This document summarizes marketing mix decisions for Ryanair and Easyjet airlines. It discusses how both airlines were established in the 1980s and pursued a strategy of low ticket prices. Key points included how Ryanair started with 5,000 passengers in its first year and Easyjet was founded by Stelious Haji-loannou at age 28. The document also examines the advantages and risks of low pricing strategies, conditions needed to charge low prices, and why EasyCinema's low movie pricing model failed while Ryanair and Easyjet have found ongoing success.

1. Marketing Mix Decisions
Team Members: John Falvey, Gerard Dohran, Daniel
Keating, Liam Carey

2. Ryanair
Intoduction of company
•Set up in 1985
•5,000 Passengers in first year
•Established there first route from Waterford to London Gatwick
Easyjet
•Established Stelious Haji-loannou
•Was only 28
•Initially operated 2 aircrafts with two routes Luton-Glasgow
Luton- Edinburgh
• First international route was Amsterdam

3. Topics Discussed
• Introduction
• The success of the low price strategy.
• Advantages and risks of the low price
strategies.
• Conditions for charging low prices hold for
Easyjet and Ryanair.
• The failure of EasyCinema.

4. • Yield Management System
• On board reductions
• Expansion

5. • Yield management
• Low Price
• Strategic Control

6. Reductions
• One type of aircraft
• Fast Turnaround times
• No free meals

7. Advantages and Risks of Low
pricing Strategy
Pricing Strategies
•Easy Jet
•Ryan Air Strategy
Economic Strategy
Rapid penetration Strategy

8. Advantages and Risks of Low
pricing Strategy
Advantages
•Very Competitive Strategy
•Maximises Profits
•Reduces Cost

9. Advantages and Risks of Low
pricing Strategy
Risks
•Many cases of consumer Dissatisfaction
•Lost Luggage
•No Compensation

10. Reason for positive outlook
• Cheap and cheerful
• Quick turn around times (20 mins)
• Flights less expected to be delayed (Ryanair
announcement)
• Small bases at local airports, increase
customer loyalty in the local area.

11. Conditions for charging low prices
• Reduce Pilot training and maintenance costs
• Cabin crew doing the cleaning
• Mainly secondary airports such as Luton and
local regional airports like Waterford

12. Easy Cinema
•
•
•
•
Located in Milton Keynes, United Kingdom in 2003
Provided Cinemas rates as low as 20p per movie
Wanted to challenge other cinemas
Wanted to expand throughout the United Kingdom

13. Closure of Easy Cinema
• Movie companies did not want there movies
to be sold at such a low price.
• Reduced Customer base.

14. • High Rental Rates.
• Could not apply the yield management system
successfully to the company.
• Pressure from competitors like UCI Cinemas.

15. Thank you for listening