PROJECT REPORT ON MARKETING

STRATEGY OF

UNDER THE GUIDENCE OF : Dr. Devashish Bose Submitted by : Harivansh Verma P.G.D.M , II nd sem.

DECLARATION BY THE STUDENT

I Harivansh Verma declare that this project titled “ PROMOTIONAL STRATEGY OF INDIAN AIRLINES” is an original work done by me under the guidance of Dr. Devashish Bose ( Director) . I further declare that it is my original work as a part of my academic course .

TABEL OF CONTENT Executive summary Objectives Introduction History of Indian Airlines Revenue for Indian Airlines SWOT analysis of Indian Airlines Marketing strategy Marketing initiatives Concequenses of marketing strategy conclusion

EXECUTIVE SUMMARY The current millennium has unfolded

new business rules , most the significant of them being that company has to constantly look into mind`s of customer . Customer loyalty play`s a significant role and today securing that loyalty requires quality at right price and of course last but not the least i.e creating awarness about their service .It was a great experience in collecting information of such a reputed company , which has in it the ability to retain costumer

PREFACEI feel great pleasure in doing my project “ PROMOTIONAL STRATEGY OF INDIAN

AIRLINES” . The whole hearted support of the exeutives of the Indian Airlines has enabled me to complete this project.

This project is all about the “Marketing initiatives taken by Indian Airlines” with a rapidly changing technology , social , economic , political- legal and the trend toward`s globalization of business and industry , emerging of various private airlines ; effective promotional strategy has become a very challening job .

OBJECTIVE

To Identify the service offered by Indian Airlines.

To study the promotional strategy followed by Indian Airlines

INTRODUCTION The erstwhile Indian Airlines Limited or

currently known as Indian, was India’s first state owned domestic airline. Indian Airlines was set up under the aegis of federal Union Ministry of Civil Aviation and based in New Delhi. Its main bases were the international airports in Chennai, Mumbai, Kolkata and New Delhi

Till 1990, Indian Airlines enjoyed a monopoly in the Indian air space. However, The economic liberalisation process initiated by the Government of India ended Indian Airlines' dominance of India's domestic air transport industry. Indian Airlines faced tough competition from private airlines like Jet Airways

Indian Airlines or Indian is completely owned by the Government of India and together, with its subsidiary Alliance Air, Indian carries a total of over 7.5 million passengers annually. Indian joined hands with Air India in 2007 and are collectively known as Air India. Indian is referred to all the domestic flights, while Air India refers to all the international flights.

The new airline's headquarters is stationed in Mumbai, and have a fleet of more than130 aircrafts

Indian Airlines, in its new avtar of Air India can be identified with its key color as orange and a contemporary graphic representation of a flying swan with the Konark Chakra placed inside it, the imagery depicting traditional Indian hospitality and service

HISTORY OF

It was set up on June 15, 1953 after legislation came into force to nationalise the entire airline industry in India. Two new national airlines were to be formed along the same lines as happened in Britain with BOAC and BEA. Air India International took over international routes and Indian Airlines Corporation took over the domestic and regional routes.

Eight former independent domestic airlines; Deccan Airways, Airways - India, Bharat Airways, Himalayan Aviation, Kalinga Air Lines, Indian National Airways, Air India, Air Services of India, were merged to form the new domestic national carrier. Indian Airlines Corporation inherited a large fleet of 74 DC-3 Dakotas, 12 Vikings, 3 DC-4s and various smaller types from the 8 airlines that made it up

REVENUE FOR INDIAN AIRLINES

Today nearly 80% of the customer are provided by the travel agent to the Indian Airlines and these travel agent are 2000 in number spanning the whole country . Indian Airlines provides 5% and 7% commission on domestic and international fares respectively to the travel agent .

SWOT ANALYSIS OF

STRENGTH Large fleet Experienced staff . Dedicated departure terminal at delhi . Connectivity with the rservstion centers and

agent is good Adequate infrastructure and large network. Government backing. Indian Airlines has a modern and complete in-

house traning facility.

WEAKNESSES

High overhead`s and huge work force resulting in lower output .

Attitude of the staff Ageing fleet . Inaccessibilty of the staff over phone . On the spot decision making flexibility not

their . Ageing workforce ( cabin crew ) Job security is to high

OPPORTUNITIES Tourism industry is gaining momentum. Induction of new air craft`s on lease . Response to some of the promotional fares

(schemes) is encouraging. Corporates are showing interest in Indian

Airlines . Economic scenario is showing an upturn.

THREATS

Perception of the better product in comparison to that of the competitor .

Recent world events hitting the tourism industry badly .

Expectation of people from Indian Airlines is high , even some of them are unrealistic.

Increase in the capacity of various air lines . Falling market share of Indian Airlines to that

of Jet airways.

MARKETING STRATEGY OF

The product that Indian Airlines sels are space , it may be its seats or cargo space . This product is highly perishable and costly . Airlines earn revenue by selling this space . This means that higher the seats sold , more is the revenue generated . Thus if the plain goes in the air with empty space ,this means that much space has perished . Thus the life cycle of the airline`s product begins and ends with each flight . To manage this situation a well developed marketing strategy is required , such a strategy considers a portfolio of product and takes into account the anticipated moves of competitors .

MARKETING INITIATIVES Indian airlines took number of economic

initiatives and brought about significant improvements in its product . Sustained and meaningful campaign was launched to disseminate information about the improvement`s

The marketing initiatives taken were :-

1 - PRODUCT IMPROVEMENT Extra seat Wider seats Choice of meals Senior citizen discount Check -in plus Diet special. Dial- a- cancellation Reporting time

2 . Incentive schemes 3 . Promotion through frequent flyer programme .

4 . Cargo hadiling 5 . Price6 . Promotional fares schemes.

CONCEQUENSES OF MARKETING STRATEGY Aircraft utilization has increased. Productivity of pilot rised. Increased international operation . Employee morale. Passengers perception improves

CONCLUSION The healthy competition of domestic air

lines has set new trends in the quality of service. Previously in the monopolistic environment of Indian Airlines the quality and the desire to win over the constraints was totally missing . With the up coming of Jet Airways there is sea changes in the quality of service and the pride of the job .

Hence today it is the matter of great significance that the Indian Airlines staff now cares about the passenger comfort and takes pains to see that the flight is on time .

Advertising has brought awarness among the people regarding Indian Airlines

It is seen that people who are aware of the airline are not just verbally aware but also prefer to travel by that air lines . This depicts that the effect of advertising of is directly propotional to the uses to the airlines.

It is a fact that it is mandatory for the government officials to travel by indian airines .

LIMITATION OF THE STUDY Due to constraint of time , a larger

number of topic were not chosen. Marketing strategy of a company is

indeed a closely guarded secret especially in the face of stiff competition as in the case of the airlines sector in India . Therefore to extract information on the marketing strategy was a difficult task .

THE UPCOMING PLANE IN INDIAN AIRLINES FLEET