How Did They Do That? EasyJet

Since its inception in 1995, EasyJet has been a prominent name in the UK airline industry. With its iconic orange branding, innovative strategies, and bold marketing campaigns, the airline has continuously distinguished itself in a fiercely competitive market.

When EasyJet entered the market there were two main categories of competitors. First, the legacy businesses.These were national airlines, often government-backed, which had dominated the skies for decades. In the UK, this primarily refers to British Airways. Other European legacy carriers include Lufthansa (Germany), Air France (France), and KLM (Netherlands). The second were emerging low-cost carriers such as Ryanair. Founded in 1984, Ryanair had already laid the groundwork for the European low-cost model by the time EasyJet came onto the scene.

Beginning with just two routes and two leased aircraft, EasyJet made a strategic decision to eliminate unnecessary frills, focusing on providing affordable flights. This barebones model, which translated into lower costs and cheaper tickets for passengers, effectively disrupted the airline industry by offering a budget-friendly alternative to traditional carriers. However, not everything was smooth sailing. One early challenge that EasyJet encountered was its policy of not allocating seating. This cost-saving measure led to 'scramble boarding,' causing considerable stress among passengers.

At its core, EasyJet's business model was about simplicity and efficiency. They operated a single type of aircraft, reducing maintenance and training costs. Overhead costs were also kept low by using secondary airports, which often charged lower landing fees and had faster turnaround times.

EasyJet also promoted direct sales. By  bypassing travel agents and promoting direct sales by telephone and latterly through its website, not only gave EasyJet a competitive edge but also reduced distribution costs. Unlike many traditional carriers that had fixed pricing structures, EasyJet introduced a dynamic pricing model where fares would rise as the plane filled up. This incentivised early bookings and optimised revenue on each flight.

EasyJet invested in clever marketing campaigns that resonated with a younger, more budget-conscious demographic. Their straightforward, sometimes cheeky, advertising highlighted their value proposition clearly. For example, short-haul flights were priced at under £30 which was the same price as a pair of jeans. EasyJet used a pair of jeans in their advertising to make this point.

It was also quick to recognise the power of television in building its brand image and participated in a behind the scenes ITV documentary on Luton Airport entitled Airline. This programme raised the profile both of the airline and its founder, Stelios Haji-Ioannou.

To consolidate its standing in the UK and European markets, EasyJet embarked on an expansion strategy. The 2002 acquisition of Go Fly was a testament to this approach, enabling the airline to tap into new markets, leverage economies of scale, and fortify its market position.

EasyJet's low-cost, customer-centric model undeniably revolutionised the airline industry. Established carriers had to reevaluate their business models, service offerings, and pricing strategies to remain competitive. Moreover, EasyJet's early adoption of technology and its dynamic marketing campaigns extended its influence beyond the UK, making it a recognised brand across Europe.

In conclusion, EasyJet's journey in the UK's airline industry exemplifies the impact of a well-executed business model, a keen sense of market dynamics and the importance of branding. As with all airlines, trading post Covid has been tough and EasyJet lost money over the next few years. Things improved markedly in 2023, however, with revenue increasing by 42% to £8,171m, resulting in a pre tax profit of £455m.

While it has had its share of criticisms and challenges, the airline's overarching influence on the industry remains unchallenged. 

EasyJet's evolution offers several transferable lessons that other brands can apply to their own businesses. Here are some key takeaways:

1. Simplicity and Cost-Efficiency: EasyJet's success was built on the foundation of simplicity and cost-efficiency. Businesses across industries can benefit from streamlining their operations, eliminating unnecessary complexities, and finding ways to reduce costs while maintaining quality.
   
2. Customer-Centric Approach: EasyJet focused on delivering value to its customers through affordable prices and improved customer experience. Brands can similarly prioritize their customers' needs, gather feedback, and make continuous improvements to their products or services.
   
3. Innovative Business Models: The airline's no-frills, low-cost model disrupted the airline industry. Other businesses can consider innovative approaches to their business models that challenge traditional norms, providing new value propositions to consumers.
4. Effective Marketing and Branding: The airline's distinctive orange branding and strategic marketing campaigns helped it stand out in a crowded market. Building a strong and consistent brand identity, coupled with creative and targeted marketing, can significantly impact brand recognition and loyalty.
5. Learning from Mistakes: EasyJet's journey wasn't without missteps, such as early boarding issues and controversial marketing campaigns. Other brands can learn from their mistakes, listen to customer feedback, and make necessary improvements to enhance their offerings.
   
6. Resilience in Times of Crisis: The airline industry's resilience was tested during the COVID-19 pandemic. Brands can learn from EasyJet's response by diversifying revenue streams, managing costs, and planning for contingencies to navigate unforeseen challenges.
   
7. Strategic Communication: EasyJet's communication with customers during disruptions or changes was crucial. Brands should maintain transparent, clear, and empathetic communication with their customers to build trust and loyalty.

Incorporating these lessons into their strategies, brands can navigate evolving markets, strengthen customer relationships, and position themselves for long-term success. However, it's essential to adapt these lessons to the specific context and industry of each brand to ensure their effectiveness.