8. REASONS WHY IndiGO IS MARKET
LEADER
IndiGo managed to not only increase its
passenger traffic but also its fleet size.
communicated to the flyer his basic need of
getting from point A to point B on time.
IndiGo stuck with its policy of offering one
class of no-frills service on a single type of
plane.
9. Mr. Bhatia’s obsession with detail and quality:Bhatia meets each of them individually
Turnaround time:-This is the time taken for a
plane to be ready for the next flight between
landing and take off
consistent low fares, regular on-time
performance and minimal flight cancellations.
10. IndiGo only emphasises on-time performance. Indigo has
continuously built around this image through its tongue-incheek advertisements on television and print media.
Using technology smartly Unlike manual systems used by
other airlines, IndiGo planes are equipped with a digital link
system for for transmission of short, simple messages
between aircraft and ground stations via radio or satellite
called Aircraft Communications Addressing and Reporting
System (ACARS).
11. 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 air
line and its special offers
Advertisement hoardings in multi-store yed buildings and offices
Advertisements in magazines targeting Urban population
12. 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
13. 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.
14. Price Differentiation of
Base fare based on day of booking prior to
Travel
More than 15
days prior to
travel
Based fare
would very
on -101-500
Within 14
days of travel
Within 7 days
of travel
The base fare
could upto
reach upto
1500
The base fare
could reach
upto
4500
15. HR POLICIES: An overview at IndiGo
Recruitment and selection: it can be broadly divided into
airport staff and support staffs. starting from HR round
Vertical interview HOD interview VP interview
President
Rehiring policy:-undergo same selection procedures.
Job Rotation:-is a privilege that only the airport staff enjoy
16. Appraisal methods: -follow the traditional approach to
appraise their employees
Referral policy: -incentives are generally limited to
pilots and cabin crew referrals
Awards and incentives:-based on high performance
(apart from the appraisal)
Training: -: Three types of training are provided at
IndiGo technical, leadership and induction training.
18. customer service, high value low cost.
Specific training programmes.
Coaching for customer service and soft skills.
Functional skills training like ticketing etc.
19. Low cost strategy to gain competitive
advantage.
Gave competitive edge over the competition in
the market.
20. Cost leadership strategy
• Strategy is all about to gain competitive
advantage over competitors by reducing costs.
• Increasing profits by reducing costs.
22. STRENGTHS
•Indigo has high brand awareness & brand equity.
•Cost leadership : success implementation of low cost
strategy.
•Continuous innovation to improve on non-price
factors.
•Tie-up with hotels .
23. WEAKNESS
•Scope of product differentiation is less.
•Indigo still has to establish on international
destinations.
•Indigo is not exploring the untapped domestic air
cargo market. .
24. OPPOURTUNITIES
• Middle class taking to the sky
• Opening up of international routes.
• The flight density of indigo airlines is limited in
domestic market , hence there is a big scope to
increase the flight frequency.
25. THREATS
• ATF (Air Turbine Fuel ) prices have increased
radically since 2005.
• Foreign & private players often poach work force of
competitors.
• Barriers to exit on aviation industry are high
because of high capital investment.
28. 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
no. and results in higher bargaining power for them.
29. BARGAINING POWER OF BUYERS
•Buyers in airlines industries is large in no. and highly
fragmented ,thus lowering their power with the
growing Indian economy & increasing low cost
carriers, buyers have increased & so have the growth
opportunities.
30. COMPETITIVE RIVALRY
•Suppliers of aircrafts are the same ..i.e. Boeing and
Airbus . Hence suppliers bargaining power is high.
•Very little scope for differentiation between
competitors product & services.
31. AVAILABLITY OF SUBSTITUTES
• Many customers use airlines as a status symbol.
So, trains cannot substitute prestige . So if we
consider indigo airlines , the direct substitutes are
the other low cost carrier like spice jet and Go
air..so in this case , threat of substitutes is high as
the switching cost between low cost carrier is low.
