Marketing in the Age of Technology:
Ryanair
Mike Ward
Salford Business School
University of Salford,
Greater Manchester
United Kingdom
Ryanair

http://www.ryanair.com/site/EN/
Lecture Outline





The Story of Ryanair
The Marketing Strategy of Ryanair.
The Leadership in Ryanair
YouTube and Ryanair
How can Ryanair remain innovative and
maintain competitive advantage?
Ryanair





Started in 1985
Currently in 26 European countries, 694 routes
133 aircraft
Employs 1400 people, flies 52 million passengers,
80% passenger loading on aircraft
5 main bases-Stansted (London), Charleroi
(Brussels), Marseilles, Madrid, Bremen
Ryanair 2007 Report



Traffic Grew by 22%
Cash held-E2.2 Billion
153 new routes
Pre 1990 Airline Industry





Little chance of new entrants
High ticket prices
Limited availability of purchasing ticketsTravel Agents, Airports
Limited choice of departure airports
No choice of airline
The Airline Environment-pre 1990






No aggressive competition
Sharing Routes
Fixing Prices
Dominated by a few “global players”
Government intervention
Generally aimed at the “business flyer”
Pre-1990 Airline Industry

Dominated by big
national airlines

Cartels

Route Monopoly
1990s-change in the environment


Privatisation
Deregulation
Relatively free market
More choice for the consumer!!
Birth of the “Low Cost” Airline
On-Line Booking
No Seat Reservation
Pay for Seat only
Led to:
Entrance of new players-Go, Wizzair, Easyjet
and
Ryanair
The “ No Frills” Industry-2009
60 across Europe
 Easyjet, Ryanair, BMI Baby (U.K.)
 Air Berlin, Germania Express (Germany)
 Wizzair (Poland & Hungary)
 Air One, Volare (Italy)
2007 22.7% growth in seats

Understanding the environment
Very important because it is changing all the
time!!!
Customers
Competitors
Government
Economic factors
Social factors

The airline environment now






More competitive
Lower Prices
Alliances between “big players”
Emphasis on short-haul due to decline on
long-haul
Increase in low cost carriers
Many airlines copying “low cost model-ebooking
What is strategy?

A means of achieving an objective

Aims to transform corporate objectives in to a
competitive market position

Is about SEGMENTING markets and
DIFFERENTIATING products from the
competition
Why is it difficult to develop a
strategy?

Requires a good understanding of where you
are now-your BUSINESS POSITION

Requires an ability to motivate the whole
business-ability to CHANGE

There has to be a VISION-where do we want
to be?
Basic strategy options- Michael Porter

Cost Leadership- using strength to negotiate lower
prices from suppliers

Focus- specialising in marketing to specific market
niches/segments
Differentiation- being different to competitors,
offering more value to customers
How does Ryanair use these?

Ryanair’s Competitive Advantage
Low Cost
• Aircraft at a discount
• Low cost airports
• Fast turnarounds
• No travel agents
• Short routes
Ryanair’s Competitive advantage
Focus
•
•
•
•
Infrequent flyers/holidaymakers
Specific cities in Europe
Consumers only
Small destination and departure airports
Ryanair’s Competitive advantage
Differentiation
•
•
•
•
•
On line booking
Easy boarding
Cheap prices
Access to other services-Hire cars
Aggressive advertising and promotion
The Competitive Environment





More competition but can the big airlines –
British Airways, Air France, really compete?
Impact of EU legislation against subsidies
from airports (Charleroi)
Environmental Issues
Fuel prices and availability
“The Credit Crunch”
Michael O’Leary-CEO
A Maverick. Is Ryanair a maverick
player?
Does not conform
 Unpredictable
 Mean
 Tough
 Ruthless
Michael O’Leary-Ryanair Chief Executive

Ryanair- Controversy, Publicity, No
Compromise- The Price is the
Cheapest!!!
http://www.youtube.com/watch?v=9wGkbzOk3J
c&feature=related
http://www.youtube.com/watch?v=CgA0DkuIAC
U&NR=1
http://news.bbc.co.uk/2/hi/business/7914542.st
m
Ryanair- using social sites to promote
themselves as a young, fun airline

http://www.youtube.com/watch?v=A8d2fmkQ
DXU&feature=related
The future for Ryanair




Merger with Aer Lingus?-might not be
allowed as creating a monopoly
Transatlantic Flights?- 20 euros to U.S.A.
Purchase of U.K. Airport?- possibly Gatwick
Looking to maximise revenue-fat people pay
more?!!!
Conclusions

Ryanair has changed Air Travel for all of us

Are we prepared to accept extra charges as
long as the price is low?

In a very important industry, can nonnationalist airlines survive?
Thank you

Thank you very much for your attention
Mike Ward-M.F.Ward@salford.ac.uk