A

PROJECT REPORT ON

“MARKETING STRATEGY OF AIR INDIA”

A PROJECT SUBMITTED TO THE

UNIVERSITY OF MUMBAI

For partial completion of the degree of

Bachelor of Management Studies

Under the faculty of Management

By

Ms. Vineetha Paradkar

UNDER THE SUPERVISION OF

Ms. Sonal Jain

CLASS: TYBMS ELECTIVE: Marketing Roll No: 114

REENA MEHTA COLLEGE OF ARTS, COMMERCE, SCIENCE & MANAGEMENT

STUDIES
BHAYANDAR (WEST), THANE-401101. ACADEMIC YEAR 2021-

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 A PROJECT REPORT ON

"MARKETING STRATEGY OF AIR INDIA"

A PROJECT SUBMITTED TO THE

UNIVERSITY OF MUMBAI

For partial completion of the degree of

Bachelor of Management Studies
Under the faculty of Management
By
Ms. Vineetha Paradkar

UNDER THE SUPERVISION OF

Ms. Sonal Jain

CLASS: TYBMS ELECTIVE: Marketing Roll No: 114

REENA MEHTA COLLEGE OF ARTS, COMMERCE, SCIENCE & MANAGEMENT

STUDIES
BHAYANDAR (WEST), THANE-401101.
ACADEMIC YEAR 2021-2022

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 Declaration

I the undersigned Ms. Vineetha paradkar here by, declare that the work embodied in this project work titled
“Marketing strategy of Air India” forms my own contribution to the research work carried out under the
guidance of Ms. Sonal Jain is a result of my own research work and has not been previously submitted to
any other University for any other Degree / Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.
I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Ms. Vineetha Paradkar

Certified by
Ms. Sonal Jain
(Project Guide)

CERTIFICATE

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This is to certify that Ms. Vineetha Paradkar has worked and duly completed her project work for the Degree
of Bachelor of Management Studies under the faculty of Management in the subject of MARKETING and
her project is entitled “Marketing Strategy of Air India” under my supervision.

I further certify that my entire work has been done by the learner under my guidance and that no part of it
has been submitted previously for any degree or diploma of any University.

It is her own work and facts reported by his personal findings and investigations.

Principal Coordinator Project guide

Dr. (Mrs.) Satinder Kaur Gujral Ms. Sonal Jain Ms. Sonal Jain

Date-

Place-

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principal, Dr. (Mrs.) Satinder Kaur Gujral for providing the necessary facilities
required for completion of this project.

I take this opportunity to thank our Coordinator Ms. Sonal Jain, for her moral support and guidance.

I would also like to express my sincere gratitude towards my project guide Ms. Sonal Jain, whose guidance
and care made the project successful.

I would like to thank my College Library, for having provided reference books and magazines related to my
project.

Lastly, I would like to thank each and every person who directly and indirectly helped me in the completion
of the project especially my Parents and Peers who supported me throughout my project.

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 EXECUTIVE SUMMARY

Whenever you start a new business, launch a new product, or seek to increase your customer
base you need a marketing strategy. A handy, all-encompassing document that relays your
wider brand aims and goals.
marketing strategy helps a company to achieve business goals and objectives. the company
has proven to be a major contender amongst most of the other airlines of India. However,
even though the company seeks to be India’s major ambassador to the rest of the world, it is
bound to face a lot of competition, considering the vast amount of competition in a country
as big as India itself. Let’s check out how Air India markets itself. 
The brand utilizes undifferentiated techniques because of which it is missing out on business
sectors share in a business of this sort.  To make an unmistakable picture in the brain of
clients, it utilizes a mascot for making a brand picture of neighborliness and rich legacy,
along these lines it utilizes. Value-based situating strategies are also heavily implemented by
Air India. Several factors, along with governmental aid have also assisted Air India with
arising as the biggest worldwide Carrier out of India. Building brand awareness, attracting
leads, diversifying your target customer base and improving your competitive advantage are
all examples of core marketing goals.
A marketing strategy acts as a roadmap to guide your marketing efforts. To take your
business from idea to reality, grow it to the next level, or develop it for other markets, so you
can appeal to a broader range of target consumers.  Marketing is the science of choosing
target markets through market analysis and market segmentation, as well as understanding
consumer behaviour and providing superior customer value. Most business that need to sell
their goods or services to the public will make extensive use of various marketing tools, such
as market research and advertising to help further their success. Consumer behaviour, also
called as consumer psychology, is a branch of applied psychology, marketing and
organizational behaviour. It examines consumers' decision making processes and ways in
which they gather and analyse information from the environment. See the consumer
behaviour article for an overview. With reference to this context, this project has been

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prepared to showcase the strategy and put some light on “Marketing strategy of Air India”.
This project is completely based on market research,strategy and its comparative study on
Marketing strategy of Air India.. On the basis of that we have assessed the level of strategies
in the market.
These are some online strategies by the company for customer retention and development I
have come across :
 Promotes new operations and routes
 Contest results 
 Pictures of their meals provided by them
 Pictures of their fleets
 Pun intended captions
 New features like “web check-in”
 Their pilots in their workplace
 Interaction through festive posts
 Engagement with their followers is nearly equal to zero as there are no such activities or campaigns
carried out on either of their social media platforms.
 Covid protocols
 Some undeniable procedure before boarding the flight
 They retweet the news articles which are about them

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 INTRODUCTION

Air India is an airline service provider in India. It is owned by the Government of India. As a student
I am very much enthusiast and excited to carry this project forward as this topic is very much
showcasing the upcoming marketing leads. As we all know that airways are growing faster and so
are their marketing strategies. We will adequately learn how these strategies are helping the
company to grow and spread its platform wider. It is a member of Star Alliance, which is one of the
largest airline alliances in the world. When it was founded in 1932, it was originally owned by TATA
sons. It became a public limited company in 1946. Air India since then has strived to be the best in
the airline industry in India.
To keep up with the market, learning the digital ways of conducting marketing and business are a
must. IIDE helps you learn these new-age skills, now a mainstay of the current professional
environment.
Knowing how to effectively use digital space to advertise and showcase your brand to a
tremendous number of consumers is one of the most sought-after skill sets. We provide different
types of digital marketing courses for all kinds of learners- students, graduates, and professionals.
In the Air India case study, we discuss the competitive analysis, digital presence, SWOT analysis,
and also some marketing campaigns. In its marketing mix, advancements in all the sectors like the
Product, price, place, promotions, etc have been carried out.
So let us begin with learning more about Air India.

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 RELEVANCE

Air India is the flag carrier airline of India, headquartered in New Delhi. It is a government-owned
enterprise. It operates a fleet of Airbus and Boeing aircraft serving domestic and international
destinations. The airline has its hub at Indira Gandhi International Airport, New Delhi, and several
focus cities across India. Air India is the largest international carrier out of India with an adequate
chunk of market share. 
The old logo of the airline is a red colored flying swan with the ‘Konark Chakra’ in orange, placed
inside it. The flying swan has been altered from Air India’s characteristic logo, ‘The Centaur’,
whereas the ‘Konark Chakra’ is reminiscent of Indian’s logo.
Maharaja is the most lovable and recognizable figure. He may look like royalty, but he isn’t royal.
He’s almost like a friend to every Air India traveler. A friend who reaches out with warmth and
hospitality, even to the farthest corners of the world. Air India has established its position as India’s
largest and most effective air carrier on all fronts, according to the extensive studies done and
information gathered. Their service is up to date and relevant, serving millions of passengers on a
regular basis.
They aggressively position themselves in the market using a variety of promotional tactics,
including campaigns and social media, to keep consumers informed about future packages and
more. Consumers see their low prices as a competitive advantage and selling feature. Overall,
their marketing and commercial tactics have been effective in propelling them to new heights while
remaining innovative.

 In 1960, with the introduction of the first Boeing 707-420 aircraft, Air India started using jets, and
two years later, in June 1962, it became the world’s first all-jet airline.

 In 1970, Air India moved its offices to downtown Bombay.

 In 1986, Air India took delivery of the Airbus A310-300, being at that moment the largest
operator of this type in passenger service.

 In 1988, the company started using two Boeing 747-300Ms in a mixed passenger-cargo
configuration.

 In 1993, Air India’s first Boeing 747-400, named Konark, operated the first non-stop flight
between New York City and Delhi.

 After a five-year absence from Amsterdam, twice-a-week flights were introduced from Mumbai
(via New Delhi and Frankfurt), on the 3rd of December 1995.

 In 1996, Air India started using its second US gateway at O’Hare International Airport in
Chicago.

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  May 28, 1997 marks the date when Air India came online, its official website
being www.airindia.com. Later on, on the 1st of November, a major global alliance tied Air India
and Air France.
 Historical Background

With Tata Sons winning the bid for acquiring national carrier Air India, the airlines has come a full circle.
It's a homecoming for the airline and it begins another
chapter under the custodianship of Tata Sons. 

In its long history, Air India has witnessed both ends of the
spectrum - the glorious days and the undistinguished
moments. In addition, it has also experienced two different
systems of ownership - private and government. 

Air India had its origin as Tata Air Services later

renamed to Tata Airlines[13] founded by J. R. D.
Tata of Tata Sons, an Indian aviator and business tycoon. In April 1932, Tata won a contract
to carry mail for Imperial Airways and the aviation department of Tata Sons was formed
with two single-engine de Havilland Puss Moths. On 15 October 1932, Tata flew a Puss
Moth carrying air mail from Karachi to Bombay (currently Mumbai)
ir India, formerly Air-India, was the brainchild of legendary industrialist and philanthropist JRD Tata, who
was also India’s first licensed pilot. His fascination quickly turned into a plan to form India’s first
commercial airline.

Air India was established in 1932, and its first scheduled service was inaugurated in the same year, flying
mail on some routes for then-Imperial Airways. 

During the first decade of its operations, the airline slowly but steadily made enormous progress. In 1938,
the airline was renamed Tata Airlines and expanded internationally for the first time. The carrier added
Colombo, Sri Lanka (then Ceylon) to its route map in addition to the dozen or so destinations in India. One
of the greatest air tragedies of its time, the fatal fall was attributed to pilot error. A month later, the Prime
Minister Morarji Desai-led government dropped JRD from the chairmanship of Air India and the
directorship of Indian Airlines. 
However, in 1980, he was reappointed on the board of both airlines, by Prime Minister Indira Gandhi,
though not as chairman. He continued to serve on the boards till 1986, the year in which Ratan Tata was
appointed as chairman of Air India by Prime Minister Rajiv Gandhi.
In the concluding decade of JRD’s association with his favourite company – Air India - he continued to
serve with great distinction. 

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1947: Nationalisation 

However, it all changed in 1947. As India attained independence, nationalisation became a hot topic of
debate. The government went ahead with its plans to nationalise many companies, which incidentally
involved Tata Airlines, too. 

JRD Tata was completely against the idea of nationalisation. He was of the view that the government of
India had no experience in running an airline company, and nationalisation would mean bureaucracy and
lethargy, a decline in employee morale and a fall in passenger services.

Air India has established its position as India’s largest and most effective air carrier on all fronts,
according to the extensive studies done and information gathered. Their service is up to date and
relevant, serving millions of passengers on a regular basis.
They aggressively position themselves in the market using a variety of promotional tactics,
including campaigns and social media, to keep consumers informed about future packages and
more. Consumers see their low prices as a competitive advantage and selling feature. Overall,
their marketing and commercial tactics have been effective in propelling them to new heights while
remaining innovative.

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 Breifing of the study

Today competition is not only rife, but growing more intense constantly. However companies need to start
paying keen attention to their competitors, they must understand their customers. Airlines are suffering from
such competition. They have to believe customers as core concept of their business: customer satisfaction is
what guarantees the future of airlines and it is achievable by an adoption between their services and
passengers' needs. In another word, service quality is typically defined in terms of consumer satisfaction.
Pricing and service quality are the key variables that decide the brand equity of each player in the airline
industry. Existing literature suggests that measurement and management of service quality is the key for
survival of airline companies. The airline industry, which is a service-oriented business, is difficult to market
using only traditional marketing approach. In a product business, the product is fairly standardized and sits
on a shelf, waiting for the customer to reach for it. In the airline business, the customer confronts the airline
whose service quality is less cretin and more variables. As competition intensifies, more marketing
sophistication will be needed. Airline companies face three tasks, those of increasing their: i. Competitive
differentiation ii. Service quality iii. Productivity Various carriers have introduced such innovations as
movies on board, advanced seating, merchandise for sale, air-to-ground telephone service and frequent –
flyer award programs to augment the offer. While one airline introduced sparsely consumed cabin crews,
another added a piano bar. Airline today talk about adding suit pressing and shoe-shining services, a library
of best selling books and magazines, laptop computers and so on. The only problem is that most of these
innovations are easily copied. Few of them are preemptive in the long run. Still the airline that regularly
researches and develops innovative will gain a temporary advantage over its competitors. In the process they
earn innovative reputation and may retain customers who want to go with the best airline. Once of the major
ways to differentiate an airline is to deliver consistently and efficiently high quality services than competitors. The
key is to meet or exceed the target customer’s service quality expectations. But the airlines constantly face trade-offs
between customer 4 satisfaction and company profitability. The airline therefore, clearly defines and communicates
the service level that will be provided, so that will be provided, so that employees know what they should get.
Unfortunately most after the airlines don’t deliver what they promise. The third aspect is to increase productivity.
This is done by designing more effective service, substituting absolute aircraft by new generation carries etc. Airline
companies must avoid pushing productivity so hard that it reduces perceived quality. They should standardized
quality and thereby increase customer satisfaction. Customer experience is a journey that a consumer takes along a
series of encounters: they become aware of a brand, consider what’s on offer, make enquires, make a purchase and
use the service. Customers may choose to stay with the current service provider or may even choose to opt for a
different set of services. However, the airline industry has reached a crossroads where on one hand it is important to
satisfy consumers by providing them with the best facilities, yet fuel and labor costs continue to find ways and means
of cutting down on costs, giving rise to a phenomenon of low cost/ no-frill airlines. The aviation sector has become
the most important segment in the economic development of a nation. It plays a vital role in moving people or
products from one place to another, be it domestic or international, especially when the distances involved are far.
Stiff competition and favorable initiatives of the Government of India added fuel to enlarge both flights and fleets. In
a highly competitive environment the provision of high quality services to passengers is the core competitive
advantage for an airline's profitability and sustained growth. In the past decade, as the air transportation market has
become even more challenging, many airlines have turned to focus on airline service quality to increase service
satisfaction. Service quality conditions influences a firm's competitive advantage by retaining customer patronage,
and with this comes market share. Delivering high-quality service to passengers is essential for airline survival, so
airlines need to understand what passengers expect from their services. Service quality can be defined as a
consumer's overall impression of the relative efficiency of the organization and its services. Understanding exactly
what customers expect is the most crucial step in defining and delivering high-quality service. Service quality is one

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of the best models for evaluating customers' expectations and perceptions. The performance of a company leads to
passenger satisfaction with a product or service. Passenger satisfaction is 5 fundamental to the practice of consumer
sovereignty. Recently many researchers stresses that, customer satisfaction have become an important issue for
marketing practitioners because of the rapid business environment. Passenger satisfaction can be defined as a
judgment made on the basis of a specific service encounter. Satisfaction and loyalty are not surrogates for each
other. It is possible for customers to be loyal without being highly satisfied and to be highly satisfied and yet not
loyal. Firms are needed to gain a better understanding of the relationship between satisfaction and behavioral
intention in the online environment and to allocate the online marketing efforts between satisfaction initiatives and
behavioral intention program. Moreover, the results from this research would assist airline managers to better serve
their customers, monitor and develop service quality to achieve the highest level of their passengers' satisfaction.

Air India’s Digital Presence

 
Digital presence is as important as a marketing strategy. In today’s time, each one of us is hooked
up with different social media and to be active on each platform is a  must.

On Instagram, Facebook and Twitter,

 Promotes new operations and routes
 Contest results 
 Pictures of their meals provided by them
 Pictures of their fleets
 Pun intended captions
 New features like “web check-in”
 Their pilots in their workplace
 Interaction through festive posts
 Engagement with their followers is nearly equal to zero as there are no such activities or
campaigns carried out on either of their social media platforms.
 Covid protocols
 Some undeniable procedure before boarding the flight
 They retweet the news articles which are about them
 
On Linkedin, the posts are the same as Instagram, Twitter, and Facebook. Insights and job
vacancies are updated by the company. 
The impact of social media on business is no doubt huge. Organizations understand the essence
of social media in building the brand and increasing the overall revenue. 
Air India should boost their social media game real quick because it is what can result in a big
impact on its marketing.

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 CHARACTERISTICS
Segmentation, targeting, positioning in the Marketing strategy of Air India –

Factors like age, gender, income, and psychographics play an important role in grouping the population on
the basis of similar characteristics in the service industry. Air India uses a mix of demographics,
psychographics, and geographic segmentation strategy.

The brand uses undifferentiating targeting strategy due to which it is losing out markets share in the

competitive industry.

In order to create a distinctive image in the mind of customers it uses mascot as stimuli for creating a brand
image of hospitality & rich heritage, thus it uses Value based positioning strategy.

Competitive advantage in the Marketing strategy of Air India –

International Reach and Rich heritage: Whether the famous Maharaja mascot or the fact that the public
sector undertaking is backed by the government and many others have collectively helped Air India to
emerge as a largest international Carrier out of India.

Extensive Reach: With more than 1400 pilots and 2100+ cabin crews Air India is reaching out to more than
30 countries globally in addition to domestic locations.

BCG Matrix in the Marketing strategy of Air India –

It operates with strategic business units (SBU) consisting of subsidiary and joint ventures such as Air India
Express, Airline Allied Services Limited (AASL), Air India Air Transport Services Limited (AIATSL), Air
India Charters Limited (AICL), Air India Engineering Services Limited (AIESL), Hotel Corporation of India
Limited (HCI) and Air India SATS Airport Services Private Limited,

Distribution strategy in the Marketing strategy of Air India –

Air India has a fleet of more than 110 aircrafts, such as Boeing747-400, 777-200LR, 777-300ER, B-787, A-
319, A-320 A-321 and Boeing 737-800.

Across the four continents, it serves 90 domestic locations and more than 60 international locations.

The company is a member of world top most aviation alliance i.e. Star Alliance which offers global reach,
seamless service to the foreign traveler in a hassle-free manner.

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Distribution strategy in the Marketing strategy of Air India –

Air India has a fleet of more than 110 aircrafts, such as Boeing747-400, 777-200LR, 777-300ER, B-787, A-
319, A-320 A-321 and Boeing 737-800.

Across the four continents, it serves 90 domestic locations and more than 60 international locations.

The company is a member of world top most aviation alliance i.e. Star Alliance which offers global reach,
seamless service to the foreign traveler in a hassle-free manner.

Brand equity in the Marketing strategy of Air India –

The Royal Maharajah, the lovable figure symbolizes the rich Indian culture. Air India with such rich heritage
has always been known for it’s out of the league branding strategies for creating a buzz in the market by
breaking stereotypes.

It has bagged many awards and accolades over the period of time such as that for low carbon emissions, Best
Airline in the world by Region 2017 and many others.

Market analysis in the Marketing strategy of Air India –

The Airline market is facing bottlenecks on its own. Factors such as increasing fuel prices, Long Haul & 
Shot Haul permits, fifth freedom rights, government regulations, seasonal variance in demand, customer
service are some of the factors affecting the operations of the company.

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As per the reports of DGCA (Directorate General of Civil Aviation) Air India Airlines has a market share of
13.5% in the Indian Aviation market.

Customer analysis in the Marketing strategy of Air India –

Majority of the customers of Air India are from Asia Pacific, Africa & Middle East region and are either are
follower or connector (as per below study).

The customer groups consist of Middle income and Upper middle-income class and most are in age group of
30-50 years.

Air India and IndiGo are in war ads. Air India is stepping up its advertising campaign to lure consumers. Air
India put up an advertisement on a wall panel right behind IndiGo’s check-in counters with a message-
“Next time fly with Air India and feel the difference.”. It doesn’t mention any rival but the strategic
placement says it all. Even IndiGo didn’t back off. It replied Air India with an advertisement.
However, such aggressive marketing is a first for the national carrier. Air India is trying to muscle its way
into the consumer’s mind with high pitch advertising and discount offers.

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 NEED OF THE STUDY
As the youth of todays generation I personally have a point of view that airline industry or the airways ,its
importance,its growth and the crowd engaged in it is comparatively less among other countries. In india the
youth is diverted towards popular or easy and fast money criterias. Hence, this project would showcase the
importance as well as some attention towards the need of growth in the aviation industry and the innumerous
opportunites an individual can have.
Also,the various marketing strategies the company is putting forth to be in maximum reach.
As this generation is going on we know how much importance is given to the social sites or the social
profiles of businesses. People follow their markets and come across through their daily updates and
awareness. These are their social profiles and the amount of people following them.

Now , we can see the large number of people following the companies daily updates. This is an important part of one
of the marketing strategies.

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