MARKETING STRATEGIES OF SPICE JET FOR ATTRACTING FDI

By: Akhil Jain Arth Vyas Kingshuk Bangabash

Prasanna Narayanan

INTRODUCTION OF COMPANY

Spice Jet is a low-cost airline headquartered in Gurgaon, India Began services on 23 May 2005 Today, it is India's second-largest low-cost airline in terms of market share

Spice Jet was voted as the best low-cost airline in South Asia and Central Asia region by Skytrax in 2007

MARKETING VISION
Spicejet airlines India is a low cost airline with fares often bordering 1st AC rates of Indian railways Vision is to make Spice jet the number one low cost airline in India

GOALS
To become Indias most preferred low cost airline, by providing the lowest air fares and the highest consumer value to the price sensitive consumers of the country.

VISION
To ensure that flying is no longer confined to CEOs and business travellers, but affordable to everyone

MISSION
To become Indias preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers

MARKETING GOALS
Plan to induct nine more aircrafts by 2014 Target to raise revenue USD 400million to USD 550 million in next 12 months To have five more hubs in Chennai, Ahmedabad, Bangalore, Kolkata and Delhi Aims to compete with Indian Railways AC segment Aims at future fleet expansion to increase market share

MARKETING STRATEGIES
Word of mouth marketing, supported by print and internet media. Introduction of on board merchandise such as goggles, airplane models, perfumes, caps and watches Improvement of quality of service.

CHALLENGES
Small fleet structure Small load efficiency compared to Air Deccan Competition with new entrants Market share of East-central India High attrition rate

IDEAL CUSTOMER
Budget airlines are popular with: Young tourists
Backpackers

College kids
Travelers who want the cheapest possible route

MARKET DESCRIPTION
Age group 21 and above Occupation Passengers Income group above than 1,50,000Per annum Have grown children and, often, grandchildren as well Professional (white collar) occupations For business man

SWOT ANALYSIS OF SPICE JET

Strength Weakness Entered with Rs. 99 fares for first A fixed-cost perishable 99 days product Offering low everyday spicy fares Limited sector (concentrated at only north west- south Fleet of 6 Boeing 737-800 with India) 189 Seats Small load efficiency compare to Air deccan SWOT ANALYSIS

Opportunities: Future Fleet Expansion will increase its Market Share Attractive fares and up to date Quality service will generate a huge customer base

Threats: High Attrition Rate Killer competition Fare war has broken out across Indian skies

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SEVEN Ps OF SPICEJET
PRODUCT Core product: Transportation
Supplementary product: Online check in services

In-flight refreshment: Provides snacks and beverages in

selected longer duration flights, but you have to pay for them in cash on the flight.

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SEVEN Ps OF SPICEJET
PROMOTION Word-of-mouth marketing Print ads in newspapers and magazines TV commercials Outdoor mix is has concentrated primarily on hoardings, railway platforms, airports, shopping malls PRICE Spice Jet is India's 'best low cost airline. They have intelligently mixed low-priced ticket prices with decent on board services to satisfy frequent travellers. Innovative pricing has also been central to the company's success.

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SEVEN Ps OF SPICEJET
PEOPLE At Spice jet, people is the most important p. The airhostesses at spice jet come in contact with the customers in the process of providing the service, while the cock-pit crew are employees who contribute to the service product but do not come in direct contact with the customers. At spice jet the front line staff play a critical role in ensuring that the service is delivered to the customers as promised.

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SEVEN Ps OF SPICEJET
PLACE: Domestic and Some Asian countries in urban city. PHYSICAL EVIDENCE At spice jet, the aircraft by itself would make up the physical evidence in this service. Spice Jet's aircraft are configured in a single economy class having 189 seats, which is among the highest in the industry . PROCESS Purchasing process at spice jet begins at the time of reservation goes on to the confirmation of seats.

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