STRATEGIES OF A

MARKET LEADER -
INDIGO
INDIAN AVIATION OVERVIEW

 India is the 2nd fastest-growing aviation market

 India has replaced Japan to become the third largest domestic aviation market globally only
behind US and China
 India’s civil aviation industry is on a high-growth trajectory.
 India aims to become the 3rd largest aviation market by 2020 and the largest by 2030.
 India’s aviation industry is largely untapped with huge growth opportunities, considering that air
transport is still expensive for majority of the country’s population, of which nearly 40% is the
upwardly mobile middle class.
MARKET SHARE AND
CURRENT MARKET
PLAYERS
 In May 2017, domestic air passenger traffic rose 17.36% to 10.17 million from 8.67 million during
the same month of last year

 According to CAPA, domestic air traffic is expected to grow 25 per cent and cross 130 million in
financial year 2017-18.

 The big market players in Indian Aviation Industry are Indigo, Jet Airways, Air
India, Spice Jet and Go Air.

 Currently IndiGo (InterGlobe Enterprises) is the market leader in the segment with 39.5% market
share
 PORTER’S 5 FORCES

NEW COMPETITIVE
SUPPLIERS CUSTOMERS SUBSTITUTES
ENTRANTS RIVALRY

• Product • Shortage of • Increasing • Same Suppliers • Within

Differentiation Commercial Customer Base segment-Go Air,
pilots • Zero Brand Spice Jet and
• Switching Cost • Minimal loyalty JetLite
• ATF Suppliers Backward
in India Integration • Trains
• Fuel Prices • Spice Jet and
• Minimal Go Air
• Setup Costs • ATF Price Switching Costs
Contribution
 INDIGO AND ITS
IMPACT ON THE
INDIAN AVIATION
INDUSTRY
 Founded- 2006

 Founders- Rahul Bhatia and

Rakesh Gangwal.

 Fleet Size- 110

 Destinations- 40

 Headquarters- Gurgaon

• Focus on customer needs
• Increase in number of
flights per route instead of
number of routes
• On time performance and
low cost
• Low Cost Carrier
• First airline to make use of
Sharklet technology(used for
better aerodynamics and
cutting down fuel burn and
emissions) thus reducing fuel
expenses
• More capacity per route
instead of new destinations
helped control cost
• 46 destinations both • Word of mouth
domestic and international, • Bill boards
with 900 daily flights as on
• Smart Advertisements
8th April 2017
• Online tickets, online • On flight magazines- Hello
check-in from anywhere 6E

4P’s
 MARKETING STRATEGIES

Expanding total market

-Exploring into new dimensions
01 -Billboard, online and word of
mouth advertising

Expanding Market share

-Aggressively bought new and fuel
efficient aircrafts
02 -Improved connectivity and larger
frequencies

Protecting current share

-Achieve and sustain low operating cost
-Maintained on time performance
-Smart use of technology- customer
03 satisfaction, IT development, In flight
magazines- Hello6E
Strength Weakness
• Strong promoter support. • Not established on international routes.
• One of the largest LCC • Limited domestic routes.
• Sale and leaseback of aircrafts
• Single type of Aircraft
• Single class
• Low fleet age
• On Time performance
• Barriers to market entry

SWOT
Opportunity Threat
• Opening up of international routes. • Rising fuel costs
• Middle class taking sky routes. • Changing government policies
• UDAN initiative • Majority contractual staff
• Lower GST on economy class. • Growing JV’s among competition
 CONSUMER BEHAVIOR

CULTURAL SOCIAL PSYCHOLOGICAL

PERSONAL

Middle and Upper Middle class family Self esteem needs

for leisure trips. Working class for middle class.
middle working class
people with decent
are attracted due to Aspirational groups- Need to reach fast at
disposable income.
less costs. one time trips . minimum costs
STRATEGIES OF A MARKET
CHALLENGER – JET
AIRWAYS
OBJECTIVES

1. GAIN MARKET LEADERSHIP

2. STAYING AHEAD OF COMPETITORS

TYPES OF ATTACKS
Bypass Attack

• Penetration in international markets

• Use of multiple types of aircrafts unlike Indigo

Guerrilla Attack

• Monsoon sale till June 11: Tickets @ Rs 1,111

• Discount on 24th Anniversary : 24 %
Frontal Attack
• Lowered cost of tickets in response to Indigo in 2013

Flank Attack

• Launched JetLite, low-cost subsidiary by buying Air

Sahara
• Frequent Flyer Program named JetPrivilege

Encirclement Attack
• Touched every weak and strong points of
Indigo
• Providing In-flight entertainment
COMPETITOR STRATEGY
OF JET AIRWAYS

Competitors of jet Airways

STRATEGIES

FRONTAL ATTACK
Market Leader- Indigo
FLANK ATTACK

Market Followers- Spice jet, Go air

ENCIRCLEMENT ATTACK

BYPASS ATTACK

GUERRILLA ATTACK
•Fleet of 117 carriers •Differential pricing for •Flights both in domestic •Ad campaigns that are
different classes front and in international shown via television,
newspaper and magazines
•On-ground services: arena
check-in option, fully •Concessional fares to •Mouth publicity and its
operational airport students, patients, senior •Accessible offices and travel agents
lounges for passengers citizens and armed forces prompt services
•Indian film actor Shahrukh
•In-Flight services: • Benefits to its regular Khan as its brand
comfortable seats, several flyer to maintain their ambassador
foods, beverage and loyalty towards Jet
entertainment options in Airways •Visa Card from Citibank
flight that collects points after
every flight and can be
redeemed at later date

4 Ps : Jet Airways
THANK YOU