AIRLINES INDUSTRY IN INDIA

HOW AIRLINES CAN LEVERAGE SOCIAL MEDIA TO GROW ITS BUSINESS

InRev Systems 2011

AGENDA
B

1
B

1.

INDUSTRY OVERVIEW SOCIAL MEDIA INDEX RESEARCH FINDINGS SIMPLIFY360

2
B

1.

3
B

1.

1.

InRev Systems 2011

INDUSTRY OVERVIEW (1/3)

The Indian airlines industry grew by 9% in 2009 to reach a value of $7 billion and by 35.5% in 2009 to reach a volume of 73.8 million passengers
8 7 6 5 4 3 2 1 0

45.1 34 6.6 6.4 -3.5

2006 2007 2008 2009 40 30

50 40 30

7 9

20 10 0 -10

$ Billion % Growth

3.4
2005

4.9

25%
Domestic International 80 70 60 50 40 30 20 10 0

36.2 22.2 47.6 58.2

35.5

75%

20

73.8

54.5
-6.4

10 0 -10

Mn Passengers % Growth

The domestic segment is the largest segment of the airlines industry in India, accounting for 75% of the industry's total volume

35
2005

2006

2007

2008

2009

Source: Data Monitor

InRev Systems 2011

INDUSTRY OVERVIEW (2/3)

LEADING COMPANIES

With its first flight in 1993, Jet Airways now connects 24 international destinations and operating flights to and from 51 destinations in India

Awarded 5-STAR AIRLINE' by Skytrax for the 3rd consecutive year, the airline has 66 fleets operating in India and the globe

The company recorded revenues of $2,413 million in the fiscal year ending March 2009, a decrease of 21.7% compared to fiscal 2008. Its net loss was $54 million in fiscal 2009, compared to a net income of $118 million in the preceding year

The company recorded revenues of approximately $1069.8 million in the fiscal year ended March 2010. Its net loss was $347.7 million in fiscal 2010

Source: Data Monitor

InRev Systems 2011

INDUSTRY OVERVIEW (3/3)

Industry Rivalry Rivalry is increased by the presence of low-cost carriers in the market. Price war occurs. Switching costs for buyers are low. Overall attractiveness: LOW Strong entry barriers like lack of easy access to capital and infrastructure bottleneck keeps down the level of new entrant. Regulation forms an additional barrier. Overall attractiveness: HIGH
Industry Rivalry 5 4 3 Threat of Substitute 2 1 0 Threat of New Entrants

Threat of New Entrants

Supplier Power

Buyer Power Supplier Power There are very few aircraft suppliers and quality of planes Overall, the attractiveness of the industry is MEDIUM is highly important increasing their bargaining power. The number of aviation fuel supplier is also few. Overall attractiveness: LOW

Buyer Power

Indias huge market size, its booming economy, rising disposable income, huge & fast growing middle class with demand outpacing supply, the pricing power is returning to the sector. However price sensitivity is high and switching cost is negligible strengthening buyers power. Overall attractiveness: MEDIUM There are large no of substitutes available such as roads, railways, etc. However, the comfort and time saving especially for business travellers makes it very attractive over its counterparts. Overall attractiveness : MODERATE
InRev Systems 2011

Threat of Substitute

SOCIAL MEDIA INDEX (1/6)

LinkedIn has over 100 MILLION users and adds about 1 MILLION new users to its service every week. The median age of LinkedIn users is 41, and the average user has 60 connections. 20 percent of its members are in the service industry Twitter has more than 145 MILLION users and adds about 6 MILLION new users a month. On average 140 million tweets are sent a day. More than 460,000 new account have been added every day . The median age of a Twitter user is 35 years old and the average user has 70 followers Facebook currently has over 500 MILLION active users around the globe and 50% of these active users log on to Facebook in any given day. Facebook's median age is 31 and its average user has 130 friends and is connected to 80 community pages, groups or events while average user creates 90 pieces of content each month YouTube has 2 BILLION views per day, and 24 hours of video is uploaded every minute. YouTube achieved for the first time the milestone of 100 videos watched per user last year
InRev Systems 2011

SOCIAL MEDIA INDEX (2/6)

Jet Airways adopt different social media channels as a means of engaging with customers

JET AIRWAYS engaging with customers in Facebook

JET AIRWAYS Facebook Page

InRev Systems 2011

SOCIAL MEDIA INDEX (3/6)

Jet Airways in Flickr a very good approach of portraying to the world what Jet Airways is all about

Jet Airways use Twitter as an agent for both engaging wit customers and giving announcement

InRev Systems 2011

SOCIAL MEDIA INDEX (4/6)

Banks SOUTHWEST AIRLINES AMERICAN AIRLINES No of Channels 5 5 Social Grades 4.43 3.7
SOCIAL MEDIA GRADES is calculated based on the interactivity level of the Airlines in Facebook, Twitter, Link edIn, YouTube and Blogs. It shows how active the Airlines are in the social media space No of Channels represents the number of social networking sites an Airline is present in
Indian Airlines Foreign Airlines

BRITISH AIRWAYS LUFTHANSA

CATHAY PACIFIC JET AIRWAYS SPICE JET KINGFISHER AIRLINES KOREAN AIR AIR INDIA INDIGO SINGAPORE AIRLINES GO AIR

4 4
5 6 5 5 4 4 3 3 2
InRev Systems 2011

3.42 3.24
3.14 2.87 2.62 2.59 2.45 1.46 0.95 0.75 0.66

SOCIAL MEDIA INDEX (5/6)

5 4.5 4 3.5

Interactivity Level

2.5
2 1.5 1 0.5 0 0 1 2 3 4 5 6

No of Channels Social Engagement Graph: Interaction Plot of Airlines in the Social Media Space

InRev Systems 2011

SOCIAL MEDIA INDEX (6/6)

4 3.5 3

Interactivity Level

2.5

2
1.5 1 0.5 0 0 1 2 3 4 5 6

No of Channels Social Engagement Graph: Interaction Plot of Indian-origin Airlines in the Social Media Space

InRev Systems 2011

RESEARCH FINDINGS
BRAND AWARENESS
Number of conversations across web

Jet Airways is talked more about in the Social Networking Sites. There has been an average of 4000 conversations about Jet Airways within a time span of 2 weeks alone

InRev Systems 2011

RESEARCH FINDINGS
BRAND HEALTH
SENTIMENTS across web for different Airlines

Airlines KINGFISHER AIRLINES

POSITIVE SENTIMENT % 67.37%

NEGATIVE SENTIMENT % 5.04%

JET AIRWAYS

55.71%

13.31%

Even though Jet Airways is more popular in the social media space, its negative sentiment as a percentage of total talk is much higher than that of Kingfisher Airlines
InRev Systems 2011

RESEARCH FINDINGS
DEMOGRAPHIC
Demographic Age Groups

Twitter demographics shows that both Kingfisher Airlines and Jet Airways has the same age group of people patronizing them. It is essential for them to differentiate their service as much as possible for customer retention and attraction

InRev Systems 2011

RESEARCH FINDINGS
DEMOGRAPHIC
Demographic Location

Both Kingfisher Airlines and Jet Airways are more or less represented in the same manner in India However, Kingfisher Airlines is talked about more in the international level and so Jet Airways need to increase its international brand image

InRev Systems 2011

RESEARCH FINDINGS
UNDERSTAND Industry Trend - TRACK specific keywords to see what is happening in the industry

Tracking the keyword Flight Delay

Southwest Airlines has got many negative comment about its flight being delayed. It should ACT accordingly 11.6% and 10.2% of air travellers who tweet about flightdelay also use iPhone and Blackberry respectively
InRev Systems 2011

11.60% 10.20%

iPhone BlackBerry Others

78.20%

SIMPLIFY360
The Research is done using Social Media Monitoring Product, Simplify360
Brand Monitoring & Sentiment Analysis Social Analytics Dashboard Schedule Messages and RSS Feed Personalized URL Tracking Download Data and Reports

ALL THESE AND MORE IN

Creating Polls and Sharing Email Campaigns Team Collaboration and Work Assignment Email and Notification

SIMPLIFY360

InRev Systems 2011

SIMPLIFY360
Simplify360 is a web based social media engagement and analytics platform that offers a ONE STOP SOLUTION to the social media needs of a business and lets you engage with your customers and interpret your social presence

Simplify360 provides an easy to use platform for tracking and listening to what people are talking about your brand in social communities.
With Simplify360 you can not only LISTEN to what your customers are talking about your brand but also ENGAGE with them!

Simplify360 lets you ANALYSE the social media presence of your brand by giving you actionable insights

InRev Systems 2011

SIMPLIFY360
People Talk a Lot About Companies.
But tracking conversations happening online is easier said than done. With SIMPLIFY360, you can track what customers are talking about your airlines good or bad feedback or even suggestion

Engage with such customer proactively with the help of SIMPLIFy360 engagement console tool
InRev Systems 2011

Start Using Simplify360 Today

For Details, Visit http://simplify360.com/ http://simplify360.com/blog/ http://www.facebook.com/simplify360 @simplify360

InRev Systems 2011

Or Send a Mail to david@in-rev.com VP - Sales, InRev Systems