Services at IndiGo Airlines

Presented By: -Sudip Dutta

PGDM 2010 -2012Marketing MajorGlobsyn Business School, Kolkata

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, JetLite bagged 26.5 per cent, pursued by Kingfisher 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 traveller soaring in June this year increased to 4.57 million from 3.76 million in the identical month last year.

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

Founded by Rahul Bhatia and Rakesh Gangwali. InterGlobe established IndiGo the following year, modelled on US low cost carrier JetBlue and bolstered with an investment from president & CEO Bruce Ashby (a former US Airways EVP).

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 5 years. 

January 19, 2011– India's largest low fare airline, IndiGo, has been granted international traffic rights, by the Government of India, to operate services from several cities in India to Singapore, Bangkok, Dubai and Muscat  during the forthcoming summer schedule

India, August 12, 2010–After bagging the prestigious Skytrax World Airline Award for being the best low cost airline of India & Central Asia at the World Airline Awards.

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Airline wise- Market Share

Chair Factor

IndiGo Airlines described the highest chair factor of 90.7 per cent, pursued by flavour Jet Airways 88.5 per cent,

Paramount Airways 86.8 per cent, Kingfisher Airlines 85.1 per cent, Go Air 84.0 per cent, JetLite 83.6 per cent, Jet Airways 80.5 per cent Air India household 72.3 per cent, in that order. The general on-time presentation (OTP) of scheduled domestic airlines in

June 2010 has been 78.5 per cent. IndiGo has a simple philosophy: offer fares that are always low, flights

that are on time, and a courteous, hassle-free travel experience. IndiGo’s On Time Performance is one of the best in India. IndiGo’s Technical Dispatch Reliability is 99.91% making it the airline with the least number of cancellations in India.

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

RAINBOW OF 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

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

Advertising• Airlines 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.

Publicity• The PRO, receptionist, travel agents, media people are very important people in publicizing the business.

Sales Promotion• The travel agents, tour operators, frontline staffs contribute a lot to the promotion of airlines business.

Word of Mouth• ‘Customer Loyalty Ladder’.

PROMOTION MIX

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

PHYSICAL EVIDENCE

In-flight: On the ground:•Aircraft.•Seating Configuration.•Good Inner-exteriors.•Cleanliness.•Uniforms.•Ambience.•Baggage.•Labels or Tag.

• Booking offices or ticket counters.

• Paperwork.• Brand Logo.• Tickets.

PROCESS FLOW DIAGRAM OF SERVICES DELIVERY

The services delivery process flow diagram (PFD) is as hyperlinked.

Positioning Strategies

Price & Product Attributes – Economy oriented Customer Service Processes – On time every time Strong & Organized Service Distribution & Delivery

Systems Healthy & Luxurious Service Environment Competent Service Personnel

Tag line - ”On Time Every Time”

Application of Focus Strategy Analysis

BREADTH OF SERVICE OFFERINGS

Narrow Wide

ServiceFocused

Unfocused(Everything for everyone)

Fully Focused(Service and market focused)

Market Focused

Many

Few

NUMBER OF MARKETS SERVED

IndiGo Airlines concentrates on a particular type of market which is economy-driven and only serves that market. Thus it adopts FULLY FOCUSED Strategy.

Evaluation of Competition 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 3rd 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, JetLite bagged 26.5 per cent, pursued by Kingfisher 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 traveller soaring in June 2011 increased to 4.57 million from 3.76 million in the identical month last year.