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Indigo airlines

IndiGo, India's largest passenger airline with a 41.3% market share, prioritizes low-cost, on-time service since its inception in 2006. It has expanded rapidly, operating 52 destinations with a fleet of 175 aircraft while adapting its target audience to include both middle-class and corporate travelers. The document outlines various market strategies, challenges, and recommendations for future growth, including increased advertising and loyalty programs.

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Introduction • Indigo has India's largest passenger airline with a market share of 41.3% as of June 2018. • Their USP is being on-time, low cost and providing a value-for-money hassle-free experience. • Started in 2006 by Rahul Bhatia of InterGlobe Enterprises. The company based headquartered at Gurgaon, Haryana, India operates to 52 destinations both domestic and international. • They currently have a fleet of 175 aircraft including 41 new generation A320 NEOs and 10 ATRs.
JANUARY FEBRUARY MARCH APRIL MAY Founded by Rahul Bhatia and Rakesh Gangwal. INCEPTION The passenger market share was close to 17.3% 3rd largest in India 2nd largest in a record time of 6 years Delivery of 50th aircraft Largest deal of 27 $ billion in airline business Placed 250 airbus orders Market share of 41.3% Largest in india 8/28/2018 2006 2010 2012 2015 2016 Flying through the years
Competitors
4 Ps • 40+ Destinations • 126 Airbus • Airbus 320 Neo Every Month • Through Billboards/Hoarding s • Low Fares, High Quality & Time Services. • Aviation Turbine Fuel Prices Constitutes About 40% Of The Operating Cost • Provides low cost air transportation services • cargo services named cargo PRODUCT PRICE PLACEPROMOTION
Segmentation • Demographic • Geographic • Psychographic • Benefit Targeting Cost Conscious On-time Performance Less Addititonal Services
Branding & Positioning • IndiGo has a 3 point corporate mantra - Low Cost, On-Time, Courteous. • “Advertising is irrelevant if the customer experience isn’t great” • Customers shouldn't feel cheap just because the tickets bought are cheap. • The company started off as a carrier for infrequent travelers, describing how it made it easier for middle-class people to travel by air. • However, it subtly switched to also target corporate travelers by depicting how their work is more efficient and how it gets its passengers to the destination, on time.
• Rise of fuel costs • New entrants with low fares as competitors • Establish international routes • Provide more hospitality and comforts. • Point of differentiation(POD) is less • Limited no. of routes and no. of seats (180) compared to other airlines. • No.1 in market share • Successful implementation of low fares strategy • On-time departures Strengths Weakness Threats Opportuni ties SWOT Analysis
Porter’s 5 forces RIVALRY FIRMS NEW ENTRANTS BUYERS SUBSTITUTES SUPPLIERS Threat of New Entrants: Switching cost is low so customer can easily choose low cost carriers Bargaining Power of suppliers: supplier are few they are in better position to bargain Bargaining power of buyers Switching from one airline to another as there is low switching cost Availability of Substitute Direct Substitutes are low cost carriers like SpiceJet and Go Air Competitive Rivalry It is highly competitive industry with low return of margin.
Brand Equity, Brand Value RESONANCE JUDGEMENTS FEELING PERFORMANCE IMAGERY SALIENCE • RESONANCE->High Loyalty, Personal attachment Reliability • FEELING->Satisfaction and high value for money • JUDGEMENTS->Always on Time, Quality experience • IMAGERY->Fun, Cheeky and Spunky • PERFORMANCE->On time service, Competitive prices • SALIENCE->India’s largest airlines, Maximum routes
Marketing strategies • DEFENSE STRATEGIES • The aim of defensive strategies is to reduce probability of attack, divert attacks to less threatened areas and lessen their intensity. • POSITION DEFENSE • It means occupying the most desirable position in consumer’s mind. IndiGo has created this position in people’s mind when it comes to low-budget travel and on-time service.
Recommendations • Increasing advertisement in tier 2 cities will attract more economic pricing concerned segment seeking low cost carrier services. • Starting the loyalty program like prime membership and star cards. • Indigo should take part in UDAN scheme in international routes.