Marketing Mix Blog. Emirates Airline vs Ryanair Airline

I love to travel, my favourite mode of transport is by air. Airline travel, it's the fastest way to get from A to B but in getting there, is paying a premium price always necessary? That largely depends on where you're going and what is important in making your journey memorable. Take for example Emirates and Ryanair, both successful with a very different approach to their marketing.

So what is the Marketing mix? Its the 7p's: 

(https://www.digitangle.co.uk/wp-content/uploads/2013/11/marketing-mix-7P.jpg)

• Product- "A product can be a good, a service or an idea"  "aspect of the marketing mix that deals with researching consumers product wants and designing a product with the desired characteristics" Sally Dibb, Lyndon Simkin, William M. Pride, O.C. Ferrell (2016) Marketing Concepts and Strategies. 7th Edition. PG 28

• Price- "establishing pricing policies and determining product prices" Sally Dibb, Lyndon Simkin, William M. Pride, O.C. Ferrell (2016) Marketing Concepts and Strategies. 7th Edition. PG 29

• Promotion- "communication activities that are used to inform one or more groups of people about an organisation and its products" Sally Dibb, Lyndon Simkin, William M. Pride, O.C. Ferrell (2016) Marketing Concepts and Strategies. 7th Edition. PG 29

• Place- "must be available at the right time and in a convenient location" Sally Dibb, Lyndon Simkin, William M. Pride, O.C. Ferrell (2016) Marketing Concepts and Strategies. 7th Edition. PG 28

• People- "reflects on the level of customer service, advice, sales support and after sales back-up involving recruitment policies, training, retention and motivation of key personnel." Sally Dibb, Lyndon Simkin, William M. Pride, O.C. Ferrell (2016) Marketing Concepts and Strategies. 7th Edition. PG 30

• Process- "The systems and processes of the organisation affect the execution of the service" (http://marketingmix.co.uk)

• Physical Evidence- "In the service industries, there should be physical evidence that the service was delivered. Additionally, physical evidence pertains also to how a business and it’s products are perceived in the marketplace." (http://marketingmix.co.uk)

Emirates vs Ryanair 

"Emirates' solid brand positioning is grounded in its commitment to delivering best-in-class products and services both in the air and on the ground, and staying attuned to its customers' needs" (http://www.emirates.com/media-centre/emirates-brand-value-grows-17-to-reach-us77-billion )

"Ryanair's mission statement is to offer the lowest fares possible on all routes." (http://www.reference.com/business-finance/ryanair-s-mission-statement-f7781d10bf29c633)

There is no doubt that the one or both of these mission statements will resonate with the consumer but how do each airline go about promotion and delivery to achieve their goal? 

Product

Emirates Airlines was founded in 1985 by the Dubai government and has been reported to be the "worlds most valuable airline brand" (2016 Brand Finance Global 500 report).  Emirates Airlines have a fleet of more than 230 aircraft, consisting of Boeing 777's and Airbus A380 with a further  62 A380's on order, employ around 62,000 staff all over the globe and travel to over 150 destinations. 

Emirates Fleet at Dubai International | Timelapse| Emirates Airline

  

According to Emirates Media Centre in 2016 the Emirates brand value has grown by 17% to reach US$7.7 billion, doubling its value from 2009 when it first appeared on the Brand Finance Global 500 report (http://www.emirates.com/media-centre/emirates-brand-value-grows-17-to-reach-us77-billion).  Listening to their customers really works huh? 

Emirates Fleet Story | All Airbus A380 and Boeing 777 Fleet

"We invest strategically in building our brand and it is reflected in everything we do. We have differentiated the Emirates brand not only through our marketing and sponsorships initiatives, but also through our competitive combination of quality products and services, and technology-drivencustomer initiatives that out teams deliver everyday both on the ground and on board. We work hard to identify, anticipate, and meet the ever-changing needs of our diverse global audiences, as we firmly believe that this will position us to outperform in our industry now and in the future." 

(Boutros Boutros, Divisional Senior Vice President Corporate Communications, Marketing & Brand)

Let's take a look at the products and services on offer from Emirates…

Jennifer Aniston TV commercial | A380 | Emirates

They don't half make it easy to book a flight, check in online, drop off your bag and relax in the Emirates lounge, you may even have arrived in a chauffeur driven Emirates car  and on arrival fast-track through immigration - you have to travel business or first class to experience the latter but initial impression at the check in desk is that you are engaging with a premium service provider.  Even the distinctive uniform screams class, we all judge a book by its cover. 

Onboard if you are fortunate enough to have the financial capability to fly First Class, you may as well be staying in a 5 star hotel in the sky.  You benefit from your own private suite, personal dining service, onboard shower spa with complimentary skin care products  and luxury pyjamas for sleep.  On the A380 you can take a walk and enjoy the onboard lounge with its selection of premium spirits, exclusive wine, champagne and cocktails. You can check out the first class experience below.
(http://www.emirates.com/uk/english/flying/cabin_features/first_class/first_class.aspx)

Fly Business Class, you maybe don't get the spa shower but you do have the luxury of a fully reclining seat which provides a comfortable bed for the journey. You can check out the business class experience with the link below.
(http://www.emirates.com/us/english/flying/cabin_features/business_class/business_class.aspx)

For most of us, economy class is what our pocket can fund but with Emirates this still offers a product well above that of its competitors to include complimentary bar, meals and the highly acclaimed ICE an award winning inflight entertainment system.   With 2500 channels, onboard wifi connection (charged) and telephone at your fingertips - why sleep through the flight?!
You can check out the economy experience with the link below.
(http://www.emirates.com/tz/english/flying/cabin_features/economy_class/economy_class.aspx)

A success story no-one would refute but still they continue to invest in new technology, all of which focus on making improvements to further enhance the customer experience.

Price and Process

What it will cost for you to travel with Emirates depends on what product you choose (First, Business or Economy),  the date of travel and whether you require to be able to change your ticket i.e. flex.   If you were to travel over the coming week a First class ticket from Glasgow to Dubai will set you back around £3400, Business Class  around £2300 and Economy Class £380  one way.

Emirates frequently contact those who have registered with them by email to advise of offers, upcoming incentives or fare sales.  These emails can be frequent but for the main are pertinent to particular routes and subject to specific dates.

It's easy to book - you can call, logon to www.emirates.com or download the Emirates App for your mobile device. Payment is simple too, Emirates accept the vast majority of Credit (fee applicable) and Debit cards. If you have travelled with Emirates before, you will have been invited to join their Skywards programme and earn miles each time you fly with them or their partner airlines.  Everyone loves something for nothing, accrue 4500 Skyward miles you already have 100AED to spend.  One economy flight will pocket you 2100 Skywards miles! 

Emirates know that booking a flight when you are trying to arrange a family holiday can be stressful, to help you along Emirates now allow you to reserve your flight at the advertised price for a small charge and, if you proceed to confirm your booking - the earlier charge is deducted from your costs, every little helps.

Promotion

A masterclass in marketing - Emirates continually promote their products through a variety of channels. 

They quite literally have video advertisements online for almost every aspect of the business. 

• Watch an Emirates A380 land in many an airport throughout the world. The most memorable moments on Earth | Emirates Airbus A380 | Emirates (http://www.emirates.com/english/about/advertising/advertising.aspx)

• Meet the diverse Emirates crew who "share a smile in 120 languages" (www.emirates.com) Share a smile in 120 languages | Emirates (http://www.emirates.com/english/about/advertising/advertising.aspx)

• "Hello tomorrow" anthem….tomorrow brings us all closer. The Hello Tomorrow Story |  Emirates (http://www.emirates.com/english/about/advertising/advertising.aspx)

• Centre of the world, I'm convinced that Dubai Airport is "the perfect hub for an expanding global network'.

                    Centre of the World (http://www.emirates.com/english/about/advertising/advertising.aspx)

• Gastronomia "this commerical shows that Emirates is all to happy to meet high expectations when it comes to food". (http://www.emirates.com/english/about/advertising/advertising.aspx)
• Journey "this commerical shows how Emirates has taken luxury travel to new heights with First Class private suites" http://content.emirates.com/downloads/ek/trailers/J (http://www.emirates.com/english/about/advertising/advertising.aspx)
• Creature comforts "this commercial shows how we make our customers as comfortable as possible even before they take to the air". Emirates  "Creature Comforts" (http://www.emirates.com/english/about/advertising/advertising.aspx)

• Route map "from a travellers perspective this commercial shows the breadth of destinations Emirates now offers across the globe". Emirates Route Map - Fly Emirates (http://www.emirates.com/english/about/advertising/advertising.aspx)

• ICE "with snapshots from the world of film and tv this commercial showcases the ICE inflight entertainment system" Inflight Entertainment (http://www.emirates.com/english/about/advertising/advertising.aspx)

• Chauffeur Drive "from the back of a chauffeur driven car this commercial shows the sights and sounds of some of the worlds greatest cities"

Chauffeur-drive service (http://www.emirates.com/english/about/advertising/advertising.aspx)

Inflight magazines - a captive audience

• Open Skies - voted the worlds best by readers of executive travel
• Portfolio - exclusive business magazine for Business & First Class passengers

Social media is here to stay and on the increase across all age demographics.   A significant investment from Emirates ensures that they have personnel working round the clock to deal with any enquiry from this media source.  Without doubt, they have their strategy right.

• Most followed airline on Instagram with 1.8 million followers (https://www.instagram.com/emirates/)
  
• Twitter, around a cool 807,700 followers  
  
                                            (https://twitter.com/emiratesref_src=twsrc%5Eappleosx%7Ctwcamp%5Esafari%7Ctwgr%5Eprofile) 

• Facebook, no doubt that they are well liked with almost 6.6million likes (https://www.facebook.com/Emirates)
  
• Youtube, you can't help but watch with the 174,706 others who have subscribed (https://www.youtube.com/user/EMIRATES)
  

Emirates sponsorship is a very good way of capturing an audience all over the world.

I'm sure there are many businesses who would relish the opportunity to have Emirates sponsor them but sports seem to win out.  Emirates sponsor 7 main sports around the world, football being the most prominent.  Partnerships with AC Milan, Arsenal, Real Madrid and PSG ensure that the Emirates brand gets maximum exposure every time these teams step on to the field.  Going a step further, we have the Emirates stadium, home to Arsenal since 2004 - the biggest club sponsorship in English Football history.  Of course, football is the only sponsorship sport - you'll see the Emirates logo at major golf events, cricket matchs, rugby, tennis and motorsports.  EXPO 2020 features on the fuselage of many aircraft and I would expect to see the brand in stereo at this event in the UAE.

Place

Based in Dubai, UAE, Emirates fly to over 150 destinations but their focus for growth is a pathway in to the Americas.  With so many destinations, they are now a well known and respected luxury carrier with outstanding brand recognition. 

People

How do Emirates create such brand ambassadors, in an industry where customer service is key to success the training academy is paramount to their goal. Emirates pay immaculate attention to how they provide their service by making sure that the crew know how to carry out their duties to the highest degree, "All Emirates Cabin Crew are provided with seven weeks of Ab Initio training, in a dedicated state-of-the-art Cabin Crew training facility, at the Emirates Aviation College" (http://www.emiratesgroupcareers.com/english/Careers_Overview/cabin_crew/crew_training_career.aspx)

When I think of Emirates the first thing think about is the service that is provided by the crew and personally I do not think it could get any better. Therefore the effort that Emirates put in to train their crew obviously pays off and it makes me feel like they really care about how the customer is feeling during their experience with Emirates, therefore providing a positive attitude towards the customer service that they provide.

To be honest could it get much better working for Emirates? Probably not, the crew get to travel the world while doing a job that they enjoy, including the perks, recognition and reward.
"As Emirates Cabin Crew, you'll have the chance to travel the world. With a range of ticket options available for the stand and their eligible dependants, you can enjoy your vacations in over 100 destinations worldwide." (http://www.emiratesgroupcareers.com/english/Careers_Overview/cabin_crew/crew_training_career.aspx)

Lets now look at Ryanair and their approach to marketing. Ryanair have the reputation of providing an economy service at very good rates. This is their main marketing approach and it has proven to be a very successful marketing strategy.

"Ryanair is Europe's favourite airline, carrying 117m p.a on more than 1,800 daily flights from 84 bases, connecting over 200 destinations in 33 countries on a fleet of over 350 Boeing 737 aircraft, with a further 315 Boeing 737's on order, which will enable Ryanair to lower fares and grow traffc to 180m p.a by FY24." (https://www.ryanair.com/gb/en/useful-info/about-ryanair/about-us)

Product, Price, Place

Ryanair was founded in 1985 by the Ryan Family "with a share capital of just £1 and a staff of 25." (http://corporate.ryanair.com/about-us/history-of-ryanair/)

The first daily flights departed in 1985 from Waterford in the Southeast of Ireland to London Gatwick. The planes flying were "15-seater Bandeirante aircraft". 

In 2014 Ryanair serviced 90.6 million customers "with an average fare of just €47 and no fuel surcharges." (http://corporate.ryanair.com/about-us/history-of-ryanair/)
This highlights how Ryanair has grown in the past 30 years.

When I think of Ryanair, as I'm sure many others do, I think of cheap and cheerful but is this the whole story. Its unlikely that any business could be this successful without sound market research as to what their customers want and are willing to pay. When we look at the product some very interesting facts come to the fore. Ryanair's Passenger Charter States:

"Ryanair believes that any worthwhile passenger service commitment should involve commitment to low price and high punctuality. That's why Ryanair publish its Customer Service Statistics each month and these confirm that Ryanair is Europe's No 1 for Customer Service with unbeatable prices and punctuality." (http://corporate.ryanair.com/about-us/passenger-charter/)

When it comes to passenger safety Ryanair have an excellent safety record. Ryanair's policy of exclusively operating Boeing 737-800 specs is good for fares but also for safety. The average age of the Ryanair fleet is 5.5 years and with the latest orders is set to get younger. (http://corporate.ryanair.com/about-us/our-fleet/)

In order to keep fares low Ryanair are adopting eco-friendly strategies which in turn boosts their brand as it is considered to be Europe's Greenest Airline which will appeal to those travellers concerned about trying to reduced carbon footprint.

"Among the 20 largest airlines by passenger volume, the cleanest, Ryanair, uses barely more than a third the fuel to transport its average passenger one mile compared to the least efficient. (http://corporate.ryanair.com/about-us/sustainability/)

Ryanairs product grows in appeal to their own customers base and those of their competitors by introducing 'Ryanair's Lowest Fare Guarantee- Or We Pay You Double the Difference'. Although it has to be acknowledged that this guarantee comes with a lengthly list of points in the Terms and Conditions.

Ryanair's- Did you know Facts and Figures belie the fact that Ryanair is viewed as "a cheap and cheerful airline". (http://corporate.ryanair.com/about-us/fact-and-figures/)
Ryanair operates over 550,000 flights a year and in the last 12 months 90% of those flights arrived on time. Another fact to be considered is that Ryanair also cancels fewer flights than any other airline. Is that good service or what?!

In 2014 Ryanair launched their 'Always Getting Better' Programme in their efforts to continue improving all aspects of the customer experience through service, digital and inflight developments. An example of this is, in 'business plus' fare giving customers flexible tickets, more check in baggage, priority boarding and 'premium seats'.

Lets be honest the aim of any successful airline is to increase the volume of passengers using a particular airline. Ryanair have always appealed to many due to their low fares. An added incentive for travellers is their 'specials' i.e. One day Sale, Massive Winter Seat Sale, Christmas Deal and loyalty perks.

All of these pricing incentives ensure that Ryanair remain at the top of their game.

How do Ryanair keep their customers abreast of developments? On their website their 'All News' is bang up to date with a mixture of promotions and business news. Examples of this from last week.

14th Nov. 2016- 89% of Ryanair Flights On-Time in Oct.

17th Nov. 2016- Ryanair Launches Massive Winter Seat Sale

Also to tie in with the 'Black Friday Deals'

21st Nov. 2016- Ryanair Launches 'Cyber Week' Promotion 8 Days of Massive Sales- Only on Ryanair.com
(http://corporate.ryanair.com/news/news/)

These deals show how the prices of their tickets fluctuate due to the time of year and on special occasions.

Promotion

Ryanair have promoted themselves through their sponsorship deals on Channel 5 and at the Cheltenham Race Course Events.

They also have an influence on the Social Media Platform which they use to promote themselves and also to receive feedback from customers:

Instagram- 98.6k followers

Twitter- 271k followers

Facebook- 1.15million likes

Youtube-13,864 subscribers

Process

Yes everyone wants cheap flights but customer service is also a must. If the booking process is difficult it can be a turn off. Ryanair's booking process online is relatively easy and there is a helpful frequently asked questions overview to assist anyone who has difficulty on who requires an answer to a specific question. Although booking your flight may be easy, it can be costly if you wish to make changes to your booking. In fairness this is likely to occur with most airlines. 

To ensure an efficient service i.e. on-time departure and arrival time, Ryanair promote carry-on luggage. The cost of the hold luggage can be high. As a result many planes arrive, passengers disembark and the next flight boards in what seems like record time.

The embarking is probably the most stressful part of a Ryanair flight. Although the cabin crew welcome you on board this is quickly followed by instructions to take your seat, to refrain from blocking the aisle. I think you get the picture. Once seated and the plane takes off it often seems like a constant sell. First the food (have to pay for), then the scratch cards and finally the Duty Free Items. On short haul flights the cabin crew must be exhausted trying to fit it all in between take-off and landing. I suspect that the profit made in on flight sales enables the airline to keep their fares low. However no one has the wool pulled over their eyes Ryanair promotes itself as a budget airline focussing on low fares without compromising the safety of the passengers.

Ryanair does offer passengers the opportunity to 'Rate My Flight'. In their 'Always Getting Better' Plan, this opportunity will be a function on a mobile app, rating crew and flights- real time customer feedback.

Ryanair's Chief Marketing Officer, Kenny Jacobs said,

"The continued drive to improve our customer experience has been reflected in the record passenger numbers and load factors we have had over the past 2 years, and we are pleased to launch Year 3 of our “Always Getting Better” programme. While Year 1 and 2 were about fixing the areas customers didn’t like and improving the existing offering, Year 3 will be about digital acceleration and innovation, particularly through our Ryanair Labs digital developments. The one thing that won’t change will be our low fares, and we’ll continue to offer the biggest and best choice of destinations, with the most on-time flights and a fantastic onboard experience, as we grow our fleet, traffic and routes."

(http://corporate.ryanair.com/news/news/160412-year-3-always-getting-better-plan/?market=en)

People

As far as staff recruitment is concerned their 'blurb' for cabin crew is impressive. 

"We are an organisation like no other, where you will have a career like no other."

"We are looking for the best customer focused cabin crew in the business"

(https://careers.ryanair.com/cabin-crew/)

To me this seems like Ryanair are trying to constantly improve the training that they provide to their employees and are continuing to develop their service.

Also their 'Why Ryanair' for a career will appeal to those tired of a 9-5 job where the same routine is repeated over and over and over. Instead Ryanair promote a career with their organisation as,

"Always planning for the future, we are always looking for new ways to make things happen, we don't like to sit around - we want to do thing's now" 

(https://careers.ryanair.com/cabin-crew/)

As all successful businesses do they acknowledge that, "Our people have made Ryanair  the success story that is today... Our people are vital to our operation, which is why we have the best in the business" (https://careers.ryanair.com/why-ryanair/)

They really do seem to find ways of 'Always Getting Better' which is not bad going after several years of bad press and serious gaffes from Michael O'Leary (CEO) however in recent years he has softened his approach towards improving customer service. "With profits and passenger traffic on the rise amid a charm offensive, the divisive chief executive told MailOnline Travel: 'We should have been nicer to customers earlier than we have been'." (http://www.dailymail.co.uk/travel/travel_news/article-2813863/Controversial-Ryanair-boss-admits-no-frills-carrier-nicer-customers-sooner.html)

Recent customer reviews suggest that Ryanair as a whole is improving.

Conclusion

 

 vs

Overall we can see that Emirates and Ryanair take completely different approaches to their marketing mix.  Think Emirates - think high quality service, comfort, experience. Think Ryanair - think cheap fares, European destinations and accurate flight times.  Proof that success doesn't necessarily require the same ingredients when it comes to the marketing mix!