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Introduction Consumer Behaviour Marketing Methodologies Marketing Mix Competitive Analysis Porter’s Five Force Framework Analysis STP Analysis Top 5 Players
Typology: Exercises
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1. Introduction
The civil aviation industry in India has emerged as one of the fastest growing industries in the country during the last three years. India is currently considered the third largest domestic civil aviation market in the world. India is expected to become the world’s largest domestic civil aviation market in the next 10 to 15 years. India is also expected to displace the UK to become the third largest air passenger* market by
2. Consumer Behaviour
Although flight prices have come down over the years, things we took for granted now come at an additional fee. While airlines and passengers battle over revenue extras versus bargains, the real opportunity is in creating new sources of revenue that leave customers feeling delighted, not taken. Behavioural economics can guide us. Searching for and purchasing tickets, checking-in and even tagging luggage are now all digital experiences – convenient, accessible, and speedy for the passenger and cost- effective for the airline. As importantly, there are many ways that consumers can walk away from their flight experiences feeling travel savvy and gratified.
3. Marketing Methodologies
India aims to become 3rd largest aviation market in the world by 2020 and aviation industry is going through the phase of fast expansion driven by several factors like LCC (Low cost carriers), advanced IT enabled & modern airports. Companies like JetAirways, Spice Jet, Indigo, Air India etc. are driving the growth of the market by implementing some of these.
4. Marketing Mix
Marketing Mix of Air India analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Air India marketing strategy.
Product: The core product of Aviation is of course Air travel. This is their core product in their marketing mix. They also provide supplementary services like web check in, food on board etc. They have a variety of meal options for their consumers. For consumer’s convenience and comfort Airlines also provides online booking, mobile ticketing and pick and drop services. Aviation also provides cargo services are also catching up very fast. They take very good care of the shipments. They have special packaging for fragile packages which come under priority. They do not accept perishable shipments like seafood, dairy, plants, meat. Indigo Airlines also carries postal mails like speed post, ordinary mail and Army mail.
Price: Aviation is at present in a very competitive segment in India. Price is what gives Airlines its edge over other competitors; therefore it is an important component of it marketing mix. When consumers compare prices they find the best Airlines which provide them with low fares and quality,
on time services. Airlines cost control department has a huge role to play in this. It makes optimal use of technology to determine the petrol needed to travel from one place to another. Aviation turbine fuel prices constitute about 40% of the operating cost of an airline. Airlines save huge cost on this very expensive resource. It provides optional services of meals which are prepaid. The consumers have to buy their meals in case they want to have anything on board. With these little knacks it controls its cost.
Place: Aviation has always made efforts to make its presence feel everywhere and its facilities can be availed conveniently. The place strategy in the marketing mix of Airways covers not only its domestic and international destinations, but also customer facing offices, desks etc. Airways have got customer helpdesks in all operating airports and a dedicated ticket counter for instant ticket purchase and cancellations. Its website is well maintained and it offers tickets at lowest prices inclusive of all taxes over there. Once the Air tickets are booked either through its own sites or other ticketing sites, a mail and confirmation of booking is sent along with the PNR.
Promotion: Aviation industry has an integrated marketing campaign focusing on TV, Digital, Print, Outdoor, Cinema and Airports for its promotion. The aim of the promotions is to increase the user base and also rope in new customers. The promotional strategy in the marketing mix of Airways covers the entire spectrum of marketing and advertising. Airlines also address issues and engage with customers on social media like Facebook, twitter. Airlines also promotes it’s add on services like Reward Points etc. on its website and its mobile app.
5. Competitive Analysis
Porter’s Five Force Framework Analysis
Threat of Substitutes: Threat remains low in this sector also as no other means of transport is as swift and convenient as airlines It saves time
Threat of New Entrants: Threat remains low because of the nature of the industry (Regulatory hurdles, Capital- intensive) Air Asia India has been granted DGCA approval (Price War) Air Asia started services to Bagdogra and Srinagar from Delhi.
Bargaining Power of Suppliers: Bargaining power of suppliers remain high as there are only few fuel and aircraft suppliers Talent pool of pilots, engineers and other staff is also limited
Bargaining Power of Buyers: Bargaining power of customers remains low as the demand for low cost air travel is quite high