Submitted by: Vikash kumar singh Roll number-194
submitted to: Prof.G.Kathuria
Spice Jet is a low-cost airline headquartered in Gurgaon, India. It began service in 23 May 2005 and by 2008, it was 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. SpiceJet is a budget airline operating in India and is a reincarnation of ModiLuft. It was formed by Ajay Singh, Sanjay Malhotra and the Kansagra family. It aims to compete with Indian Railways for those passengers who travel in the air-conditioned coaches of the latter. On 15 July 2008 billionaire Wilbur Ross suggested he would invest INR345 crore (US$69.97 million) in the airline. SpiceJet accepted an offer in principle from a US-based private equity firm that would make these funds available. SpiceJet operates over 243 flights daily to 29 Indian cities
Spicejet airlines India is a low cost airline with fares often bordering 1st AC rates of Indian railways. The owner of jet air had a clear vision of making Spice jet airlines India the number one low cost airline in India. With such aggressive marketing and a clear vision of making Spice jet airlines India the best low cost airline in India, Spicejet soon caught the imagination of people and in no time it became the number one low cost airline in India.
To become India’s most preferred low cost airline, by providing the lo west air fares and the highest consumer value to the price sensitive consumers of the country.
“To ensure that flying is no longer confined to CEOs and business travelers, but affordable to everyone”
To become India’s preferred low -cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers
Plan to induct nine more aircrafts by 2012 Target to raise revenue USD 400million to USD 550 million in next 12 months," Mr. Aggarwal said disclosing the company's plan to raise the stake in market
To have five more hubs in Chennai, Ahmedabad, Bangalore, Kolkata and Delhi Entered with Rs. 99 fares for first 99 days offering ‘low everyday spicey fares’ Aims to compete with Indian Railway’s AC segment
Aims at future fleet expansion to increase market share
SpiceJet has a unique marketing strategy that focuses on word-ofmouth marketing, supported by print and Internet media initiatives. To build further on its branding value, SpiceJet has introduced on-board merchandise sales such as goggles, airplane models, perfumes, caps and watches. Sales of branded merchandise will also be available through the company's website. While there is stiff competition in the low-cost carrier market in India, the competitive edge for SpiceJet lies in the quality of service offered during the flight. This has resulted in 42% repeat flyers, 45% of business travel and over 90% of passengers recommending the airline through word of mouth.
Spicejet airlines India is a very good option for flying as it provides immaculate services at affordable prices. The staff, crew members and the support staff at the ground has been well trained to provide the customers warmth and very hospitable services. The Spicejet airlines India has in mind the well being of the passengers and that is why it insures the passengers who are flying at very low charges. It has also come up with a unique Spice card and become to best budget airlinen
Small fleet structure Small load efficiency compared to Air Deccan Competition with new entrants Market share of East-central India High attrition rate To provide comfortable and convenient traveling at best affordable rate for all new jobbers, who whish to enjoy of life by air root and who wants to save money and time during journey for the age group of random
All the customer can find information and facilities just go through its website online about spicejet and they all can book /cancel their tickets wherever exist or new customers.
Year 1
Personal Shift management time
year2
year3
Hours of marketing work
Business Revenue Cash reserved for new restaurant
Strategic PR mentions Ranking in aviation
For many, budget airlines fill a need; they can now opt to fly where the expense might have once been prohibitive. Budget airlines are immensely popular with young tourists, backpackers, college kids, and travelers who simply want to get from one place to another in the cheapest possible way. They are so popular in some parts of the world in fact, that a few cities have airport terminals dedicated specially to these low-cost airlines. Kuala Lumpur in Malaysia, and its neighbor Singapore come to mind. Of course, the budget airlines industry is not without its detractors. A great many people, after having been initially attracted to the low prices, inadvertently complain of discomfort and dissatisfaction and eventually opt for traditional airlines instead. In the United States, here have even been lawsuits filed due to problems arising from delays Overbooking and poor service
Sample size -30 Age group – 21 and above Occupation – Passengers Place- IGI, domestic airport Selection- Random Income group above than 1,50,000Per anum Have grown children and, often, grandchildren as well •
Professional (white collar) occupations For business man New couple married trip
7PS OF SPICE JET PRODUCT PROMOTION PRICE PEOPLE Place PHYSICAL EVIDENCE PROCESS
PRODUCT Core product Transportation Supplementary product 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. You can buy Vegetarian and Non-vegetarian Snacks, Refreshments and Fruit juices, etc. on the flight. Drinking
Water is available for free to all passengers on Spice Jet fights In-flight entertainment : Spice Jet is a low cost airline and there is no electronic in-flight entertainment on the flight. Spice Jet has an entertaining inflight magazine called Spice Route Luggage services
PROMOTION PROMOTIONAL TOOLS: word-of-mouth marketing print ads in newspapers and magazines TV commercials Internet media initiatives. outdoor mix is has concentrated primarily on hoardings, railway platforms, airports, shopping complexes, and malls.
PROMOTIONAL TECHNIQUES Brand campaign Its tagline 'flying for everyone' The airline has also rolled out print campaigns across all leading newspapers from May 20, one day after the formal launch of the airline Basically the idea behind the campaign is to empower the ordinary people the power to fly
PRICE Spice Jet is India's 'best low cost airline', delivering the lowest air fares with the highest consumer value They have intelligently mixed low-priced ticket prices with decent onboard services to satisfy frequent travelers. Innovative pricing has also been central to the company's success. It also offers everyday “spicy fares”, which is very cheap and you can buy your ticket at extremely low fares. Also spicy codes and various promotional offers which give discounts to the travelers are provided
PEOPLE At Spice jet, ‘people’ are 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.
Domestic and Some Asian countries in urban city
PHYSICAL EVIDENCE Physical Evidence refers to the environment in which the service is delivered and where the service industry and customer interact. At spice jet, the aircraft by itself would make up the
physical evidence in this service. The airline has a single aircraft type fleet, the Boeing 737-800 which allows for greater efficiency in maintenance, and supports its low-cost structure. Spice Jet's aircraft are configured in a single economy class having 189 seats, which is among the highest in the industry . In-flight entertainment such as spice route magazine is provided
PROCESS The process signifies flow & reach of services to the ultimate users. PURCHASING PROCESS The process at spice jet begins at the time of reservation goes on to the confirmation of seats. The airline sells its tickets the following ways:via Log on to our website that is www.spicejet.com, look at the availability of flights and the available fares, select the flight and fares, agree to our terms & conditions, fill in your particulars, complete the payment process, and finally generate an itinerary. Call SpiceJet's 24-Hour Guest Sales & Reservation Center at 18001803333 or 9871803333. Go to any SpiceJet's walk-in airport ticket counters or sales offices. Or, you can book a seat at any of our SpiceJet Selected Travel Agents (For this service a non-refundable Transaction Fee will be collected by the Agent).
Entered with Rs. 99 fares for first 99 days offering low everyday spicy fares Fleet of 6 Boeing 737-800 with 189 Seats
A fixed-cost perishable product Limited sector (concentrated at only north –west- south indian) Small load efficiency compare to Air deccon
Future Fleet Expansion will increase its MarketShare Attractive fares and up to date Quality service willgenerate a huge customer base comprisingfrequent flyers. Tax holiday on aircraft leasing on the union Budgetof the Government of India announced in June2004, announced a 5year tax holiday on aircraft leasing.
High Attrition Rate
Killer competition -The Indian skies are witnessing a bloody battle for market share. A much anticipated fare war has broken out across Indian skies
To justify all marketing expenditures from a zero base each year against the task that you wish to accomplish.
It is one of the most difficult aspects of marketing planning to master, largely because it is philosophical and qualitative in nature.
Key points: 1. Role or Contribution Profit Service Opportunity seeker 2. Business definition 3. Core Competencies 4. Company/Division Positioning Indications for the future
Motherhood It found in annual reports designed to “stroke” shareholders/Non Practical Use The Real Thing Meaningful Statement/impact on the behavior of the executives at all levels. Purpose Statement Lower-Level mission statement/Appropriate on the strategic business unit, departmental or product group level of the organization.
