netrashetty
Netra Shetty
Johnson Controls, Inc. (NYSE: JCI) is a company, based in Milwaukee, Wisconsin, USA. It was founded in 1885 by professor Warren S. Johnson, inventor of the first electric room thermostat.
It is a Fortune 100 diversified, multi-industrial company with 142,000 employees in 1,300 locations across six continents.
eo, 2002).
Critical Success Factors
Although the company had encountered different problems, specifically in line with its cost structures, the company had been able to survive and grow in the marketplace. Ryanair implement different marketing strategy to make the company survive in the competition and to be able to gain competitive position in the airline market. It is said that the company was regarded recently as the most punctual airline between Dublin and London. And because of the strategy of the industry, Ryanair is now recognised as the second largest airline in United Kingdom and Europe’s largest low-fares airline having a network of over 57 routes in 11 countries and served by a fleet of 31 Boeing 737-200 and -800 aircraft with over 1,400 staffs and personnel.
In order to position itself in the marketplace the company continuously concentrates on driving own its costs to offer the lowest fares possible and remain profitable. In addition, Ryanair offer minimum standards of service and very low prices for point-to-point, short haul flights. The goal of Ryanair is to meet the needs of travelling at the lowest price. The Critical Success Factors (CSFs) are as follows in airline industry: the strategic focus of having the lowest prices, being reliable within the marketplace, comfort and service and frequency.
It is noted that low-cost companies concentrate on this first critical success factor by trying to offer the lowest prices. Although Ryanair has eliminated extras such as in-flight meals, advanced seat assignment, free drinks and other services, it still prioritises features which remain important to its target market. Such features include frequent departures, advance reservations, baggage handling and consistent on-time services.
Cost Reduction Strategy
To achieve its goal of having a competitive position in the airline market, Ryanair uses a cost reduction strategy. Such cost reduction strategy relies on five main aspects like fleet commonality, contracting out services, airport charges and route policies, managed staff costs and productivity and managed marketing costs. In terms of fleet commonality, the company used only one kind of plane which limits the cost for staff training, maintenance services and facility of obtaining spares, facility in scheduling aircraft and crew assignment. With their purchase of aircraft Boeing 737, Ryanair has been able to gain capacity and reduces the average age of fleet which means savings on maintenance costs and avoiding the fit of European Union-conform equipment on old feet.
The next factor under the cost reduction strategy of Ryanair is contracting out services. In this manner, aircraft handling, ticketing, handling and other functions are contracted out by Ryanair to third parties. In addition, in order to limit their expenses engine and heavy maintenance are also contracted out whereas the staff of Ryanair carries out routine maintenance.
Another factor for the cost reduction strategy of the company is in terms of airport charges and route policies. Herein, Ryanair has made judicious choice of dealing with secondary and regional airports, where the traffic is not jammed and fees incomparably lower. Since Ryanair, is a true windfall for such airports, the airline company has a bargaining power which enables it getting favourable access fees. In addition, Ryanair provides only a point-to-point service, thus, it has no cost concerning connecting passengers. Moreover, the company pays special focus to on-time departures because it means maximising aircraft utilisation.
Managing staff costs and productivity is another factor used for reducing the cost for Ryanair. In this manner, the company pays its staff on modest salary but has set up a performance related pay structure which urges employees to maximise the number of sectors flown daily. This way, Ryanair both controls productivity and keeps staff costs down. Lastly, managing marketing costs is another factor that makes the company reduces it costs. Ryanair advertises mainly on it website with its logo “Ryanair.com, the Low-Fare Airline”. In addition, it is also advertised in national and regional Irish and UK newspaper, on radio and on televi
Note: All audience figures are a measure of unique UK visitors from home and work computers.
The UK price-comparison sector is characterised by pure online businesses that principally use advertising to help drive consumers to their sites, so, any change in their online audience is an excellent indicator of how well their advertising is performing.
Looking at the sector as a whole, the number of unique UK visitors from home and work computers to price-comparison sites is very sensitive to ad spend. When more is spent on advertising, visitors to these sites go up, and when spend dips, the online audience quickly dips.
As newer entrants to the market have become better-established, this sensitive correlation has become even more noticeable over the last two years.
In 2008, the correlation between aggregate ad spend and unique UK visitors to price comparison sites was 54 percent. (A correlation of 100% is a perfect match, where a change in ad spend is mirrored by the exact same change in site visitors.)
In 2009 the correlation rose to 75 percent, and by 2010 it was 82 percent – statistically a very strong correlation. Audiences remain fickle and it appears to be hard to retain an audience once an ad campaign has finished.
Advertising by business
Of the four main price-comparison sites, GoCompare has been the biggest spender on advertising over the last three years. It invested particularly heavily last year, when it spent 30 percent more on advertising than its nearest rival, MoneySupermarket.
Online audiences
MoneySupermarket has consistently been the most-popular price-comparison site in the UK over the three years covered by the study, averaging three times more unique UK visitors from home and work computers than its nearest rival.
Due to the inherent nature of the sector, there isn’t a large degree of exclusive brand loyalty for price-comparison sites – consumers will visit more than one of them in any given month.
For example, during January 2011, at least 43 percent of visitors to each of Confused.com, GoCompare and Comparethemarket also visited MoneySupermarket.
Advertising effectiveness
Although not all visitors are driven to price-comparison sites by advertising, comparing a site’s average monthly ad spend against the average monthly number of visitors it attracts gives a good proxy of how effective a business’s advertising is at pulling in customers.
Aggregating these across the year, MoneySupermarket spends the least on advertising per unique UK visitor to its site. In 2010, it spent 58p per person. In 2008, the relative newcomers GoCompare and Comparethemarket were still working hard to establish their brands in the consciousness of consumers.
Since 2009 though, when they each launched ad campaigns with new characters - an opera singer and a meerkat, respectively – their cost-per-visitor has dropped dramatically. The ad-cost-per-visitor for Comparethemarket, for example, has dropped nearly fourfold, from £5.47 in 2008 to £1.45 in 2010.
TV remains dominant
All four price-comparison players heavily concentrate their ad spend on TV. This is particularly the case for the newer entrants Comparethemarket and GoCompare, which have invested, respectively, 92 and 89 percent of their spend over the last three years on TV, as they look to establish their brands.
MoneySupermarket has taken a more varied approach, investing 14 percent of its spend in online advertising, compared to just one percent by both Confused.com and GoCompare and nothing by Comparethemarket.
Audience response to TV ads
Since January 2010, Comparethemarket’s TV ads - starring the meerkat character Aleksandr Orlov -have by far been the most-liked in the sector. Seventy-three percent of TV viewers who remember the brand have either liked their ads ‘a lot’ or ‘somewhat’.
However, GoCompare has the highest ‘brand recall’ from its TV ads. Sixty percent of viewers seeing their ads can remember the brand name the following day.
Looking at the likeability scores of the TV ads in more detail, Comparethemarket’s ads are universally liked; ads for Moneysupermarket and Confused.com are regarded with more neutrality but are generally liked, while GoCompare’s ads, featuring its opera singer, polarise viewers between generally liking them and disliking them a lot.
Audience Profile
All four of price-comparison sites covered slightly over-perform on attracting female visitors, though this bias is a little stronger for Confused.com.
Comparethemarket attracts a higher concentration of young adults (16-34 yr-olds) than any other of the others, while all four sites strongly attract the over-50s. Pensioners are particularly attracted to MoneySupermarket and Confused.com, but much less so to GoCompare.
It is a Fortune 100 diversified, multi-industrial company with 142,000 employees in 1,300 locations across six continents.
eo, 2002).
Critical Success Factors
Although the company had encountered different problems, specifically in line with its cost structures, the company had been able to survive and grow in the marketplace. Ryanair implement different marketing strategy to make the company survive in the competition and to be able to gain competitive position in the airline market. It is said that the company was regarded recently as the most punctual airline between Dublin and London. And because of the strategy of the industry, Ryanair is now recognised as the second largest airline in United Kingdom and Europe’s largest low-fares airline having a network of over 57 routes in 11 countries and served by a fleet of 31 Boeing 737-200 and -800 aircraft with over 1,400 staffs and personnel.
In order to position itself in the marketplace the company continuously concentrates on driving own its costs to offer the lowest fares possible and remain profitable. In addition, Ryanair offer minimum standards of service and very low prices for point-to-point, short haul flights. The goal of Ryanair is to meet the needs of travelling at the lowest price. The Critical Success Factors (CSFs) are as follows in airline industry: the strategic focus of having the lowest prices, being reliable within the marketplace, comfort and service and frequency.
It is noted that low-cost companies concentrate on this first critical success factor by trying to offer the lowest prices. Although Ryanair has eliminated extras such as in-flight meals, advanced seat assignment, free drinks and other services, it still prioritises features which remain important to its target market. Such features include frequent departures, advance reservations, baggage handling and consistent on-time services.
Cost Reduction Strategy
To achieve its goal of having a competitive position in the airline market, Ryanair uses a cost reduction strategy. Such cost reduction strategy relies on five main aspects like fleet commonality, contracting out services, airport charges and route policies, managed staff costs and productivity and managed marketing costs. In terms of fleet commonality, the company used only one kind of plane which limits the cost for staff training, maintenance services and facility of obtaining spares, facility in scheduling aircraft and crew assignment. With their purchase of aircraft Boeing 737, Ryanair has been able to gain capacity and reduces the average age of fleet which means savings on maintenance costs and avoiding the fit of European Union-conform equipment on old feet.
The next factor under the cost reduction strategy of Ryanair is contracting out services. In this manner, aircraft handling, ticketing, handling and other functions are contracted out by Ryanair to third parties. In addition, in order to limit their expenses engine and heavy maintenance are also contracted out whereas the staff of Ryanair carries out routine maintenance.
Another factor for the cost reduction strategy of the company is in terms of airport charges and route policies. Herein, Ryanair has made judicious choice of dealing with secondary and regional airports, where the traffic is not jammed and fees incomparably lower. Since Ryanair, is a true windfall for such airports, the airline company has a bargaining power which enables it getting favourable access fees. In addition, Ryanair provides only a point-to-point service, thus, it has no cost concerning connecting passengers. Moreover, the company pays special focus to on-time departures because it means maximising aircraft utilisation.
Managing staff costs and productivity is another factor used for reducing the cost for Ryanair. In this manner, the company pays its staff on modest salary but has set up a performance related pay structure which urges employees to maximise the number of sectors flown daily. This way, Ryanair both controls productivity and keeps staff costs down. Lastly, managing marketing costs is another factor that makes the company reduces it costs. Ryanair advertises mainly on it website with its logo “Ryanair.com, the Low-Fare Airline”. In addition, it is also advertised in national and regional Irish and UK newspaper, on radio and on televi
Note: All audience figures are a measure of unique UK visitors from home and work computers.
The UK price-comparison sector is characterised by pure online businesses that principally use advertising to help drive consumers to their sites, so, any change in their online audience is an excellent indicator of how well their advertising is performing.
Looking at the sector as a whole, the number of unique UK visitors from home and work computers to price-comparison sites is very sensitive to ad spend. When more is spent on advertising, visitors to these sites go up, and when spend dips, the online audience quickly dips.
As newer entrants to the market have become better-established, this sensitive correlation has become even more noticeable over the last two years.
In 2008, the correlation between aggregate ad spend and unique UK visitors to price comparison sites was 54 percent. (A correlation of 100% is a perfect match, where a change in ad spend is mirrored by the exact same change in site visitors.)
In 2009 the correlation rose to 75 percent, and by 2010 it was 82 percent – statistically a very strong correlation. Audiences remain fickle and it appears to be hard to retain an audience once an ad campaign has finished.
Advertising by business
Of the four main price-comparison sites, GoCompare has been the biggest spender on advertising over the last three years. It invested particularly heavily last year, when it spent 30 percent more on advertising than its nearest rival, MoneySupermarket.
Online audiences
MoneySupermarket has consistently been the most-popular price-comparison site in the UK over the three years covered by the study, averaging three times more unique UK visitors from home and work computers than its nearest rival.
Due to the inherent nature of the sector, there isn’t a large degree of exclusive brand loyalty for price-comparison sites – consumers will visit more than one of them in any given month.
For example, during January 2011, at least 43 percent of visitors to each of Confused.com, GoCompare and Comparethemarket also visited MoneySupermarket.
Advertising effectiveness
Although not all visitors are driven to price-comparison sites by advertising, comparing a site’s average monthly ad spend against the average monthly number of visitors it attracts gives a good proxy of how effective a business’s advertising is at pulling in customers.
Aggregating these across the year, MoneySupermarket spends the least on advertising per unique UK visitor to its site. In 2010, it spent 58p per person. In 2008, the relative newcomers GoCompare and Comparethemarket were still working hard to establish their brands in the consciousness of consumers.
Since 2009 though, when they each launched ad campaigns with new characters - an opera singer and a meerkat, respectively – their cost-per-visitor has dropped dramatically. The ad-cost-per-visitor for Comparethemarket, for example, has dropped nearly fourfold, from £5.47 in 2008 to £1.45 in 2010.
TV remains dominant
All four price-comparison players heavily concentrate their ad spend on TV. This is particularly the case for the newer entrants Comparethemarket and GoCompare, which have invested, respectively, 92 and 89 percent of their spend over the last three years on TV, as they look to establish their brands.
MoneySupermarket has taken a more varied approach, investing 14 percent of its spend in online advertising, compared to just one percent by both Confused.com and GoCompare and nothing by Comparethemarket.
Audience response to TV ads
Since January 2010, Comparethemarket’s TV ads - starring the meerkat character Aleksandr Orlov -have by far been the most-liked in the sector. Seventy-three percent of TV viewers who remember the brand have either liked their ads ‘a lot’ or ‘somewhat’.
However, GoCompare has the highest ‘brand recall’ from its TV ads. Sixty percent of viewers seeing their ads can remember the brand name the following day.
Looking at the likeability scores of the TV ads in more detail, Comparethemarket’s ads are universally liked; ads for Moneysupermarket and Confused.com are regarded with more neutrality but are generally liked, while GoCompare’s ads, featuring its opera singer, polarise viewers between generally liking them and disliking them a lot.
Audience Profile
All four of price-comparison sites covered slightly over-perform on attracting female visitors, though this bias is a little stronger for Confused.com.
Comparethemarket attracts a higher concentration of young adults (16-34 yr-olds) than any other of the others, while all four sites strongly attract the over-50s. Pensioners are particularly attracted to MoneySupermarket and Confused.com, but much less so to GoCompare.