Industrial Marketing

www.indigo.com
Business Planning and Stratergic Management

Group No - 2

Group Members-
• Shoaib Sheikh - 21222
• Anushka Dharangaonkar- 21230
• Pranay Agarwal - 21231
• Sakshee Deore - 21234
• Akash Khabale - 21233
• Netradeep Garule- 21236
• Rushikesh Kurhe- 21237
• Vaibhav Thete - 21238

www.indigo.com
Industrial Marketing

Introduction

⚬Indigo Airlines is a private, low-cost

carrier based in Gurgaon, Haryana
India.
⚬The airlines started operations in
august 2006 and currently the largest
airline in India with market share of
55.70%
⚬The airlines is also one of the fastest
growing airlines in the world.

www.goindigo.in
Industrial Marketing - Where are you now

Gross Profit Net Profit

Market Share Revenue

Industrial Marketing

Revenue Model Share Price Movement

Industrial Marketing
Industrial Marketing - Where you want to be

Vision

INDIGO’s vision is to provide a meeting place for sharing knowledge and act as a broad platform for international
exchange relating to the representation of Indigenous culture in design.

Mission

INDIGO’s mission is to provide an open and inclusive space for reflection, discussion and action
regarding the contemporary interpretation an application of traditionally inspired Indigenous design. To
promote, encourage and facilitate relevance while respecting its historic and aboriginal legacy. INDIGO’s
vision is to provide an online forum for sharing ideas, information that fosters discourse and
understanding about the representation of Indigenous culture in design practice.
 Who Are Our Customers
• Indigo targeted the middle and lower income groups as there customers. There were already many
players who were catering to the needs of higher income groups. In order to serve this target
segment. Indigo had to work hard to reduce its fare.
• Indigo has a single passenger class and also similar kind of airplanes to reduce training and service
cost.
• Indigo emphasised on direct sale of tickets online in order to reduce commission paid to travel agent.
• Indigo focussed on on-time performance and quality of service to add value to the customer
experience.
Industrial Marketing - Who are your competitors

Competitors
Industrial Marketing

Competitor Market Share

Industrial Marketing

Fleet Management Strategy

Industrial Marketing

Operational Excellence
Industrial Marketing

Operational Excellence

⚬Maintenance Policies
Having a single aircraft allows IndiGo to have much fewerteams based only in key hub
cities
⚬Fuel Pricing
IndiGo Hedges its fuel purchases and buys large quantitiesonly in low cost situation to
stockpile
⚬Human Resource Policies
IndiGo does not train its own pilots and only hires pilots already trained in flying the
A320. It uses the current market saturation to hire pilots and crews at rates significantly lower
than industry standards
Industrial Marketing

Standardization
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Asset Management
Industrial Marketing

Strategic Marketing

Indigo advertised heavily when it started its international operations and

when Kingfisher was going bust, with the catchy phrases like "Let the bad
times roll ...... Fly Indigo in good times and in bad times", taking a dig at
Kingfisher's tagline " Fly the good times". This move was criticized but it
worked for Indigo.
At that time the results of these marketing and operational aspects were
clearly visible to Indigo. They saw the highest passenger load factor to
90% as compared to 77% of Jetlite and 81% of Spice Jet. This meant
better revenue for Indigo as compared to competitors.
Industrial Marketing

Futurstic Approach
Industrial Marketing

Futurstic Approach

⚬Back in 2005 when Indigo made first order for 100 aircrafts, it was a fledgling start up,
testing out its strategy and low carrier business model.
⚬The delivery of these airplanes was supposed to be carried out in a phased manner over
next 9 years.
⚬Indigo doesn’t buy multiple types of aircraft, doesn’t offer airport lounges and
⚬Business class tickets.
⚬From its early days, it committed to an “on-time” customer promise it renamed IST
(acronym for Indian Standard Time, similar to EST) to stand for “Indigo Standard Time” in
its communication.
⚬as more and more people experienced the beauty of “on-time” flights, Indigo’s market
share grew.
Industrial Marketing

Hub And Spoke Model of Operation

Industrial Marketing

Hub And Spoke Model of Operation

⚬Instead of 15 Flights to connect 6

places, indigo can use 6 flights to
connect only 6 places
⚬More Occupied Flights
⚬Cost Efficient
⚬Easy Maintenance
Business Policies and Strategic Management

Thank You