ANALYSIS

Case: easyJet: Staying ahead in the Pricing Game



Case: easyJet: Staying ahead in the Pricing Game

Introduction

EasyJet is a Luton based airline which is one of the latest additions to the airline industry (Jones, 2005, pp.nd). It is United Kingdom's largest airline measured by number of passengers carried. The primary activity of easyJet is the delivery of airline services within Europe. By mid 2008, the company has over 152 aircrafts and operates on over 383 routes across 30 countries. Currently, the company employs around 7,300 people.

The company was founded by Stelios Haji-Ioannou in 1995 to offer low cost programmed airline services within Europe. Though they took their first flight in 1995 but were never disadvantaged of their lack of experience in the airline industry. This is not a supposition but proven by the corporate figures revenue of £ 260 million and pre-tax profits of £ 21 million, which shows that they are not struggling to keep up their success (www.easyjet.com). The company is heading towards strength with consistent increase in the number of passengers of impressive figures of 5 million passengers by the year 2001. Being “the favourite airline of the web” is the claim of easyJet which is proven by the statistics. The ethos of easyJet airline is personified by their mission statement which says

“To provide our customers with safe, good value and point-to-point air services”

Answer 1)

According to easyJet, their mission is “to provide customers with safe, good value, and point-to-point air services”. The company strike to effect and offer a reliable and consistent fares and product appealing to business and leisure markets on a range of European routes (Graham & Shaw, 2008, pp.nd). In order to achieve this objective, easyJet has developed its workforce and established a lasting relationship with their suppliers. The marketing objectives of easyJet incorporate the low fares and high frequency between major European airports (De Neufville, 2006, pp.62-65). In addition, the company intends that their customers are ready to pay more for value added proposition and the growth of the company should base on joining the points and adding frequency (Pate & Beaumont, 2006).

EasyJet eventually achieved a dominant position in the market thanks to its exceptional marketing mix strategies. Low-cost airlines like easyJet have pulled out a number of customers from their conventional competitors like Air France or British Airways (BA), but have particularly created a huge traffic of generation (Baum, 2006, pp.49-51). EasyJet operates in a dissimilar way as compared to its direct competitor in the market - Ryan Air, which is targeting the leisure traveller for whom the price of the ticket is significant. EasyJet has the similar type of customers for whom the price of the ticket was a little less imperative and also business customers whose companies seek out to save on the cost of transportation, but care about the travel's environment (Mantin & Koo, 2009, pp.nd). Therefore, easyJet has two different type of clientele who are business customers and the leisure customers.

Product

The mission of easyJet is to offer low cost ...