Jet airways case study


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Jet airways case study

  1. 1. Flying Jet Airways: Is it really a privilege<br />By:<br />ShubhadipBiswas<br />1<br />
  2. 2. About<br />Major Indian airline based in Mumbai, Maharashtra<br />Market leader in the domestic sector.<br />Operates over 400 flights daily to 67 destinations worldwide.<br />Main hub is ChhatrapatiShivaji International Airport, with secondary hubs at Delhi, Chennai,Ahmedabad, Bengaluru, Pune and Kolkata.<br />2<br />
  3. 3. Seamless service helping in facilitating CRM<br />Creating value for its shareholders and the economy<br />The aim is to provide a flawless service to the customer, external and internal.<br />The employees must know their customers.<br />Abridging the gap across departments and across destinations as one strong chain.<br />Providing services to the customers in a effective manner<br />RESULT: The loyalty rate will automatically be increased<br />3<br />
  4. 4. The loyalty program of Jet Airways--- ‘Jet Privilege’<br />5 Membership tiers—<br />Elite tiers--platinum, gold, silver--specially created for most frequent flyers. <br />blue plus and blue<br />The Dynamic Tier Review (DTR) System –<br /> DTR evaluates a member's tier based on Tier Points and Tier JPMiles. <br />4<br />
  5. 5. The loyalty program of Jet Airways--- ‘Jet Privilege’<br /> Tier Points / Tier JPMiles /Tier Upgrade <br /> 6-month 12-month <br /> Fast Track Fast Track<br /> Upgrade Upgrade<br />Blue to Blue Plus 5/ 7500 Not Applicable<br />Blue Plus to Silver 15/ 22500 20/ 30000<br />Silver to Gold 30/ 45000 40/ 60000<br />Gold to Platinum 45/ 67500 60/ 90000<br /> <br />5<br />
  6. 6. The loyalty program of Jet Airways--- ‘Jet Privilege’<br />Facility:<br /><ul><li>Tele check-in
  7. 7. Web check-in
  8. 8. Kiosk check-in
  9. 9. Additional baggage allowance
  10. 10. Priority tagging
  11. 11. Lounge access
  12. 12. Guaranteed reservations upto 24 hrs prior to departure
  13. 13. Special partner benefits etc.</li></ul>6<br />
  14. 14. The loyalty program of Southwest Airlines --Rapid Rewards Program <br />With SWA travelers earn points not miles.<br />7<br />
  15. 15. Comparison of flat loyalty program—by TESCO and tier system of JET AIRWAYS<br />Loyalty program by Tesco--flat one. <br />This program is a way of learning about how consumers shop and what they want from their retailer <br />Not just changing the one-to-one communication with the customer but changing the physical retail offer.<br />It is directed at costs and benefits of an offering and not at the brand itself. <br />Therefore, consumers are likely to switch once they perceive alternative offerings as being superior with respect to the cost-benefit ratio.<br />8<br />
  16. 16. Comparison of flat loyalty program—by TESCO and tier system of JET AIRWAYS<br /><ul><li>Jet Privilege offers 5 membership tiers.</li></ul>Benefit of JET PRIVILEGE :<br /><ul><li>concentrates on a company’s most valuable customers, may create more value at a lower overall program cost
  17. 17. It is a way to shift a customer into a partner
  18. 18. It is a type of Affective loyalty which relates to a favorable attitude towards a specific brand
  19. 19. private label programs is the idea of recognition - "I'm a Gold customer.
  20. 20. Customers wear their recognition badge with honor. After all, it says that "I am important.“</li></ul>9<br />
  21. 21. Comparison of flat loyalty program—by TESCO and tier system of JET AIRWAYS<br /><ul><li>Labeling the tiers in status-signaling names (e.g., silver, gold, platinum) makes consumers more sensitive to program hierarchy.</li></ul>Basic benefits:<br /> Shift - Acquire new customers <br /> Lift - Increase the spending of existing customers <br /> Retention - Improve the natural churn rate of customers <br /> Profit mix - Shift spending to higher margin products<br />10<br />
  22. 22. Comparison of 3 tier system and 5 tier system<br /><ul><li>How big of a gap exists in the benefits offered to the different tiers does not matter much to consumers.
  23. 23. Consumers feel good when they are in elite group
  24. 24. consumers feel more special
  25. 25. Adding a subordinate elite tier enhances their perceptions of status
  26. 26. Inclusion of two more tires will help to discriminate customers in a better way
  27. 27. The intention is to make them feel specially rewarded for their high level of loyalty</li></ul>11<br />
  28. 28. Aggregate loyalty offering the right solution for Indian market<br /><ul><li>Indian markets are huge and diverse,
  29. 29. It is quite challenging to understand each customer individually.
  30. 30. Indian customers can be broadly classified into two categories—</li></ul>averse to change and is less experimental in nature<br />Choosy and no emotional bond<br />In this type of scenario open loop-aggregation<br />loyalty scheme is the best choice--“sharing of the<br />customer’s wallet”. <br />12<br />
  31. 31. Aggregate loyalty offering the right solution for Indian market<br /><ul><li>Encourage the customer to spend where we want them to spend.
  32. 32. complimentary and non-competing partners who can add value to the customer experience are chosen to participate in the program.
  33. 33. Identify potential customer
  34. 34. Reduce overall acquisition cost
  35. 35. Target is to create, to keep and to leverage customers</li></ul>13<br />
  36. 36. THANK<br /> YOU<br />14<br />