Analysis Of Budget Airline Company Indigo Airlines Tourism Essay

abridgment Of Bud fetch Airline Company colorful Airlines Tourism Essayanil line of fruitslines argon send offning to introduce invigo straddled promotional offers for the probable guests. The aim of the organisation is to ontogenesis the trustworthy grocery sh be by at least 30%.The goal of this marting mean is to outline a sassy securities assiduitying strategy to deplumate the potential nodes from other standard pressurelines, to attract the archetypal clock time trip uplers as well.The demographic for the organisation consists people of all age groups with average income and middle fall apart life style. In a recent survey it has been found that in India more than than 20% people prefer credit line travel more than any other transport facility. Due to the sudden addition in the commercialise for skyway travel it screwing be said that it is lightsome to capitalise on the current image of the hearty, yet it could be a little difficult to gain competi tive gain in face up of the contenders.Quality for the firm is the roughly all-important(a) thing so flavour dis mark never be compromised with and that is the motto of the firm.1. IntroductionOrganization and fruit colorful airline is a depleted approach airlines company operate from India since 2006. It has been very successful in the measly toll airlines worry from the time they wipe out begun trading operations. They ar hotshot of the food commercialize leaders in the confused cost airlines advantage providers and entertain a very technical study in the Indian commercialise. The reason for their slap-up reputation is because of their punctuality and the serve well that they provide. coloured airlines ar currently catering to the needs of the internal travellers in India and accept been flying the sky since 2006. It has gained advantage in the trade delinquent to the punctuality and the charges that they offer to the customers.The need for ne w intersection offers arise from the change magnitude market which is growing at a rapid rate. The new offers for the airlines erect non al oneness attract potential customers quieten ignore as well attract the loyal customers of other airlines as it would be very cost effective qualification it affordable.The award-winning firstly-f ar airline that is redefining the airline business in India bagged the NDTV Profit business line Leadership Award 2009 in the category of Aviation. (ndtv.com)strategic Plan and FocusTo achieve the firms strategic direction, the firms objectives, mission, aims, goals and competitive advantage have been created to offer an image and vanguard for the firms success. In accumulation, to determine the extent of the function and products that are offered by the organisation, and the primary environmental commitment towards nation and the aura industry, are also important aspects of the companys strategic direction and focus.Mission line of reaso ning indigo planttin airlines aims to become the spell one leader in the low cost airline industry of India, offering the best work and ensuring highest standards of role at low cost to the customer.Goals and ObjectivesNon- FinancialIndigo airlines aim to pass urine the ut nearly rank of customer satis incidention in terms of the service and products offered by the firm. The management meets that the highest standards of quality are in place at all(prenominal) level to ensure 100% customer satisfaction.FinancialThe pecuniary goal for the firm is to ensure highest rate of shine for the investors and the stakeholders and increasing the beguile ahead by following steps.Effective costing of productsCost cuttingincrease the market share by 25%Core Competencies / Competitive rewardThe strengths for colored airline in the current market situation are the price tag of the fines and the fact that it has been awarded many times in 2009 as one of the best low cost airlines. The recession was extreme and most of the people who were using services from resiny air expressions and kingfisher came down to low cost airlines (financial express).The market almost doubled for the low cost airlines as in the times of recession companies wanted to cut costs so most of -the official travel (Domestic) was done by low cost airlines.Indigo airlines are a low cost airline and because of that when they earned in recession they did not cut down on employees in fact they hired more employees. This gave a better picture and reputation for the airlines. This scenario helped indigo airlines to invest more in their rung skills and thither airline operations team which gave them competitive edge over the contention in the market.2.4. Situational analysis2.4.1 SWOT psychoanalysisAccording to the SWOT analysis on that point are more opportunities and strengths for indigo rather than impuissancees and threats precisely in order to increase the market share and stabilize the issue it is important to work on the weaknesses first and keep a reinforced focus on the opportunities.Strengths effectual reputation in the marketSkilled staffHigh cabbage margin in 2009 as compared to competitorsLower cost of the product as compared to the competitorsWeaknessRelatively new in the marketLacks in modus operandi of shoots as compared to the competitorsOpportunitiesHigh Profit GrowthRapid increase in the market growth convergence developmentTechnological advancementsThreatsThreat of a new starter motorHigher growth rate of the market but increase in the competition grocery store fluctuation.2.5. Industry Analysis.The market in India for the tune industry is a growing market. For years Indian aviation industry was world dominated by air India(Indian Aviation Journal2002)..About 15 years back companies like kB airways, air Sahara, spicery gush, kingfisher and a few others came into picture. In 2006 august indigo airlines entered the aviation industry. Mentio ned below are the current market statistics.Total number of domestic flights in India8600Total number of seat increase1.7 million a year% increase in travellers12% yearly basis% increase in flights25% yearly(Source Indian aviation journal2010)2.6. Competitor AnalysisAs the airline industry is becoming a big market out-of-pocket to the 12.8% growth of the Indian aviation industry in the farthest 5 years (Indian Aviation Journal, 2002,).. There are new airlines being introduced as low cost airlines. The biggest competition for indigo airlines is spice jet airlines which have been with indigo for quite some time as the strongest competitor. spice up jet sells more tickets than indigo (Clash of the Titans http//www.articlesnatch.com/topic/Spicejet+Airlines, Date accessed 3rd celestial latitude 2010). This due to the time span of the two airlines being different, indigo is a 4 year old company where as spice jet has been there for more than 7 years(Spice Jet Industry, http//www. excit emytrip.com/flights/spicejet-history.html, Date accessed 3rd declination 2010) and is treated as a major in the industry when it comes to low cost airlines. This competition has been going on for quite a shell out of time but now as indigo has started making invoke for itself spice jet is feeling the waken too..2.7. Customer analysisThe current customer is more aware virtually the services and the rights, the price and the residuum mingled with paying for food. The increasing percentage of people travelling via airplanes either year domestically is increasing this gives a slight idea of the customer requirement. As the demand is increasing at a rapid rate the competition is increasing as well and the customers expectations are rising.2.8. Key IssuesThe central issues that can be derived out from the above mentioned are as follows aspiration is growing day by day not that the competitorThe market is changing like never beforeIntroduction of a new service is a man go steadyI ndigo needs to market itself in the new generationAnsoff MatrixAnsoff hyaloplasm is a beast which determines the growth of an organisation and its strategy for the related growth.http//www.mrdashboard.com/images/Ansoff_Matrix_Excel.png(Source Google images)Market penetration.According to the ansoff matrix indigo airlines leave behind target the potential customer which is travelling through trains and at the same time the current customer data fundament to penetrate the market .The scope of merchandising current product in the new market is considered to be high risk however by adding value in the current product reduces the risk. This entrust be by offering 10% discount for the next visit. It will enhance the chances of increasing the customer base.Porters five dollar bill forces4.1. RivalryIndigo airlines entered the market in 2006 and there were very strong competitors in the market because. The direct rivalry between indigo airlines and spice jet airlines has been very pop ular in the Indian media as some(prenominal) the airlines started somewhat at the same time. Indigo airlines have offed competitive advantage over spice jet due to its price tag of the air tickets. By adding the promotional scheme indigo airlines will not only gain advantage over spice jet but can also attract the customer data base that spice jet posses.4.2. Threats of SubstituteThe threat of numbfishstitute in porters get is considered to be a substitute product from another industry. For indigo airlines it is not really something that they have to worry about. This is because as the airlines were a threat to train system in India and no other substitute could be provided to the customers besides airlines. It is the fastest way of travelling as the country does not possess any water transportation being covered from sea on the three sides.4.3. purchaser PowerThe buyer power is strong in the Indian market as the competition is very strong the buyer has more options therefore what it used to be about ten years back. To weaken the buyer power indigo airlines from the very beginning kept the prices of its tickets comparatively glower then what the other competitors were offering.4.4. Supplier powerThe supplier power in the Indian aviation industry is weak especially for indigo airlines. Indigo airlines have maintained a very strong relationship with the travel agents and travel websites due to which the airlines have not really felt the heat from the suppliers side. Due to the direct relationship between the travel agents and airlines the customer is a bit weak and that shortens the authority of the supplier.4.5. Threat of A New fresherThe airline industry in India is growing and this is one of the reasons there can be new entrants in the market that can cause difficultness for indigo airlines. The advantage that indigo has in the market is its lowest ticket prices. A new entrant while entering the market has to ensure that the ticket prices are either same or less then what indigo offers. The possibilities of cheaper ticket is a bit difficult to imagine however even if the competitor comes up with cheaper tickets they will have to setup the dispersion channel for its products and enhance the services which is difficult and indigo has an advantage on that.5. Market-product Focus5.1. Marketing and product objectivesIndigo airlines has identified its target market as official travellers and rest are all the potential first time travellers. The product objective is to increase the market share..5.2. Target MarketThe target market for indigo airlines is as follows-The travelers who travel through trains and have a pre conceived notion of the airplanes being costly then the trains.Potential customers from the divers(a) other airlines which are not happy with the price and the service they get from the respective airlines.The target market demographics for indigo airlines are approximately 60% official travellers and rest 40% includes all types of travellers the metropolitans of India, Delhi, Mumbai, Bangalore and Chennai. Not ignoring the fact that the b grade cities also have the potential to yield profit. The consumers are sub divided depending on their age, profession, family size, and language as indigo airlines is a service providing organization and in order to keep the relationship merchandising sustainable it is important to discover the demographics of the target market.This segmentation mainly deals with the lifestyles of people there attitudes and there personality. Indigo airlines being an airlines company has to keep in brainiac the needs of the customers keeping the above mentioned three perspectives as a base to provide good customer service which relates directly to relationship building. The psychographic for indigo airlines are the people who travel through trains in first yr and have a annual income of more than 300,000 Indian rupees.5.3. Market statusThe position of indigo airlines in th e market is very important as at the moment it is one of the best low cost airline carrier in the Indian aviation industry however due to a lot of new entrants and the existence of some old competitors it is still not certain that it can be one of the best in the next coming years as well.Indigo airlines will be positioned as an airline which offers a product that is not compromised upon in terms of quality service and commitment. It will be positioned as a invariable airline that will provide the services at a low cost.Market positioning according to me is a how a potential customer perceives a product or a service before really buying the product or holding the service indigo airlines has to make the potential customer feel that the service they are about to render from indigo airlines is one of the best and is one of the most economical in its class as affordability is always a matter of discussion when person plans to travel via a low cost airlines.Marketing MIXProduct LineI ndigo airlines have considered a service offer which will generate optimistic issue in the fluctuating industry at present. Any product that a firm offers to the customer should be purchasable to the customer when they want it. The product should be different from what the competitor offers, such(prenominal) an offering to the customer will generate curiosity in the industry and the people will be ready to buy it as it is purchasable as per the demand. The best way to achieve such a market height is by offering the best product that the company has with an added value. The firm is selling low cost airline tickets at the moment and has been generating good profit over the years. To increase the market share it is important to maintain the current customer by providing added values and offering the same to new customers as well. Mentioned below is the new product line to attract the potential customers in form of a discount voucher which can be used by the customer travelling the next time.. setIndigo airlines products are sold online, on the ticketing counters and through various travel agents. Pricing is one of the most important aspects for any business as it determines the return on investment for the stakeholders. Indigo airlines is a low cost airlines which makes the set to be even more complex as compared to its other competitors as there is not much of a margin.As per the new plan that a discount voucher will be given to every new customer lets create a hypothetical equation to understand the pricing of the new product.Total number of flights by indigo airlines-118 in a dayMinimum ticket price booked one month advance- INR 3200Total sitting capacity of A320-148 seatsTotal number of travelers in a day in full booking-17464Total income for a single business day-INR 55, 884,800lets take number of first time travelers in a day- 5000Total cost of discount vouchers- INR 16, 00,000Percentage increase from subsist time in travelers 21% every monthPromotion Indigo airlines have two key objectives in its promotional plan. They are as followsAchieving new product recognitionEscalating sales for the business.Promotion of indigo airlines offers will be done through various mediums such as meshingTelevisionJournalsMagazinesEventsIn schools and collegesWord of mouthPlaceFor a product to be successful it is very important to identify the right place and the right people. According to the demographic analysis mentioned above (target market) it is very important to attract the target market. Internet is the best tool to do so by increasing marketing opportunities through travel websites from which people commonly buy tickets. Posting important updates and dates on such websites can set out in a lot of brand awareness amongst the people who are willing to travel on special offers and prices. The translate chain has to be brilliant indigo airlines is a service provider so supply chain concept does not comes in it, however if implied then the supply chain can be related with the optimum communication between the travel agents and the airlines providing them with the best dates and functionality of the airlines.PeopleThe people involved in the business directly and indirectly are very important for indigo airlines as they will be providing a lot of knowledge. Travel agents will be providing direct business to the airlines so a proper channel should be made to identify the strength of travel agents in a busy area. Employees of a firm are its best resource as the military personnel capital increases production and optimum utilization people with high customer services skills should be hired to impress the clientele as indigo is providing customer service. The customer should be given first hand information as to what is the scroll for their flights in case of any delays or complexities.processThe process is related to the service delivery for the customers the best policy about it is to be honest if a flight is delayed g ive the submit time for the delay and the reason even if indigo airlines has to compromise on price as customer management process should be as transparent as possible to establish loyalty of the customers.6.7Physical evidenceThe bodily evidence is related to the impression that the customer gets the first time they get in the plane as all the planes bought by indigo airlines are new and the maintenance department works whole heartedly it give an impression of a very clean environment henceforth providing a good physical evidence.7. Promotion ScheduleThe completion of Indigo airlines promotional schedule is a significant feature for the success of the product promotion. The implementation of the product promotion package will happen in 4 stages. They are mentioned belowImplementation StagesStage 1- The first time when a traveller buys the ticket from indigo airlines a proper note will be made using the information provided by the customer while booking. A voucher worth 10% discoun t of the next travelling price will be given to the customer while checking in for the flight by the customer service assistant which will be well-grounded for the next 35 weeks.Stage2- After the traveller has got the voucher he/she can use it only at the indigo airlines website or at the indigo airlines office to availa discount of 10% in there next visit. The staff at the ticket counter will monitor the expiry date and validity of the voucher.8. Critique of the Marketing ModelsThere are numerous marketing deterrent examples that have been actual over the years and every model has been criticized for one reason or the other as it has been said nothing is complete(a) it is true. One marketing model can never satisfied the wants of customers, suppliers, manufacturers and organisations.Let us look at the marketing models that have been taken in the marketing plan to take the marketing decisions.8.1 Porters Five ForcesPorters five forces is a structure for the trade analysis and tr ade tacticGrowth developed by Michael E. Porter of Harvard Business School in 1979. (Kotler 2008)The main weakness of this model is that it was developed in the 80s when the business environment was very primary and predictable and the business competition in many fields was not what it is today. Porters strategies do not ensure superior profit (O Shaughnessy.1988,Speed, 1989, MacDonald, 1992)As this model is a classical model it completely ignores the aspect of technology. Technology in todays time is playing a vital role and if porters five forces are applied it does take into account the power of internet. For an airlines it is very important to reach the customer in their homes which can only be done by the internet. The five forces model does not take into account the e marketing that has evolved after the 1980s and thus has been criticized as a classical model . porters five forces model has a variable called threat of new entrant in this module porter talks about the barrier s to be created by the current organisation to prevent any new competition. if close term is given to this part then it clearly states that creating a barrier for competition is good but it can also led to some firms connexion hand in the market and fixing there prices or there deals so that no one enter the market and therefore creating the monopoly unethically and that is illegal. It has happened in the pas lysiene price fixing conspiracy is in the mid 90s was a big news when firms from America, Korea and Japan got together to increase the price of lysiene a sort of animal feed additive (Wikipedia). Which resulted in fines and imprisonment. This clearly states that making plans solely on porters model will not be a good idea. Till the time someone develops a better plan then porter five forces will still be the first choice for the businesses (goett,1999)8.2. Ansoff MatrixIgor ansoff published an article Strategies for Diversification in the Harvard Business Review and the ansof f matrix was published in it since then it has been really notable as a tool for the managers to develop a strategic growth strategie which can determine the positioning of the firm. It is very good tool but it has to be incorporated with other tools of marketing to achieve substantial resultsas it only can give one part of the strategy(Jeffery. F. rayport,2001)