Market Effectiveness of Indigo Airlines: A Comparative Analysis Report

This report provides a comprehensive analysis of the market effectiveness of Indigo Airlines, a leading Indian airline. It begins with an overview of Indigo Airlines, highlighting its growth, market share, and differentiating factors, such as efficient ground operations and cost-saving techniques. The report then provides overviews of key competitors: Jet Airways, Spice Jet, and Go Air, detailing their target markets, positioning, and marketing strategies. A comparative analysis assesses the marketing effectiveness of all four airlines, focusing on the marketing mix (product, price, place, and promotion). The report identifies areas where Indigo can improve its marketing strategies by benchmarking against competitors. It concludes with recommendations for enhancing customer experience and overall management style to achieve a more ideal airline model. The report highlights the importance of proper marketing effectiveness to understand issues faced by different airlines and provides insights into improvements to their marketing mix.

Running head: MARKET EFFECTIVNESS OF INDIGO AIRLINES
MARKET EFFECTIVNESS OF INDIGO AIRLINES
Name of the Student:
Name of the University:
Authors Note

Executive summary:
The report throws light on the marketing effectiveness of the services provided by the
airlines company. India is one of the fastest and largest growing airlines in the world. To identify
the market effectiveness four major companies have been taken. This includes Indigo Airlines,
Jet5 Airways, Spice Jet and Go Air. The marketing effectiveness has been ascertained by the
comparison between the benchmark companies. The study has provided various parameters to
judge Indigo airlines that would provide the sense of improvement to become an ideal airline.
Moreover, few recommendations have been also provided after the comparison to make it the
more profitable and successful in future.

Table of Contents
Overview of Indigo Airlines:...........................................................................................................3
Differentiating factors of Indigo Airlines:.......................................................................................3
Overview of Jet Airways:................................................................................................................5
Overview of Spice Jet:.....................................................................................................................5
Overview of Go Air:........................................................................................................................6
Comparing Indigo with Ideal Airlines:............................................................................................6
Marketing effectiveness of Indigo, Jet Airways, Spice Jet and Go Air...........................................7
Recommendation:............................................................................................................................9
References:....................................................................................................................................11

Overview of Indigo Airlines:
Indigo Airlines is one of the fastest and largest airlines of India are enhancing their
customer experience both in the domestic and international markets. In the current times, Indigo
is considered to be India’s best airlines regarding its operational activities, profitability and
efficiency of flights. Indigo airlines are concentrating on introducing new offers for promotion to
its potential customers. The major aim of the airlines industry is to grow the existing market
shares by 30%. Indigo airlines marketing plan goal is to outline its new and creative marketing
strategy. This involves attracting the target customers from other airlines industry besides the
first time travelers.
Indigo’s demographic consists of individuals from all age group from middle class life
style to average income. In the current survey, it has been found that over 20% people of India
prefer to travel more by air than any other transport facility. When private airlines such as
Kingfishers has been shut stop in India and the national carrier is in despondency, indigo has
surprisingly emerged as the largest Indian airlines. Started in 2006 it currently held 37% of
market share in India with Jet Airways at second position with 24% (Goindigo.in. 2018). Indigo
operates over 800 flights on a daily basis to over 36 destinations. Although Indigo does not
follow a hub and spoke model yet the airlines central hub is Delhi airport.
Differentiating factors of Indigo Airlines:
Indigo airlines take major pride in the efficiency of their ground operations due to the
following reasons:

Efficient ground operations: The airlines have defined work for each single minute.
Every minute is filled with crucial sort of assigned works between the flight departure and flight
arrival. This process enables the crew members to clearly understand their assigned works. This
leads to greater efficiency within the organization. This is the key reason that leads to garner
various accolades and awards from the airlines industry as well as the customers. The reason for
the airlines uniqueness is that the flight even for a minute delay the staff needs to report the
reason via online system for the delay. Many competitor airlines though having a pre-flight
arrival briefing does not provide another briefing related to after flight departure.
Enhance customer handling: indigo has well defined three sets of adequate staff for each
of its flight operations. This includes cockpit crew, cabin crew and ground support. For Indigo,
one flight operation only needs a team of overall 25 personnel whereas; the other airlines
company needs around 40. Indigo take complete advantages of being a low cost carrier. It
focuses on its major objective of saving costs from the other ends.
Benefits of being a comparatively newer airline: mostly all the airlines in the industry are
new with average fleet age of 4.9 years. The aircrafts have enhanced modernized features with
latest generation engines that can lead up to 15% fuel savings.
High internal scrutiny: The airlines focus in maintaining all of its accounting and
paperwork efficiently. There are various types of auditors relating to finance, security that would
analyze and bring out their minute improvements. While other airlines comparatively cannot
involve into such depths (Ahearne, Lam and Kraus 2014).
Cost saving techniques: Indigo was the very first airlines to use iPad inside the cockpit
rather than the manual books. The airline company would previously use books that were too

heavy. Hence, to reduce the aircraft weight to obtain extra efficiency such strategy was
undertaken. Regarding maintenance, this airline company always tries to repair their technical
parts instead of replacing it. High focus is given to the cargo. As the cargo carries companies like
Flipkart and connect with e-commerce companies.
Overview of Jet Airways:
Jet Airways is the first private airlines of India that would fly to various international
destinations. It is an Indian premium airline that offers High class services to its customers
(Jetairways.com. 2018). The target groups are upper middle class and corporate personnel. The
travelers generally prefer comfort over economy. This airlines industry is a premium airline that
is based for serving both domestic and international sectors. The airline company has strong
customer’s services that provide frequent flier programs, in-flight entertainment and lounges.
The market share growth of Jet airways is tougher due to strong competition from different other
airlines (Elbanna, Andrews and Pollanen 2016). Moreover rising fuel cost and unfavorable
marketing condition is affecting the company’s business operations.
Overview of Spice Jet:
It is an Indian domestic sector airline that targets the middle class and lower middle class
companies. The segmented customers are usually cost conscious passengers so Spice Jet offers
tickets at a low cost with no major frills. It has a strong competition in the market but is backed
up by its promoters through efficient advertizing and branding. The market shares of the airlines
are comparatively low due to strong competition in the LCC segment (Spicejet.com. 2018). The
rising fuel costs can further decrease the margins required for Spice Jet. It has good presence in
the market due to its advertizing and branding techniques. The changing policies of the

government and international pressure are therefore affecting the operations of this airline
company (Dayan, Heisig and Matos 2017). Spice Jet in the recent times has interactive websites
to that would allow the customers for bookings and hotels. The company has a very limited
destinations and no international presence. Spice Jet has various opportunities to grow on
different popular destinations and routes. Moreover, the international tie-ups would help in
boosting the company’s brand image.
Overview of Go Air:
The parent company is Wadia Group and an Indian domestic sector the major advantage
lowest prices providing good services to its customers (Goair.in. 2018). The target customers are
middle class finally and lower middle class family. The tickets costs are also very low with no
extra frills. Marketing and good branding. It has covered mostly all the Indian cities and the
middle class. It has more destinations for the customers (Espinosa et al. 2015). The marketing
strategy of Go Air has effectively covered the entire major Indian citizen. The airline has almost
1000 flights every week. As Go Air has entered into the airlines market of India at a very later
stage and also has a very few destinations. Various new LCCs have already taken the lead in the
airline Industry. Moreover the ever-increasing fuel and labor cost is another major threats for Go
Air.
Comparing Indigo with Ideal Airlines:
Indigo Jet Airways Spice Jet Go Air
Parent company Inter Globe
Enterprises
Tailwinds Limited Spice Jet Wadia Group
USP Indigo Airlines
helps in providing
time performance
at a very cheapest
Being a premium
airline Jet Airways
in India offers
High Class
Spice Jet provides
lowest price tickets
with efficient
Lowest price
regarding Good
services airlines.

price. services. services.
Target Group Lower Middle
class/ Middle class
Corporate and
Upper Middle
Class.
Middle class/
Lower middle
class
Middle Class/
middle class/lower
middle class
Positioning Indigo Airlines is
very low cost with
no frill that is
connecting India.
This premium
airline serves
domestic as well
as international
sector.
They provide low
tickets cost with
no frills.
Low cost and no
frills.
Segment Cost conscious
passengers
A traveler
generally prefers
comfort over
economy.
Cost Conscious
Passengers
Cost Conscious
Passengers
Slogan Go Indigo The Joy of Flying Flying for
everyone: get
More when you fly
Fly Smart
Marketing effectiveness of Indigo, Jet Airways, Spice Jet and Go Air
Proper marketing effectiveness is essential in nature, as this will help in understanding the
different issues that are faced by different airlines. Proper understanding is essential and required
as this will help in sorting the issues with the help of analysis of marketing mix of the four Ps
that include product, price, place and promotion.
Particulars Indigo Spice Jet Jet Airways Go Air
Product The main
product is course
Air Travel and
line of cargo is
growing fast.
From the last few
years, it has
managed to
It has fleet of forty
five aircraft that
includes
comfortable along
with safe flying
and special
assistance is
included to
Jet Airways has
fleet of 117 carriers
and there are
different seating
options that include
business class,
economy class and
first class (Kunadi,
It is the largest
low cost airlines
and it includes
combo purchase
of the flight
inclusive of hotels
and this is

increase the
profit of the
airlines in an
effective manner
different travelers
who travel alone
(Boberg 2016).
Daud and
Nazarudin 2015)
efficient processes
Price It is the cheapest
airlines and it is
gaining
competitive
advantage in
comparison to
the other airlines
(Armstrong et al.
2015)
Estimated
revenues are
795.25 million
dollars and net
income 101.52
million dollars. IT
has adopted
pricing policy of
the competitive
pricing policy in
an effective
manner
It adopted fair
pricing strategy and
it is based on the
classes the
individuals belong
to (Boberg 2016).
The model used
by the airlines if
penetration of
pricing and this
helps them to
succeed in the
industry
Place Indigo Airlines
has adopted
different online
techniques that
has helped the
customers in
booking tickets
through online or
different
agencies in all
It occupies to
12.9% share in the
market and this
will help in
spreading their
presence in
different domestic
regions (Boberg
2016).
It operates its flight
in all domestic and
international
destinations in an
effective manner
(Halpern 2016)
It travels to all the
different and
almost to every
destination in an
effective manner
(Kunadi, Daud
and Nazarudin
2015)

over world
Promotion It relies on cost
and promote
their brand by
introducing the
different
magazines
wherein they sell
different kind of
products to
improve the sales
of the company
(Kotler 2015)
The policies of
branding and
advertising are
effective and they
are creating huge
presence all over
the world
(Camilleri 2018).
The promotional
plans include
campaigns through
newspaper and
magazines. It offers
Visa and Citibank
and it can be
redeemed at later
date as well
(Tomczak,
Reinecke and Kuss
2018)
They use the
tagline Fly Smart
as to inform the
customers as this
includes all their
different services
in an effectual
manner
From the marketing mix of all the airlines, it can be analyzed that the benchmark of Indigo has to
be more effective in nature. Jet Airways is one such suitable example that can be followed by
Indigo Airlines wherein this will help them in setting benchmark as to improve their marketing
mix in an effective manner. Indigo needs to travel to different foreign destinations as this will
help them in promoting their brand to a higher level and this will help them in increasing their
sales in the market as well.
Recommendation:
The major points related to Indigo and an Ideal airline company is as follows:

Management style: In the recent times, especially in the market condition of India the
major emphasis of the management for an ideal airline company should majorly be based on the
enhancing customer’s experiences. Improvements in the airline company are needed for all ends.
The flying time for aircrafts should be maximized and cost should be saved from all ends. Small,
adequate and efficient teams should be applied per flight. This should reduce the airport
expenses and group handling charges. Proper time for the flight is to be mentioned in detailed
about the turnaround time that is related to the timely arrival as well as departure (Cândido and
Santos 2015). The management of Indigo is an ideal management that is very innovative and
focuses on its continuous improvements.
Launching loyalty programs: a loyalty program would help in attracting new customers
from all the segments in the market. It would help in providing benefits to Indigo over low-cost
carrier such as Spicejet. Indigo should try to retain the business travelers, who are mostly
focused on savings. Indigo though offers cheapest prices and enjoys a loyal customer.
Choices of aircrafts: in a very highly competitive market such as India, it is very vital to
follow only one particular aircraft. It s vital to save costs as much as possible by using only one
type of aircraft. This makes the operations and handling is easier and streamlined.
Route planning: though the growth of Indigo is remarkable which can be seen it is route
planning but it should add new destinations. This would help in increasing the flight frequencies
between the two destinations. Better connectivity between the cities using based on festival had
could be looked upon. This would help the airline company to connect with the Tier II cities that
could lead in saving various time and money.

References:
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87.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Boberg, K.B., 2016. 16 Marketing of airline. Managing Tourism, p.179.
Camilleri, M.A., 2018. Integrated Marketing Communications. In Travel Marketing, Tourism
Economics and the Airline Product (pp. 85-103). Springer, Cham.
Cândido, C.J. and Santos, S.P., 2015. Strategy implementation: What is the failure rate?. Journal
of Management & Organization, 21(2), pp.237-262.
Dayan, R., Heisig, P. and Matos, F., 2017. Knowledge management as a factor for the
formulation and implementation of organization strategy. Journal of Knowledge
Management, 21(2), pp.308-329.
Elbanna, S., Andrews, R. and Pollanen, R., 2016. Strategic planning and implementation success
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