Scribd Logo
Upload

Welcome to Scribd!

  • The Strategy of A Modern Airlines: Anshul Ashu Akkshita Kriti Nikhil Pankaj Shashikant

    Uploaded by

    Pankaj Kishnani
    9 views13 pages
    The document discusses the strategy of an airline company to increase profits through market segmentation. It shows that by segmenting the market into first class, business class and economy class and setting different ticket prices, the airline was able to increase total revenue from $60,000 to $96,000 and profits from $5,200 to $32,840. It also analyzed the profitability and costs for each class, showing that economy class subsidizes the higher profitability of first class. Benefits of increased profits were listed for employees, customers, government organizations, suppliers and investors.

    Original Description:

    Original Title

    Airlines kant RATIO

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document discusses the strategy of an airline company to increase profits through market segmentation. It shows that by segmenting the market into first class, business class and economy class and setting different ticket prices, the airline was able to increase total revenue from $60,000 to $96,000 and profits from $5,200 to $32,840. It also analyzed the profitability and costs for each class, showing that economy class subsidizes the higher profitability of first class. Benefits of increased profits were listed for employees, customers, government organizations, suppliers and investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    9 views13 pages

    The Strategy of A Modern Airlines: Anshul Ashu Akkshita Kriti Nikhil Pankaj Shashikant

    Uploaded by

    Pankaj Kishnani
    The document discusses the strategy of an airline company to increase profits through market segmentation. It shows that by segmenting the market into first class, business class and economy class and setting different ticket prices, the airline was able to increase total revenue from $60,000 to $96,000 and profits from $5,200 to $32,840. It also analyzed the profitability and costs for each class, showing that economy class subsidizes the higher profitability of first class. Benefits of increased profits were listed for employees, customers, government organizations, suppliers and investors.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 13

    THE STRATEGY OF A MODERN

    AIRLINES
    PRESENTED BY
    Anshul
    Ashu
    Akkshita
    Kriti
    Nikhil
    Pankaj
    Shashikant
    BEFORE
    SEGMENTATION
    TICKET
    FOR 80% OCCUPANCY TOTAL PRICE/PASSAN
    (NO. OF SEATS) COST/FLIGHT($) GER($) REVENUE/FLIGHT($) PROFIT ($)
    240 54800 250 60000 5200

    Per passenger Per Passenger


    Profitibility(sales) Profitibility(Cost) cost Profit BEP(Units)
    8.67% 9.49% 228.33 21.67 218
    AFTER SEGMENTATION(ALL FIGURES IN $)

    1ST CLASS BUSINESS ECONOM TOTAL


    CLASS Y
    PASSANGER 24 72 144 240
    COST 21566.67 22046.67 19546.66 63160
    PRICE/TICKET 1000 500 250 -
    REVENUE 24000 36000 36000 96000
    PROFIT 2433.33 13953.33 16453.33 32840
    AFTER SEGMENTATION(ALL FIGURES IN $)

    1ST CLASS BUSINESS ECONOM TOTAL


    CLASS Y
    PROFITABILITY(S 10.14 38.76 45.70 34.21
    ALES)
    PROFITABILITY(C 11.08 63.29 84.18 52
    OST)
    PER PASSENGER 898.61 306.20 132.27 263.17
    COST
    PER PASSENGER 101.39 193.80 117.73 136.83
    PROFIT
    BEP(UNITS) 22 42 71 -
    List all the benefits to all stakeholders of
    the airlines?
    (a)Employees
    (b)Customers
    (c)Govt. orgs.
    (d)Investors
    (e)Suppliers
    Due to the segmentation airline co. has
    made huge profits than without
    segmentation. Due to increase in profits
    benefits to the stakeholders are as follows:
    (

    (a) EmployeesHigh salary,Increased wage,


    (b) Increased incentives
    (b) Customer Fulfillment of their needs. Improved
    services leads to higher satisfaction
    (c) Govt. Orgs Higher taxes collection
    (d) Suppliers Increase in profit as demand from
    airline co. will increase
    (e) Investors Higher dividend, Higher share
    price,Safety of Investment
    made by Creditors
    Who all could be the beneficiary?

    The Beneficiaries includes employyes,customers ,govt


    orgs,suppliers,investors,society(as more employment
    generated)
    Do you think any segment is subsidising for
    any other segment? If so who to whom? If
    not why not?What do you understand by
    absolute satisfaction and relative
    satisfaction? Do you think any class may fill
    dissatisfied although absolutely
    satisfied.when would that happen?How
    would management prevent it?
    YES, ECONOMY CLASS SUBSIDIZES
    FIRST--------CLASS
    ST
    1 BUSINESS ECONOMY TOTAL
    CLASS CLASS

    PROFITABILITY(SALES) 10.14 38.76 45.70 34.21

    PROFITABILITY(COST) 11.08 63.29 84.18 52

    PER PASSENGER COST 898.61 306.20 132.27 263.17

    PER PASSENGER 101.39 193.80 117.73 136.83


    PROFIT
    When any customer compares its benefits to its cost and he is
    satisfied i.e. his benefits are more than costs , than he is said to
    be absolutely satisfied.

    But when he compares its cost and benefits to other customer


    and he is satisfied then he is said to be relatively satisfied.

    •Yes he can be absolutely satisfied but relatively satisfied.

    When a customer finds his benefits are more than its cost, he is
    absolutely satisfied, but when he compares with it with any
    other class may it be of same company or competitors company
    and he feels he has got less benefit in comparison to him/ her.
    When can segmentation go wrong? How to avoid segmentation going wrong?
    What precautions to take?

    Segmentation can go wrong when there is something wrong with market research:
    (1)Secondary data source is not reliable.
    (2)Method of data collection is faulty.
    (3)Problem definition is wrong.
    (4)Fault in sample unit, sample size and selection of sample
    (5)Mistakes in collection of information.
    (6)Mistakes in analyzing information.

    You might also like