Discuss how effectively Air Deccan has used the

elements of its services marketing mix to

market its services
• Product: Air Deccan is offering a no-frills air service at
low cost. Another USP of the airline, is connecting
flights to smaller towns, which are largely untouched
by full service airlines. This will enable Air Deccan to
attract more passengers.
• Pricing: The airline has priced its services at nearly
50% less than the prices of full service airlines. Such a
pricing will broaden the customer base, and improve
the sales volumes. This pricing will encourage middle-
class customers, small businessmen and companies
who look for faster but cheaper travel option for their
executives, to opt for the airline.
• Place: The airline has developed its own reservation system
where customers can book their tickets, either by calling Air
Deccan’s 24-hour call center, or through its website. Such a
distribution set-up will increase accessibility and reduce
distribution costs, in terms of printing the tickets and travel
agent commissions. Air Deccan is also using retail outlet
networks where customers can book their tickets, as at Uday
Home World, a consumer electronics chain store in
Bangalore. The airline is planning 400 such outlets spread
across all the major cities where it has operations.
• Promotion: The airline has highlighted its low-cost advantage
in its promotions. Its tag line "Simplifly" connected well with
its no-frills low-cost service. It used mainly print and outdoor
media for promotion thereby cutting costs.
• Physical evidence: Air Deccan has various
tangible elements that indicate its low-cost
status. It offers a no-frills service, cutting out
elements like different full-course meals,
business lounges, seating arrangements, and
in-flight entertainment that add to the bill. It
also uses smaller aircraft than full-service
airlines. However, it is the pricing policy that
conveys the low-cost advantage to its clients.
• Perishability is one of the major
characteristics that affect service providers
like Air Deccan. What steps has Air Deccan
taken to reduce the negative effects of
perishability?
• Being a low cost airline Air Deccan has to utilize its resources to
the fullest. If the flight is not filled to full capacity, the unsold
tickets cannot be redeemed or resold at a later stage. Thus the
airline has to strive to increase the occupancy rate.
• Air Deccan has taken many steps towards this end. The company
has expanded its distribution channels, by moving to channels
other than travel agents, so as to make it more accessible for
customers. This has helped in improving occupancy rates.
• Through the Dynafare scheme, where the cost of ticket increases
as the date of the flight approaches, Air Deccan encouraged
customers to book their tickets well in advance to take
advantage of the discounts offered. These advance bookings
increased the occupancy rate and attracted demand much in
advance of the actual date.
• Air Deccan has also tried to maximize the utilization
of all its assets - people and infrastructure. It uses
smaller planes which are easy to maintain, and can
be made air-ready in a shorter period of time. This
meant that the planes could make more trips
compared to larger ones. The airline limited the size
of the crew for each flight to 4 to 6 personnel
including one air hostess. This helped the airline to
utilize its personnel more efficiently and decrease
its wage bills.