Strategic Management and Marketing Analysis of Ryanair Report

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This report provides a comprehensive analysis of Ryanair's strategic management and marketing communication strategies. It begins with a brief overview of Ryanair, a low-cost airline, and then delves into a critical evaluation of its marketing communication tools, including advertising, online marketing, and direct marketing. The report examines the characteristics, features, and effectiveness of these tools, particularly focusing on how Ryanair utilizes advertising and sales promotion to attract customers. A strategic marketing communication plan is then presented, outlining the mission, objectives, and communication strategies employed by Ryanair. These strategies include sponsorships, public relations, and direct marketing, with examples provided to illustrate their implementation. The report concludes by summarizing the effectiveness of these strategies and their impact on customer acquisition and retention. The report highlights the importance of strategic decision-making in the marketing communication of Ryanair.
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STRATEGIC
MANAGEMENT
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INTRODUCTION...........................................................................................................................3
Brief description of the company...........................................................................................3
Critical evaluation of the characteristics, features and effectiveness of the marketing
communication tools..............................................................................................................3
Strategic Marketing Communication Plan.............................................................................5
Marketing Communication Strategies....................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategic management refers to the process of designing and execution of major goals and
strategies of entity in order to gain a strategic edge in market over rivals (Goffin and Mitchell,
2016). This process is necessary so as to make sure that an organisation runs in a desirable
manner within corporate world and employs effective marketing and other initiatives so as to
gain the attention of a large section of population towards the products sold by company. The
present report is based upon Ryanair which is an airlines dealing in low cost carrier having its
headquarters in Dublin, Ireland. This report comprises of brief description of company along
with strategic marketing communication plan. Also it includes the characteristics, features and
effectiveness of the marketing communication tools along with marketing strategies adopted by
the company.
Brief description of the company
Ryanair is an airline operating within Irish aviation industry and provides low cost
carrier. This organisation was found in 1984. This airline is well-known for its most preferable
cost carrier and high addiction to its customer. Ryanair mostly has fleet size 130 aircraft, out of
which all are Boing series aircraft which is B-737. This leading provides private charter along
with customer carrier service to 80 major locations, including England and North Ireland. They
are mainly unique in providing rapid services to people with commitment of low fares and zero
flight delay. Due to low fares, they provides add on value food products by paying money and
have pure commitment of tasty services. To gain market attractiveness, they are already entered
into specific target market by adding private chattered service top rich and premium for their
point of interest. This has been undertaken after analysis of private chattered service in an entire
UK. The major strength of this airliner is their morale commitment and power to highly
convenience customer's to retain and service durability for future scope and understanding. In
addition to this, Ryanair will tackle all other low cost carrier in future to lead its way to top
ranking (Griffiths, 2018) .
Critical evaluation of the characteristics, features and effectiveness of the marketing
communication tools
Marketing communication has now become important to make customer’s being heard
about business entities offering to them at their own set of choices. It has been recognized as
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major tools, which involves informing public about company offerings or their sharing any
information on launch of new products or services. While doing communication with clients or
customer, there are a number of marketing communication tools such as advertising, online
marketing, enhancing the public relation or direct marketing to make customer strategically
inform about new products or services in business portfolio. Brand generally promotes their
products or services through these modes of marketing communication to make customer retain
at bigger level to keep continue buy (Schuetz and Schrefl, 2017). These communication channels
are major tools which creates connection with customer to know what they want and how to sell
with both time and cost efficiency. In context with Ryanair which is a low cost carrier is biggest
example of communication with their customer on larger basis. This has become a strategic tool
for most of the airlines to bring customer at numbers to continue.
As a strategic manager, in order to implement integrated marketing communication, it is
essential for Ryanair to communicate effectively with their clients to get point of interest.
Marketing communication involves various tools such as advertising, sales promotion, direct
promotion and direct marketing. Strategic review of Ryanair reveals that it uses advertising and
sales promotion so as to bring new customers to Ryanair fleet along with commitment for pure
and soul of service. With help of advertising, they use to advertise new destination such as
Dublin to Prague at special amount. The main advantage of advertising is that, acquiring huge
crowd of prospective within the given point of time. Generally, airline uses advertisement over
webpage or internet search engine optimization (Schuetz, Mair and Schrefl, 2018).
Advertisement not only increases the consumption of a products or services, but also creates
brand awareness among business loyal and trustworthy customer at the longer value or stage. In
context with Ryanair, effectiveness of advertisement can be judge on basis of efficiency of
Ryanair customer lead at one particular advertisement along with its suitability and durability, till
launch of next advertisement.
Sales promotion has been proven a base of profit generation for Ryan air, because they
offers experience journey to their customer at low cost fare and wonderful in-flight experience.
Ryanair offers Christmas package to people who lives in other part of United Kingdom to visit
different places or explore festive attraction. This is a part of their strategic planning, through
which they Ryanair can promoted their services through discount coupons, loyalty members,
membership card and attractive packages to attain higher and higher customer at one point of
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time. The critical analysis says that advertising and sales as a marketing communication are both
aimed at attracting customer’s at the bigger stage. Positive impact of advertisement is attracting
huge number of customers at one point of time. On the other hand, negative impact is about
generation of huge funds, which straight forward impact on strategic goals accomplishment of
business efficiency and increased action planning to gain customer loyalty on a profitable basis.
Evaluation is required to be undertaken necessary of these two marketing communication to
make customer satisfy beyond their expression limits along with judging suitability for operation
of Ryanair. In future, Ryanair can go with advertisement as their strategic choice to continue
their operation and also should make relevant alteration in their in-flight experience by giving
welcome drinks to passengers to impress to enhance their loyalty for customer in longer stage
(Borbély, 2016).
Effectiveness of the marketing communication needs to have proper evaluation of vision,
mission or goals associated with business accomplishment of Ryanair. Customer retention is
majorly associated with level of services offered to customer at what price they are paying and
also what are their expectations from airline carriers. It has to be critically evaluated that
marketing communication are major source of information, either business expansion or service
empowerment into a business operation (Caputo and Borbely, 2016). After reviewing Ryanair
past performance, it has to be revealed Ryanair will be successful in future, if in case they would
want to establish value chain of information to attain higher and maximum business profits.
Strategic Marketing Communication Plan
To market the low carriers sold by Ryanair, a strategic marketing communication plan
has been devised which lays the foundation to success of an organisation in marketplace. To
gain the attention of and to serve the global clientele well, the management of this organisation
has made a strategic communication plan as given below:-
Mission: The mission of this communication plan is to create awareness about the
innovative and creative ingredients which are an active part of the service package of this airline
for medium and long term framework (Warren, 2015). Extensive promotional and advertisement
plans are being used by this entity to meet the needs, demands and preferences of customers
which acts as a boost to the integral operations and functioning of an entity.
Objectives: Ryanair has devised this plan with certain specific objectives which are
described below:-
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To be able to reach out to over 85% of the air travellers outside and within Europe and
communicating the message of implementation of innovation element across the
organisational premises to customers.
To create a positive and effective influence upon the mindsets as well as behavioural
characteristics of discontented consumers to gain the attention of larger base of people
within UK (DELBARI, 2016).
To create a strong operational environment by enforcing a culture and framework
wherein incentives are given in association with marketing strategies to enhance the
attractiveness of products of Ryanair to customers spread across the global marketplace.
To enhance the attraction towards the website of company by approximately 12% by the
end of 6 months owing to the use of Search Engine Optimisation to increase web
searchees.
Marketing Communication Strategies
Ryanair makes use of effective communication strategies so as to communicate about its
low cost carriers to public and to build an effective relationship with them (Thomas, 2015). In
this regard, it has been acknowledged that this airline makes use of a number of marketing
communication strategies so as to reach out to its customers and market in an effective manner.
Such strategies are briefly described below:-
Sponsorships: This serves as an effective marketing strategy for companies that strive to
gain the attention of a large number of people at one point of time. In this regard, Ryanair has
extended sponsorships for a wide variety of events so as to create awareness about the low cost
carriers of entity and assist in enhancing the sales and profits of entity. Some of the examples of
sponsorships of this airline are with National Gallery of Ireland, Trinity College Dublin,
Cheltenham Festival, Fairyhouse, Punchestown Festival, Leopardstown Christmas Festival
(Sponsorship, 2019). With this the airline gains attention of a large number of people at one point
of time so as to have a huge impact.
Public Relations: This can be referred to as a management function which deals with
identification, establishment, maintenance of mutually beneficial relation between a company
and public (Armstrong and et. al., 2015). With regards to Ryanair, the strategic manager of this
enterprise makes use of this marketing strategy with the aim to secure a top position in
marketplace. This airline delivers information about company’s products by way of advertising
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and marketing and make communication with customers on the basis of feedbacks that they
strive to obtain from public so as to enhance their service quotient.
Direct Marketing: This being one of the oldest forms of marketing can be referred to as
a process of communication wherein a direct network is established with customers by the firm
by way of telephone, electronic means, mail, infomercials, online computer shopping service etc
(Ahmed and et. al., 2019). In this regard, Ryanair makes use of telephone and mail marketing to
grab the attention of people towards the products of this entity.
CONCLUSION
From the above report, it has been concluded that marketing communication has been
resulted into acquiring customer or clients at the larger and bigger level. Along with this,
strategic marketing communication plan has become necessary to uphold and get relevant source
of information to maintain the customer flow and loyalty for longer business duration in every
business role or enhancing higher and major profit for higher period of time in business
regulation. Lastly, strategic choice making has become necessary to implement full-fledged
decision making in an effective manner.
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REFERENCES
Books and Journals
Ahmed and et. al., (2019). Ryanair: A low-cost business model in the european airline industry.
Armstrong and et. al., (2015). Marketing: an introduction.
Borbély, A. (2016, June). The Firm’s Strategy and its Negotiation Capability: the Ryanair Case.
In Paper presented at the 16th European Academy of Management Annual Conference
(Vol. 1, p. 4).
Caputo, A., & Borbely, A. (2016). Ryanair’s negotiation capability and the firm’s strategy.
DELBARI, S. A. (2016). KEY COMPETITIVENESS INDICATORS AND DRIVERS OF
FULL-SERVICE AIRLINES OPERATING IN MALAYSIA..
Goffin, K., & Mitchell, R. (2016). Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Griffiths, M. A. (2018). Brand vulgarity. Journal of Product & Brand Management.27(4). 404-
414.
Schuetz, C. G., & Schrefl, M. (2017, November). Towards formal strategy analysis with goal
models and semantic web technologies. In International Conference on Conceptual
Modeling (pp. 144-153). Springer, Cham.
Schuetz, C. G., Mair, E., & Schrefl, M. (2018, October). PESTEL Modeler: Strategy Analysis
Using MetaEdit+, iStar 2.0, and Semantic Technologies. In 2018 IEEE 22nd
International Enterprise Distributed Object Computing Workshop (EDOCW) (pp. 216-
219). IEEE.
Thomas, M. (2015). Ryanair: success before love. Strategic Direction.31(8). 1-3.
Warren, K. (2015). Strategy Dynamics Essentials. Strategy Dynamics Limited.
Online
Sponsorship. 2019. [Online]. Available Through:<https://corporate.ryanair.com/sponsorship/>.
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