Professional Documents
Culture Documents
1. Introduction
This assignment is going to describe the marketing strategies for the hospitality and tourism
sector. These strategies will be discussed on the behalf of Jet Airways. First of all there will
be a brief history of Jet Airways. Then theory of marketing strategy and PR strategies will be
given. After that the marketing strategy of Jet Airways will be discussed as well as the PR
strategies. Then the analysis of these strategies will be done using some internal and
external forces which affect the organisation. SWOT and PEST will also be used for
analysis. With this analysis it will be seen how effective these strategies are. At the end
some recommendation for marketing strategies will be given to discuss how Jet Airways can
become more popular and attractive airline. Customer loyalty, networking and relationship
marketing, brand identity and strategy, strategic customer relation, viral and guerrilla
marketing and e-marketing all these are very important aspect of todays marketing. These
will be discussed on the behalf of Jet Airways. First of all there will be a brief history of Jet
Airways.
2. History
Jet Airways is one of the Indias biggest private airlines. It was incorporate as an Air Taxi
operator on April, 1992. It started its commercial airlines business on 5 May 1993. At the
beginning it was started with affect of four leased brand 737-300 aircraft and 24 daily flights
serving 12 destinations. Jet Airways was set up by Naresh Goyal, who owned Jet air private
limited which provided sales and marketing for foreign airlines in India. Jet Airways is one of
the strongest competitors for Indian airlines, who had enjoyed monopoly in the domestic
marketing since 1953. It acquired its scheduled airline status in January1994, when the air
operator act (1953) was repeated. In January 2000, Jet Airways took its decision to buy air
Sahara, the only major private airline, making it the biggest takeover in Indian aviation
history. Now it becomes the largest aviation industry in India. But the deal feels through in
June 2006, however, a modified deal went through in April 2007 and Air Sahara becomes Jet
Lite. In August 2008, Jet Lite fully integrates to Jet Airways. Further in October 2008, Jet
Airways announced an alliance with Kingfisher airlines that including an agreement on codesharing on domestic and international flights, common ground handling, join fuel
management, joins utilization of crew and sharing of similar frequent flier programmes. Jet
airways introduced another low cost air line Jet Konnect with spare aircraft that were earlier
discontinued due to low passenger load factor in May 2009. Jet airways Konnect uses the
same operator code as jet airways. (Anon, online 2011)
In this assignment, the marketing aspect of Jet airways will be discussed to know what their
marketing strategy is. How they promote their services. Which marketing strategy is adopted
by them? What is their PR strategies and how they satisfy their customer? All these aspects
of marketing of Jet airways will be discussed. First of all the actual meaning of marketing will
be discussed.
Product and services- Jet airways provide different types of services to their customers.
For example they provide same day return for some trips between significance cities like
Pairs, Singapore or some domesticities e.g. Delhi-Mumbai, Mumbai-Bangalore. It provide
business class service and the club premier cabin with wider seats and greater seat pitch,
exclusive ground check-in facilities
3. Partnership with UTV- In 2009, Jet airways has partnered with UTV to launch the
online contest Canners Calling. In this contest the winner will get a chance to attend the film
festival 2009 along with the campaign that jet airways is trying to highlight its product
superiority. With these type of campaign Jet airways increase its publicity and also give the
information about their services and how their services different from other airlines.
4. Alliance with Kingfisher airline- Jet airways has used one of the integration
strategies in the current situation of crises. An alliance with its rival Kingfisher has been
formed. This alliance is a code sharing agreement. In this agreement, both companies can
jointly reduce costs on routs globally by sharing the resources. Furthermore, Lisa reveals
that jointly a global airline alliance is certainly on the cards of Jet airways. With this alliance
they can share the petrol station and other places in different countries to save money.
(Online, 2011)
5. Ethnic marketing in US- Jet airways is relying heavily on ethnic marketing in the
US to get in touch with its main target market of non residence Indian. They are tripping on
the distribution networks like grocery stores where they allow access to customer to get
tickets. Jet airways have been targeting niche events like Diwali celebrations and India day
parade in the US to get targeted exposure with the people who regularly fly to India.
Moreover, Lisa realises that these customer shop around a lot to do their homework before
they made a purchase and Jet airways offers a product that offers a great value.
(Simplifying, online, 2011)
6. Pricing and Fare strategies- Jet airways also use some strategies related with
price or ticketing. For example, sometimes they provide some free tickets to for the
promotion of their services. They also provide concessional fares for students on domestic
level and also on international level. Jet lite surprises offer corporate deals. All these offers
help them to promote their services and also they encourage the people to use their services
for all their national or international tours. (Chundawat, 2009)
8. E-marketing- Jet airways have developed the new strategy of e- marketing. Now the
tickets can be booked online on the airline website. Passengers can book their tickets, pay
and print their tickets online form any point globally and travel with paperless tickets across
its network. People can check the facilities provided by airline on internet. This is their new
strategy of marketing.
Video on You Tube to show case there in flights features. People can see how they will be
treated and what will be offered before travelling to Jet airways. (Anon2, 2011, online).
2. Brand and promotion strategies- the core focus of the brand is to be a world
class airline. Towards this end it tries to offer passengers a world class product. It
endeavours to ensure that the customers can depend on the clockwork like regulatory of Jet
airways operations and it promise to deliver a highly professional and efficient brand
experience pre- flight, in-flight and post flight. The world class airline for business travellers;
the identity needed to reflect the professionalism and warmth reflect its band position. This
was build into the Jet airways logo design and the choice of colours.
which have an impact on Jet airways. Memorable word PEST can be used to study external
forces which affect Jet airways.
a. External factors:
Influence of political decision-
Economical issue- Most of the airlines are becoming private because they have to
meet certain criteria for a successful. So all these aviation are entering new strategies for
their business. Jet airways also need some strategies to compete with them. Moreover, Jet
airways are facing the problem of decline in demand, lower yields, recession and high fuel
prices. To come over all these problems it needs new strategy. They should try to find
something new to increase the demand of their aircrafts. The loss of income for airlines led
to higher operational costs, not only due to the lower demand but also due to higher
insurance costs which increased after the WTC bombing. This prompted the airlines to lay
off employees. (anon1, 2011)
Social factors- The travel habits of people are changing day by day. To cope with these
habits, Jet airways need new strategy to promote that they are taking care of their
customers. They must provide the services according to the taste of people to increase the
demand of their aircrafts. Plane hijacking is also a social factor which is a cause of
decreasing the demand of aircrafts. Sound pollution also affects the marketing of airlines. So
air craft should be free of sound pollution.
Technological factors- The major competitors of Jet airways are using new
technologies for the promotion of their product. They increase the use of internet for example
Air Sahara provide the facility of online booking and they also auctioned their remaining
tickets before two days of timing. Jet airways have an influence of these technological
factors in the marketing of their product or services.
Competition- Jet airways are facing the strong competition from Kingfisher especially in
domestic fights. Some overseas markets like British airways, Air Canada also giving a strong
competition to Jet airways. To cope with all these airlines, jet airways need a new strategy to
promote its services at international level. All the major competitors of Jet airways are using
some innovative strategy to increase its popularity. So Jet airways also need new strategy
for this.
Guerrilla marketing- The war of sky is back again and poor Jet Airways is loser
again. Last year Jet started a campaign saying We have changed and Kingfisher hijacked
the whole campaign by placing a hoarding just above it claiming We made them change.
Jet was forced to withdraw the campaign and started a new one with message take off to
New York daily Kingfisher again changed its hoarding which stated, They have flown from
here to New York. Jet put up an outdoor campaign for JetLite stating, our smile lights up
502 flights to go over 50 cities every day with pictures of their smiling staff. Deccan put up
its hoarding next to this, which said, Wed rather you smile), with pictures of their smiling
customers. This strategy also put a great effect on the marketing of Jet airways.
Opportunities- Air cargo market is an opportunity for Jet airways. Jet airways have
been on the forefront in the transportation and handling of general and special cargo safety
and comfort. Jet has a scope in international service and tourism. Tourism is expanding
industry in these days and airlines have a wider scope in this industry.
Threats- Air lines industry has several threats and Jet airways also could not escape from
these threats. Strong competition from other airlines is a big threat. Fuel prices are raising
day by day because of this fare prices also increasing. As fares are increasing then the
demand of customers is going to decrease. This is a biggest threat in the marketing of Jet
airways.
b. Internal factors:
Now some internal factors will be discussed which have an impact on the marketing strategy
of Jet airways.
Strengths- Jet airways are the known as the market driver in the Indian airlines market. It
has now the experience of more than 14years. It is the only private airline with international
operation. It also has the largest fleet size. All these strengths are very helpful in the
marketing of their products. It has a strong brand values and reputation in the mind of
customers about the quality of service. It is the first airline to have new fleeted air buses.
Weakness- in these days, the ticket price is going to be high. It is also losing its domestic
market share. Most of its fleet are going to be old with average age around 4.79 years. Its
brand promotion is also weak in the comparison with other airlines. High fares are also a
weakness for Jet airways.
Customer service- People are not satisfies with the customer service of Jet airways
especially in domestic aircrafts. A customer said that the staff did not provide the facility of
wheelchair to his parents who are too weak to stand. This type of news will have bad effect
on the promotion of its products.
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Customers- Jet airways targeted customers are business class and economic class.
These targeted customers also have an impact on the market of airline. It does not have
attractive strategy for other people of society as there are different types of people in the
society and they should make the strategy for all these people its market segment can be
divided in to three segment economic class; business class and premium class. It has an
impact on the marketing for the other classes of people.
After analysing the marketing and public relation strategies of Jet airways it is realised that
Jet airways needs lot of improvements in their marketing strategies. Here some new
strategies will be recommended for Jet airway so that it can become one of the strong and
most demanding airlines in todays world. These recommendations are listed below:
8. RecommendationSome recommendation for effective market and public relation strategies are listed below. If
they use these suggestions then they will make their airline more powerful and demanding.
a.
Boost consumer confidence- Consumers are fickle lot and are frequently hesitant
to buy a product they know little about. To boost the confidence of customers about the
services they should use that type of campaign that emphasizes the quality and value of
product and services.
Leverage emotions- The buying decision is emotional for many customers. Large
Corporation spend millions of their money playing on their customers emotions and this
works for them. Jet airways also should create a campaign that makes its customers feel
themselves, your organization and their decision to buy your product or services.
Good media relation- Jet airways should try to have a good relation with media
because media plays an important role in the promotion of services or product. If they have
good relation with media then media will promote their effective strategy about customers
relation.
To provide sponsorship- For the effective public relation, Jet airways should
provide sponsorship. It can be either a team or charity organization. Then people will have a
chance to know about Jet airways and the services provided by them.
Deliver speeches- the managing director, sales manager or other respectable persons
in company should deliver speeches to public, time to time, about their recent changes and
their upcoming strategies.
Publish articles- The organisation should also publish some article about their
changes and about their customer relation strategy in the popular newspaper or magazines.
With these articles people will get knowledge about their strategies and about what are they
doing to improve their services. It will increase their good relation with customers.
Know the market-For good public relation it should be known what is happening
around you. It will help to act immediately to keep your clients ahead of the game. Jet also
should have the knowledge of every technology which give information about the market in
which their product or services is going.
9. ConclusionTo conclude it can be said that Jet airways is one of the biggest airline industry at domestic
level as well as international level. Its market share is more than any other airline at
domestic level. It is very aware about their marketing campaign and their public relation.
They are using all the recent technologies and strategies for the promotion of their products
and services such as customer loyalty, social awareness, social media strategy and
advertisement with famous people. But all these things are not enough in todays world. As
new entrants are coming in the market and existing competitor are also using very effective
strategies for the promotion of services or products. After analysing the marketing and public
relation strategies of Jet airways it is realised that their marketing strategy is not as effective
as their competitors strategy. They need to re-establish their strategy to compete with other
airlines. Political, economical and social issues also have an impact on the marketing of
products. These are uncontrollable elements. Nobody can control them. So they should
make their strategy in such a way that they have a little effect of these uncontrollable
elements. As people are very aware about the products or services which they are buying so
the organization should need good public relation. Some recommendations are provided for
the effective marketing and public relation strategy. With the help of these suggestions they
can improve the marketing of their services and also their public relation.
10. References
1. Anon1 (2011) history of jet airways [ online] available from:
http://www.makemytrip.com/flights/jet_airways-history.htm[accesed date]
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