Ryanair Low Fare Airline

Executive Summary

This paper seeks to explore the marketing techniques utilised by the low cost airline, Ryanair.

Specific analysis of its target market will identify that whilst its cost leadership strategy is hugely successful in its appeal to the mass market, closer analysis of the increasing ‘budget business traveller’ segment reveal opportunities for further industry growth poignantly amidst the current economic climate.

Analysis of Ryanair’s market position as ‘Europe’s largest airline carrier’ shows that the airline is currently market leader and cost leader. This is in sync with the business operation of the ‘no frills’ concept extrapolating a low cost, high volume market yield.

A specific insight into Ryanair’s marketing mix shows that its business is defined through a price orientated business construct aimed at meeting consumer needs through the promotion of low cost travel.

In conjunction, there is reference to Ryanairs current marketing tactics regarding the stimulation of a stagnant market through further cost reduction and the implications of this strategy for the businesses future success.

Finally, recommendations are made regarding improvements that could

Introduction

The Changing face of Commercial Aviation

Since its conception the Global commercial Airline industry had been dominated by national flag- carrier airlines such as British Airways, Lufthansa, American Airlines and Air France.

This oligopoly market, consisting of few companies advocated the utilisation of restrictive trade practices (such as collusion and market sharing) to raise prices and restrict the emergence of new competition (Button et al., 1998). However, in 1978, the Airline Deregulation Act passed in America conceptualised the economic liberalisation of air travel amid growing realisation that a politically controlled economy served no continuing public interest (Smith & Cox, 2002). This was soon followed by a greater global inclination to

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