Project 1- Services Marketing

Outline-Indian Aviation Industry.IndiGo Airlines and their Services.7 P’s of Services Marketing.

Kapil Mutha (PGDMM-31510) Shahpura Chintu(PGDMM-

31505)

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, Jet-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 travellersoaring 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 (an ex-US Airways CEO) of Indian information technology, travel and hotel group InterGlobe Enterprises. 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 five 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

• It is still not listed on the stock exchange

.

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.

Tag line-”On time every time”

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

On the Ground Service(1/2)..

In flight Service (2/2)

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

Promotion Mix

Word of Mouth

‘Customer Loyalty Ladder’ .

Sales Promotion

The Travel Agents, Tour Operators, Frontline Staffs Contribute a Lot to The Promotion of Airlines Business.

Publicity

The PRO, Receptionist, Travel Agents, Media People Are Very Important People in Publicizing The Business.

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.

• 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

Cancellations,Complaints(1/2)

Cancellations,Complaints(2/2)

• On the ground:

• Booking offices or ticket counters.

• Paperwork.

• Brand Logo.

• Tickets.

PHYSICAL EVIDENCE

In-flight:

•Aircraft.•Seating Configuration.

•Good Inner-exteriors.

•Cleanliness.

•Uniforms.

•Ambience.

•Baggage.

•Labels or Tag.