RELATIONSHIP MARKETING BY

JET AIRWAYS

BYAKHILESHARUN GANESHKUMAR RAJANSRAVANTHI

• Jet Airways - Indian airline based in Mumbai

• 2nd largest airline in India (in terms of market share – 25% and passenger carried)

• Operates over 3000 flights daily to 74 destinations worldwide

• Naresh Goyal – set up Jet Airways in January 1994

• No of employees – 13,177 (as on 31st March, 2011)

• Bought Air Sahara for $340 million and renamed it to JetLite

• Marketed as low cost carrier and full service airline

• Launched Jet Konnect, low cost brand on 8th May 2009

• Agreed to sell 24% stake to Etihad Airways in 2013

• Introduced 4 different slabs of discount depending on the distance to destination:• $37 – upto 750 Km• $47 – for 750 to 1000 Km• $55 – for 1000 to 1400 Km• $63 - for distance beyond 1400 Km

• Average sales of 6400 tickets per day (14 tickets per flight) at discounted rates - according to Economic Times

• Market value dropped down due to the postponed Etihad deal

• Stock fell by 18% in a period of one week

• August 2014 – announced the discontinuing of low fare brands Jet Konnect and Jet Lite

• Jet Airways – Main commercial airliner of India

• Market leader in the mindset of many frequent flyers

• “Best Domestic Airline” – rating given by the loyal members of the frequent flyers club

RELATIONSHIP MARKETING

Marketing activities that are aimed at developing and managing trusting and long-term relationships with larger customers.

OBJECTIVES OF RELATIONSHIP MARKETING

To ensure greater CUSTOMER SATISFACTION

To ensure greater CUSTOMER LOYALTY

To ensure greater CUSTOMER RETENTION

RELATIONSHIP MARKETING IN SERVICES

Maturing of services marketing

Increased recognition of potential benefits for the firm and customers

Technological advances

Failure in Relationship marketing leads to Customer Gap

CUSTOMER PYRAMID

Opportunities to cross sell.

Higher retention rates

Spread of positive W-O-M.

Long-term profitability – strategic advantage

HRM benefits

Reduced operating costs.

Relationship Marketing - Benefits for Service Organisations.

Confidence benefits• less risk of something going wrong, less anxiety.• ability to trust provider.• know what to expect.• get firm’s best service level

Social benefits• mutual recognition, known by name.• friendship, enjoyment of social aspects.

Special treatment benefits• better prices, discounts, special deals unavailable to others.• extra services.• higher priority with waits, faster service.

Relationship Marketing - Benefits for Customers.

JetPrivilege

India’s first 5 tiered loyalty programme

TIE

RELITE : SILVER,GOLD

AND PLATINUM

BLUE PLUS

BLUE

TERMINOLOGY TO KNOW

JP MILES• It is a term used for the mileage points that

guest can earn when he flies on jet airlines or their partners flight

• These points can later be redeemed for benefits and goodies based on eligibility.

TIER POINTS• Similar to JP miles but rewarded based on the

number of flights taken and the type of flight (international or domestic)

5 TIERS

BLUE• Base Tier

BLUE PLUS • After accumulation of 5 Tier Points or 7,500 Tier JP

Miles in any six month time-frame. • Blue Plus tier is reviewed only for an upgrade and the

tier will not change to Blue

ELITE : SILVER, GOLD AND PLATINUM• Silver, Gold and the exclusive Platinum – created

especially for the most frequent flyers

TIER UPGRADE

TIER RENEWAL

VALUE ADDITION TO LOYAL MEMBERS THROUGH SERVICES RENDERRED BY

JetPrivilege PARTNERSA large and strategically important list of programme partners allows Jet Privilege members special benefits

Jet Airways has strategically partnered with leading names in • Banking• Airlines• Hospitality• Car Rentals• Telecommunication Services• Publishing

EXAMPLE :

The Leela Hotels are involved in the Jet Airways Mileage programme wherein every member gets a certain number of miles per stay if he meets a certain qualifying rate.

In addition, the guest gets an early check-in at 9 am and a late check-out at 6 pm, no extra charges for double occupancy and complimentary use of steam, sauna and jacuzzi in the Health Club.

The guest is also entitled to an upgrade to the next category of room if available.

PARTNERS

• In USA, small proportion (only 12% - 15%) of customers are loyal to a single retailer, that small proportion generate between 55% - 70% of company sales,

Power clubDiva club

Classic ,Silver, Gold

Clubwest Classic and Clubwest Gold

50% sales from its over eight lakh members of ClubWest loyalty program

4 Tier

It derived 73% of the sales from its just over 2 million members and generated a total profit of 7,518 lacs.

3 Tier

Classic Silver edge Golden glow

Hypercity is also experiencing impressive sales from its over 11.8 lakh loyalty members.