An Analysis of Ryanair's Marketing in Travel and Tourism: A Report

This report provides a comprehensive analysis of Ryanair's marketing strategies within the travel and tourism industry. It begins with an introduction to Ryanair, followed by an in-depth examination of market segmentation, including geographic, demographic, and psychographic approaches. The report then explores various target marketing strategies, such as mass marketing, differentiated marketing, niche marketing, and micro marketing. Furthermore, it delves into positioning marketing, discussing the principles of placement, price, product, and promotion, and their significance in the tourism market. The report concludes by summarizing the key findings and emphasizing the importance of effective marketing in the competitive travel and tourism landscape. Relevant references are also included to support the analysis.

TRAVEL AND TOURISM
MARKETING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................1
Market Segmentation in Tourism Industry..................................................................................1
Target marketing strategies .........................................................................................................2
Positioning Marketing in Tourism Industry.................................................................................3
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Ryanair is an irish budget airline company which is headquartered in Sword, Dublin
Airport, Ireland. Ryanair is founded in 1984 and famous as Europe's biggest discount airline
company. It carries large number of international passengers rather than other airlines. It offers
airline services to customer across the world. The brief study of the report will help to
understand role of marketing in travel and tourism industry.
Market Segmentation in Tourism Industry
Market Segmentation is division of customer base to increase the communication channel
and information to attract them in business organization effectively (Park, Ok and Chae, 2016).
Market segmentation also provides effective understanding about all the types of customer trends
in tourism industry to develop effective products and motivate them to become loyal. Increase in
demand of customer in tourism industry due to globalization it has also widened the
opportunities for tourism to attract more customers from across the country with help of market
segmentation market strategies. Ryanair needs analyse all the market customer segments to
increase sales by focusing on each segment through marketing strategies. This also increase the
potential of company to focus on specific customer base to develop services and increase their
satisfaction level effectively.
Geographic
Geographic segmentation includes all the types of customers who wants to travel from
one place to another. This segmentation strategy provides services to customers according to
geographic demand which also increase the opportunities for growth of business organization in
tourism sector effectively (Grant, 2017). This strategy also helps business to focus on geographic
area to increase sales by developing effective marketing plans. This also helps to subdivide this
segment in detail by analysing their behaviours and buying patterns effectively. As every
geographic location has different beliefs, attitudes and different business environment factors
which can impact positively and negatively to business organization. Ryanair being an
internation airline company tries to identify customers by promoting different tourist destination
which also helps to increase the attractiveness of customers to travel and satisfy their desires
effectively.
Demographic
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Demographic segmentation is division of customer base of al the markets in common.
Which includes age, gender, income level of customers which to motivate them with effective
marketing activities and increase the efficiency to become more potential in market effectively.
Ryanair airlines segments its customer base on the basis of social class and more over on upper
middle and upper class customers which have the potential to spend on travel frequently and
increase their satisfaction. Airline also segments its customer base on business and family travel
customers to attract them effectively.
Pyschographic
Pyscographic segmentation provides effective understanding about customer which have
different lifestyle, personality and standard of living (DeSarbo, Blanchard and Atalay, 2017).
This segment also helps business to identify effective customers who are more willing to spend
in tourism sector according to their lifestyle and personality and hobbies which helps to make
decision to buy business services and increase their services effectively. It is very essential for
Ryanair to this segment as this helps to attract more frequent travellers who have hat lifestyle and
personality to travel to different places. Company also segment their customer on the basis of
expenditure pattern of customer as there are many customer segments who are rich but do not
have lifestyle to spend money in luxury.
Target marketing strategies
Target market refers as a marketing strategy which supports to select and describe one or
more target market that used to promote organization's products (Bolhuis and Challis, , 2017).
These strategies support company to differentiate their product, brand and target market. There
are four target market strategies which is described below:
Mass marketing
It is marketing strategy where markets are not differentiated well form. In other words, to
target two to more than market in bulk form. Most of the tourism industry applies this strategy to
meet customer objective. The main drawback is that organisation can't target particular
customers.
Differentiated marketing
It refers as a procedure to break market into smaller segments. It is brain storming step
which helps to access on small market. This strategy encompasses demographics, lifestyle,
geographic and behavioural approach which supports organization to access potential market.
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Demographical segmentation strategy helps to break market on the basis of race, marital status,
gender and income. While lifestyle segmentation supports to classify customer on the basis of
their interest and hobbies. Geographical segmentation strategy assists organization to break
market on the basis of region like national, international and local and state. While behavioural
market is divided into small market which is based such things' usage pattern and benefits of the
products. Various tourism organization applies this strategy to segment market so that can meet
each customer objectives over the period.
Constraint (niche)
It is another strategies which helps to focus on target market at a time. Various
organization applies this strategy to target on specific market on the basis of market size, growth
potential, business opportunities and competitive intensity. It is the best strategy to generate high
revenue by meeting market objectives (Rao-Nicholson and Khan, 2017). Some tourism industry
use this strategy to target their customers.
Micro marketing (Individual)
It is an essential marketing tool which supports organization to create positioning of
brand in business market. Various organization improves qualities in their products and their
services like unique features, environmental friendly products, family friendliness, safety,
reliable, durable and low cost products. Thus type quality supports company to build trust of
customer on brand and their products as result easy to get positioning of brand in business
market. It leads loyalty of customer as well on company.
Ryanair follows differentiated marketing strategy which helps to focus each customer by
different market segments i.e. demographical segment, lifestyle segment, behavioural segment
and geographical segment. Apart from this, it supports organization to generate high revenue and
gain competitive advantage from competition market.
Positioning Marketing in Tourism Industry
Positioning is the process of increasing the brand value by developing effective perceived
values of customers with help of marketing strategies (Cho, Bonn and Brymer, 2017). This also
helps business to become loyal and attract more customers by mouth publicity.
Principles of Positioning marketing
Placement
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Placement is the strategy to provide consistent supply of product in market which can be
easily accessible to customers in market. It is the availability which helps the customer to make
decision and increase the sales of business in market effectively (Liu and et.al., 2019). It is also
very essential for business to determine all the factors which helps the company be compared
with quality products. Ryanair needs to position its services in the market by marketing with its
potential competitors and providing better quality which helps the customers to attract towards
Ryanair effectively.
Price
Price is very essential factors which helps business to position itself in market. As there is
tendency of customers to analyse product's quality with the price of product which also help to
increase sales of company if the price is very effective (Jamal and Camargo, 2016). Ryanair
needs to use low pricing strategy with high quality of services which helps company to be
effectively positioned in market and also create loyal customer base to gain higher profit margins
in the market.
Product
To position brand in market it is very essential for business to develop unique product
which helps to increase customer trust on brand (Schultz, 2018). Innovation is one of the
effective method to position the business in the market. Ryanair has also innovated the aircraft
with effective digital technologies to increase their satisfaction and make them satisfies
effectively.
Promotion
Company need to promote its prices, service quality with effective communication
channel which also helps to increase awareness of customers about all information develop
effective market position (Reino and Hay, 2016). this also helps Ryanair to motivate customers
to increase mouth publicity and also social marketing helps business to position in low cost and
increase sales tom gain higher profit margins.
Importance of Positioning Marketing
Position is very essential in the market as there are competitors which has the potential to
compete in market. Tourism, industry is vastly connected globally which also increase the
competition of rival. Business and product positioning also helps to increase opportunities of
company to attract more investors due to high trust value in market and high goodwill to increase
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the sales of the company (Vellas, 2016). Investors also has the potential to provide effective
funding to businesses to grow in different markets and satisfy each stakeholder effectively.
Ryanair need tom use Positioning strategy as it helps to communicate vision of company to its
customer base and also increase perceived value of its services to increase sales and profit
margins effectively. Positioning also help Ryanair to analyse the customer needs and want and
develop effective services and increase customer satisfaction effectively. Company also uses
cultural values and belief of the market to increase potential of company in market effectively. It
is also very essential for the company to resolve the issues of each customer to retain them
effectively.
CONCLUSION
It can be concluded different types of segmentation which is used by tourism industry.
Different types of target marketing strategy has been summarized in report. The most important
principles of positioning and their significance in the organization can be concluded in report.
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REFERENCES
Books and Journal
Cho, M., Bonn, M.A. and Brymer, R.A., 2017. A constraint-based approach to wine tourism
market segmentation. Journal of Hospitality & Tourism Research. 41(4). pp.415-444.
DeSarbo, W.S., Blanchard, S.J. and Atalay, A.S., 2017. A new spatial classification methodology
for simultaneous segmentation, targeting, and positioning (STP analysis) for marketing
research. In Review of marketing research (pp. 95-123). Routledge.
Grant, R., 2017. Ryanair: matching the activity system to the strategy. The Business &
Management Collection.
Jamal, T. and Camargo, B., 2016. Sustainable tourism marketing: Doing justice to place, people
and pasts.
Liu, J and et.al., 2019. Market segmentation: A multiple criteria approach combining preference
analysis and segmentation decision. Omega. 83. pp.1-13.
Park, S.B., Ok, C.M. and Chae, B.K., 2016. Using Twitter data for cruise tourism marketing and
research. Journal of Travel & Tourism Marketing. 33(6). pp.885-898.
Reino, D. and Hay, B., 2016. The use of YouTube as a tourism marketing tool.
Schultz, D.E., 2018. From STP to PAR: Moving communication planning from the past to the
future. Applied Marketing Analytics. 3(4). pp.286-290.
Vellas, F., 2016. The international marketing of travel and tourism: A strategic approach.
Macmillan International Higher Education.
Rao-Nicholson, R. and Khan, Z., 2017. Standardization versus adaptation of global marketing
strategies in emerging market cross-border acquisitions. International Marketing
Review.
Bolhuis, J. and Challis, A., 2017. Target Marketing for International Recruitment: An Experience
in China A Capstone Internship submitted to Southern Utah University in fulfillment of
the requirement for the degree of: Master of Arts in Professional Communication April
2017.
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