5. IndiGo- The Smart Player
ā¢ It has a market share of 35.8% in India as of July 2015
ā¢ It presently operates a fleet of 97 aircraft belonging to the Airbus A320 family
ā¢ IndiGo cuts cost by not serving complimentary food(one of the methods)-
Customers are happy because IndiGo is predominantly a domestic aircraft
hence people are not looking for meals for 2-2.30 hrs journey
6. Segmentation
ā¢ IndiGo goes for Demographic Segmentation:
A. Based on Income & SEC Classification
ā¢ For the middle class, cost sensitive population who love to fly and on cheaper
rates
ā¢ Low priced tickets which avail limited passenger service
ā¢ Being a low-cost carrier, none of IndiGo's flights have business class or first
class sections. It offers only economy class seating. To keep fares low, IndiGo
does not provide complimentary meals in any of its flights
7. ā¢ IndiGo also segments the market on Behavioral Segmentation
B. Based on Usage Rate
ā¢ Markets can be segmented into non-users , light, medium and heavy product
users
ā¢ Indigo run frequent flier miles to convert switchers into loyalists
8. Targeting
ā¢ Lower middle class and middle class families
ā¢ Employees who want to attend meetings or fly to different cities or countries
on time
ā¢ Passengers looking for good Service-
Targeted group can reach easily and book tickets from all sorts of forums
9. Positioning
Positioning:
ā¢ POP ā friendly cabin crew, low cost and
online ticket booking
Along with other economical/cost
effective aircrafts IndiGo positions itself as
a efficient service provider
ā¢ POD (point of difference) ā On time
flights:
IndiGo is known for its on time travelling
service and which is any one who wants
to attend meetings or reach closed ones
on time
10. Differentiation
ā¢ It is the process of distinguishing the differences of a product to make it more
attractive to a particular target market and IndiGo differentiates the āTimeā
factor from other competitors and has differentiated itself from its competitors
by being on time and by availing low cost rates
11. Indigo: āWe are Always on Timeā
ā¢ https://www.youtube.com/watch?v=I0pY4bqreWI
ā¢ https://www.youtube.com/watch?v=06W8eQygNgU
13. The By Gone Era of the Maharaja
ā¢ Air India is the oldest air carrier in the Aviation Industry i.e. for more than
50years
ā¢ Though entry of private players have hurt its market share but still itās flight
strength and networking is its skill. (60 domestic and 31 international
destinations)
ā¢ Market share built during Monopoly era hence has some hardcore loyal users
as well as enjoys the strength of NRI users
17. Targeting
Air India targets different Income Groups (shown before in segmentation) with
its two different Air Carriers:
ā¢ The budget carrier of Air India, a fleet of over 30 Boeing 737-800s cater to the
Low and Middle income group. Initially it was brought into the market in 2005
for International routes at cheap rates. But later this started operations in LCC
segment in the domestic market
ā¢ Its full service carriers which are much more successful and generated over
75% of their total income cater to business executives and to other High
Income Groups
https://www.youtube.com/watch?v=oMIchQxikCM ( only Corporate High Level Managers
have been shown in the AD)
19. Differentiation
ā¢ Air India differentiates itself by marketing itself as Indiaās very own Airline.
They ingrain nationality, patriotism and associates pride of nation with their
aircraft thus distinguishing themselves from other aircrafts, and since they are
the oldest aircraft they hence have been able to differentiate themselves
distinctly
20. Kingfisher Airlines: Fly the Good Times
ā¢ Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlines
ā¢ Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005
with 4 daily flights between BOM & BLR and one A-320 aircraft.
ā¢ There are tools for mood lighting such as web chat, in-seat plug-in for music,
live TV with 16 channels on each seat
ā¢ 100 percent E ticket airline
21. Segmentation:
A. Demographic Segmentation: (Based on Income Level, Occupation & SEC)
ā¢ Kingfisher Airlines is a five star airline service and thus targets the upper class people. Thus
income, social class and occupation are the factors that affect the companyās marketing
strategies
B. Geographic Segmentation :
ā¢ They segmented the Market in terms of Tier 1 city, Tier 2 city, etc
C. Psychographic Segmentation: ( Larger than life life-style, kingly experience and not just a
commute)
ā¢ Delight and pamper their guests through unparalleled levels of service, comfort, and
convenience
ā¢ Designer' aircrafts complete with models as air hostesses
ā¢ In-flight entertainment options
22. Attributes Elite fliers Seekers Bag Packers
Income(demographic) >Rs. 7 lacs
p.a.(Rs)
Rs. 3 lacs to Rs. 5 lacs
p.a.
Rs. 2.5 lacs to
Rs. 4 lacs p.a.
Location(geographic) Tier ā I, Tier - II Tier - I, Tier - II Tier - I
Age Group (demographic) 20-35 yrs 30-55yrs 18-30 yrs
Purpose of
travel(pschographic)
Business,
Leisure
Business, Leisure Point to Point,
Short distance,
Leisure
Lifestyle (pschographic) Flamboyant Orthodox/conventional Unmanaged
Occupation(demographic) Young
professionals
Business executives IT, ITES,
Students,
unemployed
Loyalty (behavioral) Hard core loyal Loyal/switchers switchers
Usage rate (behavioral) Frequent, First
timers
Frequent First timer
Family life
cycle(demographic)
Young married,
Young married
having kids
Older, married having
older children
Young non-
married, Young
married
Airlines kingfisher Indian Air Deccan
23. Targeting
ā¢ Targeting High Income Groups, Business Executives, People looking for an
experience rather than just flying/commuting also the proposition of beautiful
models and liquor targeted high income earning men
ā¢ SEC A, SEC B in the age in the age group of 25-45 years of age. This segment
has traveled extensively and is aware of international travel trends. They are
modern, trendy and upwardly mobile looking for a great flying experience
ā¢ They target young married professionals (age group 20-35) with small kids and
with income levels more than Rs 7 lakhs per annum; who generally commute
between Tier 1 and Tier 2 cities ; travel for business and leisure ; frequent fliers
; enjoy the luxuries of life and have a bent towards flamboyancy. These fliers are
generally observed to be hard core loyals
24. Continuedā¦ā¦..
ā¢ Kingfisher First: (targeted at company executives)
The seats have a 48 inch seat pitch and a 125 degree seat recline with laptop and mobile
phone chargers on every seat. Passengers can avail of the latest international newspapers and
magazines. There is also a steam ironing service on board Kingfisher First cabins. Every seat is
equipped with a personalized IFE system with AVOD which offers a wide range of Hollywood
and Bollywood movies, English and Hindi TV programmes, TV channels and 10 channels of
Kingfisher Radio. Passengers also get BOSE noise cancellation headphones.
ā¢ Kingfisher Class: (targeted at Upper middle class and Higher Class people)
The Kingfisher Class has 32-34 inch seat pitch with footrests, equipped with personal IFE
systems with AVOD on-board. passengers can access the latest movies, English and Hindi TV
programmes, live TV and Kingfisher Radio. There are 17 colour LCD drop-down screens
mounted along with loudspeakers for audio in the cabin overhead, a head-end unit to handle
CDs and DVDs, and a crew control panel
25. Continuedā¦ā¦
ā¢ Kingfisher Red: (targeted at lower income groups)
Kingfisher Red is Kingfisher Airline's low-cost class on domestic routes.
Passengers are given complimentary in-flight meals and bottled water. A
special edition of Cine Blitz magazine is the only reading material provided.
Kingfisher Airlines is the first airline in India to extend its King Club frequent
flyer program to its low-cost carrier as well. Passengers can earn King Miles
even when they fly Kingfisher Red, which they can redeem for free tickets to
travel on Kingfisher Airlines or partner airlines
26. Positioning
POP:
ā¢ Flights on time
ā¢ Friendly cabin crew
ā¢ Assured quality of service
ā¢ On line flight booking, good food
27. Continuedā¦ā¦.
POD:
ā¢ Indiaās first luxury airline, 5 star hospitality
ā¢ most beautiful airhostesses
ā¢ converting travel to an experience
ā¢ most comfortable seats
ā¢ best airline entertainment
ā¢ exquisite liquor
ā¢ they provided Mall experience on board where people could buy a range of
personal products, travel accessories, home care and Kingfisher Airlines-
branded merchandise, which are not available at regular retail points
28. Advertisement & On board address
https://www.youtube.com/watch?v=2PMEQLuXeH4
https://www.youtube.com/watch?v=rMvtLKJmCmM ( Here Vijay
Mallya himself addresses the on board passengers and markets his
aircraft features and service)
29. Differentiation
ā¢ Indiaās first Luxury Airline, but costs lower than economy class travel on full service
airlines (like Jet Airways and Air India) and marginally more than the bus services type
low cost completion.
Value Proposition:
ā¢ Delight and pamper their guests through unparalleled services like rover agents, web check-
in, comfort and convenience
ā¢ Designer aircrafts keeping the customers comfort and convenience in mind, with kind and
helpful stewards, stewardess, air hostesses
ā¢ Various in-flight entertainment options
ā¢ Lowest per seat mile cost in India