Issues and Barries during Market Planning
A marketing plan is prepared by organization to identify its current market position. By using it, enterprise can identify its strengths and weakness and on that basis it can grasp market opportunity and attract customers toward its brands. In the present case concern, EasyJet organization has been taken and its present capabilities have been evaluated with external environment audit of the firm. The airline enterprise started its business operations in 1995 and it is providing services in more than 30 nations with help of 200 aircrafts. The research report focused on various barriers and ethical issues occurring in market planning and providing solutions to overcome it.
Marketing planning plays a vital role in creating different kinds of promotional plans and establishing communication with customers in an appropriate manner. It is a part of an overall business plan which outlines a company’s overall marketing efforts. In the cut throat competitive market, it is essential for the corporation to adopt changes arising in the market to meet its objectives in the decided time frame (Frank, 2011). Traditional marketing uses four P's including product, planning, place and promotion with consideration of lucrative packaging and branding of products. On the other hand, in the new marketing era, creativity and instinct are also required to take proper benefits of marketing resources to achieve organization goals in better manner. Top managers of the EasyJet have continuously focused on the implementation of new innovative technology in its business to better compete with other business rivals present in the aviation sector.
The aviation firm uses situational analysis technique to recognize the impact of various situations and external factors on the performance and productivity of the company across the world. It is not an easy task for it to handle changes occurring in the global market regarding to security procedures, regulatory changes, rising fuel price and better competition with low-cost competitors etc (Proctor, 2014). In such kind of situation, it is necessary for EasyJet to understand needs of its travelers and norm of public authority of different nations. Market research, maintaining information of regular customers, appropriate advertisement & marketing strategies and promotion plan tactics would be beneficial for the enterprise in changing modern era. Airline Company uses social media marketing and tries to provide various ranges of tickets to its customers according to their needs to increase its customer base. By applying innovative marketing techniques like social media and e-Wom, it can lead the market.
Capabilities of EasyJet can be evaluated with help of its SWOT analysis. It is a very accurate and effective method to investigate strengths, weakness, opportunity and threats of the business operations of the airline firm.
It is a well known brand of the UK and it offers various lucrative services at compatible price across various destinations of Europe. The main aim of the enterprise is to make travel easy and affordable for its customers, so that they can enjoy great flying experience by providing safety, security and integrity in its business operations (Sorensen, 2005)
The organization reduces training and maintenance costs by focusing on development of single type of aircrafts to highly attract consumers towards brands. Top managers of the enterprise are introducing e-tailing service to retain existing airline consumers as well as attracting new consumers in a proper way. The organization attracts customers from across the European and non-European countries by offering quality of service at low price. According to annual report of EasyJet, in 2013, 56% of its passengers used its services from outside the UK.
The major weaknesses of the airline firm include reducing operating margin, high sensitivity towards additional charges and alteration of taxation rates. It is facing problem related to retention and expansion of its business across the globe. The corporation has introduced e-tailing technique but, it is unable to properly implement its strategy. In the UK, airline sector is of oligopoly nature where few sellers are present in the market but they are creating problems for the firm in terms of price and discount offers etc. (Annual Report, 2013).
The company is growing very rapidly and providing benefits to customer in terms of low fares and it uses advanced technologies like mobile devices and websites to enhance its operational excellence. The airline enterprise can grasp market opportunity by providing various kinds of holiday packages (festival and seasonal offers) and maintains continuous supply of manpower to offer better quality of service in decided timeframe (Annual Report, 2013)
The airline industry is facing problems related to strict aviation law and public regulations applied by the European government. Environmental factors (Terrorism and War threats), technological (Competitors continuously adopts new innovative technology to compete with the firm), political (Increasing environmental tax and dependency on third party aircraft providers) and economic (Currency fluctuation and economic downturn) pose threat to the organization.
After the analysis, it can be said that UK aviation industry is going through a tough competitive market and to survive in the market, it is necessary for Easy-Jet to fulfill the needs and desire of its customer by providing quality of services on time. Along with this, the organization should also try to develop its promotional and advertising campaign strategy by considering customer centric approach. With help of Porter five forces model, analysis of the UK airline sector can be done. Industry analysis of airline companies matrix also helpful for the company to analyze aviation industry (Yan, 2009).
Political and legal factors: The UK based airline enterprise is facing political and legal issues regarding tax policy and threat of war in the Middle East etc.
Economic factors: Inflation and increasing interest rate have created negative impact on the functioning of the EasyJet because if fuel price will increase then it will create burden on the firm and its resources so, customers will also get affect from it and pay high fares during journey (Elsa, 2014).
Social -cultural factors: Lifestyle and demographic features (age, sex and customer perception) of the people also influence the business of the enterprise because if firm would unable to provide better quality of services at compatible price then they will switch towards its competitors. French and German publics have facing problems related to reluctance to use of credit cards over the Internet and mobile (Elsa, 2014).
Technological factors: The firm took initiative to adopt new technology in its operations. For instance, use of mobile phone and Internet in distribution can offset upwards pressure on the firm to increase charges of the flights.
Environmental factors: The European Union has developed various strict regulations and environment law to control over carbon emission. The airline firm has introduced Carbon Offsetting system to overcome its negative impact on the environment.
In the UK aviation market, bargaining power of buyer is low and suppliers’ power is high because few airline business rivals and substitutes are present in the market but they create challenges for the enterprise. Hence, organization should focus on adopting new innovative techniques in business operations to better compete with competitors. The major competitors of the firm are British Airways, British Midland and Ryanair. From the figure, it is clear that Easy-Jet and Ryanair come in exploit area and it is necessary for the company to make effective utilization of its resources to increase profits margin.
Balance score card method can be used by the corporation to analyze the aviation sector of the UK. By using this tool, the aviation firm can manage its financial and non-financial data in an appropriate manner as well as it will also be beneficial for the enterprise in increasing its market share and skills of its employees etc.
Easy-Jet can establish better relationship with its customers by applying going to market concept in its business operation. But this method also has some drawbacks like uncertainties in the process of advertisement and lack of information accuracy etc. Only on the basis of promotional activity, an organization cannot achieve success in the market.
Easy-Jet is facing various issues including organizational barriers, lack of expertise and knowledge related to new technology, failures in prioritizing marketing objectives and communication barriers.
Organization barriers: The policy and regulations developed by the company have a direct impact on the functional aspect E.g. when firm adopts new technology in its business then its burden creates in financial resource of the firm.
Lack of expertise and knowledge related to new technology: Lack of integration between different department members and cultural difference between them are creating challenges for the enterprise to apply the strategies as per the need in an effective way (Naik, Raman and Winer, 2005).
Failures in prioritizing marketing objectives: The firm is facing problem related to selection of marketing tool to meet its objective. Some time managers of the enterprise are unable to tackle problem occurring due to improper selection of promotional and advertisement tools.
Communication barriers: Easy-Jet develops a common marketing plan for all countries that creates problems in terms of cultural and language differences. The enterprise should take care of it and design unique marketing plan by considering it. It will also help firm in proper implementation of marketing planning way (Naik, Raman and Winer, 2005).
Easy-Jet may overcome barriers arising in its marketing plan by following manner:
The airline enterprise can hire market research firm to monitor over market and keep updating it regularly about new changes occurring in the market. By appointing research team, managers of the organization can take effective decisions and grasp market opportunity in an appropriate manner (Juin, 2000). On the other hand, communication related problem can be reduced by increasing integration between team-members and departments of the firm. By providing proper training to its staffs and appointing talented employees, the airline company can overcome communication and prioritizing marketing objectives related problems and attract customers towards its brands.
In the global era, Internet creates great impact on the mind of customers and it provides benefits like most cost-effective distribution channel, information travel faster and makes transaction quicker etc. Along with Internet benefits, some problems are also occurring by it like commercial frauds and information stolen etc (Gilligan and Wilson, 2009). High level of commercial fraud could impact on Easy-Jet marketing planning because if firm will fail to provide security and safety to its customers then they would not use services and products offered by the firm. As well as they will also discourage and never book their seats online.
Marketing planning plays a vital role to promote the brands of the enterprise and it is a systematic process that help firm in introducing new services. In the present case, promotion plan has been developed for the EasyJet so, company can attract customers of China to avail its services. To proper implementation of marketing plan, it is essential for the enterprise to include various factors like cultural and geography in its plan (Cohen, 2005).
The Easy-Jet enterprise can magnetize Chinese people by targeting the middle income and age group people. By providing discounts and low fare services to their customers, the enterprise can attract them towards its brand as well as increase the number of visitors to UK. Marketing mangers of the airline firm should consider their requirements and on that basis, implement marketing plan in an appropriate manner (Yan, 2009).
The main objective of the company is to increase its customer base and expand its market within the China. Easy-Jet is offering newer flights in different routes of the country with various discounts and holiday packages to the potential customers to increase its sales revenue by 20%.
The organization can use its brand name and attract customers towards its brand by offering holiday packages and can provide discounts in festive and seasonal occasions on flight from Gatwick to Hong Kong route. By considering cultural and geographical needs and penetrating middle class people, managers of the enterprise can fulfill the demands of its customers and enhance the market share also (Annual Report, 2013).
Marketing strategy of Easy-Jet is an important part of its corporate strategy. Both these strategies are related with each other. Easy-Jet enterprise frames corporate strategy to increase profitability of its business and diversify the product or service line of the enterprise to enhance its business in China. Marketing strategy of the company includes various factors related to product, price, place, promotion etc (Easy-Jet, 2014). Easy-Jet is introducing new strategy to start its operations in China. For this, it has developed a promotional plan and main aim of the plan is to attract more customers of China to visit UK and to fulfill its objective, the enterprise has arranged flights between Gatwick and Beijing airports. For successful deployment of promotional plan, it is necessary for the manager of the enterprise to consider cultural needs and preference of Chinese people. The airline can also hire advertisement firm of China to transform the message for Chinese citizens. It can attract them by providing various facilities like free accommodations and food in flights.
Test marketing and Observation techniques help the organization to implement its service. By using Test marketing approach, it can test services before launching in China together with examining that the strategy applied will be effective or not in future. Observation method would be advantageous for the airline to observe the tourists perception and identify their needs and demands (Yan, 2009).
Easy-Jet should set competitive price for Chinese citizens so that it will be able to fulfill needs of both middle and higher income level people. The firm should connect its pricing strategy with marketing objective so that its overall sales revenue and customer base will increase.
The airline can promote its products by applying social media, television, print media, radio, print, mobile, social media, spokesperson and Internet techniques etc. As well as firm can also contacting with local advertising companies of china to transform its message to Chinese citizens. Easy-Jet can also give advertisement on social media to promote its products in a proper way (Mason, 2007).
The enterprise can distribute its tickets by using website and will also contact with travel and tourism websites for booking its seats in an appropriate manner. The enterprise can also sell its tickets by airport counters to provide easy accessibility provides to its customers.
The organization can implement its marketing plan in a successful way by setting marketing strategies and allowing management to take decision as per the set goals of the enterprise. By proper applying marketing mix, the Easy-Jet firm can enhance its profit margin and market share in an appropriate manner (Mason, 2007).
EasyJet can also distribute its tickets through Mobile Apps and allows customers to book their tickets online in a safe and secure way so, buyers would be able to book tickets as per their needs and wants on stipulate time. Along with this, Price skimming would be beneficial for the enterprise to fulfill the huge demand of EasyJet flights customers.
Product life cycle plays a vital role in launching a new flight service between Gatwick to Hong Kong airports. By proper implementing promotional service, the enterprise can offer quality of service at compatible price to its customers. As well as it would be beneficial for the Easy-Jet enterprise to take competitive edge over other business rivals in future market also (Wilson and Gilligan, 2005).
The research report concluded that marketing planning plays an important role in success of the firm and Easy-Jet can attract customers towards its brands by providing various services like holiday package and discounts etc. Promotional activities and proper implementation of the marketing plan are essential for the organization to attract large customers of China and motivating them to visit UK. By overcoming the barriers, the airline can remove the ethical issues occurring in the business.
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