Marketing Concept defy the oligopoly market Business Essay Example

2002 and 2003. Net profits also saw substantial growth, rising from ˆ150.4 million (35%) to ˆ239.4 million (59%). What sets Ryanair apart from its competitors is its team of over 8000 employees and extensive flight operations. With more than 51,100 flights annually and an average of over 1400 flights per day, Ryanair connects 160 destinations using their fleet of 250 new aircrafts, including the efficient Boeing 737-800. They offer over 1100 low-cost routes across27 countries and plan to add another 64 aircraft into their fleet within the next two years as stated on www.rayanir.comCurrently, Ryanair transports approximately 73.5 million passengers, which is a 15% increase compared to last year's figure of 63.5 million. Safety measures for passengers are highly prioritized by Ryanair's management and encompass the training of pilots, cabin crews, and maintenance personnel according to European Airline Industry standards.

The selling concept involves identifying consumer desires and providing products or services accordingly. It includes business activities such as planning, pricing, promoting, and distributing services to target markets in order to achieve organizational goals.

According to Baker (1992), marketing focuses on establishing mutually satisfying exchange relationships where satisfaction depends on the perception of the parties involved. Marketing essentially involves creating the right product at the right price and placing it in the appropriate location with effective promotion to ensure customer satisfaction in the target market.

Selling targets both current and future clients to fulfill their needs. Most organizations strategically design an analytical map to attract customers. The significance of marketing strategy should not be underestimated as it can increase profits and provide a competitive advantage. Starting with an effective strategy is crucial to avoid failure.The marketing strategy plays

a crucial role in guiding an organization's long-term actions and offering advantages. It involves effectively organizing and utilizing resources within a challenging environment while meeting market needs and stakeholder expectations. A successful strategy entails analyzing current situations, developing plans that address all operational aspects, and aiming to achieve organizational goals. Jain (2000) emphasizes the importance of strategic selling by considering long-term implications, monitoring business environments, incorporating corporate culture and resources, adjusting roles for different products or markets while keeping stakeholders in mind.

Marketing Strategy encompasses analyzing target markets, selecting marketing opportunities to pursue, and creating a suitable marketing mix satisfying customers in the target market. It consists of four key elements: sales or promotion, product, place, and pricing. The Marketing Strategy of Ryanair is essential for their business as it helps identify goals and outlines how they will be achieved within a specific timeframe. Like other organizations, Ryanair aims to maintain or enhance their competitive advantage in the market through various types of marketing strategies such as guerrilla marketing and viral marketing. Guerrilla selling is one tactic employed by Ryanair.This text discusses the implementation of guerrilla selling techniques in marketing strategies, using Ryanair as an example. According to Tom Richard (2005), these techniques allow businesses to increase traffic while minimizing expenses. Ryanair focuses on cost reduction and minimal service standards, offering short-haul flights at low prices with a no-frills approach. This strategy aims to establish a competitive position within the airline market by offering low fares and maintaining operational efficiency. By attracting customers through affordable products and services, Ryanair is able to sell higher-margin offerings and enhance the customer experience. Their goal is to gain a

competitive advantage through cost leadership and differentiation strategies, in line with Porter's generic strategies. They also prioritize delivering excellent customer service, as seen in their performance compared to competitors in terms of punctuality, lost baggage, and cancellations. Operating from less congested secondary airports has helped build their positive reputation; for instance, in September 2010 alone, they achieved Europe's highest-rated airline service with 85% of over 42,000 flights arriving on time.Ryanair has minimal complaints, with only one per 2,000 passengers, and rare incidents of lost bags at less than one per 3,000 passengers. Safety is a priority for the airline, evident in their flawless twenty-year safety record without major incidents involving passengers or flight crew. In addition to reliability, Ryanair offers frequent point-to-point flights on short-haul routes using secondary or regional airports instead of major ones. This ensures regular service for their passengers and allows for better on-time departures, quicker turnaround times, fewer terminal delays, and more competitive airport fees. By avoiding expenses associated with connecting passengers and their baggage, as well as transit passenger assistance costs, Ryanair is able to maximize aircraft utilization. A study by the Association of European Airlines (2004) found that Ryanair had an exceptional on-time performance at 92% during the first half of 2004 compared to competitors like Lufthansa (84%), Air France (84%), easyJet (82%), British Airways (81%), and Alitalia (80%). As part of their expansion plans between Ireland, the UK, and continental Europe, Ryanair aims for manageable growth by targeting specific markets.Ryanair has implemented various strategies to expand its services and increase customer convenience. This includes creating new routes from the U.K. or Ireland to destinations in Continental Europe that

are typically served by more expensive airlines. Additionally, Ryanair utilizes viral marketing through social networks to promote their products and services, effectively spreading their marketing message through websites, videos, e-books, software, images, and text messages.

To attract and retain customers directly, Ryanair allows online flight bookings on their website instead of relying on travel agents. By doing so, they save agency fees while providing convenience for customers. In fact, Ryanair launched its largest booking website in Europe called www.ryanair.com in January 2000. Within just three months of its launch, this website generated a significant number of weekly bookings (over 50,000) while also reducing costs. The website offers not only flight bookings but also options for low-cost hotel accommodations, car rentals, travel insurance, and rail services.

Furthermore, Ryanair sponsors the weather report on Skynews as part of their marketing strategy to reach millions of viewers across Europe who watch TV at home or stay in hotels.

Customers have the flexibility to book tickets online within a wide time frame ranging from 15 days to just 4 hours before departure according to ryanair.com's information provided in 2009 (Source: ryanair.com/about-us/history).Online bookings also offer the convenience of reprinting boarding passes up to 4 hours before departure. Ryanair prioritizes customer satisfaction and fosters good relationships through its monthly magazine, which aims to engage and connect with readers by providing travel guides, tour ideas, real estate guides, hotel reviews, entertainment guides, technology updates, and profiles. The magazine focuses on the interests and buying behavior of its audience in order to offer affordable travel options and accommodations. In addition to this, Ryanair sells charity magazines and donates all proceeds raised. Their first charity calendar featuring

cabin crew was published in 2008 and raised ˆ75k for children's charity 'Angels Quest' in Ireland. Effective public relations tactics are crucial for successful communication with customers worldwide (adapted from www.ryanair.com). Public relations (PR) plays a vital role in establishing a strong connection between a company and the public as it allows for better understanding of the company's operations. This not only helps the company reach its full potential but also enables them to gather feedback from the public regarding areas of satisfaction or dissatisfaction. It is important to recognize that in the tourism industry, every employee has a role to play in public relations (PR), not just the PR department.Utilizing PR strategies allows organizations to shape their mission and vision while meeting customer demands. Companies employ tactics to maintain customer loyalty, such as Ryanair's implementation of strategies aimed at improving their relationship with customers. According to statistics from the Association of European Airlines (2004), Ryanair ranked highest in customer satisfaction by providing prompt service, minimizing lost baggage instances, and reducing flight cancellations. Peter, the head of communications at Ryanair, stated that their prices and level of customer service satisfaction are unmatched by other high-cost airlines. Additionally, Ryanair has collaborated with several companies for advertising on seatbacks and overhead luggage storage areas within their planes. These efforts align with Berry's (1983) concept of relationship selling and help strengthen overall client relationships and convert apathetic clients into loyal ones. In today's competitive market, successful relationship selling is crucial for acquiring more customers and developing a loyal customer base. Ryanair serves as an example as they have implemented various relationship selling tactics to connect with the public.To

enhance service quality and boost customer satisfaction, Ryanair places emphasis on promptness, minimizing lost baggage cases, and reducing cancellations. They have also launched their own website, which offers all relevant information and updates. In addition, the airline publishes a monthly magazine and participates in charity initiatives. Moreover, to maintain customer loyalty, Ryanair frequently provides special deals. For example, on November 1st, 2010, they introduced a promotion that allowed customers to book ˆ6 seats for travel to over 500 European destinations in December and January. Customers were required to make these bookings before midnight (24:00hrs) on Thursday (November 4th), as mentioned in Ryanair's news release. By offering this unique opportunity, Ryanair aims to cultivate stronger relationships with their clients while offering them affordable travel options.

Furthermore, Ryanair has shown their dedication to the public by donating proceeds from the sale of their calendar to charity. The Dublin-based airline contributed 100000 euro to Dublin's Simon Community charity that supports stateless individuals in the city (About Us,www.ryanair.com). Recognizing the significance of customer loyalty in ensuring profitability, Ryanair acknowledges the value of loyal customers who contribute through increased purchases, longer tenure, and positive word-of-mouth recommendations. Prioritizing customer loyalty is crucial for Ryanair's success.According to Reichheld (1996), higher customer loyalty leads to improved employee satisfaction and better returns for shareholders. He also emphasizes the importance of loyalty from employees and investors for organizational success. Therefore, building strong relationships with the public relies on fostering loyalty.

To encourage repeat business, Ryanair has partnered with Webloyalty, a reputable provider of online business solutions. Through their "discount strategy" option, Webloyalty specializes in driving repeat customer business. Customers who book online with Ryanair can enroll in

the discount program "Shoppen und Sparen" for a 30-day free trial period. This program offers year-round discounts of over 20% at more than 400 online retail stores. Additionally, customers receive a ˆ15 cash back check from Webloyalty for their next Ryanair purchase.

Martin Child, Managing Director of Webloyalty Europe, believes that by implementing the program, Ryanair's website can reward repeat customers and generate revenue and repeat business with minimal effort.

Sinead Finn, Manager of Commercial Gross at Ryanair highlights how passengers have been saving billions each year on Europe's largest low-cost airline through guaranteed lowest fares. Now, in partnership with Webloyalty across three European markets, even more passengers can choose to join membership programs and save through ongoing discounts.
Ryanair has announced a flight offer on August 20th in Bangor and Belfast coinciding with A-level results day. The offer includes free flights for A-level students who have been accepted into colleges and universities located in five destinations from George Best Belfast City Airport: East Midlands, Bristol, Liverpool, Glasgow Prestwick, and London Stansted. To take advantage of this offer, eligible students should visit Major Street Bangor or Belfast next Thursday between 11:00 am and 2:00 pm bringing their A-level result slip and letter of offer from Ryanair. This initiative aims to address the costliness of attending university for students and their families by providing affordable flight options. By implementing successful marketing strategies like this one, Ryanair ensures customer satisfaction while securing a strong position in the business market.Flexibility and adaptability play a crucial role in creating a successful marketing strategy, as well as in the daily actions taken by marketers across various decision-making areas in marketing. These tactics aid

in establishing strong customer relationships. The use of public relation strategies serves as an initial step towards an effective strategy, enabling Ryanair to thrive in a competitive market and attain a prominent position within the airline industry. By employing effective sales schemes and public relation tactics, Ryanair has managed to increase profits and reduce costs, emphasizing frequency, promptness, and excellent customer service. As a result of these strategies, Ryanair has emerged as Europe's largest low-cost airline. The company's overall strategy combined with its public relations endeavors have contributed to revenue growth and increased passenger numbers. In 2010, Ryanair announced a noteworthy net profit of ˆ319m – a significant improvement compared to the previous year's profit of ˆ105m. This achievement stands out amidst competitors who have reported losses due to the global recession. Recognizing that price is important for customers' decision-making process, Ryanair leverages this understanding to attract them effectively. Additionally, they excel at cultivating customer relationships through punctual service delivery and have launched an extensive booking website (www.ryanair.com) to facilitate these interactions with their audience.
According to the Ryanair website, they have achieved significant success on their Dublin-London route, surpassing major airlines like British Airways and Aer Lingus. Ryanair is the largest passenger airline on all routes to and from Dublin, particularly known for its intercontinental scheduled path in Europe. The company's cost reduction strategy has resulted in a continuous increase in passenger numbers. In September 2010 alone, they had 6.84 million passengers, which was over 12% growth compared to the previous year. This success highlights the importance of prioritizing customer satisfaction and meeting their needs.

Ryanair has been successful in attracting a large number of passengers

and maintaining high profitability through its low-cost marketing strategies. However, if the company fails to meet customer expectations, it may experience a decline in business. Therefore, it is important for Ryanair to establish strong relationships with customers to ensure long-term success and improve brand reputation while increasing profits.

Despite offering minimal services, Ryanair should recognize the importance of its customers and focus on building loyalty. By improving public relations, Ryanair can achieve greater success and strengthen its position in the competitive business world.
(Source: About us - Ryanair website; Ryanair news dated September 4th, 2010)The company's marketing strategy is focused on cost leadership, achieved by cutting expenses and offering cheap fares. However, due to the increasing oil prices that affect the aviation industry, it is recommended for Ryanair to evaluate its pricing approach and possibly raise fares in order to maintain operations.