Marketing Strategy for Go Air

The assignment requires an analysis of the market conditions using PESTEL analysis to understand the positive and negative impacts on business activities. Additionally, it involves the use of Ansoff Matrix to plan strategies for overcoming challenges in entering the international market. The goal is to provide a comprehensive marketing strategy for Go Air, including plans for generating more profit and revenue from the international market.

GLOBAL
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
Current Recent Trends in the market .....................................................................................1
Market Environment...............................................................................................................2
Challenges faced by the organisation.....................................................................................4
Marketing Strategies...............................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The organisation chosen in this part is Go Air which is one of the biggest airline
company. This part will majorly cover various marketing strategies which can be adopted by the
organisation and the latest trends and challenges which the organisation is currently facing. The
major focus of this report will be on evaluating the ways which can be adopted by organisation
to grow and expand its business in the international market.
Current Recent Trends in the market
Go air is one of the biggest Indian airline which works with the motive of satisfying its
customer's in the best possible manner. There are approx 24 domestic and 4 international flights
of the organisation. The customers of Go Air is continuously increasing because the organisation
is making changes as per their needs and wants. Aviation industry is majorly works with the
motive of attracting large number of customer's by proving them wide range of services. One of
the major reason behind the growth of this is customer's are now preferring better services with
less cost involved. It is very much essential for the organisations in Aviation industry to know
the latest trends going on in the market. This is because with the help of these trends Go Air can
easily make changes in its working structure. Trends can either help the organisation in growing
and enhancing its business or can lead to decrease the profitability of the organisation. This is
because the organisation is successful in making changes as per the trends than its business will
grow and if it is not done in the systematic manner than it may have an adverse impact on the
organisation. Current trends going on in the market can be known by analysing the needs and
preferences of the customer's and also by knowing the competitors strategies. If Go Air fails in
adapting the trends than the growth of the organisation will decline as the customer will not be
satisfied with the services of the organisation (Baker, 2014). There are various trends going on in
the aviation industry. Some among them are discussed below-
 Technological Development- The major focus of various organisations in aviation
industry is to use latest technology for satisfying the customer's needs. Artificial
intelligence is one of the latest trend which is going on in the market. This is because
there are less resources available in the Aviation industry. So to improve the passenger
process many organisations have started using Artificial Intelligence. With the help of
this, the issues and problems of the customers can be solved in the best possible manner.
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 Online and offline customer world- Customers of aviation industry can avail various
services by using online or offline medium. Customer's generally prefer to buy their
tickets from online platform this is because it is more comfortable and convenient form
them. So keeping this is in mind organisations are now making changes in their working
structure by introducing various services to the online platform. Channels for providing
the services to the potential customer's is decided according to the current demand in the
industry (Slater, Hult and Olson, 2010).
If Go Air is successful in adopting these trends then it will be easier for the organisation to
increase their performance in the international and domestic market. As these trends will directly
help in attracting and retaining more and more customer's.
Market Environment
Market environment consist of the various factors which affects the working of the
organisations. It is essential for every organisation in the aviation industry to properly analyse
the market environment for effectively achieving the long term and short term goals. With the
help of market environment competitors’ strategy can be easily known and appropriate changes
can be done according to the results of the analysis. Market environment of Go Air can be done
with the help of PESTEL analysis. As this analysis will deeply analyse the market conditions and
can also guide new ways which can used for increasing the profitability and satisfaction level of
the customer's present in the international market. So the PESTEL analysis for the organisation is
discussed below-
Political Environment- These are the rules and regulations imposed by the government
on the organisation. Go Air is currently facing various strict regulations form the government of
India. This is because there are various kinds of risk associated with such type business. These
restrictions are generally imposed to protect the passengers from any kind of accident or damage
but this factor is affecting the business of Go Air. It is necessary for Go Air to make changes in
its strategies to overcome the problems which are caused by political factor. The political
conditions for Go air is not stable this be because government of India continuously makes for
improving the working conditions .
Economic Environment- These are the change in inflation or deflation rate of any
country which directly impacts the working of the organisation. This factor have an adverse
impact on the business of Go Air because if there is recession in India than the business of
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aviation industry is largely affected. The economic environment for Go Air is stable because of
the rapid and increasing investment in various organisations. The increase in liberalization policy
can also help the organisation in enhancing its business in a proper manner(Christopher and
Peck, 2012).
Social factor- These are related with the social values of the organisation and its
customer's. The demands of the customer's of Go Air is rapidly changing because now they are
more concerned about their values and beliefs. Go Air needs to analyse the demand of its
customer's and plan various things accordingly. If this is not done than the organisation might
suffer loss from the international market. The potential customer's of India are demanding such
services which can increase their overall experience. So it is best opportunity for Go Air to
attract wide range of customer's.
Technological Environment- It is concerned with using latest technology for sustaining
in the market for longer period of time. Using latest technology is the most important aspect for
Go Air in order to increase the satisfaction level of the potential customer's in India. Go Air can
introduced online access ticketing facilitates to the customer's for saving their time and also for
competing with the competitors in the international and domestic market. A part from this Go
Air also needs to adopt various new strategies by using new technology for enhancing its
services. Such as it is quite essential for Go Air to empower it suppliers by making plans to satify
them. This because if it is not done the business of Go Air in India will be affected.
Legal Environment- These are the legal laws and regulations which are to be followed
by the management of Go Air. Go Air also needs to form proper polices regarding the services
which are to be provided to the customer's. According to the legal environment of India is
essential for organisations to serve their customers well. So the legal environment majorly
focuses on how the passengers are to be treated and what measures can be taken to improve the
experience of the potential customer's. If this law is not taken into consideration by Go Air than
the organisation might start loosing its customer's of the country.
Environmental Environment- This factor largely affect the business of aviation
industry because it is essential for various organisations to take care of the environment and
other factors related to this. Go Air need to make better service for maintaining an environment
friendly atmosphere. The environmental factor is currently demanding fuel efficient aircraft.
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Organisation can also introduce green flying strategy for protecting the environment and also for
competing with the competitors in the best possible manner (Sarin, Challagalla and Kohli, 2012).
If the organisation is successful in properly analysing the external environment than it
would be easier for Go Air to effectively handle the problems in the international market. As by
doing this the management of the organisation will know how to manage various things for
growing its business. Since the organisation has large number of competitors available so the
main focus must be on making better plans for giving tough competition to its competitors. This
can only be done by knowing the competitor strategies and also by making continuous changes
in its working structure.
Challenges faced by the organisation
There are various problems faced by the organisation in the domestic and international
market. These problems are directly resulting decrease the growth and profitability of the
organisation. One of the major reason behind this Go Air is unable to plan various things in
advance. Due to this a desirable position is not attained by the organisation in the international
market. To overcome the challenges, Go Air must analyse the market conditions and demands of
the potential customer's. Some of the major challenges faced by the organisation are discussed
below-
 High Competition- There are large number of competitors present in the domestic
market and due to this customer's of Go Air are shifting to other organisations. The
business of Go Air is largely affected as its competitors are continuously focusing on
making new changes for attracting more and more customer's. One of the biggest
competitor of the organisation is IndiGo which is making plans for increasing
competition in the aviation industry. Due to the intense competition in the market the
business of Go Air is largely affected. (Morgan, 2012).
 Tax Barriers- There are various taxes imposed on the organisation which is resulting in
mismanagement of the activities of Go Air. The organisation is unable to conduct its
business activities in effective and efficient manner because these tax rates in this type of
industry is very high. Go Air is expected to pay high taxes to the government so because
of this the revenue and business of the organisation is at danger. If the management of
the organisation is unable to handle the tax rates than the growth of the business will be
affected.
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 Extensive Diversities- The organisation operates in various types of diversities and
culture. Due to this it is hard for the organisation to manage various things at a time. The
customers of Go Air belong from various diversities so it becomes essential for the
organisation to consider each and every diversity so that every type of customer is
satisfied. But it is seen that organisation is unable in doing this and due to this the goals
and objectives for entering into the global market will not be achieved.
These were some of the challenges faced by Go Air there are various other challenges also. To
overcome these challenges, Go Air can adopt various new strategies and plans. If this is not than
the organisation will not be able to survive in the international market for longer period of time.
The major focus of the organisation must be on converting the challenges into opportunities. As
by doing Go Air will be able to achieve desirable position in the market (Popkova and et al.,
2013).
Market Structure- The marketing structure of the Aviation industry consist of various
services which directly help in focusing on satisfying the customer's in the appropriate manner.
The market structure in this type of industry has very few sellers. The major focus of these
operators are on providing better services so that overall growth of the industry can be achieved.
If the market structure of Go air is proper than it will be easier for the company to expand its
business in the global market. As with the help market structure each and every activity related
to the functioning of the organisation in the domestic and international market. There are various
types of market structure but the aviation industry generally works on a particular structure
which is limited number of sellers which provide homogeneous product.
Market competition- The business of Go Air is not at the growth stage because of large
number of competitors present in the domestic market. If the organisation wants to expand its
business in the global market than the it would be necessary for Go Air to make better marketing
strategies and structure. If this is not done than the situation will be worse IndiGo is one of the
biggest competitor for Go Air so to give tough competition new and innovative ideas are
required to be implemented in the effective and efficient manner. If it is done the Go Air will
have the potenial to enter in the global market.
Marketing Strategies
If the organisation wants enter in the international market in the best possible manner
than focus can be emphasised on using various marketing strategies in the systematic order. As
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these marketing strategies will help the organisation in attracting more and more customer's.
With the help of these strategies the management of the organisation will have a clear idea
regarding the activities and plans which can be adopted for the achievement of goals and
objectives. One of the best marketing strategy which can be used by Go Air is Ansoff Matrix for
planning various things for the growth and development of the organisation.
Ansoff Matrix is the tool which is used for systematically planning the activities and
strategies for the overall growth of the organisation. This type of strategy is generally used to
enter into any new market and to increase the market share of the organisation. It is essential for
Go Air to know the probable areas of improvement so that further steps can be taken to gain a
desirable position in the market. The various parts of Ansoff matrix is discussed below-
Market Penetration- This strategy is concerned with making plans for the growth of the
organisation in the existing market. This can be done by making necessary changes in the
existing services of the organisation. Go Air can try to increase the market share by making
necessary changes in the price of its service in a particular market (Shaw, 2016). This means the
price of air ticket can be decreased for capturing large part of the market. The management of the
organisation can also increase the advertising and promotion. To attract large number of
customer's in the international and domestic market. As by doing this Go Air will be able to
make the customer's aware about their services. Since the major focus of the organisation is to
expand its business at the global level so this strategy would not be suitable for Go Air. It will
not help Go Air in expanding its business in the international market.
Market Development- These type of strategies are related with the growth of the
organisation in the new market or at the global level. This is generally done by using current
service strategies in the new market. This strategy would not be beneficial for the organisation
because the needs and demands of the customer's Go Air might differ from the need of new
market customer's. So due to this the organisation might face problem in establishing and
growing the business. Using this strategy will be a riskier task because market conditions may
vary.
Product Development- In this type of strategy a new range of service are offered to the
potential customer's. The services are generally launched after analysing the needs and
preferences of the customer's. But this strategy would also not be suitable for Go Air because the
focus is on entering into the new market and not on developing the current market conditions. If
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the organisation aims at using this than the major motive would not be achieved and Go Air
would not be able to grow its business at the global level (Alstete, 2014).
Diversification- This strategy aims at introducing new range of services in the new
market. The major focus of this strategy is to capture the large market and to satisfy the need and
preferences of the customer's at the international level. This strategy can only be adopted if the
motive and objective is pre determined. If this is not done the chances of risk and uncertainty
will be increased and the resources of the organisation will be wasted. Since Go Air is currently
focusing on expanding its business at the international market than it would be most suitable for
organisation to use this strategy (Craciun and Barbu, 2014). As with the help of this strategy each
and activity related to the functioning of the organisation in the international market can be
properly managed. It will also help the management of the organisation to decide the future
action plan in the systematic and coordinated manner. Go Air will also be able to make better
plans for giving better competition as each and every aspect will be analysed properly and plans
would be made in the proper manner. After the implication of this strategy Go Air would be able
to generate more profit and revenue from the international market as the degree of risk will be
comparatively low (Kalinina, 2016).
CONCLUSION
The organisation is focusing on entering into the international market than it is essential
to various challenges and risk which will be available and organisation has to make plans for
overcoming such challenges. If the organisation fails in analyse the market than its business
might be affected and the customer's would not be satisfied. The analysis of the market
conditions can be done by using the PESTEL analysis. As with the help of this positive and
negative impact of the environment on the business activities can be known. Whereas for
overcoming the challenges Ansoff Matrix can be used by the organisation. By doing the goals
and objectives for entering in the international market will be achieved in the effective and
efficient manner.
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REFERENCES
Books and Journals
Alstete, J. W., 2014. Strategy choices of potential entrepreneurs. Journal of Education for
Business. 89(2). pp.77-83.
Baker, M. J., 2014. Marketing strategy and management. Macmillan International Higher
Education.
Christopher, M. and Peck, H., 2012. Marketing logistics. Routledge.
Craciun, L. and Barbu, C. M., 2014. The Brand as Strategic Asset of the Organization. Revista de
Management Comparat International. 15(1). p.69.
Kalinina, K., 2016. The classification and comparative analysis of the methods available for
developing the financial strategy of a company. Journal of Economics and Social
Sciences. (8). p.6.
Morgan, N. A., 2012. Marketing and business performance. Journal of the Academy of
Marketing Science. 40(1). pp.102-119.
Popkova, E. G., and et al., 2013. Marketing strategy of overcoming of lag in development of
economic systems. World Applied Sciences Journal. 26(5). pp.591-595.
Sarin, S., Challagalla, G. and Kohli, A. K., 2012. Implementing changes in marketing strategy:
The role of perceived outcome-and process-oriented supervisory actions. Journal of
Marketing Research. 49(4). pp.564-580.
Shaw, S., 2016. Airline marketing and management. Routledge.
Slater, S. F., Hult, G. T. M. and Olson, E. M., 2010. Factors influencing the relative importance
of marketing strategy creativity and marketing strategy implementation effectiveness.
Industrial Marketing Management. 39(4). pp.551-559.
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