MARKETING MANAGEMENT

PROJECT REPORT
ON

INDIAN AVIATION INDUSTRY

Submitted By: Group 2(Section-B)
Akash P R (21062)
B Manu (21072)
Jakkampudi Moulithya (21082)
Nisarga T Darya (21092)
Sudarshana Sharma K S (21112)

Session 2021 – 2023

Submitted To:
Dr.S. Saibaba

Shri Dharmasthala Manjunatheshwara

Institute for Management Development
No. 1, Chamundi Hill Rd, Siddhartha Layout, Mysuru, Karnataka 570011
 PHASE III
(STP & MARKET RESEARCH)
SI.NO TITLES Page. No

AVIATION 1
1 1.1 Market Segmentation 1
1. Ready To Travel 1
2. Faithful To Company 1
3. Emergency Travelling 2
4. Travel On Business 2
5. Price Sensitive Segment 2
1.2 Target Market 2
1.2 Aero Market Coverage 3
1. Aerospace 3
2. Defence 4
1.3 Airlines Market Research 5
1.4 Airlines Market Research Solutions 6
COMPANY STP & RESEARCH
2 VISTARA 7
2.1 Segmentation and Target Market 7
2.2 Positioning and Market Research 8
3 AIR INDIA 9
3.1 Marketing Campaigns 9
3.2 Segmentation 9
3.3 Target Market 10
3.4 Positioning Strategy 10
4 SPICEJET 11
4.1 Marketing Strategy 12
4.2 Marketing Research& Analysis 12
4.3 Segmentation 13
4.4 Targeting 13
4.5 Positioning 13
5 KINGFISHER 14
5.1 Segmentation 14
5.2 Target 14
5.3 Positioning 14
5.4 Market Research 15
5.5 Market Research on Downfall 16
6 INDIGO 17
6.1 Segmentation 17
6.2 Positioning 17
6.3 Target 18
6.4 Market Research & Strategy 18
 AVIATION

Market segmentation
Airline passengers are often separated depending on their seats, such as economy vs. business or first
class. There is some insight into customer willingness to spend on additional services and their overall
price responsiveness, but not much into their needs and reasons when it comes to air travel.
Here's a look at five different categories in the aviation industry. Demands, evaluations, and purchase
strategies are all different for each group. The five categories of market segmentation are as follows:
• Ready to travel again
• Faithful to company
• Travel on business purpose
• Emergency travelling
• Price sensitive segment.

Ready to travel again:

It's a group of non-business consumers who travel a lot by plane. They're older clients, perhaps retirees,
who have enough time and money to travel frequently on a frequent basis. According on their route and
experiences, some of them may opt to remain with a chosen few airline. They’d want a little bit of
luxury, and presumably wouldn't select an airline based only on pricing. They would also be less inclined
to do research on airlines because they are seasoned travellers. Travel blogs and other such sites are
more likely to be influential for those who have a lot of opinions. Many of them would want to travel in
a more comfortable manner and are unlikely to pick an airline only on pricing. They would also be less
inclined to do research on airlines because they are seasoned travellers. A higher percentage of them
will be opinion leaders, such as those who write for Travel websites or a site like that. Their purchasing
habits make them appealing and valuable consumers in the airline industry, and their impact on other
consumers' purchasing decisions makes them even more important.

Faithful to company:

Another group of regular flyers makes up the second group of aircraft customers. While many travel for
individual matters (holidays and family events), others travel for business objectives (such as business
trips). With a single airline as their focus, their section name says it all. This is due to the accumulation of
frequency and loyalty points, which may be redeemed for free rides in the future. Their brand loyalty
may cause them to develop an emotional attachment to the airline's brand, making them less price
sensitive and less inclined to investigate other carriers. This is a fantastic target market for airlines
because of their devoted client base. This market segment is notoriously difficult to attract because they
are rarely change airlines.

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Emergency travelling:

Travelers who needs to fly urgently don't utilise aeroplanes very often, and they constitute a rather tiny
market segment. These customers have a sudden and urgent desire to travel. They are more anxious
about flight availability and destination needs than any consideration of pricing or airline brand.
Travelers who needs to fly urgently don't utilise aeroplanes very often, and they constitute a rather tiny
market segment. Typically, air carriers will keep a few tickets on each plane for sale at higher cost in the
fore time before the flying is anticipation that a certain percentage of individuals need to travel
instantaneously.

Travel on business purpose:

Many of an airline's domestic customers are business travellers. Due to the necessity to often travel by
plane, many firms operate in several areas of the nation or have sales possibilities in other locations. On
the other hand, business clients tend to choose an airline as a group rather than as an individual. Many
businesses, especially those with frequent travellers or those who are in managers and supervisory
positions, prefer to fly in business suite. Due to the high level of brand loyalty, this market is less
concerned with the cost of a flight's tickets than other markets. Sometimes, a deal with a large
corporation, institution, or even federal agency will be established by the airlines to ensure long-term
success.

Price sensitive segment:

Cheap air travellers are more likely to be vacationers, or customers who don't notice much of a
difference between carriers.

When it comes to online shopping, certain individuals seem to be more price-sensitive than others. In
the absence of first-hand experience, infrequent travellers may rely on a price strategy to streamline
their selection and save effort.

Customers who don't want to be tied down to a single airline will find the lowest price and greatest
value.

Keep in mind that some consumers are low-income earners, while others employ cost as a point of
differentiation in their purchase.

Target market:

A target market is a cluster of people who have some common characteristics that a company has
identified as potential customers for its products. In passenger aviation industry the product is nothing
but seat that’s offered. Air cargo is an additional service in passenger airlines. People usually choose use
airlines for various reasons few of them are leisure (vacation), business purpose, students travelling out
of the county or state for the purpose of studying etc.
➢ People who are travelling for business purpose are of middle age group (35 – 55), frequency,
punctuality and easy accessibility is important for them, they usually prefer service from a
nearby airport. These passengers demand for separate check-in, separate waiting area and

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 separate business class cabins. Here the nature of the journey will be frequent, the distance
may vary.

➢ People who are going for holidays usually prefer low cost and includes passengers of all age
groups. Nature of the journey will be long distance and non-frequent.

➢ Students who are travelling also prefer low price along with additional services of cargo.
Usually, it will be long distance travelling.

Almost all the passengers who travel on route will return, so we should concentrate on retaining the
existing customers for maximizing the revenue.

Aero Market Coverage:

Business research companies provide data on worldwide market size, growth, drivers/restraints, and
trends for 39 markets in the aerospace industry. It's important to understand how the market is divided.

1.Aerospace
Aircraft maintenance, repair, and overhaul services are also included in the aerospace market.
Entities that manufacture commercial aircraft also provide aircraft supplementary equipment
like radar and flight control systems.
• Aeronautics
• Air passenger carrier manufacturing
• Maintenance of carriers, mending and Overhaul Services
• Manufacturing supplementary Equipment

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2. Defence
The safeguard market comprises of deals of air-based, ocean based and land-based military hardware by
elements (associations, sole brokers and organizations) that production air-based, ocean based and
land-based military gear including backing and helper gear like radar, satellites, sonars and other
assistant gear or keep up with, fix and update guard gear.

• Air based Defence Equipment Manufacturing

• Sea based Defence Equipment Manufacturing
• Land based Defence Equipment Manufacturing
• Defence Equipment Maintenance, Repair and Overhauling Services
• Support and Auxiliary Equipment Manufacturing (Equipment, for example, Radars, Satellites,
Sonars and others are incorporated)

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 Airline Market Research

Operators in the airline sector have been faced with both possibilities and problems as a result of the
industry's recent tumultuous past.

No longer is it only low-cost operations that have changed the business model; it's also the emergence
of true "multinational" carriers operating across the EU and beyond. Arab airlines like Emirates and
Qatar Airways are expanding internationally.

As low-cost carriers such as Norwegian Airlines grow in popularity, airlines are stretching their itineraries
far beyond the conventional transatlantic routes. All passengers benefit from the cheaper rates offered
by these airlines since they "unbundle" their product offerings. It's up to the passengers to decide
exactly what they want, and then pay for it.

There are challenges. Profitability may be drastically affected by oil prices. The European Carriers
continue to be plagued by labour strikes. Flight operations and aircraft production can be affected by
supply chain interruptions. To cope up with the disruptive development in the dynamic environment,
market research is the only effective tool which companies can employ to gain edge over their
competitors and to gain long term customer loyalty.

Airline Market Research can provide:

Data
Information
Insight
Innovations
Intelligence
Action Plans
Strategies
Recommendations

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 Airline Market Research Solutions

There are ways to run focus groups with consumers to

Consumer Research (Focus
find out why they select or don't choose your airline based
groups)
on their level of knowledge of the airline.

When conducting a quantitative study on attitudes and

Understand your customers
use, customers' choices of locations and airlines are
(Quantitative Online surveys)
quantified.

may follow and report competition ads in the media,

Market and
online, in print, and on billboards, and do so continually.
Competitor Intelligence
They cover airlines and destinations, as well as a brief
Tracking
description of the airline.

will be able to find out what airline’s consumers prefer

Telephone Interviews with
and why. Is there a reason why they don't suggest this
travel agents
airline above others?

Can compare brand awareness between the airline's and

Brand Tracking
its rival's brands on an ongoing basis

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 VISTARA

Segmentation:

In aviation industry, segmentation is usually based on income level of the customers. Most of the
companies differentiate their flight experience according to the price for example better leg space, food
service etc.
Vistara made a bold statement by stating “every penny worth” and is trying to overcome the
stereotypical approach of price-based differentiation of in-flight experience. They are trying to deviate
from price-based competition and focusing on customer satisfaction and memorable experience which
in-turn creates Loyal customers in the long run.
By prioritizing the in-flight experience, Vistara aims to differentiate its brand in a highly competitive
business environment. They are hoping to get away from the price-driven differentiation approach that
all Indian airline companies have been compelled to follow in recent years by introducing a new fleet
with more comfortable seats and a more enjoyable experience.
It will be daunting to break through the customer's perception and offer an experience that lives up to
the brand promise.
Contrary to its rivals, Vistara doesn't offer significant discounts to get you to sign up. Over 15,000
promotional seats were made available to commemorate the debut of AirAsia India, the other joint
venture between Tata Son and AirAsia Bhd, in May. Singapore Airlines is well-known for its exorbitant
prices.

Target markets

Railway passengers who have a preconceived impression that planes are more expensive than trains.
Potential clients from other airlines who are dissatisfied with the price and service they receive from
their own carriers.
About 60% of the target market is composed of official commuters, with the other 40% consisting of all
sorts of passengers from India's major cities, including Delhi, Mumbai, Bangalore, and Chennai.
Individuals are classified according to their personalities, attitudes and way of life. First-class railway
passengers with an annual income of more than 300.000 Indian rupees are the psychographic target
audience.
Even the second tier of cities has a chance to be profitable. Subgroups of customers can be identified
based on factors such as age, occupation, family size, and language proficiency.

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Market research and positioning

Vistara is trying to position its brand differently by concentrating more on flight experience and trying to
withhold the concept of ‘fly the new feeling’. After doing extensive market research Vistara came to that
Indian traveler are perceive flying as a laborious process which helps them only in reaching there
destination basically a mechanical process. Hence, they aimed at redefining the entire process of
travelling.
They conducted the brand campaign portraying the literal meaning-the joy of flying. By doing this they
tried to get emotionally connected with the customers and were quite successful. They also introduced
new segment of travel – Premium Economy which included priority boarding and check-out.
In the domestic market, a three-cabin service is a first, and it is sure to cause some enthusiasm in the
retail and business travel segments. It is likely that the increased inventories will lead to appealing
pricing in the months to come, leading with the boost in demand," says Sunny Sodhi of Yatra Online Pvt.
Ltd., online booking operator.
Vistara offers club Vistara a quickest and gratifying frequent travel program in India. With Club Vistara,
Vistara is India's first airline to give loyalty points based on real expenditure on tickets rather than miles
flown, rather than miles flown. As a result, there is no longer a tangible loyalty card. This means that the
amount of money spent on travel is considered when awarding points to registered Club Vistara
members. As a father or mother, you can earn points by booking for up to five relatives.
Because the brownie points earned are directly connected to the expenditure, the value-based scheme
is more equal "Vistara's CEO made the statement. Moreover, it's clearer to customers and more user-
friendly. A growing trend in the travel business is a shift to a value-based system, as indicated by recent
industry developments." They did this after carefully considering jet airways loyalty package based on
miles.
A fresh travel experience for all consumers is their brand commitment, and they feel that their three-
class design will help them achieve that "Yeoh chimes in. Travelers who want the extra room and
facilities to work or relax without having to pay for a business-class ticket will enjoy our premium
economy cabin."
By employing the above mentioned method they are trying position themselves as budget worthy
airlines rather than budget friendly.
They are trying to communicate with its potential customers through business magazines, digital media
including cinema and airports.

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 AIR INDIA

Marketing Campaigns – Air India

Exhibiting endeavours advance things through different kinds of media, similar to TV, radio, print, and
online stages. It advances the item as well as sends a significant message to associate with the client.
Missions did via Air India ensures the best and the most secure travel insight.

Segmentation Strategy of Air India

Parts like age, sex, and psychographics/obvious economics expect a basic part in party everyone subject
to comparative attributes busy with this association, explicitly. Air India utilizes a blend of financial
matters, psychographics, and geographic division systems.
The brand uses an undifferentiated target framework due to which it is passing up a major opportunity
slice of the pie in the genuine market. It uses a mascot to make an undeniable picture in the mind of the
purchasers. The arranging approach designs the association's image and thing to include a basic spot in
the purchaser's mind. It uses a Value-based arranging procedure for making a brand image of sincerity
and a rich system

Major Factors chosen for Segmentation

➢ Income
➢ Usage Rate
➢ Value for Money

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Below Figures justifies the fact how factors influence the different segments of Low income, middle
income and high income

Target Market Strategy of Air India:

Air India Should follow a Multi section technique to target various portions
Marketing Mix1- Low charges, Economy class travel, Easy ticket booking by means of movement work
area/on the web, Ads through papers, radios, TVs
Marketing Mix2- Low/Medium Fares, Economy class travel, ticket booking through sites/travel work
areas/mobiles. Advertisements through papers, online media, versatile promotions.
Marketing Mix3- Typical/High Fares, Business/Economy class travel, Ticket booking by means of
sites/mobiles/specialists/travel work areas, Ads through portable, online media and individual offers
giving.

Poistioning Stategy of Air India:

To the pilgrims who need to travel huge distances in a restricted ability to concentrate time, Air India is
the transporter that gives you the best on-flight understanding with on time execution and negligible
cost ticket esteeming.
Worth degree of air India will be to give adequate customer help, speedier accessibility at worthwhile
timings and at a more affordable expense.

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 SPICEJET

Marketing Strategy Introduction

For successful marketing strategy at Lccs SpiceJet, the marketing managers need– understanding of
customers’ fundamental needs and drivers of those needs, conceptualizing products and services that
can meet those needs and are feasible in Lccs SpiceJet financial and intellectual resources, and finally
developing marketing mix for entire go-to market strategy.

Objectives of Different Types of Marketing Strategies

Improve customer loyalty of Lccs Spicejet customers – Marketing efforts can be used to increase loyalty
among existing customers by organizing events, and by providing post purchase information and
services.
Bring in new customers to Lccs Spicejet – It may involve launching version of product that can appeal to
new segment of customers or entering into new markets.
Get existing customers of Lccs Spicejet to buy more – It often involves selling accessories along with the
existing products or increase the usage rate of the existing products. Increase usage rate is
comparatively a difficult task even with a war chest of huge marketing resources.
Introduce a new product or service of Lccs Spicejet – It is the traditional function of marketing mix –
launching a new product and communicating its features, superior value proposition, and uniqueness.
Increase sales of Lccs Spicejet – The goal of marketing efforts is to increase sales of the present
products. It may involve selecting a new target segment or positioning an existing product differently to
a new segment.
Increase market share of Lccs Spicejet – Marketing efforts can be used to increase market share either
by driving increase in sales to new customers or by driving higher sales to existing customers.
Better establish the brands of Lccs Spicejet – Brand awareness and positioning is one of the critical
objectives of marketing and often organization spend a significant part of marketing budget on brand
positioning.
Marketing Research and Analysis:

The first stage of the marketing process at Lccs Spicejet is to do research and analysis to identify unmet
and even unknown customer needs. A good point to start for the research and development is to
conduct a 5C Marketing Analysis . The 5C Marketing Analysis framework comprises –

Customer’s Needs– What are the needs that Lccs Spicejet seek to satisfy. Who are the present
customers and who are the potential customers for the new product or service.

Company – What are the resources and special skills that Lccs Spicejet needs to possess to create
products that can fulfill the needs of the prospective customers. Check out the detailed SWOT Analysis
for Lccs Spicejet on the following page.

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Competitors – Who are the competitors in the target market and what value proposition they are
offering in the market place. Do they possess enough financial and knowledge resources to develop new
products to compete with Lccs Spicejet.

Collaborators – What sort of supply chain and value chain partners Lccs Spicejet needs to develop and
deliver new product to final consumer. What are the respective bargaining powers of value chain
partners.

Context – What are the macro and micro environment factors that impacts the business environment in
which Lccs Spicejet operates in. You can check out PESTEL analysis of Lccs Spicejet in greater detail on
the following page.
Selecting Target Customer Segment
The second step of Marketing Process after completing the 5C analysis is – Selecting the Target Market.
It requires three steps –
Segmentation:
Market segmentation is the process through which marketing managers at Lccs Spicejet can divide the
large market into smaller segments based on distinct needs, characteristics, or consumer behavior. Lccs
Spicejet can do segmentation based on following criteria – geographic, demographic, usage, user status,
income, lifestyle, value proposition priorties, benefits sought, loyalty status, gender, social class, self-
perception, psychographic factors, and other attitudes.

One of the most widely used multivariate segmentation system is – PRIZM, developed by Claritas. It is
widely used by various marketing and advertising agencies. It comprises 68 customer segments based
on the US Household Purchasing Preferences data.

Targeting:

Once the overall market is divided into various segments then Lccs Spicejet needs to choose a target
segment or few target segments. The key is not to be everything to everybody as the products can only
deliver specific value proposition.Conducting a Segment Attractiveness Analysis
First step in the targeting process is to conduct a Segment Attractiveness Analysis. Under the Segment
Attractiveness Analysis all the segments are evaluated based on the following criteria –
Mode of competition and business models – Sometimes the way competitors compete shape the whole
landscape of an industry. For example, email can easily be - paid product- , but organizations chose to
make it free products to increase customer base and lure in advertisers. So, if Lccs Spicejet is trying to
enter a segment where revenue from other division is financing the core service then it has to build a
requisite business model where revenue is driven by an adjacent or related product and service.
Profitability in various segments – Some segments often have higher margins compare to another as
explained in the automobile industry example above.
Maturity of the market – For example within the car industry the SUV category is more mature than
Electric Vehicle market, so the margins can be very limited in the SUV category but the demand
forecasting is easy. On the other hand, EV division can have higher margins because of lower
competition but the demand forecasting can be a difficult process.

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Customer behavior and loyalty analysis – How customers are behaving in each segment and are there
opportunities of over lapping. Loyalty behavior analysis is also a critical factor in analyzing the
conversion rate if the Lccs Spicejet core strategy is based on attracting existing players’ customers.
Differentiation & Positioning:
Differentiation process involves how Lccs Spicejet is differentiating its products and services in the
market place compare to its competitors. Positioning is the position of the brand or Lccs Spicejet
products in minds of target customers – based on distinctive features, qualities and functions.
The differentiation and positioning task at Lccs Spicejet require marketing managers to do -Identify
competitive advantage or unique value proposition on which position the brand in the mind of the
consumers.
Choose competitive advantages that are most compatible with Lccs Spicejet marketing strategy.
Marketing managers at Lccs Spicejet can make perceptual maps to better understand competitive
positioning of various brands in the market place.
Finally Positioning the brand as a deliverer of superior value to the target segment and effectively
communicating that position to consumers using marketing mix and promotion mix.

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 KINGFISHER AIRLINES
STP ANALYSIS

Segmentation:
Geographic:
Second-tier cities:(Delhi, Mumbai, Kolkata)
Cochin, Pune, Ahmedabad, Hyderabad, Indore, Jaipur, and other cities are among the focus
cities.
Demographic:
Gender-Male & Female
Age group of 25 to 45 years in social classes.
Groups with higher-middle and higher incomes.
Those that are searching for a fantastic flying experience are upwardly mobile, contemporary, and
stylish.
Target:
” Company executives”- Kingfisher First Class
“Middle, Upper-Middle, Lower-Upper segments”- Kingfisher Class:
The target demographic for Kingfisher airlines is people between the ages of 25 and 45. This
group had travelled extensive & is knowledgeable about foreign travel experience. They're
young, trendy, and upwardly mobile, and they're searching for a fun flight.
People in their 20s and 30s who do have small children and earning much more Rs. Seven lakhs
per year, commute btw Tier 1 & Tier 2 cities, travel for commercial business or pleasure and
enjoy luxuries life are their target market. It is believed that these fliers are ardent supporters.

POSITIONING: (Lifestyle, Benefits, Quality)

KF Airline referred as a budget-carrier rather than a low-cost carrier.
Fares were higher than LCCs, but cheaper than Jet, Sahara, and Indian Airlines' economy class fa
res.
On all traffic routes, Kingfisher Airlines also permitted numerous fare variations and ticket auctio
ning.
The only word that comes to mind when people think of KF Airlines is “EXPERIENCE”.
KingfisherAirlines introduced an innovative category called AviationHospitality, emphasizing the
importance of hospitality and service.
Consumers understand that a higher level of comfort during the travel is only a small price to
pay.

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 In this way, the company has demonstrated an ability to position itself within the market as
luxury brand can offers sky-quality services at a massive premium.

Market research
Kingfisher Marketing Strategy:
In order to promote passenger loyalty program, Kingfisher uses co-branding/strategic partnerships
similar brands.
An annual marketing budget of around Rs 40 crore is spent by the company every year on different
media and non-traditional strategic marketing acts.
Also, Kingfisher First, A promotion to advance its premium-class service, has been launched by the
company.
The KF airlines is planning immense of series of online adv. On the other hand, they're looking into
partnering with luxury hotels to increase traffic in these areas.
It has been announced that KF Airlines is offering a special deal to all members of India's armed forces as
well as to the federal government, state governments.
"Funliners" were portrayed in airport advertisements as having modish interiors and a youngly, joy-
filled, world-class experience.
KFA used fashion events, celebrity tournaments, and New Year's Eve celebrations to build its brand
"Kingfisher Airlines", among other things.
For example, in August 2005, KFA launched the "King-Card" in collaboration with ICICI Bank as a way to
promote its sales. These actions were taken to build a loyal customer base. According to KFA's plan, the
program would create brand loyalty by providing benefits such as privileged access to KFA-affiliated
dining facilities and lounges as well as free airport refreshments as well as special invitations to lifestyle
shows.
In order to compete with Jet Airways, KFA focused on the business traveler segment of frequent flyers.
King Saver Booklet consist six unpaid(free) tickets and was given as a giveaway to passengers who
purchased two of these booklets, each costing Rs 26,999. Jet Members (Gold/Platinum) could take
advantage of this offer by showing their card.
.

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 Market research on Downfall of KINGFISHER AIRLINES:
RESEARCH METHODOLOGY:
Economic Times, Business Standards and TOI are some of the news sources that provided the data for th
is study. The Aviation Industry Analysis Report is another secondary source that provided data for this re
search.

FINDINGS:
There are Rs7,543 crore in loan money for Kingfisher Airlines and Rs14,123 crore in loan funds
for Jet Airways (India) Limited (debt to equity about 4.2). This has resulted in a total loss of
Kingfisher's net value.
It's Spice Jet Ltd that owes least amount of money (debt to equity ratio of around 0.7).
A negative net working capital of 1, 970 crore rupees has been recorded by Kingfisher on the
other hand.
Net working capital (excluding cash and bank) for Jet Airways is barely Rs560 crore, according to
the company, a tiny fraction of its total assets at Rs14,417 crore.
Spice Jet's fixed assets are worth a total of 115 crores of rupees.
But Kingfisher is not able to generate good profits, even in its last year’s-2011, when it was
supposed to be good.
Unaffected by capacity restrictions, Rupee 3,804/- was the domestic passenger yield, down by 3
percent.
Global guests yield increased by 5% to Rupees 10,864/- per passenger.
Nearly 213.4 crores in losses were delayed upfront taxes by Kingfisher under the "Deferred Tax
Asset" A one-time special item cost about Rs.79.25 crore.

KF Airlines share price from Sep-2010-2011

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 INDIGO
Market segmentation:
Indigo airlines demographics include approximately 65 percent official passengers and 35 percent all
other sorts of Indian travellers. Without dismissing the fact that even non-metro cities have the ability to
generate revenue. As indigo airlines are service providers, customers are segmented by occupation, age,
family size, and language. To Understanding the demographics of the target market which is critical in
long-term success of target marketing..
This segmentation mainly concerns people's lifestyles, attitudes and personalities. Indigo Airlines, being
an airline, takes customer needs into account, keeping the three perspectives are Safety, Schedule
Integrity and Economical Fares as a base to offer good customer service which relates straight to
relationship building
Market positioning:
Indigo Airline’s market position is critical because it is currently one of the finest low-priced airlines in
the Indian aviation sector, but it is not yet safe due to a high number of new competitors and the
presence of certain old competitors. which has the potential to be one of the best for many years to
come. Indigo Airlines will market itself as a carrier that provides a product that does not compromise on
service quality or commitment. It will establish a reputation as a reliable airline that offers low-cost
services.
The situation of indigo aircrafts in the market is vital as right now it is one of the most outstanding
minimal expense aircraft transporter in the Indian aeronautics industry anyway because of a ton of new
participants and the presence of some old contenders it is as yet unsure that it tends to be truly
outstanding in the following coming a very long time too.

Target market:
Consumer behavior is about understanding a consumer's mindset about what the consumer really
wants. IndiGo has done a great job of understanding consumer needs and designed its strategy to meet
its goals. Indigo Airlines delivers to middle-class people. Lower-middle-class people have a fixed belief
that air travel is more expensive than trains and are not happy with the price and amenity of existing
airlines. This is how Indigo targeted these individuals in the market.
• Indigo's target market is based on people's lifestyles, attitudes and personalities.
• Indigo Airlines focuses on targeting middle-class people
• Indigo has been able to build a loyal customer base over the years by building a strong and reliable
brand.
• The brand targets Tier 1 and Tier 2 cities to provide its services because most of its customers are from
cities.
Market research and strategy
IndiGo gets a large portion of its cash from deals and leaseback exchanges. These monetary exchanges
have assisted IndiGo with recording higher benefits. Sometimes, these exchanges have changed over
misfortunes into benefits, as on account of monetary 2011. Every deal and leaseback creates a benefit
of $ 4-5 million for IndiGo. Also, this fills in as working capital.

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IndiGo got more than 40% off the rundown cost when they put in a tremendous request. The retail cost
for an Airbus A320, the main sort of airplane utilized by IndiGo, was $ 55 million of every 2007, when the
carrier marked the arrangement. IndiGo just had Rs 100 crore (about $ 20 million) of cash from the
advertiser, however he figured out how to agree to 100 planes and fired with a low down payment.
The Indian aviation business is packed with different companies, each of which is dealing with its
profitability ratio and evaluating its tactics in order to stay in business in an increasingly competitive
market. Indigo, on the other hand, has maintained to the "low cost, lost price" approach. Indigo has
been progressively increasing the size of its fleet.
India aspires to become the world's second largest aviation market by 2025, and the industry is in the
midst of a rapid boom prompted by factors such as low-cost carriers, innovative technology, and
modern airports. By utilising some of these, companies like Indigo are propelling the market forward.
Indigo flies to 40 locations and operates 680 flights each day, allowing the firm to become a market
leader. Allow a third-party provider to handle onboard catering and grocery on a payable basis.

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