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Having entered the third year of its Always Getting Better programme, Ryanair has “succeeded” in changing the negative perceptions associated with its brand and is now being inspired by Amazon to branch out into retail, according to its CMO Kenny Jacobs.
Earlier this week, Ryanair announced the third phase of the programme after announcing that pre-tax profits for the six months to the end of September rose by 37% to €1.09bn (£870m).
Most notably, the budget airline is making its baggage policy simpler by cutting the number of payment options from 108 to six.
It will also be introducing new-look cabins with bigger windows and an extra inch of legroom, courtesy of the new Boeing 737-800s joining its fleet.
And, in what Jacobs describes as the ability to “crowd source ideas from customer feedback”, it will launch a ‘rate my flight’ function on its mobile app, where customers can leave instant feedback after landing, alongside an Amazon-style one tap payment option where customers can pay for services such as express security checks and upgrades.
According to Jacobs, Ryanair is no longer interested in getting one up on other airlines such as EasyJet but in gaining inspiration from digital giants such as Amazon.
He told Marketing Week: “When I look at who we want to be like it is more like Amazon and Ikea than other airlines. The next phase is more personalisation and getting into the space where we’re a travel retailer that just happens to specialise in flights.
“We want to take the best of the Booking.com mantra and deliver product beyond flights. You should be able to book flights, hotels, cars, holidays, taxis, restaurants, all through Ryanair. That is the flag on top of the mountain we’re heading for. If we can achieve half of that, it will be significant and we’ll be able to improve trust and get a greater share of wallet.”
Central to this vision is improvements to the Ryanair app. Despite launching just 18 months ago, it already has eight million active users, with mobile bookings now representing 30% of the total.
“It has been incredible and when we look and think of new features we now think of the app first and the desktop second,” added Jacobs, who says there is room to add more loyalty-based rewards. “We think we can hit 50% of all transactions coming through the mobile app within 18 months.”
Accepting that customers care most about price
Since launching Always Getting Better three years ago, Jacobs said Ryanair has seen customer numbers increase from 80 million to 120 million. The load factor, which has risen 10%, represents 20 extra passengers on every Ryanair flight.
However, Jacobs admits that this increase in numbers is still largely driven by price and although customers are responding well to improvements, it is the budget aspect of the airline that they care about most.
“Discount brands just win. Consumers will say they want everything else, but when it comes to voting with their bums it is the cheapest fares that win out. While we’ve made all these improvements, over the same period fares have also got cheaper– that is the single biggest attraction.”
He says in-flight changes, such as adding more food options, making flights “less yellow” and staff wearing new uniforms, has made flying with Ryanair feel like a “new experience”. The next phase of in-flight improvements will include giving customers the option of pre-ordering their food before a flight.
He said too many try to change brand perception without actually making changes to their core offer.
He advised: “There’s no airline brand in the world that has had the successful transformation we’ve had.
“It is about changing the actual experience and then the brand perception follows. That is quite an important distinction in my mind. Lots of brands that go through a transformation, they’ll try to say ‘let’s really change the brand perception’ and hope the reality catches up; that’s the wrong way to do it.“
Ikea may have revolutionized shopping for flat pack furniture, but oh, all that walking and those long lines. Not to mention the parking lots.
The Swedish company thinks it has the answer. Its testing a variety of smaller stores in the United Kingdom, Spain and Norway to find out if customers will happily order home furnishings and inexpensive art online, and then collect their shopping from a smaller store.
One trial store is only a tenth the size of a normal Ikea.
“We will use these tests as an opportunity to find out more about how customers want to shop with IKEA in these areas,” Ikea said in a statement.
The chain is even considering a store on London's Oxford Street at the heart of the city's shopping district.
“Click and Collect” locations are popping up all over the U.K.
Amazon collection lockers can now be found at train stations and gas stations. Start-up Doddle has 44 sites around the U.K., mostly in train stations, and calls its service “Commute and Collect” for online orders from fashion retailers and also from Amazon. eBay now has “Click and Collect” in more than 750 stores of the British chain Argos.
While a smaller Ikea might make it easier to pick, or return, what you've bought, it won't help you with the instructions to assemble that dresser.
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IKEA believes that children are the most important people in the world, and that there is a lot to learn by listening to them. So we think it’s time to let kids into the kitchen.
Content approach based on insights:
According to the IKEA’s Life At Home Report, watching TV has become the most common family activity (82%), particularly in the UK (88%), the USA (88%), Spain (86%) and the Netherlands (86%).
In an attempt to change this, IKEA has made it their aim to bring the kids back into the kitchen. It is all about making out the do’s and don’ts, and instead focusing on five rules that will make cooking fun for kids, as well as manageable for the parents.
Today, IKEA presents “Cooking With Parents” – a manifesto from children to parents.
SYDNEY — You can now live your own version of the movie 500 Days of Summer — by staying a night in an Ikea store. For real: you could be sleeping on the beds, cooking with fake ovens, eating all the meatballs.
How? In what may well be the partnership of the century, Airbnb has coupled with everyone’s favourite Scandinavian flat-packing store for one night only — August 31, at one store in Sydney.
The promotional rooms at the Ikea in Tempe, Sydney boast an ideal location near the airport with city skyline views and will be home to three families of lucky winners. There are three options to choose from: rustic charm, inner city living or modern elegance.
The cost? A mere 12 Australian dollars.
“Airbnb gives people access to the most unique listings around the world from treehouses to yurts to villas, and now we’re adding Ikea to the list,” Eva Ross, Local Operations Lead at Airbnb Australia, said in a statement. “The experience is sure to thrill any guest.”
There’s one proviso in the fine print: “By entering, you agree to be part of an event that will be covered by the media,” it says. “Oh, and that you will be woken in the morning in a remarkable way. Nothing frightening — we promise!”
For anyone who has ever dreamed of sleeping in the giant blue box store without assembling the bed first, your moment has arrived — so long as you’re O.K. with surprises.
Ikea built a website inside Instagram | The Verge.
To help push Ikea’s intensely odd PS 2014 collection, the furniture seller’s Russian division hired ad agency Instinct to build a marketing campaign within Instagram. Navigating to the Instagram account ikea_ps_2014 on your smartphone — it won’t format correctly in your browser — will open up a “website” within the app, consisting of 12 images. The account acts as an interactive catalog, divided into Benches, Tables, Storage, Light, Textiles, and Ideas. Clicking through to view either of these images brings up a variety of tags that link to separate pages with more information on each product, such as ps_side_tableand ps_laptop_station, all similarly arranged to resemble catalog pages. It’s one of the more novel uses of Instagram as a free promotional medium, and a fun way to browse Ikea’s collection.