Professional Documents
Culture Documents
MPE -2009-11 - DIV B
Group A
SQUARE
1
Airline Industry
Started in1912
In 1932, JRD Tata founded Tata Airline, the first Indian airline
At the time of independence, nine air transport companies were
carrying both air cargo and passengers
Fastest growing aviation industries in the world – 9th largest
aviation market in the world
Private airlines account for around 75% share of the domestic
aviation market
CAGR at 18 per cent, 454 airports and airstrips in place in India,
of which 16 are designated as international airports
2
Passenger growth
3
Changing dynamics over the years
4
Indian domestic air traffic still growing at
more than 10%
6
Industry Challenges
7
Target Markets
8
Service Positioning of various airlines
Competitive Pressure
9 Price
7Ps of Services Mix
10
Flower of Services
11
Product Analysis
12
Product as a Service
13
Price Mix
Airline Costs
14
PLACE MIX
16
PEOPLE MIX
Competence
Reliability
Caring Attitude
Responsiveness
Initiative
Problem Solving
Ability
Goodwill
18
PROCESS MIX
Reservation
Flight Information
Facilities at The Airport
Baggage Handling
Meal Service
Flight Entertainment
Deliver Quality Service
19
PHYSICAL EVIDENCE
20
Service Quality
21
Source : http://www.foolonahill.com/mbaaviation.html
Some common passenger experiences
Timely check in
Timely departure
Timely arrival
Value for money
Safety
22
Service Quality
23
Service – Quality Model
Personal needs
Word-of-mouth
Past experience
communications
Expected service
GAP
5
Perceived service
CONSUMER
MARKETER
GAP
Service delivery External
4
(including pre-and communications
post-contacts ) to consumers
GAP GAP
1 3
Translation of
perceptions into
service-quality
specifications
GAP
2
Management
perceptions of
consumer
expectations
Customer Service Delivery
Passenger
(pax)
Line of
Interaction
Front Line
Line of
Internal
Interaction
Support
25
Research Findings
( Dr. M.N. Khan & V.R. Dutt of FMS And Dr. S .C. Bansal of IIM-L)
26
Research Findings
( Dr. M.N. Khan & V.R. Dutt of FMS And Dr. S .C. Bansal of IIM-L)
27
Competitive Dynamics
28
Strategies for Future Sustenance
29
In conclusion …
ØThe Airlines industry is cyclical in nature due to uncertainties which are beyond
its control
Ø
ØBrands have to be built in such a manner that they survive the lean periods on
their strength of being able to differentiate themselves with others
Ø
ØPricing is the most sensitive issue in airline industry and is done depending on
the demand of the market
ØSwitching is more frequent in case of low fare airlines whereas business
segments are more brands loyal
31 Source: http://www.markpack.org.uk/united-airlines-dave-carroll-youtube/