4 Ps of Indigo (Marketing Mix)

Marketing Management

Introduction

As of August 2022, IndiGo had a market share of 57.7%, making it the largest passenger airline in
India. As a low-cost carrier, we primarily serve the domestic air travel market in India. We place
a strong emphasis on our three pillars: providing affordable fares, being on time, and providing a
polite and hassle-free service. A low-cost airline operating in India is called Interglobal Aviation
Ltd.
We will also be discussing about the journey of Indigo.

Here is what we will be covering in the 4 Ps of its marketing mix: -

Product: -
Indigo offers low-cost services to customers, which makes it more popular in the market and its
major product in the marketing mix. The Cargo services offered by Indigo are also catching up
quickly. They handle the shipments with great care. Fragile packages that fall under 6E priority
have specific packaging. They will not accept shipments of perishable goods like meat, dairy,
plants, or shellfish. In addition, Indigo Airlines transports Army mail, regular mail, and fast post.
Their service is what they offer to the market as their product.

Supplementary product: - They provide supplemental products in addition to the core offering.
When going where the service is unavailable, they include check-in, food on board, and connecting
flights. free goodies in addition to the trip, including music, movies, games, and frequent flyer
programmed in-flight entertainment.

Product Levels: -
• Core product: - Customer can travel from place A to place B.
• Basic product: - They provide low-cost passenger air transportation for middleclass and
lower middle-class customers so that they can also experience flight journey.
• Augmented product: - A product that possesses both the essential physical characteristics
and the additional non-physical characteristics that raise the value of the item. The
enhanced products include:
• Online reservations
• A range of food selections
• Transportation pick-up and drop-off
• Mobile ticketing.
 • Potential Product: - Indigo is now expanding itself globally. "IndiGo currently has over
275 narrow-body Airbus aircraft in its fleet and 26 international routes, including 74
domestic routes and will be expanding.

Product Hierarchy: -
• Need Family: - Travel
• Product Family: - Aircraft (comfort, convenience, schedule base)
• Product Class: - - Economy Class
• Product Line: - Air 320 & NEO/A321 NEO.
• Product type: - Aviation Kerosene (QAV), Aviation turbine fuel (ATF)
• Brand: - Indigo
• Item: - Aircraft

Product Classification: -
B2B: - Customers avail the services of an airline to travel from one place to another by buying
tickets of individuals. It is a onetime process and transaction and as long you exit the airport, the
deal closes until and unless you book another flight.
B2C: - Businesses avail the services of airline to move their products and goods from one place to
another. These products are generally in bulk and the airline charges freight on the products. These
are often in large quantities and the deal can also be in a collaboration form where services are
availed several times.

Product Mix: -
• Width: - Can expand to the adjacent segments where the customers are using
complimentary products from other brands to get the maximum value out of the products.
• Length: - Indigo Aviation should stick with the present merchandise mix rather than
launching new products to expand the product line.
Price: -
For any industry, price is a key component of the marketing mix. To put it simply, Indigo Airlines
was able to attract customers with middle-class income. When travelers compare costs, that really
gives it a competitive edge. Because of this and the high quality of its services, it is one of the most
popular airline services in India. The control division is crucial to the company's cost management.
One of Indigo's main advantages against rivals is price.
1. It has built a solid reputation as a low-cost airline that provides affordable air travel to
people of all ages and socioeconomic backgrounds.
2. One of India's most economical airline options is Indigo.
3. The company's successful cost-cutting initiatives and low-cost service are substantially to
blame for its success.
4. Indigo has been successful in a cutthroat sector where simply attracting new clients is quite
challenging.
5. Indigo has been successful in snatching up a substantial portion of the market thanks to its
competitive pricing and excellent services.
6. Even though SpiceJet and Air India are a serious threat to Indigo, there is currently no
Indian airline that can match with the low pricing offered by Indigo.

Price Adjustment Strategies by Indigo

Dynamic pricing by indigo: -
• The pricing of different seats is dynamic in nature and may vary based, length of the
route, occupancy, days before departure, customer booking pattern, weather, festive
season, and competitor prices etc.
• IndiGo customers will NOT compulsorily have to pay for the seats. The pricing is only
for advance selection of seats. When the customer checks-in at the airport, the seats
would be assigned for free.
• Rescheduling of flights in terms of date change initiate and time change is also dynamic
in nature where urgency changers within departure of 24 to 48 hours is double or triple
the cost of the actual fare paid.
Discount and allowance pricing by indigo: -

• Indigo offers discounts to lure customers and maximize their market share in their
annual sale season like “monsoon sale”
• In terms of discount and allowances, indigo offers senior citizens and students with
special air fares and baggage allowances

Segmented pricing by indigo: -

• Differential pricing based on product variant (product-form) in which different prices are
charged for the same product. Indigo charges different prices when a customer proceeds to
web check in if he/she wants a variation in seat like extra leg space, or near the window,
or aisle. The charges of seats range from 150-1500. Few seats are kept free and it is not
mandatory for every customer to pay. A customer only needs to pay incase he/she has a
preference where to be seated.

Setting the Price:-

1. Pricing Objectivies: -
• Indigo maximize the market share or profit.
• Indigo makes profit by increasing number of customer.

2. Determining the demand:-

• Indigo follow the price elastic on the basis of demand increase price also increase.
• Pricing strategy follow the the visibility of the demand.

3. Estimating Cost:-
• Fixed Costs- engine rentals, airport fees, employee costs, etc.
• Variable costs-Fuel expense, commission, sales promotion, rent inventories, etc
• Total expenses as per annual report in the year 2021- Rs. 3,28,264/- million and
total passengers travelled in the year 2021 is 30.7 million, so the average head per
cost of indigo is Rs.1070/- approximately.

4. Analyzing competitors:-
• Indigo have domestic market share in Low cost carrier.
 • In domestic market share Indigo has 55% shares as compares to others-
Spicejet-13.3%
Air india-9%
Go air-7.5%
Vistara-6.3%
Airasia-6.8%

5. Selecting a price method:-

• Indigo follow the perceived value on the basis of customer.
• Indigo offers competitive prices to attrack customers.
• India focus on prices acceptance specially in economic class services.

6. Selecting the final price:-

Following all the 5 steps indigo finally sets the price. Indigo keeps different prices
for middle seats prices lower and for window seats prices are higher.
The efficiency of Indigo dynamic pricing contributed to its rising market share and average
operating revenue per passenger kilometer. These increases helped Indigo to post huge
profits while it’s competitors struggles to minimize their losses.

Place: -
There are currently roughly 29 Indigo destinations, while expansion is ongoing. It serves 29
domestic and international destinations with a fleet of 78 aircraft and up to 508 flights per day,
compared to SpiceJet's 56 aircraft serving 45 destinations. Therefore, the goal is to supply more
capacity on fewer routes rather than sparsely distribute it among more destinations. Indigo Airlines
currently operates in 40+ destinations and the expansion is ongoing. Indigo Airlines covers the
length and breadth of India. It also covers 6 international destinations which includes Dubai,
Singapore, Muscat, Kathmandu, Bangkok.
The destinations of the Airline are spread across the major cities of the country to which helps to
provide better service to its customers. The company is expanding its destinations to new areas
intending to grow its business and increase the number of customers.
Channel Distribution and Channel Level

• Customer can buy ticket through Indigo Website www.goindigo.in

• They can buy ticket through Traditional travel agent like small travel agent shop, Thomas
cook website.
• Buy ticket through Online Agencies like Goibibo, makemytrip.com, cleartrip, via.com, etc.

Channel Level:
• Zero Level: Customer can buy ticket through Indigo Website www.goindigo.in

• One Level: They can buy ticket through Traditional travel agent like small travel agent
shop, Thomas cook website.
Buy ticket through Online Agencies like Goibibo, makemytrip.com, cleartrip, via.com, etc.

Promotion: -
Indigo Airlines has several TV commercials and online advertisements to promote itself. Indigo
Airlines has many promotions through billboards. Indigo Airlines partners with banks for
promotions such as the Indigo ICICI Bank Promotion, which offers refunds when tickets are
booked with an ICICI debit or credit card. Elevates its brand in the market primarily through its
low price and availability.
The airline has implemented a policy of connecting flights to other destinations from a single site
to avoid customers from having to book a journey on a different airline to reach their destination.
For instance, it links four flights from Ranchi to Delhi, Mumbai, Patna, and Bangalore; plans are
also being made to include Kolkata and Raipur.
Although not a direct marketing strategy, this one has seen a growth in client base because people
prefer to travel for less money by taking just one plane. Print media and advertising on travel
websites are two other promotional techniques used by Indigo aircraft.

The marketing strategy for Indigo Airlines also places high importance on the promotional tactics
and strategies used. The promotional strategies allow the Indigo Airlines to interact with the
consumers and influence them directly. Indigo Airlines uses a 360-degree approach in its
promotional activities, and makes use of the following means of promotion:

Digital Marketing
• Indigo Airlines has corporate profiles on all social media websites and portals
• Indigo Airlines uses its social media presence to directly, engage with consumers
• This direct engagement and interaction allows Indigo Airlines to understand the customers, their
needs and demands
• Indigo Airlines uses this feedback and incorporates it in its broader marketing and organizational
strategy
• Indigo Airlines also maintains a corporate website – which highlights company information,
product information as well as information regarding any ongoing campaigns and sales.

Reward Programs
• Indigo Airlines has a loyalty card program for its customers
• The loyalty card allows customers to redeem points in exchange for products or other exciting
gifts, as directed by the company
• Each purchase is entered into the loyalty card by Indigo Airlines and is valued for points against
the products’ monetary value
• The loyalty card can be purchased or is given complementary by Indigo Airlines on high valued
purchases
• Frequent usage and purchase of products by Indigo Airlines also has rewards against the loyalty
card

Community Influencers
• Indigo Airlines makes use of community influencers as its on-ground promotional efforts
• Indigo Airlines identifies strong and confident individuals to be brand ambassadors in their
communities
• Indigo Airlines provides these brand ambassadors and community influencers with its product
range and invites them to use it themselves to see benefits

Conventional marketing
• The company places advertisements in consumer-related magazines. This largely includes home
decor, and home management magazines
• Magazine ads are not very frequent, but appear twice every quarter of the fiscal year
• In high-density locations, Indigo Airlines also makes use of out of house hoardings
• Hoardings increase visibility for Indigo Airlines and also work towards building stronger brand
recall
• Indigo Airlines also produces TV advertisements
• All TV advertisements have an emotional appeal to them
• TV advertisements by Indigo Airlines have progressed to include a slice of life elements and
characteristics
• TV advertisements by Indigo Airlines also highlight the functional benefits of the product

Conclusion:-
IndiGo airlines have a competitive advantage over other services in terms of customer loyalty,
services offered and the important of all the pricing strategy adopted by Indigo. Because of its
Pricing strategy it has adopted the name as low-cost carriers. Indigo also has to look upon their
future plans in order to stay alive in this non - stabilized market. The Pricing also should be varied
in accordance with the operating cost to reduce the losses.
• Put invention first.
• Concentrate on capacity increase.
• Discounts on reservations made in advance.
• link to the tourism sector.