ORIENTAL

AIRLINES

Marketing Plan

Industry Overview .

Then again by 2020. Indian travellers are expected to spend more than US$40 bn in2010 rising to US $50 bn by 2012.The Opportunity y India is the 9th largest aviation market in the world. y According to UK based research firm Eyefortravel. Indian airports will in all probability handle over 280 million passengers every year. y Passenger traffic is estimated to grow at a CAGR of over 15% in the coming few years. . y The Centre for Asia Pacific Aviation (CAPA) has estimated that the domestic traffic will go up by 25% to 30% till 2010 along with a surge in the international traffic by 15%. y There would be more than 100 million passengers by 2010.

private airlines account for around 75% portion of the domestic aviation market. y More opportunities in the aviation industry in India are likely to make way for about 69 foreign airlines from 49 countries. y US$ 30 billion investment is envisaged till 2020 for developing the airport infrastructure.The Opportunity (contd. . y The two private FSA (Full Service Airlines) Kingfisher Airlines and Jet Airways accounts for 53% Market share.) y The investment plans to the tune of US$ 9 billion has been made by the Aviation Ministry for modernizing the existing airports by 2010. y At present.

Challenges y Intense price competition among the players y Competitive threat from low-cost carriers y Falling trend of Premium (Business class/1st class) traffic y Diminishing µProduct differentiation¶ y High aviation turbine fuel (ATF) prices y Rising labor costs and shortage of skilled labor y Infrastructure constraint .

Strategic Framework Market Share Objective Full Service Carrier Core Strategy Business & Leisure travelers Pan India Kingfisher Airlines Jet Airways Customer Targets Competitor Targets The Marketing Mix 4P .

however. the majority of surveyed travelers can not distinguish between the network carriers and low cost careers. schedule and no.Consumer Trend y The internet has expanded the awareness and choice sets for the average consumer. y Study reveals that most consumers rank choices based mainly on price. y For most differentiating items. y With choices a plenty and differentiation difficult. Business travelers. will pay a premium but the premium is extremely small. . most travelers purchase solely on price. of stops.

Creating Value  Better Ground Service in terms of convenient Check-in and safer Baggage handling.  Adding Personal Touch  Introducing Premium Economy class. Creating the USP O riental Sky to Land : We Care Why should someone fly with our airline ? Here we promise something more than µIn flight¶ experience which includes µground service¶ as well. 2. .The Roadmap y Product (The Offering) 1.

This can be achieved by ‡ Modifying the µHub & Spoke¶ system and design the route structure to increase the Average length of flights (to lower Cost per ASM)* ‡ Using bigger planes (low Cost per ASM) ‡ Uniform fleet (efficient maintenance) ‡ Improving operating efficiency by Cross-utilization of labor and better work environment.  Cost control is important to sustain a favorable µB-C framework¶.  However introduction of Premium Economy class is expected to generate better revenue.The Roadmap (contd. but they¶d still prefer extra leg room at a little extra cost.) y Price  Price should not be higher than µKingfisher¶ or µIndian¶ as the market is µprice sensitive¶. Cost per RPM= Cost per ASM/Load factor] . [*NB. Many passengers cannot afford First or Business class.

0 .g. a la µSouth East¶ way. This is a platform to add brand value.The Roadmap (contd. Start a µBlogger Relations Program¶ to initiate Word of Mouth marketing 2. µAgency Network¶ is still relevant to retain the corporate clients.) y Place As a FSA. y Promotion  Extensive ATL campaign to build the Brand and hammer the USP  In-flight Merchandising to build relation  Aggressive digital marketing using the Internet & Social Media. Creating a Facebook Fan Page instead of a profile to have a more direct viral marketing.   . however. The objective is to create a follower base. E.  Creating a Twitter profile of Oriental airlines with a 95% personal and 5% sales attitude where communication is more like and a person instead of a company. general travelers can be encouraged to do µdirect booking¶ with little incentive in terms of facilities.

Thank You .

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