BMT6154 - SERVICES MARKETING – ASSIGNMENT 1

Customer acquisition and retention all cycles back to the quality of your marketing. No
matter what type of business you run, your ability to reach customers can be the driving
factor that increases sales. However, not all marketing efforts are created equal.

Service-based marketing is designed to address the special challenges that a service-based

business must deal with. Adjusting your methods can have a huge impact on your bottom
line. A service-based company is the one that provides customers, clients the ultimate
solution to their requirements or a service to another company. The service offered by the
company is intangible and can be provided in the form of skills, amenities, and expertise.

Service based companies/ service providers and their marketing strategies:-

Starbucks is perhaps the most famous coffee chain in the world. The main aim of Starbucks
is to become the leading brand and retailer of finest coffee in each of its target markets
nationally and internationally by selling the best quality coffee and related products, and by
providing high class customer service. The main reason for Starbucks success is the fact that
they provide a personal service to their customer. This service includes the greeting, the
flexible choices of customers' drinks, excellent service, genuine smile, friendly spirit and
remember the favourite order of the customers. Among companies with excellent customer
service, Starbucks is always on top of my mind by Delivering service excellence is not only
about establishing standards of service and training employees to deliver them.

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 Marketing strategy of Starbucks
Starbucks knows its audience is technologically advanced, which makes it imperative for
them to have a strong digital marketing strategy. It's clear how Starbucks prefers marketing
on platforms where they have two-way communication instead of platforms like print and
television which is more of one-way communication. Starbucks is conducting market
research program to get the valuable market information to continue the exchange relation
perfectly for business.

IndiGo is India’s largest passenger airline with a market share of 57% as of August, 2021.
We primarily operate in India’s domestic air travel market as a low-cost carrier with focus on
our three pillars – offering low fares, being on-time and delivering a courteous and hassle-
free experience. IndiGo has become synonymous with being on-time. Indigo offers priority
check-in and priority baggage service to its passenger with a service called Fast Forward.
This service is chargeable and Indigo charges INR 450 per person for one sector if it is a
domestic flight. For international flights, it is INR 650. This service is voluntary and not
mandatory.

Marketing strategies
At the core of IndiGo's success story is its strategy of operating only one category of aircraft,
the Airbus 320. ... Operating a single class of aircrafts helps the IndiGo in its cost-cutting
efforts, which is critical for the success of a low-cost carrier. The no-frills carrier has a clear
positioning – it promises to offer customers: “Fares that are always low”: Budget airline
positioning with consistent, low pricing but no heavy discounts. No business or first class
offering.Indigo has been able to capture the local market better than any other competitor 
 It mainly uses its low price and availability to boost its brand across the market

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 Indigo’s investments in advertisements are usually low because it affects the overall cost of
the company
 Instead, the company launches subtle and low-cost marketing campaigns to market its brand
 One such campaign was the “India By Indigo” campaign launched by Indigo for festive
seasons
 The above campaign was launched to celebrate the diverse Indian culture with festivals over
few months which included Durga Puja, Diwali, and Christmas
 Indigo has also launched several offers to attract customers like the “Freedom to Change”
offer
 The above offer launched by Indigo enabled people to make unlimited changes to their
booking at no extra cost
 Other marketing methods like billboards, print media advertising, and advertising on travel
ports have also been used by Indigo

Social Media Presence of Indigo Airlines

 
In today’s modern world, a brand is only valuable as its presence on social media. Social
media helps a brand to connect with its potential customers more efficiently. Through social
media, Indigo can reach a mass audience at a relatively less cost 
  Indigo uses various social media platforms to reach out to its potential customers who are
otherwise difficult to reach through traditional methods
 With the help of digital marketing, Indigo has been able to reach more and more customers
 Even though Indigo uses social media to promote its brand, one of the interesting things the
company did was going “Anti Social” with customer feedback
 Indigo used to show this message to people when they travelled with them. They wanted
people to send their feedback via text message and not through social media
 This is because Indigo realized that there will be always some customer complaints and that
will damage the brand image. Instead, they promoted feedbacks via text messages
 Even with all these precautions, Indigo has been in several controversies through social
media, the most controversial one being in a video shared through social media depicting an
Indigo employee mishandling a passenger

KAVITHA P – 20MBA1031