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Spicejet

SpiceJet is an Indian low-cost airline based in New Delhi that began operations in 2005. It operates domestic flights within India and focuses on providing affordable air travel to middle and lower-middle class passengers. SpiceJet aims to make flying accessible to all income levels. Customer satisfaction surveys show high ratings for the airline's reliability, assurance, tangibility, empathy, and responsiveness. However, the airline faces challenges from competitors and could improve by expanding its international routes and adding a business class section.

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vishnumenon27890
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2K views

Spicejet

SpiceJet is an Indian low-cost airline based in New Delhi that began operations in 2005. It operates domestic flights within India and focuses on providing affordable air travel to middle and lower-middle class passengers. SpiceJet aims to make flying accessible to all income levels. Customer satisfaction surveys show high ratings for the airline's reliability, assurance, tangibility, empathy, and responsiveness. However, the airline faces challenges from competitors and could improve by expanding its international routes and adding a business class section.

Uploaded by

vishnumenon27890
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Presented by Vishnu Menon

INTRODUCTION
An airline is a company that provides air transport services for traveling passengers and freight. Airlines lease or own their aircraft with which to supply these services and may form partnerships or alliances with other airlines for mutual benefit. Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body. Airline services can be categorized as being intercontinental, intracontinental, domestic, regional, or international, and may be operated as scheduled services or charters.

COMPANY PROFILE
Spice jet is a low-cost airline based in New Delhi. It began service in 23 May 2005.

Spice Jet was earlier known as Royal Airway

Indian low cost airline owned by Kalanithi Maran.


This airline has more than 2500 employees working with them currently. SpiceJet names all its aircraft after various spices and herbs like Cinnamon, Thyme, Oregano.

Spice Jet started off its services with a revolutionary pricing of Rs. 99 for the first 99 days. This was followed by air tickets priced at Rs.

500 and Rs. 999 . As a result, the airline's prices compete with firstclass Indian railway fares

ACHIEVEMENTS
SpiceJet was voted as the best low-cost airline in South Asia and Central Asia region. By 2008, it was India's second-largest low-cost airline in terms of market share. Voted Indias favorite domestic airline (4 times) at the outlook traveller awards.

MISSION AND VISION


MISSION :
To become Indias preferred low-cost airline, delivering the lowest air fares with the highest consumer value, to price sensitive consumers.

VISION :
To ensure that flying is no longer only for CEOs and business travellers, but for everyone

SERVICE MARKETING MIX


PEOPLE
The airhostesses at spice jet come in contact with the customers in the process of providing the service, while the cock-pit crew are employees who contribute to the service product.

At spice jet the front line staff play a critical role in ensuring that the
service is delivered to the customers as promised.

PHYSICAL EVIDENCE
At spice jet, the aircraft by itself would make up the physical evidence in this service. Spice Jet's aircraft are configured in a single economy class having

189 seats, which is among the highest in the industry.


In-flight entertainment such as spice route magazine is provided

Booking offices and ticket counters at spice jet Airlines are extremely spacious and well designed with good looks. The aircrafts are given excellent exteriors and are maintained well

PROCESS
Ticket booking check in -luggage screening- boarding pass issue- physical checking- boarding- instructions and safety measures.

GAP model
Provider gap1 (knowledge gap):Nil Provider gap 2(service design and standard gap):Nil Provider gap 3 (service performance gap) :failure to meet demand during peak times. Provider gap 4 (communication gap) :Nil

STP & DIFFERENTIATION


Segmentation Cost conscious passengers Targeting Frequent travellers, lower middle class and middle class. Positioning Low cost airline. Differentiation : SpiceJet provides attractive offers to customers when compared with other airlines.

SERVICE QUALITY MODEL


96% of the consumers mentioned that the service is RELIABLE

88% of the customers ASSURED about the service


80% TANGIBILITY attribute.

94% of customers talks about EMPATHY.


91% of people gave positive feedback about RESPONSIVENESS attribute.

SERVQUAL
SI No Qns Q1 customer1 customer2 customer3 customer4 customer5 customer6 customer7 customer8 customer9 customer10 customer11 customer12 customer13 customer14 customer15 customer16 customer17 customer18 customer19 customer20 customer21 customer22 customer23 customer24 customer25 customer26 customer27 customer28 customer29 customer30 points max point percentage Reliability Q2 Q3 3 5 5 4 5 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 5 5 4 5 5 5 5 5 5 5 4 5 5 5 4 5 4 5 5 5 5 5 5 4 4 4 5 5 4 4 5 5 5 5 4 5 5 5 4 432 450 96 Q1 5 5 5 4 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 5 5 5 5 5 5 5 5 5 5 5 Assurance Q2 Q3 5 4 4 4 5 4 4 4 4 5 5 4 4 4 4 4 4 5 5 4 5 5 3 4 4 4 5 5 4 5 4 5 4 4 4 4 4 4 4 4 4 5 4 5 4 4 4 5 4 5 4 5 5 5 4 5 5 4 5 4 397 450 88.22222222 Q1 5 4 5 5 4 5 5 4 5 4 5 4 4 5 4 5 4 5 4 5 4 5 5 5 4 4 5 4 5 4 Tangibility Q2 Q3 4 5 5 5 5 3 5 3 5 3 5 3 5 3 5 3 4 4 4 3 4 5 3 3 3 5 4 3 4 3 5 4 4 5 4 3 4 5 4 5 4 4 3 5 3 5 3 4 5 3 3 3 3 3 4 5 5 3 4 5 360 450 80 Q1 3 3 5 5 5 5 5 3 5 5 5 5 5 3 3 4 3 5 5 3 3 5 3 4 3 3 4 4 3 4 5 5 5 5 5 5 5 5 5 5 4 4 5 5 5 5 5 5 3 4 5 4 4 5 4 4 5 4 4 4 424 450 94.22222222 Empathy Q2 5 5 5 5 5 5 5 4 5 5 5 4 5 5 4 5 5 3 5 5 5 5 5 5 5 5 5 5 5 5 Q3 5 5 4 5 4 5 5 5 4 5 5 3 5 4 4 5 4 5 5 4 5 5 5 5 5 5 5 5 5 5 Q1 Responsiveness Q2 Q3 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 5 4 5 4 5 5 5 5 5 4 5 4 3 4 5 4 5 5 5 4 5 4 5 4 5 4 5 5 5 4 5 5 5 4 4 5 4 4 4 5 411 450 91.33333333 5 4 5 4 4 5 5 4 4 5 5 3 5 5 4 4 3 4 5 4 5 3 4 4 4 4 4 5 5 5

CUSTOMER SATISFACTION SURVEY NPS


Sample size : 30

Promoters : 24
Neutral : 5 Detractors: 1 NPS = Number of Promoters Number of detractors Total = 24-1/30 x 100 = 76.67 %

GROWTH PLAN AND CHALLENGES


Growth Plan: expansion of international flights. Challenges: FDI in aviation sector poses a main challenge to SpiceJet Etihad has plans of a tie up with jetkonnect.

SpiceJet lacks business class segment when compared with its


competitors. Has an image of being a low cost airline which may backfire in the long run.

Findings
High concentration on domestic flights

low cost airline


Provides value for money services

Provides On time services


No differentiation or separation in social class

suggestions
SpiceJet should think about providing complimentary services to

its customers who travel long distances.


Should introduce business class section in flights. Should introduce more flights catering to the needs of high class passengers.

CONCLUSION
SpiceJet is a low cost airline concentrating heavily on the

domestic flights and providing value for money services to its


middle and lower middle level customers. It has been successful in delivering on time services and affordable offers to the lower middle class and middle class passengers, thus making sure that they do justice to their company slogan flying for everyone.

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