SERVICE MARKETING
ASSIGNMENT
INDIGO AIRLINES
SUSHMITA GHARAMI
UID- 2019-0608-0001-0005
SERVICE INDUSTRY
Service industry companies are involved in retail, transport, distribution, food
services, as well as other service-dominated businesses. Also called service sector,
tertiary sector of Service Sector in India today accounts for more than half of India's
GDP. The various sectors that combine together to constitute service industry in
India are:
Hotels and Restaurants
Railways
Other Transport & Storage
Communication (Post, Telecom)
Banking
Insurance
Business Services
Public Administration;
Defense
Other Services
INTRODUCTION TO AIRLINES INDUSTRY
An airline is a company that provides air transport services for traveling passengers
and freight. Airlines utilize aircraft to supply these services and may form
partnerships or alliances with other airlines for codeshare agreements, in which they
both offer and operate the same flight.
HISTORY
The first airlines
DELAG, Deutsche Luftschiffahrts-Aktiengesellschaft I was the world's first airline. It
was founded on November 16, 1909, with government assistance, and operated
airships manufactured by The Zeppelin Corporation. Its headquarters were
in Frankfurt. The first fixed-wing scheduled airline was started on January 1, 1914,
from St. Petersburg, Florida, to Tampa, Florida, operated by the St. Petersburg and
Tampa Airboat [Link] four oldest non-dirigible airlines that still exist are the
Netherlands' KLM (1919), Colombia's Avianca (1919), Australia's Qantas (1921),and
the Czech Republic's Czech Airlines (1923).
POPULAR AIRLINES IN INDIA
TYPES OF AIRLINES
IndiGo
Air India SPICE JET GO AIR
AIR ASIA
Vistara Alliance Air
Air India Express TruJet Qatar Airways
Saudi Airlines Saudia Etihad Airways
WELCOME TO INDIGO AIRLINES
Indigo is an Indian low-cost airline headquartered in Guru gram , Haryana , India. It is
the largest airline in India by passengers carried and fleet size, with a 47.5% domestic
market share as of November 2019. It is also the largest individual Asian low-cost
carrier in terms of jet fleet size and passengers carried, and the sixth largest carrier in
Asia with over 64 million passengers carried in financial year 2018–19. The airline
operates 1500 flights everyday to 87 destinations – 63 domestic and 24 international.
[7]
It has its primary hub at Indira Gandhi International Airport, Delhi.
SERVICE PROVIDED BY INDIGO
Being a low-cost carrier, IndiGo offers only economy class seating. To keep fares low,
IndiGo does not provide complimentary meals on any of its flights, though it does
have a buy-on board in-flight meal programme. No in-flight entertainment is
available. Hello 6E, the in-flight magazine published by IndiGo, is available for
passengers to read. IndiGo offers premium services, such as a pre-assigned seat,
multiple cancellations and priority check-in, to its passengers who are willing to pay a
higher [Link] September 2019, the company announced its tie up with SonyLIV on
demand video app for providing its fliers with entertainment options at the airport
and in flight.
Marketing strategy of Indigo Airlines – Indigo Marketing strategy
InterGlobe Enterprises started its operation in august 2006 with main focus on low
fares and best service in the industry. Indigo is one of the fastest expanding airlines
of India. With currently running a fleet of 110+ aircrafts including both domestic
& international and recently by taking delivery of A320neo Indigo becomes Asia’s
first and world’s 2nd A320neo operator which will enable the company to offer
affordable air transportation. Indigo has emerged as pioneer in changing the face of
the struggling aviation industry.
Segmentation, targeting, positioning in the Marketing strategy of
Indigo Airlines
SEGMENTATION
Benefit segmentation strategy is used by Indigo Airlines to cater to the
changing needs of developed & developing nations. It mainly targets people by
offering the benefits of low pricing as Air travel is perceived as an expensive
travelling option.
TARGETING
By targeting different markets judiciously considering Demand–supply constraints,
Indigo within the span of 10 years since its inception has emerged as the best player
in the industry by using differentiated targeting strategy.
POSITIONING
As far as brand image is concerned, it has positioned itself as value based carrier
providing hassle free experience of traveling.
Mission – “Providing “low fares, on-time flights and a hassle-free experience” to our
passengers.”
Vision- “Not Available”
Tagline – “Go Indigo”
CORE AND SUPPLEARY PRODUCT
CORE PRODUCT OF INDIGO
The core product of Indigo airlines is of course Air travel. The traveling is
mostly for passengers but the cargo line of Indigo airlines is growing fast as
well.
the service of transporting passengers and goods to different destinations.
Positioned efficiently on domestic and with 20 international destination and
12 codeshare destionations
SUPPLEMENTARY PRODUCT OF INDIGO
SPECIAL/DISABILITIES ASSISTANCE
MEDICAL ASSISTANCE
6E ADD ONS,PRIME &TIFFIN
BENEFIT ON PRE BOOKING
INTERNATIONAL TRAVEL GUIDE
VISA INFORMATION
BOOK A HOTEL AND GROUP BOOKING
TRACKING OF LUGGAGE AND EXTRA LUGGAGE
SUPPLEMENTARY SERVICE
FACILITATING SERVICE
ENHANCING SERVICE
FACILITATING SERVICE
Information Order Taking Billing INFLIGHT Payment
TV with Reservations (indigo Machine Display ONLINE PAYMEN,
International online booking and Invoices Electronic Cash
Satellite , Price & Website , Transfer , Cash ,
Reminders , Telephone , Mail ) , Card in Machine ,
Directions to Applications like Coupon
AIRPORT , make my trip, Redemption
Scheduled/ Service Flipkart ,
Hours Membership ,
Enhancing Services
Consultation Hospitality Safe-Keeping Exceptions
Cabin crew Trainer , Greetings , Valet, Safe Baggage provide transport
Training in Product doormen, additional Handling , Security , to and from the
Use ( Equipment staff ,existing staff, airport ,
Guidance ,safety service to the accommodation to
guidance ) clients, the cabin crew,
Transport . Cash back on
cancellation
SERVICE BLUE PRINT OF INDIGO AIRLINE
FRONT STAGE
RESERVATION RECIVING ARRIVAL AT OBTAIN
THROUGH TICKETS AIRPORT IMMIGRATION \
AGENT OR BOARDING
OTHER PASS
CHANNELS
CUSTOMS BOANDING THE ALIGHTING THE BAGGAGE
CLEARING FLIGHT : AIR CRAFT RETRIVAL
INTRACTION
WITH THE CREW,
BACK STAGE
SELECTING RECRUITMENT TRAINING AND SCRIPTING :
AIRCRAFT AND SELECTION DEVELOPMENT ROAL PLAY
DESIGNING THE ARRANGING FOR
AMBIANCE: THE TANGIBLE
TANGIBLE CUES CUES : LOCAL
NEWSPAPER ,
MAGAZINES.
Marketing MIX
Product Line
Indigo airlines have considered a service offer which will generate optimistic
impression in the fluctuating industry at present. Any product that a firm offers to
the customer should be available to the customer when they want it. The product
should be different from what the competitor offers, such an offering to the
customer will generate curiosity in the industry and the people will be ready to buy it
as it is available as per the demand. The best way to achieve such a market height is
by offering the best product that the company has with an added value. The firm is
selling low cost airline tickets at the moment and has been generating good profit
over the years. To increase the market share it is important to retain the current
customer by providing added values and offering the same to new customers as well.
Mentioned below is the new product line to attract the potential customers in form
of a discount voucher which can be used by the customer travelling the next time.
Pricing
Indigo airlines products are sold online, on the ticketing counters and through
various travel agents. Pricing is one of the most important aspects for any business as
it determines the return on investment for the stakeholders. Indigo airlines is a low
cost airlines which makes the pricing to be even more complex as compared to its
other competitors as there is not much of a margin.
As per the new plan that a discount voucher will be given to every new customer lets
create a hypothetical equation to understand the pricing of the new product.
Total number of flights by indigo airlines-118 in a day
Minimum ticket price booked one month advance- INR 3200
Total sitting capacity of A320-148 seats
Total number of travelers in a day in full booking-17464
Total income for a single business day-INR 55, 884,800
Let’s take number of first time travelers in a day- 5000
Total cost of discount vouchers- INR 16, 00,000
Percentage increase from last time in travelers 21% every month
Promotion
Indigo airlines have two key objectives in its promotional plan. They are as follows
Achieving new product recognition
Escalating sales for the business.
Promotion of indigo airlines offers will be done through various mediums such
as
Internet
Television
Journals
Magazines
Events
In schools and colleges
Word of mouth
Place
For a product to be successful it is very important to identify the right place and the
right people. According to the demographic analysis mentioned above (target
market) it is very important to attract the target market. Internet is the best tool to
do so by increasing marketing opportunities through travel websites from which
people usually buy tickets. Posting important updates and dates on such websites
can bring in a lot of brand awareness amongst the people who are willing to travel on
special offers and prices. The supply chain has to be brilliant indigo airlines is a
service provider so supply chain concept does not comes in it, however if implied
then the supply chain can be related with the optimum communication between the
travel agents and the airlines providing them with the best dates and functionality of
the airlines.
People
The people involved in the business directly and indirectly are very important for
indigo airlines as they will be providing a lot of information. Travel agents will be
providing direct business to the airlines so a proper channel should be made to
identify the strength of travel agents in a particular area. Employees of a firm are its
best resource as the human capital increases production and optimum utilization
people with high customer services skills should be hired to impress the clientele as
indigo is providing customer service. The customer should be given first hand
information as to what is the schedule for their flights in case of any delays or
complexities.
Process
The process is related to the service delivery for the customers the best policy about
it is to be honest if a flight is delayed give the exact time for the delay and the reason
even if indigo airlines has to compromise on price as customer management process
should be as transparent as possible to establish loyalty of the customers.
Physical evidence
The physical evidence is related to the impression that the customer gets the first
time they get in the plane as all the planes bought by indigo airlines are new and the
maintenance department works whole heartedly it give an impression of a very clean
environment henceforth providing a good physical evidence.
Competitor analysis of indigo
TOP COMPETITORS OR ALTERNATIVES
SpiceJet is one of IndiGo's top competitors. SpiceJet was founded in 1984, and its
headquarters is in Gurgaon, Haryana. Like IndiGo, SpiceJet also works within the
Airlines sector. SpiceJet has 12,132 fewer employees than IndiGo.
AIR ASIA
AirAsia is IndiGo's #2 rival. AirAsia was founded in 1993 in Sepang, Selangor. AirAsia
operates in the Airlines industry. AirAsia generates $2B less revenue than IndiGo.
Air India is a top competitor of IndiGo. Air India is a Government company that was
founded in New Delhi, Delhi in 1932. Air India is in the Airlines field. Air India has
4,554 more employees vs. IndiGo.
SERVICE QUALITY DIMENSIONS
ASSURANCE
RESPONSIVENESS EAMPATHY
RELIABILITY TANGIBLES
SERVICE
QUALITY
RELIABILITY :
WHEN THE AIRLINES PROMISES TO DO SOMETHING BY CERTAIN TIME IT DOSE
WHENEVER YOU HAVE PROBLEM THE CREW SHOWS A SENCIER INTREST IN
SOLVING THE PROBLEM
MAINTINING ERROR FREE RECORDS
THE AIRLINES PERFORMS THE SERVICES RIGHT THE FIRST TIME
RESPONSIVENESS
Employees of the airlines tell you exactly when services will be performed
Employees of the airline give your prompt service
Employees of the airline are always willing to help you
Employees of the airline are never too busy to respond to your requests
ASSURANCE
The behavior of cabin crew of the craft instill confidence in customers
You feel safe in your transaction with the indigo airlines
crew of the craft are consistently courteous towards you
cabin crew have the knowledge to answer your questions
EMPATHY
The INDIGO AIRLINE gives you individual attention
19. The INDIGO has operation hours convenient to all its customers
The INDIGO has employees who give your personal attention
The INDIGO has your best interests at heart
Cabin crew of the craft understand your special needs
TANGIIBILITY
The INDIGO airline has modern-looking equipment
[Link] airline has ‘physical facilities’ are visually appealing
3. The airlines employees are neat appearing and well groomed
4. Materials associated with the service (such as pamphlets or statements) are
visually appealing at the airport
