INTRODUCTION
When conducting international business, a firm may face many challenges, which can create bad impact on profitability and sustainability. However, despite having good profitability in the competitive market, the company can face poor brand image and reputation. Obviously, there are many causes behind this issue, and the management must have to take some immediate actions. It seems pertinent to examine both, customer and market trends to create and sustain the brand image, and in the competitive market, it is lucrative as well. Ryan Air contains the good profitability, but there are some impairments regarding the brand, as customers have negative perceptions. It is a huge threat to this company, and therefore, beyond the profit margins, it is a time for the company management to think bigger.
RYAN AIR CASE
Ryan Air is in the limelight due to its low-cost flight operations for different customers around the globe. The profitability of the company is high, but the management is not able to satisfy customers in the market. The customer disaffection leads towards the impaired brand image and reputation. Ryan Airline has been considered the bargain company. It has become the last option for people due to the good imager and competitive positioning of the competitors (Martin, Cooper, and Burke).
THE PROBLEM in Ryan Air
The management of the Ryan Airline is not using an effective business model, which caused impairments. The low-cost flight operations are key to success, but some controversies scandals and misleading advertisements by this company have changed the perceptions of a customer. For Instance, the low-cost airline makes the profit through immense sales and an appropriate cust9omer response in the presence of competitors to make profits; it seems necessary for the management to shape the preferences of customers in the market, which turn into the buying decisions. Moreover, in global flight operations, it seems essential to take other things into the considerations to make the difference. When dealing with customers in an international market, the company may depict culture integration in advertisement and promotion, which can shape behaviors of customers and create the brand image. Furthermore, in the competitive market. If customers are responsive and assertive, the profitability can be ensured in the international market (Barnett and Pollock).
Analyzing Ryan’s impaired brand image seems interesting, as there are many factors, which have been derived. The poor brand image is due to different scandals. For Instance, the scandal of 2000 flights, canceled by the company due to internal affair such as pilot holidays. Many legal complications have been observed, which also decreased the market share of the company. Thus, it is tough for the customer to prefer this organization, as uncertainties can be occurred in no time (Lawton).
SUSTAINABLE ASPECT
The brand sustainability is important in the airline market. Thus, to derive insights regarding the brand sustainability, some strategic tools can be used by the management. In the competitive business era, the firm should use these strategic tools to investigate the competitive position, market trends and possible barriers to make pertinent strategies (Riley, Singh, and Blankson)
PESTLE ANALYSIS for Ryan Air
Political
Ryan airlines are operating in several countries, and political stability is the biggest advantage that the company can gain. In a stable political system, the company can make good relations with government and sustain the business (Chevalier and Mazzalovo).
Economical
The income level of people is good in the country. The economic condition is good and stable, which provides different opportunities for the company management to make expansions or other strategies to maintain a brand image (Gross and Schröder).
Social
Social aspect seems worthy, as people like to travel with facilities and satisfaction, as these are two main preferences. Thus, to create value in society, the company management has to derive needs of customers, which are triggered by culture. In the airline industry, companies like to trigger by the values to gain the best response. Especially, in the airline industry, good marketing intelligence is required, and companies are quite up to it (Kapferer).
Technological
Technology integrations in the airline industry have helped many companies to sustain the brand image. Technology is good for customer’s facilitation and interaction (Lawton).
Legal
The most important thing a is to avoid scandals in the competitive market. The illegal business activities are big barriers in the business sustainability process due to strict rules and regulations in the country.
Environmental
The environmental responsibility can also be impaired on the companies in this airline industry. When providing low-cost operations, it is to ensure that companies are evolving and adopting new technologies in planes, which reduces the carbon emissions. Moreover, airlines have to be successful through showing social responsibilities, as it is a powerful source for any company to build the brand and gain the sustainable competitive advantage.
PORTER FIVE FORCES for Ryan Air
Bargaining power of customer
The bargaining power of the customer is quite high due to the availability of substitute flight operations by competitors. Quality, facilitation, services, and treatment are the main considerations of customers, which increase the bargaining power. Also, it has been revealed that competitors are offering several segments in flight operations, and it creates many options to make decisions (Martin, Cooper, and Burke).
Bargaining Power of supplier
The supplier power can below, as the company is focusing on concentrated suppliers in the airline industry. Low bargaining power of supplier is good to keep a sustainable flow of work.
Threats of Substitutes
Threats of substitutes are high in the airline market because competitors in Ireland and many other regions are coming up with some differentiated services for customers at lower prices. Substitutes are major threats to the Ryan company in this particular industry. Instated of being bargain basement, the company can also come up with competitive strategies, implemented by the competitors. The differentiations have been conducted through low pricing, quality of services, and uniqueness of the services (Lawton).
Threats of new entrants
Threats of new entrants are low because there is a need for heavy capital to initiate the business in this region. However, for better survival and prevention, the brand sustainability is an appropriate strategy (Kapferer).
Competitive Rivalry
The competitive rivalry is high due to the considerations of low-cost operations of many competitors in the regions. However, top competitors such as Easy Jet and Wizz Air made the competitive rivalry high. The competitive rivalry is quite visible, as other firms are depicting attractive advertisements and promotions to position better the minds of customers. Interestingly, other firms are not focusing on the depiction of low cost, as they are focusing on the high-quality services and options. Ryan seems way behind, and some marketing tactics are needed to exist strongly in the market with a good reputation (Kapferer).
STRATEGIES FOR BRAND AND CORPORATE A REPUTATION
Customer Segments
For Instance, first, the company has to retain the low-cost operations for target customer along with different segments of customers. Different classes for customers can enhance the visibility of facilitation such as space, serving and environment. Ryan brand can be evolved through these classes. It must meet customer expectations who contain high-income levels. Customer classes or segments according to income, perceptions, and needs are the depictions of value creation, as it is a key to create and maintain the good brand image (Gross and Schröder).
High-quality Services
The prominent action plan of the company to maintain the brand image is initiating the high-quality services for customers. Importantly, it seems worthy for the management to be responsive and assertive in identifying the problems of customers in the competitive airline industry. For Instance, the customer must have an option to book and cancel flight easily due to pleasant and supportive response. It is a fact that the managerial cognition and knowledge sharing techniques should be carried by the management to provide high-quality customer services. In flight operations, if the company effectively handles customers and solve their issues, the good brand image can be sustained (Barnett and Pollock).
Targeting New customers
Analyzing the strategy of the company to rebuild the brand image and reputation, new target customers can change the things rapidly. For Instance, in this competitive market, the management of the company has initiated the business class and being a prominent part of the management, I am quite up to it. Initiating the business class is a process of targeting business executives and many other stakeholders who want a comfortable journey with partners. The intention of the company should provide differentiated services for the customer, which cannot be initiated by the competitors. The company has already depicted low prices of flights, but business class contains a high price, which is slightly lower from competitors in the market. Slightly different prices from the competitors are good to keep an edge and shape the perceptions of customers to make a good reputation for a long run (Kapferer).
Location Marketing
The company can manage a good brand image through a good location marketing tactic. Being a management head, I am aware of the intentions of the company regarding the low-cost operations, and therefore, secondary airports have been considered to justify the purpose. However, many customers who want to travel with Ryan usually face difficulties, as they do not have to travel to secondary airports, which a are far away from mainstream airports. The brand and reputation of the company can be lifted if the company initiates operations on the mainstream airports in different cities. For Instance, beyond the fuel efficiency and another cost of traveling, the company can reduce profit margins and use these airports to serve customers. Of course, the company can accelerate these operations and drive the response of customers through pertinent advertisement and promotions on the different channel. The new locations or airports are to be expressed for customers, and it can help them make buying decisions. Pertinent to this strategy, London Heathrow is a remarkable decision, as it is famous due to its capacity and international flights. Thus, it seems a good platform to make a reputation (Chevalier and Mazzalovo).
Cultural Integrations
The cultural integration has emerged as key sources of brand image and reputation for different businesses. When operating in different regions, Ryan airline is looking to integrate with cultures of people in an effective and lucrative manner. Being effective and integrated management, it is necessary to interact with customers to obtain different cultural factors such as education, income, values, traditions and many other things. Accordingly, to make customers loyal, some appropriate strategies by management can be made. The company has to shares the cultural values with people, which helps the management come closer to people and create good relations for a long run. In the server market, Ryan airline is quite assertive to enhance the visibility of integration. When it comes to the global commerce, the brand success and sustainability are triggered by these culture integrations. People a usually feel comfortable when exiting I their own culture, and if people have low-cost services in their own culture, the image can be built (Barnett and Pollock).
Advertisements
Advertisements and promotion are important factors in the marketing process of the company. Ryan airline is looking to create and sustain the brand image through successful implementation of different advertisement strategies. It is a fact that there are many advertisement tools, which can be used to create the brand image. First, it seems imperative to portray the cultural attachments on both traditional and social media channels (Riley, Singh, and Blankson).
Trends in business have been changed, and companies are targeting customers and positioning effectively through other considerations, which are beyond the depiction of low-cost services or products. Ryan airline should demonstrate the high-quality services, facilitation, and management treatment with customers during flights instead of focusing on low-cost operations. For prominent brand sustainability, the intention is to create the perception that customer can get high-quality services at low cost. In different ads, the management needs to convey customers’ information. Through proper information and quality depiction of content m, simulations, and management interviews, the customer can make decisions. Branding is a process of creating a perception, which goes in favor of the company, and in the marketing process, Ryan airline is intended to do it (Gross and Schröder).
Instead of conducting the misleading advertisement for customers, it is vital to make separated ads for separated customers. For Instance, the company can make an ad for a business class along with good information and pricing packages. Similarly, different ads for the different target can eliminate the misleading information, and the company a can regain the image. Interestingly, when advertising on the website or different media channels, the change in the company slogan is helpful in creating the brand image, which shapes buying decisions. For Instance, when it comes to the image building, the company should create a perception of high-quality services. Europe’s cheaper airline has created the perception that the company is providing an average service for the customer due to the low cost. Also, brad van is promoted through flight facilities such as some snacks, high-quality food, separated for adults and children, and some special drinkables on demand. Along with discounted low-priced tickets, the brand is to be promoted through offering everything for every person, and it looks a good ideology, as far as the marketing strategies and brand image of Ryan are concerned (Barnett and Pollock).
CONCLUSION
In the end, it is to conclude that an effective marketing process and implementation of strategies can help an organization create a successful brand image. Ryan airline can boost its low-cost operations through better marketing strategies. For brand sustainability in the market, it is important for creating strategies, which are customer oriented. The management has to think with the perspective of customers to behaviors. Ryan airline is expecting a big shift, as Ryan airline is looking to make a difference through changing perceptions and becoming the top preference of the customers in the competitive airline market.
Work Cited
Barnett, Michael L. and Timothy G. Pollock. The Oxford Handbook of Corporate Reputation. OUP Oxford, 2012.
Chevalier, Michel and Gerald Mazzalovo. Luxury Brand Management: A World of Privilege. John Wiley & Sons, 2012.
Gross, Sven and Alexander Schröder. Handbook of Low-Cost Airlines: Strategies, Business Processes, and Market Environment. Erich Schmidt Verlag GmbH & Co KG, 2007.
Kapferer, Jean-Noël. The New Strategic Brand Management: Advanced Insights and Strategic Thinking. Kogan Page Publishers, 2012.
Lawton, Thomas C. Strategic management in aviation: critical essays. Ashgate Publishing Limited, 2007.
Martin, Graeme, Cary L Cooper and Ronald J Burke. Corporate Reputation: Managing Opportunities and Threats. Gower Publishing, Ltd, 2012.
Riley, Francesca Dall’Olmo, Jaywant Singh and Charles Blankson. The Routledge Companion to Contemporary Brand Management (Routledge Companions in Business, Management, and Accounting) 1st Edition. Routledge, 2016.
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