This cardboard explains the cardinal business planning action illustrating the altercation with examples from the low amount airline, Easyjet. The paper
gain in bristles parts. In the abutting area of the paper, the abstraction of bazaar analysis is declared and discussed. Next, the abstraction is amid in
the all-embracing positioning, segmentation, targeting (PST) organisational strategy. Porters’ Generic Action is again outlined, as a supplementary
archetype to bazaar segmentation. The abstraction of the business mix is discussed and activated to the case abstraction company. A abrupt cessation closes the paper.
Afore analytical the business process, however, it is all-important to accommodate an overview of the case abstraction company. Easyjet is an airline aggregation that has
been operating in the United Kingdom back 1995 (Easyjet, 2014). Like abounding another bargain carriers, the aggregation initially modeled itself on the business
archetypal of a acknowledged American carrier, Southwestern Airlines (Yip, 2004). That airline had accomplished aberrant success by cultivating and exploiting
a low amount operating archetypal – Easyjet approved to apparatus this archetypal in the European context, ablution a flight amid London and Amsterdam that was
bisected the amount of the book at the time offered by civic carrier British Airways (Sull, 1999). In the years that followed, Easyjet rapidly broadcast its
avenue arrangement to accommodate hubs in some of the above British cities: Glasgow, Manchester and Liverpool, and routes to accepted European destinations including
Rome, Brussels, Milan, Barcelona, Frankfurt, Oslo and Stockholm. Today, Easyjet is “Europe’s arch airline”, specialising in short
haul, point-to-point flights amid Great Britain and Europe (Easyjet, 2014, online). The carrier operates some 600 routes confined 30 countries, and had
close affairs to aggrandize its arrangement added afield in the future.
Business can be anticipation of as a cardinal aesthetics which holds that assessing and affair the needs of barter is a circuitous and able activity,
so that organisations are adapted to booty a holistic, customer-focused access to all of their business activities (Svensson, 2001). In practice,
business involves collecting, recording and analysing abstracts about customers, and application this abstracts to authorize a action for affair their needs. The
business action covers a countless of business activities that accredit companies to accommodated the needs of consumers. Three key activities anatomy the courage of
the business process. In the aboriginal instance, the chump abject is segmented on the base of demographic or another characteristics. Secondly, apositioning, segmentation, targeting (PST) action is developed in adjustment to ambition appurtenances and casework to the actual bazaar segments. Thirdly, a marketing mix is developed. Considered calm these three elements anatomy the base of the firm’s all-embracing marketing strategy (Kotler and Keller, 2006).
Populations, and appropriately markets are potentially ample and amalgamate (Dibb, 1998). Marketers would acquisition it abstract to ambition every affiliate of such a
assorted grouping, and appropriately bazaar analysis is a key action in the business action (Kotler and Keller, 2006). Bazaar adverse can be authentic as
“the admeasurement to which groupings of barter based on operational descriptor variables acknowledge differentially to the choices of both offerings and the
way they are marketed” (Wensley, 1995, p. 78). So, bazaar analysis refers to the action in which this ample amalgamate bazaar is segmented
or disconnected into smaller, added constant groupings of individuals with agnate demographic characteristics or agnate needs (Kotler and Keller, 2006).
Analysis recognises that it is neither applied nor acceptable to attack to amuse the needs of a ample amalgamate population; ultimately, its
aim is to analyze the business’ best acceptable customers, to accept them, and to ambition them. Each allocation of the bazaar is accepted as a market segment. Segments can be articular on the base of chump characteristics (e.g. socio-economics such as abundance or amusing class,
demographics such as gender or bounded location), psychographics (that is, interest, attitudes or opinions), product-related behavioural
characteristics such as purchasing or burning habits, or, in the case of business to business (B2B) marketing, business characteristics such as
business size, area or akin or about-face (Wedel and Kamakura, 2000).
Easyjet uses two chump characteristics to articulation its market: akin of wealth, and hence, the amount to which barter are amount conscious, and purpose
of biking (i.e. leisure or business) (Sull, 1999). The way in which this is axiomatic is through the appraisement action of the company, which is discussed in
greater detail below. For now, it is important to agenda that Easyjet’s business archetypal differs from accepted carriers who about drive sales
appear the added advantageous business chic passengers, bushing the butt of their seats with low-paying leisure passengers. In contrast, Easyjet,
“does not serve the
the adapted prices) so as to agree accommodation to accepted demand” (Koenigsberg, Muller, and Vilcassim, 2004, pp. 16-17). In another words, the
aggregation recognises two audible chump segments but uses agnate bazaar abduction strategies for both.
Identifying the ambition bazaar does not end with segmentation: afterwards analysis has been undertaken, organisations charge ambition the market, and position
themselves. This is accepted as the segmentation, targeting and accession (STP) action (Sausen, Tomczak, and Herrmann, 2005) Targeting refers to
the way in which business efforts are aimed at the articulation while positioning refers to the “designing of the company’s angel so that
the ambition barter accept and acknowledge what the aggregation stands for in affiliation to its competitors” (Hooley and Saunders, 1993, p. 8). Two
ample strategies can be identified. Functional positioning refers to accession on the base of artefact characteristics (e.g. amount or quality),
while expressive positioning refers to accession on the base of chump characteristics (Johar and Sirgy, 1989).
Easyjet, accustomed in 1995, entered the air biking industry accurately to abode the needs of low assets passengers, as exemplified by the emphasis
placed on the prices of its fares (Sull, 1999; Dobruszkes, 2009). Accordingly, the analysis action acclimated by the aggregation was about an
income-based, or price-conscious strategy: it met the needs of individuals adulatory to biking throughout Europe that were not willing, or able to pay the
airfares answerable by abounding anniversary airlines. However, added recently, the carrier has amorphous to be acclimated by business cartage (Lu, 2009). For instance, from
March 2013 to March 2014, the airline transported 12 actor business cartage (almost fifty percent of its fleet’s bench accommodation was taken up by
business passengers), apery a advance in this bazaar by 8.5 per cent over the antecedent year (The Guardian, 2014). This development has been
attributed to the accession of allocated seating. Previously, Easyjet, like abounding another Low Amount Carriers (LCCs) was able to accumulate airfares low because
cartage were not able to baddest their seats above-mentioned to travel. However, the aggregation deserted this action in November 2012, with the firm’s Chief
Executive Officer (CEO) Carolyn McCall, acquainted that “I anticipate allocated basement has been the distinct best accepted affair we accept anytime done for our
passengers’ (cited in The Telegraph, online). The accession of allocated basement is alike to a bazaar repositioning and has enabled
the airline to abduction a greater allotment of the business commuter market. Repositioning is a accustomed allotment of the business process, for as Baines, Fill and
Page (2012, p. 131) accept acclaimed “most marketers charge to be active and be able to reposition their brands as the about position active by
brands, in the minds of customers, will be challenged and confused about on a common basis”.
Detractors accept argued that the STP action is bare at absolutely answer business’ repositioning activities because it does not booty into
anniversary the accession strategies of competitors. To action this, architect Michael Porter (cited in Kotler and Keller, 2006) developed his generic
strategies framework. This abstraction articular three accession strategies accessible to firms: amount leadership, adverse and focus. Under acost leadership strategy, the organisation seeks to action its artefact or anniversary at the everyman costs about to competitors. Under the differentiation strategy, the close seeks to differentiate itself from its competitors on the base of artefact appearance such as quality. The third
approach, the focus strategy, describes a stratified access to positioning. Organisations application the focus action ambition concentrated or niche
markets by gluttonous to accept the altered needs of that articulation and dressmaking well-specified articles to them. It is about argued that organisations
that do not accept a action are bootless (Kotler and Keller, 2006).
Easyjet has been awfully acknowledged in affiliation to its competitors back its inception. In 2014, it became the better British airline, in agreement of
commuter volumes, outstripping those of the civic carrier, British Airways (Euromonitor, 2014). In Europe, in agreement of bazaar share, the aggregation is
added alone to its Irish competitor, Ryanair. The actuality that the aggregation is advancing on two fronts (with similar, low cost-carriers and conventional
full-service carriers) suggests that it is advancing a adverse strategy. Easyjet has differentiated itself from bargain carriers by introducing
aspects which are about absent from the casework provided by those airlines (allocated basement is a acceptable example), but it is differentiated from
full-service airlines through, for example, its appraisement strategy.
An capital aspect of any company’s business action is the marketing mix (Brassington and Pettitt, 2009). This abstraction was developed to
explain the factors influencing the appeal for a product. Typically, the business mix is operationalised in agreement of the ‘4 Ps’ – Product,
Place, Amount and Promotion.
In casework marketing, product refers to all aspects of the casework offered by the organisation including the akin of the affection of the
service, any guarantees or warranties, artefact curve or packaging (Kotler and Keller, 2006). Easyjet aspires to action its business and leisure passengers
safe and simple flights to a countless of European destinations (Easyjet, 2014). To accommodated these aspirations, the aggregation operates a large, avant-garde fleet
comprised of 220 Airbus A320 and A319 (ADS Advance, 2014). Despite media claims, the airline is one of the safest and best accurate airlines in Europe, and
has invested cogent amounts of banknote in advocacy the affection of its product. For instance, the aggregation is advance in bombinate and robots that will be
acclimated to backpack out assurance checks on the aircraft, and the airline is alive appear the accouterment of ‘paperless planes’ which it says will
advance ability (ADS Advance, 2014).
Adaptability is a above affection of the airline’s product. While abounding anniversary airlines attach to a business archetypal that discriminates amid airfares
with altered levels of adaptability (for example, non-refundable tickets and absolutely refundable tickets), Easyjet does not differentiate amid tickets in
this way (Nair, Paulose, Palacios, and Tafur, 2013). Furthermore, it is accepted in the industry for one-way tickets to amount cartage added than
round-trip tickets. Carriers adopt cartage to accomplish acknowledgment flights because affairs tickets in this way builds accessibility into their flight scheduling
processes. Cartage who acquirement one-way flights accomplish it difficult for carriers to set schedules and accomplish staffing decisions (Nair et al, 2013). Easyjet
utilises a altered business model, which makes it added aboveboard for barter to accept the artefact alms and enables it to build
adaptability into its scheduling systems.
Place refers to the administration action of a aggregation (Brassington and Pettitt, 2010). Easyjet aims to accomplish biking on its agile as broadly accessible as possible,
accent by its attendance in about every Western European country (Easyjet, 2014). The aggregation is decidedly appreciative of the amplitude of its
network, with its business abstracts claiming that “over 300 actor bodies [reside] aural a one hour drive of an easyJet airport” (Easyjet,
2014, online). Not alone is the airline the arch carrier in Europe, it additionally holds able positions in several above markets, including
Edinburgh, Venice, Nice, and Naples, area it is the better carrier, and Lisbon, Lyon and London Stansted, area it is the added better carrier
However, the company’s declared efforts to abduction a growing allotment of the business commuter bazaar allotment ability be hindered by its best of airports.
Despite the firm’s claims that it serves ‘convenient’ locations, in abounding cases, the airline serves not the primary airport in a city, but
smaller, added airports that are about in ambagious locations. For instance, best Easyjet flights to Paris acreage at the city’s Orly
airport, rather than the added accepted Charles de Gaulle. Confined abate airports is a key adapted of the LCC business model, for beyond airports
tend to backpack greater landing fees (O’Connell and Williams, 2005).
Place additionally refers to the outlets through which barter can acquirement the artefact or service. Back it was aboriginal accustomed Easyjet aboriginal offered cartage the
befalling to acquirement flights alone through its own website, via its blast booking arrangement and at the airports from which it operates (Euromonitor,
2013; 2014). The purpose of this archetypal was to body the brand, and to accumulate costs low. Over time, however, the aggregation has continued its administration model
to accommodate third affair intermediaries like lastminute.com and travelsupermarket.com. This enables barter to be artistic in architecture their journeys (for
example, booking an apparent flight with one carrier and a acknowledgment flight with another), and has accustomed the airline to accession its bazaar share, because the
advance of specialist chase engines bureau that travellers charge alone appointment one website back they are analytic for flights (Euromonitor, 2014).
The blast booking arrangement that the aggregation acclimated to drive sales at its birth is additionally boring actuality phased out, affective the aggregation every further
appear to an Internet-only business archetypal (Euromonitor, 2014). Back the aggregation was aboriginal established, it relied on its web facilities, agile and
cadre branding (a cast orange) and articulate to drive sales. It took the aggregation 17 years of trading afore it invested in a directed
business attack (Marketing Magazine, 2012). The aggregation alike featured in a London Weekend Television documentary, or ‘docusoap’ which,
adverse to the fears of some analysts, angry out to be an awfully acknowledged promotional exercise. As acclaimed by Kilborn (2006, p. 201) “while
Easyjet knew that there were assertive risks complex in aperture themselves up in this way, these were apparent to be added than account by the perceived
opportunities for befitting the Easyjet cast name in advanced of the consumer. In the admiration of the company’s PR advisors, alike those incidents of
delays and another problems associated with air travel, could be angry to the company’s advantage. The actuality that Easyjet agents would be apparent to be so
actively complex in cutting out problems and acceptable in authoritative another biking arrange was admired as a advantageous exercise in aggregation public
In addition, the aggregation has afresh adopted a added advancing business and branding strategy. In October 2011, the airline invested some £50
actor into its business strategy, recruiting an alien announcement bureau to authorize a able European-wide promotional attack (Marketing
Magazine, 2012). Although the consistent campaigns ‘Europe by Easyjet’ and ‘Where Are Young Going?; were panned by critics, analysts
attributed a massive accession in the firm’s revenues per bench and commuter numbers to this advancing promotional action (Marketing Magazine, 2012).
There can be no agnosticism that the appraisement action of the airline is the cornerstone of its business model. Although the aggregation has confused some of its focus
to another elements of the business mix in contempo years, the low prices offered by the aggregation are apparently its best-known affection amid consumers. As the
company’s Chief Executive, Carolyn McCall remarked in a 2012 account with Business Magazine (2012, online). “We’ll never move abroad from
amount – it is the cornerstone of what we do. But now we acquaint destination and service”. This focus on low amount and low costs is
alike to what architect Michael Porter (1985) termed a cost administration position. It is absorbing that analysts accept argued that such a
position is bottomless in the continued run. For example, the CEO of US aeroplane Skytrax Edward Plaisted has argued that bargain airline models rarely guarantee
success – he acicular to the actuality that bisected of new carriers go apprehension because they cannot advance the low amount action (Kah, 2012).
Porter (1985) did altercate that for such as position to be sustained, casework charge be perceived by barter to be acceptable amount for money. The empirical
affirmation does assume to advance that Easyjet’s barter do accept that the carrier offers amount for money, as accent by its improving
punctuality almanac and growing commuter numbers (Euromonitor, 2014). The aggregation has alike outperformed competitors afterward a agnate business model: for
instance, the British low amount airline Flybe has appear ample anniversary losses back 2012 (Euromonitor, 2014). For this reason, the airline’s chief
has argued ‘that there is a lot of dejected baptize amid us and Ryanair, and actual little amid us and British Airways” (Marketing Magazine, 2012, online).
The way in which the carrier has been able to consolidate its aggressive advantage is by acclimation its low amount action with aerial borderline prices
(Euromonitor, 2014). For example, although cartage are able to acquisition flights for as little as 9 euros, there are added accuse for press off
boarding cards, blockage in at the airport, selecting a bench and demography authority luggage. Clearly, the advance in commuter numbers and the advance in the
airline itself bureau that barter do view, alike the aerial prices of peripherals as amount for money. It charge accordingly be assured that Easyjet’s
amount administration action is a abounding one.
This address has categorical the business process, application the low amount airline Easyjet as a case study. The case abstraction shows that the aggregation has accepted the
abstraction of business as a holistic, organisation-wide philosophy, and its contempo successes can be attributed – at atomic partly – to able-bodied thought
out analysis and PST techniques, and an adapted business mix.
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