PRESENTED BY

WASEEM KHAN AFTAB KHAN

INDIGO AIRLINES

On Time is a Wonderful Thing

MANAGEMENT HEAD OF INDIGO AIRLINES

Aditya Ghosh : President Rahul Bhatia :MD

Company Information

Parent Company : Inter globe enterprises

Category : Indian domestic sector

Sector : Airlines

Tagline / Slogan : Go Indigo

USP : On time performance , Lowest price

Segment : Cost conscious passengers

Target Group : Lower middle class / Middle class

Positioning : Low cost , No frills

MISSION

Indigo is a very quality conscious airlines & passenger safety is

paramount to our company mission & value . “the gurgaon-based airlines

said in a statement

VISSION

Indigo to go ahead with fleet expansion

“we will be adding 12 air craft in the current year . We had a fleet of 48 aircraft in Dec. 2011 & this no. will reach 60 aircraft in Dec. 2012”. Aditya

Ghosh President

Indigo is the online profit making airlines in the country with a market in share of 19.8% Nov.

2013

COMPETITORS

REASONS WHY IndiGO IS MARKET LEADER

IndiGo managed to not only increase its passenger traffic but also its fleet size.

communicated to the flyer his basic need of getting from point A to point B on time.

IndiGo stuck with its policy of offering one class of no-frills service on a single type of plane.

Mr. Bhatia’s obsession with detail and quality:-Bhatia meets each of them individually

Turnaround time:-This is the time taken for a plane to be ready for the next flight between landing and take off

consistent low fares, regular on-time performance and minimal flight cancellations.

IndiGo only emphasises on-time performance. Indigo has continuously built around this image through its tongue-in-cheek advertisements on television and print media.

Using technology smartly Unlike manual systems used by other airlines, IndiGo planes are equipped with a digital link system for for transmission of short, simple messages between aircraft and ground stations via radio or satellite called Aircraft Communications Addressing and Reporting System (ACARS).

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 air line and its special offers

Advertisement hoardings in multi-store yed buildings and offices

Advertisements in magazines targeting 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

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.

More than 15 days prior to

travel

Based fare would very on -101-500

Price Differentiation of Base fare based on day of booking prior to

Travel

Within 7 days of travel

The base fare could reach

upto4500

Within 14 days of travel

The base fare could upto reach upto

1500

HR POLICIES: An overview at IndiGo

Recruitment and selection: it can be broadly divided into airport staff and support staffs. starting from HR round Vertical interview HOD interview VP interview President

Rehiring policy:-undergo same selection procedures.

Job Rotation:-is a privilege that only the airport staff enjoy

Appraisal methods: -follow the traditional approach to appraise their employees

Referral policy: -incentives are generally limited to pilots and cabin crew referrals

Awards and incentives:-based on high performance (apart from the appraisal)

Training: -: Three types of training are provided at IndiGo technical, leadership and induction training.

Competitive advantage

customer service, high value low cost.

Specific training programmes.

Coaching for customer service and soft skills.

Functional skills training like ticketing etc.

Low cost strategy to gain competitive advantage.

Gave competitive edge over the competition in the market.

Cost leadership strategy

• Strategy is all about to gain competitive advantage over competitors by reducing costs.

• Increasing profits by reducing costs.

SWOT ANALYSIS

STRENGTHS

•Indigo has high brand awareness & brand equity.•Cost leadership : success implementation of low cost strategy.•Continuous innovation to improve on non-price factors.•Tie-up with hotels .

WEAKNESS

•Scope of product differentiation is less.•Indigo still has to establish on international destinations.•Indigo is not exploring the untapped domestic air cargo market. .

OPPOURTUNITIES

• Middle class taking to the sky• Opening up of international routes.• The flight density of indigo airlines is limited in

domestic market , hence there is a big scope to increase the flight frequency.

THREATS

• ATF (Air Turbine Fuel ) prices have increased radically since 2005.

• Foreign & private players often poach work force of competitors.

• Barriers to exit on aviation industry are high because of high capital investment.

PORTERS 5

MODELS

RIVALRY FIRMS

BUYERS

NEW ENTRANTS

SUPPLIERS

SUBSTITUTES

BARGAINING POWER OF SUPPLIERS

•Indigo fleet comprise of Airbus-A320 and the switching cost is high due to the limited number of suppliers.•The brand value of suppliers is high due to their less no. and results in higher bargaining power for them.

BARGAINING POWER OF BUYERS

•Buyers in airlines industries is large in no. and highly fragmented ,thus lowering their power with the growing Indian economy & increasing low cost carriers, buyers have increased & so have the growth opportunities.

COMPETITIVE RIVALRY

•Suppliers of aircrafts are the same ..i.e. Boeing and Airbus . Hence suppliers bargaining power is high.•Very little scope for differentiation between competitors product & services.

AVAILABLITY OF SUBSTITUTES

• Many customers use airlines as a status symbol. So, trains cannot substitute prestige . So if we consider indigo airlines , the direct substitutes are the other low cost carrier like spice jet and Go air..so in this case , threat of substitutes is high as the switching cost between low cost carrier is low.