Services Marketing Project - IndiGo Airlines

Services at IndiGo Airlines
} Presented By: Sudip Dutta PGDM 2010 -2012 Marketing Major Globsyn Business School, Kolkata
Indian Aviation Industry

Aviation industry in India in 9th largest industry and fastest growing industry in the world.
The number of travellers carried by domestic airlines between January and June 2010 increased 21.86 per cent to 25.71 million, contrasted with 21.09 million in the corresponding time span of 2009, facts and figures supplied by diverse household airlines showed.
With Air traffic extending to augment at over 21 per cent in June, India's largest low-cost carrier Indigo is catching up to restore Air India at the third spot in terms of market share. According to the facts and figures issued by the Directorate General of Civil Aviation, Indigo has expanded its market share to 16.4 per cent, close to Air India's 16.9 per cent. Amidst the other airlines, JetLite bagged 26.5 per cent, pursued by Kingfisher at 21 per cent and Air India amidst the LCCs, IndiGo is pursued by SpiceJet at 13.3 per cent, Go Air at 5.8 per cent and Paramount at 0.3 per cent. The number of traveller soaring in June this year increased to 4.57 million from 3.76 million in the identical month last year.
} IndiGo Airlines commenced operations on the 04th of August 2006 with their inaugural flight from Delhi to Imphal } Founded by Rahul Bhatia and Rakesh Gangwali. InterGlobe established IndiGo the following year, modelled on US low cost carrier JetBlue and bolstered with an investment from president & CEO Bruce Ashby (a former US Airways EVP). } Consolidating its position as the fastest growing airline in India with 237 . flights, connecting 25 destinations across the nation, in a short span of almost 5 years. } January 19, 2011 India's largest low fare airline, IndiGo, has been granted international traffic rights, by the Government of India, to operate services from several cities in India to Singapore, Bangkok, Dubai and Muscat during the forthcoming summer schedule } India, August 12, 2010After bagging the prestigious Skytrax World Airline Award for being the best low cost airline of India & Central Asia at the World Airline Awards.
Airline wise- Market Share
Chair Factor
IndiGo Airlines described the highest chair factor of 90.7 per cent, pursued by flavour Jet Airways 88.5 per cent, Paramount Airways 86.8 per cent, Kingfisher Airlines 85.1 per cent, Go Air 84.0 per cent, JetLite 83.6 per cent, Jet Airways 80.5 per cent Air India household 72.3 per cent, in that order. The general on-time presentation (OTP) of scheduled domestic airlines in June 2010 has been 78.5 per cent. IndiGo has a simple philosophy: offer fares that are always low, flights that are on time, and a courteous, hassle-free travel experience. IndiGos On Time Performance is one of the best in India. IndiGos Technical Dispatch Reliability is 99.91% making it the airline with the least number of cancellations in India.
4Ps OF MARKETING MIX
PRODUCT
Design. Quality. Range. Brand Name. Features.
PLACE
Distribution Channels. Methods of Distribution. Coverage. Location.
PRICE
List Price. Discounts. Commissions.
PROMOTION
Advertising. Sales Promotion. Salesmanship.
Surcharges. Publicity. Extras.
RAINBOW OF SERVICE MARKETING MIX
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PROCESS
PHYSICAL EVIDENCE
PRODUCT MIX Giving a Feel For The Product Inside a Service Wrapper .
Consumers are demanding not products, or features of products but the benefits they will be offered.
The airline product includes of two types of services: 1. On the Ground Services. 2. In-Flight Services.
PRICE MIX
Premium Pricing
Value For Money Pricing
Cheap Value Pricing
Low-Cost Pricing
APEX Fares
PLACE MIX
} Online 24-hour reservation Systems. } Consolidation. } Tour Operator/ Travel Agent. } Affiliated with companies.
PROMOTION MIX
Advertising
Airlines advertisement needs to keep in mind the image of country, the scenic beauty, tourist attractions, rich cultural heritages or which would attract number of tourists.
Publicity
The PRO, receptionist, travel agents, media people are very important people in publicizing the business.
Sales Promotion
The travel agents, tour operators, frontline staffs contribute a lot to the promotion of airlines business.
Word of Mouth
Customer Loyalty Ladder .
PEOPLE MIX
} Competence. } Reliability. } Caring Attitude. } Responsiveness. } Initiative. } Problem Solving Ability. } Goodwill.
PROCESS MIX
} Reservation. } Flight Information. } Facilities at the Airport. } Baggage Handling. } Meal Service. } Flight Entertainment. } Deliver Quality Service.
PHYSICAL EVIDENCE
In-flight:
Aircraft. Seating Configuration. Good Inner-exteriors. Cleanliness. Uniforms. Ambience. Baggage. Labels or Tag.
On the ground:
Booking offices or ticket counters. Paperwork. Brand Logo. Tickets.
PROCESS FLOW DIAGRAM OF SERVICES DELIVERY } The services delivery process flow diagram (PFD) is as hyperlinked.
Positioning Strategies
} Price & Product Attributes Economy oriented } Customer Service Processes On time every time } Strong & Organized Service Distribution & Delivery Systems } Healthy & Luxurious Service Environment } Competent Service Personnel
Tag line - On Time Every Time
Application of Focus Strategy Analysis
BREADTH OF SERVICE OFFERINGS
Narrow
Service Focused
Wide
Unfocused (Everything for everyone)
Many
NUMBER OF MARKETS SERVED
Few
Fully Focused (Service and market focused)
Market Focused
IndiGo Airlines concentrates on a particular type of market which is economy-driven and only serves that market. Thus it adopts FULLY FOCUSED Strategy.
Evaluation of Competition
} With Air traffic extending to augment at over 21 per cent in June, India's largest low-cost carrier Indigo is catching up to restore Air India at the 3rd spot in terms of market share. } According to the facts and figures issued by the Directorate General of Civil Aviation, Indigo has expanded its market share to 16.4 per cent, close to Air India's 16.9 per cent. Amidst the other airlines, JetLite bagged 26.5 per cent, pursued by Kingfisher at 21 per cent and Air India amidst the LCCs, IndiGo is pursued by SpiceJet at 13.3 per cent, Go Air at 5.8 per cent and Paramount at 0.3 per cent. } The number of traveller soaring in June 2011 increased to 4.57 million from 3.76 million in the identical month last year.

Services Marketing Project - IndiGo Airlines

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Services Marketing Project - IndiGo Airlines

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Services at IndiGo Airlines

Indian Aviation Industry

Airline wise- Market Share

4Ps OF MARKETING MIX

Surcharges. Publicity. Extras.

RAINBOW OF SERVICE MARKETING MIX

Value For Money Pricing

Cheap Value Pricing

Tag line - On Time Every Time

Application of Focus Strategy Analysis

BREADTH OF SERVICE OFFERINGS

Fully Focused (Service and market focused)

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