Ryanair - Brand Audit

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Transcript of Ryanair - Brand Audit

PowerPoint Presentation

RYANAIR BRAND ADUIT

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ILIR GASHI (W1521232)MAXWIN YEO (W1496949)JOSHUA PEACE (W1581062)YEN NGUYEN (W1512604)1

[INTRODUCE OURSELVES]

Hi, my name is Joshua, I am your pilot in todays journey. My name is Maxwin, I am your co-pilotMy name is Ilir, I am your StewardAnd my name is Yen, I am your stewardess

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AgendaBrand OverviewBrand Value PropositionCurrent Brand Communications AuditSummary & Conclusions14

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RecommendationsBrand Overview

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Brand Value Proposition

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Current Brand Communications Audit

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Product Category Analysis

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Conclusion & SWOT

[ILIR]

Our journey will approximately last 12 minutes and we will be taking an holistic approach to the Ryanair brand by starting with the recommendations, to which we then prove the conjectures and link back throughout the presentation. We then end with the conclusion and SWOT analysis which will evaluate the Ryanair brand and its opportunities to improve.3

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Recommendations

Short TermImprove digital footprint to get the brand message out thereMedium TermImprove employee relations to become brand ambassadorsLong TermIncrease fleet size and destinations to maintain low cost brand equity

[JOSH] thanks for flying with us, Before we take off, I would to remind everyone to fasten their seat belts, put your seats in the upright position, stow.. up straight and . Fire exists are here, there and here. Please get your boarding passes ready and read the safety instructions provided. Thank you and enjoy your flight!

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SHORT TERM GOALimprove their digital footprint (website and app) and use social media to support the brand make it consistent with visual quality and get the brand message out there in the form of customer reviews and experiences.

MEDIUM TERM GOALimprove relations with its staff to get them to become brand ambassadors by retraining employees and get the internal systems working correctly

LONG TERM GOALIncrease fleet size. Consider flying to new and central locations in Europe and also enter growing markets (long-haul flights) into Asia, the Middle East and Africa. We need lots of customer to remain inexpensive which is the main point of our Brand Image.5

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#1 RankedAirline for growth in Europe (2015)About us

OUR DESTINATIONS

74 +5% (2014)Bases in Europe

100M +11% (2014)Passengers in 2015

1,600 +11% (2014)Daily Routes

31 +2% (2014)Connected Countries

315 +21% (2014)New Boeing aircrafts

185 +4% (2014)Airport Destinations

10,500 +3% (2014)Skilled Professionals

[ILIR]

Ryanair is Europe's largest low-fare short-haul airline, which is headquartered in Ireland. This is a public listed company who trade in Dublin, London and New York stock exchange stocks. Our mission statement is committed to low cost airfares that aims to generate increased passenger traffic while maintaining a continuous focus on cost commitment and operation efficiencies.

Our destinations, we travel to over 185 locations in 31 countries carrying over 100 million passengers in 2015.

This has made us the number 1 ranked airline for growth in Europe in 2015. 7

Our Brand Owning Organisation

Ryanairs owning culture is based on a highly centralised power base centralising around O'Leary as he drives the organisation from a top down structure (Creaton, 2004).

Decision making is very specific and controlled as one particular function at the centre of Ryanair (Creaton, 2004). Board may not be able to challenge the CEO, and CEOs methods may be involved in group think (Janis, 1982).Figure 1. Power Culture (Harrison, 1993).

[ILIR]

Michael O'Leary is current CEO of Ryanair and has been since 1988. During his time, he has shaped Ryanairs owning culture which is now based on a highly centralised power base; centralising around O'Leary as he drives the organisation from a top down perspective (Creaton, 2004). As shown in Figure 1, the structure of the organisation has been kept flat to ensure that is lean and agile in all aspects.

Because of this, decision making is very specific and controlled as one particular function at the centre of Ryanair. The challenge that the organisation therefore faces is that all the CEOs force of character may take them into an incorrect direction as there is no input from other personnel (Creaton, 2004). 8

2015 Net Sales

By Business SegmentBy Geographic RegionBy Market Maturity

Car rentalsTicketsAncillaryTaxHotel

SpainBelgiumGermanyUK/IrelandIceland

Primary AirportsSecondary Airports

NET SALES ( millions)OPERATING CASH FLOW ( millions)As you can see, Ryanair has had a 66% increase in profit after tax to 411,110 million in 2015. This strong performance was driven by an 11% increase in customers, a 5% increase in load factor which rose by 88%, and a decrease in costs. Our operating profits reached into 1,208 million which was an 33% increase in previous years.

[ILIR]

Despite this, Ryanairs financial has been constantly increasing. As you can see from the figures above, Ancillary revenue and hotel rentals accounts for over 60% of the profit from passengers, so ancillary is extremely important for Ryanair as they dont operate any cargo so most of the revenue comes from passenger flights(Sarah, 2013).

By geographic region, most of the sales for Ryanair are located in the Scandinavian and Germanic routes, with Spanish and Portuguese flights close behind. In terms of the market maturity, Ryanairs profits from flying to secondary airports provide them more growth and stability than primary airports, as over 61% of the profits come from secondary airports.

Moving onto our recent performance, as you can see, Ryanair has had a 66% increase in profit after tax to 411,110 million in 2015. This strong performance was driven by an 11% increase in customers, a 5% increase in load factor which rose by 88%, and a decrease in costs. Our operating profits reached into 1,208 million which was an 33% increase in previous years. 9

1985: Ryanair founded and launched 2 routes1987: First Jet used1988: Restructuring and introduction of low cost model1995: Largest Irish airline, overtaking Air Lingus and BA2000: Launched online website and booking2007: Acquisition/merger with Aer Lingus failed2013: New Branding and Marketing Push

2009: Reports first annual loss in 20 years2003: Simplification of Logo and branding design2004: Expansion of EU and new routes launchedOur Brand History

[ILIR]

Since its establishment in 1985, founders Christopher Ryan, Liam Longergan and Tony Ryan has grown Ryanair from being a small airline flying the short journey from Waterford (South East of Ireland) to London Gatwick into one of largest carriers in Europe (Harteveldt, 2012).

But it has not always been easy. Back in the late 1980s, Ryanair was very much driven by its customer service - offering customers free food and much generosity, but the airline was losing millions in profit (Macalister, 2016). In 1988, today's CEO Michael O'Leary was appointed to rescue the brand (Mangla, 2015) and between 1990 and 2010 made significant changes to the business to reduce costs and get rid of any unwanted space. 10

Our New Branding Push

Figure 2 Ryanairs brand logo history (2016).Figure 3. Old Ryanair logo, 2001 - 2012Figure 4. New Ryanair logo, 2013 - current

[ILIR]

The period of simplification during Michael OLeary presence as CEO can be reflected through the changes in the Ryanair Logos between 1987 and 2013, as shown. The emblem was removed and the logo simplified to symbolise Ryanair's new values of being low fare, simple and easy to remember.

As mentioned, in 2013 Ryanair updated its brand logo and re-included its emblem which was the start of a new marketing and branding push that wanted to rediscover its past and clarity. This new current logo has become a new part of the visual identity of Ryanair which symbolises "Efficiency, Innovation and Transparency by the harp shape logo and the clean white letters, which directly influences the company's new visual identity of purity. Creatively, this was achieved by focusing on the visuals of a class - a symbol of transparently, honesty and purity which is being used across all branding and marketing efforts as will be discussed in the current brands communications audit.

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Successful brands develop a very clear sense of who they are and what they stand for and then project that identity so intensely to the point where, like a lighthouse, consumers notice you (and know where you stand) even if theyre not looking for you (Morgan, 2004).

[ILIR]

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CompanyMarket

What are Ryanair doing to build brand equity?How is that identity then seen in the eyes of the consumer?

[ILIR]

Now this regard, brand image is not only about what the company is doing to build brand equity but it also is how that individual brand is seen in the market which then translates into brand image. 14

SEGMENTATIONTARGETING

Distance: Short Haul vs. Long Haul flights.Psychographics: Lifestyles (Leisure/family vs. Business).Intentions: Private purpose, small or starting business.Income: Social class and Middle class.Age: 15 64.Leisure: Price sensitive, seat only product; point-to-point, secondary airports, punctuality and reliability.Business: Efficient and more options, e.g. seat allocat