Aviation Industry Analysis

Brand Studied: Indigo Airlines

Team

• Joylyn Fernandes (A012)

• Shrinivas Gajengi (A013)

• Adrian Lopez (A027)

• Krittika Nadar (A034)

• Bosky Thakkar (A050)

About IndiGo Airlines

• IndiGo is an Indian budget airline company headquartered at Gurgaon, India.

• It is the fastest growing and also the largest airline in India with a market share of 30.70% as of July 2014.

• It presently operates a fleet of 84 aircraft belonging to Airbus A320 family.

Vision & Mission Statement

Goals & Objectives

• One type of airplane -brand-new Airbus A320s

• One type of fare - low

• One type of customer service - professional

• One way to deal with delays and cancellations -honestly

Customer Satisfaction in terms of service & Product

High Quality Standards

FinancialCost Cutting & effective costing of products

Increase Market Share

Non-Financial

SWOT Analysis

Strength-High brand awareness & brand equity-Successful implementation of low cost strategy-Continuous innovation to improve on non price factors

Weakness

Product differentiation is less

Competitors can easily replicate offerings

Opportunity

Middle Class taking to the skies

Opening up of International Skies.

Threats

Plenty of new LCCs to compete with.

Rising Labour costs.

Rising Fuel Costs.

Segmentation, Targeting, Positioning & Differentiation

Segmentation

• SEC AB

• Middle to Higher Income Group

Targeting

• People who travel by trains & wish to save time

• Other airline customers

• People who travel for official reasons

Positioning

• Best in low pricing with no compromise on quality service

• Indigo will continue to provide services at the lowest costs

Differentiation

• Not much product differentiation

• It provides time saving services like web-check in, kiosks

• Mobile booking App

Michael Porter’s 5

Forces Model

Rivalry Among existing Firms [HIGH]

•Other LCC offer similar services at similar prices

•Hence brand loyalty tends to be low

Determinants of Buyer Power[MEDIUM]

•Buyers are plenty as the economy is growing

•Customers look for deals & discounts as there are many

carriers to chose from

Threat of New Entrants [LOW]

•New Entry is cost intensive•Existing Players are well established•Inadequate Airport Infrastructure

Determinants of Supplier Power[HIGH]

•Duopoly of two major suppliers of aircrafts i.e. Airbus and Boeing.•Shortage of commercial aircraft

pilots

Threat of Substitutes[LOW]

•Railways are the nearest substitute but airlines save time

•Travelling by flight is a status symbol

4Ps : Product, Place, Price, Promotion• Low Cost Carrier

• Operates Domestic flights & a few to international destinations

• Cargo Service offered as wellProduct

• Tickets can be booked online with a number of portals

• Flies to 37 Destinations & is constantly trying to add new destinationsPlace

• Maintains costs & passes on the benefits to the customers with low pricing

• Constantly trying to compete with other LCCsPrice

• Very actively promotes brand through TVC/Print/Outdoor/Digital

• Offers discount coupons to passengers onboard all its flights to encourage repeat purchases

Promotion

Recommendations for IndigoWhat they are doing

• Keeping costs optimal thus fare prices low

• Advertising is helping in keeping brand top of the mind

• Have a connecting flight between destinations

• About to issue an IPO

• Associate with car rentals/hotels

What they should continue to do

• Issue the IPO to add more planes to their fleet

• Continue with low & competitive pricing

• Offer coupons to customers on board to get repeat purchases

• Increase international destinations

What we recommend

• Activate their loyalty program – Indigo Star Card

• Increase advertising in tier 2 cities where the spends would be less & people do have the income

• Associate with IRCTC to offer special discounts to people who travel to major airports & then have to take the train to reach smaller towns

Thank You