POB T7 S4 debrief

1. Principles of Business: Stage 2 Marketing
Seminar:
Easyjet and the Marketing Mix
Topic Number:4

2. Overview
Easyjet, is the largest airline by passenger numbers in the UK,
has seen exponential growth since its inception in 1995. Its
success has largely been due to its ability to utilise the marketing
mix more effectively then its competitors.
In this seminar, we will critically evaluate how Easyjet has
managed each aspect of the marketing mix and determine its key
areas of strength and weakness.
We will start off by looking at its product proposition and
thereafter move onto the way it prices their flights. Thereafter,
we will evaluate its communication approach and finally how they
determine their distribution network.

3. 3
Learning outcomes of this seminar
• Be able to determine and describe Easyjet’s product
proposition
• Critically evaluate how Easyjet’s pricing strategy and
articulate its key principles
• Be able to describe Easyjet’s communication approach
• Articulate Easyjet’s distribution network and their approach
to developing new routes

4. Agenda for this seminar
Explain Easyjet’s product proposition using appropriate frameworks
Critically evaluate how Easyjet’s pricing strategy works using
appropriate frameworks
Discuss Easyjet’s promotional strategy and how it attracts new and
existing customers
Explain how Easyjet’s distribution strategy works

5. Structure for the session
You will have
15 minutes to
discuss each
question
We will have a
de-brief at the
end of each 15
minutes to hear
your thoughts
on each area
Feel free to ask
questions but
please do not
have separate
conversations
‘we are all in
this together’!

6. Easyjet – Right Place, Right Time?
I mean the unbelievable thing
with easyJet is I took an
enormous risk with my family's
fortune back in the 90s and I was
lucky to have been in the right
place, which believe it or not was
Luton, and at the right time -
mid-90s when the European
airline industry was deregulating -
and with the right father, to give
me a lot of money to bet on new
aircraft. And it worked!
Stelios Haji-ioannou

7. Origins of Easyjet
The airline was established in
1995 as part of the EasyGroup
conglomerate. It was launched by
Greek Cypriot businessman Sir
Stelios Haji-Ioannou with two wet
leased Boeing 737-200 aircraft,
initially operating two routes:
London Luton to Glasgow and
Edinburgh. In April 1996, the first
wholly owned aircraft was
delivered to EasyJet, enabling its
first international route, to
Amsterdam. Until October 1997,
the aircraft were operated by GB
Airways, and subsequently by Air
Foyle as EasyJet had not yet
received its Air Operator's
Certificate.[14]

8. Easyjet’s Mission Statement
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.

9. Explain Easyjet’s
product proposition
using appropriate
frameworks

10. A re-cap: a product has a number of levels
1. Core benefit: the benefit
the customer is really
buying
2. Basic product: Marketer
must turn the core
benefit into a basic
product
3. Expected product: Set of
attributes and conditions
that buyers normally
expect
4. Augmented product:
Exceeds customer
expectations
5. Potential product:
Possible augmentations
and transformations thaa
a product might undergo

11. Easyjet’s Core Product: From A to B

12. Easyjet’s Basic Product
Safety
Efficiency
Adequate

13. Easyjet’s Expected Product
Online Booking/Check-in In-Flight Snacks

14. Easyjet’s Augmented Product
Speedy Boarding Seat Allocation

15. Potential Product

16. Critically evaluate how
Easyjet’s pricing
strategy works using
appropriate frameworks

17. Price is critical for a competitive advantage
With recognition for providing more efficient, low-cost
flights, whilst maintaining as a high quality of
service as possible, easyJet is positioning itself to
its consumer base as the best form of budget
travel in Europe

18. Factors that influence price
Competition
on route
Seat supply
Seat
demand
Fuel prices
Distance of
route

19. Pricing Approach
• Lower the price, the higher the demand
• Easyjet adopts Good Value Pricing

20. Reverse Price System
Further the date of
departure, the cheaper
the ticket
Encourages customers
to book early
Gauge demand for every
flight
One-way ticketing
policy

21. Extra Charges

22. Discuss Easyjet’s
promotional strategy
and how it attracts new
and existing customers

23. Marketing Promotional Areas
+

24. Product Marketing!

25. TV Show
View video: https://www.youtube.com/watch?v=_54HFrg6hnc

26. PR

27. Direct Marketing

28. Explain how Easyjet’s
distribution strategy
works

29. Main Routes
easyJet flies between more
primary airports on more
popular routes across Europe
than any other airline. These
airports offer our passengers a
greater connectivity across
Europe, however they tend to
be busier and more subject to
slot constraints and curfews
than smaller airfields located
further away from Europe's
main cities. Nonetheless, we do
everything we can to get
passengers to their destination
on time.

30. Making it easier for customers to buy
New online
booking system

31. Appendix – Sources for illustrations
Slide 6:
www.virgin.com
Slide 7:
Facebook, Virgin and Dyson websites
Slide 11:
www.virginatlantic.com &
www.grameenbank.com
Slide 12:
www.grameenbank.com &
www.wikipedia.org
Slide 13:
www.ladieswholaunch.com &
www.wikipedia.org
Slide 14:
www.heatspring.com
Slide 16:
www.appl.com
Slide 17:
www.wikipedia.org
Slide 18:
www.apple.com
Slide 19:
www.asme.org
Slide 21:
www.wikipedia.org
Slide 22
www.brandpackaging.com
Slide 24
www.pearsoncollege.com
Slide 27:
www.fabeetle.com
Slide 28:
www.atongwalli.com

32. End of Seminar
Note: This recording is for your
personal use only and not for further
distribution or wider review.
© Pearson College 2013