Launching Low Cost Airline in India

1. BRAND SPICEJET
‘Very rarely will the right seed bear the wrong fruit.’

2. Brand Launch
BRAND SPICEJET
•Research
Initiate •Brand Positioning
( Pre-Launch Planning) •Brand Name & Logo Design
•Corporate Identity, & collateral design
•Web layout ,design and content
•Market Research
Incubate •Brand Launch
•Marketing Campaigns
(Launch Plan & implementation)
•Brand Campaigns
•Media Planning & Buying
•Campaign & Media Plan Evaluations
Cultivate •Brand Tracking
( Measure & Adjust Strategies) •Internal Communication Programs

3. Initiate
BRAND SPICEJET
Successful branding goes beyond the logo

4. Indian Aviation History
BRAND SPICEJET The New winners
will emerge
Two private players left
In the fray with IA & Alliance Air
Phase-6
Consolidation
Indian Airlines, Vayudoot
Alliance Air rule the roost
Phase-5
Second Stage
Phase-4
of Liberalization
Consolidation
Phase-3
Air Deccan, SpiceJet
First Stage Kingfisher ,GO & Paramount
Phase-2 of Liberalization Launched. More players
in pipeline
Nationalization
Phase-1
Birth/ Seven Private Players make
foray into the aviation sector
Embryonic Stage
1912-53 1953-90 1990-93 1993-2003 2003-06 2006-09

5. Travelers Matrix of India
BRAND SPICEJET Average Fare Band
Air Traveler in Rs 4,300 – Rs 20,400
Business Class 5000 Existing Potential
*8% Market Airline Market
Air Traveler by
45000 Rs 2,900 – Rs 18,200
Economy Class
*15%
Super- Luxury Up-Grades
Rs 1000 – Rs 5,550
Travelers i.e 1 Million
A/C by rail *20%
Luxury Travelers
( Includes A/C 2.5 Million Rs 700 – Rs 1,450
Travel by road *8%
And rail
Medium & Long 13 Million < Rs 700
Haul i.e > 4 *5%
Hours across
All modes
Short haul < 4 17.5 Million
Hours across *4%
All modes of
transport
34 Million / per day travelers across all modes of transportation
* Growth Rate
Source: Pioneer Estimates 2005

6. Category Dynamics
BRAND SPICEJET
Large un-tapped
market
Buoyant middle class
Household Train upgrades a huge market potential Network
Income trends
Enhanced connectivity of
Growing aggregate per
regions and smaller towns
capita GDP.
Government thrust DEMAND
On Aviation DRIVERS
Favorable Government
policies
Infrastructure
Falling fares Improving Airport infrastructure. Needs
to keep pace with growth in traffic
Competition
Competition is putting downward
pressure on prices
Greater Airline choice has spurred growth
in recent years . Entry of three private
players in 2005

7. Brand SpiceJet
BRAND SPICEJET
• Identify most important customer
•Market Research and Segmentation
•Identify and Invest aggressively at the touch points that has
maximum impact on revenue growth and profitability
• Market Research
•Monitor Performance

8. Brand SpiceJet
BRAND SPICEJET
SpiceJet is a low cost, no-frills airline that
takes air travel to the vast numbers of
potential air passengers all over India

9. Brand SpiceJet
BRAND SPICEJET
The brand personality
• Smart, energetic and vibrant.
• Youthful, flexible, dynamic.
• Warm and inviting to all.
• Tech savvy, reliable, modern

10. Brand SpiceJet
BRAND SPICEJET
The brand promise
• Not just flying low cost. Flying smart.
• Enduring emotional connect with joy and freedom.
• Flying for everyone

11. SpiceJet - SWOT Analysis
BRAND SPICEJET
Strengths Opportunities
• Positioned as smart low cost carrier • Changing Population Demographics
operating on the mainline routes • Growing Tourist Traffic
• Low Maintenance Cost – single fleet • Improving Infrastructure
advantages • Growing Aviation Market
Weakness Threats
•Dependency on leased assets • RisingFuel Cost
•Dependence on Internet Penetration • Current Infrastructure Facilities
•Not integrated on GDS • Regulatory issues

12. Brand SpiceJet
BRAND SPICEJET
The communication task
• Create quick awareness for SpiceJet
• Ensure high traffic to Website and Call centre
• Develop aspirational brand personality
• Get maximum bang for buck.

13. Potential Target Market
BRAND SPICEJET
% Indian Urban Population
SEC A Businessmen, Professionals
10% DRIVERS (Graduate/Post Grad.)
SEC B 137 Million Junior Exec., Supervisors,
48% of Urban Population THE CARRIERS Small businessmen
17% Or
13% of Total Population
SEC C
THE CLIMBERS
21% Aspiring for a better lifestyle
SEC D The untapped potential
THE ASPIRANTS
23%
Semi- illiterate
SEC E /Illiterate workers
THE LAGGARDS
29%
Indian Population as per 2001 census-: 1027 million ( 16.7% of world population)
Urban Population-: 285 million ( 27.78 % of total Population)
•Estimated 176.5 Million households in India of which 52 Million are urban.
Source: IRS

14. Quantifying Targets
BRAND SPICEJET
SEC A,B &C
Pan India 137 Million
48% of Pan India Urban Population
Six City SEC A,B& C
24 Million
17.5% of Indian Urban Target Audience
Campaign Reach SEC A, B&C
In Six Cities 16 Million
65% of Target Audience
Marketing Targets SEC A,B&C 6% MS
(35,000/per Day
In Six Cities 0.8 Million Domestic Air
5% conversion of Campaign Reach Travel)
MS Figure projections for the period May- Dec‟05 ( DGCA Market Share estimate in Sep‟05 is 4.5% MS for SpiceJet
Figure Projection Source : IRS

15. Target Audience
BRAND SPICEJET
Leisure Business
Corporate Target Audience Couch Potatoes
Students VFR
Students
Travelers

16. INTEGRATED MARKETING COMMUNICATION
BRAND SPICEJET
Call Centre
Events/Contest/ Dailies
Promotion
PR
Radio Target Group Magazines
Promotion
Web Site In-flight
Brand Identity Magazine
Consistent . Distinctive
Internet DM
Communication Task
Bill Boards
Electronic Mailers
SMS Promotions
Mobile Vans
Mailers/ Stickers
Corporate tie-ups
Hoardings: Petrol Pumps

17. THE INSPIRATION

18. The Colours of Success
Many Successful mass brands are in red and white

19. Rationale for the logo
Signature
Derived from the digital world - the „jetstream‟ is
suggestive of moving through space and high
technology.
Typography
The use of lower case for the logotype makes the
brand youthful and approachable.
A clean, italics font connotes efficiency and
dynamism.
Colour
Red and orange are warm colours: bold, energetic
and attractive. Derived from the colour of red chilli
and turmeric.

20. Incubate
BRAND SPICEJET
SPICEJET LAUNCH

21. AIRCRAFT

22. Website

23. LAUNCH AD

24. FLAG OFF AD

25. DESTINATION AD DESTINATION AD

26. NIGHT FLYING
ANNOUNCEMENT AD

27. ID CARDS
Step Ladder
INDEPENDENCE DAY AD

28. ID CARDS
Step Ladder
Monsoon Ad.
TACTICAL AD
Summer Fare Ads

29. ID CARDS
Step Ladder
Red Hot Fare Ads
Anniversary Ad.
TACTICAL AD

30. ID CARDS
Step Ladder
PROMOTIONAL AD

31. MAGAZINE AD

32. MAGAZINE AD

33. ID CARDS
Step Ladder
Business Magazine Ad

34. MAGAZINE AD

35. MAGAZINE AD

36. ID CARDS
Step Ladder
TACTICAL AD
RECRUITMENT AD

37. OUTDOOR ADVERTISING- MOBILE VAN

38. HOARDING

39. PETROL PUMP HOARDING

40. AIRPORT ARRIVAL TRANSLITE

41. AIRPORT TRANSLITE

42. MOVIE HALL HOARDINGS AND TRANSLITES

43. Billboards

44. billboards

45. billboards

46. ON-LINE BANNER

47. ON-LINE CONTEST

48. INDIAN RAILWAY WEBSITE

49. ON-LINE MAIL SHOTS

50. GLOW SIGN

51. GLOW SIGN

52. MAILER
PROMOTIONAL MATERIAL- MAILER

53. FLYER
PROMOTIONAL MATERIAL- FLYER

54. COLLATERALS
COLLATERALS- BAGGAGE TAGS

55. COLLATERALS- BOARDING PASS/ TAG

56. FLIGHT SCHEDULE
FLIGHT SCHEDULE CHART

57. PROMO COUNTER
PROMOTION COUNTERS

58. PROMO COUNTER
PROMOTION COUNTERS

59. INFORMATION SIGNAGE

60. TICKET COUNTER

61. TICKET COUNTER
TICKET COUNTER

62. CHECK-IN COUNTER

63. BUSES
TRANSFER COACHES

64. STEP LADDER
STEP LADDER

65. INFLIGHT CREW
INFLIGHT CREW

66. SAFETY CARD
INFLIGHT SAFETY CARD

67. BAGGAGE TROLLEY
BAGGAGE TROLLEY

68. PUBLIC RELATIONS

73. IN-FLIGHT
MAGAZINE

74. Happy flying flying
Happy
NEWSLETTER
NEWSLETTER

75. Cultivate
BRAND SPICEJET
Post- Launch Evaluation
“Annual income twenty pounds, annual expenditure nineteen Pounds, result happiness.
Annual income twenty pounds, annual expenditure twenty one pounds , result misery”.
David Copperfield

76. Spends
BRAND SPICEJET
2000000 1891822
1800000
1600000
1400000
1200000 1030666
SpiceJet
1000000 861156
AirDeccan
800000 649322
Kingfisher
600000 429322 413960
400000 173960
240000
220000
200000
0
Press Outdoor Total
Activity Period: Three Months ( 20/06-20/09)
Source: Press : TAM media monitoring Report ( Aug 30- Sep20 based on Industry estimate)
Outdoor: Industry Estimates Figs: in US$
Markets: Six Cities

77. Maximizing bang for buck
BRAND SPICEJET
100
90
80
70
60
Air Deccan
50 SpiceJet
Kingfisher
40
30
20
10
0
Delhi Ahmedabad Mumbai Bangalore Pune Goa
Source: Indian Readership Survey( IRS)
Target Audience: 18-55Y, Male
Period: One month post launch

78. SpiceJet
BRAND SPICEJET
$ 42168 *$ 150888 *$ 141633 *$ 79272
*Above spends for SpiceJet
Source:
Alexa Website Ratings

79. How they stack up ?
BRAND SPICEJET SpiceJet and Kingfisher
Boost
Spurt in
Dip
Ad. Spends
Kingfisher half the level of SpiceJet of Kingfisher
*$ 95307 *$ 419621 *$ 835316 *$ 541580
*Above spends for Kingfisher
Source:
Alexa Website Ratings

80. How they stack up ?
BRAND SPICEJET SpiceJet and Air Deccan
Air Deccan is steady with some skews
Boost Dip
Dip
SpiceJet is half the level of Deccan
*$ 62661 *$ 221501 *$ 257386 *$ 148798
*Above spends for Deccan
Source:
Alexa Website Ratings

81. Summary
BRAND SPICEJET
Communication Task Communication Mix Communication Results
•Create quick Mass Advertising Promotions
•2,58,000 tickets sold
•Newspaper •Mall Promotion
awareness for SpiceJet •Magazines •Radio FM Contest in first month
•Outdoor •On-Line
•Internet
•Ensure high traffic Tracking • 5.4 million web hits on
Competition In-flight Magazine
to Website and Newsletter day one
Evaluations Integrated Marketing
call centre
Communication
Research Public Relations
•News Coverage
•Develop aspirational Direct Marketing
Consistent Image • Over4,00,000 pax flown
Print, On-Line
brand Personality •Corporate Mailers & On-Air since launch
•E-Mail Shots • Interviews
•SMS Program • Articles
Collateral Branding
•Get maximum bang Airport Items ,Glow •90%+ consistent
Signs, Counters,
for buck Mailers ,Schedules load factor
We may not know the answers yet, but we can get the questions right