AVIATION SECTOR

MADE BY- (Group 11)

ABHISHEK JAYANT ,ANURAN GAYALI , SWADHA AWASTHI ,SUNIL MANOHAR ,NIMESH
CHAUDHARI

Overview of Aviation industry

150+

1.8
1.6

1.4

Million Passenger
Throughput

1.2

450 +
FDI inflows (US $)

1
0.8

2.19

0.6
0.4
0.2

Million metric tonnes of

Cargo

0
2007

2008

2009

2010

Market share

2011

2012

Indigo
Jet Airways
29.5%

19.8%

Air India
Spicejet

19.1%

22.5 %

2.2
Trillion (US $) of Global
GDP

2013

Government approved 6 new airlines: Air

one, Premier Air,Zexus Air, Turbo Megha,Air
carnival,Zav Airways and TATA-Singapore
airlines.
Establishment of 200 new airports

Go Air

Source DGCA and www.ibef.org as on June 26,2014

So what is Driving aviation?

Economic factors

Policy factors

Over 300 million strong middle

class

Open sky policy

Incomes expected to increase at

an average of 8.5% by 2015

FDI

Increasing preference of private

jets & air charter services by
corporate industry

Emergence of Low cost airlines

Licensing policy

Modernization & setting up of

new airports

Product

Place

Price

Promotion

4Ps according to airlines

On ground service
:

In-flight services:
Cabin service

Check-in service ;
Lounge facility at
airport

Catering service
Ramp service

Product

Product

Place

Price

Promotion

Product

Place

Price

Promotion

Initially offers high

price and then
lowered down
through coupons

Used to convey
superiority of a
product
Cause consumer
backlash

Advance purchase
Excrusion fares
lowest scheduled fares
Restrictions : 14 days or
28 days; minimum stay
requirement( 7 days );
high cancellation charges;
cant change the flight
timing or date of travel

Product

Place

Price

Promotion

Needs to keep in mind the

image of the country
The scenic beauty; tourist
attraction; rich cultural
heritages
Travel agents
Tour operators
Frontline staffs
Customer Loyalty
ladder
Oral, written or
electronic
communication

Indigo

Jet Airways

Air India

Spicejet

Product Budget carrier with only economy class travel

About
Started operations in 2006
By 2014
Largest airline by
Market Share (31.7%)1
Highest profits (Rs. 993
cr)2 in industry
78 Airbus- A320s , 508
daily flights , 36
destinations 3 (6-7 flights
per jet a day)
Ordered 180 Airbus
A320s for $15.6 bn to
complete till 2025 5

- More flights per destination in select high traffic routes

- On-time service (gets an aircraft ready for its next flight in
31 minutes) .Technical Dispatch reliability 99.4 % 4
- Indias greenest carrier (with Sharklet wingtip devices
resulting in 15% fuel saving 4 )
- No Frills i.e. no free in-flight food and beverages
- Only leased Airbus A320s with replacement in 6 years and
proven track record of safety
-Indigo as a brand sports as being Indias coolest airlines
with the hottest looking crew .

Price Differentiated w.r.t days before travel

less than 7 days | 7 to 30 days | 30 to 90 days

- Low cost and moderate quality of service
- High seating density and load factor with a low (7+15 kg) 7
baggage allowance which reduces weight and fuel
consumption
-Seasonal pricing and festivals
-Corporate pricing plans

Indigo

Jet Airways

Air India

Spicejet

Promotion On time is a wonderful thing

Place Indigo on Mobile

www.goindigo.com website
Travel agent websites such as
Goibibo, Makemytrip, Yatra
EMI options with HDFC, CITIBANK,
ICICI credit cards
Mobile Apps
24 x 7 Indigo Call center
Indigo Airport Counter

Sales Promotions includes Bank promotions of (say

10% discount on base fares) with partner banks like
Emirates NBD, ADCB , HDFC , SBI and Mobile
promotions (say Rs. 200 off) using booking using Indigo
Mobile App in Iphone/Android/Windows
Advertising is mostly through hoardings, print media
and word-of-mouth
Direct Marketing using personalized Emails and SMS.
Sponsorships in Fashion Shows and college festivals in
accordance to its cool brand image.
Special Fares which are very low but non-refundable
Special Concessions for family booking to encourage
travel by air during vacations

Indigo

Jet Airways

Air India

Cuisines
Virtual
library

Special
assistance

Product

Spicejet

Indigo

Jet Airways

Air India

Spicejet

secondary
hubs
47
destinations

Main hub

Place

Indigo

Jet Airways

Air India

Discount
Value for
money

Price

Spicejet

Indigo

Jet Airways

Air India

Social
Networking
Hoarders
and
banners

JPMiles

Promotion

Spicejet

Indigo

Jet Airways

Air India

Spicejet

Movie screens
in flights
Special
meals(diabetic,
jain etc)

Maharaja
lounge

Product

Indigo

Jet Airways

Air India

Spicejet

Subsidiary :
Air India
express; air
india regional
Delhi ,
Mumbaimajor hubs

Covers total
90
destinations

Place

Indigo

Jet Airways

Air India

Spicejet

Premium
pricing
Extra baggage
cost is
charged per
kg

Reward
points

Price

Indigo

Jet Airways

Air India

Spicejet

Frequent flyer
programme;
discount for
senior citizen
Air India
hockey, football
club, Air India
cricket teams

Konark chakra

Promotion

Indigo

Jet Airways

Air India

Spicejet

Spice jet (flying for everyone)

SPICE JET FLEET

PRODUCT
Trasportation service
Spice jet airline are using various Aircraft
models for transportation purposes as
shown in table .
This airlines have only economy seats
.Currently spice jet has its 57 planes in
action
In-flight refreshment
In-flight entertainment
Spice add ons
Spice connect
Corporate frequent flyer offer
Domestic travinsure

SR
NO.

AIRCRAFT

IN
SERVI
CE

ORDER
S

PASSENG
ERS
(economy
)

Boeing 737800

36

189

Boeing 737
MAX

42

BOEING 737900 ER

212

BOMBARDIE
R DASH 8 Q
400

15

15

78

TOTAL

57

57

479

Indigo

Jet Airways

Air India

Spicejet

Product continued....
SpiceMAX (a product that offers you a lot more comfort and convenience)
Enjoy best-in-class legroom, a lot more personal space to work or relax, and
with priority check-in at dedicated SpiceMax counters at major airports.
SpiceMax seats are available at an introductory starting price of Rs.500.

Spice add-ons These are host of benefits that

1.
2.
3.
4.

includes booking excess baggage up to 12 hours before departure at a

discounted rate,
a seat of your preference,
guaranteed meal of your choice from the extensive SpiceShoppe menu,
SpiceAdd-ons may be selected at the time of booking or even after booking
via Manage my Booking option at spicejet website

Indigo

Jet Airways

Air India

Spicejet

Place

Spicejet is currently operating over 350 flights

daily to 48 Indian and 10 international
destinations.
The airline flies Boeing 737-800 and 900ERs
to Tier I cities and Bombardier Dash 8 Q400s
to Tier II and Tier III cities
It has Primary Hubs at Hyderabad ,Delhi,
Chennai.
In April 2011, SpiceJet announced that they
choose
Hyderabads
Rajiv
Gandhi
International Airport as the first and primary
base for its new fleet of Bombardier Q400
NextGen aircraft.
From Hyderabad, SpiceJet launched flights to
Aurangabad, Bhubaneswar, Goa, Indore,
Madurai, Mangalore, Nagpur, Nasik, Raipur,
Rajahmundry, Tirupati, and Vijayawada with
the new fleet.

Hubs

Primary Hyderabad ,Delhi

,Chennai
Secondary Mumbai , Banglore

FOCUS CITIES
Kochi, Ahmedabad, Kolkata

From 13 August 2014, SpiceJet will

be starting commercial flights to
Kathmandu (Nepal) from Bagdogra
Airport in West Bengal (India).

Indigo

Jet Airways

Air India

Spicejet

Price
Innovative pricing has also been central to the company's success.
Spice Jet started off its services with a revolutionary pricing of Rs. 99 for the first
99 days. This was followed by air tickets priced at Rs. 500 and Rs. 999 - a pricing
strategy that continues. As a result, the airline's prices compete with first-class
Indian railway fares
It also offers everyday spicy fares, which is very cheap and you can buy your
ticket at extremely low fares
Latest pricing strategies
1. Friends and family special
2. Students discount (5% discount on base fair rate)- The scheme is valid on
bookings done online on www.spicejet.com by opting in for student discount
scheme.
3. Corporate Frequent Flyer Offer- spiceJet has introduced an offer for the corporate
frequency flyer where they are entitled to a free one-way trip for every six completed oneway journeys and 2 one-way trip for every ten completed one-way journeys. This is an offer
valid for direct and via flights for corporate bookings only.

Indigo

Jet Airways

Air India

Spicejet

Price strategies(continued)
4. SpiceJets SBI titanium card
a) 5% cash back
b) Discount voucher of Rs 500 on joining
c) 5 in flight meal vouchers
d) 5vouchers of 5kg wavier on excess baggage
5. Indian armed forces discount-25% discount on base fare for
Indian Armed forces bookings are provided
6. Excess baggage charges
within limits
a)
0 5 kg =Rs. 750 extra
b)
5 10 kg =Rs. 1500 extra

Indigo

Jet Airways

Air India

Spicejet

Promotion

1.
a)

Promotional techniques
Brand campaign
Its tagline 'flying for everyone'
The airline has also rolled out print campaigns across all leading newspapers from
May 20, one day after the formal launch of the airline Basically the idea behind the
campaign was to empower the ordinary people the power to fly
b) Entered in the market with Rs99 for 99 days followed by Rs500 and Rs999 ticket
price
Promotion through banks like SBI is providing special Spicejet SBI Titanium Cards
for spice jet users
Advertising is mostly through hoardings, print media and word-of-mouth
Direct Marketing using personalized Emails and SMS
Another strategy that came in way was booking return ticket and pay for one way
only.

Principal sponsors of Sunrisers Hyderabad

Indigo

Jet Airways

Air India

Spicejet

Promotion continued...
In July 2014, SpiceJet announced up to 50 per cent discounts after Jet
Airways announced the same scheme.
Present strategies adopted are.1. On time guarantee -SpiceJet will issue an e-Voucher ("Voucher") [On
Time Guarantee Voucher] to such passengers whose flight has either
been delayed beyond the scheduled departure time of the flight/
cancelled.
For delays:
a. Between 60 to 119 minutes: Voucher worth INR 500/b. Beyond 120 minutes: Voucher worth INR 1000/c. In case of cancellation of the flight: Voucher worth 1000/2. Friends and family

Survey Analysis
Parameter wise Preferences
4.50

Ticket Purchase Time

4.00
3.50
3.00

1 to 3 m

39%

less than 7 d

50%

Indigo

2.50

7 d to 1 m
11%

Spicejet

2.00

Air India

1.50

Jet Airways

1.00

Go Air

0.50
0.00
Freebies

Safety

Overall Consumer Preference

Value for
money

Hospitality

Time of boarding

POS Ticket
5%

1% 3%

20%

On Time
Performance

Airline Website

Go Air
16%

Indigo

27%

Jet Airways

Travel Websites
/ Apps (like
makemytrip)

Spicejet

Airline Stores

Air India

11%
46%
18%

69%

Travel Agent

Morning

32%

53%

Evening
Afternoon

Bibliography
Marketing management by Philip Kotler, Kevin Lane, Abrahan koshy,
Mithileshwar Jha; Word of mouth,
Chapter 18, Pg- 489, 490;
Chapter-16 Designing and managing integrated marketing
communications, Pg- 429
Marketing management by Philip Kotler, Kevin Lane, Abrahan koshy,
Mithileshwar Jha; Role of research Chapter-1,Understanding
marketing management, Pg-50
Marketing management by Philip Kotler, Kevin Lane, Abrahan koshy,
Mithileshwar Jha;
Target markets, positioning and
segmentation,Chapter-1,Understanding marketing management,
Pg- 11
Marketing management by Philip Kotler, Kevin Lane, Abrahan koshy,
Mithileshwar Jha; Chapter- 14, Designing and managing integrated
marketing channels

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http://en.wikipedia.org/wiki/IndiGo
http://www.thehindu.com/business/Industry/indigo-fy13-profitrises-to-rs-993-crore/article5163806.ece
https://content.goindigo.in/Information/Press
http://strategicmoves.wordpress.com/2013/10/31/indigo-airlinecracking-the-profitability-code/
http://articles.economictimes.indiatimes.com/2011-0113/news/28428535_1_airbus-aircraft-rahul-bhatia-airbus-a320s
http://www.cleartrip.com/graphs/
http://www.yatra.com/baggage-allowance.html
https://book.goindigo.in/
travel.cnn.com/mumbai/life/brand-story-behind-indigo-044435