Contents

Companys Introduction ......................................................................................................................... 2 Corporate Overview: ........................................................................................................................... 3 Destinations across India: ................................................................................................................... 3 The Brand ................................................................................................................................................ 4 Product Portfolio ..................................................................................................................................... 6 During Inception: ................................................................................................................................ 6 Present: ............................................................................................................................................... 6 Competitor Scenario ............................................................................................................................... 7 Brand Evolution....................................................................................................................................... 9 Current Branding Strategy .................................................................................................................... 11 Outdoor:............................................................................................................................................ 13 Socio-Economic Environment ............................................................................................................... 16 Demand and Supply analysis ................................................................................................................ 16 Conclusion: ............................................................................................................................................ 16 Future Strategies ................................................................................................................................... 17 Expansion Plans................................................................................................................................. 17 Automation to Sustain Expansion ..................................................................................................... 18 Two-Pronged Strategy ...................................................................................................................... 18 Convenience to Passengers .............................................................................................................. 18

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Companys Introduction
SpiceJet (Kal Airways Pvt. Ltd.) is a low-cost airline, headquartered in Gurgaon. It is a reincarnation of ModiLuft formed by Ajay Singh, Sanjay Malhotra and the Kansagra family. Its first flight was in May 2005 and within 3 years of its operation was India's second-largest low-cost airline in terms of market share. The aim of the airline company was to compete with Indian Railways for those passengers who travel in the air conditioned coaches of the latter. It was possible for the airline to be a low cost carrier by Using one kind of aircraft model for operational ease. Greater rotation of the aircrafts and smaller halts reducing the airport fees especially at busy airports. More no of seats customised in the specified aircraft to increase the load. Reducing in-flight and airport services thus reducing the number of crew members required per flight. Does not offer a complimentary meal service to its passengers.

SpiceJet presently flies to 22 cities across India, Nepal and Sri Lanka and a total of 131 flights daily. The aircraft has an average age of 4.4 years which is a young fleet. The fleet consists of: Aircraft Boeing 737-800 Boeing 737-900ER Bombardier Dash 8 Q400 Total In service 21 5 26 Orders 32 2 11 44 Passengers/aircraft 189 212 78

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Corporate Overview:
SpiceJets mission is to become Indias preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers. We hope to fulfill everyones dream of flying. With India's economic and business growth, the percentage of traveling population is burgeoning. More and more Indians are traveling for both business and pleasure and everyone needs to save both time and money. SpiceJet's vision is to address that and ensure that flying is for everyone.

Destinations across India:

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The Brand
Name: SpiceJet Royal Airwyas Ltd changed their name to Spicejet on 4th May 2005. The new name signifies the melange of modern cosmopolitan outlook and Indian ethos. Colour: Red The colour red first of all goes along with the word spice and it also signifies the vibrancy and new generation with fresh look. At that time the ongoing airlines had very formal colours targeting business travellers like Jet Airways Blue, Sahara - tricolour, Deccan - blue and white. Thus red forms a differentiation in the airline industry thus. Value proposition (Old): Flying for everyone Spice jet positions itself with a service with a dynamic fare structure; it offers fares that are affordable and significantly lower than most airlines. With contemporary interiors, modern graphics and vibrant colours, SpiceJet is very much like todays traveler - practical yet stylish. A SpiceJetter will feel this is the smart, international way to travel, I've made the smart choice. SpiceJet is committed to make sure you feel good at the end of a flight, arriving at your destination - fresh and on time. Value Proposition (New): Get More When you Fly SpiceJet aims to evolve from the price-centric positioning to that of a mature brand. And all of this will be translated in the brand experience and delivery. Spicejet currently positions itself as a brand that delivers value beyond the price point. In addition to providing a safe, modern and young fleet with efficient, warm, friendly and on time services; it also listens to its consumers and offers experiences that they value. Positioning (present) SpiceJet aims to evolve from the price-centric positioning to that of a mature brand. And all of this will be translated in the brand experience and delivery. SpiceJet aims to become an efficient airline that offers value for money.

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Spicejet currently positions itself as a brand that delivers value beyond the price point. In addition to providing a safe, modern and young fleet with efficient, warm, friendly and on time services, it also listens to its consumers and offers experiences that they value.

In the current era of low cost travel available globally, SpiceJet seeks to position itself as an innovative, modern, safe and customer friendly airline. The airline's philosophy is to make air travel accessible to a growing market of time and cost conscious consumers yet at the same time open newer markets and reach across a multitude of travellers.

The Airline continues to focus all its effort on ensuring that it maintains a healthy ontime performance track record. It reported a healthy on time performance of 79%, in 2009-10.

The Brand fares very well on key parameters such as top of mind and total recall, imagery and other key attributes.

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Product Portfolio
During Inception:
The Brand focused on Price Centric Advertising. The Company had a fleet size of only 3 planes. The Company didnt had any other value offerings at the time of Inception. It announced 3 lakh tickets for Rs. 3. It introduced Monsoon fares of Rs 99 to 499.

Present:

The Company has a fleet of 22 planes with about 145 daily flights connecting 20 domestic and 2 international destinations. The present campaign of the Company is focused on unique brand offering, crystallized into a clear message, Get more when you Fly, Spice Jet It provides complimentary supervision of unaccompanied minors. The Company provides free of charge web check-in facility. The Company introduced Home-away Insurance for all its customers in collaboration with TATA AIG. This innovative scheme with a cover of upto Rs 1 lakh covers damage,
disappearance or destruction of furniture, clothes, electrical equipments etc, on account of burglary at the passenger's residence, while he/she is away on personal travel trip. It is available free of cost to all the customers who book through spicejet.com.

Travellers can now also collect their boarding pass for the return flight at the time of check-in, if they are returning on the same day. International Passengers (USA & Canada) get a 2 bag waiver if they travel with the Spicejet within 24hrs of their International Leg. The Company launched the breakfast menu which would be available for sale on flights that depart before 9:30 am. The customers also get good discount if they order their food at the time of booking tickets.

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Spicejet joined hands with the Armed Forces and launched Freedom to Fly for The Indian Armed Forces. Under this scheme, each serving Armed Forces personnel enjoys a 100% discount on basic fare for unlimited tickets.

It Introduced Spicejet privilege programme wherein passengers could use the SpiceJet boarding pass and gain great value offerings from hotels, online retails, insurance and wellness partners.

Competitor Scenario
1. Go Air - It operates domestic passenger services to 18 cities with 131 daily flights. The airline was also established in 2005. It launched commercial operations in November 2005.

Aircraft Airbus A320-200 Airbus A320neo Total

In service 10 10

Orders 72 72

Passengers 180 -

2. IndiGo - IndiGo operates to 26 destinations in India with 259 flights each day.

Aircraft Airbus A320-200 Airbus A320 NEO Total

In service 42 42

On order 89 150 239

Passenger 180 180

3. Kingfisher Red - Kingfisher Red, known formerly as Simplifly Deccan and prior to that as Air Deccan who was a pioneer in low cost services in the Indian skies, a brand currently run by Kingfisher Airlines.

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Aircraft Airbus A320 ATR Turboprop Total

In service 21 23 43

On order -

Passenger 180 54 -

4. Jet-Lite

JetLite,

formerly Air

Sahara

is

low

cost airline based

in Mumbai, India owned by Jet Airways, the airline operates scheduled services connecting metropolitan centres in India, it operates 110 flights daily.

Aircraft Boeing 737-700 Boeing 737-800 Bombardier CRJ200

In service 9 9 1 19

On order 6 6

Passenger 144/149 186 50 -

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Brand Evolution
2005 SpiceJets Everyday Spicy Fares will start at slightly above the AC III tier train fares. These one way fares will be available in 5-6 different fare buckets, increasing in level with the most expensive being approximately 55-60% of the regular full economy fares. Examples include Delhi to Bombay and vice versa from a low of Rs.1699 to a high of Rs.4899. Delhi Goa Rs.2399 to Rs.6799 and Mumbai Goa from Rs.899 to Rs.2399. 2006 SpiceJet Announce 51000 Promotional Seats for April May 2006. The "Red Hot Special fares of Rs. 699 and Rs. 1799 for 51000 promotional seats will be available on entire SpiceJet network spanning across 36 daily flights covering 11 cities. SpiceJet Flies One Million Passengers in just Nine Months. SpiceJet in integration with Make My Trip.com. It was the first ever incorporation of a LCC reservation system with the GDS in India. SBI Card and SpiceJet Launch Co-branded MasterCard Card.

2007 SpiceJet announces 99 paisa Freedom to Fly Fares''. Celebrating 58th Republic Day of India. SpiceJet Offers Web check-in Service in Feb. SpiceJet offers Absolutely Free Ticket to every 99th Guest Online in April.

2008 SpiceJet Limited announces Flying for Life recognition for Abhinav Bindra and Sushil Kumar who created history by being the first Indian Individual Gold medallist and bronze respectively in Olympics.

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SpiceJet introduces 'book your meal before you fly' service, to enhance customer convenience and service.

2009 SpiceJet reduces its fare for all bookings made for 30 or more days in advance. This will be applicable on all its 119 flights in the new summer schedule across 18 destinations. The reduction is up to Rs 600 per ticket in March. SpiceJet launches its new Brand campaign on how to "get more" value when they fly SpiceJet. SpiceJet launches a Privilege Pass Programme under which travellers can now avail special benefits from partner hotels on presentation of their SpiceJet boarding pass. Spicejet started Cargo Operations in April.

2010 SpiceJet ranked among top 5 Budget Airlines in Asia by by Smart Travel Asia magazine using online polling. SpiceJet to commence international operations. Booking opens for flights to Colombo and Kathmandu in Oct. It started complimentary service of supervision of unaccompanied minors. Taken over by media baron Kalanidhi Maran by acquiring 37.7% shares of Spicejet in June 2010.

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Current Branding Strategy

Consequently, SpiceJet decided to build on its foundation promise of Flying for everyone to a newer brand thought/positioning of GET MORE WHEN YOU FLY with SpiceJet. To take this new brand promise forward, SpiceJet introduced a plethora of Value Added Services to give more bang for the buck of the Indian LCC traveler. The following VASs were launched: Free supervision of unaccompanied minors Hot Indian meals on board for purchase Great discount on return fares Free carriage of sports equipments Complimentary facility of web check in and Privilege pass program

Consequently the Communication and Branding Strategy was to highlight and talk about the various VASs introduced by SpiceJet. This led to the development of a 360 degree Branding campaign. The Companys strategy was to remain more feature-led and therefore consumer-centric than go into a thematic campaign of the Brand Promise - Get More When You Fly. Primary Target Audience: Males, age: 25-44 Secondary Audience: Others: Females age: 25-44 Corporate

In addition to the core Low Cost Carrier flier base, that is comprised of employees of small and medium enterprises, young entrepreneurs and the leisure/personal travellers.

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The next step was to devise an all-inclusive media plan, with an aim was to launch the campaign through mediums which would reach the maximum audience within our Target audience. Thus, a media plan was constructed, with TV as the main medium supported by magazines and web on the basis of the kind affinity our TG have towards these mediums.

Contests were created across various channels, to further aid in instantly pushing the brand recall.

Besides television as the prime medium, print ads in selected magazines also came in handy as bigger Indian cities and other urban centers constituted a large population of SEC A (both male & male) who are inclined towards English publications. Hence a mix of both male and female premium English magazines like India today, Outlook and Femina were included to reach the SEC A and double the effect of our campaign.

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Outdoor:
Being the high impact & high visibility media, outdoor provides the array of opportunities to advertise & reach out to the minds of the people. SpiceJet also used this medium to reinforce the brand promise of Get More When You Fly to good effect & followed three pronged strategy throughout the year:

1. Increasing brand Saliency through high impact sites & Innovation : Iconic & landmark sites were created across 5 major metro cities which includes the neon sign boards. The mammoth SpiceJet aircraft mock up was installed at Delhi International Airport as part of its innovation strategy.

2. Credential Building: SpiceJet was voted as the No.1 Low fare Airline by per two popular consumer polls over 2009-2010. Subsequently an outdoor campaign was done in the beginning of the year to announce the results; this helped us in generating a positive word of mouth while reiterating SpiceJets commitment and its proposition of offering More Value every time our customers fly with us.

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3. Tactical / Launch Campaigns: The Get More promise was also extended to tactical and new launches, highlighting More Options in terms of flights and connections across the SpiceJet network.

4. Airport Branding: The Get More campaign was not only restricted to the TVCs and Outdoors, the same was extended across all possible customer touch points.

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The campaign contributed in making the Companys M-o-M Sales Results for the year 2010 in terms of revenue grow and take a leap as compared to last year.

5. Web Banners: Online advertising like using of World Wide Web were used to deliver
marketing messages to attract customers.

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Socio-Economic Environment
The number of passengers carried by domestic airlines from January-June 2010 stood at 25.71 million as against 21.1 million in the corresponding period of 2009.This recorded a growth of 22 %- according to data released by the Directorate General of Civil Aviation (DGCA). In terms of market share, private carrier Jet Airways was the market leader with 26.5 % share, followed by Kingfisher Airlines with 21 % , Air India with 16.9 %, Indigo with 16.4 %, SpiceJet with 13.3 % and GoAir with 5.8 % during the month of June 2010.

Demand and Supply analysis

People are more price elastic in this market. The aggressive price rise will lead to fewer travelers. When the price increases people will be switching from plane to other alternatives like train, bus etc. The market demand function for a product is a function showing the relation between the quantity demanded and the factors affecting the quantity of demand. There are many other factors which affect the demand includes endure poor or nonexistent service, unexplained delays, additional fees that were poorly explained and often arbitrarily or improperly implemented, damage and or loss of our luggage, airplanes with defective seats, lights, videos, etc.

Conclusion:
The strategy of highlighting and talking about the various VASs offered, apart from the low rate of tickets which is a given in the LCC category, has worked exceedingly well for SpiceJet. This also impacted the overall profitability of the airline which reported positive profit for the 1st time in 2010-11.

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Future Strategies
With India's economic and business growth, the percentage of traveling population is burgeoning. More and more Indians are traveling for both business and pleasure and everyone needs to save both time and money. SpiceJet's Vision is to address that and ensure that flying is for everyone.

Expansion Plans
SpiceJet currently has a fleet of 30 aircrafts and will add another two Boeing aircrafts, which will take its Boeing capacity to 32 aircrafts by FY2012. The company will also add 11 Bombardier aircrafts by the end of FY2012, starting from September this year. In FY2013, the company will further add five Boeing aircrafts and four Bombardiers. By the end of FY2013, the total tally would be 37 Boeings and 15 Bombardiers as per current expansion plans. SpiceJet expects net sales to post a 39.4% Compound Annual Growth Rate to Rs5,703cr over FY201113. The brand new fleet of the latest Q400 NextGen turboprop aircraft from Bombardier has been ordered to cater to enhancing the air connectivity to Tier-II and Tier-III towns. The Q400 NextGen turboprop aircraft, which can accommodate 78 passengers, is widely accepted as the best short-haul plane in the world. SpiceJet is in the process of taking delivery of the first 4 aircrafts during August. The low-cost airline also has plans to enter international destinations later this year. Regulatory authorities to fly to Sri Lanka, the Maldives, Nepal and Bangladesh have been applied. The airline completed five years of operations in May when it became eligible to fly abroad. As per present regulations, an airline with less than five years of domestic operations is barred from flying overseas. The leading low-cost carrier SpiceJet plans to hire about 140-150 employees to meet the manpower requirements for the new aircraft it would add, besides flying abroad and will also be flying on 3 currently unconnected routes Hyderabad-Mangalore, HyderabadAurangabad and Vizag-Tirupati.

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Automation to Sustain Expansion

SpiceJet has automated its cargo business processes to support its aggressive expansion plans for its domestic cargo operations. This will ensure an integrated

management of cargo reservations and ground operations including flight planning, inbound cargo operations, billing and shipment tracking. SpiceJet becomes the first Indian LCC to use this high-end business solution.

Two-Pronged Strategy
SpiceJet plans to adopt a two-pronged strategy increase airfares and improve efficiency to improve its margins in the face of rising fuel costs. The carrier also stated it would continue with its regional expansion plans despite the increased operating costs, with the Indian LCC seeing "huge opportunity" in tier II and tier III cities.

Convenience to Passengers
SpiceJet plans to initiate roaming agents wherein passengers without baggage are assisted by the roaming agents at the airport to skip check-in are some of the other initiatives. In future, Spicejet plans to start Web Access Protocol (WAP) on the mobile phones of the passengers and SMS check-in through which passengers can skip check-in by just showing the barcode or the notification on their mobile phones.

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