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Custom Ryanair Marketing Plan essay paper sample

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Introduction

Ryanair is a cheap cost airline that has its head quarters in Ireland. According to Ryanair website, (2006) it is also the biggest low fares airline in immensely in the most recent aircraft technologies. These have reduced the Carbon Dioxide emissions over the years. Currently it is a leader in the industry in matters of environmental efficiency. According to the American Marketing Association (2007), the typical definition of marketing is the process of creating offerings and communicating that they have value to clients.

Ryanair has adequately fulfilled this definition in many aspects:

  • The low fares, yet large-scale capacity has catered to the wishes of many clients. In fact, it is the ideal thought of an airline to have this quality.
  • On the other hand, it is also extremely oriented towards the environment. By doing this, it has tapped into the market that had remained underutilized.

SWOT analysis

Now one of the strengths of the organization is that it has a model that is low in cost. This helps to minimize on the losses that happen and maximizes the profits. The airline also makes use of secondary airports as well as a point-to-point service. This maximizes fuel efficiency. This is not to say that it does not have weaknesses. According to Milmo, (2010) the attractiveness of the prices of their tickets is not such an advantage. In times of economic crisis even if there is an increase in passenger traffic there will still be drop in overall profit.

This is not to say that there are not enormous opportunities caused by this. The large drop in passengers using the other airlines due to high-ticket prices has increased Ryanair’s market vastly.

So essentially, the main issues facing Ryanair are the profit margins. These have been reduced significantly by more than fifteen percent.

Performance of Ryanair passenger growth and load factor growth: FY06 to FY09

PEST analysis

Several factors have affected Ryanair politically. One of them is the integration that the EU has brought to the continent. The other is the way political instability in the Middle East has affected prices of fuel. Economically it does not look bright for the organization. The increasing ageing population has depleted the workforce. This is worse because of the fluctuation of the currencies in the region that poses business risks. The ageing population also poses the problem of reduced passengers. This is more of a social problem than an economic one. The technological factors like video and web conferencing will reduce the need for travel. Thus, less air travels. This is unacceptable for business.

SMART objectives

There are objectives Ryan air has made into priorities, but others have been important. The first one is to offer the cheapest air tickets in the entire region. This is of course a marketing approach. It also wants to increase the number of its destinations so that it has more destinations considering its competitors. This will increase the market base that it originally had to include untouched areas. This is crucial considering the forecast decrease of air passengers. Then finally yet importantly, it plans to ‘steal’ passengers from rival airlines like the British Airways. This is one of their biggest rivals. If it tops them in the market, then it will accomplish its’ goal. At the end of the day, the bottom line in the cooperate world is the survival for the fittest. This usually means that the one that lags behind usually drops out of the race. This happens when the company goes out of business.

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