PERCEPTUAL MAPPINGPERCEPTUAL MAPPING

PRESENTED BY :- PRESENTED BY :- SAMARDEEP SAMARDEEP

SANJEEVSANJEEV

PGDM IIPGDM II

Airline Industry

Airline Industry in Airline Industry in IndiaIndia

454 airports and airstrips454 airports and airstrips

(includes Operational, Non Operational, Abandoned and Disused (includes Operational, Non Operational, Abandoned and Disused Airports)Airports)

127 are owned & operated by AAI127 are owned & operated by AAI

16 - international, 7 custom airports, 28 civil enclaves16 - international, 7 custom airports, 28 civil enclaves

Scheduled domestic air services - available from 82 airportsScheduled domestic air services - available from 82 airports

May 2007- May 2008May 2007- May 2008

25.5 million domestic & 22.4 million international passengers25.5 million domestic & 22.4 million international passengers

20% growth – highest in the world20% growth – highest in the world

Growth Rate Projections (for next 5 yrs)Growth Rate Projections (for next 5 yrs)

15% p.a (Passenger Traffic)15% p.a (Passenger Traffic)

11.4% p.a (Cargo Traffic11.4% p.a (Cargo Traffic))

HistoryHistory• 1911 first commercial flight airmails from allahabad to nani (10 km)1911 first commercial flight airmails from allahabad to nani (10 km)

• 1932 the aviation department of tata sons ltd . Established 1932 the aviation department of tata sons ltd . Established

• 1938 tata airlines (successor to aviation division of tata son )1938 tata airlines (successor to aviation division of tata son )

• 1946 Tata Air Lines converted into a public Company and1946 Tata Air Lines converted into a public Company and

renamed Air India Limitedrenamed Air India Limited

• 1948 1948 Air India International incorporatedAir India International incorporated• 1953 Nationalization of Aircraft Industry1953 Nationalization of Aircraft Industry

Air India (serving the international sectors)Air India (serving the international sectors)

Indian Airlines (serving domestic sectors)Indian Airlines (serving domestic sectors)

Deccan Airways, Airways India, Bharat Airways,Deccan Airways, Airways India, Bharat Airways,

Himalayan Aviation, Kalinga Airlines, Indian NationalHimalayan Aviation, Kalinga Airlines, Indian National

Airways and Air Services of IndiaAirways and Air Services of India

HistoryHistory1986 1986 Private Sector Players permitted as Air taxi operatorsPrivate Sector Players permitted as Air taxi operators

Players including Jet, Air Sahara, NEPC, East West,Players including Jet, Air Sahara, NEPC, East West,

Modiluft, etc started serviceModiluft, etc started service

19901990 Open sky policy Open sky policy

19941994 Private Carriers permitted to operate scheduled servicesPrivate Carriers permitted to operate scheduled services

20032003 Entry of low-cost carriersEntry of low-cost carriers

2007 Merger of Indian Airlines into Air India2007 Merger of Indian Airlines into Air India

Acquisition of Air Sahara by Jet AirwaysAcquisition of Air Sahara by Jet Airways

2008 2008 Kingfisher acquired 49% stake in Deccan AviationKingfisher acquired 49% stake in Deccan Aviation

Regulatory Regulatory AuthoritiesAuthorities• Ministry of Civil AviationMinistry of Civil Aviation

Responsible for the formulation of policy, development and regulation Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, of Civil Aviation. Its functions also extend to overseeing airport facilities, air traffic services and carriage of passengers and goods by airair traffic services and carriage of passengers and goods by air

• Other Attached/Autonomous OrganizationsOther Attached/Autonomous Organizations::

Directorate General of Civil Aviation (DGCA)Directorate General of Civil Aviation (DGCA)

Promote safe and efficient Air Transportation through regulation and Promote safe and efficient Air Transportation through regulation and proactive proactive safety oversight systemsafety oversight system

• Bureau of Civil Aviation Security (BCAS)Bureau of Civil Aviation Security (BCAS)

Regulatory authority for civil aviation security in IndiaRegulatory authority for civil aviation security in India

• Airport Authority of India (AAI)Airport Authority of India (AAI)

Accelerate the integrated development, expansion and modernization Accelerate the integrated development, expansion and modernization of the operational, terminal and cargo facilities at the airports of the operational, terminal and cargo facilities at the airports

Competitive Pressure

Ser

vice

Price

Low cost Carriers changing the game

Indigo

Jet Airways 35%

Indian Airlines24%

Air Deccan 15%

Jet Lite10%

Kingf isher8%

Spice Jet6%

Others2%

Airlines Market Share

Jet Airwyas

Indian Airlines

Air Deccan

Air Sahara

Kingfisher

Spice Jet

Others

MARKET SHAREMARKET SHARE

The Kingfisher The Kingfisher AIRLINESAIRLINESThe king of good timesThe king of good times

Kingfisher airlinesKingfisher airlines• Dr Vijay Mallya is the Chairman and CEO of Kingfisher Dr Vijay Mallya is the Chairman and CEO of Kingfisher

AirlinesAirlines

• Kingfisher Airlines Limited launched scheduled airline Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights between services on May 9, 2005 with 4 daily flights between BOM & BLR and one A-320 aircraft.BOM & BLR and one A-320 aircraft.

• There are tools for mood lighting such as web chat, inseat There are tools for mood lighting such as web chat, inseat plugins for music, liveTV with 16 channels on each seatplugins for music, liveTV with 16 channels on each seat

• 100 percent E ticket airline100 percent E ticket airline

VISIONVISION

• The Kingfisher Airlines family will The Kingfisher Airlines family will consistently deliver a safe, value-consistently deliver a safe, value-based and enjoyable travel based and enjoyable travel experience to all our guests experience to all our guests

  

STPSTP

SWOT AnalysisSWOT Analysis

Jet AirwaysJet AirwaysFounded in 1993, Chairman - Mr.Naresh GoyalFounded in 1993, Chairman - Mr.Naresh Goyal

HQ in MumbaiHQ in Mumbai

Country’s second largest international airlineCountry’s second largest international airline

Largest domestic airline - 31%Largest domestic airline - 31%

Primary base - Mumbai's Chaatrapathi ShivajiAirportPrimary base - Mumbai's Chaatrapathi ShivajiAirport

Secondary hubs - Bangalore, Brussels, Chennai, Delhi,Secondary hubs - Bangalore, Brussels, Chennai, Delhi,

Hyderabad, Kolkata and Pune.Hyderabad, Kolkata and Pune.

April,2007 - Acquired Air Sahara - JetLiteApril,2007 - Acquired Air Sahara - JetLite

Now JetLite integrated into Jet AirwaysNow JetLite integrated into Jet Airways

Mission StatementMission Statement

Jet Airways will be the most preferred domestic airline in India. It Jet Airways will be the most preferred domestic airline in India. It will be the automatic first choice carrier for the travelling public and will be the automatic first choice carrier for the travelling public and set standards, which other competing airlines will seek to match.set standards, which other competing airlines will seek to match.

Jet Airways will achieve this pre-eminent position by offering a high Jet Airways will achieve this pre-eminent position by offering a high quality of service and reliable, comfortable and efficient operations. quality of service and reliable, comfortable and efficient operations. 

Jet Airways will be an airline which is going to upgrade the concept Jet Airways will be an airline which is going to upgrade the concept of domestic airline travel - be a world class domestic airline. of domestic airline travel - be a world class domestic airline. 

Jet Airways will achieve these objectives whilst simultaneously Jet Airways will achieve these objectives whilst simultaneously ensuring consistent profitability, achieving healthy, long-term returns ensuring consistent profitability, achieving healthy, long-term returns for the investors and providing its employees with an environment for the investors and providing its employees with an environment for excellence and growthfor excellence and growth

STPSTPPrimary Segments (Geographic) - Domestic & InternationalPrimary Segments (Geographic) - Domestic & International

Customer SegmentsCustomer Segments

First class, Premiere(Business) class & Economy classFirst class, Premiere(Business) class & Economy class

Target SegmentsTarget Segments

Premiere(Business) classPremiere(Business) class

Business travelers, contribute 48% of passengers & 66% of revenues,Business travelers, contribute 48% of passengers & 66% of revenues,

ready to pay higher prices, last time booking, don’t like transitready to pay higher prices, last time booking, don’t like transit

Economy classEconomy class

Leisure travelers, prefer low cost airlines, ready for transit if there is costLeisure travelers, prefer low cost airlines, ready for transit if there is cost

advantage, large % of passengersadvantage, large % of passengers

Seat Allocation – Yield Management TechniqueSeat Allocation – Yield Management Technique

Positioning – High value for High pricePositioning – High value for High price

Unique Selling Price – Customer relationship and PunctualityUnique Selling Price – Customer relationship and Punctuality

SWOT AnalysisSWOT AnalysisStrengthsStrengths

Market driverMarket driver

Experience exceeding 14 yearExperience exceeding 14 year

Only private airline with international operationOnly private airline with international operation

Market leaderMarket leader

Largest fleet sizeLargest fleet size

  

WeaknessesWeaknesses

Loosing domestic market shareLoosing domestic market share

Old fleet with average age around 4.79 yearsOld fleet with average age around 4.79 years

Scope for improvement Scope for improvement in in in-flight service in-flight service

Weak brand promotionWeak brand promotion

OpportunitiesOpportunities

    Untapped air cargo marketUntapped air cargo market

Scope in international service and tourismScope in international service and tourism

  

ThreatsThreats

Strong competitorsStrong competitors

Fuel price hikeFuel price hike

Overseas market competitionOverseas market competition

PERCEPTUAL PERCEPTUAL MAPPING : MAPPING :

• DEFINITION Perceptual mapping is a DEFINITION Perceptual mapping is a

graphics technique used by asset graphics technique used by asset marketers that attempts to visually display marketers that attempts to visually display the perceptions of customers or potential the perceptions of customers or potential customers. Typically the position of a customers. Typically the position of a product, product line, brand, or company product, product line, brand, or company is displayed relative to their competition. is displayed relative to their competition.

•   

Perceptual Mapping- Perceptual Mapping- The technique of The technique of perceptual mapping helps the markets to determine perceptual mapping helps the markets to determine just how their products or services appear to just how their products or services appear to consumers in relation to competitive brands on one consumers in relation to competitive brands on one or more relevant characteristics.or more relevant characteristics.

It enables them to see gaps in the It enables them to see gaps in the positioning of all brands in the product or service positioning of all brands in the product or service class and to identify areas in which consumer class and to identify areas in which consumer needs are not adequately met.needs are not adequately met.

For example , if a JET AIR WAYS wants to For example , if a JET AIR WAYS wants to introduce a new service, he may use perceptual introduce a new service, he may use perceptual mapping to uncover a niche of consumers with a mapping to uncover a niche of consumers with a special set of interests that are not being special set of interests that are not being adequately or equally addressed by other adequately or equally addressed by other competitors targeted to the same segments . This competitors targeted to the same segments . This insights allow him to position the new service as insights allow him to position the new service as specifically focused on these interestspecifically focused on these interest

jitendra kumar dixitjitendra kumar dixit 22

PLOTTING OF PERCEPTUAL MAP When PLOTTING OF PERCEPTUAL MAP When plotting a perceptual map two dimensions plotting a perceptual map two dimensions are commonly used. Any more is a challenge are commonly used. Any more is a challenge to draw and confusing to interpret Below is a to draw and confusing to interpret Below is a very basic perceptual map very basic perceptual map

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NO.OF AEROPLANE

FARE

Current fleetCurrent fleet

As of December 2010, the Jet Airways fleet consists of the following As of December 2010, the Jet Airways fleet consists of the following aircraft with an average age of 5.4 years:aircraft with an average age of 5.4 years:

Jet Airways FleetJet Airways Fleet Aircraft In service Orders PassengersAircraft In service Orders Passengers

(First/Première/Economy) Notes (First/Première/Economy) Notes Airbus A330-200 12 5 226 (0/30/190) 12 5 226 (0/30/190)254 (0/18/236)254 (0/18/236)

10 owned10 owned2 dry leased from 2 dry leased from ILFC Airbus A330-300 – 5 TBA All leased from – 5 TBA All leased from

Intrepid Aviation GroupIntrepid Aviation GroupDeliveries starting 2011Deliveries starting 2011[22] ATR 72-500 18 2 62 (0/0/62) All are dry 18 2 62 (0/0/62) All are dry

leased Boeing 737-700 11 – 118(0/16/102) 6 ownedleased Boeing 737-700 11 – 118(0/16/102) 6 owned5 dry leased Boeing 737-800 42 9 154 (0/16/138)5 dry leased Boeing 737-800 42 9 154 (0/16/138)

144 (0/8/162)144 (0/8/162)18 owned18 owned

24 dry leased Boeing 737-900 2 – 166 (0/28/138) Both owned Boeing 24 dry leased Boeing 737-900 2 – 166 (0/28/138) Both owned Boeing 777-300ER 10 2 312 (8/30/274) 4 dry leased to Turkish Airlines777-300ER 10 2 312 (8/30/274) 4 dry leased to Turkish Airlines

3 dry leased to Thai Airways International Boeing 787-8 – 10 TBA 3 dry leased to Thai Airways International Boeing 787-8 – 10 TBA Deliveries starting 2014Deliveries starting 2014[23][23] TotalTotal 9595 3333

Air India FleetAir India Fleet[[Aircraft In service Orders PassengersAircraft In service Orders Passengers(First/Business/Economy) Airbus A310-300 4 – 201 (First/Business/Economy) Airbus A310-300 4 – 201 (0/20/181) Airbus A330-200 2 – 279 (0/24/255) (0/20/181) Airbus A330-200 2 – 279 (0/24/255) Boeing 747-400 5 – 423 (12/26/385) Boeing 777-Boeing 747-400 5 – 423 (12/26/385) Boeing 777-200LR 8 – 238 (8/35/195) Boeing 777-300ER 12 3 342 200LR 8 – 238 (8/35/195) Boeing 777-300ER 12 3 342 (4/35/303) Boeing 787-8 – 27 ??? (0/??/???) (4/35/303) Boeing 787-8 – 27 ??? (0/??/???) TotalTotal 3131 3030 [edit] Fleet info[edit] Fleet info

THANK YOU