PRESENTED BY
WASEEM KHAN AFTAB KHAN
INDIGO AIRLINES
On Time is a Wonderful Thing
MANAGEMENT HEAD OF INDIGO AIRLINES
Aditya Ghosh : President Rahul Bhatia :MD
Company Information
Parent Company : Inter globe enterprises
Category : Indian domestic sector
Sector : Airlines
Tagline / Slogan : Go Indigo
USP : On time performance , Lowest price
Segment : Cost conscious passengers
Target Group : Lower middle class / Middle class
Positioning : Low cost , No frills
MISSION
Indigo is a very quality conscious airlines & passenger safety is
paramount to our company mission & value . “the gurgaon-based airlines
said in a statement
VISSION
Indigo to go ahead with fleet expansion
“we will be adding 12 air craft in the current year . We had a fleet of 48 aircraft in Dec. 2011 & this no. will reach 60 aircraft in Dec. 2012”. Aditya
Ghosh President
Indigo is the online profit making airlines in the country with a market in share of 19.8% Nov.
2013
COMPETITORS
REASONS WHY IndiGO IS MARKET LEADER
IndiGo managed to not only increase its passenger traffic but also its fleet size.
communicated to the flyer his basic need of getting from point A to point B on time.
IndiGo stuck with its policy of offering one class of no-frills service on a single type of plane.
Mr. Bhatia’s obsession with detail and quality:-Bhatia meets each of them individually
Turnaround time:-This is the time taken for a plane to be ready for the next flight between landing and take off
consistent low fares, regular on-time performance and minimal flight cancellations.
IndiGo only emphasises on-time performance. Indigo has continuously built around this image through its tongue-in-cheek advertisements on television and print media.
Using technology smartly Unlike manual systems used by other airlines, IndiGo planes are equipped with a digital link system for for transmission of short, simple messages between aircraft and ground stations via radio or satellite called Aircraft Communications Addressing and Reporting System (ACARS).
Advertisement Strategy
Hoardings at airports with focus on Best on time performance
Advertisement through social networking medium - Facebook , Twitter, YouTube etc..
Collaboration with Multiplexes in major cities to promote the air line and its special offers
Advertisement hoardings in multi-store yed buildings and offices
Advertisements in magazines targeting Urban population
Advertisement Strategy contd..
Sponsering fashion shows, talent hunts, New Year parties etc.
Collaboration with consumer banks, credit card companies, hotels, ticketing websites to promote special offers, discounts and cash back
Giving IndiGo promotion a local flavour by promoting in regional languages in respective sectors
Sending special offer details to frequent fliers by sms, email etc
Targeting foreigners in Tourist circuits
Promotional Strategy:-
Communication Objectives-Indigo will be promoting the below three things majorly as part of its advertising programme-On-time performance , Affordable fares and Hassle free passenger experience.
More than 15 days prior to
travel
Based fare would very on -101-500
Price Differentiation of Base fare based on day of booking prior to
Travel
Within 7 days of travel
The base fare could reach
upto4500
Within 14 days of travel
The base fare could upto reach upto
1500
HR POLICIES: An overview at IndiGo
Recruitment and selection: it can be broadly divided into airport staff and support staffs. starting from HR round Vertical interview HOD interview VP interview President
Rehiring policy:-undergo same selection procedures.
Job Rotation:-is a privilege that only the airport staff enjoy
Appraisal methods: -follow the traditional approach to appraise their employees
Referral policy: -incentives are generally limited to pilots and cabin crew referrals
Awards and incentives:-based on high performance (apart from the appraisal)
Training: -: Three types of training are provided at IndiGo technical, leadership and induction training.
Competitive advantage
customer service, high value low cost.
Specific training programmes.
Coaching for customer service and soft skills.
Functional skills training like ticketing etc.
Low cost strategy to gain competitive advantage.
Gave competitive edge over the competition in the market.
Cost leadership strategy
• Strategy is all about to gain competitive advantage over competitors by reducing costs.
• Increasing profits by reducing costs.
SWOT ANALYSIS
STRENGTHS
•Indigo has high brand awareness & brand equity.•Cost leadership : success implementation of low cost strategy.•Continuous innovation to improve on non-price factors.•Tie-up with hotels .
WEAKNESS
•Scope of product differentiation is less.•Indigo still has to establish on international destinations.•Indigo is not exploring the untapped domestic air cargo market. .
OPPOURTUNITIES
• Middle class taking to the sky• Opening up of international routes.• The flight density of indigo airlines is limited in
domestic market , hence there is a big scope to increase the flight frequency.
THREATS
• ATF (Air Turbine Fuel ) prices have increased radically since 2005.
• Foreign & private players often poach work force of competitors.
• Barriers to exit on aviation industry are high because of high capital investment.
PORTERS 5
MODELS
RIVALRY FIRMS
BUYERS
NEW ENTRANTS
SUPPLIERS
SUBSTITUTES
BARGAINING POWER OF SUPPLIERS
•Indigo fleet comprise of Airbus-A320 and the switching cost is high due to the limited number of suppliers.•The brand value of suppliers is high due to their less no. and results in higher bargaining power for them.
BARGAINING POWER OF BUYERS
•Buyers in airlines industries is large in no. and highly fragmented ,thus lowering their power with the growing Indian economy & increasing low cost carriers, buyers have increased & so have the growth opportunities.
COMPETITIVE RIVALRY
•Suppliers of aircrafts are the same ..i.e. Boeing and Airbus . Hence suppliers bargaining power is high.•Very little scope for differentiation between competitors product & services.
AVAILABLITY OF SUBSTITUTES
• Many customers use airlines as a status symbol. So, trains cannot substitute prestige . So if we consider indigo airlines , the direct substitutes are the other low cost carrier like spice jet and Go air..so in this case , threat of substitutes is high as the switching cost between low cost carrier is low.