EASYJET AND ITS MARKET SEGMENTATION

EasyJet and Its Market Segmentation



EasyJet and Its Market Segmentation

Brief Introduction Of Easyjet & Market Segmentation

Market segmentation is the research of splitting up an general market into clientele subsets or segments, whose in segment distributing alike characteristics and needs. Segmentation normally engages important market study and can therefore be costly. It is performed particularly in foremost businesses with highly differentiated merchandise lines or assisting large markets. The little enterprise tends to find out the segment it serves best by the test and mistake of considering with customers and supplying goods more and more apt to its specific clientele.

EasyJet Airlines Differentiation has been the key to EasyJet key to profitability. It is a small British airline, it has carved its niche in short-haul flights with low prices and no frills. It started its operations in 1973, with 3 Boeing 737 connecting three Taxes cities; by 1993 the company has grown to 157 planes, a route network to 37 cities and annual revenue of $2 billions. Flying from smaller airports and avoiding the major airport hubs, it avoids the direct competition with other airlines. For instance EasyJet operates between the cities and internaltionally by offering point to point short flights it has been able to lure motorists who normally drove these short distances.

EasyJet has been able to keep fares low because it operates only one type of aero plane, the 737 thus eliminating the expense of maintaining different types of planes. And it offers strictly no frills the bag of peanut is all you get, and you carry on your luggage. As a result EasyJet can fly one passenger one mile for 6.8 cents while a passenger mile costs American 8.8 cents and United 9.6 cents.

Research Question

What is the market segmentation of EasyJet?

How is it productive and productive?

 

Research Objective

The target of the study is to talk about EasyJet and its market segmentation utilising the causes cited in the register of references.

 

Critical Literature Review Based On Easyjet Airline Industry

Cost & Price

EasyJet offers cheaper flights and “cheaper” is one of the broad ways a company can differentiate its offering. (Brady, 2000)The firm can also create value by offering something that is better newer and faster. (Ott, 2004) “Better” means that the company's offering outperforms its rivals' offers; it usually involves improving existing products in a minor way. “Newer” means developing a solution that didn't exist before, it usually involves higher risks than a simple improvement but also chance of higher gain. (Cravens, 2001) “Faster” means reducing the performance or delivery time involved in using or buying a product or service. (Howard, 2007)

Competetive Strategies

Companies that differentiate their offerings solely by cutting their costs and price may be making a mistake, for several reasons. (Europa, 2006) First “cheaper” products are often viewed as inferior in quality, second the firm may cut the services to keep the price down, and this action may alienate buyers. Third a competitor will usually find a lower-cost production site and offer an even cheaper ...