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IndiGo Airlines


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IndiGo Airlines

  1. 1. Group no : 07 Submitted To: PROF. Mr. Prasanna Sant
  2. 2. Nitesh Gothankar Nihar Thirodkar Sumit SinghRoll No. 2212 Roll no. 2248 Roll no. 2243Kannan Nadar Abhinav Patel Vinayak ChilveriRoll no. 2225 Roll no. 2230 Roll no. 2207
  3. 3. Introduction
  4. 4. Location
  5. 5. The IndiGo Dream…
  6. 6. Aditya Ghosh, President Rahul Bhatia, MD
  7. 7. History Early beginnings: Airbus 320-200:Rakesh Gangwal Rahul Bhatia
  8. 8. Rapid ExpansionRise to Indias largest airlinesDestinationsOnboard… …
  9. 9. Company Information IndiGoParent Company InterGlobe EnterprisesCategory Indian domestic sectorSector AirlinesTagline/ Slogan Go IndiGoUSP On Time Performance, Lowest Price
  10. 10. Contd…. STPSegment Cost Conscious PassengersTarget Group Lower Middle Class / Middle ClassPositioning Low Cost No Frills
  11. 11. Going International:First International service IndiGo’s first international flight to Dubai is greeted with a traditional water cannon salute.
  12. 12. Mission"IndiGo is a very quality consciousairline and passenger safety isparamount to our company’s missionand values," the Gurgaon-based airlinesaid in a statement."IndiGo is in line with the ‘strategicplan of the ministry of civil aviation(MOCA) for 2010-15’, whichrecognizes the need for growth."
  13. 13. VisionIndiGo to go ahead with fleet expansion"We will be adding 12 aircraft in the current year. Wehad a fleet of 48 aircraft in December 2011 and thisnumber will reach 60 aircraft in December 2012,"Aditya Ghosh, presidentIndiGo is the only profit making airline in the country,with a market share of 19.8 percent in November, 2011.
  14. 14. Competitors
  15. 15. External AnalysisAirline Industry Attractiveness Foreign equity allowed: Attraction of foreign shores: Rising income levels and demographic profile: Untapped potential of Indias tourism: Glamour of the airlines:
  16. 16. Porter’s Five Forces strategy for Airline Industry
  17. 17. Threat of New Entrants Product differentiation: Switching cost:In aviation industry the major entry barriers can be: Government regulations
  18. 18. Contd….Indian Civil Aviation Policy are: Setup costs: Fuel prices: Resource:
  19. 19. Bargaining Power of SuppliersIndiGo fleet comprise of Airbus-A320 and the switchingcost is high due to the limited number of suppliers.The brand value of suppliers is high due to their lessnumber and results in higher bargaining power for them.The proof of evidence for high power enjoyed by ATFsuppliers lies in the fact that the ATF prices constitute 35-40% of the costs in India compared to 20-25% globally.
  20. 20. Bargaining Power of buyersBuyers in airlines industry are large in number and highlyfragmented thus lowering their power .With the growingIndian economy and increasing low cost carriers, the buyershave increased and so have the growth opportunities.The switching cost is minimal since there are multiplealternatives available. It is not difficult to move from oneairline to another or to switch to a substitute.
  21. 21. Competitive RivalryVery little scope for differentiation betweencompetitors’ products and servicesSuppliers of aircrafts are the same, i.e., Boeing andAirbus. Hence supplier’s bargaining power is high.Switching cost of customers is high for low costcarriers, i.e., there is no brand loyalty. Closestcompetitor of IndiGo is Spice Jet followed by Go Air
  22. 22. Availability of SubstitutesThe substitute for low cost airline company is the railways.But this substitute is not very powerful due to the followingreasons: Customers use airline transport as it is convenientand saves travelling time. So trains cannot work as asubstitute to save time.Secondly, many customers use airlines as a status symbol.So again, trains cannot substitute for prestige. So if weconsider IndiGo airlines, the direct substitutes are the otherlow cost carrier’s like Spice Jet and Go Air. So in this case,threat of substitutes is high as the switching cost betweenlow cost carriers is low.
  23. 23. OpportunitiesThe flight density of IndiGo airlines is limited in domesticmarket; hence there is a big scope to increase the flightfrequencyOpening up of international routesLargest market share among LCCs in Indian MarketMiddle class taking to the skies
  24. 24. ThreatsATF (Air Turbine Fuel) prices have increased radicallysince 2005Foreign and private players often poach work-force ofcompetitorsBarriers to exit in aviation industry are high because ofhigh capital investment, nongovernment restrictions andloss of brand image.
  25. 25. AwardsThe Best Low-Cost Airline in India. Outstanding Start upThe Best Staff Service in India for awardthe first time.
  26. 26. Market Share
  27. 27. Advertisement StrategyHoarding at airports.Social networking medium- Facebook, Twitter, YouTube.Multi- storeyed building and offices.Magazines.Sponsoring fashion shows, talent hunts, new year partiesetc.
  28. 28. Internal Environment AnalysisResources, Capabilities and Core Competencies are the keyelements of the Internal Environment. The resources aretangible and intangible.
  29. 29. Tangible resources Aircrafts: Human Resources: Fuel:
  30. 30. Intangible resources Brand Equity/Reputation: Social Capital: Brand Awareness: Employee Relationship:
  31. 31. StrengthsIndiGo has high brand awareness and brand equity.Cost leadership: Successful implementation of low coststrategy.Highly efficient management that ensures high rate of on-time arrivals.Continuous innovation to improve on non-price factors.Tie-up with hotels
  32. 32. WeaknessesScope of product differentiation is less.IndiGo is not exploring the untapped domestic air cargomarket.Not on too many routes as compared to competitorsStill has to establish itself on international destinations
  33. 33. Feasible AlternativesIncrease domestic operationExtension
  34. 34. Final Recommendation
  35. 35.
  36. 36. Addresswww.goindigo.inToll Free : 18001803838 ( MTNL & BSNL)Call Center : 09910383838BANGALORE DELHI - NCR ( GURGAON)G17/20, Richmond Towers, Level -3, Tower-C, Global Business Park,12, Richmond Road, Bangalore-560025 M.G. Road, Gurgaon - 122002 Tel : 0124-Tel: 080-22219810, 22219820,22126879 4352500CHENNAI GOA144/145, Malavika Center, City Business Centre, Coelho Pereira Bldg,Kodambakkam High Road, Nungambakkam, Opp. The Jumma Majod, Dada VaidyaChennai - 600034 Road,Tel : 044-65272262, 65272272 Panjim, Goa - 403001, Tel : 0832- 2235115
  37. 37. HYDERABAD JAIPURGround Floor, 5-9-86/1, Chapel Road, 101-106, Jaipur Towers,Hyderabad - 500001 M.I. Road, Jaipur - 302 011Tel: 040- 23211635 Tel : 0141- 2370062 MUMBAIKOLKATA 17, Jolly Maker Chambers - IILandmark, 228A, A.J.C. Bose Road, 255, Nariman Point,Kolkata - 700020 Mumbai - 400021Tel : 033-40036208 Tel : 022-22027083PUNE VADODARAG14-17, Metro House, 302, Capri House -2,7/B, Mangaldas Road, Jetalpur Road,Pune -411001 Vadodara - 390007Tel:020-26050961 Tel: 0265- 2320419