1. Groupno : 07
PROF. Mr. Prasanna Sant
Submitted To:

2. Nitesh Gothankar
Roll No. 2212
Kannan Nadar
Roll no. 2225
Nihar Thirodkar
Roll no. 2248
Sumit Singh
Roll no. 2243
Vinayak Chilveri
Roll no. 2207
Abhinav Patel
Roll no. 2230

3. Introduction

4. Location

5. The IndiGo Dream…

6. Aditya Ghosh, President Rahul Bhatia, MD

7. History
Early beginnings:
Rakesh Gangwal Rahul Bhatia
Airbus 320-200:

8. Rapid Expansion
Rise to India's largest airlines
Destinations
Onboard… …

9. Company Information
IndiGo
Parent Company InterGlobe Enterprises
Category Indian domestic sector
Sector Airlines
Tagline/ Slogan Go IndiGo
USP On Time Performance, Lowest Price

10. Contd….
STP
Segment Cost Conscious Passengers
Target Group Lower Middle Class / Middle Class
Positioning Low Cost No Frills

11. Going International:
First International service
IndiGo’s first international flight to Dubai is greeted with a traditional
water cannon salute.

12. Mission
"IndiGo is a very quality conscious
airline and passenger safety is
paramount to our company’s mission
and values," the Gurgaon-based airline
said in a statement.
"IndiGo is in line with the ‘strategic
plan of the ministry of civil aviation
(MOCA) for 2010-15’, which
recognizes the need for growth."

13. Vision
IndiGo to go ahead with fleet expansion
"We will be adding 12 aircraft in the current year. We
had a fleet of 48 aircraft in December 2011 and this
number will reach 60 aircraft in December 2012,"
Aditya Ghosh, president
IndiGo is the only profit making airline in the country,
with a market share of 19.8 percent in November, 2011.

14. Competitors

15. External Analysis
Airline Industry Attractiveness
Foreign equity allowed:
Attraction of foreign shores:
Rising income levels and demographic profile:
Untapped potential of India's tourism:
Glamour of the airlines:

16. Porter’s Five Forces strategy for Airline Industry

17. Threat of New Entrants
Product differentiation:
Switching cost:
In aviation industry the major entry barriers can be:
Government regulations

18. Indian Civil Aviation Policy are:
Setup costs:
Fuel prices:
Resource:
Contd….

19. Bargaining Power of Suppliers
IndiGo fleet comprise of Airbus-A320 and the switching
cost is high due to the limited number of suppliers.
The brand value of suppliers is high due to their less
number and results in higher bargaining power for them.
The proof of evidence for high power enjoyed by ATF
suppliers lies in the fact that the ATF prices constitute 35-
40% of the costs in India compared to 20-25% globally.

20. Bargaining Power of buyers
Buyers in airlines industry are large in number and highly
fragmented thus lowering their power .With the growing
Indian economy and increasing low cost carriers, the buyers
have increased and so have the growth opportunities.
The switching cost is minimal since there are multiple
alternatives available. It is not difficult to move from one
airline to another or to switch to a substitute.

21. Competitive Rivalry
Very little scope for differentiation between
competitors’ products and services
Suppliers of aircrafts are the same, i.e., Boeing and
Airbus. Hence supplier’s bargaining power is high.
Switching cost of customers is high for low cost
carriers, i.e., there is no brand loyalty. Closest
competitor of IndiGo is Spice Jet followed by Go Air

22. Availability of Substitutes
The substitute for low cost airline company is the railways.
But this substitute is not very powerful due to the following
reasons: Customers use airline transport as it is convenient
and saves travelling time. So trains cannot work as a
substitute to save time.
Secondly, many customers use airlines as a status symbol.
So again, trains cannot substitute for prestige. So if we
consider IndiGo airlines, the direct substitutes are the other
low cost carrier’s like Spice Jet and Go Air. So in this case,
threat of substitutes is high as the switching cost between
low cost carriers is low.

23. Opportunities
The flight density of IndiGo airlines is limited in domestic
market; hence there is a big scope to increase the flight
frequency
Opening up of international routes
Largest market share among LCCs in Indian Market
Middle class taking to the skies

24. Threats
ATF (Air Turbine Fuel) prices have increased radically
since 2005
Foreign and private players often poach work-force of
competitors
Barriers to exit in aviation industry are high because of
high capital investment, nongovernment restrictions and
loss of brand image.

25. Awards
Outstanding Start up
award
The Best Low-Cost Airline in India.
The Best Staff Service in India for
the first time.

26. Market Share

27. Advertisement Strategy
Hoarding at airports.
Social networking medium- Facebook, Twitter, YouTube.
Multi- storeyed building and offices.
Magazines.
Sponsoring fashion shows, talent hunts, new year parties
etc.

29. Internal Environment Analysis
Resources, Capabilities and Core Competencies are the key
elements of the Internal Environment. The resources are
tangible and intangible.

30. Tangible resources
Aircrafts:
Human Resources:
Fuel:

31. Intangible resources
Brand Equity/Reputation:
Social Capital:
Brand Awareness:
Employee Relationship:

32. Strengths
IndiGo has high brand awareness and brand equity.
Cost leadership: Successful implementation of low cost
strategy.
Highly efficient management that ensures high rate of on-
time arrivals.
Continuous innovation to improve on non-price factors.
Tie-up with hotels

33. Weaknesses
Scope of product differentiation is less.
IndiGo is not exploring the untapped domestic air cargo
market.
Not on too many routes as compared to competitors
Still has to establish itself on international destinations

34. Feasible Alternatives
Increase domestic operation
Extension

35. Final Recommendation

36. www.goindigo.com

37. Address
www.goindigo.in
Toll Free : 18001803838 ( MTNL & BSNL)
Call Center : 09910383838
BANGALORE
G17/20, Richmond Towers,
12, Richmond Road, Bangalore-560025
Tel: 080-22219810, 22219820,22126879
DELHI - NCR ( GURGAON)
Level -3, Tower-C, Global Business Park,
M.G. Road, Gurgaon - 122002 Tel : 0124-
4352500
CHENNAI
144/145, Malavika Center,
Kodambakkam High Road, Nungambakkam,
Chennai - 600034
Tel : 044-65272262, 65272272
GOA
City Business Centre, Coelho Pereira Bldg,
Opp. The Jumma Majod, Dada Vaidya
Road,
Panjim, Goa - 403001, Tel : 0832- 2235115

38. HYDERABAD
Ground Floor, 5-9-86/1, Chapel Road,
Hyderabad - 500001
Tel: 040- 23211635
JAIPUR
101-106, Jaipur Towers,
M.I. Road, Jaipur - 302 011
Tel : 0141- 2370062
KOLKATA
Landmark, 228A, A.J.C. Bose Road,
Kolkata - 700020
Tel : 033-40036208
MUMBAI
17, Jolly Maker Chambers - II
255, Nariman Point,
Mumbai - 400021
Tel : 022-22027083
PUNE
G14-17, Metro House,
7/B, Mangaldas Road,
Pune -411001
Tel:020-26050961
VADODARA
302, Capri House -2,
Jetalpur Road,
Vadodara - 390007
Tel: 0265- 2320419