Services marketing: Ryanair's case study

Résumé du document

"A service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything" (Kotler, Saunders, Armstrong & Wong, 2005). The service of the Airlines low-cost companies began in the 80's to follow up the the law which had abolish the airlines companies control. Airlines low-cost companies mean that the companies purpose the transport at the lowest possible price and a supplementary payment for all extra services.

In Europe, the most notable success about this "new «concept was the Irish company, Ryanair which came into this particular market in 1985 and the British company, Easy jet which was created in 1995. The typical model for an airline low-cost company is characterized by some different working which differs from passengers and Companies. In a first short time, we will present you the Ryanair company, then, we will do an analysis of Ryanair follow-up by its main marketing challenges and opportunities in the next five years. Finally, we will do some recommendations about Ryanair's marketing.

Extraits

[...] The main goal of Ryanair is to increase productivity. For that it shift a part of the production process to the customer (i.e. Booking online, seat's choice directly on board . ) c. Variability With a fleet of 300 Boeing and 1400 flights per day, it is difficult for Ryanair to assure their customers of the same quality. To make up for this potential variability of quality, Ryanair uses different ways to reduce the variability and standardise the quality: Set quality standards : one hand luggage per person on board (with limited size and weight) in the aim of allow each passenger to have some space to store it on the place provided for that purpose) Replace staff with machine : booking and registration online via Ryanair's website d. [...]

[...] Customer Service Overhaul Customers agree with Ryanair “tangible customer service” but the problem is more on its “intangible faces” so the company has to work on it in the way to improve it! (people) 7. Only online booking Ryanair booking's goal has to be only an agency online. Actually there 94% of booking reservations which are doing in the internet website but in the five years it must become 100%. It will allows Ryanair to cancel the call centers costs. [...]

[...] Services marketing: Ryanair's case study INTRODUCTION 4 THE RYANAIR COMPANY 5 The ‘low-costs' leader history: 5 The RYANAIR's services: 5 ANALYSIS OF RYANIAR 7 The Unique characteristics of services: How Ryanair faces to that? 7 Services Marketing Mix: p's) 9 CHALLENGES AND OPPORTUNITIES IN THE NEXT FIVE YEARS 13 RECOMMENDATIONS 14 REFERENCES 15 DIARY 16 INTRODUCTION A service is any activity or benefit that one party can offer to another which is essentially intangible and does not result in the ownership of anything (Kotler, Saunders, Armstrong & Wong, 2005) The service of the Airlines low-cost companies began in the 80's to follow up the the law which had abolish the airlines companies control. [...]

[...] We consider a route as a viable route when there are more than 32,000 passengers in a year. Ryanair also have to study the viable routes before introduce it. (product/service) 3. Develop Its Smaller Continental Operating Bases Ryanair has to develop others operating bases like Dublin, Hahn . because London is already saturated! (place and time) 4. Develop some routes into Central/Eastern Europe Eastern and Central Europe countries are considerate as the new up to date destinations for both tourists and business man. The fact is that Ryanair doesn't go to these places! [...]

[...] To do this, Ryanair has to be up to date in this particular niche market! We will intend to carry on applying some strategies for the foreseeable future. In the low-cost industry Airline, there is only the place for maximum two players. That's the reason why Ryanair has to stay at the top of this market in parallel with Easyjet. These two airline companies represent 88% of the airline low cost market in Europe. RECOMMENDATIONS To improve itself, Ryanair could: Increase the Frequency of existing Routes Ryanair has actually less routes than Easy jet so that means that if Ryanair increase the number of its routes it could bring more passengers so more benefits. [...]