Marketing
Essay Preview: Marketing
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Introduction:
I shall compile a report based on Easyjet and their major competitor, British Airways. The document shall enclose background information about both of these organisations, a SLEPT and SWOT Analysis of Easyjet, a Competitor Analysis, recommendations and a summary of the information processed.
The purpose of the report is to show an analysis of the marketing environment of my chosen organisation, with an in depth research policy, which includes Easyjets and British Airways Financial Information, Mission Statements, Aircraft and Passenger details, Flights, Routes and Destination details and other relevant information.
Notes and Background Information- Easy Jet:
Company Name:
Easy Jet
Web Site Address:
www.easyjet.co.uk
Telephone Number:
08717 500 100
Company Founder:
Stelios Haji-Ioannou
Other Organisation Sub Groups:
EasyInternetCafe
EasyCar.com
EasyMoney
EasyValue
Main Airline Base:
Luton Airport.
Turnover: (To Sep. 2003)
Ј932 Million
Profit: (To Sep. 2003)
Ј52 Million
Number of Passengers: (2002)
20.3 Million
Stock Market Debut:
22nd November 2000
Stock Market Debut Price:
Ј3.10 per share
Easy Jets first ever flight was in November 1995 and it still remains the UKs low cost airline. Since then, they decided to merge with Go-Fly, which increased Easy Jets purchasing power, financial resources and their market segmentation.
This lead to the airline increasing their aircraft numbers and available routes across Europe.
Easy Jet have since, decided to improve their customer base. This has lead to a survey recording the following results:
86% of GB residents live within 90 minutes drive of an EasyJet airport.
64% within 60-minute drive.
Source: FY2003 Interim Results
(See SWOT Analysis- Social Factor).
SWOT Analysis:
Easy Jet:
SLEPT Analysis:
Easy Jet
Competitor Analysis:
The airline industry is a highly competitive market, which consists of major organisations obtaining the greater market share. These include Easy Jet and British Airways- My chosen company for my Competitor Analysis. There are also various other rival organisations which include BMI Baby and Bargain Flights
Company Capability Profile:
Available Routes
British Airways flys to 550 destinations, which is a slightly more than EasyJet.
Financial Power
BA recorded a profit of Ј105m (pre tax) for the year 2002-2003. The figure previous to this was Ј245m (pre tax).
Easy Jet
British Airways
Value for Money
Quality of Service
Comfort of Journey
Available Routes
Travel Services
Financial Power
Customer Service
Timetable Flexibility
E-Commerce Service
Booking Procedures
Overall Total
The above table suggests that although Easyjet offer their passengers a value for money and a booking user-friendly service, BA concentrates on the quality factors, such as the comfort of the journey, the travel services available and the number of available routes. Overall, BA outscores Easyjet, which states they should also obtain a greater share of the market segment.
British Airways:
Strengths:
Weaknesses:
British Airways- Objectives:
By November 2003- Increase passenger capacity.
To produce a pre tax profit for the year 2003.
To develop routes to Algiers from London Gatwick on January 5, 2004.
To develop routes to three new routes to three Italian destinations, Bari, Cagliari and Catania by Summer 2004.
To increase service frequency- (November 2003-Summer 2004).
(Please see the appendix- Press Release for evidence of the above)
Strategies for BA:
BA plan to