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    Hul Lime

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    Jasmine Sahoo
    The document discusses IndiGo's strategy to expand its international operations by focusing on specific high-traffic countries and markets. It analyzes metrics like total travel time and growth in passenger traffic to identify target countries including Saudi Arabia, Qatar, Sri Lanka, and others that make up 29% of international traffic from India. The document recommends an aggressive expansion strategy in Southeast Asia and Gulf countries, targeting 30% market share. It also discusses evaluating consumer perception of IndiGo and maintaining its value propositions of being on time and reliable through advertising campaigns. Various strategic opportunities like automated luggage check-in and packaged travel offerings are analyzed for their potential to enhance IndiGo's brand and competitiveness.

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    © All Rights Reserved
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    Hul Lime

    Uploaded by

    Jasmine Sahoo
    231 views9 pages
    The document discusses IndiGo's strategy to expand its international operations by focusing on specific high-traffic countries and markets. It analyzes metrics like total travel time and growth in passenger traffic to identify target countries including Saudi Arabia, Qatar, Sri Lanka, and others that make up 29% of international traffic from India. The document recommends an aggressive expansion strategy in Southeast Asia and Gulf countries, targeting 30% market share. It also discusses evaluating consumer perception of IndiGo and maintaining its value propositions of being on time and reliable through advertising campaigns. Various strategic opportunities like automated luggage check-in and packaged travel offerings are analyzed for their potential to enhance IndiGo's brand and competitiveness.

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    The document discusses IndiGo's strategy to expand its international operations by focusing on specific high-traffic countries and markets. It analyzes metrics like total travel time and growth in passenger traffic to identify target countries including Saudi Arabia, Qatar, Sri Lanka, and others that make up 29% of international traffic from India. The document recommends an aggressive expansion strategy in Southeast Asia and Gulf countries, targeting 30% market share. It also discusses evaluating consumer perception of IndiGo and maintaining its value propositions of being on time and reliable through advertising campaigns. Various strategic opportunities like automated luggage check-in and packaged travel offerings are analyzed for their potential to enhance IndiGo's brand and competitiveness.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    231 views9 pages

    Hul Lime

    Uploaded by

    Jasmine Sahoo
    The document discusses IndiGo's strategy to expand its international operations by focusing on specific high-traffic countries and markets. It analyzes metrics like total travel time and growth in passenger traffic to identify target countries including Saudi Arabia, Qatar, Sri Lanka, and others that make up 29% of international traffic from India. The document recommends an aggressive expansion strategy in Southeast Asia and Gulf countries, targeting 30% market share. It also discusses evaluating consumer perception of IndiGo and maintaining its value propositions of being on time and reliable through advertising campaigns. Various strategic opportunities like automated luggage check-in and packaged travel offerings are analyzed for their potential to enhance IndiGo's brand and competitiveness.

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    © All Rights Reserved
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    of 9

    IndiGo

    HUL LIME 2013


    Team Sentinel
    Mandar Korlahalli Akriti Swaroop Kshitij Khurana

    Expansion Focus based on Traffic Metrics


    Objective: Expand international operations & attain leadership position in chosen
    markets
    Metrics Used: Total travel time, % of given destination to all international traffic in India,
    Growth of traffic
    Target countries
    Country
    Saudi Arabia
    Qatar
    Sri Lanka
    Hong Kong
    Malaysia
    Bahrain
    Kuwait
    China
    Bangladesh
    Rest of Subcontinent

    % of
    traffic
    6.44%
    4.91%
    4.21%
    2.97%
    2.91%
    2.20%
    1.65%
    1.37%
    1.09%

    Target Total
    Market size

    29%
    Of all
    internation
    al traffic in
    India

    Airline
    Air India
    Air India
    Express
    IndiGo
    Jet Airways
    Jet Lite
    Kingfisher
    SpiceJet

    Intl'
    Traffic
    12.05%

    Indian
    Carriers
    Market
    share

    5.65%
    1.07%
    13.24%
    0.28%
    2.90%
    0.77%

    36%
    Of
    international
    traffic in
    India

    0.97% Last 3 year average


    Country
    growth %
    Bahrain
    150.82
    Absolute growth in
    Maldives
    133.35
    passengers
    China
    50.85
    Saudi Arabia
    24.00
    Qatar
    20.10
    Sri Lanka
    19.70
    Bangladesh
    19.40
    Mauritius
    17.85
    Recommendation:
    Pursue
    aggressive
    expansion
    in specific
    South East Asian and Gulf
    Malaysia
    0.85
    To chosen locations

    212550
    3

    countries
    Target 30% of Market share for chosen Countries
    Caveat: Training staff in handling multi lingual and multi cultural customers may prove
    expensive
    2

    Consumer Perception: Punctual, Helpful


    Consumer Compliments
    200
    150

    2007
    2008

    100

    Core value proposition


    delivered: reinforced brand
    position

    2009
    2010

    50

    2011
    2012

    2013

    8.00%
    6.00%
    4.00%
    2.00%
    0.00%

    SipceJ
    et
    GoAir
    Indigo

    Infight
    experience

    16.00%
    14.00%
    12.00%
    10.00%

    Emotional connect
    established: Moved emotions
    to top of attitude factor
    hierarchy

    GoAir

    SpiceJet IndiGo

    Smooth Travel

    Observation: Direct correlation between promotion message and brand attribute recall.
    Recommendation: Maintain current value proposition, On Time, in advertisements
    3

    Consumer Perception: Missing Reliability


    Cancellation rate (%)

    Reasons for Cancellation

    IndiGo
    Go Air
    JetLite

    Operational
    Weather

    Commercial

    Jet Airways
    Air India

    Misc

    Technical

    SpiceJet
    0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90

    Observation: IndiGo has the lowest rate of


    cancelled fights

    Observation: Technical reasons form most


    significant reason for cancellation followed by
    weather
    Fact: IndiGos Technical Dispatch Reliability is
    highest at 99.91%
    Inference: Most of IndiGos cancellations may
    be due to factors beyond company control

    Observation: IndiGo ranks highest in reliability. Yet, association of attribute with brand is
    very low.
    Recommendation: Ad campaigns need to introduce another key word Reliable
    4

    Target:
    Non-execs, SMEs, Budget Tourists, VFR
    Segments not

    targeted
    low/moderate fit:
    Corporate Clients
    IndiGo: Core Value Propositions
    Corporates: Non-executive N1
    Corporate
    Executives
    On Time
    Reliability
    Decision maker:
    Mid-end tourists
    Self
    self organizers

    Concern:
    Luxury Class
    Shortest Travel
    tourists
    time
    Students data
    driven analysis
    Low Fare
    Hassle Free
    required

    Visiting Friends and Relatives

    Corporates: Nonexecutive N2
    Decision maker:
    Firm
    Concern: Low cost
    to company +
    Timeliness of
    SMEs
    employees
    Decision maker:
    Owner
    Concern: Low
    cost +
    Timeliness of
    employees

    Decision maker:
    Host/Self
    Concern: Hasslefree experience
    (specially elderly travelers)
    Leisure: Mid-end
    Tourists
    Decision maker: Travel
    Company
    Concern: Margin +
    Smooth Consumer
    Travel

    sification of segments by primary concerns

    Leisure: Budget Tourists


    Decision maker: Self
    Concern: Overall cost of
    travel + 0 hassles +
    Reliable, timely services
    to ensure smooth trip
    5

    Shift specific targets to emotion based attitude

    SMEs

    Budget Tourists

    Trip advisory

    N1

    HI

    HI

    Budget Tourists
    Trip advisor

    N1

    SMEs
    VFR

    VFR
    N2

    LI

    LI

    N2

    Thinking

    Target
    Segment

    Feeling

    Marketing Plan

    Thinking

    Feeling

    Performance

    Corporate Nonexecs: Firm books


    (N1)

    Customized seat quotas/reservations per


    month

    Deliver on core value proposition

    Corporate Nonexecs: Self book


    (N2)

    Frequent fier miles for web check in + hot


    meals

    Reduce on-ground travel time, Qbusters

    SMEs

    Product: Frequent fier programs


    Promotion: Unannounced surprise gifts

    Deliver on core value proposition


    Reduce on-ground travel time

    Trip Advisors

    Seat quotas for seasons, pre-determined


    rates

    Deliver on core value proposition

    Budget Tourists

    Product: Provide low cost trip advisory


    Promotion: Targeted ads using social
    media/searches

    Focus on hassle-free experience


    Sensitivity & responsiveness to
    guests needs

    Brand Building, Expansion Opportunities


    Automated Luggage Check-In
    Consumers check-in
    luggage at automated
    counters that weigh
    luggage and accept
    payment for overloads

    Effect
    Reduces total travel time
    Gives feeling of control to
    passengers

    Analysis to be done
    Cost benefit analysis
    Time savings analysis
    Studying existing installations

    Value proposition
    Reinforces On Time positioning
    Adds new value Hi-Tech

    Marketing Plan
    Introduce pilot in airport that
    has most tech savvy travelers
    Demographics -> Job
    nature
    Most Web check-ins at
    airport
    Help/train customers for some
    time to ensure the usage
    sticks

    Impact
    Reduced costs
    Enhanced Brand Attributes

    Packaged travels
    Consumers can book
    fight tickets, hotels, cars
    based on their
    preferences all in one go

    Caveats
    Cost-benefit analysis may be
    unfavorable
    Adoption launching tech before its
    time
    Effect
    Pull generated for budget tourists
    Value proposition
    Reduce overall costs of tours
    Creates seamless travelling
    experience
    Impact
    Adds new revenue/profit stream
    Attract non-Indian traffic
    Caveats
    Collaborators (fight aggregators)
    turn competitors

    Analysis to be done
    Market sizing for offerings at
    current price point
    Setup time for establishing
    credible travel partners
    Marketing Plan
    Launch ad campaigns across
    multiple locations and
    channels
    Social networks -> Target
    frequent travelers
    Airport stalls, TV ads
    Seamless marketing
    7
    keyword

    Strategy Sustainability Evaluation


    IndiGos Core Competencies & Operational Impact
    Cost efficiency
    Detailed planning
    Consistent execution

    Fit with corecompetency

    Automate
    d Luggage
    Check-In

    Packaged
    travels

    Strong fit with


    cost efficiency

    Strong fit with


    detailed planning
    and consistent
    execution

    Maintain profitability
    Fast turnaround time

    New
    competencies
    Stickiness of
    association of
    new brand
    attribute hi-tech
    will depend on
    technology
    adoption or
    innovation rate of
    IndiGo

    Two new
    competencies to
    be developed:
    Collaboration
    with parties
    outside
    organization
    Sound audit
    skills

    Imitability
    If successful can
    be imitated by
    any player with
    sufficient capital
    Benefit of training
    consumers will
    evaporate since
    adoption barrier
    would have
    broken
    Once established
    will be an
    extremely
    formidable
    competitive
    advantage
    coupled with
    IndiGos low cost
    proposition

    Moderate term
    competitive
    advantage

    Long term
    competitive
    advantage

    Thank You

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