segmentation of easyjet company
EasyJet’s key marketing strategy is based on a fairly simple structure. Any company desires to charge a price that cover up its cost of production, distribution, and sales cost, including a fair give back for its hard work and risks (Gary Armstrong & Phillip Kotler, 2005). British Airways segmentation, targeting and positioning refer to ways in which the airline company identifies certain individuals among the general public to offer their service packages. Segmentation in general engages significant market study and can therefore be expensive. Due to very low prices it’s very difficult to compete it on prices base. Segmentation variablesFor easyJet, based on the analysis above and Jobber's (2013) theory, the segmentation variables used by the company are mainly the usage of the product, perception of airline services and demographic variables.Based on the usage, the market can be segmented into four main segments which are longhaul leisure travellers, long-haul business travellers, short-haul leisure … “Newer” means developing the unique solutions that don’t exist from before, it usually involves higher risks than a simple improvement but also chance of higher gain. Thanks to it, theats are eliminated, opportunities are created. EasyJet should take this in consideration that where it should respond by ceding niche-market or by competing ground low price to the new contestants. Even though easyJet’s success could be placed exclusively on Haji-Ioannou’s vision and adaptableness, what contributed to the success of the company were the market which it operates in and the business model that they have decided to follow. The service marketing mix of Easy Jet discusses the 7P's of Easy jet as a service provider.Easy jet’s website is offered through search engines and travel/flight comparison websites, this is both advertising and selling their service. Corporate troopers: choose an airline and a class that has been selected for them by their firm. The mission of the airliner is to provide a comfortable and economical travel option for the customers. Porter's generic strategies detail the interaction between cost minimization strategies, product differentiation strategies, and market focus strategies of porters. Geographical Segmentation In 21st Century... easyJet. 737; as a result it is able to eliminate the maintenance cost. Our academic experts are ready and waiting to assist with any writing project you may have. ( Porter, 1998 ) Main Findingss. With the takeover of Go, formed by a management buyout from British Airways in 2001, EasyJet became the … The company’s fleet size grew by 62 percent between 2011 and 2019, climbing to 331 by 2019. Firstly “cheaper” products are often viewed as inferior in quality. And it offers strictly no frills, i.e. They fly almost new planes and fuel-efficient (Airbus Press Department, 2006). The target of the study is to talk about EasyJet and its market segmentation utilising the causes cited in the register of references. Despite of economic crises, it enjoyes the increasing cashflow and market share growth with its poor brand (easyJet, 2009b). Threats 8. The low cost airlines by distribution channel is segmented into online, travel agency, and others (such as spot booking). Flying from minor airports and stay away from the major airport hubs, put easyJet on a side from the direct rivalry with other airlines. It is headquartered at Luton Airport in London. 9. The company creates the merchandise to accommodate the gustatory sensations or demands of a specific market. The little enterprise tends to find out the segment it serves best, by the test and mistake of considering with customers and supplying goods more and more apt to its specific clientele. It started its operation in 1995 with three Boeing 737 connecting three Taxes cities. easyJet each aircraft on average is 2.2 years old. Browse our 100’s of destinations you can jet off to with easyJet, and with thousands of seats at great prices, we know we have a deal you will love! In fact, it began taking shape in the 50’s when brands like Proctor and Gamble and General Foods began pouring a lot of money into brand management—or marketing as we know it today. This free study guide has been prepared to meet the information needs of university-level marketing students throughout the world. SWOT analysis of EasyJet analyses the brand/company with its strengths, weaknesses, opportunities & threats. Study for free with our range of university lectures! “Faster” means cutting down the time of performance or delivery in the process of using or buying a product/service. Unlike British Airways or any other high class Airlines, easyJet is a classless airline. No plagiarism, guaranteed! EasyJet is intended to be “simple” and trouble-free (easyGroup, 2008). Frugal flyers: seek out the cheapest airlines, but still expect their flight experience to be enjoyable. It is small a British airline, it has carved its niche in short-haul flights with low prices and no frills. EasyJet is the first carrier and it proud on it, when it charges its customers for even a cup of coffee (Sager, 1998). The company must know about their goal and what they want to achieve with the product/service they offer to their clientele. EasyJet stands itself as a “fun” airline that breaks regulations but not promises. EasyJet always target short distance flyers, i.e. 35 Transformation of optimization problems in revenue management, … Posted on décembre 7, 2014 par lorisangella. Market segmentation Segmentation and segmenting characteristics are vital to help a company to satisfy the requirement of her clients as well as broaden her clients’ base. Companies that differentiate their offerings solely by cutting their costs and price may be making a mistake, for several reasons. Travel seekers: love travelling and are eager to have new experiences. If you need assistance with writing your essay, our professional essay writing service is here to help! Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Tour takers: want everything to be arranged in advance for them. Space Technology New York; Nov 18, 2002). On 11th November 2006, The Times suggested that easyJet were successful in capturing the business market. Emerging slowly but surely is a domestic industry that eventually could be dominated not by traditional hub-and-spoke airlines, such as United and Delta, but by low-cost carriers like easyJet. The support of consumer is conditional on the ability of firm to exhibit its alignment with the society’s behavioral norms, ideology and moral standards (brown & Dacin, 1997; Carroll, 1999; Managing & Ferrell, 1999). This book also includes specific chapters on project marketing, brand policy, gaining loyalty through maintenance and training, compensation, and alliance strategies. Global executives: frequent business travellers who enjoy their experience thanks of the high level of service. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. It is powered by the YouGov Cube - our connected data vault which holds over 120,000 variables on 190,000 YouGov members. In 1956, Wendell Smith introduced the concept of market segmentation in Product Differentiation and Market Segmentation as Alternative Marketing Strategies(not a thrilli… In the winter of the same year, easyJet launched its first two flights across the UK. Appointment of Ray Webster as Managing Director, easyJet floated on London stock exchange (shares six times oversubscribed), Online bookings reach 80% (highest proportion in the world), Stelios announces he will step down as Chairman, easyJet acquires GO (becomes largest low-cost airline in Europe with 81 routes), easyJet announces that it will grow aircraft capacity by 25% per year until 2004, easyJet exceeds £1 billion turnover figure for first time (fleet size = 44 aircraft), Ray Webster announces intention to retire as Managing Director, Figure 1: Milestone events in easyJet’s development over time. If the firm did not distinguish it is offering in any other than price, the competitor will soundly beat it. Analyse Easy Jet ‘s competitory scheme EasyJet is a British company founded in 1995 which offers low-cost air travel, both domestic and international scale of operations. Finally a competitor may will usually find a lower-cost production site and offer an even cheaper version. Market segmentation certainly isn’t the latest and greatest tool on the market. Secondly easyJet do not offer its passengers any kind of free food, for example lunch, dinner or any snack, but only a bag of peanuts. Schedule optimizers: have to reach destination by a certain time and select their flights accordingly. Market segmentation leads to an efficient distribution of services to the right customers. Info: 1637 words (7 pages) Essay It is small a British airline, it has carved its niche in short-haul flights with low prices and no frills. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Search Business analyst jobs in Owings Mills, MD with company ratings & salaries. The demographic segmentation will require Easyjet Plc to divide market according to demographic characteristics, like- gender, age, income and ethnicity. Even though several segmentation types exist, the psychographic segment prevails in this industry. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. Critical Literature Review Based On Easyjet Airline Industry Cost & Price EasyJet offers cheaper flights and “cheaper” is one of the broad ways a company … EasyJet is intended to be “simple” and trouble-free (easyGroup, 2008). Which opened the eyes of the other airline industries and they realized, that they don’t have any strong hold on the market shares compare to these low cost airline industries like easyJet. Companies who use different types of planes their maintenance cost is usually high. It presents the essentials of marketing from basic concepts such as segmentation, positioning and the marketing plan, to the product policy, pricing, distribution and communication. (Sull, 1999). EasyJet offers cheaper flights and “CHEAPER” in one of the big way a company can set apart its offering. If Easyjet Plc chooses behavioural segmentation, then customers will be divided according to their buying pattern like usage frequency, benefits sought, usage occasions and brand loyalty. By observing the past two years while most of the industries were suffering by the hard time of recession, Airline like easyJet was enjoying its maximum earnings. (Simplicity in pricing structures and convincing the customer that the airline is “doing one thing and doing it will” (Laura Ries President of Rise & Rise quoted in Nigam, 2008). Mile accumulators: Consider flights as a way of building up their air miles entitlement. Soon after the company grow to 157 planes, a route network to 37 cities and annual returns of $2 billion. And by the end of 2020, it may get settle by 45%. Registered Data Controller No: Z1821391. EasyJet airlines fare differentiation has been the key to profitability. Looking for a flexible role? The airline was founded in March 1995 by Greek-Cypriot entrepreneur, Sir Stelios Haji-Ioannou. In Value Pricing companies offer a high product for a reasonable low cost. Color orange is becoming the synonymous of the firm easyJet, as it has become worlds most low-cost and useful airline (Alamdari and Fagan, 2005). Market segmentation leads to an efficient distribution of services to the right customers. Question 1 How do easyJet’s marketing objectives and its marketing mix strategy affect its pricing decisions? For instance if easyJet has selected its target market and market spotting watchfully, then its marketing mix strategy, counting price will be fairly simple. EasyJet ’s Mission Statement: “To provide our customers with safe , good value , point-to-point air services . The author of the High penetration online sale aids in the development of low cost model of LCC. It has been assumed that By 2017, the domestic market share of the “Big six” plus British Airlines will fall from 75% (2008) to 50%. It is performed predominantly in primary business with highly differentiated merchandise lines or assisting huge markets. SMD2021-4244-Network Engineer (Illumio/ Vmware NSX) ... Role Description This resource is going to help with TRP's Network Segmentation efforts. EasyJet has frozen its cost, by flying only one type of plans i.e. Quality vacationers: See the travel as a part of the vacation experience and so fly with airlines that provide high-quality services. Since 2012, EasyJet exclusively operated Airbus … Even though several segmentation types exist, the psychographic segment prevails in this industry. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. As mentioned earlier easyJet is hitting passengers who can drive to their distention, but rather than driving company’s offerings are such that they can easily fly their way. Low-cost airlines like Easyjet, have picked up some customers from their traditional competitors like BA (British Airways) or Air France, but have specially created a large traffic of induction (creating a new market). All work is written to order. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. As a result easyJet can fly one passenger for 6.8 cent per mile (American 8.8 & United 9.6 CENT). Market segmentation is the research of breaking up general market into clientele subsets or segments, which’s in segment distributing similar characteristics and desires. 2.6 Positioning and Segmentation EasyJet entered the market in 1995 with a highly credible brand positioning, limited European destinations but effective and low cost. “Better” means that a company is offering outperforms its rivals’ offers; it usually engages an improvement of the existing products/ service in a minor way. With our flex guarantee across all bookings, you can book your trip with confidence. EasyJet offers cheaper flights and “ CHEAPER ” in one of the large manner a company can put apart its offering. High application of online mode of sale has helped control the work … Do you have a 2:1 degree or higher? Moreover, Reusable tickets, first come first served basis, seating in high density and single class cabin (Sager, 1998). The article also covers top EasyJet competitors and includes EasyJet target market, segmentation, positioning & Unique Selling Proposition (USP). For instance easyJet operates between cities and internationally by offering point-to-point short flights. The firm can also create value by offering something that is Better, Newer and Faster. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. Easyjet’s Market Segmentation Market segmentation is the research of breaking up general market into clientele subsets or segments, which’s in segment distributing similar characteristics and desires. This report is about the Easy-Jet airlines, and the way its innovative features and functions have led it to a market leader and a successful position. The route of Luton to Glasgow was launched on November 10th before Luton to Edinburgh was launched on Novembe… Segmentation in general engages significant market study and can therefore be expensive. EasyJet knows about this fact that’s why it does not compete on prices alone, rather it has one of the best on time flight records in the industry because it passes by the most crowded hubs. Thanks to it, theats are eliminated, opportunities are created. Reluctant travellers: do not enjoy travelling and seek services that will make their experience bearable, such as special privileges and frequent flyer programmes. 1,306 open jobs for Business analyst in Owings Mills. business class people. By 2013, Edmund S. Virgin Airline will be the British largest UK Airline, and passing other emerging airlines easyJet will grow to be the third largest UK airline by 2020, depend on the degree of difference in growth rates of the two groups of carriers (Begley, 2002). We're here to answer any questions you have about our services. Management. Book online today! Color orange is going the synonymous of the house easyJet, as it has become universes most low-priced and utile air hose ( Alamdari and Fagan, 2005 ) . THE NEW SEGMENTATION AND MEDIA PLANNING PRODUCT FOR AGENCIES AND BRANDS Customers of EasyJet YouGov profiles is the new segmentation and media planning product for agencies and brands. EasyJet airlines fare differentiation has been the key to profitability. Porter claimed that a company must only choose one of the three or risk that the business would waste precious resources. Company Registration No: 4964706. Critical Literature Review Based On easyJet Air Line Industry. Second the firm may cut the services to keep the price down, and this action may alienate buyers. Apply on company website. Facilities are all mutually same for all customers, which in turn helps easyJet management to work out the exact cost. It started its operation in 1995 with … It can offer additional flights to business travelers with busy timetable, for the same cause. Optimal pricing strategy based on market segmentation for service products using online reservation systems: An application to hotel rooms International Journal of Hospitality Management, Vol. Segmentation scheme means merchandises are focused on few, selected market or the specialised markets. Some of them could become shadows of their previous slaves. A competitive industry, like the airline industry, uses this concept in order to eliminate service homogeneity. This assignment focuses on a cheap, no frills, UK based Airline company called easyJet. In today’s economy, the ability of a business to compete favorably depends on specifically targeting specific subgroup of people with similar characteristics. EasyJet is also one of the Airline industries that posts profits on a consistent basis. Easy Jet is a flight booking company located at London. “Question haunts industry as low-fare carriers taken hold of market share, and high costs, low productivity begin to squeeze the life out of some Airlines” (Aviation Week &. luggage or other belongings. EasyJet has adopted Value Pricing technique. British Airways could probably have benefited from the lessons of this segmentation and the mindset underlying it, judging from the financial success of low-cost, no-frills airlines, in particular, easyJet ... 57 pages 595 1 Sep/2007 3.0 EasyJet established a website which is named as Right Now Service around every one of its European websites, which is used to make communication growth between the consumers and company. They expect the travel to be comfortable. swot analysis of easyjet 4. strengths 5. weaknesses 6. opportunities 7. A top limit on the price that the company can charge for its offered product/services is set by Demand and the costs of the company sets the base. Easyjet’s market segmentation and related marketing mix strategies Since established in 1995, easyJet has experienced a rapid growth with more than 10% each year on the company’s total revenue. Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. It has been capable to keep its fares at a low level because, it operates one type of Aero plane (The 737), thus eliminating expenses of maintaining of different types of plane. Free resources to assist you with your university studies! Published: 4th May 2017 in *You can also browse our support articles here >. The businessman chose the modest town of Luton in the United Kingdom as the place to start his missionto offer low-fares flights in Europe. EasyJet is always keen on time and punctuality. Thing that matters most for the business travelers is “time”, it facilitate its segment customers in cutting flight time by avoiding busy routes. Moreover, one could argue that UK Airways, who has lofty fixed cost and low productivity, was in fact the first victim of the low-cost carriers. In June 2005 easy lounges were introduced, even though passengers had to pay for that as well, but it resulted in the attraction of business travelers. Short-haul roots and facilitating good customer service might help easyJet to be dominant over its new competitors. VAT Registration No: 842417633. EasyJet provides a comfortable flight and friendly services, for the cost of almost one-third of its competitors, though one without frills. Easyjet operates in a different way to Ryan Air – its direct competitor in the market, which is targeting the leisure traveller for whom the ticket price is important. This study guide is a comprehensive discussion (along with many examples) of the key aspects of: market segmentation, segmentation bases, target markets, product positioning, and perceptual maps, as well as examples of market segmentation. A competitive industry, like the airline industry, uses this concept in order to eliminate service homogeneity.