BC PROJECT

ON

“JET AIRWAYS”
 Introduction -

 Jet Airways (India) Ltd. is an airline based in

Mumbai, India, operating Domestic and
International services.

 It operates over 330 daily flights to 50 destinations

across the Country and 6 Overseas.

 Its main base is Chhatrapati Shivaji International

Airport in Mumbai.
 According to the latest available figures, its share
of India's domestic aviation market has increased
to over 43% (up from less than 27% a few months
ago).

 Greater than any other Indian domestic

operator's market share.
 HISTORY -

 Jet Airways was incorporated as an “Air Taxi" operator on 1

April 1992.

 The airline is owned by Tailwinds (owned by Naresh Goyal)

(80%) and public shares (20%).

 It started commercial airline operations on 5 May 1993 with a

fleet of 4 Boeing 737-300 aircraft.

 It began international operations to Sri Lanka in March 2004.

 Naresh Goyal, who already owned Jet Air (Private)
Limited set up Jet Airways as a full-service
scheduled airline that would give competition to
state-owned Indian Airlines.

 Jet Airways and Air Sahara were the only private

airlines to survive the Indian business downturn of
the early 1990s.

 In January 2006, Jet Airways announced that it

would buy Air Sahara making it the biggest takeover
in Indian aviation history.
 MARKET PLAN -

 There are nearly five lakh loyal customers under Jet privilege
programme, who prefer Jet Airways services.

 New product intends to convey that flying is a lot more

than physical experience.

 New product intends to elevate the feelings, the status, and

the pleasure of business class passengers.

 The new features have been added based on a survey of

existing executive and economy class passengers.
 Segmentation and Targeting

 It is projected that Indian domestic aviation market is

likely to grow at 20 % each year over the next 3 to 5
years.

 If that be so there would be 26.8 million air passengers

in the year 2007-08.

 If the same ratio is assumed for passengers in the year

2007-08, there would be 4.3 million passengers
travelling executive class.
 Jet Airways has always catered to the needs of
business travel and can target segment of 4.3
million passengers for providing exclusive Chief
executive class services at a premium.

 Passengers, travelling executive class have similar

set of wants and therefore can be treated as a
separate segment.

 The segment is therefore actionable for Jet

Airways.
 Business travellers prefer Executive class.

 These travellers have similar wants and at the same

time can pay high fares.

 Business fares are not paid by the passengers but by

their companies.

 Consideration for comfort and the need to be fresh

enough to be able to conduct business is top priority
for business travellers
 Positioning -

 The new product will be positioned as never before

aviation product in the history of civil aviation in India.

 It will not be easy to replicate by the competitors.

 Positioning is what is done to the minds of prospects.

 Ultra luxury and comfort shall be assured as benefit.

 Product Offering -
 In the chief executive class the following additional
facilities shall be offered :

 In-flight services:

 Exclusive executive class flights. No economy class

passengers.

 Cell phone connectivity on chargeable basis subject to

the availability of technology.
 Power connection for laptop and permission to
use Internet via WI-FI.

 Music channels and Movie channels. Movie

channel shall be introduced on few long distance
flights.

 On the rear side of the aircraft small meeting

lounge (14 seated) shall be provided to allow
passengers to hold a meeting on flight.
 Out - flight services :

 Bath and shower facility in the lounge.

 Internet connectivity in the lounge along with

sufficient power connections for laptops.

 On request Limousine pick-up and drop-in

facilities.
 Discounted limousine shall be made available to
passengers through tie up with reputed rental
agencies.

 If the passengers are coming for a one day

business trip and their spouses are travelling with
them; boarding, lodging and limousine
arrangements for sight seeing or shopping shall be
made by jet airways for spouses
 Marketing Strategy -

 Marketing strategies need to be broken into specific

areas such as - :

 Product –

 Offer ultra luxury and comforts to the CEOs of

companies or other aspiring group of business travellers.

 Passengers of this class shall be sent limousine for pick

up and drop in, whenever they request for this facility.
 As per tie up with rental agencies limousine throughout the
day for one-day trip shall be provided at 15 % discount on
market rates.

 Those persons who shall be travelling for the one-day

business trip with their spouses, Jet Airways shall make
arrangement for day lodging / boarding and limousine for
the whole day for shopping / sight seeing.

 Passengers shall get power connections for their laptops

and internet connectivity in the executive lounge.

 They can also avail bath and shower facility in the lounge.
 Pricing -

 Chief Executive Class is a high quality product,

which is intended to be sold at a high price.

 In fact, with the concepts of cell-phone and

Internet connectivity and limousine and lodging /
boarding facilities Jet Airways should set high
prices to skim the market.
 Various pricing methods, which may be used are:

 Mark up pricing with return of say 20 %.

 Target return pricing with return of say 20 %.

 Perceived value pricing (survey indicates

customers are ready to pay even up to 200 % of
existing executive class fares).
 Factors that need to be considered while pricing are decided - :

 Choice of aircraft.
 Market that is city pair for each route.
 Time schedules and opportunity cost of using aircrafts and
other resources.
 Cost allocation among different services like mail and cargo
services.
 Cost per block hour / Cost per plane hour.
 Cost related to trips / passengers / capacity. 
 Looking to all above factors and considering the skimming
strategy it is proposed to charge 15.0 % of normal executive
class fare.
 Distribution -

 Jet Airways already have General Sales Agent

(GSA) in India with offices in approximately 69
cities.

 Jet Airways 24 hour’s reservation system already

exists in Mumbai-Delhi-Kolkata-Chennai.

 This system shall be extended to Bangalore,

Hyderabad and Pune.
 For convenience of customers, on line bookings
will be allowed two hours before the flights for
those customers, who do not need a limousine
for drop in.

 Tickets shall also be confirmed on cell-phone

subject to money transfer through debit or credit
card
Communication -

 For launch of new product -:

 Television advertising will be taken up along

with advertising in magazines and
newspapers.
 
 Jet Airways made a profit after tax of Rs 392
Crores during 2004-05. Advertising budget
will not be a problem.
 Advertisements will be placed in the media 2
months before launch of product. For launch of
chief executive class from October 1, 2008; the
advertisements will be started from August 1,
2008.

 Advertisements will appear on a pulsing basis.

 Business events are being organized regularly in

five star Hotels like Taj and Le Meridian etc.
 Pamphlets of Chief Executive class product shall be
distributed in such events to create awareness.

 Sponsorships for some awards like tickets of Chief

executive Class from Mumbai to Delhi or Banglore
may be announced in popular TV programmes and
famous NEWS channels like CNBC, NDTV etc.  

 Through some contests, few existing jet privilege

members may also be offered limited free tickets
in Chief Executive Class.
 Advertisements will stress “never before
experience” and “where mind flies” kind of themes.
Overall an integrated communication programme
will create awareness and pull business travellers to
Chief Executive Class.

 The journey shall be traveller’s pride.

 People -
 Airlines are service industry. Any service has an important element
in terms of people who deliver the services.

 Jet Airways runs a programme of “Seamless customer care”.

 
 Through this programme each employee is made fully aware of his
or her role in achieving excellence.
 
 The staff on Chief Executive Flights shall be using specially designed
uniforms to distinguish them from the rest of Jet Airways team.

 They shall be especially trained to meet the expectations of Chief

Executive Class.
 Process -

 On line bookings and cell-phone bookings will be

special processes for reservations for Chief
Executive Class. These passengers will get special
treatment in the flight.

 In chief executive class not only feedbacks forms

will be get filled but customers on their e-mails
shall be intimated about the action taken on their
feedback.
 Physical evidence -

 Uniform type of aircraft, staff uniforms, and

limousine services shall provide tangible element
to services.

 In addition to this, a bouquet to each passenger

at his or her destination along with a Music C.D.
may add to the physical evidence.
 CONCLUSION -

 Considering the above mentioned facts, the

innovation of the chief executive class of Jet
Airways will have an overall tremendous effect
over the growth of the company and will give the
executives (our customers) an ultimate experience
along with pride.