Fly-it-cheap is a UK based low-cost airline which was established in Bristol 10 years ago. Nowadays, Fly-it-cheap manages 10 Boeing737 aeroplanes and carried 2.3 million passengers in one year. Turnover and profit are both growing and are highly regarded by industry watchers, which is a potential, innovative and energy-saving company. This enterprise is focus on low-cost in all aspects, like service, price, place, people, promotion, process and physical evidence. However, Fly-it-cheap have some deficiency in their marketing mix. Marketing mix is the set of manageable tactical marketing tools that the firm coordinates to get the response it wants in the target market (Armstrong and Kotler, 2009).
Fly-it-cheap needs to focus on customer’s satisfaction degree, attract more customers and reduce cost. Product (service) is the goods-and-services combination the company offers to the target market (Armstrong and Kotler, 2009). E.g. Fly-it-cheaps service is low-cost, no-frills air travel, have simple food and drinks provided but pay a premium, links to car hire and local hotel at each destination. Furthermore, Fly-it-cheap can provide services like buses from the airport to the centre of cities and charge customers for this convenience. This is what Ryanair does (Marketingteacher.com, 2010a). To encourage people to buy more food Fly-it-cheap could make a coffee smell in the airplane, so when customers smell this they will feel hungry and pay more.
Price is ‘the amount of money customers must pay to obtain the product’ (Armstrong and Kotler, 2009). E.g. at the moment Fly-it-cheap has very low fares. However, The low-cost of the seats on each aircraft’s journey can be changed to 55% and higher-cost are 39%, 6% for later-booking seats which are very high cost for booking in the final days before travel. Establish VIP system (patronage awards) so that members can get the preferential price or discount (price deals) (NCC Education, 2007). Fly-it-cheap always keeps low-cost, which can change the styles that establish customer loyalty, e.g. VIP card, discount. These are the best ways to attract customers.
Place includes ‘company activities that make the product available to target consumers’ (Ezinearticles.com, 2010). For example, Fly-it-cheap does not use travel agents and just sells tickets on-line. However, they could establish just one travel agent to customer for a fee who can not book tickets and pre check-in on-line. Other people must book tickets and pre-check-in on-line. Also, they could use cheaper airports to reduce landing charges but transportation need to stay convenient.
Promotion is ‘an activity that communicates the merits of the product and persuade target customers to buy it’ (Marketingteacher.com, 2010b). Currently, Fly-it-cheap mainly uses the Internet for promotion, but also public relations (PR). Spend some on PR build trust and goodwill by presenting the product, company or person in a positive light (Ezinearticles.com, 2010). Fly-it-cheap could use the establish VIP system to send direct mail by naming the VIP (NCC Education, 2007). Also. They could have sales promotion when festival is coming and during off season.
People are ‘essential ingredient to any service provision is the use of appropriate staff and people’ (learnmarketing.net, 2010). In addition to employing old pilots who have retired and the mother wants come back
