MARKETING METRICS: Indian Civil Aviation

MADE BY: Abhinav Srivastava 10MBI1002

What is Metrics?
A metric is a measuring system that quantifies a trend, dynamic or characteristic. In virtually all disciplines, practitioners use metrics to explain phenomena, diagnose causes, share findings, and project the results of future events. They make it possible to compare observations across regions and time periods. They facilitate understanding and collaboration. Marketing Metrics: Opportunities, Performance & Accountability

Aviation sector
The sector deals with the transport of passenger and cargo from one place to another, using the aerial route.

Air travel remains a large and growing industry.

Facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries Vision 2020 statement predicts handling 280 million customers by 2020. 75% of the market share is owned by the private sector. India is the 9th largest aviation market in the world.

Players in Aviation Industry

The players in aviation industry can be categorized in three groups:

Public players: Air India Private players: Jet Airways, Kingfisher

Airlines, Spice Jet, Air Deccan

Start-Up players: Omega Air, Magic Air,

Premier Star Air & MDLR Airlines.

Consumer Choice Parameters

JET AIRWAYS: Joy Of Flying

Total passengers who travelled in Indian Aviation Sector in September 2012= 41.88 lakhs Passengers who travelled by JET AIRWAYS in September 2012= 7.66 lakhs Market Share of JET AIRWAYS= (7.66/41.88)*100 = 18.3% Market leader is INDIGO AIRLINES with 27.3% market share..

JET AIRWAYS: Joy Of Flying

Total Aircrafts owned by full service carriers= 375 Total Aircrafts owned by JET AIRWAYS= 96 Aircraft Share in Indian Aviation Sector for JET AIRWAYS= (96/375)*100 = 25.6% Maximum Aircraft Share is of AIR INDIA with 31.73% i.e. 119 aircrafts.

Profitability Ratio
It gives us the earnings available to the investors and owners of the company after taking into account all the expenses incurred during the business operations. Profitability(%)= Profit after Tax(PAT)/Net Sales

Returns on Assets (ROA)

An indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. ROA= Profits before interest, depreciation & tax/ Total assets

Returns on Sales (ROS)

A ratio widely used to evaluate a company's operational efficiency. ROS is also known as a firm's operating profit margin. ROS= Profits before interest, depreciation & tax/ Sales

HERFINDAHL INDEX
It measures the market concentration of an industry's largest firms in order to determine if the industry is competitive or nearing monopoly. It is calculated by squaring the market share for each firm and then summing the squares.

BRAND DEVELOPMENT INDEX (BDI)

It quantifies how well a brand is performing with its specific group of customers, compared with its average performance among all consumers.

CATEGORY DEVELOPMENT INDEX (CDI)

Ratio of the sales of a product category to the population of a specific area. When combined with Brand Development Index, it can be helpful in estimating the growth potential of a brand or category.

Market Share Of Domestic Airlines in 2011