Tourism
Management. 35. pp.94-110.
Singh, S., and Dharmarajan, A., 2017. Role of Social Media Marketing In Brand Building:
The New Age Marketing Strategy. International Journal of Scientific Research, 5
(9).
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Online
Pestle analysis of Ryanair . 2017. [Online] Available through:
<http://www.marketingteacher.com/ryanair-marketing-mix/>
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