AVIATION….…welcome on-board

GROUP 5

RITWIK BORTHAKUR

ANURAG BARUAH

CHANDAN VERMA

JASWANT PRASAD SINGH

DIBYENDU DEY

SIDDHARTH AGRAHARI

SIZE OF THE AVIATION MARKET:

• India's strong economic growth has boosted the market for air travel.

• Flying has become more affordable in India.

• India recorded a 25% growth in air passenger traffic in last year alone.

• Aviation has been a major opening for women, particularly in the area of flying.

• The air transport (including air freight) in India has attracted foreign direct investment (FDI) worth US$ 449.26 million from April 2000 to march 2013.

Airline Market Share (%)

Indigo 29.8

Jet Airways (India) 22.6

SpiceJet 19.6

Air India (Dom) 19.2

GoAir 8.9

Market Share For April 2013

MAJOR PLAYERS AND PRODUCTS OFFERED

Type:Government-owned

Products:Dining• Primarily Indian cuisine

• Breakfast, lunch and dinner

• No Hot Meal for Economy Class for flight duration 0-60 mins. & 61-90 mins (provided only on-demand).

Air Bazar• Exclusive Air Bazar catalogue Selection of preferred product Presenting

the order form to any AVA “Shop & Collect” counters and pay via cash/credit card or redeeming of points against any great offers.

Sky Bazar• Deals with on-board duty free products such as fragnances, toys, cosmetics, jewellery,

cigarettes, gifts and liquor .

Inflight entertainment• Personal Entertainment Appliance sets to decide what to see or hear. Variety of music,

both traditional and western or even latest films.

Type:Belongs to Wadia Group, Mumbai.Key people: Jehangir Wadia (MD), Giorgio De Roni (CEO)

Products:

Meals• Free for business class travellers.• Has to be purchased by economy class travellers.

Go-getter• It is a magazine, mainly for the advertisers, and has a reader profile of male, female,

housewives, businessmen, youngsters, etc.• It provides information starting from personal care, cuisine, tourism, etc.

In flight product sampling or brochure distribution• A product like sample bottle, sachet, discount coupon, mini brochure, tri fold brochure,

subscription forms, redeem vouchers etc can be distributed.

• These articles will be distributed by the cabin crew itself during a flight.

• Only one client at a time can do this activity hence extremely clutter free.

• Direct handover creates a lot of impact and ensures high brand recall and boost in sales.

Founder: Rakesh S. Gangwal and Rahul Bhatia, 2006Key people: Rahul Bhatia (MD), Aditya Ghosh (President)

Products:

In flight product sampling or brochure distribution

Meals

• IndiGo offers an assortment of vegetarian/non-vegetarian sandwiches, flavored cashew nuts, cookies, soft drinks and juices for sale on-board.

• Drinking water is provided free of charge on all its flights to all customers.

• Food can also be carried on board, and the allowed food items include: cold snacks, non-alcoholic drinks, snack bars and biscuits (except: messy, oily or smelly food items)

Founder: Naresh Goyal, 1st April 1992 (commenced operations from 5th May, 1993)

Products:

JetScreen • It offers a virtual feast of entertainment for travellers- from blockbuster movies to the

latest music albums, from award-winning TV shows to the best games.

In-flight Child careWashrooms are equipped with a diaper changing table. Our cabin crew can assist you to the washrooms.BassinetsWhile making a reservation, guests travelling with infants may request for seats with bassinets. Bassinet seats are available on our international flights operated by aircrafts Airbus 330 and Boeing 777-300ER.On our Boeing 777-300ER, bassinets are available in Economy (only for international flights).

Owner: Sun Group, India

Products:

SpiceRoute • in-flight entertainment magazine.

Entertainment• SpiceJet is a low cost airline, for which there is no electronic in-flight entertainment.

Meals• Both vegetarian and non-vegetarian (but has to be purchased).

SpiceJet MAX• Choice of meal and preference of seat during the time of booking can be done.

SUB-SEGMENTS

JetEscapes Holidays (Jet Airways)• It is a one stop shop for amazing worry free vacations and weekend getaways across jet

airways network.

• JetEscapes Holidays include air travel, accommodation, sightseeing and travel insurance.

JetEscapes Land Packages(Jet Airways)• On the basis of customers selection of time and type of travel, jet airways manages

holiday essentials and also special requests at preferred destination.

• JetEscapes Land Packages include transfers, accommodation, sightseeing and travel insurance.

PORTER’S FIVE FORCES MODEL

PORTER’S FIVE FORCES MODEL

THREAT OF NEW ENTRANT – LOW• Entry cost is very high• Intense competition• Slow growth rate

THREAT OF SUBSTITUTES–MODERATE• Due to existence of roadways and railways• With the increase in technology, many business dealings can be completed without even

travelling to respective places

BARGAINING POWER OF CUSTOMER – MODERATE• Lack of differentiation in terms of services provide.• Low switching costs• Price sensitivity (with emergence of online booking options)

BARGAINING POWER OF SUPPLIERS – HIGH• Limited numbers aviation fuel suppliers• Supply of aircraft spare parts are mainly from Boeing and Airbus• Labour unions – pilots, cabin crew, ground personnel, etc.

COMPETITION WITHIN THE INDUSTRY – HIGH• Price competition is intense• Increase in air travelers• High number of players

PRODUCT MIX

JET AIRWAYS

AIRLINES

JetKommect JetLite

TOURS AND TRAVEL

JetEscapes Holidays JetEscapes Land Packages

PROBABLE PRODUCT INNOVATION

“PROBABLE” INNOVATIONS IN THE NEAR FUTURE

• Installation of Wi-Fi systems

• Allowance to carry one or more digital devices

• Reading lights that does not spread onto a neighbour’s space.

• More localised temperature controls that can be operated from a personal display

CLASSIFICATION OF ADAPTORS

Adaptors are classified into five types:

• Innovators (2.5%)

• Early adopters (13.5%)

• Early majority (34%)

• Late majority (34%)

• Laggards (16%)

NEW PRODUCT LAUNCH THAT OCCURRED OR COULD BE

EXPECTED

Expected in India:• C series aircrafts, which would give 12% cost advantage compared to other

aircrafts.• A possible tie-up of SpiceJet with Singapore based low-cost airlines caleed Tiger

airways.• Wi-Fi technologies• More leg space

Expected worldwide:• Intelligent interface cabin

BRANDING STRATEGY ADOPTED BY VARIOUS

AIRLINES

INDIGO AIRLINESIndigo has adopted strategy to sustain in the current difficult environment.

• It tries to keep its cost lowest amongst the low cost airlines

• Provide passengers with best on time performance

• Clean aircraft, and high reliability

GO AIR

• To offer its passengers a consistent, quality-assured and efficient performance at affordable fares

• Best on-time performance

• Quick turnaround of aircraft (loading, unloading, re-fueling, and re-arming) that average around 25 minutes

• Delivering value to customers

INTEGRATED MARKETING COMMUNICATION EFFORTS BY

VARIOUS AIRLINES

• Corporate tie-ups( hoarding: Petrol Pumps)

• Bill Boards

• Magazines

• Events/contest/promotion

• Radio Promotion

• Internet

• Website

• In-Flight magazines

• Electronic mailer, SMS promotion

THANK YOU

THANK YOU…….for flying with us

http://www.unitedworld.edu.in/

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