Marketing strategy: Case study of Easy Mobile

Résumé du document

Throughout the years, the Easy Group strategy kept a clear readability built around some corner-stones principles: a no-frills/low-cost approach, an identifiable and recognizable simple communication strategy mainly focused on price and entertainment, constant expansion, development of new strategic business units in daily/close to the customers market, with a core focus on travelers. In terms of management, the Easy Group also adopted a consistent and durable stance in minimizing its operating administrative fees and in applying for the newly created Strategic Business Units the management framework that brought success to the previously settled business. Eventually, the Easy Group intended at each developing step to lever its expansion by using the experience, the drawbacks and the success models identified for previous low-cost businesses. All in all, the strategic consistency is to be found in a clear managerial desire to expand as far as possible the no-frills concept to every profitable market – which here means large-sized since profitability comes from size for low-cost companies -as the more numerous the customers are, the more diluted the fixed costs are. Another convergence is to be found in the stable and energetic presence of President Stelios who has now retired.

The first business the Easy Group entered was the low-cost air traveling. In 1995, Stelios started Easy Jet with regular flights between Luton Airport and Scotland. In 1996, he opened International routes to Nice, Amsterdam and Barcelona. In 1997, he transferred his entire selling platform to www.easyjet.com.

Extraits

[...] For many customers price is the most important marketing mix variable and most of the customers are technologically pragmatic asking for simple, clear devices with efficient, visible features not for over-priced, vague, useless and unused services. All in all, diversification is suitable as long as it is managed through synergies, standardization, and equalization at each development level. Bibliography - La folie mobile, In “Enjeux les Echos” (2006-06) n°225, p.50-66 - Les deux révolutions du téléphone mobile, in “Expansion” (1996- 01-25) p.64-73 - Bundling competition in ICT industries, in “Communications & stratégies” (2006-10/12) p. [...]

[...] Gaining new customers can be achieved by launching in-house MVNOs to touch audiences that are far from the positioning of the MNO Brand. The market penetration ratio is low in France compared to other European countries, this margin reflects that some customers are not targeted by the operators. Most time seniors are isolated from those operators by the communication strategy. For instance Bouygues Telecom has a very dynamic positioning with festive, youth and technologic advertisements. A good approach might be for the classic operators to launch their own MVNO and to position themselves so as to target those left-away customers. [...]

[...] From a regulatory perspective, it will become tougher to hang on to long-term SME subscribers, as ARCEP enforces new and more open-ended rules for both mobile number portability (MNP) and rules for groups of users (such as a business, or public entity) porting under a single contract. Termination rate cuts to come into force in early 2006 will also boost the MVNO business model, as will the obligation for operators to remove the ‘ineligibility clause,' which bans customers from porting their numbers in the case of invoicing disputes in which outstanding payments are incurred2. Therefore, it appears that MVNO operators in France offer a lot of services which cast some doubts on their long term positioning. [...]

[...] Telmore has a clear and readable offer, it does not provide vague services, it only offers pre-paid SIM cards and since customers are looking for simplicity and low-price, since the competition is not considering this low segment and since the purchasing power is a burning issue for many customers see the electoral debate in France it can be highly successful in France under its present form. Including new services is costly and meaningless regarding such a business plan Taken from French MVNO Market Expands, in all Directions” by E. Mohr Mc Clune for Current Analysis August Question 4 Do you think Easy Mobile should integrate some local adaptations? Please be specific. [...]

[...] All in all, Telmore brings some tangible synergies. Operational synergies are expected between the two companies. For instance, Telmore could be the only company negotiating the minutes bought to the MNO since it has more experience. The corporate training can also come from Telmore, the same for the similar material that could be commonly bought by the two companies. Clearly with Telmore Easy Mobile can gain some years, advice and experience and more specifically about the phone industry, whereas with the Easy Group, it can gain management and image capacities. [...]