Spice Jet

MARKETING STRATEGIES OF SPICE JET FOR ATTRACTING FDI

By:

Akhil Jain

Arth Vyas

Kingshuk Bangabash

Prasanna Narayanan

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INTRODUCTION OF COMPANY

Spice Jet is a low-cost airline headquartered in Gurgaon, IndiaBegan services on 23 May 2005 Today, it is India's second-largest low-cost airline in terms of market share Spice Jet was voted as the best low-cost airline in South Asia and Central Asia region by Skytrax in 2007

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MARKETING VISION

• Spicejet airlines India is a low cost airline with fares often bordering 1st AC rates of Indian railways

• Vision is to make Spice jet the number one low cost airline in India

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GOALS To become India’s most preferred low cost airline, by providing the lowest air fares and the highest consumer value to the price sensitive consumers of the country.

VISION

To ensure that flying is no longer confined to CEOs and business travellers, but affordable to everyone”

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To become India’s preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers

MISSION

MARKETING GOALS

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Plan to induct nine more aircrafts by 2014

Target to raise revenue USD 400million to USD 550 million in next 12 months

To have five more hubs in Chennai, Ahmedabad, Bangalore, Kolkata and Delhi

Aims to compete with Indian Railway’s AC segment

Aims at future fleet expansion to increase market share

MARKETING STRATEGIES

Word of mouth marketing, supported by print and internet media.

Introduction of on board merchandise such as goggles, airplane models, perfumes, caps and watches

Improvement of quality of service.

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Small fleet structure

Small load efficiency compared to Air Deccan

Competition with new entrants

Market share of East-central India

High attrition rate

CHALLENGES

IDEAL CUSTOMER

Budget airlines are popular with:-

Young tourists

Backpackers

College kids

Travelers who want the cheapest possible route

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MARKET DESCRIPTION

Age group – 21 and above

Occupation – Passengers

Income group above than 1,50,000Per annum

Have grown children and, often, grandchildren as well

Professional (white collar) occupations

For business man

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SWOT ANALYSIS OF SPICE JET

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SEVEN P’s OF SPICEJETPRODUCTCore product: Transportation

Supplementary product: Online check in services

In-flight refreshment: Provides snacks and beverages in selected longer duration flights, but you have to pay for them in cash on the flight.

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PROMOTIONWord-of-mouth marketingPrint ads in newspapers and magazines TV commercialsOutdoor mix is has concentrated primarily on hoardings, railway platforms, airports, shopping malls

PRICE Spice Jet is India's 'best low cost airline’.They have intelligently mixed low-priced ticket prices with decent on board services to satisfy frequent travellers. Innovative pricing has also been central to the company's success.

SEVEN P’s OF SPICEJET

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PEOPLE

At Spice jet, ‘people’ is the most important ‘p’.

The airhostesses at spice jet come in contact with the customers in the process of providing the service, while the cock-pit crew are employees who contribute to the service product but do not come in direct contact with the customers.

At spice jet the front line staff play a critical role in ensuring that the service is delivered to the customers as promised.


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PLACE: Domestic and Some Asian countries in urban city.

PHYSICAL EVIDENCE At spice jet, the aircraft by itself would make up the physical evidence in this service. Spice Jet's aircraft are configured in a single economy class having 189 seats, which is among the highest in the industry .

PROCESS Purchasing process at spice jet begins at the time of reservation goes on to the confirmation of seats.
