STP OF AIR INDIA

(formerly INDIAN AIRLINES)

By:
Sneha Sinha(BBA/4555/08)
Chandan Sinha(BBA/4598/08)
 ABOUT AIR INDIA.
• Founded by J.R.D. Tata (the father of Civil
Aviation in India ) in 1932.
• Indian (इंडियन), formerly Indian Airlines
was a major Indian airline based in
Mumbai and focused primarily on
domestic routes, along with several
international services to neighbouring
countries in Asia.
• The Indian airline was set up under the Air
Corporations Act, 1953 with an initial
capital of 32 million and started
operations on 1 August 1953.
 ABOUT AIR INDIA contd

• In 2007 Indian airlines merged with Air

India under a new company called
NACIL(NATIONAL AVIATION COMPANY
of INDIA LTD).
• Air India operates closely with Indian,
India's national carrier.
 CODE SHARE AGREEMENTS.
Indian has code share agreements with the
following airlines:
• Air India Regional
• GMG Airlines
• Gulf Air
• Uzbekistan Airways
• Turkish airline
• Kuwait airways
• Lufthansa.
 LIVERY
• The aircraft livery used while the company was
called Indian Airlines was one of the longest in
continuous use in the airline industry. Its aircraft
were mainly white, with the belly painted in light
metallic grey. Above the windows, "Indian
Airlines" was written in English on one side and
Hindi on other.
• The logo of the new airline is a red coloured
flying swan with the `Konark Chakra' in orange,
placed inside it.
 FLEET.
• Indian operates an all Airbus fleet
consisting of the A320 family.

• Airbus A319-100 : in service

24,386 passengers.
• Airbus A320-200 : in service
28,146 passengers.
• Airbus A321-200 : in service
20,176 passengers.
 Contd..
• Operates to 64 stations out of which 17 are
connected to international destinations.
• The Airbus A321 aircraft connects all major
metros, including all flights on the Delhi-Mumbai
sector.
• Convenient connectivity has been provided
to/from major metros like Chennai, Kolkata,
Hyderabad and Bangalore for passengers
booked on the NonStop flights.
• Air India Express operates 200 weekly flights on
its network between 17 Indian cities.
AIR INDIA NETWORK.
FLYING WITH INDIAN
• Spacious cabin, comfortable
seats and the luxury of in-
flight entertainment make
this a superior product that
travellers look forward to.
As more and more A321s
and A319s join the fleet,
they will gradually replace
the A320s which are
currently deployed on many
domestic sectors.
 FREQUENT FLYER
PROGRAMME.
• Air India has a Frequent Flyer Programme branded
"Flying Returns”. Members of the Flying Returns
Programme (FRP), the most attractive FRP for the
Indian traveller, can accrue mileage points while flying on
Air India, Lufthansa and flights of Air India’s code share
partners, and redeem them for award tickets on Air India
or Lufthansa. Through tie-ups with leading hospitality-
associated organisations in India, members can earn
additional mileage points to redeem their tickets faster.
"Flying Returns" has a membership of nearly 6,00,000 in
India, the Gulf, UK, USA, Canada and South-East Asia. 
 Dining
• The airline offers a choice of
menus to suit all types of
palates. There is western
nouvelle cuisine, an appetizing
choice of Asian specialities.
• Besides, if any passenger has a
special food requirement, he
can choose from any of the 23
special meals.
• Alcoholic beverages are served
complimentary in first class.
 OTHER SERVICES
• In flight entertainment- channel for Regional songs
,Japanese channel is available for our Japanese
passengers.
video programmes include a choice of the most recent
English and Hindi feature films.
• Air India Express- Online bookings can be done on
http://www.airindiaexpress.in/   
• Facilities on the Ground- lounge for transit passengers at
Mumbai Airport is equipped with shower facilities, Wi-Fi, a
gymnasium and a business centre. At other international
airports, Air India has tie-ups with other international
airlines or local Airports Authorities for lounge facility.      
 
 Contd..
• Speedy Message
Service (SMS)
• Advance Check-in
• E-Ticketing
• Air India Call
Centres
 Indian (New Horizons enduring
values)
• The carrier was a monopoly provider of
scheduled domestic air service until 1994, when
deregulation took place. The national carrier has
been positioned as a reliable, economic brand
which reaches out to all destinations including
those not covered by the private airlines. After
years of neglect the carrier also rebranded in
2006 with a new livery and logo, which
emphasizes the name “Indian” rather than
“Indian Airlines”.
 Re-BRANDING
• The process of re-branding took place in 2005.
• The steps in the way to re-branding of Air India
by DMA -
• Dropping of hyphen from its , name i.e. from
“Air-India” to “Air India”.
• Tagline “Fly Well” adopted.
• Designing the seats (by DMA).
• New uniform (new look to traditional sari)
designed by Ritu Beri.
• A graphic swan with Ashoka Chakra design.
 BUYING PROCESS
Total set Awareness test Consideration set Choice set Decision

•Air India • Air India

•Air India
•Kingfisher • Kingfish
er •Kingfisher •Air India
Airlines
Airlines Airlines •Kingfisher •Air India
•Jet airways
• Jet •Jet airways Airlines
•Indigo
•Spice jet airways
• Indigo
SEGMENTATION
 SEGMENTATION contd

• Segmentation involves finding out what

kinds of consumers with different needs
exist.
• Some look for price while others are more
interested about services provided and
reliability.
• Indian segments consumers looking for
privacy and luxury and those who are
willing to pay for the brand name.
 SEGMENTATION contd

Indian suggested that in order for market segmentation

to be effective, all segments must be:

• Distinct—is each segment clearly different from other.

• Accessible—buyers should be reached through
appropriate promotional programmes and distribution
channels.
• Measurable—the segment should be easy to identify and
measure.
• Profitable—the segment should be sufficiently large to
provide a stream of constant future revenues and profits?
 SEGMENTATIONcontd
Attributes
Income(demographic)
Location(geographic)
Age Group (demographic)
Purpose of travel(pschographic)
Lifestyle (psychographic)
Occupation(demographic)
Loyalty (behavioral)
Usage rate (behavioral)
Family life cycle(demographic)
Seekers
Rs. 3 lacs to Rs. 5 lacs p.a.
Tier  - I, Tier - II
30-55yrs
Business, Leisure
Orthodox/conventional
Business executives
Loyal/switchers
Frequent
Older, married having older children
 TARGETING.
• They target young married,old married professionals
(age group 30-55) with small kids and with income levels
more than Rs 5 lakhs per annum; who generally
commute between Tier 1 and Tier 2 cities ; travel for
business and leisure ; frequent fliers. These fliers are
generally observed to be hard core loyals.
• Target mainly on professionals and upper class people
• Moreover Air India target the government employees
entitled to air fare from their department, for LTC(leave
travel concession) or the department trip.
POSITIONING.
 POSITIONING contd

• The positioning for Air India has been focused

as a quality & premium traffic airline.
• The coverage of its new avatar has got excellent
media hype. Advertising & Public relations have
communicated its new image.
• Consumers know that they just have to pay a bit
more for high level of comfort during the journey.
This shows how efficiently they have positioned
themselves in the market as a premium brand
that provides high quality service at a bit extra
cost.
 POSITIONING contd

• It is also positioned as reliable economic brand which

reaches out to all destination including those not
covered by the private airlines
• Along with this it also tries to position itself as a
premium brand airline that would compete with the
world.
• Air India portrays itself as the full service carrier airline
with unparallel and unique in flight entertainment
option.
• Moreover Air India carry the image of a state owned
carrier, which gives the customer a sense of trust.
 POSITIONING STARTEGY.
Air India uses marketing communications in
one of two main ways to position:-
• brands, namely to position a brand either
functionally or expressively (symbolically).
• Functionally positioning emphasizes the
features and benefits, whilst
• expressive positioning emphasize the
social and hedonic satisfactions that it can
bring. Both approaches make a promise.
 OFFICIAL MASCOT

• THE
MAHARAJA
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