Airlines Industry

CREW MEMBERS

• Saurbh Arora• Punit Bharti• Ramandeep Singh• Jasjeet singh• Siquedar Amanul

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

Major Players (Market Share)

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 MixPremium 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 OperatorTravel Agent

People Mix

ReliabilityCaring AttitudeGoodwill

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

Process mixReservation.

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.

GAP MODEL

Service Quality Dimension (RATER)

InteractionQuality

InteractionQuality

PhysicalEnvironment

Quality

PhysicalEnvironment

Quality

OutcomeQuality

OutcomeQuality

ServiceQuality

ServiceQuality

ProductQuality

ProductQuality

PricePrice

CustomerSatisfaction

CustomerSatisfaction

Situationalfactors

Situationalfactors

Personal Factors

Personal Factors

Reliability

Assurance

Tangibles

Empathy

Respons-ivness

SWOT analysis

STRENGTHS:

• Liberal Environment

• Modern Fleet

• High Quality

• Economic Growth

• Growing Tourism

• THREATS:• Middle east aviation

• Terrorism

WEAKNESSESS:• Airport Infrastructure• Airways Infrastructure• National Carrier• Deep Pockets• High Cost Structure• Skilled Resources

• A large & growing potential market

• Developing alternative revenue streams

– Air cargo operations

– Airframe, engine & component overhaul

– Ground handling

– Training

– Leveraging the internet

• Access to new markets

Opportunities