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Bmibaby

Executive Summary

The purpose of this report was to analyse Bmibaby's competitive position by looking at the company's market environment in order to recommend a future generic marketing strategy. The report undertakes a PEST analysis, company analysis and a competitor analysis in order to examine Bmibaby's position within the market and to provide a SWOT analysis for Bmibaby which considers internal and external issues for the company. It continues by recommending Ansoff's Market Extension strategy as generic future marketing strategy for bmibaby to position themselves in the competitive market for low cost airlines.



Contents page

1.Executive Summary 1

2. Contents Page 2

3. Introduction 3

4. Methodology 3

5. Findings and Analysis 3
5.1 PEST ANAYLSIS 3
5.2 COMPANY ANALYSIS 4
5.3 COMPETITOR ANALYSIS 5
5.4 SWOT ANALYSIS 6

6.Conclusion 7

7. Recommendations 7

8. References 9

9. Appendices

Tables

1.SWOT Analysis

2. Ansoff's Product/Market Matrix


3.Introduction/background
Over the last twenty years the success of low cost airlines (LCAs) has soared and they now represent 25% of total air travel in Europe (Mintel, 2006). Ryanair and Easyjet are the market leaders for LCAs and due to their success BMI decided to follow suit in 2002 launching their own LCA, Bmibaby (www.bmibaby.com a). Bmibaby is now the UKs fastest growing LCA and is offers the biggest LCA network at London Gatwick. The LCA report, November 2006, declares that the LCA industry has been growing at a rate of 35% a year and is expected to continue to increase.

4.Methodology
This report is based on an analysis of secondary information from a number of sources including the 2006 Mintel report "Low-cost airlines-International-2006". The search engine "Google" was used to provide links to websites and online newspapers and a variety of textbooks and...