This report illustrates an in-depth look of easyJet and will also discuss an analytic research that was made to demonstrate aspects of the history of the airline, along with the marketing strategy and brand strategy used and implemented by the low-budget airline. The strengths, weaknesses, opportunities and threats, known as SWOT analysis, will also be illustrated along with the external environment better known as PEST analysis which consists of the political, environmental, social/cultural and technology factors of easyJet. In addition an analysis of the competitive market environment of easyJet will be shown, which includes an overview of easyJet’s main competitors and the nature of business in which they operate by illustrating it through the Porters-Five Force model. The advantages and risks associated with their low-price strategies will also be discussed with an illustration of how easyJet achieved success using these low-price strategies. Finally there will be a conclusion by giving recommendations along with a critique for future ways to enhance and develop their strategies, which in turn will increase their profits. Overview and History of easyJet:
EasyJet is a public limited company which falls under an oligopolistic market structure and operates across the European continent with the vision of turning Europe orange. Their mission statement is “To provide our customers with safe, good value, point-to-point air services. To effect and to offer a consistent and reliable product and fares appealing to leisure and business markets on a range of European routes. To achieve this we will develop our people and establish lasting relationships with our suppliers.” (Rae, 2001). They are also a no-frill airline operating mainly in Europe, with their headquarters based in Luton, the UK and it employs around 6,107 employees (Datamonitor, 2009). EasyJet was founded and launched in 1994 by the son of a Greek shipping tycoon named Stelios Haji-Ioannou. The intention of easyJet was to be a low cost carrier, hoping to challenge regular airlines such as British Airways, among others. The airline has also surfaced to be one of the most flourishing low budget airlines in all of Europe. EasyJets’ target market consists of people who pay to travel from their own income rather than their companies; they also target individuals visiting their relatives, managers and entrepreneurs of small business and leisure travelers making short trips. In 1997 easyJet.com was launched providing seat prices and booking information. Within 4 years of launching their website, the airline sold their 10 millionth online seat. In 2004, easyJet became the first low-budget airline that took advantage of the newly formed European Union and created flights to Slovenia and Hungary. By 2006, their strategy of speedy boarding was introduced, allowing passengers to have better choices when it came to their seating arrangements. In 2009, they had18 bases operating throughout Europe, four in France, one in Switzerland, one in Italy and eleven in the UK. In 2010 easyJet was flying to 125 European, Turkish and North African airports in 29 different countries. (easyJet plc., 2010). By the end of 2010, easyJet re-announced their strategy of turning Europe orange. Even though easyJet’s success could be placed exclusively on Haji-Ioannou’s vision and adaptableness, what contributed to the success of the company were the market which it operates in and the business model that they have decided to follow. EasyJet’s key marketing strategy is based on a fairly simple structure. (Sull, 1999).
EasyJets’ key element of success was through their approach to pricing. Stelios Haji-Ioannou introduced a low head line price in order to grab the attention of consumers and then prices were raised according to consumer demand. The marketing strategy of easyJet consists of the costs which are estimated in one way with a...