Easyjet presentation and notes pdf by Jessica Higham

Jessica'Higham and'Sarah'Shorter

Hello and welcome. We are Jessica and Sarah and we will be presenting a new integrated marketing communication strategy for EasyJet.

Aims and Objectives

• Analyse EasyJet's current position in the market • Where there is a gap in their target audience • PESTLE and SWOT analysis • Create new objectives • Create a strategy to reach new target audience • Costs and benefit analysis

Our aim from this presentation is to analyse EasyJet’s current positon within the market, to help figure out where they have a gap in their target audience and what internal and external factors may impact the company. This will be done through a PESTLE and SWOT analysis. From this, we aim to create new business objectives, helping us conduct new strategies using an integrated marketing approach.

Introduction

To begin with, we looked into EasyJet’s current position and what they are currently doing.

Introduction • Mission • Vision • Values

EasyJet have 68.6 million passengers per annum, with 138 airports within 32 countries and 820 routes. (About us -‐ EasyJet plc) With over 10,000 employees, they all aim to follow EasyJet’s 3 key messages: their mission, vision and values.

Their mission is “to provide customers from both the leisure and business sectors, reliable and consistent service at a good value”. This allows them to withhold a larger target audience than their competition. (Corporate Responsibility – EasyJet) Their vision is “To be Europe’s preferred short-‐haul airline delivering market-‐leading returns and making travel easy and affordable for all”. This is one of their main core objectives as a business. (EasyJet Careers, 2016) And finally, their values are on: • Safety • Simplicity • One team • Integrity • Passion • Pioneering (About us -‐ EasyJet plc) To promote EasyJet, they are involved in a successful partnership with Unicef and use a variety of social media such as Instagram, Twitter, Facebook, LinkedIn and YouTube.

Introduction 48% men

• Where is EasyJet currently?

52% women 63% married/couples 24% 50k per household income 38% director/middle manager

•

What is EasyJet’s current marketing strategy?

• What is EasyJet’s Unique Selling Point?

Currently EasyJet’s passengers consist of: • 48% men • 52% women • 63% married/couples • 24% 50k per household income

This shows a gap in the market for younger adults, aged 18 to 25, who are currently in or in-‐ between education and full time work. So where is EasyJet currently at? They have: • A website that they promote an alert service • 1,227,768 likes on Facebook • 389K followers on Twitter • 109K followers on Instagram • 4,895 subscribers on YouTube Their marketing strategy involves the use of these social media platforms and the use of offline marketing, such as TV adverts, billboards and catalogues. They also reward their loyal customers, offering them free changes to their bookings, previews of any updates and a price guarantee promise. They also have their Unique Selling Point, which is their Fear of Flying course. This is where EasyJet goes the extra mile to help make nervous flyers feel more confident when flying and getting them to put their trust in them; making them loyal passengers in the long run.

Introduction • Carbon emissions • Aim: •

Reduce carbon emissions by 8% by 2020, compared to 2013.

• Increase in demand - By 6% from 2014 to 2015 • Air quality – New engines to reduce emissions by 25%

We then looked into their environment impact and what their current aims are. Their largest cost and biggest impact on the environment is fuel and the associated carbon emissions. EasyJet aim to reduce their carbon emissions by 8%, per passenger kilometer, by 2020 compared to 2013. They have also installed new engines in 67.8% of their aircrafts, which are meant to reduce their emissions by 25%. (Environment – EasyJet plc) However, they are struggling to keep down their emissions due to the increase in demand from passengers.

Analysis

After looking at their current situation, we then conducted a PESTLE and SWOT analysis on EasyJet.

PESTLE Political •

Brexit •

Economic •

Exchange rates

•

Easier.to.travel

European.Common.

•

Increase.in.fuel.costs

•

Gap years

Aviation.Area.(ECAA).

•

Security.and.insurance.

•

Business.travel

costs

•

Spending.habits

•

No.control

•

Less.demand.from.

•

Globalisation

customers

•

Single.currency

•

Social

EasyJet.supported.remain

The main political factor that impact EasyJet is Brexit. This is because, due to leaving the EU, EasyJet will now have to negotiate with the EU to continue using flight paths through the European Common Aviation Area (Bhaskara, 2016). This can’t be guaranteed and the UK no longer have a say in shaping the EU rules, meaning less control. Because of the implications of Brexit, it may create less demand from customers to travel to Europe. However, by altering their target audience, this may stop this from happening.

This links in with the economic issues, such as exchange rates. As the pound has decreased in value since Brexit, it has now become more expensive to exchange foreign currency (Collinson and Jones, 2016). This may decrease the number of people going aboard. Also, the increase in fuel may also have an impact on the price of flights, which puts pressure on to the cheapest airline. However, because of globalisation, EasyJet will continue to see an increase in passengers, especially from the younger generation. Linked to globalisation, it is more socially acceptable to take gap years before or after further education. Meaning there is a larger market of young adults looking to travel. Similarly, spending habits have begun to change, and people are spending less on clothes and more on holidays.

PESTLE Technological

Legal

• Cross Country*Trains

• Customer Law*Rights

• New*Fleet

• Requirements*to*fly*

• Updates*in*Cockpit

Environmental •

Carbon Emissions

commercially

Cross Country Trains – The Eurostar goes to more location within Europe including; Paris, Amsterdam and Brussels. With travel times from London under 4 hours for most destinations. New Fleet – There have been improvements to airplanes to improve safety and efficiency. Updates in Cockpit-‐ Updates in technology has led to improvements being made in the cockpit, more accurate readings and being paperless. Consumer rights law states that flight prices need to be displayed clearly and all charges which are avoidable should be shown. An airlines terms and conditions should be available for customers to read. In order to fly commercially an airline needs to hold an operating license. This means they meet the requirements set out by the Civil Aviation Authority. (Authority n.d.) Carbon Emission have become a growing concern of the population. Air travel cause the most CO2 emissions than other modes of transports. An airline similarly to car owners have

to comply with the European Union Emissions Trading system requirements. Airlines need to look into way of reducing their carbon emissions. EasyJet have already reduced their emissions from 84.4G pp per kilometre in 2010 to 81.05gpppk in 2015. Have an ongoing programme to reduce emissions. (Anon., n.d.)

SWOT • New%fleet • Customer loyalty • Cheap%Flights%

• • • •

Don’t%do%long%haul flights Pay%for%meals%on%flights% Food%available%is%not%healthy% Limited%flights%from%various%airports

• More%routes%within%Europe • Offering%long%haul%flights • Offering%free/cheap%food%and%drink%on%flights% over%2%hours% • More%technical%devices%on%board% • Expand%target%audience%to%younger%generation

• • • • •

Other%airlines%offering%same%routes Coaches,%trains,%ferry,%car Technology% Fuel%prices Brexit%

EasyJet have many strengths; the main one is they are leaders in cheap European flights. They also have a modern fleet of aircraft which are more fuel efficient and faster. They have a customer loyalty with an average of 37 million passengers rebooking each year. One of the biggest weakness of EasyJet is that they do not have long haul flights. This means they are missing out on not only holiday makers to places like Florida but also Business travelers and travelers who are going to America and the Middle East. Another weakness of EasyJet is they not offer free meals on certain flights and meals that are available to purchase aren’t healthy. Also, there are limited flights from various airports around the UK, meaning passengers have to travel long distances to get to an airport, that flies to where they want to go. Using EasyJet’s weaknesses, they can create opportunities. Such as, they can offer more routes and long haul flights to broaden the company. They can also offer cheap or free food on longer flights to keep competitive. Due to growth in potential in the younger generation market, they have more opportunity to target to this age range, as they are beginning to travel much more than their parents ever did. This is an expanding market. However, currently other airlines offer the same routes as EasyJet, which threatens their competitiveness. They also have to try and keep up with technology, otherwise they will have the treat of falling behind. These all relate to Porters Five Forces:

• • • • •

Competition Customers Substitutes Suppliers Potential entrants

Objectives

From all this research, we were then able to create 4 SMART objectives.

SMART objectives

To expand flight destinations in all North/Midland airports in the UK by 20% in 2 years from 2017, to allow less travel to airports for passengers.

Increase passengers aged 18– 25 by 30% in 12 months, starting from January 2017, through online promotions.

Expand flight range in Europe to an extra 4 new countries within 18 months, starting from January 2017, to become more competitive.

Break into the long haul market, starting with 3 countries such as Canada, Mexico and South Africa, within 3 years, starting from January 2018.

Our first objective is ‘to expand flight destinations in all Northern/Midland airports in the UK by 20% in 2 years from 2017, to allow less travel to airports for passengers’.

The second objective is to ‘increase passengers aged 18 to 25 by 30%, in 12 months, starting from January 2017, through online promotions’. The next objective is to ‘expand flight range in Europe to an extra 4 new countries within 18 months, starting from January 2017, to become more competitive.’ And finally, our last objective is to ‘break into the long haul market, starting with 3 countries such as Canada, Mexico and South Africa, within 3 years, starting from January 2018’.

Integrated marketing communications mix

After creating these objectives, we then had to come up with a strategy. This needed to incorporate an integrated marketing communication mix.

Strategy

Inbound marketing

January February March April May June July August September November December

We knew that we were going to be focusing on inbound and pull marketing, as we are trying to bring the customers to EasyJet, rather than EasyJet having to do any hard selling. So to do this, we needed to know the best times to place our best times to advertise to the target audience. This graph shows peak times for holidays over a 12-‐month period. The starts on the graph show the best times to advertise.

Strategy Sales Promotion • • •

Competitions Discounts for loyal customers Social media engagement

Advertising • • • •

Public Relations • • • •

Build relationships Earned media Events Social media

TV adverts Radio Social media Billboards

Direct Marketing •

E-mails to current and targeted audience

The 4 integrated marketing techniques we are going to use is sales promotion, advertising, public relations and direct marketing. All sales promotions will be advertised using all social media. As well as increasing sales, the promotions will also help EasyJet gain followers online. This will be done through competitions, where a prize will be won at the end. A lot of the sales promotions will also be aimed at loyal customers, offering discounts and loyalty fly points. This will get people engaged online. CIPR define PR has “the discipline which looks after reputation, with the aim of earning understanding and support and influencing opinion and behaviour. It is the planned and sustained effort to establish and maintain goodwill and mutual understanding between an organisation and its publics.” A PR team build relationship with reporters and other partnerships to help with completing organisations objectives. (Egan and Egan, 2007) • Will get earned space in local and national press. • Host a launch event for the long-‐haul flights. • Manage their social media channels to communicate with users. To reach a large audience, with high exposure, advertising is a must. This helps EasyJet maintain their big brand image. Advertising will be used on TV, radio, social media adverts and billboards. This will get their name out there and insert the colour orange into people’s head.

Direct marketing is direct communication with a customer, personalised, measurable and gives a specific action. Direct marketing will enable EasyJet to communicate directly with their end users to complete organisation objectives. (Egan and Egan, 2007) • Emails to the targeted markets. • Emails to current customers.

Evaluation

To make sure EasyJet gets a profit from these strategies, we have conducted a cost and benefit analysis. This will make us see whether all this would be worth it.

Cost Benefits

Benefits 2% increase in target audience

Cost Public Relations – £39,600 Advertising – £2,068,820 Sales Promotions – 180,000

65 million people in the UK 7 million of the UK population is aged 18 to 25 56% of 7m = 3,920,000 (already use EasyJet) 3,080,000 (left to target to) Average price of a flight is £62

Direct Marketing – £2,800 Total = 2,291,220

2% of 3,080,000m = 61,600 61,600 X 62 = 3,819,200

3,819,200 – 2,291,220 = 1,527,980 (ROI) 17

As you can see, we worked out the individual costs for each integrated marketing mix strategy. This summed up to £2,291,220. We then worked out how many people are ages 18 to 25 in the UK, and with an estimate of 56% of these already using EasyJet, we could then work out how many people we will be targeting. This came to 3,080,000 people. With the average price being £62 (Dynamic pricing explained, EasyJet), and the objective of increasing the number of bookings from the target audience by 2%, we added these numbers together to make £3,819,200. This means EasyJet will see a Return of Investment of 1,527,980.

Aims and Objectives

At the end of this campaign and presentation, we can see that we have managed to reach each aim that we spoke about at the beginning.

Thank you!

Thank you very much for listening. Do you have any questions?

References

•

AUTHORITY, C.A., n.d. UK civil aviation authority [viewed 22 November 2016]. Available from: https://www.caa.co.uk/Commercial-industry/Airlines/Licensing/Requirements-andguidance/Airline-licensing/

•

ANON., n.d. EasyJet plc [viewed 29 October 2016]. Available from: http://corporate.easyjet.com/

•

About us - EasyJet plc (no date) Available at: http://corporate.easyjet.com/abouteasyjet.aspx?sc_lang=en (Accessed: 22 November 2016).

•

Bhaskara, V. (2016) What does Brexit mean for commercial aviation? • airways magazine. Available at: https://airwaysmag.com/industry/brexit-commercial-aviation/ (Accessed: 23 November 2016).

•

Collinson, P. and Jones, R. (2016) The post-brexit pound – how sterling’s fall affects you and

the UK economy. Available at: https://www.theguardian.com/business/2016/aug/19/the-postbrexit-pound-how-sterlings-fall-affects-the-uk-economy (Accessed: 23 November 2016). •

Corporate responsibility - EasyJet plc (no date) Available at: http://corporate.easyjet.com/corporate-responsibility.aspx?sc_lang=en (Accessed: 22 November 2016).

•

Dynamic pricing explained (no date) Available at: http://www.easyjet.com/en/policy/dynamicpricing (Accessed: 23 November 2016).

References

•

EasyJet (2016) EasyJet Careers. Available at: https://careers.easyjet.com/why-easyjet/culture-vision-and-value/ (Accessed: 22 November 2016).

•

EGAN, J. and EGAN, 2007. Marketing communications. London: Cengage Learning EMEA Higher Education

•

Environment - EasyJet plc (no date) Available at: http://corporate.easyjet.com/corporateresponsibility/environment.aspx?sc_lang=en (Accessed: 22 November 2016).

•

FLETCHER, L., 2014. EasyJet reports record customer retention and

loyalty [viewed 22 November 2016]. Available from: http://www.travelnews.co.uk/9880/2014/11/easyjet-reports-record-customer-retention-andloyalty/ •

Porter’s Five forces: Assessing the balance of power in a business situation (no date) Available at: https://www.mindtools.com/pages/article/newTMC_08.htm (Accessed: 22 November 2016). 21