Marketing Plan Airlines

8/6/2019 Marketing Plan Airlines

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ORIENTAL AIRLINES

Marketing Plan


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IndustryOverview


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The Opportunity

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

y Passenger traffic is estimated to grow at a CAGR of over 15% in the coming fewyears.

y The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestictraffic will go up by 25% to 30% till 2010 along with a surge in the internationaltraffic by 15%.

y According to UK based research firm Eyefortravel, Indian travellers are

expected to spend more than US$40 bn in2010 rising to US $50 bn by 2012.

y There would be more than 100 million passengers by 2010. Then again by2020, Indian airports will in all probability handle over 280 million passengersevery year.


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The Opportunity(contd.)

y The investment plans to the tune of US$ 9 billion has been made by theAviation Ministry for modernizing the existing airports by 2010.

y US$ 30 billion investment is envisaged till 2020 for developing the airport

infrastructure.

y More opportunities in the aviation industry in India are likely to make way forabout 69 foreign airlines from 49 countries.

y At present, private airlines account for around 75% portion of the domesticaviation market.

y The two private FSA (Full Service Airlines) Kingfisher Airlines and Jet Airwaysaccounts for 53% Market share.


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Challenges

y Intense price competition among the players

y Competitive threat from low-cost carriers

y Falling trend of Premium (Business class/1st class) traffic

y Diminishing Product differentiation

y High aviation turbine fuel (ATF) prices

y Rising labor costs and shortage of skilled labor

y Infrastructure constraint


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Strategic Framework

Objective

Core Strategy

Customer Targets Competitor Targets

The Marketing Mix

Business & Leisure travelersPan India

Kingfisher AirlinesJet Airways

Market ShareFull Service Carrier

4P


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Consumer Trend

y The internet has expanded the awareness and choice sets for theaverage consumer.

y

Study reveals that most consumers rank choices based mainly on price,schedule and no. of stops.

y For most differentiating items, the majority of surveyed travelers cannot distinguish between the network carriers and low cost careers.

Business travelers, however, will pay a premium but the premium is

extremely small.

y With choices a plenty and differentiation difficult, most travelerspurchase solely on price.


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The Roadmap

y Product (The Offering)

1.Creating the USP

Why should someone fly with our airline ?

Here we promise something more than In flightexperience which includes ground service as well.

2.Creating Value

Better Ground Service in terms of convenientCheck-in and safer Baggage handling.

AddingPersonal Touch

IntroducingPremium Economy class.

rientalOSky to Land :We Care


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The Roadmap (contd.)

y Price

Price should not be higher than Kingfisher or Indian as the market isprice sensitive.

However introduction ofPremium Economy class is expected to generatebetter revenue. Many passengers cannot afford First or Business class, but

theyd still prefer extra leg room at a little extra cost.

Cost control is important to sustain a favorable B-C framework. This canbe achieved by

Modifying the Hub & Spoke system and design the route structure toincrease the Average length of flights (to lower Cost per ASM)*

Using bigger planes (low Cost per ASM) Uniform fleet (efficient maintenance) Improving operating efficiency by Cross-utilization of labor and better

work environment.

[*NB. Cost per RPM= Cost per ASM/Load factor]


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The Roadmap (contd.)y Place

Extensive ATL campaign to build the Brandand hammer the USP

In-flight Merchandising to build relation

Aggressive digital marketing using the Internet & Social Media. E.g.

Creating a Twitter profile ofOriental airlines with a 95% personal and 5%

sales attitude where communication is more like and a person instead of acompany. The objective is to create a follower base.

Creating a Facebook Fan Page instead of a profile to have a more direct viralmarketing. This is a platform to add brand value.

Start a Blogger RelationsProgram to initiate Word ofMouth marketing 2.0

.

y Promotion

As a FSA, Agency Network is still relevant to retain the corporate clients,however, general travelers can be encouraged to do direct booking withlittle incentive in terms of facilities; a la South East way.


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Thank You

Documents

Marketing Plan Airlines