Services Presentation (Low Cost Carriers vs Full Service Airlines)

8/8/2019 Services Presentation (Low Cost Carriers vs Full Service Airlines)

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MPE -2009-11 - DIV B

Group A

Asif Khan Roll No: 64 Amit Kothari Roll No: 67 Tushar Mistry Roll No: 84 Sumit Mukherjee Roll No: 87 Ramesh Nair Roll No: 93

Jignesh Parmar Roll No: 107

SQUARE

The color orange is a mix of

yellow and red which denotes,learning through sharing and

the green arrow shows growththrough prosperity, environmentconcerns etc.

Services Marketing Presentation- Low Cost Airlines v/s Full Service Airlines


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Started in1912

In 1932, JRD Tata founded Tata Airline, the first Indian airline

At the time of independence, nine air transport companies werecarrying both air cargo and passengers

Fastest growing aviation industries in the world 9th largestaviation market in the world

Private airlines account for around 75% share of the domestic

aviation marketCAGR at 18 per cent, 454 airports and airstrips in place in India,of which 16 are designated as international airports

Airline Industry
http://www.google.co.in/imgres?imgurl=http://3.bp.blogspot.com/_9FiapjOaxGk/SV5a3CNuj5I/AAAAAAAABNI/t0hqodv5wRg/s400/JRD-1982-After-Re-enacting-1932-flight.PNG&imgrefurl=http://onlybombay.blogspot.com/2009/01/tata-airlines-precursor-to-air-india.html&h=343&w=400&sz=221&tbnid=p2jMmt9fB2OyzM:&tbnh=106&tbnw=124&prev=/images?q=Photos+of+J+R+D+Tata+flying&hl=en&usg=__glUiFJ3W3Li91DdSKX5BEKEViP8=&ei=2QC8S4PaHcaKOO-lzZ4I&sa=X&oi=image_result&resnum=4&ct=image&ved=0CBAQ9QEwAw


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Registered growth of18.3% as compared to last year419.34 Lakh passengers carried by domestic airlines from Jan-Oct 2010354.55 Lakh passengers carried in the corresponding period in 2009

Passenger growth


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Changing dynamics over the years


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Indian domestic air traffic still growing atmore than 10%


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Industry Challenges


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Target Markets


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Competitive Pressure

Serv

ice

Price

Low cost carriers are

changing the game

Positioning of various airlines


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7Ps of Services Mix


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Flower of Services


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Product Analysis


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Product as a Service


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Price Mix

Airline Costs


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PLACE MIX

%20 increase in ticket purchases online% -20 reduction in travel operator involvement


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Promotion MIX


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Competence

Reliability

Caring Attitude

Responsiveness

Initiative

Problem SolvingAbility

Goodwill

PEOPLE MIX


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Reservation

Flight Information

Facilities at The Airport

Baggage Handling

Meal Service

Flight Entertainment

Deliver Quality Service

PROCESS MIX


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PHYSICAL EVIDENCE


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21 Source : http://www.foolonahill.com/mbaaviation.html

Service Quality


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Key Parameters For Customers Satisfaction

Timely check inTimely departureTimely arrivalValue for moneySafety

Some common passenger experiences
http://www.cartoonistgroup.com/store/add.php?iid=1716


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Service Quality

Service Quality Model


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Service Quality Model

Word-of-mouthcommunications

Personal needs

Past experience

Expected service

Perceived service

Service delivery(including pre-and

post-contacts )

Translation ofperceptions intoservice-qualityspecifications

Managementperceptions of

consumer

expectations

Externalcommunications

to consumers

GAP5

GAP4

GAP3

GAP2

GAP1

CONSUMERMARKETER


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Customer Service Delivery

Passenger(pax)

Line ofInteraction

Front Line

Line ofInternalInteraction

Support

&Internet based Reservation Ticketing


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Research Findings( Dr. M.N. Khan & V.R. Dutt of FMS And Dr. S .C. Bansal of IIM-L)


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There is no difference in the gap between customers perceived and expectedservice quality vis--vis Tangibility - Legacy Support Services among differentcategories of airlines.

There is no difference in the gap between customers perceived and expectedservice quality vis--vis Tangibility Additional LCC Support Services among

different categories of airlines.

There is no difference in the gap between customers perceived and expectedservice quality vis--vis Tangibility Flight among different categories ofairlines.

There is no difference in the gap between customers perceived and expectedservice quality vis--vis Reliability among different categories of airlines.

There is no difference in the gap between customers perceived and expectedservice quality vis--vis Empathy among different categories of airlines

Research Findings( Dr. M.N. Khan & V.R. Dutt of FMS And Dr. S .C. Bansal of IIM-L)


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Competitive Dynamics


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Strategies for Future Sustenance
http://www.google.co.in/imgres?imgurl=http://www.metapedia.com/wiki/images/Past-present-future.jpg&imgrefurl=http://www.metapedia.com/wiki/index.php?title=Media_Theory_Weekly_Discussion_Fall_2009:_Week_6&h=300&w=320&sz=18&tbnid=4Q2FQENPweDn4M:&tbnh=111&tbnw=118&prev=/images?q=Photos+of+past,+present&hl=en&usg=__MPJSFLqRsvjLnaVHvfb75oG16fc=&ei=twa8S9STMJKMOKuvoZkI&sa=X&oi=image_result&resnum=1&ct=image&ved=0CAsQ9QEwAA


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The Airlines industry is cyclical in nature due to uncertainties which are beyond

its control

Brands have to be built in such a manner that they survive the lean periods ontheir strength of being able to differentiate themselves with others

Pricing is the most sensitive issue in airline industry and is done depending on

the demand of the marketSwitching is more frequent in case of low fare airlines whereas businesssegments are more brands loyal

LCCs have positioned themselves in competition to railways by making travelaffordable.

It is not possible for them to compete with railways on price front

Should aim to highlight features such as lesser travel time and betterin-flight facilities

LCC - Fares acts as the deciding factorFSC - Determining factors are flight schedule, reliability, quality andconnections with less emphasis on fare

In conclusion
http://www.google.co.in/imgres?imgurl=http://www.metapedia.com/wiki/images/Past-present-future.jpg&imgrefurl=http://www.metapedia.com/wiki/index.php?title=Media_Theory_Weekly_Discussion_Fall_2009:_Week_6&h=300&w=320&sz=18&tbnid=4Q2FQENPweDn4M:&tbnh=111&tbnw=118&prev=/images?q=Photos+of+past,+present&hl=en&usg=__MPJSFLqRsvjLnaVHvfb75oG16fc=&ei=twa8S9STMJKMOKuvoZkI&sa=X&oi=image_result&resnum=1&ct=image&ved=0CAsQ9QEwAA


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United breaks guitar

Dont mess with customers

Source: http://www.markpack.org.uk/united-airlines-dave-carroll-youtube/
http://smb//tmp/svhgi.tmp/United_Breaks_Guitars.mpghttp://smb//tmp/svhgi.tmp/United_Breaks_Guitars.mpg

Services Presentation (Low Cost Carriers vs Full Service Airlines)

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