Marketing Planning, Aviation Industry

8/4/2019 Marketing Planning, Aviation Industry

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Marketing Strategies of IndianAviation Companies

Special Reference: IndiGo Airlines

Group 3

11P131 Ashwini Kumar Pathak

11P132 B Goutam Kumar

11P133 Deepak Bansal11P134 Dipesh Kaien

11P135 Divya Shruthi Mantena



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Introduction to IndianAviation Industry

• Liberalization of economy along withderegulation policy induced a boomin the Indian Aviation Industry

• In 2006, the private carriersaccounted for around 75% share of the domestic aviation market.

• There are 15 scheduled operator’spermit holders including two regionalones and two in the cargo category,

with 419 aircraft endorsed on their



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Introduction to IndianAviation Industry

• Indian aviation industry is the 9thlargest in the world

•

It is the fastest growing in the worldand has tripled in the last 5 years

• The Indian commercial aerospace

market is estimated to absorb about1,100 commercial jets worth US$ 130billion over the next 20 years



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SWOT Analysis of AviationIndustry

STRENGTH WEAKNESS

Economic GrowthLiberal and Investor FriendlyEnvironment

Political Stability

High Fuel CostNeed of Skilled ResourcesHigh Cost Infrastructure

Lack of Connectivity of Tier II and Tier III CitiesAirports at long distances fromresidential area

OPPORTUNITY THREAT

Under-penetrated MarketCapturing the Railways marketUntapped Air Cargo MarketIncreasing Purchasing PowerGrowing Tourism

Shortage of trained PilotsVolatile Oil market

Terrorist Attacks



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PEST Analysis

Political Analysis

•

Liberalization of the Sector• Excise Duty and Sales Tax on Aviation Turbine Fuel

• Modernization of Airports

• Interface form Other Agencies

•

Entry Barriers for New Players



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PEST Analysis

Economic Analysis

•

Contribution to Economy

• Rising Fuel Costs

• Investments in the Sector



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PEST Analysis

Social Analysis

• Developments in Airport Cities

•

Employment Opportunities

•

Ensuring a Level Playing Field



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PEST Analysis

Technological Analysis

•

Growth of Electronic Ticketing

• Satellite based Navigation Systems

• Technical Cooperation with EU



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Differential Strategies

• IndiGo : On time performanceguaranteed!! Even at low fares!!



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• Spicejet : No Frill plain vanilla airtravel at cheapest rates



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• KingFisher : Value added services likesnacks at Low Cost Carrier fares



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Introduction To IndiGoAirlines

• IndiGo is the fastest growing airline in thecountry. Flown over 32 million passengerson over 223000 flights in the last 5 years

•

Current market share grown up to 19.6 percent, since launch with the fleet of 42 A-320 aircraft.

•

IndiGo’s revenue increased by 35% toRs.2664.5 crore for FY10 and managed togrow its net profit by more than five timesto Rs.550 crore for the same period

•

Has ordered 180 Airbus-320 aircraft for



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International Flights



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• Best Overall Performer at theAssocham Civil Aviation

•

Indy’s Award for the Best DomesticAirline, Feb 2011ion CentenaryAwards, May 2011

• Best Low Cost Airline Service byIndian Travel Mart Awards,

• IndiGo’s On-Time Performance hasbeen 94.6 per cent (April 2011) -best in the Industr Au ust 2010



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Project Objectives

• To analyse the marketing strategiesof civil aviation service companies inIndia from the perspective of IndiGo

Airlines• To analyse customer behaviour and

preferences with regard to the

airlines• To analyse consumer response to

pre-flight, in-flight and post-flight

services provided by airlines and



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Pricing Strategy

• Rise in fuel prices

• New Technologies

•

Route selections and Destination

MAXIMUM AIRCRAFT UTILIZATION



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Online Booking and Features

Online booking

• Airline Websites

•

3rd Party Websites

Features

• Travel Insurance

• Frequent Flier Program



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Advertisement

• “On Time” Campaign

• “Design for the Indian Traveler”Campaign



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Statistical Analysis• Hypothesis

•

• H1: Students and Working professionals have different considerations whilechoosing an airline.

• H2: Different age groups will have different considerations while choosing anairline.

• H3: Different income groups will have different considerations whilechoosing an airline.

• H4: The distance of airport from your place of travel will have a significantimpact on the customers preference for different pre-flight and post-flightservices proposed.

• H5: The distance of airport from your place of travel will have a significantimpact on the mode of travel adopted.

• H6: The frequency of travel has a significant impact on how sensitive thecustomer is to the services being offered and hence customer’s loyaltytowards the airline.

• H7: Pricing strategies of different airlines has a significant impact on the’



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Conclusions•

High preference to pre and postflight services of pick-up & dropfacilities, check-in assistance

•

Wake-up call preferred by morepercentage of professionals ascompared to students.

•

Attribute most associated to IndiGobrand is Punctuality and CostEffectiveness

•

As a brand IndiGo should



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Limitations

NO PUBLICLISTING

LIMITEDSAMPLESPACE

RESTRICTEDFOCUSSED

GROUP

DISCUSSIONS

RESTRICTEDAGE GROUP

ONLY INDIANCUSTOMER

BASE



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Implications of Project

EFFECTIVENESSOF EXISTINGSTRATEGIES

ATTEMPT TO

CREATE A NEWSEGMENT

INSIGHT INTOCONSUMER

PREFERENCESBRAND VALUEASSOCIATIONS



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Future Research

NEW MARKETANALYSIS

PRICEDIFFERENTIATION

EXPANDED SURVEY

Documents

Marketing Planning, Aviation Industry