Marketing Mix Ryanair
Ryanair Marketing Mix
Product or Service.
- Low cost, no frills air travel to European destinations.
- No free food or drink onboard. You buy them onboard, or you don't. You can take your own food and drink.
- The company has deals with Hertz car rental, and a number of hotel businesses, phone cards and bus tickets. Ryanair takes a commission on 'up selling'. About 16% of profit is made this way.
Price
- Ryanair has low fares. -70% of seats are sold at the lowest two fares. 30% of seats are charged at higher fares. The last 6% are sold at the highest fare
Place
- Ryanair does not use travel agents (it does not pay agency commissions). It uses direct marketing techniques to recruit and retain customers, and to extend products and services to them (reduce costs).
- You book online over the Internet. This saves them 15% on agency fees.
- They are based in Stansted in Essex (a secondary airport). New and accessible. It is cheaper to fly from Stansted than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.
- Many of Ryanair's destination airports are secondary. Secondary airports, which tend to be smaller regional airports. Costs are lower and aircraft can be turned around faster.
- Keeping aircraft in the air as much as possible is another important part of the low cost. However, the company has been challenged by the European Union in relation to anti-competition laws.
Promotion
- They spend as little as possible on advertising.
- They do not employ an advertising agency, all of the advertising is done in-house. They use simple adverts that tell passengers that Ryanair has low fares.
- Some of their aircraft are decorated in the livery of advertisers.
People
- Pilots are recruited when they are young as pilot cadets. They work hard and take early promotions and then move on after 10-years or so to further their careers.
- Cabin crew pay for their uniforms to be cleaned. They
Product or Service.
- Low cost, no frills air travel to European destinations.
- No free food or drink onboard. You buy them onboard, or you don't. You can take your own food and drink.
- The company has deals with Hertz car rental, and a number of hotel businesses, phone cards and bus tickets. Ryanair takes a commission on 'up selling'. About 16% of profit is made this way.
Price
- Ryanair has low fares. -70% of seats are sold at the lowest two fares. 30% of seats are charged at higher fares. The last 6% are sold at the highest fare
Place
- Ryanair does not use travel agents (it does not pay agency commissions). It uses direct marketing techniques to recruit and retain customers, and to extend products and services to them (reduce costs).
- You book online over the Internet. This saves them 15% on agency fees.
- They are based in Stansted in Essex (a secondary airport). New and accessible. It is cheaper to fly from Stansted than either Heathrow or Gatwick, and since it is less busy Ryanair can turn aircraft around more quickly.
- Many of Ryanair's destination airports are secondary. Secondary airports, which tend to be smaller regional airports. Costs are lower and aircraft can be turned around faster.
- Keeping aircraft in the air as much as possible is another important part of the low cost. However, the company has been challenged by the European Union in relation to anti-competition laws.
Promotion
- They spend as little as possible on advertising.
- They do not employ an advertising agency, all of the advertising is done in-house. They use simple adverts that tell passengers that Ryanair has low fares.
- Some of their aircraft are decorated in the livery of advertisers.
People
- Pilots are recruited when they are young as pilot cadets. They work hard and take early promotions and then move on after 10-years or so to further their careers.
- Cabin crew pay for their uniforms to be cleaned. They