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  • APO Group 10

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    namrata aggarwal
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    1) SpiceJet CEO Neil Mills announced a profit of 102 Cr for the third quarter of 2012-13, compared to a loss of 163 Cr in the previous quarter. 2) Neil Mills was unsure if the company's turnaround would be sustainable, but was positive about the fourth quarter results due to the launch of their "Big Sale" offer. 3) The "Big Sale" offer aimed to stimulate demand and capitalize on funds by selling tickets for as low as Rs. 2013 in 2013 through irrational pricing that started a price war with competitors.

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    1) SpiceJet CEO Neil Mills announced a profit of 102 Cr for the third quarter of 2012-13, compared to a loss of 163 Cr in the previous quarter. 2) Neil Mills was unsure if the company's turnaround would be sustainable, but was positive about the fourth quarter results due to the launch of their "Big Sale" offer. 3) The "Big Sale" offer aimed to stimulate demand and capitalize on funds by selling tickets for as low as Rs. 2013 in 2013 through irrational pricing that started a price war with competitors.

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    © All Rights Reserved
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    11 views8 pages

    APO Group 10

    Uploaded by

    namrata aggarwal
    1) SpiceJet CEO Neil Mills announced a profit of 102 Cr for the third quarter of 2012-13, compared to a loss of 163 Cr in the previous quarter. 2) Neil Mills was unsure if the company's turnaround would be sustainable, but was positive about the fourth quarter results due to the launch of their "Big Sale" offer. 3) The "Big Sale" offer aimed to stimulate demand and capitalize on funds by selling tickets for as low as Rs. 2013 in 2013 through irrational pricing that started a price war with competitors.

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    © All Rights Reserved
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    of 8

    APO - 10

    SPICEJET
    BIG SALE OFFER
    Adding spice to air travel
    BRIEF
    On 27th January, 2013, Neil Mills, CEO of
    SpiceJet, announced the 3rd Quarterly
    result of 2012-13 which showed a profit of
    102 Cr. in comparison to the loss of 163 cr.
    in 2nd quarter of 2012-13.

    Neil Mills was in a dilemma of whether the


    company is going to have a sustainable
    turnaround or not, though he was positive
    for the 4th quarter result because of
    launch of “Big Sale” Offer.
    HISTORY OF SPICEJET (TIMELINE)
    Company was renamed to Roping of Wilbur Ross and
    Modiluft Ltd. Tried to revive the Company
    operations
    Included 5 international

    08
    94
    destinations as well and

    20
    19
    implementation of "Big

    2000
    Changes in Air

    2005
    Corporations Act (1953) Sale" offer
    1993
    19

    2012
    91

    Beginning of SpiceJet

    1996
    S K Modi decided to enter
    the Civil Aviation Sector

    2010
    1984

    Differences between the


    companies lead to shut
    down off operations Neil Mills took the charge
    Company started under a as CEO
    different head name
    AIRLINES INDUSTRY IN INDIA
    Civil aviation in India started in 1932
    Entry of many new players like Damania, NEPC, East West, etc. because of liberalization policy
    Jet Airways started as an air taxi in 1992 and took over Air sahara in 2006
    Next wave of exhilaration
    Intense competition lead to merge of the government carriers and to run under the name of Air India
    Growth in the industry was less than the expectations leading to number of problem
    Shut down of Kingfisher in 2012
    PREVIOUS PROMOTIONS BY SPICEJET

    "RED HOT SPECIAL FARES" Campaign


    Tickets ranged from Rs. 99 to RFs. 799

    SPICEJET 7TH ANNIVERSARY


    Fare was Rs. 777

    "FREEDOM TO FLY" Campaign


    100% discount was offered to army personnel on basic fare

    "BIG SALE OFFER"


    Tickets costed Rs. 2013 in 2013
    Improved PLF and market share
    (though revenue dropped in Q4)
    Irrational Price
    (start of pricing war)
    Selling off Empty Seats

    Decrease in Prices of Rivalry


    Stimulating Demand

    Crash in website due to traffic


    Capitalisation of Funds

    More Inventory Poor Customer Experience

    Change in Consumer Perception Similar Price Promotion


    (negative to positive) (downfall of Air Deccan)

    More Consumers
    RECOMMENDATIONS

    FOCUS OFFERS
    Special offers during festivals, offers for
    Focus should be more on increasing college students & doctors are
    the profit & maintaining a 75%+ PLF. recommended. Marketing for the same
    A competitive pricing strategy should should be done through trusted channels like
    be implemented. newspapers & TV adds focusing on less
    travelling customers.

    SERVICES EXPANSION
    Rather than charging less for services like SpiceJet should focus on expanding its
    food, drinks & seat type, all such services services to different destinations both
    should be charged later as an optional national & International and continuously
    add ons. increase its fleet.
    THANK
    YOU

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