Marketing Plan for Ryanair

Ryanair

Marketing Plan

For Ryanair

Ranjeeta Teelockchand

9/4/2011

Marketing Plan for Ryanair

Table of contents

Table of Contents ....................................................................................................................1



1. Introduction........... .............................................................................................................4

1.1. Executive Summary................................................................................................4

1.2. Company Background............................................................................................4

1.3 Mission Statement..................................................................................................4

2. Marketing Audit...... .............................................................................................................5

2.1 MACRO ENVIRONMENTAL ANALYSIS......................................................................................5

2.1.1 Political Factors ...................................................................................................5

2.1.2 Economical Factors...............................................................................................6

2.1.3 Socio-cultural Factors..........................................................................................6

2.1.4 Technological Factors..........................................................................................7

2.1.5 Legal Factors........................................................................................................7

2.1.3 Environmental Factors.........................................................................................7

3. Industry Analysis.....................................................................................................................8

3.1Porters Five forces Fig..............................................................................................8

3.1.1 Threat of New Entrants........................................................................................8

3.1.2 Threat of Substitutes...........................................................................................9

3.1.3 Bargaining Power of Suppliers..............................................................................9

3.1.4 Bargaining Power of Suppliers..............................................................................9

3.1.5 Intensity of Rivalry................................................................................................9

4. Internal Market Audit....................................................................................................................11

Ranjeeta Teelockchand ID A4035296


4.1Operating Results...................................................................................................11

4.1.1 Financial Resources............................................................................................12

4.1.2 Human Resources...............................................................................................12

4.1.3 Intellectual Capital..............................................................................................12

5. Strategic Issues Analysis...................................................................................................................13

5.1Ansoff Growth Matrix.............................................................................................13

6. Marketing Mix Effectiveness.............................................................................................................14

6.1Product...................................................................................................................14

6.Price..........................................................................................................................14

6.3 Place......................................................................................................................14

6.4 Promotion.............................................................................................................14

6.5 People....................................................................................................................15

6.6 Physical Evidence..................................................................................................15

6.7 Process..................................................................................................................15

7. Marketing Structure and Systems.....................................................................................................16

7.1Value Chain Analysis...............................................................................................16

8. SWOT Analysis.............................................................................................................................17

8.1SWOT Analysis Table..............................................................................................17

9. Strategic Objectives..........................................................................................................................18

10. Core Strategy.............................................................................................................................18

10.1Segmentation.......................................................................................................18

10.1.1Demographic.....................................................................................................18

10.1.2 Pie Chart...........................................................................................................18

10.2 Targeting.............................................................................................................19



10.3 Market Positioning.............................................................................................20

10.3.1 Cost Leadership....................................................................................20

10.3.2 Differentiation......................................................................................20

10.3.3Focus Differentiation.............................................................................20

11. Marketing Mix Decision.................................................................................................................21

11.1Product............................................................................................................ .....21

11.2 Promotion...........................................................................................................21

11.3 Pricing..................................................................................................................21

12. Budget........................................................................................................................................21

13. Organisation and Implementation................................................................................................21

13.1 Airport Costs.......................................................................................................21

13.2 Fuel Charges........................................................................................................22

13.3 Deal with China...................................................................................................22

14. Control.....................................................................................................................................22

Recommendation.................................................................................................................................24

Conclusion....................................................................................................................................24

Reference and Bibliography ...................................................................................................25

Reference and Bibliography ...................................................................................................26



1.INTRODUCTION

1.1 Executive Summary

The objective of this report is to provide a marketing plan for Ryanair. It includes the steps for Ryanair to achieve its marketing goals and which will strengthen its position to be competitive in the European Airlines industry. This report is prepared based on its actual performance on its current situation in the market place that helps Ryanair to achieve its potential growth .

At present the European Budget airline industry is going through radical changes in growth and in competing with the co-competitors. This will pose a major threat to ryanair’s target in doubling its growth in 2012. Moreover, it has also expanded its service capacity and now faces the situation of understanding how the environment and demand will turn out in future.

Therefore a marketing plan has been developed whereby an analysis of the MACRO Environment (PESTLE) and MICRO Environment, ryanair marketing objectives, core strategy, marketing mix decisions, budget and control has been evaluated. Analytical tools such as PESTEL, SWOT, porter’s five forces, and value chain analysis have been used for that purpose.

1.2 Company background

Ryanair is Europe's largest airline, the largest low-cost carrier, and one of the world's largest airlines as measured by international passengers carried. Ryanair has its largest base at largest base at London Stansted Airport, and second-largest base at Dublin Airport. Ryanair currently operates a network covering over 40 bases and 1,100 routes (with over 1,300 daily departures) across 26 countries, connecting some 155 destinations. Ryanair operates a fleet of over 250 B737-800 aircraft, with a


http://www.centreforaviation.com/profiles/airports/dublin-airport-dub

http://www.centreforaviation.com/profiles/airports/london-stansted-airport-stn


large order backlog. Ryanair employs more than 8,000 people and expects traffic to grow to 73.5 million passengers in fiscal year.

Source: http://www.centreforaviation.com/profiles/airlines/ryanair-fr

1.3 Mission Statement

Ryanair will become Europe’s most profitable lowest cost airline by rolling out our proven ‘low-fare-no-frills’ service in all markets in which we operate, to the benefit of our passengers, people and shareholders.

Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fare service.’ Ryanair’s goal is to provide a no frills service with low fares designed to stimulate demand.

Source :http://www.economist.com/node/9681074?story_id=9681074

2. MARKETING AUDIT

The audit is undertaken to highlight problem areas and identify opportunities with a view to recommending a plan of action to improve the overall marketing performance for your company.

2.1 MACRO ENVIRONMENTAL ANALYSIS

The Macro-environment describes all factors which influence the company as a whole but are out of their direct control. The PESTEL framework which incorporates political, economical, social, technological, environmental and legal are being used to analyse the environment of the company.

2.1.1 Political Factors

a) Liberalization of the EU Air Transportation Market

The deregulation of the European flight market in 1997 has resulted great opportunities for Ryaniar as it has reduced the barriers to entry in the airline market.

http://www.ryanair.com/doc/investor/EmployeeShareOption.pdf

b) Government intervention

The Irish Government might reject the opportunities for Ryanair for instance in the takeover bid of rival Aer Lingus. “The Irish government has previously opposed a Ryanair takeover of Aer Lingus, a position backed by the European Commission which blocked the most recent hostile bid in 2008 arguing it would lead to higher fares.”

http://www.travelweekly.co.uk/articles/2011/05/04/36996/ryanair+ready+to+take+control+of+aer+lingus.html





http://www.centreforaviation.com/profiles/airlines/ryanair-fr


c) Airport Charges

An increase in airport fees as imposed by government will result to a decrease in the volume of passengers and thus a fall in the revenue of ryanair. For instance report from the telegraph:

“Ryanair will carry two million fewer British passengers this winter, blaming Air Passenger Duty (APD) and high airport charges.

http://www.telegraph.co.uk/travel/travelnews/7860601/Ryanair-attacks-Government-over-APD-and-airport-fees.html

d) Threats of terrorist attack

The 11th September 2001 terrorist attack has resulted in “panic “to fly. This has resulted in global dangers heavily affect the airline industry. Therefore, more security by airlines are required as more terror attacks are predicted.

.

2.1.2 Economical Factors

a) Global Recession

The ongoing global recession has cause great impact in the consumer spending and their disposable income. It has made customers purchasing power weaker and thus resulting in a fall on the number of travellers in general. Despite of economic downturn, ryanair has delivered an increase in profits of 26%, as most customers prefer to take low cost airline instead of luxury airline.

http://www.ryanair.com/doc/investor/2011/q4_2011_doc.pdf

b) Fuel Prices

The skyrocketing price of fuel could "devastate" the airline industry and hurt the economy. According to Ryanair, “Due to higher oil prices we expect operating cost per passenger to rise by 13% in FY12.”

c) Exchange Rates

Exchange rates are volatile by nature, and it makes international trade and investment decisions more difficult.

http://internationalecon.com/Finance/Fch110/F110-1.php



http://money.cnn.com/2008/06/23/news/economy/airlines/





2.1.3 Socio-cultural Factors

a)Entrance of EU Members.

The entrance of new countries in the European Union has resulted in major social changes. The migrant workers are likely to travel home regularly on cheap tickets much like relying Ryanair low cost airlines.

b) Travelling life style

The increase in leisure and holiday passengers who prefer to travel by air rather than by trains has resulted in a rapid growth in airline industry in general. Its an opportunity for ryanair.

2.1.4 Technological Factors

a) Online Ticket Sale

The use of internet can link airlines with customers, has eliminated the intermediary like travel agents to some extent, passengers can do their online booking. It is a cost saving for the airline, reduction in commission cost to travel agents. On top of that the airline can have direct feedback about their service via online survey.

b) Video conferencing

The evolution of video conferencing is a major threat for airline industry. The necessity for businessman to travel around the globe to meet clients and partners has been eliminated to some extent with the use of video conferencing and VOIP which helps them conference with their clients while at home.

2.1.5 Legal Factors

a)Handling charge case

Ryanair loses handling charge case, German court ruling challenges the airline's high fees for paying by debit or credit card.

http://www.telegraph.co.uk/travel/travelnews/5796025/Ryanair-loses-handling-charges-case.html

b) Unfair dismissal claim

Fomer Ryanir pilot Captain James Anderson, 45, claims unfair dismissal and he is taking his case to employment tribunal alleging he was sacked for handing out a union recruitment leaflet. This might result in bad reputation and high compensation if the case proves to be against Ryanair.

http://www.legal-island.com/news/item/752/former-ryanair-pilot-claims-unfair-dismissal/



http://www.telegraph.co.uk/travel/travelnews/5796025/Ryanair-loses-handling-charges-case.html


2.1.6 Environmental Factors

a)Aircraft Noise Regulations

Ryanair is subject to international, national, and in some cases, local noise regulations standards. EU and Irish regulations require that all ryanair aircraft comply with stage 3 noise requirements since April 2002. All of ryanair’s aircraft currently comply with these regulations.

http://www.ryanair.com/en/news/gen-en-201204-3

b) Green Airline

The recent Brighter Planet survey of the world’s 20 largest carriers confirmed that Ryanair was the cleanest greenest airline in the world and had the lowest CO2 emissions per passenger mile.

http://news.bbc.co.uk/1/hi/business/6708075.stm

3. INDUSTRY ANALYSIS

3 . 1 P o r t e r ' s F i v e F o r c e s M o d e l : a n a l y s i n g i n d u s t r y s t r u c t u r e

The most influential analytical model for assessing the nature of competition in an industry is Michael Porter's Five Forces Model, which is described below:

Fig 1: Porters five forces





3.1.1Threat of New Entrants - Moderate

New entrants to an industry can raise the level of competition, thereby reducing its attractiveness. The threat of new entrants largely depends on the barriers to entry,

Key barriers to entry for Ryanair :

•Deregulation of airline industry- since the airline industry was deregulated in 1997,this has removed the barriers to entry to new and different competitors.

•Low price – Ryanair provide low price strategy, making it unaffordable for new entrants to provide services at that price.

• High capital investment - Flying around the European boundaries requires extremely high capital investment, thereby discourage new entrants.

3.1.2 Threat of Substitutes - low

The presence of substitute products can lower industry attractiveness and profitability because they limit price levels.

In ryanair case, the close substitute are: easyjet and Airlingus, they present the above threats.

Other modes of transport, e.g. Eurostar, TGV, Eurolines, Ferries, Cars etc

3.1.3 Bargaining Power of Suppliers - low

• Boeing and Airbus are Ryan air’s main suppliers; any changes in their strategy will affect Ryanair strategy.

• Switching costs –In case, Ryanair will switch from one supplier to the other, it would be result in high investment in all mechanics and pilots training.

•Fuel cost- The fuel price is controlled by world trade and the middle east countries. Price of aviation fuel is directly related to the cost of oil and Ryan air controls these through hedging.

• Regional Airports like Stanstead and Luton airport in UK have little bargaining power over Ryanair as they are heavily dependent on one airline.

3.1.4 Bargaining Power of Buyers - High

Buyers are the people / organisations who create demand in an industry. The bargaining power of customers seems to be very high due to:

• Customers are price sensitive – they quickly react to increase in fare prices. Besides of Ryanair’s cost escalates, it manages to keep its low fare strategy.



• Switching cost- switching to another airline is relatively simple, is not related to high costs and customers are not brand loyal to ryanair. This can be done by simply clicking on the rivals website. Since, airlines sell their tickets via internet, this means that any price discrepancies can compare for much better deals from competitors.

3.1.5 Intensity of Rivalry - High

The intensity of rivalry between competitors in an industry will depend on:

• The structure of competition - for example, rivalry is more intense where there are many small or equally sized competitors; rivalry is less when an industry has a clear market leader. The LCC market is highly competitive, these competitors compete based on price although Ryanair is the market leader.

• The structure of industry costs - for example, industries with high fixed costs encourage competitors to fill unused capacity by price cutting. Most cost advantages can be copied immediately.

• Exit barriers - when barriers to leaving an industry are high (e.g. the cost of closing down factories) - then competitors tend to exhibit greater rivalry. However, Ryanair had been selling off the old planes and equipement to industry players, this make them to be competitive in the market.

http://tutor2u.net/business/strategy/porter_five_forces.htm




4 INTERNAL MARKETING AUDIT

This internal audit takes a close examination the current business situation, how profitable it is, and how this may affect your marketing effectiveness and marketing mix.

4.1Operating Results

The types of resources that you will consider include

Fig 2: Operating elements ryanair

The physical resource for ryanair is it operates a fleet of 250 new Boeing 737-800 aircraft with firm orders for a further 64 new aircraft.

http://www.ryanair.com/en/about


RESOURCES

PHYSICAL

FINANCIAL

HUMANRESOURCES

INTELLECTUAL CAPITAL



4.1.1 Financial Resources

Ryanair Quarter 1 2011, operating results is as follows:

SUMMARY OF Q1 2011 RESULTS (IFRS) - IN EUROS

Q1 RESULTS Jun-10 Jun-11 % CHANGE

Passengers 18.0 M 21.3 M ↑18%

Revenue €896.8M €1155.4 M ↑29%

Profit/(Loss) after tax €138.5M €139.3M ↑1%

Adjusted Basic EPS 9.36 9.35 0%

The 18% traffic growth, led to a 29% increase in revenues, significantly, higher revenue were largely used to offset higher operating costs and the increase in fuel costs of 49%.Despite of higher fuel costs, ryanair recorded a profit after tax of €139m. Ancilary sales grew 22% to €248M , somewhat faster than traffic, and amounted to 21% of total revenues. Ryanair new route bases are performing well. A combination of recession and competitor capacity cuts continues to create growth opportunities across Europe as airports aggressively compete to attract Ryanair.


4.1.2 Human Resources

Ryanair started its operation with 25 staff, today the number of staff has grown up to 8896 (History of Ryanair 2010)

4.1.3 Intellectual capital




The highest percentage of ELFA is still being shared by Ryanair. This is because of the senior management team of the company Michael O’Leary chief executive who has great knowledge and experience of the aviation field. Captain Ray Conway was appointed as chief pilot in June 2002, he worked in Irish Air corps for 14 years.

5. Strategic issues analysis

Ansoff’s product/market growth matrix suggests that a business’ attempts to grow depend on whether it markets new or existing products in new or existing markets.

Ryanair is classified to be the Market penetration grid as the business focuses on selling existing products into existing markets. It has been successful in achieving and maintaining the following main objectives of market penetration.

Increase in market share of current products through competitive pricing strategies, advertising and sales promotion.

5.1 Fig 3: Growth Matrix



6. Marketing Mix Effectiveness

6.1 Product

Ryanair operates a fleet of 250 new Boeing 737-800 aircraft with firm orders for a further 64 new aircrafts. Ryanair get rid of its old aircraft and replacing them with new Boeing 737-800 aircraft, which is much more fuel t and CO2 emission efficient. It offers 300 routes across 23 countries, and have 12 main hubs, throughout Europe.

However, Ryanair has been criticised for misleading adverts and inconveniences. For instance, they usually don’t fly to the major airports, they operates from small airports which is far away from the city. Ryannair claimed to fly to Frankurt, while they were actually flying to Frankfurt Hann, which is over hundred kilometres far away from the center of Frankfurt.

6.2 Price

Ryanair offers the lowest price available for airline ticket in Europe. Ryannair uses differential pricing policy, which means that off-peak traveling and booking in advance makes a ticket cheaper. Furthermore, it provides a discount online booking. Ryanair adopts its prices to its direct competitors to pursue the aim always to have at least 20% lower fares.

Ryanair is able to offer the best price because they avoid some of the high maintenance costs such as reclining seats, window blinds and seat pockets.

6.3 Place

In January 2000, Ryanair launches Europe's largest booking website - www.ryanair.com, Which is the only way to book tickets with them, resulting in saving of agent commission of 15%. Ryanair is based in Stanstead in Essex. It is much more cheaper to fly from stanstead rather than heathrow or Gatwick.

6.4 Promotion


http://www.ryanair.com/


Ryanair uses various promotional tools such as advertisement, sales promotion, direct marketing, and public relation.

Advertisement consists of newspaper, TV, magazines, internet, posters , bill boards.

Sales promotion: use of their own website, they offer low fare as low as pens for each flight.

Direct marketing: people can sign up for ryannair sale alerts, where they will get regular emails about any more cheaper deal. Ryanair does not employ an advertisement agency, they do their advertisement themselves and had been criticised for being offensive.

6.5 People

Pilots are recruited when they are young pilot cadets. They are provided with early promotion if they are efficient and hard worker.

However, cabin crews have to pay for their own uniforms; they have to bear their own training cost. They are not allowed to join the trade unions.

6.6 Physical Evidence

Planes are the most expensive asset of the airline industry, ryanair managed to enter in a bid to get planes for a quite cheaper price. They bought planes at a big discount, when other airlines could not afford to buy them for example after 11 th September 2011 tragedy.

6.7 Process There is no check in, passenger simply supply their reference number.Passenger cannot have their preferred seat, it is fisrt come, first serve.



7. Marketing Structures and Systems

The resource, capacity, marketing structure and systems is demonstrated through the value chain analysis.

7.1 Fig 4: Value Chain Analysis

The value chain of ryanair analyses activities and business process to add value to its customers. These are activities that are performed internally within the organisation.

The primary activities consist of inbound logistics, operations, marketing, outbound logistics and services. The secondary activities are procurement, Human resources, Finance, and technological development. Ryanair follows cost leadership approach through which it reduces its costs of in all activities thereby charging low fares.



8. SWOT ANALYSIS

8.1 The following table 1 shows the SWOT analysis for Ryanair

STRENGH WEAKNESSES

● Price, cost and market leader. ●Increasing cost

●Innovativecost reduction. ●Unstable customer and staff

●Strong public image and brand. ●Reports of unethical behaviour

●Large market share resulting in economies of scale ●No room for stretching legs on plane.

●Punctuality & reliability ●Risk of hedging on fuel price.

●strong leadership- micheal o leary ●Customer perception of low quality

●Establishes routes anad networks. ●No main airports.

●Ryanair own travel website

●First mover advantage `

●Range of ancilairy services

OPPORTUNITIES

●Moving into long haul flights ●Intensive competition.

●Cost reduction through technology. ●Trade Union

●EU expansion ●Substitute mode of transport-Train,TGV,eurostar

coaches

●Growing tourism indusrty ●Uncertainty of rise in fuel cost

●Availability of fuel efficient planes ●Terrorist attacks

●Cost cutting policy of business ●Ash clouds. Sars.

●Merging with other short haul flights-Airlingus ●Court cases-pilot allegation on Ryanir.

●Enforcemant of anti-trust laws ●Less security at airports.

●Misleading advertisments.



9. Strategic Objectives

Ryanair aims to have the lowest fares of any European airline without making concessions to their business model (low fare and differentiation strategy), uphold a high level of growth, to surpass other carriers in terms of service quality and continual application of current strategies for the foreseeable future (Alle & Schmitz, 2004).

10. Core strategy

Market segmentation, targeting and positioning are the key successful marketing campaign.

10.1Segmentation

According to CIM (1994) “Market segmentation is subdividing the market into distinct and increasingly homogenous subgroups of customers whereby any subgroup can conceivably be selected as a target market that have similar needs, wants and characteristics to be met with a distinct marketing mix”.

The major segmentation variables are geographic, demographic, psychographic and behavioural segments. Ryanair's target market is segmented into distinctive groups on the bases of demographic, psychographic and demographic.

10.1.1 Demographic

In Demographic segmentation the market is divided into groups on the basis of variables such as age, family size, gender, income, nationality, social class, occupation and generation. Ryanair ‘s surveys shows: 40% of passengers are travelling on leisure and 60% of passengers are travelling on business. 73% of passengers are educated to college or university degree level and 47 million of these passengers are from social class ABC1



Passenger demographics based on age group represented in fig 5:

31%

49%

14%

6%

Age

18-2425-3435-44over 45

Source: http://www.ryanair.com/doc/advertise/OverheadLocker.pdf

10.1.2 Pie Chart demographic-age

10.1.3 Geographic segmentation

Geographical segmentation calls for dividing the market into different geographical units such as nations, states, regions and cities. Ryanair operates throughout the European regions across 27 countries, connecting 160 destinations.

10.2 Targeting


http://www.ryanair.com/doc/advertise/OverheadLocker.pdf


Once the firm has identified its market-segment opportunities, it has to decide how many and which ones to target. According to the information by “The Aeropanel – Ryanair intend carrying over 52.5 million passengers the next 12 months.

10.3 Market positioning

Positioning is the act of designing the company’s offering and image to occupy a distinctive place in the minds of the target market.

Porters generic strategies can be applied to Ryanair as a source of competitive advantage.

10.3.1Cost Leadership

Ryanair is the cost leadership providing low cost, no-frills service. Ryanair which fares are sold at average industry prices to earn a profit higher than its competitors and targets a broad market.



10.3.2 Differentiation is for the development of a product or service that offers special attributes that customers’ value. In the case of Ryanair, differentiation can be low-cost focused, that is, concentrate flights in Europe region only.

10.3.3Focus-differentiation strategy is aimed at a segment of the market for a product rather than at the whole market or many markets (Campbell, 2002). In the case of Ryanair, these three generic strategies had been utilised. First, the company offers the lowest cost of fare than its competitors in the airline. On the other hand, Ryanair has also become a focuser because it concentrated on a narrow customer segment which include Irish and UK business people or travellers who could not afford to fly major airlines.

11 MARKETING MIX DECISIONS

11.1 Product

Europe's largest low-cost airline Ryanair signed an agreement with Chinese aircraft manufacturer COMAC on Tuesday to consult on the development of a new narrow-bodied aircraft that it said was a potential alternative to new Boeing planes. This decision prevents ryanair to be dependent on only one supplier but on the other hand the company should consider factors such as durability, quality, innovation and price quotation which should be far more better than Boeing Company in this decision.

http://news.airwise.com/story/view/1308657700.html

11.2 Promotion

Ryanair advertise its products through its own website. On top of that the company is in partnership with other companies to advertise their products. Recent partnership with :

“CEWE PHOTOBOOKS advertised on all Ryanair boarding cards, and provide every Ryanair passenger with discounts on CEWE PHOTOBOOKS”

http://www.ryanair.com/en/news/ryanair-and-cewe-develop-advertising-partnership

11.3 Pricing Ryanair will continuously offer the lowest available prices to all passengers on all route it operates.

12. Budget

Ryanair has invested in technology, PR and advertising to achieve a very strong brand presence over a short period of time. The company is spending £900, 000 on








press advertising, radio adverts cost £170.811 and TV advertising about £71,916.

http://www.mediaweek.co.uk

13. Organisation, Implementation and Control

Ryanair has missed expectations on revenue for this quarter due to 50% increase in cost and fuel prices.

Actions to be taken against cost items.

13.1Airport Costs

Mr O’Leary confirmed Ryanair plans to launch legal action against BAA, the UK’s largest airport operator and the owner of London Stasted, with the LCC seeking to recover “substantial overcharges” it suffered due to BAA’s “monopolistic” control of airports in southern England.

13.2 Fuel Charges

Ryanair said fuel prices remain “stubbornly high”, trading at USD118 per barrel. The LCC is 90% hedged at USD860 per tonne (USD86 per barrel), which is 18% more than 1Q2010. The LCC has taken advantage of recent price falls to increase its hedge book to 20% of 1Q2013 at an average price of USD1035 per tonnes (USD103 per barrel).

13.3 Deal with china for new planes

Ryanair stated it would consider being the international launch customer for the C919. Mr O’Leary plans to break the Airbus-Boeing duopoly on the commercial aircraft market. Ryanair, would be designed to carry up to 200 passengers and should be available from 2018 onwards.

14. Control

Ryanair left its guidance unchanged for the remainder of the fiscal year.


http://www.centreforaviation.com/profiles/suppliers/boeing

http://www.centreforaviation.com/profiles/suppliers/airbus

http://www.centreforaviation.com/profiles/countries/united-kingdom

http://www.centreforaviation.com/profiles/countries/united-kingdom

http://www.centreforaviation.com/profiles/airport-operators-investors/baa-baa-funding-ltd

http://www.mediaweek.co.uk/


Mr O’Leary said there might be some flexibility in this plan, depending on oil prices over the period and wider economic conditions.

Cutting airport costs-“Ryanair has done deals at a number of airports across Europe for very a cheap or in some cases, no parking fees those aircraft for the winter,”

Mr O’Leary stated. “And I think well, we'll have to cut back on staffing a bit. It's absolutely the right thing to do this winter to cut back very meaningfully when oil is so expensive.”

Operating costs per passenger for the year are expected to rise 13% due to higher oil prices. Ryanair maintained its guidance of a full-year net profit after tax of EUR400 million, similar to its FY2011 result.

http://www.centreforaviation.com/analysis/ryanair

Recomendation

Regarding environmental analysis, Ryanair is operating in a highly uncertain environment. Defensive measures have to be planned against government intervention, airport charges and misleading critics over the company.

From industry analysis, ryanair should concentrate on direct competitors activities and strategies like easyjey and Airlingus. However indirect competitions can results through other modes of transport.

Looking upon Internal analysis, it is recommended that ryananir to build its brand image and its strategic low cost provision.

Conclusion

The Report has indentified the factors of internal and external industry audit that affect ryanair’s performance. This report has indentified the external factors-Politilcal, Economical, social, technological and social elements which are the potential factors for the success of the company.

This report analyses internal aspects such as the SWOT analysis, the business core strategy. Finally, based on the analysis appropriate recommendations have been suggested on which Ryanair has to execute towards strategic management in future.




Reference and Bibliography


http://www.economist.com/node/9681074?story_id=9681074


http://www.travelweekly.co.uk/articles/2011/05

http://www.telegraph.co.uk/travel/travelnews/

http://www.ryanair.com/doc/investor/2011


http://www.telegraph.co.uk/travel/travelnews












http://www.ryanairlife.com/index.php?option=com_content&view=article&id=50&Itemid=72

Philip Kotler marketing management

CIM Marketing management( Dec 2004)

Joseph P Guiltinan, Gordon paul marketing manangement























http://www.economist.com/node/9681074?story_id=9681074



http://www.telegraph.co.uk/travel/travelnews/
















Note: Assignment is nearly 4000 words, the words has count the table of contents aswell



















Marketing Plan for Ryanair

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