Introduction
Ryanair is an Irish based air transport company, headquartered in Dublin airport, Ireland. It was established in 1985, and since Ryanair has expanded from a small airline to serving 79,3 million passengers. It operates 1,600 flights a day connecting 180 destinations. (Ryanair Annual Report, 2013, (Ryanair)).
Michael O’Leary, Ryanairs charismatic boss and one of the most successful business man in the world. Starting from a single plane company, in about 30 years he has made Ryanair the largest airline in Europe. He had a vision and an appealing business model with central focus on cheap costs. And he achieved his vision through his masterful leadership. So how did Michael O’Leary do it?
Marketing Mix is the set of controllable …show more content…
According to the above criteria, there are three main types of Ryanairs passengers; vacationers, business travelers and budgeted travelers.
However, approximately 70% of customers, come from budget travelers segment. Budget travelers are a group of customers who use Ryanair for short trips and their purpose of trip is just to reach their chosen destination e.g. family visitor or a student. Therefore, they are not very concerned about ‘frills’.
Company’s CEO, Michael O’Leary (2009) describes the brand identity as follows:
You’re not getting free food. We don’t want your check-in bags. We’re not going to put you up in hotels because your grannyy died… It’s a commodity.
Ryanair’s CEO believes that it is only the price, safety and punctuality of airline that budget travelers value (O’Leary, 2011).
Competitor analysis
Main Ryanair competitors that operate under low-cost strategy in Europe are: easyJet, Air Berlin, Norwegian and WizzAir. Ryanair is clearly a leader amongst its competitors in providing the lowest price. Although, in terms of customer satisfaction, Ryanair is at the very bottom. Ryanair positioned 16th and its biggest competitor EasyJet positioned 12th. (Which, 2012; Counihan
Ryanair is an Irish based air transport company, headquartered in Dublin airport, Ireland. It was established in 1985, and since Ryanair has expanded from a small airline to serving 79,3 million passengers. It operates 1,600 flights a day connecting 180 destinations. (Ryanair Annual Report, 2013, (Ryanair)).
Michael O’Leary, Ryanairs charismatic boss and one of the most successful business man in the world. Starting from a single plane company, in about 30 years he has made Ryanair the largest airline in Europe. He had a vision and an appealing business model with central focus on cheap costs. And he achieved his vision through his masterful leadership. So how did Michael O’Leary do it?
Marketing Mix is the set of controllable …show more content…
According to the above criteria, there are three main types of Ryanairs passengers; vacationers, business travelers and budgeted travelers.
However, approximately 70% of customers, come from budget travelers segment. Budget travelers are a group of customers who use Ryanair for short trips and their purpose of trip is just to reach their chosen destination e.g. family visitor or a student. Therefore, they are not very concerned about ‘frills’.
Company’s CEO, Michael O’Leary (2009) describes the brand identity as follows:
You’re not getting free food. We don’t want your check-in bags. We’re not going to put you up in hotels because your grannyy died… It’s a commodity.
Ryanair’s CEO believes that it is only the price, safety and punctuality of airline that budget travelers value (O’Leary, 2011).
Competitor analysis
Main Ryanair competitors that operate under low-cost strategy in Europe are: easyJet, Air Berlin, Norwegian and WizzAir. Ryanair is clearly a leader amongst its competitors in providing the lowest price. Although, in terms of customer satisfaction, Ryanair is at the very bottom. Ryanair positioned 16th and its biggest competitor EasyJet positioned 12th. (Which, 2012; Counihan