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Ryanair Case Study

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Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Price also communicates the company’s intended value positioning of its product or brand. A well-designed and marketed product can still command a price premium and reap big profits. But new economic realities have caused many consumers to reevaluate what they are willing to pay for products and services, and companies have had to carefully review their pricing strategies as a result. One that caught the attention of consumers and businesses is Ryanair, with an unusual pricing strategy.

Ryanair was an unprofitable, high-cost traditional airline before it completely – and quite successfully – transformed itself into a low-cost carrier. Today, Ryanair is Europe’s most successful low-cost airline. Ryanair has opened the skies to more passengers and has completely revolutionized air traveling. Ryanair has successfully matched a market need by capturing the imagination of overcharged European travelers, tired of costly tickets. Ryanair focuses its effort on its low-cost marketing strategy and uses a range of technologies both internally and externally. It researches the market and understands its consumers, markets and competitors. Ryanair understands the consumer segments and chooses to target the price-conscious consumer. It is positioned as the low-cost, low-service alternative to the full-service airlines. Marketing is designed to create the strong brand that is Ryanair in the minds of the European consumer. To manage its brand image Ryanair uses 7Ps of the marketing mix:


  • Product/Service: Ryanair’s service offering is basic and low frills – an unassigned economy seat on an aircraft;
  • Pricing: Ryanair captured market share and brand loyalty in the low price, low service area.
  • Place/global supply network and channels: Ryanair operates from the lowest-cost airports, manages a network of suppliers and uses only one direct channel to market.
  • Promotion/Communication: Promotion is minimal and inexpensive, focusing on Internet marketing;
  • Process: Ryanair has eliminated all unnecessary service processes on board as well as for bookings and check in;
  • Physical evidence: Ryanair’s planes have very basic and minimal interiors;
  • People: Ryanair’s staff are focused on the low-cost, no frills marketing strategy. It implements its marketing program and manages its return to investors as a core focus.  In total, Ryanair is an excellent example of a company that understands both its consumers and the need for a total company marketing effort in creating a strong brand in a market dominated by major brands;

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