Indigo air hoses are be aftering to present new promotional offers for the possible clients. The purpose of the administration is to increase the current market portion by at least 30 % .The end of this selling program is to sketch a new selling scheme to pull the possible clients from other air hoses, to pull the first clip travelers every bit good.

The demographic for the administration consists people of all age groups with mean income and in-between category life manner. In a recent study it has been found that in India more than 20 % people prefer air travel more than any other conveyance installation. Due to the sudden addition in the market for air hose travel it can be said that it is easy to capitalize on the current image of the house, nevertheless it could be a small hard to derive competitory advantage in forepart of the rivals.

Quality for the house is the most of import thing so quality can ne’er be compromised with and that is the slogan of the house.

1. Introduction

Organization and merchandise

Indigo air hose is a low cost air hoses company runing from India since 2006. It has been really successful in the low cost air hoses concern from the clip they have begun operations. They are one of the market leaders in the low cost air hoses service suppliers and have a really good repute in the Indian market. The ground for their good repute is because of their promptness and the service that they provide. Indigo air hoses are presently providing to the demands of the domestic travelers in India and have been winging the sky since 2006. It has gained advantage in the market due to the promptness and the monetary values that they offer to the clients.

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The demand for new merchandise offers arise from the increasing market which is turning at a rapid rate. The new offers for the air hoses can non merely pull possible clients but can besides pull the loyal clients of other air hoses as it would be really cost effectual doing it low-cost.

“ The award-winning low-fare air hose that is redefining the air hose concern in India bagged the NDTV Profit Business Leadership Award 2009 in the class of Aviation ” . ( )

Strategic Plan and Focus

To accomplish the house ‘s strategic way, the house ‘s aims, mission, purposes, ends and competitory advantage have been created to offer an image and vanguard for the house ‘s success. In accretion, to find the extent of the services and merchandises that are offered by the administration, and the primary environmental committedness towards state and the air power industry, are besides of import facets of the company ‘s strategic way and focal point.

Mission Statement

Indigo air hoses aims to go the figure one leader in the low cost air hose industry of India, offering the best service and guaranting highest criterions of quality at low cost to the client.

Goals and Aims

Non- Financial

Indigo air hoses purpose to achieve the extreme rank of client satisfaction in footings of the service and merchandises offered by the house. The direction ensures that the highest criterions of quality are in topographic point at every degree to guarantee 100 % client satisfaction.


The fiscal end for the house is to guarantee highest rate of return for the investors and the stakeholders and increasing the net income by following stairss.

Effective costing of merchandises

Cost film editing

Increasing the market portion by 25 %

Core Competences / Competitive Advantage

The strengths for indigo air hose in the current market state of affairs are the monetary value ticket of the tickets and the fact that it has been awarded many times in 2009 as one of the best low cost air hoses. The recession was utmost and most of the people who were utilizing services from jet air passages and kingfisher came down to low cost air hoses ( fiscal express ) .The market about doubled for the low cost air hoses as in the times of recession companies wanted to cut costs so most of -the official travel ( Domestic ) was done through low cost air hoses.

Indigo air hoses are a low cost air hose and because of that when they earned in recession they did non cut down on employees in fact they hired more employees. This gave a better image and repute for the air hoses. This scenario helped indigo air hoses to put more in their staff accomplishments and there air hose operations squad which gave them competitory border over the competition in the market.

2.4. Situational Analysis

2.4.1 SWOT Analysis

Harmonizing to the SWOT analysis there are more chances and strengths for anil instead than failings and menaces but in order to increase the market portion and stabilise the growing it is of import to work on the failings foremost and maintain a strong focal point on the chances.


Good repute in the market

Skilled staff

High net income border in 2009 as compared to rivals

Lower cost of the merchandise as compared to the rivals


Relatively new in the market

Lacks in figure of flights as compared to the rivals


High Net income Growth

Rapid addition in the market growing

Merchandise development

Technological promotions


Menace of a new entrant

Higher growing rate of the market but addition in the competition

Market fluctuation


2.5. Industry Analysis


The market in India for the air power industry is a turning market. For old ages Indian air power industry was being dominated by air India ( Indian Aviation Journal2002 ) ..About 15 old ages back companies like jet air passages, air Sahara, spice jet, kingfisher and a few others came into image. In 2006 grand anil air hoses entered the air power industry. Mentioned below are the current market statistics.

Entire figure of domestic flights in India


Entire figure of seat addition

1.7 million a twelvemonth

% addition in travelers

12 % annual footing

% addition in flights

25 % annually

( Source Indian air power journal2010 )

2.6. Rival Analysis

As the air hose industry is going a large market due to the 12.8 % growing of the Indian air power industry in the last 5 old ages ( Indian Aviation Journal, 2002, ) .. There are new air hoses being introduced as low cost air hoses. The biggest competition for anil air hoses is spice jet air hoses which have been with anil for rather some clip as the strongest rival. Spice jet sells more tickets than anil ( Clash of the Titans hypertext transfer protocol: //, Date accessed 3rd December 2010 ) . This due to the clip span of the two air hoses being different, anil is a 4 twelvemonth old company where as spice jet has been there for more than 7 old ages ( Spice Jet Industry, hypertext transfer protocol: //, Date accessed 3rd December 2010 ) and is treated as a major in the industry when it comes to low cost air hoses. This competition has been traveling on for rather a batch of clip but now as anil has started doing name for itself spice jet is experiencing the heat excessively.


2.7. Customer analysis

The current client is more cognizant about the services and the rights, the monetary value and the difference between paying for nutrient. The increasing per centum of people going via aeroplanes every twelvemonth domestically is increasing this gives a little thought of the client demand. As the demand is increasing at a rapid rate the competition is increasing every bit good and the client ‘s outlooks are lifting.

2.8. Key Issues

The cardinal issues that can be derived out from the above mentioned are as follows

Competition is turning twenty-four hours by twenty-four hours non merely the rival

The market is altering like ne’er before

Introduction of a new service is a authorization

Indigo needs to market itself in the new coevals

Ansoff Matrix

Ansoff matrix is a tool which determines the growing of an administration and its scheme for the related growing.

hypertext transfer protocol: //

( Source Google images )

Market incursion.

Harmonizing to the ansoff matrix anil air hoses will aim the possible client which is going through trains and at the same clip the current client database to perforate the market.The range of marketing current merchandise in the new market is considered to be high hazard nevertheless by adding value in the current merchandise reduces the hazard. This will be by offering 10 % price reduction for the following visit. It will heighten the opportunities of increasing the client base.

Porter ‘s five forces

4.1. Competition

Indigo air hoses entered the market in 2006 and there were really strong rivals in the market so. The direct competition between anil air hoses and spice jet air hoses has been really popular in the Indian media as both the air hoses started slightly at the same clip. Indigo air hoses have reached competitory advantage over spice jet due to its monetary value ticket of the air tickets. By adding the promotional strategy anil air hoses will non merely gain advantage over spice jet but can besides pull the client informations base that spice jet posses.

4.2. Menaces of Substitute

The menace of replacement in porter ‘s theoretical account is considered to be a utility merchandise from another industry. For anil air hoses it is non truly something that they have to worry approximately. This is because as the air hoses were a menace to develop system in India and no other replacement could be provided to the clients besides air hoses. It is the fastest manner of going as the state does non possess any H2O transit being covered from sea on the three sides.

4.3. Buyer Power

The purchaser power is strong in the Indian market as the competition is really strong the purchaser has more options so what it used to be approximately ten old ages back. To weaken the purchaser power anil air hoses from the really get downing kept the monetary values of its tickets relatively lower so what the other rivals were offering.

4.4. Supplier power

The provider power in the Indian air power industry is weak particularly for indigo air hoses. Indigo air hoses have maintained a really strong relationship with the travel agents and travel web sites due to which the air hoses have non truly felt the heat from the provider ‘s side. Due to the direct relationship between the travel agents and air hoses the client is a spot weak and that shortens the authorization of the provider.

4.5. Menace of A New Entrant

The air hose industry in India is turning and this is one of the grounds there can be new entrants in the market that can do problem for anil air hoses. The advantage that anil has in the market is its lowest ticket monetary values. A new entrant while come ining the market has to guarantee that the ticket monetary values are either same or less so what indigo offers. The possibilities of cheaper ticket is a spot hard to conceive of nevertheless even if the rival comes up with cheaper tickets they will hold to setup the distribution channel for its merchandises and heighten the services which is hard and anil has an advantage on that.

5. Market-product Focus

5.1. Selling and merchandise aims

Indigo air hoses has identified its mark market as official travelers and remainder are all the possible first clip travelers. The merchandise aim is to increase the market share..

5.2. Target Market

The mark market for anil air hoses is as follows: –

The travellers who travel through trains and have a pre conceived impression of the aeroplanes being dearly-won so the trains.

Potential clients from the assorted other air hoses which are non happy with the monetary value and the service they get from the several air hoses.

The mark market demographics for anil air hoses are about 60 % official travelers and rest 40 % includes all types of travelers the metropolitans of India, Delhi, Mumbai, Bangalore and Chennai. Not disregarding the fact that the B class metropoliss besides have the potency to give net income. The consumers are sub divided depending on their age, profession, household size, and linguistic communication as anil air hoses is a service supplying organisation and in order to maintain the relationship selling sustainable it is of import to understand the demographics of the mark market.

This cleavage chiefly deals with the life styles of people there attitudes and there personality. Indigo air hoses being an air hoses company has to maintain in head the demands of the clients maintaining the above mentioned three positions as a base to supply good client service which relates straight to relationship edifice. The psychographic for anil air hoses are the people who travel through trains in first category and have a one-year income of more than 300,000 Indian rupees.

5.3. Market Positioning

The place of anil air hoses in the market is really of import as at the minute it is one of the best low cost air hose bearer in the Indian air power industry nevertheless due to a batch of new entrants and the being of some old rivals it is still non certain that it can be one of the best in the following approaching old ages every bit good.

Indigo air hoses will be positioned as an air hose which offers a merchandise that is non compromised upon in footings of quality service and committedness. It will be positioned as a stable air hose that will supply the services at a low cost.

Market positioning harmonizing to me is a how a possible client perceives a merchandise or a service before really purchasing the merchandise or rendering the service anil air hoses has to do the possible client feel that the service they are about to render from indigo air hoses is one of the best and is one of the most economical in its category as affordability is ever a affair of treatment when person plans to go via a low cost air hoses.

Marketing MIX

Merchandise Line

Indigo air hoses have considered a service offer which will bring forth optimistic feeling in the fluctuating industry at present. Any merchandise that a house offers to the client should be available to the client when they want it. The merchandise should be different from what the rival offers, such an offering to the client will bring forth wonder in the industry and the people will be ready to purchase it as it is available as per the demand. The best manner to accomplish such a market tallness is by offering the best merchandise that the company has with an added value. The house is selling low cost air hose tickets at the minute and has been bring forthing good net income over the old ages. To increase the market portion it is of import to retain the current client by supplying added values and offering the same to new clients every bit good. Mentioned below is the new merchandise line to pull the possible clients in signifier of a price reduction verifier which can be used by the client going the following clip.



Indigo air hoses merchandises are sold on-line, on the ticketing counters and through assorted travel agents. Pricing is one of the most of import facets for any concern as it determines the return on investing for the stakeholders. Indigo airlines is a low cost air hoses which makes the pricing to be even more complex as compared to its other rivals as there is non much of a border.

As per the new program that a price reduction verifier will be given to every new client Lashkar-e-Taibas create a conjectural equation to understand the pricing of the new merchandise.

Entire figure of flights by indigo airlines-118 in a twenty-four hours

Minimum ticket monetary value booked one month advance- INR 3200

Entire sitting capacity of A320-148 seats

Entire figure of travellers in a twenty-four hours in full booking-17464

Entire income for a individual concern day-INR 55, 884,800

Let ‘s take figure of first clip travellers in a day- 5000

Entire cost of price reduction vouchers- INR 16, 00,000

Percentage addition from last clip in travellers 21 % every month


Indigo air hoses have two cardinal aims in its promotional program. They are as follows

Achieving new merchandise acknowledgment

Escalating gross revenues for the concern.

Promotion of anil air hoses offers will be done through assorted mediums such as






In schools and colleges

Word of oral cavity

Topographic point

For a merchandise to be successful it is really of import to place the right topographic point and the right people. Harmonizing to the demographic analysis mentioned above ( aim market ) it is really of import to pull the mark market. Internet is the best tool to make so by increasing selling chances through travel web sites from which people normally buy tickets. Posting of import updates and day of the months on such web sites can convey in a batch of trade name consciousness amongst the people who are willing to go on particular offers and monetary values. The supply concatenation has to be superb anil air hoses is a service supplier so supply concatenation construct does non comes in it, nevertheless if implied so the supply concatenation can be related with the optimal communicating between the travel agents and the air hoses supplying them with the best day of the months and functionality of the air hoses.


The people involved in the concern straight and indirectly are really of import for indigo air hoses as they will be supplying a batch of information. Travel agents will be supplying direct concern to the air hoses so a proper channel should be made to place the strength of travel agents in a peculiar country. Employees of a house are its best resource as the human capital additions production and optimal use people with high client services accomplishments should be hired to affect the patronage as anil is supplying client service. The client should be given first manus information as to what is the agenda for their flights in instance of any holds or complexnesss.


The procedure is related to the service bringing for the clients the best policy about it is to be honest if a flight is delayed give the exact clip for the hold and the ground even if indigo air hoses has to compromise on monetary value as client direction procedure should be every bit crystalline as possible to set up trueness of the clients.

6.7Physical grounds

The physical grounds is related to the feeling that the client gets the first clip they get in the plane as all the planes bought by anil air hoses are new and the care section works whole heartedly it give an feeling of a very clean environment henceforth supplying a good physical grounds.

7. Promotion Agenda

The completion of Indigo air hoses promotional agenda is a important characteristic for the success of the merchandise publicity. The execution of the merchandise publicity bundle will go on in 4 phases. They are mentioned below

Execution Phases

Phase 1- The first clip when a traveler buys the ticket from anil air hoses a proper note will be made utilizing the information provided by the client while booking. A verifier deserving 10 % price reduction of the following traveling monetary value will be given to the client while look intoing in for the flight by the client service helper which will be valid for the following 35 hebdomads.

Stage2- After the traveler has got the verifier he/she can utilize it merely at the anil airlines website or at the anil air hoses office to availa price reduction of 10 % in there following visit. The staff at the ticket counter will supervise the termination day of the month and cogency of the verifier.

8. Review of the Marketing Models

There are legion selling theoretical accounts that have been developed over the old ages and every theoretical account has been criticized for one ground or the other as it has been said nil is perfect it is true. One selling theoretical account can ne’er fulfill the wants of clients, providers, makers and administrations.

Let us look at the selling theoretical accounts that have been taken in the selling program to take the selling determinations.

8.1 Porter ‘s Five Forces

Porter ‘s five forces ” is a construction for the trade analysis and trade maneuver

Growth developed by Michael E. Porter of Harvard Business School in 1979. ( Kotler 2008 )

The chief failing of this theoretical account is that it was developed in the 80 ‘s when the concern environment was really simple and predictable and the concern competition in many Fieldss was non what it is today. Porter ‘s schemes do non guarantee superior net income ( O ‘ Shaughnessy.1988, Speed, 1989, MacDonald, 1992 )

As this theoretical account is a classical theoretical account it wholly ignores the facet of engineering. Technology in today ‘s clip is playing a critical function and if porter ‘s five forces are applied it does take into history the power of cyberspace. For an air hoses it is really of import to make the client in their places which can merely be done by the cyberspace. The five forces theoretical account does non take into history the vitamin E selling that has evolved after the 1980 ‘s and therefore has been criticized as a classical theoretical account. porter ‘s five forces theoretical account has a variable called menace of new entrant in this faculty porter negotiations about the barriers to be created by the current administration to forestall any new competition. if close consideration is given to this portion so it clearly states that making a barrier for competition is good but it can besides led to some houses fall ining manus in the market and repairing at that place monetary values or there trades so that no 1 enter the market and hence making the monopoly unethically and that is illegal. It has happened in the pas lysiene monetary value repairing confederacy is in the mid 90 ‘s was a large intelligence when houses from America, Korea and Japan got together to increase the monetary value of lysiene a kind of animate being provender linear ( Wikipedia ) . Which resulted in mulcts and imprisonment. This clearly states that doing programs entirely on porter ‘s theoretical account will non be a good thought. Till the clip person develops a better program so porter five forces will still be the first pick for the concerns ( goett,1999 )

8.2. Ansoff Matrix

Igor ansoff published an article “ Schemes for Diversification ” in the Harvard Business Review and the ansoff matrix was published in it since so it has been truly celebrated as a tool for the directors to develop a strategic growing strategie which can find the placement of the house. It is really good tool but it has to be incorporated with other tools of selling to accomplish significant resultsas it merely can give one portion of the scheme ( Jeffery. F. rayport,2001 )


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