Indigo Airlines Marketing

The easiest way to
become a millionaire is
to start out as a
billionaire and invest in
an airline.
Indigo
Airlines
Group 9
Avinash Kumar G034
Saurabh Mishra G040
Abhiroop Mukherjee G042
Amartya Sen
G055
Vuda Anurag Naveen
Theja
G062
PES
T
Competitive
Rivalry
Bargaining
Power of
Buyers
Threat of
new entrants
Bargaining
Power of
supplier
High
Med
High
Potters Five
Forces
Growing Middle Class (+)

Domestic Leisure Travel
(+)
Foreign Tourist (+)
Status Symbol (+)
Security Issues &
Terrorism (-)
Technological
Threat of
Substitute
Political
Low
To
Med
Open sky policy

Deregulations in different spheres
Low entry barriers to attract new
companies
FDI Limits
49% for Airlines
100% for Airports
Extensive airports development
plans
Socio-Cultural
High
Economic
Rising Income of middle class

GDP growth of more than 8% &
expected rate in 2 digits
Hike in average income.
Average salary increase of 14%
Growing Tourism Industry
Concern due to increase in ATF
prices
Modernized Airports (+)

Greenfield Airports (+)
Better handling of
Aircrafts, passengers
and Cargo (+)
Brand Strength
(Differentiation and
Relevance)
Brand Stature
(Esteem and Knowledge)
Strength
Weakness
Opportunity
Low fares
High Service Quality
Operational
Efficiency
Customer Service
Short haul flights
Fuel Efficient
Aircrafts
Less differentiation
Short lived
innovations
Untapped domestic
cargo segment
No established
alliances
Lack of product depth
and breadth
Increasing middle
class population
Increase in
domestic tourism
Booming air cargo
business
Chartered Services
T
Threat
High ATF prices
Economic
slowdown
Government
policies
Technological
advancement in
communication
Brand
Asset Valuator Model
Entry of
LFC, price
war
Increasing
Competition
Consolidation Rise of
Phase Others LFC
27%
Spice Jet; 9%
Indigo; 37%
Air India; 18%
Jet Airways; 24%
Current Market
share
Domestic market share

(%Pax-Km)
Vistara;
1%
Asia; 1%
1%
AirAir
Costa;
Go air; 9%
Sahara
Less
New players
bought Spice
by Jet
Players,
enter, still 3
Jet,
Deccan
19%
Only 3
major playerOthers
by
Kingfisher
Others
companies holding
77% 31%
34%
hold
share Kingfisher
Indigo
majority
21%
33%
share
Sahara
Air India Grp12%
47%
Jet Grp
41%
Air Deccan
17%
Jet Grp Air India Grp

18%
26%
Jet Grp
30%
Jet Grp
21%
Air India Grp

23%
Evolution of Indian competitive environment
Jet Airways
Acquired Air Sahara on

2007
First airline to develop
frequent flyer program
Introduced COD
Preferred by corporates
Mapped customer
experiences at all touch
points like booking, comfort
and baggage retrieval.
Identified the values
customer looked for
Used all media channels
Weakness
Weakness
Strengths
Strengths
Jet
The Joy of Flying
Airways
Competition from the

LCCs and other
competitors means
market share growth
is tough
Presence of other
airlines on
international routes
making it difficult to
have significant
market share
Strength Indicators
Major Routes
First Class
Internation
al
Premiere
Economy
Class of
service
Premiere
Domestic
Economy
11
11
8
9
17
8
SpiceJet
Indigo
Has created a good image among the Indian fliers

Trusted Airline by the Corporates
One of the biggest Indian airline companies with
over 13,000 employees
Operations in over 75 Indian cities and over 400
daily flights
Top of the mind brand due to excellent operations
and marketing
It also has international destinations in nearly 20
countries
Spice
Jet
Flying for everyone
SpiceJet
Pax-Km
Indigo
Strong backing by the

Promoters
LCC segment is ever
growing in the country
One of the largest low
cost carriers in India
Has a reach to around
35 Indian destinations
Good presence in the
market due to its
branding and
advertising
Weakness
Weakness
Strengths
Strengths
Major Routes
Low market share

due to presence of
significant
competition
Has limited
Dependency on
Leased assets
Revenue
Segment: Cost Conscious

Passengers
Target: Middle class
Positioning: Low costs, No Frills
Tags: Not low cost flying, but smart
flying
Consumer Decision Making

Process
Influencing Consumer
Decision making
Highest
Operating flights,
Least turn around
time
Lowest
cancellation rate
Only Single class

airline carrier
No loyalty
programs
Best in house
Customer
Service center
On Time ( Core benefit)

Low Cost
Courteous
Need
Recognition
Evaluation
of
Alternatives
Information
Search
Consumer
Participation
Courteous
Buyer
Behavior
Post
Purchase
Purchase
Omni Channel
availability
Dedicated offline
Indigo agents
Key
Differentiatin
g
Strategies
Indian Aviation Industry

Consumer Trends
Key Findings
Nearly half of those
travelling with family are
young - aged between 25
and 35 years
Organized and planned
tours are a prevalent
choice for vacations in
India
Discounted and cash-back
offers more attractive to
respondents than loyalty
points and other special
services
Parameters
Company: Vision, mission, values,

impact, strengths, weaknesses
Mission: low fares, on-time flights and a hassle-free experience
Vision:
IndiGo will continue to offer affordable fares and focusing on our
three core principles on-time performance, providing consistently low
fares, and a
courteous and hassle-free travel experience consistently.
Value:
IndiGo is built for people with things to do, places to be, people to
see - who don't want to waste time, money or energy in the process
Impact:
Market Leader with 38% market share
Only profitable airline over a period of time
Strength: High operational reliability Award-winning service On Time
Performance
Company: USP
IndiGo offers web- check in, Q-busters and self-check-in kiosks for an easy
and faster check-in
The airline introduced a new initiative called Braille guide.
A320 aircraft equipped with Sharklet fuel saving wing tip devices
Weakness :
Not on too many routes as compared to competitors
Still has to establish itself on international destinations
Source : http://biz-india.in/interview-aditya-ghosh/
Issues: Opportunities,
challenges
Opportunities:
Connecting Tier 3
cities
Chartered Services
International
routes Presently
only 5 countries
Challenges:
Load factor : Spice Jet 92.1
% Jet Airways 80% IndiGo
76.8% GoAir 75.6% as per
DGCA data
About 70% expenses are
dollar-denominated,
whereas only 15% of its
revenue in the same
currency
Keep the cost low and
continue to offer lower and
affordable fares
Close to 50 per cent of
Indigos expenses is on
buying aviation turbine fuel
(ATF)
STP and MM of Indigo

Leisure
Corpo
rate
Students/
Low income
individuals
Segmentation
Product
Individual
booking
Price
Group booking
Low cost
Round Trips
Corporate
Packages
Undifferentiated
Targeting
Multiple Segment
Specialization
Targeting
People
Place
Air hostess
attire
Limited routes
Highest
Increased
employee
flight
satisfaction
frequency per
Highest
route
customer
satisfaction
Process
Apps
Website (own
+ online
aggregators)
Physical
Evidence
Hello 6E
Spin off
products and
baggage tags
Promotion
Real
Positioning
Virtual
Positioning
Positioning
Recommendatio
ns
Increase leg
space
Reduced Breakdown and inventory cost

High fuel efficiency
Low Average Age
of planes Improves turn around time
Point to point
Routing
Employee centric
approach
Premium
segment
Reduced airport charges unlike hub and spoke model

Reduced airport charges unlike hub and spoke model
Reduced complexity
Follow employee first, customer principle

Motivated employees is a must in service industry
IPO a huge success

High brand equity and premium segment would be a hit
Move to app only

strategy
Option to customize
services
Thanks!
Any questions?

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The easiest way to

Growing Middle Class (+)

Open sky policy

Rising Income of middle class

Modernized Airports (+)

Air India; 18%

Jet Airways; 24%

Domestic market share

Jet Grp Air India Grp

Air India Grp

Evolution of Indian competitive environment

Acquired Air Sahara on

Competition from the

Has created a good image among the Indian fliers

Flying for everyone

Strong backing by the

Low market share

Segment: Cost Conscious

Consumer Decision Making

Only Single class

On Time ( Core benefit)

Indian Aviation Industry

Company: Vision, mission, values,

STP and MM of Indigo

Reduced Breakdown and inventory cost

Reduced airport charges unlike hub and spoke model

Follow employee first, customer principle

IPO a huge success

Move to app only

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