Marketing Mix Decisions

Team Members: John Falvey, Gerard Dohran, Daniel Keating, Liam Carey

Intoduction of companyRyanair•Set up in 1985•5,000 Passengers in first year•Established there first route from Waterford to London Gatwick

Easyjet•Established Stelious Haji-loannou •Was only 28•Initially operated 2 aircrafts with two routes Luton-Glasgow Luton- Edinburgh • First international route was Amsterdam

Topics Discussed

• Introduction

• The success of the low price strategy.

• Advantages and risks of the low price strategies.

• Conditions for charging low prices hold for Easyjet and Ryanair.

• The failure of EasyCinema.

• Yield Management System

• On board reductions

• Expansion

• Yield management

• Low Price

• Strategic Control

Reductions

• One type of aircraft

• Fast Turnaround times

• No free meals

Advantages and Risks of Low pricing Strategy

Pricing Strategies

•Easy Jet Economic Strategy

•Ryan Air Strategy Rapid penetration Strategy

Advantages and Risks of Low pricing Strategy

Advantages•Very Competitive Strategy

•Maximises Profits

•Reduces Cost

Advantages and Risks of Low pricing Strategy

Risks•Many cases of consumer Dissatisfaction

•Lost Luggage

•No Compensation

Reason for positive outlook• Cheap and cheerful

• Quick turn around times (20 mins)

• Flights less expected to be delayed (Ryanair announcement)

• Small bases at local airports, increase customer loyalty in the local area.

Conditions for charging low prices • Reduce Pilot training and maintenance costs

• Cabin crew doing the cleaning

• Mainly secondary airports such as Luton and local regional airports like Waterford

Easy Cinema

• Located in Milton Keynes, United Kingdom in 2003• Provided Cinemas rates as low as 20p per movie• Wanted to challenge other cinemas • Wanted to expand throughout the United Kingdom

Closure of Easy Cinema

• Movie companies did not want there movies to be sold at such a low price.

• Reduced Customer base.

• High Rental Rates.

• Could not apply the yield management system successfully to the company.

• Pressure from competitors like UCI Cinemas.

Thank you for listening