Case Study analysis of Indian Airlines. How they have tried to compete with the rest of the service providers. what are the pros and cones in their service and customers perception regarding the service.

1. Presented by
S.R Das
U. K Nath
J.Rahman
N. K Saikia

2. Background
• Started in 1953
• One of the largest regional airline systems in Asia.
• Network spans from Kuwait in the west to Singapore in the
east.
• Covers 75 destinations- 57 within India and 20 abroad.
• Total staff strength of around 18562 employees.
• Annual turnover is well over 4000 crores.
• 4 flight operations centres- Delhi, Mumbai, Kolkata and
Chennai.
• Carries a total of 7.5 million passengers annually.

3. Case study
• Way behind in in-flight services.
• What constitutes satisfaction to different
customers.
• Suffering from the vice of serving average or below
average food.
• Shoulder the responsibility of bringing the country’s
domestic carrier Indian airlines out of the red.

4. Analysis
• Question-1. What are the expectations of the customers, as
viewed from the case?
 Introduction of satellite telephone facilities.
 Fax machines, photocopiers and computer workstations.
 Provide minor personal grooming conveniences such as facilities for
ironing or changing, bathroom showers.
 Nutrition and meal frequencies such as smaller meals at smaller
intervals, changing menus in the business class to include the nutritional
content in the meal.
 Interactive video entertainment in the form of computer games, online
shopping, even mechanisms for ordering meals and beverages.
 communicating discrete benefits available on its plane in any of its
advertising.

5. Analysis cont…
• Question.2- What are the perceptions of the customers, as
viewed from the case?
 Lack of direct control over the quality of ground services by
IA contractors at various airports.
 Cultural differences, communication.

6. Analysis cont…
• Question.3- Are the understanding of the requirements of
the customers right from the point of view of Indian Airlines?
How can it be improved?
 Yes.
It can be improved by
 Use of supplementary advertising and sales promotions.
 Contractors to provide similar services in cities distant from its major
operation point.
 Technological innovation.
 Reduce consumer search cost by using additional advertising strategy.
 Consistent approach to the resolution of service problems and
complaints such as lost luggage, or seat allocations

7. Analysis cont…
• Question.4- Evaluate the case focusing on the various
dimensions of the service quality model.
 Tangibles: meant visible or touchable features (fax machines, ,
photocopiers and computer workstations).
 Reliability: This is related to the ability of a
service provider to perform whatever was promised.
 Responsiveness: How willing is the service provider or its people to help
customers with their problems and priorities?
 Assurance: meant competence, courtesy, credibility and security.
 Empathy: included access, communication and understanding the
customer’s point of view.

8. Analysis cont….
• Question.5- Use service quality model (parasuraman et al) to
analyze the gaps.
• The important contribution of Parasuraman, Zeithaml and Berry has
been their Gaps model, which pinpoints reasons why service quality in a
service company may fall short of what is expected by a customer.
They identified 5 gaps in Service Conception and delivery.

9. GAP One: Customer Expectations- Service Company’s
Understanding of these expectations.
The reasons for gap 1 can be
• Inadequate marketing research (or none at all),
• An attitude problem like “I know what is best for the
customer” among the service company management etc.

10. GAP Two: Service Company’s Understanding of Customer
expectations – The Standards set by the Company.
Reasons for gap two can be
• The customer expectations are too high (according to the
company).
• It either cannot meet them or does not want to try.
Therefore, it may set lower standards of service.

11. GAP Three: The Standards set by the
Company – the Actual Delivery.
Reasons for gap three can be
• Lack of trained people, or a lack of proper
awareness of their role in service delivery, or a lack
of supervision leading to indifference.

12. GAP Four: The Actual Delivery –
External communication
• Occurs because the company may promise something in its implicit or
explicit communications with customers, but delivery may not match it.
Reasons for gap four can be
• Marketing and service delivery departments not working in tandem
• Tendency to overpromise.
• This leads to dissonance or dissatisfaction among consumers.

13. GAP 5- The Overall Gap
• The gap resulting from the above four gaps has been termed
the overall gap between Perceived (Received) and Expected
Service. The overall gap measures the overall satisfaction or
dissatisfaction of a service customer.

14. Analysis cont…
• Question.6- Is Mr. Vijay right in his approach?
 Yes, because they are way behind in in-flight
servicing. They have a lot to learn from other airline
and should definitely try and improve their
standard with their international competitors.

15. Analysis cont…
• Question.7- If you were in Mr. Vijay’s shoes, what would
be suggestions focus on?
 Better advertising and sales promotions.
 Similar services in cities distant from its major operation point.
 Improvement in Technology
 Reduce consumer search cost.
 Resolution of service problems and complaints such as lost
luggage, or seat allocations.
 Attitude of service provider needs to be changed for the better.

16. THANK YOU