Service Marketing- Three Stage Approach

Service Marketing Plan

Stage 1Tangibility & intangibility

Select the company

Industry profile in India

Major competitors

Process service activityflow chart(gaps)

Consumer behaviour(pre purchase, purchase

& post purchase)

Stage 2Service Mix: 7

Ps

7 Ps of service mix

ProductPrice

Place Promotion

People(staff & customers)

Process

Physical evidence

Stage 3Recommendatio

ns

Recommendations for Service Gap on 7 Ps

Front stage & back stage service gaps

Prepare activity flow chart & consumer

survey

Services MarketingTopic :- Indigo Airlines,Stage 1 :- Tangibility & intangibility.Stage 2 :- Service mix 7 p’s.Stage 3 :- Recommendations.

By:- Karan Bhagat Rachit Shiv Akshay Dhamankar Aneesh Sheety

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, Jet-JetLite bagged 26.5 per cent, pursued by Indigo 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 travellersoaring in June this year increased to 4.57 million from 3.76 million in the identical month last year.

Founded 2005Commenced operations AUGUST 2006Company slogan ON TIME, EVERY TIMEKEY PLAYER MR. RAHUL BHATIA , CHAIRMAN

MR.ADITYA GHOSH,MD

Website www.goindigo.inMARKET SHARE 27%

INDIGO AIRLINES

Executive SummaryIndia’s best performing Low Cost Airline in

terms of profitEstablished in 2005 as a subsidary of

Interglobe InterprisesA fleet of 30 aircrafts making 170 flights

daily, across 22 destinations in IndiaPlans to acquire 125 new aircrafts by 2025Plans to serve 100 cities in India, South East

Asia, Middle East and China by 2025

The IndiGo Dream…

Why IndiGo ?Emergence of the Great Indian middle class

willing to spend money for swifter travelFor the Individual on the Go,who values time

and on- timlinessBudget travel is not cheap travel, Quality of

ServiceMission Statement :To be the best Airline in India by providing the following values to the customer:

- Affordable Fairs- Ontime performance- Hasslefree Service

• Indigo Airlines commenced operations on the 04th of August 2006 with their inaugural flight from Delhi to Imphal

• 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 five years.

• January 19, 2011– India's largest low fare airline.

.

AWARDS AND ACHIEVEMENTS

Best Domestic Low Cost Service by TAAI (2010)

Safety Excellence Award by BIAL (2010)

Skytrax Central Asia's best low-cost airline award (2011)

Safety Excellence Award by Rajiv Gandhi International Airport(2009)

Airline wise- Market Share

Tag line-”On time every time”

PRODUCT

•Design.

•Quality.

•Range.

•Brand Name.

•Features.

PLACE

•Distribution Channels.

•Methods of Distribution.

•Coverage.

•Location.

PRICE

•List Price.

•Discounts.

•Commissions.

•Surcharges.

•Extras.

PROMOTION

•Advertising.

•Sales Promotion.

•Salesmanship.

•Publicity.

4P’s OF MARKETING MIX

PRODUCT

PRICE PLACE PROMOTION

PEOPLE

PROCESS

PHYSICAL

EVIDENCE

SERVICE MARKETING 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.

PRODUCT MIX

Product

Core• Transportation

Supplementary• Check in• Food on board• Connecting flight• Complementary gifts• In-flight entertainment• Frequent flier

programs

Augmented• Online booking• Variety of meal

options• Pick up and drop

service• Mobile ticketing

On the Ground Service(1/2)..

In flight Service (2/2)

PRICE MIX

Premium

Pricing

Value For Money Pricing

Cheap Value

Pricing

APEX Fares

Low-Cost

Pricing

• Online 24-hour reservation Systems.

• Consolidation.

• Tour Operator/ Travel Agent.

• Affiliated with companies.

PLACE MIX

Promotion Mix

Word of Mouth

‘Customer Loyalty Ladder’ .

Sales PromotionThe Travel Agents, Tour Operators, Frontline Staffs Contribute a Lot to The Promotion of

Airlines Business.

PublicityThe PRO, Receptionist, Travel Agents, Media People Are Very Important People in Publicizing

The Business.

AdvertisingAirlines 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.

Promotion: advertisements &

publicity

Sales Promotion

Travel Agencies Front line staff

Promotional Strategy

Communication Objectives-Indigo will be promoting the below three things majorly as part of its advertising programme-On-time performance , Affordable fares and Hassle free passenger experience.

Advertisement StrategyHoardings at airports with focus on Best on time

performanceAdvertisement through social networking medium-

Facebook,Twitter,YouTube etcCollaboration with Multiplexes in major cities to

promote the airline and its special offersAdvertisement hoardings in multi-storeyed buildings

and officesAdvertisements in magazines targetting Urban

population

Advertisement Strategy contd..Sponsering fashion shows, talent hunts, New Year parties

etcCollaboration with consumer banks, credit card

companies, hotels, ticketing websites to promote special offers, discounts and cash back

Giving IndiGo promotion a local flavour by promoting in regional languages in respective sectors

Sending special offer details to frequent fliers by sms, email etc

Targeting foreigners in Tourist circuits

Advertisement through Social Media

• Competence.

• Reliability.

• caring Attitude.

• Responsiveness.

• Initiative.

• Problem Solving Ability.

• Goodwill.

PEOPLE MIX

• Reservation.

• Flight Information.

• Facilities at The Airport.

• Baggage Handling.

• Meal Service.

• Flight Entertainment.

• Deliver Quality Service.

PROCESS MIX

Cancellations,Complaints(2/2)

• On the ground:

• Booking offices or ticket counters.

• Paperwork.

• Brand Logo.

• Tickets.

PHYSICAL EVIDENCE

In-flight:

•Aircraft.•Seating Configuration.

•Good Inner-exteriors.

•Cleanliness.

•Uniforms.

•Ambience.

•Baggage.

•Labels or Tag.

The IndiGo AdvantageMultiple Short haul point to point flightsUsing only one type of aircraft to minimize Maintenance

overheadsLean Operating Strategy to maximize efficiency Minimum turn around time, keeping Aircraft in air for

most of the timeEmployee welfare and resultant loyaltyMaking Low budget flying a pleasant experience

MARKET SHARE

MARKET SHARE IN 2011 MARKET SHARE IN 2012

Consumer behaviour

• Making a Reservation. • Components of the Amount Paid to IndiGo for

Travel: Basic Fare, Surcharges and Fees.• Changes/ Cancellations/ Refunds.• Special Rules and Charges for Certain

Customers, Pets and Baggage.• Checking and Cabin Baggage.• Onboard the Aircraft

Blue Print of Indigo AIRLINES

Service Gaps flow chart

Gaps in the present service design:GAP 1

• Lack of upward communication: • The employees of Indigo airlines are don’t do

upward communication with their senior manager due to which manager can not able to understand what happening in the organisation.

• The employees of “Indigo Airlines” are not able to implement the service of serve food to customers properly due to customers are not happy by the service of “Indigo Airlines”

GAP 2

• Absence of customer driven standard:• In the ‘economy class’ there is problem that

Indigo airlines can not able to provide customers driven standard and quality of service to the customers.

• In Indigo airlines the airhostess takes lot of time to deliver the order of customers.

GAP 3

• Failure to match supply and demand:• Customers are not taking the responsibility

that to keep clean the environment of airlines and flight, due to which lot of cost incurred in the cleaning the flight and surrounding of airlines.

GAP- 4

• Lack of integrated marketing communication:• The advertising and promotional activities of

the Indigo airlines is very low due to which there is the problem that customers are not aware about scheme and discount on flights.

• Inadequate horizontal communication:

Service Gap Recommendations• GAP-1• Improvement in upward communication• First of all the employees of the organisation have to encourage to do the communication with the group member and with the

manager even also manager have to appreciate the communication of the employees and have to give feedback to the person who are doing communication with managers by that procedure we can able to do improvement in the upward communication of Indigo Airlines

• Service recovery:• The Indigo airlines have to give training to the employees to the various parameters such as• 1. How to serve food to the customers• 2. How to deal with the customers • 3. How to meet the expectation of customers• Gap-2• Customer driven standard: • The Indigo airlines have to give training to the employees that to how to behave ethically with the customers by the help of

training programme and there implementation we can able to meet the customer driven standard• GAP-3• Demand and supply:• To meet the demand of the customers and to keep the smooth supply of goods in the flight the ‘supply chain management’

should maintain properly and to meet the demand of customers.• GAP - 4• Integrated marketing communication:• Indigo airlines should implement the ‘intranet’ facility to set the horizontal communication within the organisation due to which

all problem of horizontal communication will be removed.

Final Recommendation

• we recommend that IndiGo must increase its domestic operations by starting flights connecting to new destinations.

• So using the cost leadership strategy, IndiGo can gain competitive advantage over its competitors as the first mover.

• Once the above strategy is successful and results in promising revenue growth, IndiGo canuse extension to freight and chartered services as the next objective for further expansion

• Extension• Currently, IndiGo is concentrating only in domestic

passenger flights. • However, the freight/cargo market and charted

plane service are the areas that can prove to be good potential market for IndiGo.

• Besides, chartered flight services are an untapped market for IndiGo.

• Thus, IndiGo has a huge opportunity to expand in both these arenas.

Thank you