INTERNATIONAL SCHOOL OF

BUSINESS & MEDIA

INTEGRATED MARKETING
COMMUNICATIONS
GROUP PROJECT
ON
INDIGO CASE STUDY

SUBMITTED TO:
SHO SUBMITTED BY:
PROF. NARESH 20191067 P. SAI PRAMOD
B20195005 RONIT UPADHYAYA
20191045 JEEVAN JENA
20191015 ANKITA JAIN
20191023 ASHUTOSH SRIVASTAVA
20191102 SHUBHAM KUMAR
20191077 PRIYAM PRAKASH
20194441 ROHIT ASHAV
20191028 BHAVIKA NAHATA
 CASE SUMMARY

Indigo airline is a low cost airlines company operating from India since 2006. It has
been very successful in the low cost airlines business from the time they have begun
operations. They are one of the market leaders in the low cost airlines service
providers and have a very good reputation in the Indian market. The reason for their
good reputation is because of their punctuality and the service that they provide.
Indigo airlines are currently catering to the needs of the domestic travelers in India
and have been flying the sky since 2006. It has gained advantage in the market due to
the punctuality and the prices that they offer to the customers. The market in India for
the aviation industry is a growing market. For years’ Indian aviation industry was
being dominated by air India, about 15 years back companies like jet airways, air
Sahara, spice jet, kingfisher and a few others came into picture. In 2006 august
indigo airlines entered the aviation industry. As the airline industry is becoming a big
market due to the 12.8% growth of the Indian aviation industry in the last 5 years.
There are new airlines being introduced as low cost airlines. The biggest competition
for indigo airlines is spice jet airlines which have been with indigo for quite some
time as the strongest competitor. Spice jet sells more tickets than indigo. Only indigo
and spice jet are only the airlines that have reported profit of Rs. 550 Cr and Rs. 61Cr
(2009-10). Even after while jet and kingfisher posted loss, SpiceJet and indigo
remain in the market. Where kingfisher was facing loss the AirIndia and Indian
airlines were the India’s national flag carriers, known for their hospitality and
services. The new airIndia has two subsidiary carriers (AirIndia express and AirIndia
regional). Soon AirIndia get infamous for its lack of professionalism. In 2005
SpiceJet was the another budget airline operating nationally 33 cities and two
international flights. Indigo started as a pure low-cost carrier (LCC). Elements of
the LCC model were made popular by Southwest Airlines in the US and then
copied the world over. A raft of LCCs sprung up all over the globe. The
disciplined airlines that were devoted to the core principles of the LCC business
model thrived. The salient principles of the LCC model are a focus on short-haul
sectors, no-frills, point-to-point flights, and low fares delivered via a single fleet
and engine type. Complexity for this model was (and is) akin to a cancer and
kept at bay. Genuine LCC airlines utilize their assets to the hilt, with fast
turnarounds, minimal ground times and stubborn about stifling costs. Rather than
building a network spread across several points, they focus on maximizing
frequencies, allowing for amortization of fixed costs over a greater spread. They
also consistently offer low fares, which are a key determinant of demand,
especially in price-sensitive markets such as India. Indigo focuses on 0n-time
performance, Turnaround Time, Limited Passenger service, Avoiding in-flight
services, Aircraft Utilization, Low price tickets, No free meals, Point to Point
routes, Strategic usage of disposable time-sensitive travelers, Frequent &
Reliable departures bags for quick cleaning of Young fleet of aircraft (hence
Targeting high load factor aircrafts before landing less maintenance issues),
Highest no. of seats, Lower Employees per Aircraft, Light weight Seats, Fuel
Efficient Engine, Zero Inventory of components, Internet Reservations, Low
turnaround Times, Cost & Service Culture, Same Configuration of all, Human
Resource Training on Aircrafts providing flexibility Efficient processes in
allocation, Centralized Operations controls Centre, Highest no. of CAT-III
compliant Pilots Operational Cost Leadership Positioning Efficiency &
Competencies.

The position of indigo airlines in the market is very important as at the moment it
is one of the best low cost airline carrier in the Indian aviation industry however
due to a lot of new entrants and the existence of some old competitors it is still
not certain that it can be one of the best in the next coming years as well. Indigo
airlines will be positioned as an airline which offers a product that is not
compromised upon in terms of quality service and commitment. It will be
positioned as a stable airline that will provide the services at a low cost. Market
positioning according to me is a how a potential customer perceives a product or
a service before actually buying the product or rendering the service indigo
airlines has to make the potential customer feel that the service they are about to
render from indigo airlines is one of the best and is one of the most economical
in its class as affordability is always a matter of discussion when someone plans
to travel via a low cost airline. Market Penetration & Differentiation More than
15 Within 14 days of Within 7 days of Low Cost and High days prior to Travel
Quality of Service travel, the Base fare, the base fare Price to be differentiated,
with other could up to reach could reach uptowith respect to days fixed, Base up
to 1500s 4500before the travel. fare would vary High seating density and 101-
501load factor. No frills such as ‘free ‘food/drinks or lounges Targeting
segments locally based on seasons and festivals Recently launched EMIoptions
for consumers thereby expanding the potential customer base. In Dubai it has to
match wits against UAE’s flagship carrier Emirates where in Singapore it will be
competing with one of the best airlines of the world Singapore Airlines. In the
new market distribution is also the key challenge. The brand tagline “billion
reasons to fly” was catchy to youth also they don’t show the aircraft interior.
Using different media has built their brand. More focused towards word of
mouth, publicity and repeat customer. Indigo first TVC was average animated ad.
The president of Indigo said “low cost and low fare doesn’t mean low quality”.
No graphic approach gained attention to brand logo also the ad bagged Indigo
“best LCC print advertisement” award at the budgie $ world low cost airlines
Asia pacific awards,2010. Another print ad highlighting the comfort “two extra
inches’ legroom “on its fights. Indigo also constantly sends emailer to its
subscribers announcing the new routes and initiatives. Celebrity fashion designer
and stylist have given the crew a style with the modern feel to give them an
international look. They have launched a campaign in partnership with NGO
“save the children” on children’s day, and indigo passengers have opportunity to
contribute.

The airline industry in India is growing and this is one of the reasons there can
be new entrants in the market that can cause trouble and opportunity for indigo
airlines. The advantage that indigo has in the market is its lowest ticket prices. A
new entrant while entering the market has to ensure that the ticket prices are
either same or less then what indigo offers. The possibilities of cheaper ticket are
a bit difficult to imagine however even if the competitor comes up with cheaper
tickets they will have to setup the distribution channel for its products and
enhance the services which is difficult and indigo has an advantage on that.
Indigo have set an image by sustain in the market using the right focus and
strategy from day one it’s been the “no-frills chic” airline.

Q.1. Perform a SWOT analysis of IndiGo’s key competitiors.

What is IndiGo’s prime source of competitive advantage?

Key competitors
 JET AIRWAYS

VISTARA

AIR INDIA

GO AIR

SPICEJET

Strengths
One of the strengths of an organization in the aviation industry is the growing income
levels. The growth in individual incomes increases the amount of disposable income
and hence many people are able to utilize the carriers to fly to their destinations

Growth in tourism is also a major strength as it has led to a significant increase in the
number of domestic and international passengers with statistics indicating a 50%
growth in the number of domestic flyers and a 25% increase in the number of
international flyers.

Despite the downturns, air travel has continued to grow over time and is one of those
industries that are far away from reaching their peak. This can be partly attributed to
the ever growing population and the increase in the propensity of people to fly. With
efficient management, an organization in the aviation industry is guaranteed to grow
into a big and profitable enterprise.

Air travel has a marked safety record and has been generally accepted as a safe and
fast way to travel. Even the low cost growing airlines have safety and speed
attributed to them and therefore, a small growing airline shares this strength with big
and recognized brand names in the industry which is quite an advantage. Airline staff
consists of highly trained personnel, which is a major strength, to any organization in
the industry.
Weaknesses
One of the major weaknesses in the aviation industry is infrastructural development.
The development of infrastructure has been very slow thus unable to keep up the
pace of growth of the aviation sector. It is therefore, a major bottleneck in the
industry. A growing airline should therefore, give priority to investing in
infrastructure by constructing state of the art airports with adequate runways and
ample parking lots for passengers. It should also invest on routes leading to the
airports to help reduce passenger delays due to traffic.

Airlines have been known to have a very high ‘spoilage’ rate in comparison with
other industries. Once a passenger misses his/her flight, the income/revenue from that
seat is lost. In order to avoid or minimize this occurrence, the airline should establish
a method of contacting all the passengers prior to departure to remind them of their
flight. There should also be a larger time window between the boarding time and the
departure of the airbus to cater for those passengers who arrive late for their flights.

Aircrafts are very expensive and running an airline requires a very huge capital
outlay. For this to work to the advantage of the airline, proper marketing strategies
are required, and careful planning to ensure that returns on investment are greater
than the initial investment.

An airline may find it very difficult to compete with other carriers due to their low
fares. To survive this, the organization can lower its fares but ensure that they are in
balance with the returns to avoid losses. Extensive advertising campaigns on quality
can also give it an edge over the low cost carriers.

Airlines have to maintain a huge work force which is spread over an outsized
ecological area and which requires constant communication and monitoring. For this
to work to its advantage, extensive evaluation of the personnel is required to ensure
competence and also the ability of the workers to work under minimum supervision.

Opportunities
There are many opportunities that an airline can capitalize on to reap maximum
profits. Expected investment is one of the opportunities that can benefit an airline.
The aviation sector is ever growing, and there is an increasing number of
stakeholders in the industry willing to invest in air travel. An airline can take this
opportunity to increase its capital base so as to be able to enjoy large economies of
scale.

Development of new products and services can have a substantial blow on the profits
of an organization. In aviation, an airline can introduce mailing services for delivery
of mails and parcels across the globe. It can also introduce special fare packages for
those travelling to certain destinations for pleasure or business.

Technological advancement and investment in information technology is an

opportunity that can greatly help an organization to minimize its operation cost. An
airline can rely on information technology to offer more customers friendly services
and also provide customers with other services like internet while travelling which
would make them pay more for the services hence increasing the profit margins of
the organization.

The organization should evaluate end user response to its services to gain information
on what areas of its services to improve. This would go a long way in helping the
organization acquire new customers as well as retain its old ones who are satisfied
with the services being offered.

The organization should also take the opportunity to expand and cover a larger
geographical area. It should grow into the untapped markets and offer its products
and services in these regions. Having a large customer base would increase its
profits.

Acquiring better supply deals, for example, a less expensive fuel supplier would
greatly minimize the operation cost of an organization in the aviation industry. The
airline can also retain its suppliers but negotiate for better deals with the aim of
increasing its profit margin.

Cutting down on delays is very important in the aviation industry. Minimized delays
would mean less refunds and minimal compensation due to inconveniences made. It
would also help the organization to gain the customers trust thus establishing itself as
a carrier of choice for many travelers.

Linking up with other carriers in the industry is an opportunity that should not be
ruled out. Linking up with another carrier would increase the passenger volume
greatly. This can be done through ensuring a coordinated schedule where the airlines
offer their services to various destinations through a sharing agreement. Only one
carrier flying to a given destination from a particular location would enable the
partnering carriers to avoid the long time taken before an aircraft is filled.

Threats
There are many threats facing organizations in the aviation industry. Travelling for
leisure and business is greatly impacted by the global economy. A downturn in the
global economy means that less people are likely to travel for pleasure and to do
business. This leads to low income to the airline during this period. To minimize the
effect of this, the organization should devise a mechanism of lowering its operation
cost to the minimum possible levels to avert possible losses due to its operating costs
exceeding income.

Some government legislation can also be a major threat to investors in the aviation
industry. Intervention by the government can come with it rules which are very costly
to adhere to and also competition from unexpected quarters, for example, from
international airlines due to liberalization of the market.

Air travel is very vulnerable to environmental changes. Heavy storms are detrimental
to flight schedules, and this may mean refunding those customers who opt to cancel
their flights all together other than to wait. It can also lead to loss of an asset, for
example, the crashing of an aircraft. To minimize the effect of this, the airline should
ensure that it is well insured against losses resulting from these weather changes.
There should also be an insurance cover for its passengers.

Air travel has a seasonal demand especially where the largest percentage of travelers
involves those travelling for leisure. In this case, the highest demand is likely to be
during international holidays like the Christmas season and a significant decrease in
demand midway through the year. To ensure that there is no considerable drop in
customers during the off peak seasons, the organization can come up with a method
of encouraging people to travel during this period by, for example, lowering the
travelling rates, offering discounts and special travelling packages.

In recent times, air travel has been a target to terrorists, and this has had a very
negative impact on the airlines themselves. Frequent fliers have been scared away,
and the airline industry has lost a considerable number of customers. To gain back
the lost confidence, an organization should carry out an extensive campaign meant to
assure customers of their safety when travelling using their airline.

Over the next few years, huge investments are expected to be made in the aviation
industry. New airlines are likely to crop up and this will lead to a strain on the
available pilots, and airport staff. This will be a limiting factor to the continued
growth of the airline. To prevent this, the airline should start training its own pilots
and airport staff. This would in future give it an advantage over the other airlines
which would be experiencing a shortage of the same. The airline can therefore,
transform this threat into an opportunity by selling some of its staff to the other
businesses for a profit.

With the increasing number of airlines and aircrafts, there is likely to be a marked
shortage of airports and airport facilities. The airline should therefore, invest heavily
in its own airports and ensure that they have ample parking bays for its aircrafts.
The organization also faces the threat of being vulnerable to attacks by its major
competitors. It should therefore, have all the mechanisms of counteracting this in
standby so that it does not fall to accusations from other airlines.

Indigos prime source of competitive advantage

Low cost service and on time delivery

Strategies to maintain the competitive advantage

Single type of aircraft
Indigo’s whole fleet consists of A-320-232 aircraft while Air India, Jet Airways and
Spice Jet use 10, 9 and 3 different makes of aircraft respectively. This result is in
greater flexibility by making use of the same crew from pilots to flight attendants to
the ground force thereby cutting hiring, training and up gradation costs
Single Class
Having only Economy class means that Indigo does not have to spend time, money
and crew on privilege passengers. They also don't need to maintain expensive
lounges at airports further reducing costs.
Low average fleet age
Indigo has an average fleet age of less than 3 years. A younger fleet means less
maintenance costs. Indigo plans to maintain a lower fleet age as all its aircraft are
leased for a period of 5-6 years. This way they avoid the D-Check which is done after
8 years of operation of an airplane. (A D-check may take up to 2 months during
which the aircraft remains out of service.)
Fuel
Domestic fuel taxes can be as high as 30 per cent along with an 8.2 per cent excise
duty. As a result, fuel for Indian airlines accounts for about 45 per cent of total
operating costs, compared to the global average of 30 per cent. Indigo’s aircraft try to
save fuel by using software to optimize flight planning for minimum fuel burning
routes and altitudes and also by making use of latest fuel saving technology.

Route Planning
Indigo operates over a lesser number of destinations than its competitors but with a
higher frequency - with a fleet of 78 planes for 36 destinations while Spice Jet flies to
46 destinations with 58 planes.. The network maps show that all Indigo's destinations
are connected to at least two cities while most are connected to 3 or more
destinations, whereas this is not the case with Jet Airways. This means Indigo can
keep its aircraft in the air for a longer period of time and save up on airport charges.
Because of this Indigo has a high aircraft utilization rate of more than 11.5 hours per
day per plane. This also means that customers don't have to look for connecting
flights with other competing operators.
Tightly framed maintenance contracts:
Indigo has a Power by the Hour contract with International Aero Engines (IAE),
which provides the engines that put the onus of performance delivery on the
manufacturer. Indigo has similar agreements with Airbus, as well as with the vendors
for other critical components. These contracts probably come at a premium but it
means that Indigo does not have to pull out planes from service for repairs and also
does not have to maintain a large inventory of spares

Other cost-cutting measures

i. Turnaround time - An airline is charged for the duration its aircraft stays
at the airport. Indigo has a faster turnaround time (time taken between
landing and the next take-off) of 30 minutes. Point 5 is one of the reasons
for this. Having a single make of aircraft again helps in this regard as the
time taken by the crew gets optimized.
ii. Employee Aircraft ratio - Lower employee aircraft ratio of 102 compared
to Jet Airways’ 130 and Air India's 262.
iii. Stage Length - Average Stage length (flying time per flight) of 1.5 hours,
which means not having to stock and serve hot meals in most flights. This
again contributes to the low turnaround time.
iv. Most Indian airlines take delivery of aircraft by sending their own pilots
and engineers (to Toulouse in the case of Airbus). Indigo prefers to get
 them delivered to Delhi, this is costlier but it also leads to better utilization
of the available pilots and the engineering crew.

Q.2. Do you think that IndiGo’s point of differentiation, such as

‘low cost’ or ‘hassle-free services’ are sustainable? Why or why
not ?

In recent years, indigo has launched a series of significant steps, making a

marked departure from a pure low-cost strategy, long its mainstay and which
helped it become India’s largest airline. As the airline spreads its wings, the
extent of its ambitions is becoming clear.
Indigo is no longer content being the dominant domestic airline in India. It is
steadily positioning itself to become a major player in the international segment
as well. The change has not been sudden.
And the Low-cost strategy of Indigo is sustainable in the long-run for a
market like India.

The low-cost strategy:

Indigo started as a pure low-cost carrier (LCC). Elements of the LCC model were
made popular by Southwest Airlines in the US and then copied the world over.
A raft of lacks sprung up all over the globe. The disciplined airlines that were
devoted to the core principles of the LCC business model thrived. The salient
principles of the LCC model are a focus on short-haul sectors, no-frills, point-to-
point flights, and low fares delivered via a single fleet and engine type.
Genuine LCC airlines utilize their assets to the hilt, with fast turnarounds,
minimal ground times and stubborn about stifling costs. Rather than building a
network spread across several points, they focus on maximising frequencies,
allowing for amortization of fixed costs over a greater spread. They also
consistently offer low fares, which are a key determinant of demand, especially
in price-sensitive markets such as India.

Towards dominating more than just the Indian skies:

With these developments in place, indigo evolved from a pure LCC to a more
complex operation. Key metrics indicated that the airline was positioning for a
broader role.
Unprecedented expansion in the metro cities was evidence of this tactic. Indigo
grew to more than hundred flights a day from each metro.
It also signed a deal with Travelport to distribute inventory via what is
traditionally a high-cost channel. Fleet enhancements most notably the
conversion of A320 orders to A321s and a new order, which included the
a321xlrs, were also geared towards this broader mandate.
On the network front, indigo started to revisit its connecting traffic patterns with
more options being offered to passengers. New yield management systems were
implemented and data analytics enhanced. And the capacity spreads were
revisited.
Indigo spread its wings towards dominating more than just the Indian skies.

Porter’s five forces

 The five forces identified in Porter's model can affect The indigo Story On
Time Hassle Free ’s ability to serve its clients and make a profit.
 A change in any of the five forces may regularly require a business unit from
the indigo Story on Time Hassle Free to reassess the market place given the
general change in industry data and dynamics. The general industry appeal and
attractiveness.
 The indigo Story on Time Hassle Free should apply and centre their skills, plan
of action or business models to accomplish profits above the business average.
This may be done in multiple ways, each distinguished in their application to the
forces individually as is elaborated below:

THE THREAT OF NEW ENTRANTS

Market and industry share

 New entrants to an industry bring new potential and a choice to increase the
market share and overall share of the pie that puts pressure on price, costs, and the
investment price essential to compete.
 For The indigo Story On Time Hassle Free, particularly while new entrants are
diversifying from different markets into the chief industry, they will be able to
leverage existing talents and cash flows to shake up the opposition.

Limitation on earning expectation and capability of firms in an industry

 The threat of entry in the industry, consequently, puts a cap at the earning
capacity and profit capability for The indigo Story On Time Hassle Free.
 While the threat of new entreaty is high, The indigo Story On Time Hassle
Free should maintain their prices or increase funding and investment to discourage
new competition.
 The risk to new entrants because of high entry barriers

 The risk of entry in an industry depends upon on the peak of entry barriers and
limitations that are a blessing for players such as The indigo Story On Time Hassle
Free and on the response that new entrants can count on from existing players.
 If entry barriers are low and novices count on little retaliation from the
entrenched competition, the chance of entry is high, and profitability for The
indigo Story On Time Hassle Free will be moderated.
 It is the danger of entry, not whether the entry of new players takes place that
holds down profitability.

Some barriers to entry for new entrants in favour of the Indigo Story On Time
Hassle Free:

 Capital requirements: a strong barrier to entry as new entrants will require

strong financial and resource cushioning for operations to take off and be
sustained.
 Economies of scale: a strong barrier to entry as existing players in the industry
operate with high economies of scale, which new entrants will take time to
achieve.
 Product differentiation: the strong barrier of entry if products within the
industry have high levels of differentiation on which they operate and approach
customers.
 Access to distribution: a standard barrier to entry since new entrants will have
equal access to the retailers and distributing agents within the industry.
 Customer loyalty to established brands: a strong barrier to entry since customer
loyalties and perceptions are emotionally built and strongly enforced as long as the
brand continues to deliver on its core promise and quality.

What can The indigo Story On Time Hassle Free do to face this challenge?
 Build and invest in marketing to distinctly establish a point of differentiation in
customer perception as well as strengthen customer loyalty.
 Invest in research and development to make sure that it continues to have
competitive differentiation from other players at all times.
 Focus on building economies of scale in production and sales.

Placement of the business along the industry life cycle

Identifying where the indigo Story on Time Hassle Free is on the Industry Life Cycle
Curve

Identification of the place and placement on the industry lifecycle is important as it

will help the indigo Story on Time Hassle Free make important decisions and
strategies for the future.

Strategic decision making

 Expansionary plans and investment decisions.

 Decide on various marketing strategies and tactics for targeting different
consumer segments to establish and establish the product.
 Selection of new geographic regions for expansion and exploration of new
consumer bases.

Budget allocation

 Resources and alternative routes for future growth and establishment.

 Exploration of different diversification options.

Introductory stage
Firm strength

 The industry is in the infancy stage.

 Firms are generally small, entrepreneurial and compact during this stage.
 The indigo Story On Time Hassle Free will be focused on research and
development during this phase.

Financial Position

 Looking for investment and funds for growth.

Nature of product

 Products offered during this stage re doubtful as success and life of the product
is unproven and not known.
 The indigo Story On Time Hassle Free will use a focused strategy during this
phase to emphasise the uniqueness of the product.
 The product or the brand will have a small market of consumers – known
largely as early adopters
 Marketing strategies adopted by the company will focus on generating
awareness of the product and therefore, will largely use a functional appeal.

Growth stage

Financial position

 The indigo Story On Time Hassle Free will require high capital during this
stage.
 The indigo Story On Time Hassle Free will need investment and funds for
launching strategic marketing campaigns.
 Funds will also be required for fuelling physical growth of the company in the
form of investment in equipment and property to facilitate growth.
. Growth factors

 Companies may increasingly encourage economies of scale because of

standardisation experienced during this stage.
 Consumer feedback from the introductory phase will be incorporated, and
research and development will be conducted to make appropriate changes in the
product design and offering.
 Success in this stage for The indigo Story On Time Hassle Free will lead to
growing demand, which in turn will fuel sales demand.

Nature of Product

 Products in this stage have high growth and high market share.
 There is also increasing competition and rivalry in the market – new entrants
will enter and compete looking at the success of products during this stage.

Maturity stage

Sales and growth

 The indigo Story On Time Hassle Free will experience slowing growth during
this stage of the industry life cycle.
 Sales will be expanding, and earning will be growing – however, the rate will
be slower than the growth stage.
 Competition from late entrants will be present, and obvious during this stage –
who will all try to fight for The indigo Story On Time Hassle Free ’s share of the
market.

Strategic Marketing

 The marketing strategies must now focus on building loyalty.

 Marketing tactics must be strong and should focus on the uniqueness of the
product. Increasingly emotional appeals may be used.

Firm size

 Firm size is generally larger and is more dominant over players if successful-
compared to growth stage.
 Innovations continue but are stable and not radical.

Decline stage

Industry changes

 New technological changes and upgrades may make an industry obsolete.

 Players within an industry may also fall back and lose on market share if they
do not keep up with innovations, and investment in research and development.

Sales and Competition

 Sales during this phase are decreasing at a high rate.

 Competing players also exit the industry because of the changes and low
demand.

Surviving in the decline cycle

 The indigo Story On Time Hassle Free may also experience mergers and
acquisitions during this phase.
 Diversifications are also most common during this phase as a means of
survival.
The Indigo Story on Time Hassle Free and strategic group formation

 The strategic group analysis will look at an industry’s players' situations in

focused conditions and scenarios.
 It will assess different players competing with The indigo Story On Time
Hassle Free through the basic strategic factors that will decide an organization's
profitability, similar to how the profitability will also be impacted and influenced
by the competitive nature of the industry.
 The strategic group analysis will describe the procedures of every single
noteworthy competitor of The indigo Story On Time Hassle Free along different
strategic dimensions.
 These dimensions of comparison differentiate players into strategic groupings
and must be selected as the basis of comparison by taking into account industry
structure, productivity factors, and the venture issues being tended to.

Q.3. In your opinion has indigo integrated its marketing tool for
an efficient performance in the global market?

Yes, it has efficient performance in the global market with its integrated marketing
strategy. indigo has integrated all its marketing tools as across all its platforms it
spread one message of being a cool, youthful and contemporary brand. It also
stressed on Hassel free travelling and on-time performance message in all of its ad
campaign.
Indigo is the Number 1 brand in India in the airline industry. Since its inception
Indigo has been successful in creating a positive brand image, even in its
commercials it pitches itself as a low-cost carrier and “every time on time” arrival. It
has won several awards for being the low-cost carrier from the year 2007-2015
continuously.
Benefit segmentation strategy is used by Indigo Airlines to cater to the changing
needs of developed & developing nations. It mainly targets people by offering the
benefits of low pricing as Air travel is perceived as an expensive travelling option.
As far as brand image is concerned, it has positioned itself as a value-based carrier
providing a hassle-free experience of travelling.
Even though its TVC commercial it spread the message of Hassel free journey and
smooth operation.
It has also given customized and creative touches at various touchpoints from
baggage tags and inflight safety instruction cards to boarding ramps and website- to
strengthen its coolness factor
Tongue in cheek messages are also used in its unique packaging and funny messages
like ' Here comes the hot stepper' to spread the message of being a youthful brand.

Q.4. In your opinion has indigo integrated its marketing tool for
an efficient performance in the global market?

 Indigo airlines is a focused low cost carrier in the Indian domestic air transport

segment

 It’s tag line reads low fares on time and hassle free experience

 In the last few years indigo has demonstrated excellent dynamic strategic

capability

 It has focused on low cost operations as well as OTP(on time performance)

 The company has been right moves all along

  The product price promotion and distribution strategy do compliment its

positioning

 Price – in very competitive airline segment of India

 Price is what gives indigo an edge

 Indigo provides customers with low cost fares quality and on time services

 It gives discount to senior citizens and students

Indigo Airlines Marketing Mix & Strategy:

Indigo Airlines Product Strategy:

The product strategy and mix in Indigo Airlines marketing strategy can be explained
as follows:

Indigo Airlines is one of the leading airline players in India. Indigo Airlines provides
low cost air transportation service to the consumers. This is their core product in their
marketing mix. They also provide supplementary services like web check in, food on
board etc. They have a variety of meal options for their consumers. For consumer’s
convenience and comfort Indigo Airlines also provides online booking, mobile
ticketing and pick and drop services.

Indigo’s Cargo services named CarGO is also catching up very fast. They take very
good care of the shipments. They have special packaging for fragile packages which
come under 6E priority. They do not accept perishable shipments like seafood, dairy,
plants, meat. Indigo Airlines also carries postal mails like speed post, ordinary mail
and Army mail.
Product
As of 2020, there are several marketing strategies like product/service innovation,
marketing investment, customer experience etc. which have helped the brand grow.

Marketing strategy helps companies achieve business goals & objectives, and
marketing mix (4Ps) is the widely used framework to define the strategies. This
article elaborates the product, pricing, advertising & distribution strategies used by
Indigo Airlines.

People:
Indigo Airlines has different departments for people to work in. The engineering
department maintains and repairs each aircraft whenever needed. It is also
responsible for the entry, operation and return of the aircraft at the end of the lease. It
is also responsible for quality assurance and regulatory compliance.

Indigo Airlines is known for its professional cabin crew which gives wonderful
service experience and is responsible for high quality service. Their major
responsibility lies in the safety and security of the passengers. Hence they go through
rigorous training which lasts for three months. Flight operations department (pilots)
is responsible for safe and effective operation of the aircraft. Indigo Airlines makes
sure their flight deck crew meets all the regulatory and licensing requirements.
Airport operations and customer services(AOCS) department manages all the ground
operations. They ensure the smooth functioning of all the activities related to
passenger travel. They also maintain all the equipment and vehicles used for
servicing the aircraft and the passengers.

Process:
Tickets for Indigo airlines can be booked through different methods- online booking
through its website, Through the mobile app, on call to the Indigo call center and
through authorized travel agents. It has “hold and pay” facilities which allow their
customers to hold their bookings for a brief amount of time. Indigo has a highly
professional staff which makes sure that their processes are smooth and hassle free. It
provides special assistance to passenger with special needs, passengers with infants,
Minors, expectant mothers and medical passengers.

Indigo has a customer service where people can call in for their queries and
suggestions. If the flight is delayed and the customer has provided its mobile number,
they are informed in advance about it so that there is no inconvenience caused.
Hence, this concludes the Indigo marketing mix
Promotion
Indigo Airlines has come out with a few television Commercials and online
advertisements to promote itself. Indigo Airlines does a lot of promotions through
billboards/hoardings. The aim of the promotions is to increase the user base and also
rope in new customers.

Its Broadway campaign which announced Indigo Airlines going international was
done by Wieden+Kennedy creative agency. It communicated its key offering of
reaching everywhere on time and also announced its international operations. Indigo
Airlines collaborates with bank for its promotions, for example the Indigo-ICICI
bank promotion where one would get a cashback if one books the tickets using a
ICICI debit or credit card. This gives an insight in the promotion and marketing
strategy of the airline’s marketing mix.

Distribution
Indigo Airlines currently operates in 40+ destinations and the expansion is ongoing.
Indigo Airlines covers the length and breadth of India. It also covers 6 international
destinations which includes Dubai, Singapore, Muscat, Kathmandu, Bangkok. Indigo
Airlines operates a fleet of 126 Airbus320 aircraft and since March 2016 it is adding
one Airbus320NEO every month. Currently it has 15 Airbus320 NEOs. Airbus 320
NEO promises to burn lesser fuel which will reduce Indigo’s operating cost. Indigo
Airlines is trying to expand its overseas network with more flights to Middle east and
Southeast Asia.