Description
covered in detail in this PPT. It covers the size of industry, network, major players, competition, trends, PESTEL, 7 Ps. It also covers Air India explicitly.
INDIAN AVIATION INDUSTRY
Introduction
• Framework Size:
• 75 million passengers • 5.6 billion dollars
• Growth:
• Around 15 % in last 10 years • Growth in current year ( 2009) O.7% • Vision: 280 million customers by 2020
Classification
• The players in aviation industry can be broadly categorized in three groups: * Public players * Private players * Start up players
Trends
• Consolidation in aviation sector • The number of passengers traveling by air is on the rise • For the traveling public, price is paramount in choosing a carrier: • Capacity is growing without much constraint • Cost structures will continue to handicap legacy carriers as they compete with newer airlines, as well as with overseas carriers • Oil prices are not expected to fall • Outsourcing
Factors that affected the trend
• Cultural- social class • Social- reference, family, roles and status • Personal- age, occupation, lifestyle, self concept • Psycological- perception, beliefs
PESTEL Analysis
• Political – Govt.is not stable Economy – Disposable income is increasing . GDP grow is more than 9%. • Social -- Status conscious
-- Awareness is increasing
-- Increase in Entrepreneurship • Technology – Indigenous technology is coming for aircrafts & airports.
•
Legal
--
Flexibility in entry .
The five year stringent law towards flying abroad .
• Environment – Stiff competition for hiring pilots (poaching) Easy FDI(49%) through secondary market
RAINBOW OF SERVICE MARKETING MIX
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PROCESS
PHYSICAL EVIDENCE
Why the "me too" rush
• • • • • • Foreign equity allowed Low entry barrier Attraction of foreign shores Rising income levels and demographic profile Untapped potential of India's tourism Glamour of the airlines
Pre-requisites for survival
• Low debt-equity ratio • Appropriate aircraft type • Aviation value chain
Major Players (Market Share)
Entry Of Private Players
Competitive Pressure
Full Service
Low cost Carriers changing the game
Indigo
Price
MAJOR THREATS
PORTER’S FIVE FORCE MODEL
Porter five force model
Competition
There are three kinds of competitive scenarios
• Competition between LCCs and FSCs • Competition amongst LCCs • Competition between LCCs and Rail services
For 150 years, rail service has been the most common means of travel in India, but the increase in LCC in the country and a much improved economy presents enormous opportunities to convert these rail passengers to the air.
SWOT Analysis
Strengths 1. Strong brand name 2. Oldest Airline 3. Monopoly in certain international routes 4. Government backup 5. Rights to travel 96 destinations. 6. Established infrastructure 7. It has prime parking space/slots. Weaknesses . Poor HR Strategies High Competition, Loss of market share High cost , poor cost control Inefficient usage of resources Bad Reputation, Poor Services Poor Aircraft maintenance Highest manpower ratio to aircraft Low feet size Poor reservation services Corruption in company THREATS Middle East Aviation Terrorism
OPPORTUNITIES Market Growth Geographic Location Lower Costs and Higher Quality
Segmenting, targeting and positioning
Segmentation
Segments for an airline can be -VPs, CEOs -Bollywood Stars -Politicians -Foreign Tourists -industrialists -regular -Oil exploring companies
Targeting
Air India has targeted regular customers. It has all sorts of customers • From superstars to businessman • From NRIs to commoners • From politicians to artists • Works as domestic carrier as well as international carrier also.
Positioning strategy
1. ATTRIBUTE
2. BENEFIT 3. USE/ APPLICATION
4. LEADERSHIP – quality , technology,
service
Re-branding
• Merged Indian Airlines and changed its logo. • Dropping of hyphen from its , name i.e. from “Air-India” to “Air India”. • Tagline “Fly Well” adopted. • Designing the seats (by DMA). • New uniform (new look to traditional sari) designed by Ritu Beri. • A graphic swan with Ashoka Chakra design.
FUTURE TRENDS
? The projection for Indian Aviation for 2020 is
estimated at:
o 400 million passengers o Including 180 million domestic passengers o 1,000 aircraft in the civil aviation sector
?Likely to follow the footholds of International Low Price Carriers e.g. Air Arabia, Southwest Airlines etc. ?More emphasis will be on Arabian and South-East Asian circuits.
REFERENCEShttp://www.wikipedia.orghttp://www.flyairdeccan.nethttp://www.goair.inhttp://www.spicejet.comhttp://www.hinduonline.comhttp://www.civilaviationweek.comhttp://www.businesstravelindia.comhttp://www.yahoo.comhttp://civilaviation.nic.inhttp://www.skygod.com /quotes/http://www.flykingfisher.comhttp://www.goindigo.inhttp://indiaaviation.aero
doc_305740382.pptx
covered in detail in this PPT. It covers the size of industry, network, major players, competition, trends, PESTEL, 7 Ps. It also covers Air India explicitly.
INDIAN AVIATION INDUSTRY
Introduction
• Framework Size:
• 75 million passengers • 5.6 billion dollars
• Growth:
• Around 15 % in last 10 years • Growth in current year ( 2009) O.7% • Vision: 280 million customers by 2020
Classification
• The players in aviation industry can be broadly categorized in three groups: * Public players * Private players * Start up players
Trends
• Consolidation in aviation sector • The number of passengers traveling by air is on the rise • For the traveling public, price is paramount in choosing a carrier: • Capacity is growing without much constraint • Cost structures will continue to handicap legacy carriers as they compete with newer airlines, as well as with overseas carriers • Oil prices are not expected to fall • Outsourcing
Factors that affected the trend
• Cultural- social class • Social- reference, family, roles and status • Personal- age, occupation, lifestyle, self concept • Psycological- perception, beliefs
PESTEL Analysis
• Political – Govt.is not stable Economy – Disposable income is increasing . GDP grow is more than 9%. • Social -- Status conscious
-- Awareness is increasing
-- Increase in Entrepreneurship • Technology – Indigenous technology is coming for aircrafts & airports.
•
Legal
--
Flexibility in entry .
The five year stringent law towards flying abroad .
• Environment – Stiff competition for hiring pilots (poaching) Easy FDI(49%) through secondary market
RAINBOW OF SERVICE MARKETING MIX
PRODUCT
PRICE
PLACE
PROMOTION
PEOPLE
PROCESS
PHYSICAL EVIDENCE
Why the "me too" rush
• • • • • • Foreign equity allowed Low entry barrier Attraction of foreign shores Rising income levels and demographic profile Untapped potential of India's tourism Glamour of the airlines
Pre-requisites for survival
• Low debt-equity ratio • Appropriate aircraft type • Aviation value chain
Major Players (Market Share)
Entry Of Private Players
Competitive Pressure
Full Service
Low cost Carriers changing the game
Indigo
Price
MAJOR THREATS
PORTER’S FIVE FORCE MODEL
Porter five force model
Competition
There are three kinds of competitive scenarios
• Competition between LCCs and FSCs • Competition amongst LCCs • Competition between LCCs and Rail services
For 150 years, rail service has been the most common means of travel in India, but the increase in LCC in the country and a much improved economy presents enormous opportunities to convert these rail passengers to the air.
SWOT Analysis
Strengths 1. Strong brand name 2. Oldest Airline 3. Monopoly in certain international routes 4. Government backup 5. Rights to travel 96 destinations. 6. Established infrastructure 7. It has prime parking space/slots. Weaknesses . Poor HR Strategies High Competition, Loss of market share High cost , poor cost control Inefficient usage of resources Bad Reputation, Poor Services Poor Aircraft maintenance Highest manpower ratio to aircraft Low feet size Poor reservation services Corruption in company THREATS Middle East Aviation Terrorism
OPPORTUNITIES Market Growth Geographic Location Lower Costs and Higher Quality
Segmenting, targeting and positioning
Segmentation
Segments for an airline can be -VPs, CEOs -Bollywood Stars -Politicians -Foreign Tourists -industrialists -regular -Oil exploring companies
Targeting
Air India has targeted regular customers. It has all sorts of customers • From superstars to businessman • From NRIs to commoners • From politicians to artists • Works as domestic carrier as well as international carrier also.
Positioning strategy
1. ATTRIBUTE
2. BENEFIT 3. USE/ APPLICATION
4. LEADERSHIP – quality , technology,
service
Re-branding
• Merged Indian Airlines and changed its logo. • Dropping of hyphen from its , name i.e. from “Air-India” to “Air India”. • Tagline “Fly Well” adopted. • Designing the seats (by DMA). • New uniform (new look to traditional sari) designed by Ritu Beri. • A graphic swan with Ashoka Chakra design.
FUTURE TRENDS
? The projection for Indian Aviation for 2020 is
estimated at:
o 400 million passengers o Including 180 million domestic passengers o 1,000 aircraft in the civil aviation sector
?Likely to follow the footholds of International Low Price Carriers e.g. Air Arabia, Southwest Airlines etc. ?More emphasis will be on Arabian and South-East Asian circuits.
REFERENCEShttp://www.wikipedia.orghttp://www.flyairdeccan.nethttp://www.goair.inhttp://www.spicejet.comhttp://www.hinduonline.comhttp://www.civilaviationweek.comhttp://www.businesstravelindia.comhttp://www.yahoo.comhttp://civilaviation.nic.inhttp://www.skygod.com /quotes/http://www.flykingfisher.comhttp://www.goindigo.inhttp://indiaaviation.aero
doc_305740382.pptx