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Presented by S.R Das U. K Nath J.Rahman N. K Saikia

Indian airlines Case Study analysis

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Case Study analysis of Indian Airlines. How they have tried to compete with the rest of the service providers. what are the pros and cones in their service and customers perception regarding the service.

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Page 1: Indian airlines Case Study analysis

Presented by

S.R DasU. K NathJ.RahmanN. K Saikia

Page 2: Indian airlines Case Study analysis

Background

• Started in 1953

• One of the largest regional airline systems in Asia.

• Network spans from Kuwait in the west to Singapore in the east.

• Covers 75 destinations- 57 within India and 20 abroad.

• Total staff strength of around 18562 employees.

• Annual turnover is well over 4000 crores.

• 4 flight operations centres- Delhi, Mumbai, Kolkata and Chennai.

• Carries a total of 7.5 million passengers annually.

Page 3: Indian airlines Case Study analysis

Case study

• Way behind in in-flight services.

• What constitutes satisfaction to different customers.

• Suffering from the vice of serving average or below average food.

• Shoulder the responsibility of bringing the country’s domestic carrier Indian airlines out of the red.

Page 4: Indian airlines Case Study analysis

Analysis

• Question-1. What are the expectations of the customers, asviewed from the case?

Introduction of satellite telephone facilities.

Fax machines, photocopiers and computer workstations.

Provide minor personal grooming conveniences such as facilities for ironing or changing, bathroom showers.

Nutrition and meal frequencies such as smaller meals at smaller intervals, changing menus in the business class to include the nutritional content in the meal.

Interactive video entertainment in the form of computer games, online shopping, even mechanisms for ordering meals and beverages.

communicating discrete benefits available on its plane in any of its advertising.

Page 5: Indian airlines Case Study analysis

Analysis cont…

• Question.2- What are the perceptions of the customers, as viewed from the case?

Lack of direct control over the quality of ground services by IA contractors at various airports.

Cultural differences, communication.

Page 6: Indian airlines Case Study analysis

Analysis cont…

• Question.3- Are the understanding of the requirements ofthe customers right from the point of view of Indian Airlines?How can it be improved?

Yes.

It can be improved by

Use of supplementary advertising and sales promotions.

Contractors to provide similar services in cities distant from its majoroperation point.

Technological innovation.

Reduce consumer search cost by using additional advertising strategy.

Consistent approach to the resolution of service problems andcomplaints such as lost luggage, or seat allocations

Page 7: Indian airlines Case Study analysis

Analysis cont…

• Question.4- Evaluate the case focusing on the various dimensions of the service quality model.

Tangibles: meant visible or touchable features (fax machines, ,photocopiers and computer workstations).

Reliability: This is related to the ability of a

service provider to perform whatever was promised.

Responsiveness: How willing is the service provider or its people to helpcustomers with their problems and priorities?

Assurance: meant competence, courtesy, credibility and security.

Empathy: included access, communication and understanding thecustomer’s point of view.

Page 8: Indian airlines Case Study analysis

Analysis cont….

• Question.5- Use service quality model (parasuraman et al) to analyze the gaps.

• The important contribution of Parasuraman, Zeithaml and Berry hasbeen their Gaps model, which pinpoints reasons why service quality in aservice company may fall short of what is expected by a customer.

They identified 5 gaps in Service Conception and delivery.

Page 9: Indian airlines Case Study analysis

GAP One: Customer Expectations- Service Company’s Understanding of these expectations.

The reasons for gap 1 can be

• Inadequate marketing research (or none at all),

• An attitude problem like “I know what is best for thecustomer” among the service company management etc.

Page 10: Indian airlines Case Study analysis

GAP Two: Service Company’s Understanding of Customer expectations – The Standards set by the Company.

Reasons for gap two can be

• The customer expectations are too high (according to thecompany).

• It either cannot meet them or does not want to try.Therefore, it may set lower standards of service.

Page 11: Indian airlines Case Study analysis

GAP Three: The Standards set by the Company – the Actual Delivery.

Reasons for gap three can be

• Lack of trained people, or a lack of properawareness of their role in service delivery, or a lackof supervision leading to indifference.

Page 12: Indian airlines Case Study analysis

GAP Four: The Actual Delivery –External communication

• Occurs because the company may promise something in its implicit orexplicit communications with customers, but delivery may not match it.

Reasons for gap four can be

• Marketing and service delivery departments not working in tandem

• Tendency to overpromise.

• This leads to dissonance or dissatisfaction among consumers.

Page 13: Indian airlines Case Study analysis

GAP 5- The Overall Gap

• The gap resulting from the above four gaps has been termedthe overall gap between Perceived (Received) and ExpectedService. The overall gap measures the overall satisfaction ordissatisfaction of a service customer.

Page 14: Indian airlines Case Study analysis

Analysis cont…

• Question.6- Is Mr. Vijay right in his approach?

Yes, because they are way behind in in-flightservicing. They have a lot to learn from other airlineand should definitely try and improve theirstandard with their international competitors.

Page 15: Indian airlines Case Study analysis

Analysis cont…

• Question.7- If you were in Mr. Vijay’s shoes, what would be suggestions focus on?

Better advertising and sales promotions.

Similar services in cities distant from its major operation point.

Improvement in Technology

Reduce consumer search cost.

Resolution of service problems and complaints such as lostluggage, or seat allocations.

Attitude of service provider needs to be changed for the better.

Page 16: Indian airlines Case Study analysis

THANK YOU