SUBMITTED BY:

SHUBHADIP BISWAS

OPPORTUNITY ANALYSIS

MARKET ATTRACTIVENESS

MACRO and MICRO LEVEL

MACRO LEVEL

Repealing restrictive air corporation act & liberalization of aircustomer

Escalating disposable income of bargaining middle class

Indian customer-values his money

Growing GDP of India

Change in technology-underground fiber optic and networking via

hubs

MICRO LEVEL

Need of affordable air fare for Indian traveler-which Air Deccan is

offering

Getting 5% of 15 million long distance traveler would be great

achieve-targeting AC1,AC2 tier travelers

People of smaller town have the capacity but not have choice

OPPORTUNITY ANALYSIS

INDUSTRY DOMAINS

MACRO LEVEL and MICRO LEVEL

MACRO LEVEL

New entrants- Spicejet, Kingfisher, Indigo

Substitutes-traveling in AC1,AC2 tier

Rivalry-presence of big players- AirIndia, Jet, Sahara—better brandimage and luxurious travel and new players—lowest airfare withhighest consumer value

Bargaining power of buyer-lower air price

Bargaining power of suppliers- low; manufacture of aircrafts- Avionsde transport

MICRO LEVEL Cost leadership

Wide network coverage-38 destinations

Fast movers advantage and implementation of “Dyna fare”

Tie up with HCL-convenient network through E-ticketing

Ticket distribution structure-HP outlets, Reliance web world

Image-”people’s airlines”

Team of experts from the world’s best low cost carriers.

OPPORTUNITY ANALYSIS

TEAM DOMAINS

MISSION, ASPIRATION,

PROPENSITY OF RISK

ABILITY TO EXECUTE

CSFs

CONNCTEDNESS

UP,DOWN

ACROSS VALUE

CHAIN

DEMISTIFY AIR TRAVEL IN

INDIA BY PROVIDING

RELIABLE,LOW COST AIR

TRAVEL TO THE COMMON

MAN BY CONSTANTLY

DRIVING DOWN AIR FARES

AS AN ONGOING MISSION

COST LEADERSHIP---

EFFICIENT COST

CUTTING

STRATEGIES

AIR DECCAN GOLD

CARD-TRAVEL AGENT

AIMED—600 FLIGHTS

EVERYDAY BY 2009

WIDE NETWORK

COVERAGE

TICKET DISRTIBUTION—E

TICKETING,MOBILE

TICKETING

TARGETED TO FLY 4.4

MILLION PASSENGERS WITH

REVENUE OF 1,150 CRORE—

IN FY 2005-06

E-TICKETING STRATEGY SPECIAL TRAINING FOR

EMPLOYEES

SEGMENTATION Demographic—common people of India— who does fly? Who can fly?

Geographic- market of India specially smaller townsTARGETING

Rising middle class—targeting LCC marketPOSITIONING

Cost leadership strategy-niche marketing strategy & growth marketing strategy

As a “people’s airlines”

How is air deccan able to create value for its customers? By cost leadership-offering lowest air fare— “Dyna fare”

Prospector-expanding in new market

Image as “people’s airlines”—movie "old man in de sky”

Brand ambassador-Mr. citizen

Unreserved seating . encouraging customer to board easily and quickly

Wide network coverage—connectivity

Convenience-convenient network of ticket distribution

Air Deccan Gold Card- travel agent card

What are possible challenges that Air Deccan fears? Threat of new entrants—kingfisher, Spicejet, Indigo

Lack of government support

Weak economical condition of company-Looming price war waged bybig operators

Total market share in air service sector was only-17%

Lack of brand awareness

Need of investment-future scenario after IPO

STP

ANALYSIS