Strategic Plan and Core

Competencies

One type of Airplane Brand New Airbus 320s and Neo Airbus
320

One type of fare Low

One type of customer services Professional

One way to deal with delays and Cancellations Honestly

Market Strategy

Be Visible go all out to project yourself as Future Market Leader

Go Local Connect with the Middle Class

Focus on your core Competencies and market them

Aim to compete with railways in the long run.

Indigo Airlines

4Ps

STP

SWOT Analysis

Competitive Strategy

Market Leader Strategy

Branding and Promotional Strategy (Business Class)

Recommendations

INDIGO
Low fares, on-time flights and a hassle-free experience

INDIAS FASTESTGROWING DOMESTIC AIRLINES

INDIAS BEST ON -TIME PERFORMANCE & LEAST FLIGHT

CANCELLATIONS

IT IS THE LARGEST AIRLINE IN INDIA IN TERMS OF PASSENGERS

CARRIED WITH A 39.8% MARKET SHARE AS OF JULY 2016

OPERATES TO 33 DESTINATIONS IN INDIA AND ABROAD WITH 373

FLIGHTS EACH DAY.

4Ps
ofofIndigo
4Ps
Indigo

Product
Place
Price
Promotio
n

Low Cost Carrier

Operates Domestic flights & a few to international
destinations
Cargo Service offered as well
Tickets can be booked online with a number of portals
Flies to 37 Destinations & is constantly trying to add
new destinations
Maintains costs & passes on the benefits to the
customers with low pricing
Constantly trying to compete with other LCCs
Very actively promotes brand through
TVC/Print/Outdoor/Digital
Offers discount coupons to passengers onboard all its
flights to encourage repeat purchases

SWOT Analysis
Strength
High brand awareness &
brand equity
Successful
implementation of low
cost strategy
Continuous innovation to
improve on non price
factors

Weakness
Product differentiation is
less
Competitors can easily
replicate offerings

Opportunity
Middle Class taking to
the skies
Opening up of
International Skies.

Threats
Plenty of new LCCs to
compete with.
Rising Labour costs.
Rising Fuel Costs.

Product Mix
Core
Transportation

Augmented
Online booking
Variety of meal
options
Pick up and drop
service
Mobile ticketing

Supplementary
Check in
Food on board
Connecting flight
Complementary
gifts
In-flight
entertainment
Frequent flier
programs

Segmentation, Targeting, Positioning &

Differentiation
Segmentation

Middle and
lower middle
Income
Group
Business
class

Targeting

Positioning

Differentiation

People who
travel by
trains & wish
to save time
Other airline
customers
People who
travel for
official
reasons

Low pricing
with no
compromise
on quality
service.
On time
performance
Hassle-free
Service

Not much
product
differentiatio
n
It provides
time saving
services like
web-check
in, kiosks
Mobile
booking App

Promotion Mix
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.

Advertising
Publicity
Airlines Advertisement The PRO, Receptionist,
Needs to Keep in Mind
Travel Agents, Media
the Image of Country,
People Are Very
The Scenic Beauty,
Important People in
Tourist Attractions,
Publicizing The
Rich Cultural Heritages
Business.
or Which Would Attract
Number of Tourists.

Sales Promotion
Word of Mouth
The Travel Agents, Tour Customer Loyalty
Operators, Frontline
Ladder .
Staffs Contribute a Lot
to The Promotion of
Airlines Business.

Promotional Activities

Hoarding at airports with focus on Best on Time performance

Advertisement through social networking medium like Facebook, Twitter, etc.

Collaboration with multiplexes in major cities to promote the airline and its offers

Hoardings in multistoried buildings and offices

Ads in magazines targeting urban population

Sponsoring fashion shows, talent hunts, new year parties, etc.

Collaboration with consumer banks, credit card companies, hotels, ticketing websites
to promote special offers, discount, cashback etc.

Promoting in regional languages in respective sectors thus giving a local flavor

Sending special offers to frequent fliers through sms, email, etc.

New Product
Premium Economy
Is between the standard
economy class and
business class cabins by
offering some of the
comforts of a premium
seat for a reasonable
price.

Features

1-2 extra inches of seat width

2-3 extra inches of seat recline

Adjustable headrests, leg rests,

or lumbar support

Laptop Power Ports

Premium Food Service

STP Premium Economy Class

Segment

Comfort Conscious
Passengers

Target

Business class / Middle Class

Position

Comfortable and hassle free

What they are

doing

What they should

continue to do

What we
recommend

Keeping costs optimal thus

fare prices low
Advertising is helping in
keeping brand top of the
mind
Have a connecting flight
between destinations
About to issue an IPO
Associate with car
rentals/hotels

Issue the IPO to add more

planes to their fleet
Continue with low &
competitive pricing
Offer coupons to
customers on board to get
repeat purchases
Increase international
destinations

Activate their loyalty

program Indigo Star Card
Increase advertising in tier
2 cities where the spends
would be less & people do
have the income
Associate with IRCTC to
offer special discounts to
people who travel to major
airports & then have to
take the train to reach
smaller towns

Price Mix Strategies

Dynamic Pricing

Value for money Pricing

Low Cost and High Quality service

No frill such as free food, drinks and lounges

"The easiest way to become a millionaire is

to start off as a billionaire and then enter
the aviation business".
Richard Branson