As business firms in the airline industry, both easy jet and emirates have implemented various marketing strategies in order to achieve some competitive advantage. As the number of competitors increase alongside the increasing nature of the airline industry, a number of factors affect the market share of each airline, thus the need to develop several strategies in order to lead the airline industry in an effective way (Proctor 2000). This compare the strategic , targeting and positioning strategies adopted by these companies, while also presenting the SWOT and Pestel analyses of each.
Strategic, targeting and positioning
Easy jet has adopted a number of marketing strategies namely product differentiation, acquisitions and mergers, website, advertising and marketing campaigns. Easy jet operate flights which provide consumer value for the money since the gains emerging from the transaction with respect to the price seem to be favorable unlike their competitors. Because they are aware that there are customers who are sensitive to price issues, easy jet have adopted a customer price approach which maintains a sustainable competitive advantage while retaining the benefit though the price is reduced (Costa 2011). Another successful marketing strategy is the location aspect of the destinations in which easy jet operates its flights.
With the aim of achieving a competitive advantage over other airline, easy jet operate flights to major leisure and business airports in Europe in order to avoid long distance transfer by customer to their final destinations. Easy jet have also establishes an enterprising corporate image through a total utilization of the available marketing channels. The company has ensured its presence is known everywhere. Lastly Easy jet has strategically positioned itself through product differentiation. It offers a differentiated service, operating many prime routes to main airports, thus shifting concentration to high yield traffic though abandoning operative and economic benefits of secondary airports. In addition, Easy jet offers various structures of merchandise differentiation (Kotler & Armstrong 2004).
On the other hand, emirates airline has emerges as one of the airline which hardly experience an economic crisis and airline industry down turn. The emergence of Dubai as a continental tourism and business hub, has offered emirates airlines sufficient room to increase its regional customer traffic. The rapidly increasing nature of Dubai’s economy had also positioned Emirates airline in a global platform to compete with other airline through the operation of an open sky policy (Hough 2010). Dubai is also best positioned to connect between Asia, Europe and Australia, thus as the operational hub, Emirates Airline has been using it to promote their marketing efforts enabling them to succeed in establishing a market wide network.
The marketing strategies which have been adopted by Emirates airline include market penetration, market development, product development and product diversification. Emirates airline have focused on maintaining the market share of its services and products; protecting its dominance in the market; restructuring a mature market in order to drive away competitors; and also maintaining the customer base. The airline is also extending to new routes while introducing new service to the current markets. Lastly, the airline has exploited the competitive advantage offered by the quality of airline services; it has followed the path of European low cost carriers; by operating a low cost airline, Air Arabia within UAE (Kumar & Steenkamp 2013).
SWOT and pestle analysis
Easy jet
The strengths of Easy jet is attributed to its ability to offer a simple price structure with a good value for money while sustaining low prices. They also have a strong brand across various European countries. However its weakness have emerged over time; the advertising costs and airport charges have always been on the rise. Despite that, Easy jet has a number of opportunities. With the increasing customers’ demand for certain facilities, easy jet my look into the development of better services. Lastly, easy jet faces a threat in the increased number of competitors (Costa 2011).
The political environment of Easy jet is favorable; it emerged coincidentally with expansion of cost airline industry, and has operated under relaxed rules allowing it to expand operations. The economic environment is proving to be a challenge to easy jet; since it is a low cost airline it is easily hit by economic crisis. The airline also position itself at a good social position as their product differentiation has allowed the creation of behavioral segmentation giving a competitive advantage. Easy jet has also utilized technology to the fullest, in its marketing strategies while enjoying a legally stable environment (Costa 2011).
Emirates airline
Emirates airline has a strong financial base, a huge customer base and cost advantage. However, it has not diversified enough to maximize profits. It has numerous opportunities such as financial markets, product and service expansion, business takeovers and acquisition; with little threat in cheaper technology, government influence, competition and economic crisis (Hough 2010).
Emirates Airlines has been very successful owing to the favorable political scene in UAE. Various countries have been aligning themselves with UAE on trade partnerships especially in the airline industry. The economy of UAE has been rapidly growing thus affecting the overall income of the country. The airline operates in a region with high labor sources thus low labor costs. The airline industry has experience an increased advancement in technology thus able to utilize it to its advantage. The airline operates under a paternal legal policy like in other developed states (Kumar & Steenkamp 2013).
Reference list
Costa, M. (2011). Easy Jet. Marketing director Peter Duffy on spreading the airline's wings in a troubled Europe. MARKETING WEEK. 26-27.
Hough, W. R. (2010). Emirates Airline: the pride of Dubai. Airliners (Miami, Fla.).23.
Kumar, N., & Steenkamp, J.-B. E. (2013). WE ARE THE CHAMPIONS. Business Strategy Review. 24, 52-58.
Kotler, P & Armstrong, G, 2004, Principles of Marketing, Tenth Edition, Pearson Education Inc., New Jersey.
Proctor, T, 2000, Strategic Marketing: An Introduction, Routledge, London.
