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virgin marketing - MARKETING CASE STUDY Free essay! Download now

Home > A Level > Business studies > virgin marketing - MARKETING CASE STUDY

virgin marketing - MARKETING CASE STUDY

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Downloads to date: N/A | Words: 3572 | Submitted: 16-Jun-2011
Spelling accuracy: 95.7% | Number of pages: 14 | Filetype: Word .doc

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virgin marketing



Table of Contents

1. Introduction and History
2. The Mission Statement of easyJet

3. Competitive Analysis (Porters five competitive forces)
4. Marketing Mix

5. SWOT Analysis
5.1 Internal Analysis – Strengths and Weaknesses
5.2 External Analysis – Opportunities and Threats
6. Situational Analysis

7. PEST Analysis (Marketing Plan)
8. Conclusion
8.1. Strategic Issues facing the airline Industry
8.2. easyJet’s future

9. Appendices

1. Introduction and History

A successful example of a European no frills airline is easyJet. Stelios Haji-Ioannou (Greek) founded the company in 1995. It is based on the low-cost, no-frills model of the US carrier Southwest. The concept of easyJet is based on the belief that demands for short-haul air transport is price elastic. That means, if prices for flights are being reduced, more people will fly. Traditionally airline concepts are based on the assumption that airline traffic grows in line with the economy and that cutting prices will only lead to a decrease in revenues. With the introduction of the ‘no-nonsense’ concept to the European market, after its deregulation in 1992, easyJet has proven this theory wrong and goes from strength to strength by actually increasing the size of the market and more recently by taking away passengers from the majors (see for passenger figures, financial data and employee statistics). Today, it offers 125 routes from 39 European Airports (see for route launch dates), with Luton, Liverpool, Geneva, Amsterdam as base airports and is operating 72 aircrafts (November 2003).

November 1995: easyJet starts flights from Luton to Glasgow and Edinburgh with to leased Boeing 737-300 with a capacity of 148 seats at a price of £29 one way. Seats are being sold over telephone reservation system only. In 1996 easyJet takes delivery of its first wholly owned aircraft and goes international with first services to Amsterdam from Luton. One year later easyJet launches its website, which will from 1998 onwards form an integral part of the business concept (and which provides for some 90% of the bookings today). In August 2002 easyJet expands its fleet and routes by acquiring British Airways’ low-cost subsidiary Go. In October 2002 the airline signs a deal to purchase 120 Airbus, which will facilitate the airline’s ongoing growth strategy. Up until now, one of the cornerstones of the easyJet’s low-cost model has been to operate a single aircraft type fleet – which so far has been the Boeing 737 series – ...

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