-EasyJet was featured in Airline series broadcast on ITV which followed the airline's operations at London Luton and later at other bases. The segmentation of markets depends on various bases such as demographic, psychographic, behavioral and geographic. Market Segmentation – Classifying Customers. pound before tax in 2013 (easyJet, 2013), despite of the really low ticket price. concern about the price of the fight, due to the limited personal disposable income (PDI). Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Moreover, Reusable tickets, first come first served basis, seating in high density and single class cabin (Sager, 1998). The little enterprise tends to find out the segment it serves best, by the test and mistake of considering with customers and supplying goods more and more apt to its specific clientele. EasyJet had made prominence attempts to make their product pop out from its low cost airline competitors. Therefore, for easyJet, this particular price-sensitive short/ middle-haul passenger. Space Technology New York; Nov 18, 2002). “Faster” means cutting down the time of performance or delivery in the process of using or buying a product/service. The aim of this essay is to analysis the business model of easyJet by segmenting the, company's consumers as well as studying the market mix, especially the promotion strategies. Segmentation, targeting, positioning in the Marketing strategy of British Airways – BA uses the mix of demographic and Psychographic Segmentation strategies to Identify and determine the important characteristics of the market helping the company in … Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Easyjet Market Segmentation. EasyJet is the first carrier and it proud on it, when it charges its customers for even a cup of coffee (Sager, 1998). - Demographic: What is the age of the passengers? And by the end of 2020, it may get settle by 45%. 40287567 - International Marketing assignment.pdf, Low-cost air fares-- How ticket prices fall and rise.pdf, MKT 571 Week 3 Segmentation and Target Market Paper.doc, Starbucks Segmentation and Target Market Paper.docx, Nanyang Technological University • ECONOMICS MISC, Lahore College of Education • ECONOMICS 124536, Institute of Education Main Campus , Khairpur, Business & Hotel Management School • BA BS, Institute of Education Main Campus , Khairpur • ENGLISH CL 111122, Business & Hotel Management School • HMT 3800. Which parts of the marketing mix are done efficiently and which parts need some improvements How Easyjet has segmented its market for its major product and what is the marketing mix? It started its operation in 1995 with … Course Hero is not sponsored or endorsed by any college or university. Registered Data Controller No: Z1821391. EasyJet offers cheaper flights and “CHEAPER” in one of the big way a company can set apart its offering. All work is written to order. Market Segmentation Introduction The process of defining and subdividing a large homogenous market into clearly identifiable segments having similar needs, wants, or demand characteristics. Due to very low prices it’s very difficult to compete it on prices base. “Better” means that a company is offering outperforms its rivals’ offers; it usually engages an improvement of the existing products/ service in a minor way. 18 Oct 2018 7:18 am Now you’ve got the data. Easyjet PESTLE Analysis Political Factors Political factors reflect the political stability of the region where Easyjet is operating. Moreover, most of the people in this segment are short or middle-haul passengers and occupy, more nearly 82% of the total number in Europe from 2000 to 2004[ CITATION Key05 \l, 2052 ]. more passengers begin to choose LCCs instead of the national flag carriers. This study guide is a comprehensive discussion (along with many examples) of the key aspects of: market segmentation, segmentation bases, target markets, product positioning, and perceptual maps, as well as examples of market segmentation. Our academic experts are ready and waiting to assist with any writing project you may have. "Easyjet Segmentation" Essays and Research Papers . 151 - 160 of 500 ... Market segmentation Introduction Market segmentation is a marketing strategy that is one of steps goes into defining the selection of consumers who have common need and will assist consumers with products that satisfy their individual sets of needs and buying practices. Which opened the eyes of the other airline industries and they realized, that they don’t have any strong hold on the market shares compare to these low cost airline industries like easyJet. We've received widespread press coverage since 2003, Your UKEssays purchase is secure and we're rated 4.4/5 on reviews.co.uk. EasyJet is intended to be “simple” and trouble-free (easyGroup, 2008). For instance if easyJet has selected its target market and market spotting watchfully, then its marketing mix strategy, counting price will be fairly simple. European Countries Collaboration and good relationship making EU politically stable. Few companies are big enough to supply the needs of an entire … EasyJet has frozen its cost, by flying only one type of plans i.e. Most companies choose to use not just one but a combination of methods: 1.Demographic segmentation Demographics is the study of the make-up of the population. We're here to answer any questions you have about our services. demand for LCCs [ CITATION Mar02 \l 2052 ]. In that same year, EasyJet was employer to 15,518 people, of which the majority were male. EasyJet airlines fare differentiation has been the key to profitability. If the firm did not distinguish it is offering in any other than price, the competitor will soundly beat it. As a result easyJet can fly one passenger for 6.8 cent per mile (American 8.8 & United 9.6 CENT). EasyJet knows about this fact that’s why it does not compete on prices alone, rather it has one of the best on time flight records in the industry because it passes by the most crowded hubs. Discuss the activities that take place at each stage of the process. How would segmentation look like if you were Marketing manager @ Easyjet? It can offer additional flights to business travelers with busy timetable, for the same cause. Moreover, one could argue that UK Airways, who has lofty fixed cost and low productivity, was in fact the first victim of the low-cost carriers. Study for free with our range of university lectures! [ CITATION eas12 \l 2057 ] Widely regarded as the, model of the low-cost airlines (LCCs) and the saver of the once ailing European airline, industry[ CITATION Don99 \l 2057 ], easyJet built up with a core business concept to, eliminate every unnecessary cost, and thanks to all kinds of operational and marketing, characteristics based on this concept, such as only use one type of airplane, point-to-point, short-haul travel, no in-fight meals, the company is wining a huge profit with 478 million. “Newer” means developing the unique solutions that don’t exist from before, it usually involves higher risks than a simple improvement but also chance of higher gain. EasyJet always target short distance flyers, i.e. Companies who use different types of planes their maintenance cost is usually high. Facilities are all mutually same for all customers, which in turn helps easyJet management to work out the exact cost. it applies to satisfy the target consumers. Flying from minor airports and stay away from the major airport hubs, put easyJet on a side from the direct rivalry with other airlines. Emerging slowly but surely is a domestic industry that eventually could be dominated not by traditional hub-and-spoke airlines, such as United and Delta, but by low-cost carriers like easyJet. Thanks to it, theats are eliminated, opportunities are created. business class people. This preview shows page 1 - 3 out of 15 pages. Segmentation Marketing Segmentation Theory based on selling Oxygen bars 1) Demographic Consumer age, gender, income, occupation are considered to be the main factors for demographic segmentationOther factors like race, religion, nationality is not emphasized here because product usage will be less affected by those factors. Easy_Jets_Market_segmentation_and_market.docx - Easyjet\u2019s market segmentation and related marketing mix strategies Since established in 1995 easyJet, 1 out of 1 people found this document helpful, Easyjet’s market segmentation and related marketing, Since established in 1995, easyJet has experienced a rapid growth with more than 10% each, year on the company’s total revenue. In Value Pricing companies offer a high product for a reasonable low cost. The support of consumer is conditional on the ability of firm to exhibit its alignment with the society’s behavioral norms, ideology and moral standards (brown & Dacin, 1997; Carroll, 1999; Managing & Ferrell, 1999). Its objective is to design a marketing mix that precisely matches the of customers in the targeted segment. But in EasyJet’s case, only two basic of competitive advantage was used: cost leadership and differentiation. Unlike British Airways or any other high class Airlines, easyJet is a classless airline. - B2B (traveling for business) of B2C (traveling for holidays)? Demographic trends illustrate how the population is changing. also simultaneously attracting more passengers of both segments to travel with LCCs. The evolving use of STP; Segmentation, Targeting and Positioning follows the wish of companies to seek opportunities to differentiate their product offerings from those of their competitorsThe process begins with efforts to identify new segments and to target those that offer the most attractive product opportunities in which suitable position (and communication ) strategies can … Image: Wikimedia. Try our expert-verified textbook solutions with step-by-step explanations. The company must know about their goal and what they want to achieve with the product/service they offer to their clientele. It has been assumed that By 2017, the domestic market share of the “Big six” plus British Airlines will fall from 75% (2008) to 50%. Targeted segment 1: Price-sensitive short-haul travellers. By observing the past two years while most of the industries were suffering by the hard time of recession, Airline like easyJet was enjoying its maximum earnings. In addition, they must first identify and profile distinct groups of buyers who differ in their needs and preferences (Chapter 8 Class Presentation, Slide 2). Find answers and explanations to over 1.2 million textbook exercises. and tourism Task 3 (AO3) [pic] Overview: Market segmentation can be done in various ways. group is the company’s easyJet’s main target segment. They fly almost new planes and fuel-efficient (Airbus Press Department, 2006). 737; as a result it is able to eliminate the maintenance cost. Differentiation strategy. hence EasyJet groups its market into busi ness routes/ take-off times, ... Demographic segmentation is, toget her with geographic segmentati on, the oldest and easiest scheme used Short-haul roots and facilitating good customer service might help easyJet to be dominant over its new competitors. The low-cost airline sector currently ha… In 2012, the LCCs has occupied a quarter of the entire European airline traffic while the, figure of the traditional scheduled airline is 55%, which has declined nearly 5%[ CITATION, EUR13 \l 2052 ]. But data is useless unless acted upon! Copyright © 2003 - 2021 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. Free resources to assist you with your university studies! A remarkable, evidence of the raising competitiveness is the continue decreasing of the average price of, tickets on both leisure traveling and business traveling [ CITATION Mar12 \l 2057 ] , which. EasyJet STP EasyJet Segmentation Economy travelers mainly in Europe. The strong development of the LCCs market reflects the truth that more and. OPPORTUNITIES Government grants permission to purchase new Aircrafts. It is small a British airline, it has carved its niche in short-haul flights with low prices and no frills. These categories based on different perspectives are assisting the investors and the product manufacturer to target the market. Management. The competitive advantage of budget airlines is maintained by achieving low operating costs, increasing revenue and using new economy technologies such as the Internet to sell their product. In June 2005 easy lounges were introduced, even though passengers had to pay for that as well, but it resulted in the attraction of business travelers. 2.Targeting • And how would the target group look like? A top limit on the price that the company can charge for its offered product/services is set by Demand and the costs of the company sets the base. Despite of economic crises, it enjoyes the increasing cashflow and market share growth with its poor brand (easyJet, 2009b). Company Registration No: 4964706. Maximum one free child per room. (easyjet) Price is less so quality is not important. Segmentation in general engages significant market study and can therefore be expensive. EasyJet maintains a database of existing, new and frequent customers so that they can focus on giving customized services to one client at any given moment. *You can also browse our support articles here >. Demographic segmentation refers to market segmentation that segment or group individuals based on their religion, ... EasyJet is confident that its strategy of competitive advantage, efficient, low-cost model as well as the fact that EasyJet is a pan-European brand, will help to deliver sustainable growth in … However, due to the liberalization of the airline, industry, a great number of new companies are now entering the market which significantly, increases the competitiveness of the market[ CITATION Rig05 \l 2052 ]. - political: war? The company’s fleet size grew by 62 percent between 2011 and 2019, climbing to 331 by 2019. The firm can also create value by offering something that is Better, Newer and Faster. (Simplicity in pricing structures and convincing the customer that the airline is “doing one thing and doing it will” (Laura Ries President of Rise & Rise quoted in Nigam, 2008). Easyjet is a successful example of a European no-frills airline. Looking for a flexible role? Among all the LCCs, easyJet together with its strongest competitor Ryanair are dominating, the market. Unlike the relatively rich business class passengers, the latter segment has more. EasyJet provides a comfortable flight and friendly services, for the cost of almost one-third of its competitors, though one without frills. Psychographics look deeper and discover the motivations in a person’s life. Segmentation normally engages important market study and can therefore be costly. Even though several segmentation types exist, the psychographic segment prevails in this industry. This assignment focuses on a cheap, no frills, UK based Airline company called easyJet. It has been capable to keep its fares at a low level because, it operates one type of Aero plane (The 737), thus eliminating expenses of maintaining of different types of plane. If you need assistance with writing your essay, our professional essay writing service is here to help! It is powered by the YouGov Cube - our connected data vault which holds over 120,000 variables on 190,000 YouGov members. Finally a competitor may will usually find a lower-cost production site and offer an even cheaper version. Second, we discuss the marketing challenges facing Ryanair.Thirdly we analyse the options available to Ryanair based on its sustainable competitive advantages and SWOT analysis. EasyJet should emphasize in managing long term profitable relationships with the customers rather than short term relationships. Some of them could become shadows of their previous slaves. Companies that differentiate their offerings solely by cutting their costs and price may be making a mistake, for several reasons. Geographic segmentation is when a business divides its market on the basis of geography. In 2005, both company’s fight carried almost 70% of all the passengers carried by, all the LCCs[CITATION Min052 \l 2052 ]. Any company desires to charge a price that cover up its cost of production, distribution, and sales cost, including a fair give back for its hard work and risks (Gary Armstrong & Phillip Kotler, 2005). As mentioned earlier easyJet is hitting passengers who can drive to their distention, but rather than driving company’s offerings are such that they can easily fly their way. Info: 1637 words (7 pages) Essay Second the firm may cut the services to keep the price down, and this action may alienate buyers. EasyJet has adopted Value Pricing technique. It is performed predominantly in primary business with highly differentiated merchandise lines or assisting huge markets. And it offers strictly no frills, i.e. 01- making use of specific examples, outline the principles and processes of market segmentation, market targeting and market positioning. Accenture (Marketing Management textbook, p. 236). Easyjet’s market segmentation and related marketing mix strategies Since established in 1995, easyJet has experienced a rapid growth with more than 10% each year on the company’s total revenue. Segmentation Bases • Geographic – Catchment areas • Demographic – Age, gender, family size, life cycle, religion, income, occupation, education • Psychological – Personality, attitude, motivation, risk – Activities, Interests and Opinions (Wells et al, 1971) • Behaviouristic – Product … Government guidance and assistance available to travel and tourism businesses. EasyJet stands itself as a “fun” airline that breaks regulations but not promises. Secondly, they must understand that the major segmentation variables are geographic, demographic, psychographic, and behavioral (Chapter 8 Class Presentation, Slide 4). Color orange is becoming the synonymous of the firm easyJet, as it has become worlds most low-cost and useful airline (Alamdari and Fagan, 2005). It is small a British airline, it has carved its niche in short-haul flights with low prices and no frills. Easyjet does not offer a free food service on flights than more than two hours, which is seen as a weakness by Easyjet’s consumers. For instance easyJet operates between cities and internationally by offering point-to-point short flights. EasyJet airlines fare differentiation has been the key to profitability. easyJet holidays: Free Child Places on easyJet holidays: One free child place for every two full paying adults sharing accommodation is available on selected holidays departing between 1/4/22 and 31/10/22, where you see the ‘Free child place’ label, subject to availability. There are cost leadership, differentiation strategy and market segmentation strategy. It is the responsibility of the EasyJet to serve its customers the best services and products and in return should generate the profits. EasyJet is always keen on time and punctuality. This free study guide has been prepared to meet the information needs of university-level marketing students throughout the world. EasyJet is also one of the Airline industries that posts profits on a consistent basis. Do you have a 2:1 degree or higher? 02- Explain the new product development process from the inception of the product idea to the post launch evaluation. The service format does not correspond to a large demographic. “Question haunts industry as low-fare carriers taken hold of market share, and high costs, low productivity begin to squeeze the life out of some Airlines” (Aviation Week &. EasyJet Positioning Low cost carrier with no frills. EasyJet should take this in consideration that where it should respond by ceding niche-market or by competing ground low price to the new contestants. 1.0 Introduction. Thing that matters most for the business travelers is “time”, it facilitate its segment customers in cutting flight time by avoiding busy routes. Segmentation involves dividing population into groups according to certain characteristics, whereas targeting implies choosing specific groups identified as a result of segmentation to sell products. EasyJet Price/Pricing Strategy: Below is the pricing strategy in EasyJet marketing strategy: EasyJet is known for its low-cost competitive pricing. luggage or other belongings. They all operate on a similar business model to that of the highly successful USA southwest airlines. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Firstly “cheaper” products are often viewed as inferior in quality. By 2013, Edmund S. Virgin Airline will be the British largest UK Airline, and passing other emerging airlines easyJet will grow to be the third largest UK airline by 2020, depend on the degree of difference in growth rates of the two groups of carriers (Begley, 2002). - Geography - industry – which industry do we like to serve? Segmentation is the process breaking down a large market into smaller specific markets (Kotler & Keller, 2012). ers tend to rely on intuition and on traditional segmentation techniques based on socio-demographic variables. On 11th November 2006, The Times suggested that easyJet were successful in capturing the business market. It started its operation in 1995 with three Boeing 737 connecting three Taxes cities. Market segmentation is the research of breaking up general market into clientele subsets or segments, which’s in segment distributing similar characteristics and desires. EasyJet SWOT Analysis EasyJet Strengths Below are the Strengths in the SWOT Analysis of EasyJet: 1. easyJet each aircraft on average is 2.2 years old. Normally the leisure travellers can be classified into two different segments, which are the, business class leisure travellers and the economic class leisure travellers[ CITATION Tho08 \l, 2052 ]. EasyJet is intended to be “simple” and trouble-free (easyGroup, 2008). Critical Literature Review Based On easyJet Air Line Industry. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. Market segmentation leads to an efficient distribution of services to the right customers. Founded by the Cypriot Stelios Haji-Iaonnou in 1995, Eayjet gained a dominant market position over time thanks to its excellent marketing strategies. The demographic segmentation will require Easyjet Plc to divide market according to demographic characteristics, like- gender, age, income and ethnicity. No plagiarism, guaranteed! 1.1 Contents of this report: This report is made up of four main parts: first a general description of Ryanair in terms of its history, expansion, its competitors and its business model. Demographic data only tells us who the customer is, not why they might buy. EasyJet was established in 1995 by Stelios Haji-loannou and operates as a no ‘frills’ low-cost airline, aiming to under-cut its rivals, such as, BMI Baby, Ryanair, and FlyBe. VAT Registration No: 842417633. EasyJet Target Market Middle class / upper middle class. Soon after the company grow to 157 planes, a route network to 37 cities and annual returns of $2 billion. If Easyjet Plc chooses behavioural segmentation, then customers will be divided according to their buying pattern like usage frequency, benefits sought, usage occasions and brand loyalty. EasyJet’s Lis Blair is on a journey to move the brand beyond price with a new campaign just six months into the job and a long-term plan to balance creativity with greater use of data. Secondly easyJet do not offer its passengers any kind of free food, for example lunch, dinner or any snack, but only a bag of peanuts. So how do you uncover something that isn’t just data? A competitive industry, like the airline industry, uses this concept in order to eliminate service homogeneity. EasyJet and Its Market Segmentation Brief Introduction Of Easyjet & Market Segmentation Market segmentation is the research of splitting up an general market into clientele subsets or segments, whose in segment distributing alike characteristics and needs. Appointment of Ray Webster as Managing Director, easyJet floated on London stock exchange (shares six times oversubscribed), Online bookings reach 80% (highest proportion in the world), Stelios announces he will step down as Chairman, easyJet acquires GO (becomes largest low-cost airline in Europe with 81 routes), easyJet announces that it will grow aircraft capacity by 25% per year until 2004, easyJet exceeds £1 billion turnover figure for first time (fleet size = 44 aircraft), Ray Webster announces intention to retire as Managing Director, Figure 1: Milestone events in easyJet’s development over time. THE NEW SEGMENTATION AND MEDIA PLANNING PRODUCT FOR AGENCIES AND BRANDS Customers of EasyJet YouGov profiles is the new segmentation and media planning product for agencies and brands. How to use psychographic segmentation in your marketing. Published: 4th May 2017 in These expense sensitive travellers are the best target market segment for easyJet, and research, on leisure travellers’ price elasticity of airline tickets has also proved their increasing market. British Airways segmentation, targeting and positioning refer to ways in which the airline company identifies certain individuals among the general public to offer their service packages.
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