ppt mrktng air deccan

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    Air Deccan

    EVERYONE - CAN FLY

    Made By: Group 10

    SIDDHARTH B60

    SWARNIMA B62

    PRIYA B67

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    The Indian

    economy has

    grown at an

    average rate of

    around 8% in

    the last

    decade: The

    rise in business

    and leisure

    travel (bothdomestic and

    international)

    Since 2003,

    when low fare

    travel in India

    was usheredin, a number of

    low cost

    carriers (LCC)

    have entered

    to serve thisfast growing

    market

    However, all of

    the LCC

    carriers and

    with rareexceptions

    even the full

    service carriers

    (FSC) charging

    higher fareshave been

    making losses.

    On 19

    December

    2007, it was

    announced

    that Air Deccan

    would merge

    with Kingfisher

    Airlines.

    An Overview

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    LCC

    A low-cost carrier

    Or low-cost airline

    Considered as a no frills, discount or cheapflight

    An airline offering low fares with fewer

    comforts.

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    Strategies planned by Air Deccan

    Misson : Provide reliable, low cost and safe travel to the

    common menStrategies:

    High Aircraft Utilization

    Route planningDynamic pricing

    Cost reduction

    Marketing & promotion

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    Major players in the Industry

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    Positioning of Different Carriers:

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    Empowering every Indian to flyVision:

    To demystify air travel by providing

    reliable, low cost and safe travel to

    the common man by constantlydriving down the fares as an on going

    mission.

    Mission:

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    No Frills

    This means that it does not offer any complementary services offered by

    other full-service airlines.

    Complimentary services include multi-cuisine food, airport lounges,

    magazines, entertainment, etc.

    Incur not only the basic cost of food but also the cost of oven,

    microwave, preheated food cabins and serving trolleys.

    Moreover, the aircraft becomes lighter as a result of offloading of

    heating appliances which increases the fuel efficiency of the aircraft.

    This reduces costs associated with food, appliances, heating and serving

    (stewards and stewardess) thus, resulting in major costs savings.

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    STP ANALYSIS

    SEGMENTATION

    -geographic

    TARGETING

    -smallbusiness man

    -middle class

    POSITIONING-LCC

    -quality

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    MARKETING MIX

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    Product

    No frills air travel.

    Price

    Air Deccan has low fares 25% of seats at pricing between Rs 700 to Rs

    1500

    50% of seats were priced half of FSCs

    The rest 25% seats priced 70% FSCs.

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    Place

    It provides its services in 8 cities

    Customers can book their ticket by calling the 24

    hour call center.

    The customers also get their tickets in retail outlets

    Promotion

    Promoted through print and outdoor media Its advertisement mainly focus on low fares.

    Television advertisement

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    RE- BRANDING

    Purpose: to re-energize the brand

    Before

    Deccan colors withyellow and blue

    Crew uniform-Blueand white

    After

    Signature color of redwas incorporated intodeccan aircrafts

    Changed to red

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    SWOT ANALYSISStrengths :

    Leader in LCC segment

    First to target the middle class : First moveradvantage

    Highest load efficiency A Lean-and-Mean approach to staffing

    Weaknesses : Focuses mostly on South Indian market

    Limited staff

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    Opportunities :

    Plenty of scope for expansion of operations

    Could start Seasonal Employment

    Threats :

    High attrition rate

    The threat of new entrants into Low Price

    Segment especially IndiGo, Go Air and SpiceJet

    High Risk Perception

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    Why Low Cost Airlines are not so

    successful in India ???

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    Reasons

    Failed in effective administration

    Poor services

    Unable getting subsidiesLess interest of Government

    Failed in building trust factor

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    INNOVATIVE SUGGESTIONS BY WHICH

    THEY CAN KEEP THEIR COST LOW

    They should minimize the days of their flight.

    Discount offers on occasions & for Newlymarried couples.

    Toll-free number on which tickets can be

    easily booked.

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    CONCLUSION

    Air Deccan was successful in starting a low cost

    carrier and was able to carry forward the initiative

    that it has undertaken. The current scenario is

    something different as Air Deccan was overtaken byKingfisher.

    On 28 September 2011, Chairman Vijay

    Mallya announced that the company would soon

    stop operations of Kingfisher Red as it did not believe

    in low-cost operations any longer.

    http://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Vijay_Mallya
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