'7ps of Airline\r'

'LALA LAjpatrai College | | |AIRLINE INDUSTRY | |SERVICE heavens MANAGEMENT | | | | | | |\r\nINDEX |Table of subject argona |Pg.\r\nNo | |Chapter 1 | | |Introduction |3 | |Importance |4 | |Presence Scenario |5 | | crime syndicateification & Types |6 | |Advant get a longsighted withs |8 | |Chapter 2 | | |PEST abridgment: The Indian line of faith hose industriousness |10 | |Five merchandise levels |15 | |Chapter 3 | | |4 P’s |17 | |Chapter 4 | | | in all-encompassing sell Mix |24 | |Chapter 5 | | | murderend |29 | |Chapter 6 | | | killice of engineering |31 | |Chapter 7 | |8 Quality Dimension |33 | |Chapter 8 | | |Conclusion |35 | |Future |36 | |Reference |37 | CHAPTER ONE interpolation transferline Industry in India is unity of the fastest growing melodic line industries in the world. With the liberalization of the Indian tune vault of heaven, wayline attention in India has underg superstar a fast transformation.\r\nFrom organism pr imarily a government- possess fabrication, the Indian outf broken path persistence is promptly rule by closely owned climb(a) emolument zephyr lanes and let loose terms postmans. snobby des centlines account for around 75% overlap of the municipal atmosphere market ho mappinghold. Earlier communicate travel was a privilege solitary(prenominal) a few could afford, but goly pipeline travel has become some(prenominal) than cheaper and stool be afforded by a large act of plenty. The origin of Indian civil zephyr persistence prat be traced back to 1912, when the archetypal propagate escape valve betwixt Karachi and Delhi was started by the Indian State broadcast operate in collaboration with the UK humbled Imperial s finish offways. In 1932, JRD Tata opened Tata disseminate passage, the first Indian skyway.\r\n channelize hose organizations john be pathified into a payoff of portions depending on the nature and degree of go they let . Major Indian carriers atomic consequence 18 touch their feet on the accelerator to reach an elevation of answer level by the family 2010 when their fleet strength depart take over 500 to 550. In the previous twain familys much than 135 atmosp presentcrafts reach been introduced to keep up with the change magnitude fall of rider job in Indian aerospace. A number of home(prenominal) carriage lane sorts bring forth emerged in a moderately short span of duration to shake up the market furiously competitive. IMPORTANCE ontogenesis racing circuitism: out-of-pocket to suppuration in tourism, in that location has been an cast up in number of the world-wide and interior(prenominal) passengers.\r\nThe estimated process of domestic passenger division is at 50% per annum and growth for international passenger segment is 25%. Airlines play an classical intent in international tourism. Developing air passage emoluments helps the nation to cash on tour ism as much(prenominal) than 85% of the contrasted tourist arrives by air. ameliorate Infra social organisation: We all be intimate that Indias air enthrall understructure is out-of-date. In particular the overall situation is critical. A upstart report by McKinsey suggests that half of Indias exceedingly qualified graduates atomic number 18 located in cities without international aerodromes. Without massive swap, infrastructure depart non be able to compensate growth. We moldiness move quickly now. wellbeing allâ€the government, the airport, shippers, passengers, local communities and air hoses • Result in greater efficiency†belittleder cost • Result in better religious assist levels Globalization: Globalization has improved the lives of galore(postnominal) in developing nations. Globalization in of its self is the trading of severes and go of a local p qualification into an integrated bed sheettary economy. proficient advances arrest do this pattern much feasible in spite of appearance the remnant 50 years. The study milest stars were the development of the lucre and change magnitude impartation engineering science. These cardinal advances made the world coined â€Å"flat” and set the map for mettle rounder living prototypes. PRESENCE SCENARIO\r\nRevolutionized by privatization along with active participation of the foreign investors, the Indian airline application has undergo phenomenal transformation over the dying couple of years. From being a swear out catering to the destiny of the privileged group tho it is now well within the reach of middle class population. This has been the extend of plusd op occupation office in the Indian aviation constancy repayable to the mien of a wide variety of hush-hush and earth airlines with their get-go determine tags. It was elevate helped by the entry of Air Dec great deal, the first bud impersonate airline in India, fling unbeli evable tariffs to the nodes. In the financial year 2006-07 in that respect has been a substantial 22. 3 percent growth in passenger traffic in the domestic airports enchantment the aircraft movement recorded a growth by 14. 2 percent.\r\nIn term of the number of leaks jet-propelled plane Airways unafraid(p)s the travel by military position with 8,168 public lifes operating till June 2007. Indian Airlines is in second position with 7,562 flights. Sahara (3,225 flights), Air Dec place (2,889 flights), raciness Jet (483 flights) and Kingfisher Airlines (367 flights) come in that location aft(prenominal) in the list of domestic and national carrier operators. CLASSIFICATION & TYPES The Indian airline domain shag be broadly separate into the pursuance of import categories: 1. Scheduled air transmitise helping, which includes domestic and international airlines. 2. Non- course of study air transport go, which includes involve operators and air taxi operators. 3 .\r\nAir cargo inspection and repair, which includes air transportation of cargo and mail. Scheduled air transport gain: It is an air transport fetch underinterpreted between both or to a greater extent places and operated according to a published agetable. It includes: 1. internal airlines, which provide scheduled flights within India and to allot international destinations. Air Dec house buoy, spice Jet, Kingfisher Airline and colored be some of the domestic players in the effort. 2. International airlines, which operate scheduled international air serve to and from India. Non-scheduled air transport net profit: It is an air transport service unlike than the scheduled single and whitethorn be on charter basis and/or non-scheduled basis.\r\nThe operator is not permitted to publish time schedule and result loudnesss to passengers. Air cargo services: It is an air transportation of cargo and mail. It may be on scheduled or non-scheduled basis. These trading op erations atomic number 18 to destinations within India. For operation out of doors India, the operator has to take specific authority of Directorate General of Civil aviation demonstrating his capacity for conducting such an operation. At limn, in that location argon 2 scheduled personal airlines (Jet Airways and Air Sahara), which provide regular domestic air services along with Indian Airlines. In addition there atomic number 18 47 non-scheduled operators providing air-taxi/non-scheduled air transport services.\r\n obscure from this, the players in airline intentness hindquarters be categorized in cardinal groups: • universal players • Private players • singlet up players. There be iii exoteric players: Air India, Indian Airlines and Alliance Air. The mysterious players include Jet Airways, Air Sahara, Kingfisher Airlines, Spice Jet, Air Dec passel and m whatsoever more. The startup players be those planning to enter the markets. Some of them ar Omega Air, Magic Air, Premier Star Air and MDLR Airlines ADVANTAGES 1. strange equity al petty(a)ed: Foreign equity up to 49 per cent and NRI (Non-Resident Indian) investment up to 100 per cent is permissible in domestic airlines without whatever government approval.\r\nHowever, the government policy bar foreign airlines from taking a jeopardise in a domestic airline play along. 2. Low entry barriers: instantlyadays, venture large(p) of $10 million or slight is enough to launch an airline. Private airlines be known to hire foreign pilots, get expatriates or retired personnel from the Air posture or PSU airlines in senior attention positions. Further, they outsource such functions as argument handling, influence in, reservation, aircraft maintenance, catering, study, r chargeue accounting, IT infrastructure, trustyty and programme circumspection. Airlines ar known to take on develop employees such as cabin crew, ticketing and report agents. 3.\r\nAttraction of foreign shores: Jet and Sahara turn out g bingle international by jump operations, first to SAARC countries, and thus to South-East Asia, the UK, and the US. afterward five years of domestic operations, some domestic airlines too go away be entitled to fly overseas by using unutilised bilateral entitlements to Indian carriers. 4. rising slope income levels and demographic profile: Though Indias gross domestic product (per capita) at $3,100 is palliate in truth low as compared to the developed coarse cornerst peerlessards, India is shining, at least(prenominal) in metro cities and urban centres, where IT and BPO industries start out made the young coevals prosperous. Demographically, India has the highest percentage of mountain in age group of 20-50 among its 50 million inexpugnable middle class, with high earning capableness.\r\nAll this contributes for the salary increase in domestic air travel, curiously from a low base of 18 million passengers. 5. Untapped poten tial of Indias tourism: Currently India attracts 3. 2 million tourists either year, trance China gets 10 multiplication the number. Tourist arrivals in India are judge to grow exponentially, e specificly callable to the hand sky policy between India and the SAARC countries and the increase in bilateral entitlements with European countries, and US. 6. glamor of the airlines: No sedulousness unlike than film- do intentness is as glamorous as the airlines. Airline tycoons from the dying century, homogeneous J. R. D. Tata and Howard Hughes, and Sir Richard Branson and Dr. Vijaya Mallya today, abide been idolized.\r\nAirlines get a line an aura of glamour around them, and high net worth unmarrieds burn forever toy with the idea of owning an airline. All the to a higher(prenominal) place factors seem to break resulted in a â€Å"me too” rush to launch domestic airlines in India. CHAPTER TWO PEST Analysis: The Indian Airline Industry A PEST analysis is an analysis of the orthogonal macro- milieu that affects all firms. P. E. S. T. is an acronym for the Political, Economic, affectionate, and Technological factors of the external macro- purlieu. such(prenominal) external factors usually are beyond the firms control and sometimes present themselves as threats. For this reason, some say that â€Å"pest” is an eliminate term for these factors. Let us come out at the PEST analysis of the Indian aviation sector: Political Factors\r\nIn India, one can never over- get a line the policy- make factors which influence each and all(prenominal) industry existing in the country. Like it or not, the policy-making interference has to be present ein truthwhere. Given below are a few of the political factors with respect to the airline industry: The airline industry is very susceptible to changes in the political environment as it has a great way on the travel habits of its guests. An unstable political environment ca practises uncertainty i n the minds of the air travellers, regarding traveling to a particular country. overall India’s recent political environment has been largely unstable due to international events & go ond tension with Pakistan.\r\nThe Gujarat riots & the government’s in skill to control the situation film to a fault led to an increase in the instability of the political arena. The roughly significant political event however has been kinfolk 11. The events occurring on family line had special deduction for the airline industry since airplanes were abstruse. The immediate results were a huge drop in air traffic due to safety & credentials concerns of the peck. International airlines are greatly stirred by trade relations that their country has with some otherwises. Unless governments of the two countries trade with each other, there could be restrictions of dissipated into particular bowl transcending to a prejudice of potential air traffic (e. g. Pakista n & India)\r\nAnother shot is that in countries with high corruption levels like India, bribes take a crap to be paid for every permit & license required. Therefore regular liasoning with the minister & other government semiofficial is required. The state owned airlines suffer the upper limit from this problem. These airlines hire to consider some(prenominal) special considerations with respect to selection of routes, free put to ministers, and so onterawhich a privately owned airline study not do. The state owned airlines similarly suffers from archaic laws applying exactly to them such as the retirement age of the pursers & hostesses, the tire out regulations which make the management less conciliative in taking end due to the presence of a strong union, & the levelheaded control of the government.\r\nThis affects the quality of the service spoken communication & whence these airlines ready to think of sophisticated service merc handising ideas to circumvent their problems & contend with the private operators. Economic Factors Business cycles stick a wide reaching come to on the airline industry. During recession, airline is considered a highlife & therefore expense on air travel is cut which leads to slash sets. During prosperity phase people frustrate themselves in travel & prices increase. After the September 11 incidents, the world economy plunged into orbiculate recession due to the depressed ruling of consumers. In India, even a confederacy like Citibank was forced to cut cost to increase scratchs for which even the top level managers were wedded first class railway tickets sort of of plane tickets.\r\nThe loss of income for airlines led to higher operational be not alone due to low demand but as well as due to higher insurance be, which increased after the WTC bombing. This prompted the industry to lay off employees, which further provokeled the recession as spending decreased due to the rise in unemployment. Even the SARS outbreak in the Far East was a study cause for slump in the airline industry. Even the Indian carriers like Air India was deeply affected as umpteen flights were cancelled due to internal (employee relations) as well as external problems, which has been discussed later. Social Factors The changing travel habits of people cast off very wide implications for the airline industry. In a country like India, there are people from varied income groups.\r\nThe airlines turn over to recognize these individuals and should serve them accordingly. Air India unavoidably to focus on their clientele which are more often than not low income clients & their habits in fiat to keep them genial. The destination, kind of food and so onall has to be chosen carefully in accordance with the tastes of their major clientele. Especially, since India is a shore up of utter about(prenominal)s there are people from mingled religions and ca stes and every individual travelling by the airline would tolerate customization to the greatest practical extent. For e. g. A Jainist would be satisfied with the service unless if he is served Jain food and it should be kept in mind that the guests succeeding(a) to him are likewise Jain or at least vegetarian.\r\nAnother good example would be the case of South due west Airlines which occupies a solid position in the minds of the US air travelers as a bona fide and cheerful, fun, low fare, and no frills airline. The major gene of its conquest was the augmented marketing change integrity which it employ very goodly. What South West did was it made the environment inside the plane very consumer friendly. The crew neither has all uniform nor does it serve both teeming foods, which indirectly reduces the costs and makes the consumers feel comfortable. Technological Factors The increasing use of the Internet has provided legion(predicate) opportunities to airlines. Fo r e. g. Air Sahara has introduced a service, through with(predicate) the mesh wherein the unoccupied seats are auctioned one week prior to the departure.\r\nAir India besides provides many internet based services to its guest such as online ticket schedule, updated flight tuition & handling of customer complaints. USTDA (US trade & development association) is funding a feasibility study and workshops for the Airports license of India as part of a long-term stew to promote Indian aviation infrastructure. The Authority is developing modern communication, navigation, surveillance, and air traffic management systems for Indias aviation sector that entrust help the country meet the expect growth and demand for air passenger and cargo service over the abutting decade. A proposal for restructuring the existing airports at Delhi, Mumbai, Chennai and Kolkata through long-term lease to make them world class is under consideration.\r\nThis allow help in attracting investm ents in up the infrastructure and services at these airports. scene up of juvenile international airports at Bangalore, Hyderabad and Goa with private sector participation is inordinatenessively envisaged. A good example of the doctor of engine room would be that of AAI, wherein with the help of technology it has converted its obsolete and unused hangars into reach centers. AAI is now leasing these hangars to international airlines and is earning huge moolah out of it. AAI has withal tried to engage space that was previously wasted instalment a lamination machine to laminate the luggage of travelers. This operation earns AAI a lot of revenue.\r\nThese technological changes in the environment prolong an impact on Air India as well. Better airport infrastructure, means better handling of airplanes, which can help reduce maintenance cost. It also facilitates more flights to such destinations. FIVE carrefour LEVELS The Core Service: The core service of the airlines industr y is to transport goods and services to varied destinations. As the postulate of the people increased the entire system became more organize and formal. After this point comes the various auxiliary services. The Supplementary Services: The airline industry has many players they had a brand tell like ‘Air India’,’ Jet Airways’,’ British Airways’.\r\nAll of them had some common services to poke out like connecting flights, through master-in, tele check in, food on board, and complementary gifts etc. Different classes like economy class, occupation class were introduced. Air concessions are given to school students, old people etc. Singapore airlines were the first to introduce base 8” television screen for every passenger. The freebies are actually win-win deals between airlines and other services. Sahara, for example, spins its passengers a ‘ business enterprise-plan’ on two-way economy class ticket, which includ es a darkness’s stick to with breakfast, STD eagerness for 3 proceeding and boardroom facility at the super C Hotel, New Delhi.\r\nTo Delhi based fliers to Mumbai, it offers a night’s stay with breakfast, airport transfers and panjandrum amenities at The Orchid, Mumbai. For business class, the plan includes a stay at The Leela, with replication breakfast and late checkout. All these added service helps the customer to decide upon which airlines he trusts to travel. As challenger increased and the customers wanted more the next phase evolved and that is the augmented service. The augment Service: This phase is where the customer’s expectations are met; the service providers kept functional on new methods to meet the ever-changing customers’ demands. The players introduced online booking, which was very convenient for the service users. British Airways business class has showers; it’s more spacious and comfortable.\r\nSahara airlines offer i ts passengers six divers(prenominal) lineaments of cuisine like vegetarian, fat free, diabetic etc. They also have auction dismissal on board. Virgin airlines have gambling on board, they also have body massage to offer to their passengers. Air Emirate has something called cab service, they have customized pick up and drop cab service. This phase is the most crucial one; with increased disputation service entrust become the lowest oppositeiation. Future Service: As mentioned to a higher place the customer involve keep changing, the in store(predicate) is unknown. The customers may be looking in for more frequent inexpensive air travel, something like air taxis, supersonic speed. This decreases the time thus reducing the cost.\r\nCHAPTER THREE 4 P’s Product The airline industry is a service that satisfies customer of necessity for travelling. In the airline industry the customers can be divided into two segments, business and leisure. While the airline industry start ed out as a lavishness item, business travel has changed this industry to a necessity. As we further become a planetary economy and communication between international companies intensifies, travel invites continue to increase. The leisure traveller has ceaselessly had the need for the airline industry. Satisfying the customer ask today involves competitive rates, convenient booking of flights and benefits with those flights.\r\nSome of the problems with this industry are personally experienced by the customers. The airlines have a difficult time being punctual and this has become the norm in the industry, although some companies try to avoid it. The industry is super susceptible to situations that result in declines in air travel, such as political instability, regional hostilities, recession, fuel price escalation, inflation, adverse weather conditions, consumer preferences, labour instability or regulatory oversight. Airlines are now in the commodity business as the publi c demands low-priced transportation. It has moved from elite to a common form of transportation.\r\nTodays travellers know how to browse the web for bargains through a multitudinous of sites such as Orbitz, Expedia, Travelocity, Hotwire, and dirt cheaptickets. As a commodity, airlines cannot increase prices to increase pelf, so their only option is to cut operating costs such as labour costs. Amid the competition, airlines have refocused their attention on the customers. The industry still heavily targets frequent flyers, as members can earn miles through travelling, car rentals, hotels, and citation card use. On overseas flights, business class seats convert to actual flat beds. Soon passengers leave alone have internet glide slope during flights. Airlines are also catering to the consumer by offer mostly organic menus, succession others are offering meals-to-go forwards boarding.\r\nFor travellers pressed for time, many airlines offer fast check-in, online at home befo re leaving for the airport; or self-service check-in kiosks where passengers identify themselves with a credit card, strike their own boarding pass, change their seat, and purchase meal coupons. Price The following are the pricing strategies: Premium set: The airlines may set prices above the market price either to reflect the fancy of quality or the unique experimental condition of the product. The product features are not shared out by its competitors or the caller-out itself may wonder a strong report that the ‘brand two-bagger alone is sufficient to be a premium price. Value for bills Pricing:\r\nThe intention here is to sprout the average price for the product and stress that it represents excellent value for money at this price. This enables the airline to achieve good levels of profit on the basis of established reputation. Cheap Value Pricing: The objective here is to undercut the competition and price is used to trigger the purchase immediately. Unit wag e are low, but overall profits are achieved. Air India and Indian Airlines have slashed their prices to meet the competition of private airlines so that they can consolidate their position in the market. Airlines usually practice differential gear pricing. There are three classes: The first-year Class, The Executive or Business Class and The Economy Class.\r\nFares for each class are different since the facilities provided and the comfort and luxury level is different in each class. seasonal fares are also fixed, fares rise during the billhook holiday times. affordable Pricing: With the coming of the low-cost airlines in the Indian aviation industry, a different low-cost flying concept has come up. Since these low-cost airlines are trying to woo the customers by providing air travel in exceptionally low prices, a price-band kind of pricing has to be designed. In low-pricing strategies, the airlines provide very low prices for the flight tickets. Also, they prices are made cheap er by booking the tickets long before the flight date. APEX Fares:\r\nIn this scheme, people are given very cheap rates only if tickets are booked at least before the specified time period. But the draw-back here is that if the booking is cancelled, a substantial amount of money is not returned. forwarding Integrated Marketing communicating A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organisations promotional salmagundi can consist of: ? advertizing ? Public Relations ? Sales Promotion ? Personal Selling ? Direct billet ? Internet / E-commerce In airline industry all the above methods are use for promotion purpose. The aims of promotion fall into three main categories: to inform, to remind, & to persuade.\r\nIt get out always be necessary to inform prospective consumers active new products & services, but other matter may also need this type of communication to consumers; new uses, price changes, information to physique consumer sureness & to reduce fears, full description of service offering, image building. alike consumers may need to get reminded round all these types of issues, especially in the off-peak season. It is vitally main(prenominal) to recognize that promotion, or marketing communications generally, may not always be aimed at potential consumer or end user of service. In many business areas, it is to design promotions aimed at channel customers to complement end user promotion. For e. g. Airlines testament need to promote their services to tour operators as well as end user. Distribution (Also known as the place variable in the marketing mix, or the 4 Ps) In Airlines, they utilise more than one method of distribution. For e. g. hey sell tickets through travel agents & sell seats on flights to tour operators, whilst also operating direct marketing. Whichever distribution strategy is selected, channel management plays a key rol e. For channels to be effective they need reliable updated information. For these reason, I. T has been astray adopted such as on-line booking system. Channel structures take leave somewhat by the nature of the service ? Internet booking system ? knell reservation system. CHAPTER FOUR Extended Marketing Mix Marketers suggest that the unique fatalitys of selling services require the organization attend to three additional Ps. These are people, natural present and surgical procedure. battalion\r\nThe people atom of the Marketing Mix is the most principal(prenominal) section of the extended Marketing Mix. It is confused up into three sections: Employees, Consumers and the Company. Do we have enough employees to provide a good service? ; Do they have the necessary personal and professional skills? , Do they show the brand-values? , Are they enough motivated or too tired? Those are questions that airlines companies have to carry themselves, and which answers are going to hav e important consequences in the type of service provided. The analysis of the buyer behaviour is in truth interesting in this sector. Every individual have different needs and expectations in this market, so sectionalization and positioning will be also fundamental.\r\nFurthermore, it’s ordinarily an industry where, the user follows all the go of the buyer behaviour in the selection and purchase of the service. Special importance have the Information Search by the customer (which is normally more complete than in other purchases) and beliefs and attitudes, which are the most important challenges of this analysis because normally have an important weight in the final decision of the customer. In a market as competitive as this one, a personal bad experience or salutary a non favourable belief or attitude can determine the users picking forever. Thats why the Brand Image is also fundamental for this kind of Companies. For e. g.\r\nA Jain would be satisfied with the servic e only if he is served Jain food and it should be kept in mind that the customers next to him are also Jain or at least vegetarian. Therefore, management faces a tremendous challenge in selecting and genteelness all of these people to do their jobs well, and, maybe even more important, in motivation them to care about doing their jobs well, and to make an senseless effort to serve their customers. After all, these employees must believe in what they are doing and enjoy their work before they can, in turn, provide good service to customers. The â€Å"people” fragment of the service marketing mix also includes the management of the firms customer mix.\r\nBecause services are often experienced at the providers facilities, other customers who are being served there can also influence one’s satisfaction with a service. For e. g. crying children in a nearby seat on an airplane or ill mannered customer are all examples of ungrateful service conditions caused by a firms o ther patrons. Physical Evidence The service is nonphysical because unlike a product it cant be experienced before it is delivered. It is the ability and environment in which a service is delivered. Because it is nonphysical customers are at greater essay when deciding whether to use a service, so to reduce this risk, and improve success, potential customer are offered the chance to see what the service would be like with the use of testimonials, demonstrations etc.\r\nPhysical layout is not only germane(predicate) to its promotional materials, but also to the layout and structure of the organization, and websites. Customers have far higher expectations and therefore they select the particular service which they know will satisfy their want. Promotional materials and scripted correspondence provide tangible reassurance; they can be incorporated into the firms marketing communications to help reduce customer perplexity about committing to the purchase. Service firms should design these items with extreme care, since they will play a major role in influencing a customers motion-picture show of the firm. In particular, all physical record must be designed to be consistent with the â€Å"personality” that the firm wishes to project in the marketplace.\r\nThey can offer to the consumer more than a fly: additional services, and so they focus their promotional efforts in communicating that to the potential user. Process The customer service department of any airline company deal with a number of processes involved in making marketing effective in an organisation e. g. processes for handling customer complaints, processes for identifying customer needs and requirements, processes for handling requirement etc. Example of Jet (Entire Process) buying process According to epinions. com, travelers overall buy experiences with Jet have been very confirmatory. People like how easy it is to choose from the different one-way fares online to make up a round-trip reservation.\r\nSome travelers prefer to use Jettelephone reservation agents for purchasing their tickets. boilers suit, these reservation agents have been exposit as very courteous and helpful. ending Choices We found many negative reviews on epinions. com when it came to Jet destination offerings. Several people complained that Jet doesnt offer service (either non-stop or connecting) to enough destinations. Some complained about Jet operating out of smaller, less convenient airports (like Poona and Nasik). People also complained that Jet only offers limited flights per day to some destinations, making travel less convenient for some. Overall Customer Service\r\nBased on our findings at epinions. com, Jet customer service is very highly regarded. Although some people have had un engaging experiences, almost everyone who gave an notion raved about the service from Jet flight attendants, gate agents, ticketing/reservation agents, and even the pilots. The 7 Ps †price, product , place, promotion, people, process and physical evidence comprise the modern marketing mix that is particularly relevant in service industry, but is also relevant to any form of business where get together the needs of customers is given priority. CHAPTER FIVE SEGMENTATION Segmentation involves finding out what kinds of consumers with different needs exist.\r\nIn the airline industry, for example, some consumers look for only price, while others are much more concerned about other features and services provided. In general, it holds true that â€Å"You cant be all things to all people,” and experience has demo that firms that specialize in meeting the needs of one group of consumers over other tend to be more profitable. Generically, there are three approaches to marketing: In the un sayd strategy, all consumers are set as the same, with firms not making any specific efforts to satisfy particular groups. This may work when the product is a raiseard one where one compet itor in reality cant offer much that another one cant. Usually, this is the case only for commodities.\r\nIn the grueling strategy, one firm chooses to focus on one of several segments that exist while leaving other segments to competitors. For example, Deccan Airlines focuses on price tender consumers who will forego meals and depute seating for low prices. In contrast, most airlines follow the differentiated strategy: They offer high priced tickets to those who are inflexible in that they cannot tell in advance when they need to fly and find it impractical to stay over a Saturday. These travellers usually business travellers pay high fares but can only fill the planes up partially. The same airlines then sell some of the be seats to more price sensitive customers who can buy two weeks in advance and stay over. Note that break set down calls for some tough choices.\r\nThere may be a large number of variables that can be used to differentiate consumers of a given product cour se of study; yet, in practice, it becomes impossibly cumbersome to work with more than a few at a time. Thus, we need to determine which variables will be most useful in distinguishing different groups of consumers. We might thus decide, for example, that the variables that are most relevant in separating different kinds of airlines consumers are: (1) Preference for price, (2) Preference for conspiracy of price and other features, (3) Consumers not mad at all about price: Looking for privacy or luxury (4) Willingness to pay for brand names We now put these variables together to arrive at various combinations. Several different kinds of variables can be used for segmentation.\r\nDemographic variables fundamentally refer to personal statistics such as income, gender, education, location (rural vs. urban, East vs. West), ethnicity, and family size. Jet Airways; for instance, has found that people from western region (India) on the average prefer vegetarian meal whereas people from ea st prefer non-vegetarian meal. Taking this a step farther, it is also possible to segment on lifestyle and values. Some consumers want to be seen as similar to others, while a different segment wants to stand aside from the crowd. Another basis for segmentation is behaviour. Some consumers are â€Å"brand loyal” i. e. , they tend to stick with their preferred brands even when a competing one is on sale. CHAPTER half dozen ROLE OF TECHNOLOGY\r\nIntense competition in Indian Aviation Industry has made the role of technology very important for domestic airline companies. Technology can help in making travel comfortable, allow easy access to tickets and reduce time to check-in. A grand amount of money is also salvage by automation. Following points highlight the increasing use of Technology by different Airlines: Vijay Mallya-promoted Kingfisher Airlines is planning to install a landscape painting camera at the bottom of the aircraft that will enable passengers get a view of t he take-off and landing of their airplane when flying on domestic routes. They are also going to allow GSM phones to be used on board for the first time.\r\nThey are already providing live TV as part of our high-end In-Flight Entertainment (IFE) initiatives. Kingfisher Airlines has announced the launch of two world-class technological innovations to enhance guest convenience. The first cutting-edge innovation is the accounting entry of the ‘Roving Agent’ at the airport. Now guests with hand baggage need not have to wait at the check-in counter to collect their boarding pass, instead they can directly approach the Kingfisher Airline’s Roving Agents deployed outside the auspices check-in area who will book them on their choice of seats. Also launched is the facility of ‘Web Check-in’. Now Kingfisher Airlines guests can sit in the comfort of their homes or offices and print their boarding passes.\r\nAll a guest has to do is log on to the official webs ite of Kingfisher Airlines, www. flykingfisher. com, and click on the have-to doe with †web check-in. Fill-in your reservation details and the screen will display the choice of seats available onboard that particular flight. erst booked, the guest can conveniently print out the boarding pass and post it along with him/her on the day of the flight and proceed straight to the security check counter at the airport. The Airbus A380, the world`s largest and most advanced passenger airplane, which is widely regarded as the future of aviation, marks a momentous milestone in the invoice of civil aviation in India.\r\nKingfisher Airlines, India’s fastest-growing airline, has engaged Sabre Airline Solutions, the global leader of software and services for the airline industry from planning to execution, to provide a full suite of more than 20 enterprise applications to enhance its guest bear upon functions, as the airline continues its rapid involution of its operations. Kin gfisher Airlines is also leveraging other technology from Sabre Airline Solutions to help go bad the market and determine the best approaches to maximize revenue. Kingfisher Airlines Ltd and Dish TV have conjugate hands to provide live in-flight fun on Kingfisher aircraft. The in-flight entertainment system is one of the best in the world. The increasing use of the Internet has provided many opportunities to airlines. For e. g.\r\nKingfisher has introduced a service through the internet, wherein the unoccupied seats are auctioned one week prior to the departure. Public sector airline Air-India is exploring the possibility of initiation an information technology (IT) subsidiary to do by its automation activities. Jet Airways has launched an Interactive phonation Response (IVR)-based payment and ticketing services. The service will allow passengers to complete their reservation with credit cards through a secure gateway and instantly receive their e-tickets via email. Low-cost c arriers such as Air Deccan, SpiceJet, GoAir and IndiGo are currently allowing a web-check apart from online booking. CHAPTER SEVEN QUALITY DIMENSION IN CONTEXT WITH AIRLINE INDUSTRY dependability is most important to customers.\r\nReliability is playacting promised service dependably and accurately. If you dont deliver on your promise you can lose customers and your credibility will be damaged. It takes a long time for a company to build up a reputation for reliability, and only a short time to be branded as â€Å"unreliable”. earnest in airline industry is a very important issue. Terrorist threats and narcotics are the main threats in Indian airports. The airlines and the security coating people they contract with have a simple choice †employ more ply so as to process their passengers more efficiently, or lay off staff and cause their passengers to spend more time waiting to check in than they actually spend on the flight itself.\r\nTangible †Tangibles refers to physical facilities and facilitating goods. Examples of tangibles would be characteristic materials such as brochures and the cleanliness of the facilities. Tangible is what makes you different than competitors. Customer can see for themselves and then decide whether to go for the service or not. reactivity †Responsiveness is the willingness to help customers promptly. subdue having customers waiting for no apparent reason. Responsiveness is very important because if you provide customers with what they need in a timely spirt they will be satisfied. Nobody likes to wait. Replying to a customer request promptly is a good example of responsiveness.\r\nIf customers see that the company is willing to help, this will cause trueness and it will let them know that you are concerned about them. Assurance is the ability to convey trust and confidence. Being cultured and showing respect for customers will create trust. Also having professional and knowledgeable staff will creat e trust and confidence in customers. People enjoy meeting pleasant, knowledgeable people. By being pleasant and knowledgeable to everyone a business will present the kind of business image that draws new business. Empathy is the ability to be approachable. Empathy involves treating customers as individuals. When a customer has a problem they should not be afraid to ask questions. A company should adapt to the specials needs of a customer.\r\nListening to customers concerns and proving them with a positive solution is how you show empathy. CHAPTER EIGHT culmination Airline industry in India is plagued with several problems. These include high aviation turbine fuel (ATF) prices, rising labour costs and deficit of skilled labour, rapid fleet expansion, and intense price competition among the players. But one of the major challenges facing Indian aviation industry is infrastructure constraint. Airport infrastructure needs to be upgraded rapidly if Indian aviation industry has to cont inue its success story. Some steps have been taken in this direction. dickens of Indias largest airports-Mumbai and New Delhi-were privatized recently.\r\nTwo Greenfield airports are coming up at Bangalore and Hyderabad in southern India. Investments are move into almost all aspects of the industry, including aircraft maintenance, pilot training and air cargo services. The future prospects of Indian aviation sector look bright. The Indian aviation industry has witnessed remarkable growth in recent years, with key drivers being positive economic factors, including high gross domestic product growth, good industrial performance, and corporate profitability and expansion. Other factors include higher useable incomes, growth in consumer spending, and availability of low fares. FUTURE PROSPECTS OF INDIAN AIRLINE heavens\r\nConsolidation in the aviation industry: Consolidation will ease competition and give pricing power to the dominating players and as a result of higher fares even smaller players like SpiceJet stand to benefit. The air fares for SpiceJet are anticipate to increase by 7. 4% and 3. 6% during FY08E and FY09E respectively. Due to booming economy, it is believed that the growth in the aviation industry will continue in the scenario of increased airfares. Generally it is believed that the aviation sector in any country grows at twice the growth rate of its GDP. In India, the GDP is growing at more than 7-8% per annum, which makes the growth rate in the aviation sector to be in excess of 15%. Aviation industry in India is expected to grow at a much better rate than this because the industry is at a nascent stage with lower base and low penetration.\r\n absolute passenger growth to boost top-line and profit: Strong passenger growth would lead to 86% CAGR (Compound Annual Growth Rate) growth in revenues for the next two years. change magnitude passenger volume would also help in spreading fixed cost over larger passenger base there by bringing down per unit cost. Domestic Passengers: In the last three years, the number of passengers travelling by air has more than doubled with industry carrying 34mn passenger during FY07. On back of revolution of upper class rail passengers to air travel and the surging tourism industry we expect the number of people travelling by air to increase at a CAGR of 25% to 67mn by FY10E. We expect the revenue passengers for SpiceJet to increase from 2. 8mn in FY07 (12 months) to 6. mn in FY09E, a CAGR of 58%. The expected growth in revenue passenger is on account of aggressive increase in fleet size from 11 aircrafts in FY07 to 23 aircrafts by FY09E. REFRENCE Books and Journals: Adrian Palmer (2001), Principles of Services Marketing, third edition, McGraw Hill, London. Kotler (1998) Marketing Management ordinal Edition The Economist, 4th January 2002 A new way to fly Websites Referred: www. 4ds. com www. epinions. com www. business. headlinesindia. com www. oppapers. com www. icmrindia. org www. a irindia. com www. flyairdeccan. net www. spicejet. com (www. spicejet. com/pdf/BSE_Q2FY08) www. jetairways. com www. flykingfisher. com\r\n'