swot analysis of easyjetswot analysis of easyjetswot analysis of easyjetswot analysis of easyjet

strengthsstrengthsstrengthsstrengths

weaknessesweaknessesweaknessesweaknesses

opportunitiesopportunitiesopportunitiesopportunities

ThreatsThreatsThreatsThreats

Question 1Question 1How do easyJet’s marketing How do easyJet’s marketing objectives and its marketing mix objectives and its marketing mix strategy affect its pricing decisions?strategy affect its pricing decisions?

Question 1Question 1How do easyJet’s marketing How do easyJet’s marketing objectives and its marketing mix objectives and its marketing mix strategy affect its pricing decisions?strategy affect its pricing decisions?

EasyJetEasyJet’s Mission Statement:’s Mission Statement:

“To provide our customers with “To provide our customers with safesafe, , good valuegood value, , point-point-to-point air servicesto-point air services. To effect and to offer a . To effect and to offer a

consistent and reliable productconsistent and reliable product and and fares fares appealingappealing to leisure and business markets on a range of to leisure and business markets on a range of

European routes. To achieve this we will develop our people European routes. To achieve this we will develop our people and and establish lasting relationshipsestablish lasting relationships with our suppliers.” with our suppliers.”

EasyJetEasyJet’s Mission Statement:’s Mission Statement:

“To provide our customers with “To provide our customers with safesafe, , good valuegood value, , point-point-to-point air servicesto-point air services. To effect and to offer a . To effect and to offer a

consistent and reliable productconsistent and reliable product and and fares fares appealingappealing to leisure and business markets on a range of to leisure and business markets on a range of

European routes. To achieve this we will develop our people European routes. To achieve this we will develop our people and and establish lasting relationshipsestablish lasting relationships with our suppliers.” with our suppliers.”

objectives objectives objectives objectives

Low fares and high frequency between Low fares and high frequency between major European airportsmajor European airports

Consumers willing to pay ( a little ) more Consumers willing to pay ( a little ) more for value-added propositionfor value-added proposition

Growth based on joining the dots and Growth based on joining the dots and adding frequencyadding frequency

Low fares and high frequency between Low fares and high frequency between major European airportsmajor European airports

Consumers willing to pay ( a little ) more Consumers willing to pay ( a little ) more for value-added propositionfor value-added proposition

Growth based on joining the dots and Growth based on joining the dots and adding frequencyadding frequency

•Segmentation and Targeting:Business and Leisure ConsumersDifferentiation and Positioning

:Flies to all the primary airports in EuropeCommitment to customer service

•Segmentation and Targeting:Business and Leisure ConsumersDifferentiation and Positioning

:Flies to all the primary airports in EuropeCommitment to customer service

With recognition for providing more efficient, low-With recognition for providing more efficient, low-cost flights, whilst maintaining as a high quality of cost flights, whilst maintaining as a high quality of service as possible, easyJet is positioning itself to service as possible, easyJet is positioning itself to

its consumer base as the best form of budget its consumer base as the best form of budget travel in Europe.travel in Europe.

Price is a crucial positioning factorPrice is a crucial positioning factor

With recognition for providing more efficient, low-With recognition for providing more efficient, low-cost flights, whilst maintaining as a high quality of cost flights, whilst maintaining as a high quality of service as possible, easyJet is positioning itself to service as possible, easyJet is positioning itself to

its consumer base as the best form of budget its consumer base as the best form of budget travel in Europe.travel in Europe.

Price is a crucial positioning factorPrice is a crucial positioning factor

•

Therefore, the marketing mix is based Therefore, the marketing mix is based on keeping costs to a minimum to allow on keeping costs to a minimum to allow

the airline to offer the lowest fares the airline to offer the lowest fares possible possible

•

Therefore, the marketing mix is based Therefore, the marketing mix is based on keeping costs to a minimum to allow on keeping costs to a minimum to allow

the airline to offer the lowest fares the airline to offer the lowest fares possible possible

‣ProductProduct / / Customer solutionCustomer solution::

Features: Punctual and no-frillsFeatures: Punctual and no-frills

Brand name: Brand name: EASYEASY to pronounce, recognise, to pronounce, recognise, and rememberand remember

Packaging: Packaging: ORANGEORANGE

‣ProductProduct / / Customer solutionCustomer solution::

Features: Punctual and no-frillsFeatures: Punctual and no-frills

Brand name: Brand name: EASYEASY to pronounce, recognise, to pronounce, recognise, and rememberand remember

Packaging: Packaging: ORANGEORANGE

•Place Place // Convenience Convenience::

easyJet’s website acts as a main distribution easyJet’s website acts as a main distribution channel for e-ticketing channel for e-ticketing

Can be viewed in 18 languages Can be viewed in 18 languages

•Place Place // Convenience Convenience::

easyJet’s website acts as a main distribution easyJet’s website acts as a main distribution channel for e-ticketing channel for e-ticketing

Can be viewed in 18 languages Can be viewed in 18 languages

easyJet advertisements can be easyJet advertisements can be seen everywhere, in cities all seen everywhere, in cities all over Europe from giant over Europe from giant billboards to public transport billboards to public transport buses.buses.

easyJet advertisements can be easyJet advertisements can be seen everywhere, in cities all seen everywhere, in cities all over Europe from giant over Europe from giant billboards to public transport billboards to public transport buses.buses.

Promotion/CommunicationsPromotion/Communications::Promotion/CommunicationsPromotion/Communications::

Question 2Question 2Discuss factors that have affected Discuss factors that have affected the nature of costs in the airline the nature of costs in the airline industry since 2000. How have industry since 2000. How have these factors affected pricing these factors affected pricing decisions?decisions?

Question 2Question 2Discuss factors that have affected Discuss factors that have affected the nature of costs in the airline the nature of costs in the airline industry since 2000. How have industry since 2000. How have these factors affected pricing these factors affected pricing decisions?decisions?

Factors since 2000Factors since 2000Factors since 2000Factors since 2000

Heightened Environmental Heightened Environmental ConsciousnessConsciousness

Information AgeInformation Age

Terrorism Terrorism

Energy CrisisEnergy Crisis

Heightened Environmental Heightened Environmental ConsciousnessConsciousness

Information AgeInformation Age

Terrorism Terrorism

Energy CrisisEnergy Crisis

Heightened environmental Heightened environmental consciousnessconsciousness

Heightened environmental Heightened environmental consciousnessconsciousness

2002's World Summit on 2002's World Summit on Sustainable DevelopmentSustainable Development

Environmental TaxesEnvironmental Taxes

Cleaner plane models/enginesCleaner plane models/engines

2002's World Summit on 2002's World Summit on Sustainable DevelopmentSustainable Development

Environmental TaxesEnvironmental Taxes

Cleaner plane models/enginesCleaner plane models/engines

information ageinformation ageinformation ageinformation age

Broadband mainstream Broadband mainstream since 2000ssince 2000s

Introduction of advanced Introduction of advanced technology technology

Less cost for labour and Less cost for labour and infrastructure and less infrastructure and less time incurred to time incurred to complete the same jobcomplete the same job

Broadband mainstream Broadband mainstream since 2000ssince 2000s

Introduction of advanced Introduction of advanced technology technology

Less cost for labour and Less cost for labour and infrastructure and less infrastructure and less time incurred to time incurred to complete the same jobcomplete the same job

terrorism (9/11 attack)terrorism (9/11 attack)terrorism (9/11 attack)terrorism (9/11 attack)

9/11 attacks 9/11 attacks

Security procedures Security procedures introducedintroduced

High-tech detection hardwareHigh-tech detection hardware

Higher costs incurred for Higher costs incurred for safety and peace of mindsafety and peace of mind

Aviation insuranceAviation insurance

9/11 attacks 9/11 attacks

Security procedures Security procedures introducedintroduced

High-tech detection hardwareHigh-tech detection hardware

Higher costs incurred for Higher costs incurred for safety and peace of mindsafety and peace of mind

Aviation insuranceAviation insurance

energy crisisenergy crisisenergy crisisenergy crisis

2000s energy crisis2000s energy crisis

Rising cost of crude oilRising cost of crude oil

Higher costs are translated Higher costs are translated to airline industry as jet fuel to airline industry as jet fuel is processed from crude oilis processed from crude oil

Hedging policy reduces fuel Hedging policy reduces fuel cost increase to a limited cost increase to a limited extentextent

2000s energy crisis2000s energy crisis

Rising cost of crude oilRising cost of crude oil

Higher costs are translated Higher costs are translated to airline industry as jet fuel to airline industry as jet fuel is processed from crude oilis processed from crude oil

Hedging policy reduces fuel Hedging policy reduces fuel cost increase to a limited cost increase to a limited extentextent

Average u.s. jet fuel priceAverage u.s. jet fuel price

airfare pricing trendsairfare pricing trendsairfare pricing trendsairfare pricing trends

Low enough to attract demand, high enough to offset increases in Low enough to attract demand, high enough to offset increases in costcost

Airfare price range depends dramatically on the following variables Airfare price range depends dramatically on the following variables listed in order of importance:listed in order of importance:

Competition on RouteCompetition on Route

Seat DemandSeat Demand

Distance of RouteDistance of Route

Seat SupplySeat Supply

Fuel PricesFuel Prices

Ancillary fees charged separatelyAncillary fees charged separately

Low enough to attract demand, high enough to offset increases in Low enough to attract demand, high enough to offset increases in costcost

Airfare price range depends dramatically on the following variables Airfare price range depends dramatically on the following variables listed in order of importance:listed in order of importance:

Competition on RouteCompetition on Route

Seat DemandSeat Demand

Distance of RouteDistance of Route

Seat SupplySeat Supply

Fuel PricesFuel Prices

Ancillary fees charged separatelyAncillary fees charged separately

SouthwestSouthwest reported that its average one-way fare reported that its average one-way fare increasedincreased 19 percent to $132, not including government 19 percent to $132, not including government taxes and fees.taxes and fees.

JetBlueJetBlue reported a 10 percent reported a 10 percent jumpjump in average fares (to in average fares (to $139 one way). $139 one way).

American AirlinesAmerican Airlines reported a 14 percent reported a 14 percent riserise in its in its passenger yield, an industry measure that represents the passenger yield, an industry measure that represents the average fare paid.average fare paid.

None of these numbers include the extra fees, so None of these numbers include the extra fees, so travellers are most likely paying even more for a flight travellers are most likely paying even more for a flight than these double-digit fare increases indicatethan these double-digit fare increases indicate

SouthwestSouthwest reported that its average one-way fare reported that its average one-way fare increasedincreased 19 percent to $132, not including government 19 percent to $132, not including government taxes and fees.taxes and fees.

JetBlueJetBlue reported a 10 percent reported a 10 percent jumpjump in average fares (to in average fares (to $139 one way). $139 one way).

American AirlinesAmerican Airlines reported a 14 percent reported a 14 percent riserise in its in its passenger yield, an industry measure that represents the passenger yield, an industry measure that represents the average fare paid.average fare paid.

None of these numbers include the extra fees, so None of these numbers include the extra fees, so travellers are most likely paying even more for a flight travellers are most likely paying even more for a flight than these double-digit fare increases indicatethan these double-digit fare increases indicate

1995 Q1 to 2010 q21995 Q1 to 2010 q21995 Q1 to 2010 q21995 Q1 to 2010 q2Average air faresAverage air faresAverage air faresAverage air fares

Factors decreasing pricesFactors decreasing pricesFactors decreasing pricesFactors decreasing prices

Introduction of Information Technology (IT) Introduction of Information Technology (IT) Introduction of Information Technology (IT) Introduction of Information Technology (IT)

factors increasing pricesfactors increasing pricesfactors increasing pricesfactors increasing prices

EnvironmentalismEnvironmentalism

TerrorismTerrorism

Energy CrisisEnergy Crisis

EnvironmentalismEnvironmentalism

TerrorismTerrorism

Energy CrisisEnergy Crisis

OUTCOMEOUTCOMEOUTCOMEOUTCOMEHigher Costs Are Translated To The Higher Costs Are Translated To The

AirfaresAirfaresHigher Costs Are Translated To The Higher Costs Are Translated To The

AirfaresAirfares

Question 3Question 3How do the nature of the airline How do the nature of the airline market and the demand for airline market and the demand for airline service affect easyJet’s decisions?service affect easyJet’s decisions?

Question 3Question 3How do the nature of the airline How do the nature of the airline market and the demand for airline market and the demand for airline service affect easyJet’s decisions?service affect easyJet’s decisions?

nature of airline marketnature of airline marketnature of airline marketnature of airline market

Oligopolistic competitionOligopolistic competition

Consists of some older Consists of some older and major conventional and major conventional airlinesairlines

A few up and coming A few up and coming low cost carrierslow cost carriers

Rival consciousness Rival consciousness prevalentprevalent

Oligopolistic competitionOligopolistic competition

Consists of some older Consists of some older and major conventional and major conventional airlinesairlines

A few up and coming A few up and coming low cost carrierslow cost carriers

Rival consciousness Rival consciousness prevalentprevalent

Demand for airline service Demand for airline service (from easyjet’s viewpoint)(from easyjet’s viewpoint)Demand for airline service Demand for airline service (from easyjet’s viewpoint)(from easyjet’s viewpoint)

The price-demand The price-demand relationship: lower the price, relationship: lower the price, the higher the demandthe higher the demand

easyJet has positioned itself easyJet has positioned itself as low-cost airlineas low-cost airline

Its pricing strategy is based Its pricing strategy is based on on Good Value PricingGood Value Pricing

The price-demand The price-demand relationship: lower the price, relationship: lower the price, the higher the demandthe higher the demand

easyJet has positioned itself easyJet has positioned itself as low-cost airlineas low-cost airline

Its pricing strategy is based Its pricing strategy is based on on Good Value PricingGood Value Pricing

price elasticity of demand price elasticity of demand (for easyjet services)(for easyjet services)

price elasticity of demand price elasticity of demand (for easyjet services)(for easyjet services)

easyJet faces a consumer DD that is highly easyJet faces a consumer DD that is highly elasticelastic

i.e. There will be a large change in Qi.e. There will be a large change in Qdd for a for a small change in pricesmall change in price

easyJet faces a consumer DD that is highly easyJet faces a consumer DD that is highly elasticelastic

i.e. There will be a large change in Qi.e. There will be a large change in Qdd for a for a small change in pricesmall change in price

reasons for high pedreasons for high pedreasons for high pedreasons for high ped

Its services are no-frills Its services are no-frills airplane flights. These airplane flights. These are are not uniquenot unique. .

Relatively Relatively easy to find easy to find similar substitutes similar substitutes

Total expenditure of Total expenditure of airline tickets is a airline tickets is a significant proportion significant proportion of of YYdd

Its services are no-frills Its services are no-frills airplane flights. These airplane flights. These are are not uniquenot unique. .

Relatively Relatively easy to find easy to find similar substitutes similar substitutes

Total expenditure of Total expenditure of airline tickets is a airline tickets is a significant proportion significant proportion of of YYdd

easyjet marketing easyjet marketing decisionsdecisions

easyjet marketing easyjet marketing decisionsdecisions

Nature of market + DDNature of market + DDproductproduct= Marketing Decisions= Marketing Decisions Nature of market + DDNature of market + DDproductproduct= Marketing Decisions= Marketing Decisions

Competing with other airlinesCompeting with other airlinesCompeting with other airlinesCompeting with other airlines

Question 4Question 4What general pricing approaches What general pricing approaches have airlines pursued?have airlines pursued?

Question 4Question 4What general pricing approaches What general pricing approaches have airlines pursued?have airlines pursued?

Pricing strategies matrixPricing strategies matrixPricing strategies matrixPricing strategies matrix

ECONOMYECONOMY PENETRATIONPENETRATION

SKIMMINGSKIMMING PREMIUMPREMIUM

QualityQualityQualityQualityLOWLOWLOWLOW HIGHHIGHHIGHHIGH

LOWLOWLOWLOW

PPrriiccee

PPrriiccee

HIGHHIGHHIGHHIGH

Full service carriersFull service carriersFull service carriersFull service carriers

Price DiscriminationPrice Discrimination

Based on fare Based on fare classes classes

Charge each Charge each customers as much customers as much as they are willing to as they are willing to paypay

Price DiscriminationPrice Discrimination

Based on fare Based on fare classes classes

Charge each Charge each customers as much customers as much as they are willing to as they are willing to paypay

Value-Added PricingValue-Added Pricing

Offering passengers Offering passengers a superior range of a superior range of ground and onboard ground and onboard services services

In return for a much In return for a much HIGHER fareHIGHER fare

Value-Added PricingValue-Added Pricing

Offering passengers Offering passengers a superior range of a superior range of ground and onboard ground and onboard services services

In return for a much In return for a much HIGHER fareHIGHER fare

““Fences”Fences”

Must be built to prevent passengers from Must be built to prevent passengers from substituting higher fares for discounted substituting higher fares for discounted tickets tickets

In the form of minimum stay In the form of minimum stay requirements, date and/or route change requirements, date and/or route change penaltiespenalties

““Fences”Fences”

Must be built to prevent passengers from Must be built to prevent passengers from substituting higher fares for discounted substituting higher fares for discounted tickets tickets

In the form of minimum stay In the form of minimum stay requirements, date and/or route change requirements, date and/or route change penaltiespenalties

Different Class of ServicesDifferent Class of Services

First, Business, Economy First, Business, Economy Plus, EconomyPlus, Economy

Business class may cost 5-Business class may cost 5-10 times more than 10 times more than Economy but the service Economy but the service costs much lesser than thatcosts much lesser than that

Different Class of ServicesDifferent Class of Services

First, Business, Economy First, Business, Economy Plus, EconomyPlus, Economy

Business class may cost 5-Business class may cost 5-10 times more than 10 times more than Economy but the service Economy but the service costs much lesser than thatcosts much lesser than that

Reverse Price SystemReverse Price System

The further the date of The further the date of departure, the cheaper the departure, the cheaper the ticketticket

Encourages customers to Encourages customers to book earlybook early

Able to gauge demand for Able to gauge demand for every flightevery flight

Reverse Price SystemReverse Price System

The further the date of The further the date of departure, the cheaper the departure, the cheaper the ticketticket

Encourages customers to Encourages customers to book earlybook early

Able to gauge demand for Able to gauge demand for every flightevery flight

Low cost carriersLow cost carriersLow cost carriersLow cost carriers

No “Frills”No “Frills”

No free meals and No free meals and beverages onboard, no beverages onboard, no frequent fliers program etcfrequent fliers program etc

More seats are available in More seats are available in one flight to maximise one flight to maximise profitsprofits

No “Frills”No “Frills”

No free meals and No free meals and beverages onboard, no beverages onboard, no frequent fliers program etcfrequent fliers program etc

More seats are available in More seats are available in one flight to maximise one flight to maximise profitsprofits

One-way Ticketing PolicyOne-way Ticketing Policy

Customers only required to Customers only required to buy one-way ticketbuy one-way ticket

Need to purchase two one-Need to purchase two one-way tickets for a round tripway tickets for a round trip

Gives full flexibility to plan Gives full flexibility to plan their trip as they pleasetheir trip as they please

Appeal to the business Appeal to the business travellerstravellers

One-way Ticketing PolicyOne-way Ticketing Policy

Customers only required to Customers only required to buy one-way ticketbuy one-way ticket

Need to purchase two one-Need to purchase two one-way tickets for a round tripway tickets for a round trip

Gives full flexibility to plan Gives full flexibility to plan their trip as they pleasetheir trip as they please

Appeal to the business Appeal to the business travellerstravellers

Question 5Question 5Do you think that EasyJet will be Do you think that EasyJet will be able to continue to maintain a able to continue to maintain a

competitive advantage based on competitive advantage based on price? What will happen if other price? What will happen if other

carriers match the low-price carriers match the low-price leader?leader?

Question 5Question 5Do you think that EasyJet will be Do you think that EasyJet will be able to continue to maintain a able to continue to maintain a

competitive advantage based on competitive advantage based on price? What will happen if other price? What will happen if other

carriers match the low-price carriers match the low-price leader?leader?

Current competitive Current competitive advantages based on pricesadvantages based on prices

Current competitive Current competitive advantages based on pricesadvantages based on prices

No frillsNo frills

Lower operating costs Lower operating costs

High productivity of resources High productivity of resources Increasing revenue Increasing revenue

Reduced distribution costs Reduced distribution costs

No frillsNo frills

Lower operating costs Lower operating costs

High productivity of resources High productivity of resources Increasing revenue Increasing revenue

Reduced distribution costs Reduced distribution costs

ARGUMENTS AGAINST MAINTAINING ARGUMENTS AGAINST MAINTAINING COMPETITIVE ADVANTAGES BASED COMPETITIVE ADVANTAGES BASED

ON PRICESON PRICES

ARGUMENTS AGAINST MAINTAINING ARGUMENTS AGAINST MAINTAINING COMPETITIVE ADVANTAGES BASED COMPETITIVE ADVANTAGES BASED

ON PRICESON PRICES

Low cost airline industry increasingly Low cost airline industry increasingly competitive competitive

Competitors serving secondary airports (More Competitors serving secondary airports (More cost savings)cost savings)

Natural limitations on price; Increases in fuel Natural limitations on price; Increases in fuel price and airport chargesprice and airport charges

Low cost airline industry increasingly Low cost airline industry increasingly competitive competitive

Competitors serving secondary airports (More Competitors serving secondary airports (More cost savings)cost savings)

Natural limitations on price; Increases in fuel Natural limitations on price; Increases in fuel price and airport chargesprice and airport charges

Competitors imitate online Competitors imitate online booking process and offer booking process and offer competitive flight ratescompetitive flight rates

Low cost airline industry Low cost airline industry characterized by mergers and characterized by mergers and acquisitionsacquisitions

Competitors imitate online Competitors imitate online booking process and offer booking process and offer competitive flight ratescompetitive flight rates

Low cost airline industry Low cost airline industry characterized by mergers and characterized by mergers and acquisitionsacquisitions

Examples of Examples of mergers/acquisitionmergers/acquisitionExamples of Examples of mergers/acquisitionmergers/acquisition

Maintaining NON-PRICE BASED Maintaining NON-PRICE BASED COMPETITIVE ADVANTAGES THROUGH COMPETITIVE ADVANTAGES THROUGH

DIFFERENTIATIONDIFFERENTIATION

Maintaining NON-PRICE BASED Maintaining NON-PRICE BASED COMPETITIVE ADVANTAGES THROUGH COMPETITIVE ADVANTAGES THROUGH

DIFFERENTIATIONDIFFERENTIATION

Flying to main Flying to main airports in citiesairports in citiesFlying to main Flying to main airports in citiesairports in cities

Improved online booking system (User Improved online booking system (User friendly, interactive)friendly, interactive)Improved online booking system (User Improved online booking system (User friendly, interactive)friendly, interactive)

City, Bars + Nightlife, Shopping, Eating, City, Bars + Nightlife, Shopping, Eating, Cafes, EventsCafes, Events

EasyJetPlus Card EasyJetPlus Card

City, Bars + Nightlife, Shopping, Eating, City, Bars + Nightlife, Shopping, Eating, Cafes, EventsCafes, Events

EasyJetPlus Card EasyJetPlus Card

Punctuality and safetyPunctuality and safetyPunctuality and safetyPunctuality and safety

FlexibilityFlexibilityFlexibilityFlexibility

recommendationsrecommendationsrecommendationsrecommendations

Background:Background:

BusinessmanBusinessmanAge: 25-39Age: 25-39Middle IncomeMiddle IncomeHigh reliance on information technologyHigh reliance on information technologyIndependentIndependentWork for SMEs (size of the company price sensitive)Work for SMEs (size of the company price sensitive)Job scope requires them to fly frequentlyJob scope requires them to fly frequently

Needs:Needs: Punctuality of flightsPunctuality of flightsAdequate amount of comfortAdequate amount of comfortFlexible reservation systems Flexible reservation systems AffordabilityAffordability

Background:Background:

BusinessmanBusinessmanAge: 25-39Age: 25-39Middle IncomeMiddle IncomeHigh reliance on information technologyHigh reliance on information technologyIndependentIndependentWork for SMEs (size of the company price sensitive)Work for SMEs (size of the company price sensitive)Job scope requires them to fly frequentlyJob scope requires them to fly frequently

Needs:Needs: Punctuality of flightsPunctuality of flightsAdequate amount of comfortAdequate amount of comfortFlexible reservation systems Flexible reservation systems AffordabilityAffordability

Profile #1: WinstonProfile #1: Winston Profile #1: WinstonProfile #1: Winston

INFRASTRUCTUREINFRASTRUCTUREINFRASTRUCTUREINFRASTRUCTURE

Develop infrastructure for in-Develop infrastructure for in-flight Wireless Internet serviceflight Wireless Internet service

Provide in-flight Wireless Provide in-flight Wireless Internet for Internet for FREEFREE

Develop infrastructure for in-Develop infrastructure for in-flight Wireless Internet serviceflight Wireless Internet service

Provide in-flight Wireless Provide in-flight Wireless Internet for Internet for FREEFREE

discounted contractsdiscounted contractsdiscounted contractsdiscounted contracts

Develop discounted Develop discounted contracts with SMEscontracts with SMEs

Partner with prominent SMEs Partner with prominent SMEs and provide their staff with and provide their staff with benefits when they travel benefits when they travel with easyJetwith easyJet

Develop discounted Develop discounted contracts with SMEscontracts with SMEs

Partner with prominent SMEs Partner with prominent SMEs and provide their staff with and provide their staff with benefits when they travel benefits when they travel with easyJetwith easyJet

business-select seatsbusiness-select seatsbusiness-select seatsbusiness-select seats

Implementation of Implementation of business-select business-select seats/ticketsseats/tickets

Provide front row seats Provide front row seats with more leg roomswith more leg rooms

Implementation of Implementation of business-select business-select seats/ticketsseats/tickets

Provide front row seats Provide front row seats with more leg roomswith more leg rooms

frequent flyer programfrequent flyer programfrequent flyer programfrequent flyer program

Implementation of Implementation of frequent flyer program-frequent flyer program-loyalty based benefits to loyalty based benefits to ensure continued revenueensure continued revenue

Eg. KrisFlyerEg. KrisFlyer

Current easyJet card has Current easyJet card has only membership-based only membership-based benefitsbenefits

Implementation of Implementation of frequent flyer program-frequent flyer program-loyalty based benefits to loyalty based benefits to ensure continued revenueensure continued revenue

Eg. KrisFlyerEg. KrisFlyer

Current easyJet card has Current easyJet card has only membership-based only membership-based benefitsbenefits

Background: Background:

Backpacker Backpacker SingleSingle Age: 19-29Age: 19-29High reliance on information High reliance on information technologytechnologyIndependent Independent Adventure SeekingAdventure SeekingLow family commitmentLow family commitment

Needs:Needs: AffordabilityAffordability FlexibilityFlexibility Relish challenges/fresh experiencesRelish challenges/fresh experiences Backpackers/locals interactionBackpackers/locals interaction

Background: Background:

Backpacker Backpacker SingleSingle Age: 19-29Age: 19-29High reliance on information High reliance on information technologytechnologyIndependent Independent Adventure SeekingAdventure SeekingLow family commitmentLow family commitment

Needs:Needs: AffordabilityAffordability FlexibilityFlexibility Relish challenges/fresh experiencesRelish challenges/fresh experiences Backpackers/locals interactionBackpackers/locals interaction

Profile #2: ShermineProfile #2: Shermine Profile #2: ShermineProfile #2: Shermine

Facebook and TwitterFacebook and Twitter

Social Networking Sites to keep Social Networking Sites to keep EasyJet backpackers informed for the EasyJet backpackers informed for the

latest tourist attractionslatest tourist attractions

Facebook and TwitterFacebook and Twitter

Social Networking Sites to keep Social Networking Sites to keep EasyJet backpackers informed for the EasyJet backpackers informed for the

latest tourist attractionslatest tourist attractions

• Discounts for Reliable & Low-Cost Discounts for Reliable & Low-Cost AccomodationAccomodation

Exclusively for easyBIG membersExclusively for easyBIG members

• Discounts for Reliable & Low-Cost Discounts for Reliable & Low-Cost AccomodationAccomodation

Exclusively for easyBIG membersExclusively for easyBIG members

easyjet backpacker forum (Ebf)easyjet backpacker forum (Ebf)easyjet backpacker forum (Ebf)easyjet backpacker forum (Ebf)

Provide a common platform Provide a common platform for exchange of information for exchange of information and preferences on tourist and preferences on tourist destinationsdestinations

Inform backpackers of Inform backpackers of upcoming EasyJet upcoming EasyJet promotionspromotions

Tourists with common Tourists with common interest can travel togetherinterest can travel together

Provide a common platform Provide a common platform for exchange of information for exchange of information and preferences on tourist and preferences on tourist destinationsdestinations

Inform backpackers of Inform backpackers of upcoming EasyJet upcoming EasyJet promotionspromotions

Tourists with common Tourists with common interest can travel togetherinterest can travel together

• EasyJet MerchandiseEasyJet Merchandise

Partner with an established Partner with an established baggage brand (eg, baggage brand (eg, Crumpler, Timbuk2)Crumpler, Timbuk2)

Allow members to Allow members to accumulate flyer points to accumulate flyer points to redeem such merchandizeredeem such merchandize

This can create a sense of This can create a sense of belongingbelonging

• EasyJet MerchandiseEasyJet Merchandise

Partner with an established Partner with an established baggage brand (eg, baggage brand (eg, Crumpler, Timbuk2)Crumpler, Timbuk2)

Allow members to Allow members to accumulate flyer points to accumulate flyer points to redeem such merchandizeredeem such merchandize

This can create a sense of This can create a sense of belongingbelonging

Links between Links between Recommendations and Recommendations and

Profiling of BackpackersProfiling of Backpackers

Links between Links between Recommendations and Recommendations and

Profiling of BackpackersProfiling of Backpackers

Generic recommendationsGeneric recommendationsGeneric recommendationsGeneric recommendations

Sequence of boarding Sequence of boarding

To minimise obstructionTo minimise obstruction

Sequence of boarding Sequence of boarding

To minimise obstructionTo minimise obstruction

Implement full refund for cancellations within 24 Implement full refund for cancellations within 24 hrshrs

Abolish cancellation feeAbolish cancellation fee

Psychological comfort – peace of mindPsychological comfort – peace of mind

Eg, For Businessmen- meeting time changesEg, For Businessmen- meeting time changes

For Backpackers – Unforeseen circumstances For Backpackers – Unforeseen circumstances such as weather conditions / political situations such as weather conditions / political situations

Implement full refund for cancellations within 24 Implement full refund for cancellations within 24 hrshrs

Abolish cancellation feeAbolish cancellation fee

Psychological comfort – peace of mindPsychological comfort – peace of mind

Eg, For Businessmen- meeting time changesEg, For Businessmen- meeting time changes

For Backpackers – Unforeseen circumstances For Backpackers – Unforeseen circumstances such as weather conditions / political situations such as weather conditions / political situations

conclusionconclusionconclusionconclusion

““Come on, let’sCome on, let’s““Come on, let’sCome on, let’sfly!!fly!!

””fly!!fly!!

””