Markets Segmentation And Market Mix Of Easyjet Marketing Essay

Markets Segmentation And Market Mix Of Easyjet Marketing EssayIntroductionEasyjet is a no-hit example of a European no-frills airline. Founded by the Cypriot Stelios Haji-Iaonnou in 1995, Eayjet gained a dominant market position over time thanks to its slight selling strategies. How Easyjet has segmented its market for its major ingatheringion and what is the marketing compound? Which parts of the marketing mix are done efficiently and which parts wish some improvementsMarkets segmentation and marketing mix of EasyjetEasyjets market segmentationLow-cost airlines like Easyjet, suck picked up some customers from their traditional competitors like BA (British aerateways) or Air France, but endure specially created a large traffic of induction (creating a new market). Easyjet operates in a different way to Ryan Air its direct competitor in the market, which is targeting the vacuous hold outler for whom the shred value is chief(prenominal). Easyjet has the same type of c lientele for whom the ticket price was slightly less important and also business customers whose companies seek to save on transportation costs, but care about the travels conditions. So Easyjet has two different kind of customers who are leisure customers and the business customers.1.2 Easyjets marketing mixAny business that does non have a concerted marketed strategy is setting itself up to fail. So what is the Easyjets marketing mix in term of product, place, price and promotion? intersection pointProduct is the most important component in an organization. Without a product there is no place, no price, no promotion, and no business. Product is anything that can be offered to a market to satisfy a want or a need. It is the core ingredient of the marketing mix and is everything favourable and unfavourable, tangible and intangible received in the exchange of an idea, table service or good (Kotler 11th edition, 2003). Easyjet is a business whirl service products, flights across de stinations, in the transportation industry. Easyjet operates over 500 routes and has 182 aircrafts in 28 countries (www.easyjet.com).Easy-Jet positions itself as low-cost airlines or better as cutting costs airlines. Its product strategy stops to the actual product without concern about the augmented product. They dont offer service at all but just the ticket. For example Easy-Jets product strategy ends at the expected level of five-product levels. There is no augmented product. There is no business seat on flights (Easyjet offer a mono class of seat but does not offer last minute deals), no executive lounge at airports, no free food and drinks on flights, no entertainment on flights, and in most cases Easy-Jet flies from major airports.PlaceEasyjet targets customers looking to minimise their transportation costs, or any type of customer looking for a low price. In general Easyjets customer is a customer who started to prefer the plane to land transportation to browse for short dis tances in the midst of different cities served. So Easyjet is competing as well with the airlines as the land transportspricePrice is the value placed on what is exchanged during the marketing process. The customer exchanges his/her notes or donation in final payment for a satisfaction or utility (S. Dibb and L. Simkin 2001).Easyjet has always had a one-way ticketing policy. The airline has only one price in the market for any one flight at any one time. The lowest fare is offered into the market first and then prices rise as the departure draws closer and the seats are sold. This ticketing philosophy is transparent to consumers. There is a value for money offering, which is easily understood by consumers. By offering only one price in the market, the consumer is confident that shopping around using other channels or making greater ticketing restrictions will not reap the reward of lower fares. As the airline educates their consumers that the cheapest fares are sold first, consum ers checking prices are more likely to purchase straightaway as they will have confidence that lower prices are not likely to appear later. The airline only sells tickets on a one-way basis and therefore if a passenger wants a return ticket they must buy two one-way tickets. The advantage of this for passengers is that they can book short stay trips without having to pay flexible return ticket prices. For business travellers the availability of flexible tickets is usually considered important. If a business meeting runs over the traveller needs to be able to change their ticket and take a later flight. This depends on two things. Firstly the ability to change the ticket, and secondly the availability of a later flight to change on to. Easyjet has been targeting business travellers and therefore they have addressed these issues by increasing the number of daily flights to key business destinations and by introducing a method of changing tickets. For a fee of 10 Easyjet passengers ca n change their ticket to a different flight as long as there is an available seat on the desired flight To reflect the current market price, the traveller will have to pay the difference between the price they originally paid for the ticket and the current price for a seat on the required flight. The airline can then release the seat no longer required on the original flight and sell this seat again.promotionThe distribution policy of Easyjet shows a high use of direct sales from call centre and lucre outside traditional distribution channels. 95% of the seats are sold online (www.easyjet.com).They use electronic ticket, reducing cost of ticketing procedures and remove twoKinds of costs-com burster for travel agencies-transaction related to reservation systemsWhat part of the marketing need to be improved?Easyjet is one of the most successful of the new economy carriers in Europe. So they have a strong marketing strategies and it is going to be a little bite difficult to change thi s strategy but it can always been improved.ProductEasyjet could benefit from randomly offering last-minute deal under its single pricing strategy. By occasionally lowering ticket prices to bump up revenue enhancement on some unbooked-flights, Easyjet could create the expectation that such bargains would be available on a predictable basis.Easyjet could create another brand having different mission and different market target and offering an augmented product such a better quality at a low price as Delta Airlines did with Song.PromotionThe use of the internet ticketing is dangerous in case of dysfunction of the server because of infection by viruses or any other kind of software problem.It is undeniable that this system reduces cost but it can cause problem if the general is touched by problem.ConclusionIf the other marketing strategies enable the lodge to evaluate everything about the business, only the marketing mix