Presentation on

“Marketing strategies in
airlines
industry”

SUBMITTED TO: SUBMITTED BY:

SHILPA CHUGH
MR. RAJAN SHRMA
MBA -3RD SEMESTER
{LECTURER}
ROLL NO:50
 BACKGROUND OF AIRLINES
INDUSTRY…..
Airline industry can be best described as an "intensely
competitive market."

It facilitates economic growth, world trade, international

investment and tourism and is therefore central to the
globalization taking place in many other industries.

 Initially the airline industry was either partly or wholly

government owned. This is still true in many countries, but in the
United States all major airlines are private.
•The airline industry has been in a financial crisis for
much of this new century. The problems that started with
economic downturn at the beginning of 2001 reached
almost disastrous proportions after September 11, 2001.

•Competitive pressures from low-cost carriers, problems

with the air transportation system’s reliability and
operating performance, and soaring fuel prices are
inhibiting the full recovery of industry.
TOP AVIATION COMPANIES IN INDIA
Air Charter Services Pvt Ltd
Air Charters India
Air India
Aviation India
Indian Airlines
Deccan Aviation Ltd
Indigo
Go Air Airlines
Kingfisher Airlines
Spice Jet
Air Sahara
Jet Airways
NAME OF PLAYERS MARKET
SHARE
1. KINGFISHER AIRLLINES & KINGFISHER RED 28%
(PREVIOUSLY AIR DECCAN)

2. JET AIRWAYS & JET AIR LITE (AIR SAHARA) 25%

3. AIR INDIA & INDIAN( PREVIOUSLY INDIAN 16%

AIRLINES)

4. INDIGO 14%

5. SPICEJET 12%

6.GO AIR 3%

7. PARAAMOUNT AIRWAYS 2%

8. MDLR AIRLINES 0.004%

GOALS OF AIRLINES INDUSTRY
The most important goal is “public service”ie.
Services to customers.

The next goal of airline industry is to provide returns

to investors.
Online Marketing Strategies
American Airlines started its online strategy in 1996.

The strategy was not just to facilitate flight bookings and

information search, but also to help to build the American Airlines
brand, and even brand communities.

American Airlines did a campaign called ‘whyyoufly’ where

people could submit their stories about why they fly on a separate
campaign website (Anfuso, 2004).
This interactive marketing strategy gets people highly involved
with the brand & taps into the need for self-expression & self-
enhancement
The site encouraged online booking by offering 1000
frequent flier miles.’

With the ‘Whyyoufly website American Airlines intended

to emphasis that flying is a means to an end: your
destination, where an important moment in your life can
occur.

By showing that American Airlines has a big route

network on the site, airline has more to offer than cheap
Tickets.

This differentiation strategy is very clearly exposed in

their online marketing strategy.
Personalization and Customization
This serves for administration purposes & also become
more intimate with the customer.
CRM system is connected with it’s online marketing
strategy.
Although personalization is still in the start-up phase,
behavioural targeting is becoming more advanced
nowadays.
Behaviour targeting means the tracking of website
visitors with cookies and customize offerings according
to their behaviour.
Emphasis on Non-price Attributes
This is a big question whether can only
compete on price ??
As noted before, surveys have shown that the
traveler’s choice of airline is not only affected by
the schedule and price but also by the in-flight
comfort,
frequent flyer program, safety and reputation
for punctuality
The transparency of quality information on the internet
will make customers more loyal to the companies that are
able to create unique selling propositions.
 Business Process Outsourcing
 Airlines realize that they need cost management and
efficiency strategies to improve their bottom lines. Low-
cost/low-complexity airlines are showing that they have a
business model that works. Airlines are in trouble around
the world, but they can use Business Process Outsourcing
(BPO) to optimize cost structures and achieve high
performance.
STRATEGIES ADOPTED BY
KINGFISHER AIRLINES……
 “Fly the good times”-promotional line, it reflected in the
experience the company offered to its passengers.
KFA is also launched Kingfisher express in order to tap
into the growing segments.
It planned to re-launch its commercial air service called
UB Airway again which it had to withdraw it due to
government restrictions.
The company gave best services to its customers that were
like providing world class interiors, and in-flight
entertainment systems.
The company came up with only one class airlines rather
than other airlines that had Business Class; Economy
Class the idea was to combine Business Class experiences
and Economy Class experiences in one.
 The company started addressing its customers as
“GUEST” rather than passengers.
The company made its mark by providing its guests with
bigger seats so as to provide better comfort.
KFA has set its sight to become India’s largest airline
both is capacity and in market share
LOW COST AIRLINES
What are the key characteristics of low cost airlines?

high seating density ( high seating density & no business

class reduces per seat costs )
uniform aircraft types

direct booking (internet/call centre - no sales

commissions)
no frills such as “free” food/drinks, lounges or ‘air miles’
simple systems of pricing
STRATEGIC ANALYSIS OF AIRLINE INDUSTRY
Assess the Marketplace:
The airlines' marketplace is their bread and butter. The
ups and downs of the economy directly affect these
companies' bottom lines. Both short-term and long-term
implications have direct impact on cash flow and profits
Supplier Power:
Look at the resources that the airlines need to function,
aside from personnel. These could include repairs,
equipment and consumables. When oil prices shot up in
2007, suppliers had significant power over airlines that
had to buy jet fuel on the open market.
Buyers power:
Look at the resources that the airlines need to function,
aside from personnel. These could include repairs,
equipment and consumables. When oil prices shot up in
2007, suppliers had significant power over airlines that
had to buy jet fuel on the open market.

The Risk of New Players:

In the airline industry, almost all the players are well-
established. So the risk of a new entry is minimal. While
small regional carriers will try to expand to bigger
status, few survive long enough to matter. Only two have
been able to function in recent years as new players: Jet
Blue and Virgin Airlines.
Substitution:
For the airline industry as a whole the substitution factor is
almost nil. An analysis would have to compare the practical
benefit of car, boat and train vs. plane. In most cases beyond
500 miles, the plane wins out on every factor: cost, distance,
speed, and efficiency.

Competition :
An industry analysis could spend chapters on the airline
industry's competition issues. Millions of dollars are spent on
marketing and advertising, particularly on holidays and
toward business clients. There are plenty of statistics
available on consumer flow and comparisons between players
in different regions, cities, markets and distances.