Does the Marketing Mix Contribute to the Success of Ryanair?

Topics: Marketing, Pricing, Marketing mix Pages: 7 (2336 words) Published: March 13, 2013
For an organization of your choice, critically assess whether the marketing mix contributes to the success of the organization:

Does the Marketing Mix contribute to the success of Ryanair? Student ID: 8392312 Course Code: BMAN70441 1. Introduction The marketing mix is an essential perspective in both marketing research and implementation. As the most common concept of the marketing mix, the classification of four Ps (Product, Price, Promotion and Place) is generally considered the synonym of the marketing mix and has been used by marketers throughout the globe since it was first advanced by E. Jerome McCarthy in 1960s (Reid,1980; Waterschoot and Bulte,1992). However, with the development and complication of marketing domain in recent years, people argue that the four Ps theory may not be comprehensive enough for the present business circumstance (Kluyver and Brodie, 1987; Grönroos, 1997; Chartered Institution of Marketing, 2009). This essay is aimed to examine the effectiveness of the four Ps theory through Ryanair's case as well as exploring other factors contributing to the success of this company. 2. Introduction to Ryanair Since its establishment in 1984, Ryanair has grown into the largest budget airline providing air transport service across the Europe (Sakle, 2010). In the last fiscal year, Ryanair achieved a revenue of 4.325 billion Euros and a 25% increase of full year profits (Ryanair, 2012, p.1). On this premise, a question is raised from marketing perspective: does the marketing mix contribute to the rapid growth of Ryanair?

3. Classical definition of the marketing mix The marketing mix has been defined in various ways in the past decades. The concept was first created by Neil Borden, who was inspired by Culliton that marketing executive should be considered "mixer of ingredients" (1948,cited in Goi, 2009, p.2). Borden originally claimed that the marketing mix had 12 components: product planning, pricing, branding, channels of distribution, personal selling, advertising, promotions, packaging, display, servicing, physical handling, and fact finding and analysis (1964). McCarthy (1964,cited in Goi, 2009, p.2) refined those components as four Ps: product, place, promotion and price, which ought to be combined as a mixture of resources that applied to achieve the expected marketing objectives. In despite of some criticisms toward the four Ps classification afterwards (Judd,1987; Kotler, 1986; Boom and Bitner, 1980), companies' marketing strategies still encompass some or all of these four factors and Ryanair can be taken as an example. 4. Marketing mix application of Ryanair 4.1. Product Involving in the aviation industry, Ryanair ought to be categorised as a service provider. Generally, the air transportation service is the core product of an airline. Ryanair conducts 165 routes between major cities in Europe by a fleet of 275 aircrafts (Ryanair, 2012) with a relatively higher turnaround frequency than its rivals (Datar, 2003). These capacity and performance help Ryanair remain on the advantage in competition with small-scale airlines by better satisfying the consumers' requirements for the destination accessibility and the time flexibility (Alderighi, et al., 2012). However, Ryanair charges the consumers for in-flight service, check-in luggage and other additional services whereas those services are free as added value provided by traditional airlines such as British Airways (Datar, 2003; Kasper, Helsdingen and Gabbott, 2006), making Ryanair less likely to be attractive to those service-orientated or

high-end consumers. According to the previous discussion, the overall effect of Ryanair's product planning cannot be considered an absolute advantage in competitions.

4.2. Place Referring to channels of distribution, place is how consumers purchase the product of their choice (Jobber, 2007). Since 2000, Ryanair has launched its website which later turned to be the only channel of ticket sale (Sakle,...
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