EasyGroup
EasyGroup
The famous name of easygroup is associated with the 40-year-old Greek entrepreneur Stelios Haji-Loannou who is the founder of the first easy business; easyjet in 1995. He is the owner of the EasyGroup (http://www.easy.com/) which was founded in 1998 in order to control the “easy” ventures.
The main objective of the “easy” businesses is to provide services and products at cheaper prices.
After the foundation of easyjet in 1995 which started operating flights between England (Luton) and Scotland, the company flourished and opened many other routes across Europe (more than 200 routes ….)
In few years EasyJet become a brand as result of this prosper business Stelios started to work a brand extension and founded the EasyGroup. In this way we saw the birth of more than ten other “easy” business concepts such as:
- EasyInternetcafé (http://www.easyinternetcafe.com/) :launched in 1999 and is Europe’s largest chain of internet cafés
- EasyCar (http://www.easycar.com/) : launched in 2000 and currently operating as an international car rental via the internet in more than 2400 locations in over 60 countries
- EasyValue (http://www.easyvalue.com/) : launched in 2000 and is an internet shopping comparison site
- EasyMoney (http://www.easymoney.com/) : launched in 2001 which is a credit card converted later in EasyMoney insurance
- EasyCinema (http://www.easycinema.com/) : launched in 2003 and was not so successful so closed in 2006
- EasyCinema DVD Rental (http://dvd.easycinema.com/visitor/home.html) : launched in 2005 as the result of a partnership with LoveFilm; an online dvd rental company.
- EasyHotel (http://www.easyhotel.com/) : which is a booking engine for the easyhotels and for more than 20000 other holtes worldwide
- EasyPizza (http://www.easypizza.com/) : launched in 2004 as a delivery-only pizza company
- EasyCruise (http://www.easycruise.com/) : launched in 2006 and aims the 18-40 age-group and not the traditional retired market only.
As seen, this great brand extension covered many business areas making attainable services at reasonable prices. We can take as example the easycruise which was considered as a luxury product targeting the retired people who are ready to spend money after a long labour life in order to enjoy the rest of their life…With easycruise the aimed customers belong to another age segment; 18-40. Young people have the possibility to enjoy a nice cruise at a cheaper price but of course with fewer facilities….
The first successful easy business was easyjet. Stelios used a magnificent mean to fulfil his target which was reducing costs then offering flights at low prices. He used the yield management which is a very useful tool to maximise profits. The core concept of yield management is to provide the right service to the right customer at the right time for the right price.
It was used for the first time in 1977 buy American airlines to increase its revenue.
Stelios tried to adapt yield management to all his businesses by studying the behaviour of the consumers and using the dynamic pricing to attract more customers to increase his benefits.
The famous name of easygroup is associated with the 40-year-old Greek entrepreneur Stelios Haji-Loannou who is the founder of the first easy business; easyjet in 1995. He is the owner of the EasyGroup (http://www.easy.com/) which was founded in 1998 in order to control the “easy” ventures.
The main objective of the “easy” businesses is to provide services and products at cheaper prices.
After the foundation of easyjet in 1995 which started operating flights between England (Luton) and Scotland, the company flourished and opened many other routes across Europe (more than 200 routes ….)
In few years EasyJet become a brand as result of this prosper business Stelios started to work a brand extension and founded the EasyGroup. In this way we saw the birth of more than ten other “easy” business concepts such as:
- EasyInternetcafé (http://www.easyinternetcafe.com/) :launched in 1999 and is Europe’s largest chain of internet cafés
- EasyCar (http://www.easycar.com/) : launched in 2000 and currently operating as an international car rental via the internet in more than 2400 locations in over 60 countries
- EasyValue (http://www.easyvalue.com/) : launched in 2000 and is an internet shopping comparison site
- EasyMoney (http://www.easymoney.com/) : launched in 2001 which is a credit card converted later in EasyMoney insurance
- EasyCinema (http://www.easycinema.com/) : launched in 2003 and was not so successful so closed in 2006
- EasyCinema DVD Rental (http://dvd.easycinema.com/visitor/home.html) : launched in 2005 as the result of a partnership with LoveFilm; an online dvd rental company.
- EasyHotel (http://www.easyhotel.com/) : which is a booking engine for the easyhotels and for more than 20000 other holtes worldwide
- EasyPizza (http://www.easypizza.com/) : launched in 2004 as a delivery-only pizza company
- EasyCruise (http://www.easycruise.com/) : launched in 2006 and aims the 18-40 age-group and not the traditional retired market only.
As seen, this great brand extension covered many business areas making attainable services at reasonable prices. We can take as example the easycruise which was considered as a luxury product targeting the retired people who are ready to spend money after a long labour life in order to enjoy the rest of their life…With easycruise the aimed customers belong to another age segment; 18-40. Young people have the possibility to enjoy a nice cruise at a cheaper price but of course with fewer facilities….
The first successful easy business was easyjet. Stelios used a magnificent mean to fulfil his target which was reducing costs then offering flights at low prices. He used the yield management which is a very useful tool to maximise profits. The core concept of yield management is to provide the right service to the right customer at the right time for the right price.
It was used for the first time in 1977 buy American airlines to increase its revenue.
Stelios tried to adapt yield management to all his businesses by studying the behaviour of the consumers and using the dynamic pricing to attract more customers to increase his benefits.
It possible to understand way how the yield management is used in order to increase revenues by checking deeper the details of one “easy” concept such as EasyPizza. We will also understand how the business offers pizzas at lower prices and is profitable
The concept consists in a delivery pizza service and this choice was not made randomly. That is meaning that easypizza venues are not situated on high street, hence it saves money by avoiding the high cost of high street rents.
But the main change in this business is the way how the assets are used. Normally the ovens and the delivery vehicles are used few hours the day from 18h to 22h.that means that they are under-utilised.
Another demand has to be created in order to provide pizzas during all the day and not during the evening. And here, the magic tool (the yield management) plays the main role. For example : customers who accept to take their pizza delivery at an off-peak time, 15h or 16h for example, are rewarded with a lower price that customers who take delivery of the same pizza at a peak time. Moreover customers who order their pizza in advance benefit from lower prices than those who want it for an immediate delivery. In addition, customers buying pizza from http://www.easypizza.com/ are rewarded with lower which is not the case of those who prefer order their pizzas by phone.
By using yield management it’s possible to create demand and increase revenues. At the same time money is saved and making profits opportunities are multiplied, so no money left on the table!!
When we get in the easypizza website the main message we see is “REMEMBER it costs you less when you order online”
If you would like to have the pizza for an immediate delivery you have to enter a valid postal code and if you would like to order it in advance you have to be registered. If you order for the first time you have to register then you will be able to log in and book pizzas in advance. Of course you will save money. Indeed, the delivery service is not free and the prices of the pizzas shown in the menu don’t include the delivery fees which what time order is placed (0£-4£)
this is a link to a short video explaining the principles of the yield management (http://fr.youtube.com/watch?v=Cvz0Bo03t7c)
posted by Aymen @ 9:27 PM
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