Service Marketing- Three Stage Approach
Service
Marketing Plan
Stage 1
Tangibility &
intangibility
Select the company
Industry profile in India
Major competitors
Process service activity
flow chart(gaps)
Consumer behaviour
(pre purchase, purchase
& post purchase)
Stage 2
Service Mix: 7
Ps
7 Ps of service mix
Product
Price
Place
Promotion
People(staff &
customers)
Process
Physical evidence
Stage 3
Recommendatio
ns
Recommendations for Service Gap on 7 Ps
Front stage & back stage service gaps
Prepare activity flow
chart & consumer
survey

Services Marketing
Topic :- Indigo Airlines,
Stage 1 :- Tangibility & intangibility.
Stage 2 :- Service mix 7 p’s.
Stage 3 :- Recommendations.
By:- Karan Bhagat
Rachit Shiv
Akshay Dhamankar
Aneesh Sheety

Indian Aviation Industry
Aviation industry in India in 9th largest industry and fastest growing industry in the world.
The number of travellers carried by domestic airlines between January and June 2010
increased 21.86 per cent to 25.71 million, contrasted with 21.09 million in the
corresponding time span of 2009, facts and figures supplied by diverse household airlines
showed.
With Air traffic extending to augment at over 21 per cent in June, India's largest low-cost
carrier Indigo is catching up to restore Air India at the third spot in terms of market share.
According to the facts and figures issued by the Directorate General of Civil Aviation,
Indigo has expanded its market share to 16.4 per cent, close to Air India's 16.9 per cent.
Amidst the other airlines, Jet-JetLite bagged 26.5 per cent, pursued by Indigo at 21 per
cent and Air India. amidst the LCCs, IndiGo is pursued by SpiceJet at 13.3 per cent, Go Air
at 5.8 per cent and Paramount at 0.3 per cent. The number of travellersoaring in June this
year increased to 4.57 million from 3.76 million in the identical month last year.

Founded 2005
Commenced operations AUGUST 2006
Company slogan ON TIME, EVERY TIME
KEY PLAYER MR. RAHUL BHATIA , CHAIRMAN
MR.ADITYA GHOSH,MD
Website www.goindigo.in
MARKET SHARE 27%
INDIGO AIRLINES

Executive Summary
 India’s best performing Low Cost Airline in terms of
profit
 Established in 2005 as a subsidary of Interglobe
Interprises
 A fleet of 30 aircrafts making 170 flights daily, across
22 destinations in India
 Plans to acquire 125 new aircrafts by 2025
 Plans to serve 100 cities in India, South East Asia,
Middle East and China by 2025

The IndiGo Dream…

Why IndiGo ?
 Emergence of the Great Indian middle class willing to
spend money for swifter travel
 For the Individual on the Go,who values time and on-
timliness
 Budget travel is not cheap travel, Quality of Service
Mission Statement :
To be the best Airline in India by providing the following values to the
customer:
- Affordable Fairs
- Ontime performance
- Hasslefree Service

• Indigo Airlines commenced operations on the 04th of August 2006 with
their inaugural flight from Delhi to Imphal
• Consolidating its position as the fastest growing airline in India with 237
flights, connecting 25 destinations across the nation, in a short span of
almost five years.
• January 19, 2011– India's largest low fare airline.
.

AWARDS AND ACHIEVEMENTS
Best Domestic Low Cost Service by TAAI (2010)
Safety Excellence Award by BIAL (2010)
Skytrax Central Asia's best low-cost airline award (2011)
Safety Excellence Award by Rajiv Gandhi
International Airport(2009)

Airline wise- Market Share

Tag line-”On time every time”

PRODUCT
•Design.
•Quality.
•Range.
•Brand Name.
•Features.
PLACE
•Distribution
Channels.
•Methods of
Distribution.
•Coverage.
•Location.
PRICE
•List Price.
•Discounts.
•Commissions.
•Surcharges.
•Extras.
PROMOTION
•Advertising.
•Sales
Promotion.
•Salesmanship.
•Publicity.
4P’s OF MARKETING MIX

PRODUCT PRICE PLACE PROMOTION PEOPLE PROCESS PHYSICAL
EVIDENCE
SERVICE MARKETING MIX

Giving a Feel For The “Product” Inside a Service Wrapper .
•Consumers are demanding not products, or features of products but the
benefits they will be offered.
•The airline product includes of two types of services:
1. On the Ground Services.
2. In-Flight Services.
PRODUCT MIX

Product
Core
• Transportation
Supplementary
• Check in
• Food on board
• Connecting flight
• Complementary gifts
• In-flight entertainment
• Frequent flier
programs
Augmented
• Online booking
• Variety of meal
options
• Pick up and drop
service
• Mobile ticketing

On the Ground Service(1/2)..

In flight Service (2/2)

PRICE MIX
Premium
Pricing
Value For
Money
Pricing
Cheap
Value
Pricing
APEX
Fares
Low-Cost
Pricing

• Online 24-hour reservation
Systems.
• Consolidation.
• Tour Operator/ Travel Agent.
• Affiliated with companies.
PLACE MIX

Promotion Mix
Word of Mouth
‘Customer Loyalty Ladder’ .
Sales Promotion
The Travel Agents, Tour Operators, Frontline Staffs Contribute a Lot to The Promotion of Airlines Business.
Publicity
The PRO, Receptionist, Travel Agents, Media People Are Very Important People in Publicizing The Business.
Advertising
Airlines Advertisement Needs to Keep in Mind the Image of Country, The Scenic Beauty, Tourist Attractions,
Rich Cultural Heritages or Which Would Attract Number of Tourists.

Promotion:
advertisements & publicity

Sales Promotion
Travel Agencies Front line staff

Promotional Strategy
Communication Objectives-Indigo will be promoting the
below three things majorly as part of its advertising
programme-On-time performance , Affordable fares and
Hassle free passenger experience.

Advertisement Strategy
 Hoardings at airports with focus on Best on time
performance
 Advertisement through social networking medium-
Facebook,Twitter,YouTube etc
 Collaboration with Multiplexes in major cities to
promote the airline and its special offers
 Advertisement hoardings in multi-storeyed buildings
and offices
 Advertisements in magazines targetting Urban
population

Advertisement Strategy contd..
 Sponsering fashion shows, talent hunts, New Year parties
etc
 Collaboration with consumer banks, credit card
companies, hotels, ticketing websites to promote special
offers, discounts and cash back
 Giving IndiGo promotion a local flavour by promoting in
regional languages in respective sectors
 Sending special offer details to frequent fliers by sms,
email etc
 Targeting foreigners in Tourist circuits

Advertisement through Social Media

• Competence.
• Reliability.
• caring Attitude.
• Responsiveness.
• Initiative.
• Problem Solving Ability.
• Goodwill.
PEOPLE MIX

• Reservation.
• Flight Information.
• Facilities at The Airport.
• Baggage Handling.
• Meal Service.
• Flight Entertainment.
• Deliver Quality Service.
PROCESS MIX

Cancellations,Complaints(2/2)

• On the ground:
• Booking offices or ticket
counters.
• Paperwork.
• Brand Logo.
• Tickets.
PHYSICAL EVIDENCE
In-flight:
•Aircraft.
•Seating Configuration.
•Good Inner-exteriors.
•Cleanliness.
•Uniforms.
•Ambience.
•Baggage.
•Labels or Tag.

The IndiGo Advantage
 Multiple Short haul point to point flights
 Using only one type of aircraft to minimize Maintenance
overheads
 Lean Operating Strategy to maximize efficiency
 Minimum turn around time, keeping Aircraft in air for
most of the time
 Employee welfare and resultant loyalty
 Making Low budget flying a pleasant experience

MARKET SHARE
MARKET SHARE IN 2011 MARKET SHARE IN 2012

Consumer behaviour
• Making a Reservation.
• Components of the Amount Paid to IndiGo for
Travel: Basic Fare, Surcharges and Fees.
• Changes/ Cancellations/ Refunds.
• Special Rules and Charges for Certain
Customers, Pets and Baggage.
• Checking and Cabin Baggage.
• Onboard the Aircraft

Blue Print of Indigo AIRLINES

Service Gaps flow chart

Gaps in the present service design:
GAP 1
• Lack of upward communication:
• The employees of Indigo airlines are don’t do
upward communication with their senior
manager due to which manager can not able to
understand what happening in the organisation.
• The employees of “Indigo Airlines” are not able to
implement the service of serve food to customers
properly due to customers are not happy by the
service of “Indigo Airlines”

GAP 2
• Absence of customer driven standard:
• In the ‘economy class’ there is problem that
Indigo airlines can not able to provide
customers driven standard and quality of
service to the customers.
• In Indigo airlines the airhostess takes lot of
time to deliver the order of customers.

GAP 3
• Failure to match supply and demand:
• Customers are not taking the responsibility
that to keep clean the environment of airlines
and flight, due to which lot of cost incurred in
the cleaning the flight and surrounding of
airlines.

GAP- 4
• Lack of integrated marketing communication:
• The advertising and promotional activities of
the Indigo airlines is very low due to which
there is the problem that customers are not
aware about scheme and discount on flights.
• Inadequate horizontal communication:

Service Gap Recommendations
• GAP-1
• Improvement in upward communication
• First of all the employees of the organisation have to encourage to do the communication with the group member
and with the manager even also manager have to appreciate the communication of the employees and have to
give feedback to the person who are doing communication with managers by that procedure we can able to do
improvement in the upward communication of Indigo Airlines
• Service recovery:
• The Indigo airlines have to give training to the employees to the various parameters such as
• 1. How to serve food to the customers
• 2. How to deal with the customers
• 3. How to meet the expectation of customers
• Gap-2
• Customer driven standard:
• The Indigo airlines have to give training to the employees that to how to behave ethically with the customers by
the help of training programme and there implementation we can able to meet the customer driven standard
• GAP-3
• Demand and supply:
• To meet the demand of the customers and to keep the smooth supply of goods in the flight the ‘supply chain
management’ should maintain properly and to meet the demand of customers.
• GAP - 4
• Integrated marketing communication:
• Indigo airlines should implement the ‘intranet’ facility to set the horizontal communication within the organisation
due to which all problem of horizontal communication will be removed.

Final Recommendation
• we recommend that IndiGo must increase its
domestic operations by starting flights connecting
to new destinations.
• So using the cost leadership strategy, IndiGo can
gain competitive advantage over its competitors
as the first mover.
• Once the above strategy is successful and results
in promising revenue growth, IndiGo canuse
extension to freight and chartered services as the
next objective for further expansion

• Extension
• Currently, IndiGo is concentrating only in
domestic passenger flights.
• However, the freight/cargo market and charted
plane service are the areas that can prove to be
good potential market for IndiGo.
• Besides, chartered flight services are an untapped
market for IndiGo.
• Thus, IndiGo has a huge opportunity to expand in
both these arenas.

Thank you