Service Marketing- Three Stage Approach

Service
Marketing Plan

Prepare activity
flow chart &
consumer survey
Stage 1
Tangibility &
intangibility

Select the company

Industry profile in India
Major competitors

Stage 2

Service Mix: 7
Ps

Stage 3
Recommendatio
ns

7 Ps of service mix
Product
Price
Place
Promotion

Process service activity

flow chart(gaps)

People(staff &
customers)

Consumer behaviour
(pre purchase, purchase
& post purchase)

Process
Physical evidence

Recommendations for Service Gap on 7 Ps

Front stage & back stage service gaps

Services Marketing
Topic :- Indigo Airlines,
Stage 1 :- Tangibility & intangibility.
Stage 2 :- Service mix 7 ps.
Stage 3 :- Recommendations.
By:- Karan Bhagat
Rachit Shiv
Akshay Dhamankar
Aneesh Sheety

Indian Aviation Industry

Aviation industry in India in 9th largest industry and fastest growing
industry in the world.

The number of travellers carried by domestic airlines between January

and June 2010 increased 21.86 per cent to 25.71 million, contrasted with
21.09 million in the corresponding time span of 2009, facts and figures
supplied by diverse household airlines showed.
With Air traffic extending to augment at over 21 per cent in June, India's
largest low-cost carrier Indigo is catching up to restore Air India at the
third spot in terms of market share. According to the facts and figures
issued by the Directorate General of Civil Aviation, Indigo has expanded
its market share to 16.4 per cent, close to Air India's 16.9 per cent.
Amidst the other airlines, Jet-JetLite bagged 26.5 per cent, pursued by
Indigo at 21 per cent and Air India. amidst the LCCs, IndiGo is pursued
by SpiceJet at 13.3 per cent, Go Air at 5.8 per cent and Paramount at
0.3 per cent. The number of travellersoaring in June this year increased
to 4.57 million from 3.76 million in the identical month last year.

INDIGO AIRLINES

Founded

2005

Commenced operations

AUGUST 2006

Company slogan

ON TIME, EVERY TIME

KEY PLAYER

MR. RAHUL BHATIA , CHAIRMAN

MR.ADITYA GHOSH,MD

Website

www.goindigo.in

MARKET SHARE

27%

Executive Summary
Indias best performing Low Cost Airline in

terms of profit
Established in 2005 as a subsidary of
Interglobe Interprises
A fleet of 30 aircrafts making 170 flights daily,
across 22 destinations in India
Plans to acquire 125 new aircrafts by 2025
Plans to serve 100 cities in India, South East
Asia, Middle East and China by 2025

The IndiGo Dream

Why IndiGo ?
Emergence of the Great Indian middle class

willing to spend money for swifter travel

For the Individual on the Go,who values time
and on- timliness
Budget travel is not cheap travel, Quality of
Service
Mission Statement :
To be the best Airline in India by providing the following values
to the customer:
- Affordable Fairs
- Ontime performance
- Hasslefree Service

Indigo Airlines commenced operations on the 04th of

August 2006 with their inaugural flight from Delhi to
Imphal
Consolidating itsposition as the fastest growing airline in
.
India with 237
flights, connecting 25 destinations across
the nation, in a short span of almost five years.
January 19, 2011 India's largest low fare airline.

AWARDS AND
ACHIEVEMENTS
Skytrax Central Asia's best low-cost airline award

(2011)
Safety Excellence Award byRajiv
Gandhi International Airport(2009)

Best Domestic Low Cost Service by TAAI

(2010)
Safety Excellence Award
byBIAL(2010)

Airline wise- Market Share

Tag line-On time every

time

4Ps OF MARKETING MIX

PRODUCT

PLACE

PRICE

Design.

Distribution
Channels.

List Price.

Quality.

Discounts.

Range.

Methods of
Distribution.

Commissions.

Brand Name.

Coverage.

Surcharges.

Features.

Location.

Extras.

PROMOTIO
N
Advertising.
Sales
Promotion.
Salesmanship
.
Publicity.

SERVICE MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION

PEOPLE

PROCESS

PHYSICAL
EVIDENCE

PRODUCT MIX
Giving a Feel For The Product Inside a
Service Wrapper .
Consumers are demanding not products, or features of products
but the
benefits they will be offered.
The airline product includes of two types of services:
1. On the Ground Services.
2. In-Flight Services.

Product

Core

Supplementary

Augmented

Transportation

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

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

On the Ground Service(1/2)..

In flight Service (2/2)

PRICE MIX

Premiu
m
Pricing

Value For
Money
Pricing

Cheap
Value
Pricing

LowCost
Pricing

APEX
Fares

PLACE MIX

Online 24-hour reservation

Systems.

Consolidation.

Tour Operator/ Travel

Agent.

Affiliated with companies.

Promotion Mix
Advertising

Airlines Advertisement Needs to Keep in Mind the Image of Country, The Scenic Beauty,
Tourist Attractions, Rich Cultural Heritages or Which Would Attract Number of Tourists.

Publicity
The PRO, Receptionist, Travel Agents, Media People Are Very Important People in Publicizing
The Business.

Sales Promotion

The Travel Agents, Tour Operators, Frontline Staffs Contribute a Lot to The Promotion of
Airlines Business.

Word of Mouth
Customer Loyalty Ladder .

Promotion:
advertisements &
publicity

Sales Promotion
Travel Agencies

Front line staff

Promotional Strategy
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.

Advertisement Strategy
Hoardings at airports with focus on Best on

time performance
Advertisement through social networking
medium-Facebook,Twitter,YouTube etc
Collaboration with Multiplexes in major cities
to promote the airline and its special offers
Advertisement hoardings in multi-storeyed
buildings and offices
Advertisements in magazines targetting
Urban population

Advertisement Strategy
contd..
Sponsering fashion shows, talent hunts, New
Year parties etc
Collaboration with consumer banks, credit
card companies, hotels, ticketing websites to
promote special offers, discounts and cash
back
Giving IndiGo promotion a local flavour by
promoting in regional languages in respective
sectors
Sending special offer details to frequent fliers
by sms, email etc
Targeting foreigners in Tourist circuits

Advertisement through Social

Media

PEOPLE MIX

Competence.

Reliability.

caring Attitude.

Responsiveness.

Initiative.

Problem Solving Ability.

Goodwill.

PROCESS MIX

Reservation.

Flight Information.

Facilities at The Airport.

Baggage Handling.

Meal Service.

Flight Entertainment.

Deliver Quality Service.

Cancellations,Complaints(2/
2)

PHYSICAL EVIDENCE

On the ground:

In-flight:

Aircraft.
Seating Configuration.

Booking offices or ticket

counters.
Paperwork.

Good Inner-exteriors.
Cleanliness.

Brand Logo.
Tickets.

Uniforms.
Ambience.
Baggage.
Labels or Tag.

The IndiGo Advantage

Multiple Short haul point to point flights
Using only one type of aircraft to minimize

Maintenance overheads
Lean Operating Strategy to maximize
efficiency
Minimum turn around time, keeping Aircraft
in air for most of the time
Employee welfare and resultant loyalty
Making Low budget flying a pleasant
experience

MARKET SHARE

MARKET SHARE IN 2011

MARKET SHARE IN 2012

Consumer behaviour
Making a Reservation.
Components of the Amount Paid to
IndiGo for Travel: Basic Fare,
Surcharges and Fees.
Changes/ Cancellations/ Refunds.
Special Rules and Charges for Certain
Customers, Pets and Baggage.
Checking and Cabin Baggage.
Onboard the Aircraft

Blue Print of Indigo AIRLINES

Service Gaps flow chart

Gaps in the present service design:

GAP 1

Lack of upward communication:

The employees of Indigo airlines are dont
do upward communication with their senior
manager due to which manager can not
able to understand what happening in the
organisation.
The employees of Indigo Airlines are not
able to implement the service of serve food
to customers properly due to customers are
not happy by the service of Indigo Airlines

GAP 2
Absence of customer driven standard:
In the economy class there is problem
that Indigo airlines can not able to
provide customers driven standard and
quality of service to the customers.
In Indigo airlines the airhostess takes lot
of time to deliver the order of
customers.

GAP 3
Failure to match supply and demand:
Customers are not taking the
responsibility that to keep clean the
environment of airlines and flight,
due to which lot of cost incurred in
the cleaning the flight and
surrounding of airlines.

GAP- 4
Lack of integrated marketing
communication:
The advertising and promotional
activities of the Indigo airlines is very
low due to which there is the problem
that customers are not aware about
scheme and discount on flights.
Inadequate horizontal communication:

Service Gap
Recommendations
GAP-1
Improvement in upward communication
First of all the employees of the organisation have to encourage to do the communication with the group
member and with the manager even also manager have to appreciate the communication of the employees and
have to give feedback to the person who are doing communication with managers by that procedure we can able
to do improvement in the upward communication of Indigo Airlines
Service recovery:
The Indigo airlines have to give training to the employees to the various parameters such as
1. How to serve food to the customers
2. How to deal with the customers
3. How to meet the expectation of customers
Gap-2
Customer driven standard:
The Indigo airlines have to give training to the employees that to how to behave ethically with the customers by
the help of training programme and there implementation we can able to meet the customer driven standard
GAP-3
Demand and supply:
To meet the demand of the customers and to keep the smooth supply of goods in the flight the supply chain
management should maintain properly and to meet the demand of customers.
GAP - 4
Integrated marketing communication:
Indigo airlines should implement the intranet facility to set the horizontal communication within the
organisation due to which all problem of horizontal communication will be removed.

Final Recommendation
we recommend that IndiGo must increase its
domestic operations by starting flights
connecting to new destinations.
So using the cost leadership strategy, IndiGo
can gain competitive advantage over its
competitors as the first mover.
Once the above strategy is successful and
results in promising revenue growth, IndiGo
canuse extension to freight and chartered
services as the next objective for further
expansion

 Extension
Currently, IndiGo is concentrating only in
domestic passenger flights.
However, the freight/cargo market and
charted plane service are the areas that can
prove to be good potential market for IndiGo.
Besides, chartered flight services are an
untapped market for IndiGo.
Thus, IndiGo has a huge opportunity to
expand in both these arenas.

Thank you