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SOMASHEKAR (10102)
Table of Contents
1. About the Company.................................................................................................................3 1.1 Fleets.....................................................................................................................................3 1.2 Destinations...........................................................................................................................3 1.3 Onboard services...................................................................................................................4 2. Growth.....................................................................................................................................4 Page 1
3.
3.1 Skills......................................................................................................................................4 3.2 Strategy.................................................................................................................................4 3.3 System...................................................................................................................................5 4. Interdependence of Marketing, Operations and Human Resource..........................................5 4.1 Operations.............................................................................................................................5 4.2 Marketing..............................................................................................................................6 4.3 Human Resource...................................................................................................................6 5. 6. 7. Service Classification..............................................................................................................6 8Ps of Service Marketing.........................................................................................................7 Customer Expectations............................................................................................................8 7.1 Adequate service...................................................................................................................8 7.2 Desired service......................................................................................................................8 8. 9. Customer perception of service quality...................................................................................8 Consumption Process...............................................................................................................9 9.1 Pre-purchase phase................................................................................................................9 9.2 Service Encounter...............................................................................................................11 9.3 Post purchase phase............................................................................................................12 9.3 Post purchase phase
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Under the guidance of Interglobe Technologies which has been a leading travel company in India since its establishment in 1989, Indigo airline has sufficient market experience to understand and react to the market with considerable maturity. Indigo Airways has brought a transparent and vibrant style with itself. Their ground staffs is well groomed and prompt in their services and ensure that the passengers know clearly the various day to day nuances like ground take off delays and other problems well in advance without any attempts to hide it from them. It helps the passenger understand the scenario better and has so far given Indigo Airlines a good brand image. Also despite being a budget carrier it has pre-allotted seating arrangements compared to the free sitting provided by the other budget carriers which creates problems of its own kind like rush for good seats and families, groups are not being able get seats together. The Indian Aviation Industry is on the verge of tremendous growth and is showing great potential with regards to the future. Indigo is well positioned to take full advantage of this scenario and likely to emerge as a major player in the aviation Industry in the future as indigo airlines grows.
1.1 Fleets
IndiGo placed an order for 100 Airbus A320 aircraft during the 2005 Paris Air Show. The total order was worth US $6 billion, one of the highest by any domestic carrier during the show.
1.2 Destinations
IndiGo operates to 26 destinations in India with 259 flights each day. It obtained a license to operate international flights after completing five years of domestic operations. On 22 August 2011, it was announced that the airline planned to begin international services on 1 September, initially on the New DelhiDubai route, but over the following weeks expanding to serve Dubai, Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai.
2. Growth
IndiGo becomes the fastest growing airline in the country. It has flown over 32 million passengers on over 223000 flights in the last 5 years. Current market share grown up to 19.6 per cent, since launch with the fleet of 42 A-320 aircraft. Orders 180 Airbus-320 aircraft for future expansion Launch maiden International flights to Singapore, Dubai & Bangkok, effective September
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3.2 Strategy
Indigo is in LCC (Low Cost Carrier) segment of the airline industry, but it didnt position itself as a low fare airline. It has positioned itself as On time airline. According to them, competitors match them in cost, but cant match them in punctuality.
3.3 System
Indigo has lowest turnaround time (30 minutes) in the airline industry which shows their commitment for position as On time airline. IndiGos On-Time Performance has been 94.6 per cent (April 2011) - best in the industry. Here, we can see that all 3 corners of triangle of service in Indigo are interrelated with each other. All are working for the companys goal (i.e. On time airline).
4.2 Marketing
As mentioned above in operation plan, IndiGo has very low turnaround time; it leads to greater customer experience in terms of on-time performance. IndiGo markets itself as an On-time airline carrier, instead of Low cost carrier. SDM Institute for Management Development Page 4
2. Service Classification
Nature of Service TANGIBLE PEOPLE POSSESSION POSSESSION
INTANGILBE
The service offered by Indigo is mainly People Processing. Here they are in direct contact with customers while providing service.
6.2 Place
IndiGo operates to 26 destinations in India with 259 flights each day. Apart from these domestic filghts, IngiGo started international services, initially on the New DelhiDubai route, and over the following weeks expanding to serve Dubai, Bangkok, Singapore, Muscat and Kathmandu from New Delhi and Mumbai.
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6.3 Process
To avail of the air service, there is online or manual booking of tickets followed by confirmation at security desks on arrival at the airport at least 2 hrs before the scheduled commencement of the journey. Besides, arranging for passenger travel post landing to the convenient destination, arrangements made if flights are delayed or rescheduled etc are some of the value additions that the airline offers to provide improved customer satisfaction.
6.5 People
A team of skilled & professionally trained pilots, ground staff, flight attendants, freight movers and packers, security personnel, management decision makers and most importantly, customers.
6.6 Promotions
IndiGo promote themselves in different ways. For example, advertisements on internet, hoardings, print ads in newspapers, media and press releases, etc.
6.8 Price
Price of IndiGo varies from the date you book ticket from the day you are going, based on yield management. Still IndiGo provides service at one of the lowest fare in the industry with compare to other competitors.
4. Customer Expectations
7.1 Adequate service
Adequate levels of service are the minimum requirements that must be fulfilled by a service: Safe journey Reaching on-time Comfortable and convenient journey experience Easy online booking Proper baggage handling
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2. Consumption Process
The consumption processes of the airline services are varies according to the way of purchase (regular, special event, holiday trips, business work etc). So, the first challenge to coordinate the consumer in the way they perceived. While purchasing service from airline service, there are many phases through which customer will pass such as pre- purchase phase, service encounter and post- purchase phase.
Needs & wants: The need of every customer is to have safety, comfort and convenience journey, while travelling. The comfort and convenience varies person to person. For example: A business person wants punctuality, holiday trip family wants good experience with less fare. So, according to their needs and wants the expectation on particular airlines service will vary. Past experience: Past experience has a greater impact on the information search process. Generally, if they had a very good experience then, they will directly opt for the same service with any information search. Expectations- Indigo is known for their punctuality. It has a simple philosophy: offer fares that are always affordable, flight that are on time, and a hassle free travel experience. Today because of the enormous competition there are chances that unknowingly customers may end up making comparisons between IndiGO and Airline service, although their positioning and the way of operation is different from others. The learning curve of customer on IndiGO over the year increase customer expectation, because of its consistency in on-time performance. Involvement Level - Customer involvement level will be very low as IndiGo has very standardized procedure of boarding and all other operations. a. External factors (Competitive) Options- Currently the many players providing low fare services, but Indigo were able to differentiate their service from competitor. Customers have many options to evaluate, but they need to maintain their operational efficiency to maintain their leadership in low fare Airlines service. Social context- IndiGo not only worked on low cost but also on operational efficiency. This make them not create a brand image as a low cost airline. Even the services are cheaper than the other services, but still they are able make service as on-time performing airlines. This gave chance for the companies as cost cutting measure. a. Firm produced factors Promotions- Promotional scheme will include discounts, article and Press release on leading Newspapers, online site, pop-ups , print ads and advertisements. Pricing- Tickets are available at extremely affordable prices which shows that indigo always make pricing strategies according to the desires of their consumers. They are able to do this by standardizing the ways to fulfill their various operations. They are able to attain with the help of their operational efficiency, which help them to differentiate from competitors. Distribution- Indigo has a three way distribution channel. One is with agents, other one is online booking and third one is directly from the airports. With the proliferation of the Internet as a distribution channel, the airlines eventually sold their interests in these Computerized Reservations Systems (CRS), which are viewed as "just another cost of SDM Institute for Management Development Page 8
distribution". Direct booking of the airline ticket lower the cost of booking, which will reduce the third party distribution commission. The site will allow customizing trips according to the customer convenience and affordability, thus making the vacation a hassle free experience. Except the most loyal frequent fliers prefer the convenience of one-stop shopping from a third-party distributor. So, three way selling is able to reach maximum number of consumer with less operating cost. a. Perceived risk Performance- There is always a performance related to airline services, but Performance risk is very low for IndiGo customers. It is one of the airline services, which has not recorded any accidents in its career. Financial- IndiGo service provides the assurance of on-time Performance with affordable fare. Even though there is financial risk but still they are able get off this with their operational and consistence in performance. Time loss- In cases of delay and cancelling, customers will have to waste their time in waiting for service or searching for other option. But Indigo gave confidence to their though their consistence in performance. Opportunity- While opting for IndiGo airline service, customers might be leaving the option of going through other airline service like kingfisher, jetlite etc So, it becomes extremely essential for them service to in timely manner as in both the above options, customer will not be facing any problem as far as time factor is concerned. But IndiGo made customer not to think of other service with their consistency in performance. Psychological- Every individual has different needs. Indigo airline service are catering to two kinds of customers- price sensitive, who just want low fare and second, who want to reach their destination on-time. So, as far as customers first kinds of customers are concerned they will be obviously satisfied with their low price. But for the second kind of customers on-time arrival and departure are two big issues. So there will be cases when customers will not be satisfied with the good service except on-time performance. But indigo reduce this risk with standardizing processes.
9.2 Service Encounter ServiceDivergence High Complexity Low Customization High Cost efficiency Low Quality (Functiional Component) (Technical Component)
Position Mapping
IndiGo has very standardized procedure and number of steps in operation is also not large, so according to that, it will come
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under Cost efficiency. Standardizing procedure helps IndiGo to cut down overheads and helps to gain more profit.
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