Airlines Industry

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What is Service Marketing?

Services are distinguished from products mainly because they are generally produced at the same time as they are consumed and cannot be stored away or taken and enhanced marketing mix need to be deployed .

Its not about simply reaching about to customers with the right service. But, its also about creating that right desire to possess service.

AIRLINES AS A SERVICE INDUSTRY

• The Airline industry came into existence during the 17th centuries.

• Origin of Indian aviation industry can be Origin of Indian aviation industry can be traced back to the year 1912.traced back to the year 1912.

• Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries

• India has the private airlines as India has the private airlines as its key playersits key players

• 75% of the market share is 75% of the market share is owned by the private sector.owned by the private sector.

• India is the 9th largest aviation market in the world.

Entry Of

Private Players

• Market Share. The market shares of the Major Airlines (First quarter2009) are as given in the pie chart below:

THE SERVICE MARKETING TRIANGLE

• One can better understand the workings of airlines by looking at its marketing triangle.

COMPANY

CUSTOMERPROVIDER

ENABLING PROMISES MAKING PROMISES

KEEPING PROMISES

PRODUCT

PRICE PLACE PROMOTION

PEOPLE

PROCESS

PHYSICAL

EVIDENCE

RAINBOW OF SERVICE MARKETING MIX

Product Mix

• Giving a Feel For The “Product” Inside a Service Wrapper .

• Consumers are demanding not products, or features of products but the benefits they will be offered.

• The airline product includes of two types of services:

1. On the Ground Services.

2. In-Flight Services.

Price Mix

Premium pricing:- Use a high price where there is a uniqueness about the product or service. Such high prices are charge for luxuries

Cheap-value pricing:- This approach is used where external factors such as recession or increased competition force companies to provide 'value' products and services to retain sales

APEX fares:- Apex or advance purchase fares are special fares valid on economy class on specified sectors. They are much lower than the normal fares.

Place mixOnline 24-hour reservation Systems.

Tour Operator

Travel Agent

Promotion Mix Advertising- keep in mind the image of the country, tourist attraction, cultural heritage

Publicity- Travel agent, PRO, media people

Sales promotion- Tour operators, frontline staff

People MixReliability

Caring Attitude

Goodwill

Process mix

Reservation.

Flight Information.

Facilities at The Airport.

Baggage Handling.

Meal Service.

Flight Entertainment.

Deliver Quality Service

PHYSICAL EVIDENCEOn the ground:

Booking offices or ticket counters.

Paperwork.

Tickets.

In-flight:

Aircraft, Seating Configuration.

Good Inner-exteriors.

Ambience.

Top 10 Airline Companies Of India

S.No Site

1. Indian Airways

2. Kingfisher

3. Air India

4. Air Deccan

5. Lufthansa India Airlines

6. Air Sahara

7. IndiGo

8. Alliance Air

9.

Paramount Airways Private Limited

10. Jet Airways

Kingfisher AirlinesKingfisher Airlines

……………….The king of good times.The king of good times

Dr Vijay Mallya is the Chairman and CEO of Kingfisher Dr Vijay Mallya is the Chairman and CEO of Kingfisher AirlinesAirlines

Kingfisher Airlines Limited launched scheduled airline services Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights between BOM & BLR and on May 9, 2005 with 4 daily flights between BOM & BLR and one A-320 aircraft.one A-320 aircraft.

There are tools for mood lighting such as web chat, inseat There are tools for mood lighting such as web chat, inseat plugins for music, liveTV with 16 channels on each seatplugins for music, liveTV with 16 channels on each seat

100 percent E ticket airline100 percent E ticket airline

Introduction

• Jet Airways is an airline based in Mumbai, India.

• It is India's third largest airline.

• Jet Airways also operates two low-cost airlines, namely Jetlite (formerly Air Sahara) and Jet Airways Konnect.

Kingfisher Vs Jet Airways

• Kingfisher is one of the latest Airlines in INDIA.

• Overall growth in year 2008-09 is 37%.

• Jet Airways is the experienced airline in INDIA.

• Overall growth in year 2008-09 is 16%.

• Kingfisher acquired 46% share in Air Deccan.

• Domestic airlines poised to go international flights.

• Jet airways acquired Air Sahara in 2006.

• Jet Airways already has domestic as well as international flights.

Kingfisher Vs Jet Airways

• In a short span of 2 years its market share has become 28% including Air Deccan.

• Personal in-flight entertainment in every seat.

• Jet Airways has its market share 31% including Air Sahara.

• Average entertainment services.

• It was awarded the ‘Best New Airline Of the Year’ award.

• Already have training academy

• Jet Airways won Double Honour Travel Trade Gazette Travel award.

• They are plan to start training academy.

• Kingfisher is one of only 6 airlines in the world to have a 5 star rating

from Skytrax, along with Asian Airlines, Malaysia Airlines, Qatar Airways,

Singapore Airlines and Cathay Pacific Airways.

• They were the first Indian airline to receive the World Travel Market Global Award, the world's premier global travel event in London

• Air Transport World Award 2001 for Market Development

S.W.O.T. Analysis

• Experience exceeding 14 year • Only private airline with

international operation• Largest fleet size

• Loosing domestic market share• Scope for improvement in in-

flight service

• Untapped air cargo market• Scope in international service

and tourism

• Strong competitors• Fuel price hike• Overseas market competition

- Key Attraction - Key Problem

- Opportunities - Threats

S.W.O.T. Analysis

• First airline with full new fleet of aircraft

• Brand image with Flamboyant Personality of Vijay Mallya

• Unmatched in flight service

• Service delivery to metros and other big cities

• High ticket pricing• High attrition in top brass

• Under penetrated domestic market

• International market• Expanding tourism industry• Fleet size expansion

• Existing Operators• Fuel price hike

- Key Attraction - Key Problem

- Opportunities - Threats

COMPETITORS ANALYSIS

Advertising and Branding

• Hoardings• Brand Ambassadors• Sponsorships• Event Organization

P.E.S.T. Analysis

• License issue for international operation

• Infrastructural constraint

• Rising income level• Reduced fare but yet not

enough

• Sound Pollution• Plane hijacking

• Modernization of aircrafts• The growth of e-commerce and e-The growth of e-commerce and e-

ticketingticketing

- Political Issue - Economic Effects

- Social Effect - Technology Effect

Consumer Choice Parameters

Recommendations

• Concentrate Domestic Market

• Hire Big Brand Ambassadors

• Frequency of TV Advertisements

• Vibrant Image

• Tie-Ups