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Ô India is the 9th largest aviation market in the world.

Ô Passenger traffic is estimated to grow at a CAGR of over 15% in the coming few
years.

Ô The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestic
traffic will go up by 25% to 30% till 2010 along with a surge in the international
traffic by 15%.

Ô According to UK based research firm Eyefortravel, Indian travellers are

expected to spend more than US$40 bn in2010 rising to US $50 bn by 2012.

Ô There would be more than 100 million passengers by 2010. Then again by
2020, Indian airports will in all probability handle over 280 million passengers
every year.
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Ô The investment plans to the tune of US$ 9 billion has been made by the
Aviation Ministry for modernizing the existing airports by 2010.

Ô US$ 30 billion investment is envisaged till 2020 for developing the airport
infrastructure.

Ô More opportunities in the aviation industry in India are likely to make way for
about 69 foreign airlines from 49 countries.

Ô At present, private airlines account for around 75% portion of the domestic
aviation market.

Ô The two private FSA (Full Service Airlines) Kingfisher Airlines and Jet Airways
accounts for 53% Market share.
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Ô Intense price competition among the players

Ô Competitive threat from low-cost carriers

Ô Falling trend of Premium (Business class/1st class) traffic

Ô Diminishing µProduct differentiation¶

Ô High aviation turbine fuel (ATF) prices

Ô Rising labor costs and shortage of skilled labor

Ô Infrastructure constraint
 





·Market Share
mbjective ·Full Service Carrier

Core Strategy
·Business & Leisure travelers ·Kingfisher Airlines
·Pan India ·Jet Airways

Customer Targets Competitor Targets

4P
The Marketing Mix
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Ô The internet has expanded the awareness and choice sets for the
average consumer.

Ô Study reveals that most consumers rank choices based mainly on price,
schedule and no. of stops.

Ô For most differentiating items, the majority of surveyed travelers can

not distinguish between the network carriers and low cost careers.
Business travelers, however, will pay a premium but the premium is
extremely small.

Ô With choices a plenty and differentiation difficult, most travelers

purchase solely on price.
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Ô 
(The mffering)
× ©

 
 
 å

m Y

å
  

   


Here we promise something more than µIn flight¶

experience which includes µground service¶ as well.

a ©

 


  Better À
   in terms of convenient
Check-in and safer Baggage handling.

  Adding à 


  Introducing à
’
class.

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Ô 

† Price should not be higher than µKingfisher¶ or µIndian¶ as the market is

µprice sensitive¶.

† However introduction of à  


class is expected to generate
better revenue. Many passengers cannot afford First or Business class, but
they¶d still prefer extra leg room at a little extra cost.

† Cost control is important to sustain a favorable µB-C framework¶. This can

be achieved by
´ Modifying the µHub & Spoke¶ system and design the route structure to
increase the Average length of flights (to lower Cost per ASM)*
´ Using bigger planes (low Cost per ASM)
´ Uniform fleet (efficient maintenance)
´ Improving operating efficiency by Cross-utilization of labor and better
work environment.

[*ë
 à 

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Ô 


As a FSA, µAgency Network¶ is still relevant to retain the corporate clients,

however, general travelers can be encouraged to do µdirect booking¶ with
little incentive in terms of facilities; a la µSouth East¶ way.

Ô 
  Extensive ATL campaign to build the 
 and hammer the USP
  In-flight Merchandising to build relation
  Aggressive digital marketing using the Internet & Social Media. E.g.
· Creating a Twitter profile of mriental airlines with a 95% personal and 5%
sales attitude where communication is more like and a person instead of a
company. The objective is to create a follower base.
· Creating a Facebook Fan Page instead of a profile to have a more direct viral
marketing. This is a platform to add brand value.
· Start a µ    
චto initiate å  


.
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