Published by MBA Skool Team, Last Updated: February 20, 2017
Marketing Strategy of Vistara analyses the brand with the marketing mix framework which covers the 4Ps (Product, Price, Place, Promotion). There are several marketing strategies like product innovation, pricing approach, promotion planning etc. These business strategies, based on Vistara marketing mix, help the brand succeed.
Vistara marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Vistara Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Vistara Product Strategy:
The product strategy and mix in Vistara marketing strategy can be explained as follows:
The core service offered by Vistara is flight. Vistara offers its customers to choose among 3 class of flight seat bookings, which can be covered in the products of the marketing mix:
a. Business Class: For its 148 seater Airbus A320, Vistara offers three separate cabins with 16 seats reserved as business class seats. Moreover the size of seats and the leg space provided is more than that offered by its competitors thus providing more comfort to travellers. This class offers premium service and has highest fare rate.
b. Premium Economy Class: This is a new class service introduced by Vistara. This class targets travellers generally from corporate world who wants to get premium service but cannot afford business class neither they want to travel under economy class. For its 148 seater Airbus A320, Vistara offers 36 seats in premium economy class.
c. Economy class: For its 148 seater Airbus A320, Vistara offers 96 seats under economy class. This class targets travellers who cannot afford more price and require standard service.
Also the travellers are provided with quality veg-non veg meal . Vistara is known for updating its menu to satisfy its customers. Vistara also provides free wifi connection to all its travellers.
Vistara Price/Pricing Strategy:
Below is the pricing strategy in Vistara marketing strategy:
Vistara operates on premium market segment in airline industry which is majorly dominated by low cost operating carriers.
Vistara charges premium prices for its services both on-board and on-ground. The company believes in providing good and memorable flying experience to its travellers at a reasonably premium price. The company also follows a dynamic pricing model based on the date of booking ticket and provides multiple fare rate based on the class of travel chosen by customer. Instead of providing steep discount, Vistara has its own club of loyal customers ‘Club Vistara’,which is a frequent flyer program, which helps travellers to get reward points on the basis of expenditure done by him/her for ticket booking. This reward point act as a discount for its loyal travellers. Vistara follows a policy of no hidden restriction and follows uniform pricing rules. Thus, the pricing strategy in the marketing mix of Vistara is not solely dependent on competitors and regulation authorities, but also covers the market dynamics.
Vistara Marketing Strategy comprises of not only its Marketing Mix, but also segmentation, targeting, positoning, competition and analysis like SWOT. Also read Vistara SWOT Analysis, STP & Competitors
Vistara Place & Distribution Strategy:
Following is the distribution strategy in the Vistara marketing mix:
Vistara has its hub at Delhi Indira Gandhi International Airport. Vistara began its first operation between Delhi and Mumbai. Within 20 months of commencement of its operations Vistara served nearly 2.5 million customers. Vistara has a fleet of Airbus320-200 aircraft. The size of this fleet is 13. Vistara is also planning to introduce 7 new Airbus A320neo by year 2017-18. The airline operates in 18 destinations in India. Any traveller can book a ticket online from Vistara’s website or any ticket booking website like goibibo, paytm etc or offline from tour operators, airport etc. A traveller can ask for special assistance from customer care service. Vistara also actively participates on social media like Twitter, Facebook etc to interact with potential travellers.
The company is yet to launch flights for international operation.
Vistara Promotion & Advertising Strategy:
The promotional and advertising strategy in the Vistara marketing strategy is as follows:
Vistara is a late entrant in domestic airline industry in India but has been able to create a niche for itself in market. Vistara has an integrated marketing campaign focusing on TV, Digital, Print, Outdoor, Cinema and Airports for its promotion. The company has chosen Deepika Padukone as its brand ambassador. Vistara has done many ads campaigns to promote its brand campaign ‘Fly the new feeling’ by trying to connect with the viewers emotionally and showing feeling of joy in their ads. A 360 branding approach in the promotional strategy in the marketing mix of Vistara. Vistara also used a tag line ‘High standards, economically in print ads to target people who want to feel unique experience at value for money. Vistara has targeted both entertainment channels like Colours, Sony and news channels like NDTV etc for promotional ads. Vistara also uses outdoor channels like banners at airport or any prime location. Vistara also addresses issues and engages with customers on social media like Facebook, Twitter.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Vistara.
Vistara is known for delivering highest standards of excellent service to its travellers. The complete crew of Vistara is fully dedicated towards customer centricity. Vistara has always encouraged its employees to foster ownership, leadership, seeking growth opportunities and service oriented, which is the main people strategy in their marketing mix. Vistara has got the least attrition rate in aviation sector due to its ability to deliver employee’s satisfaction. Vistara has a unique appraisal system for their employee which is more than just improvement and more about increasing individual strength. The entire front end crew within Vistara plane is highly skilled and professional to deliver services to travellers as promised. From air hostesses to pilot, flight attendant to freight movers , all are contributing to create a warm ambience for its travellers.
Vistara has got its own website ‘www.airvistara.com’. A customer a go to the website to book a ticket. The traveller needs to enter source and destination, date of travel, number of passengers and then choose among the available flights. The customer then needs to agree to terms and conditions and make payment to confirm booking. The ticket containing flight details will be mailed to customer’s email id and mobile number. The customer can also follow this booking procedure from any other website. At the day of check in at Vistara counter at airport the traveller need to deposit their baggage and enjoy the journey. All the process handling will be performed from Vistara’s side. Vistara provides travellers booking ticket under premium economy category to get some privilege like business class traveller. A customer can do advance check in and use mobile ticket.
Vistara is known for providing joyful flying experience to its travellers. The seats of its airplanes are more comfortable than any of its competitors in domestic airlines in India. The seats have got more leg spacing. The onboard experience provided by Vistara is seamless. There are 3 cabins to provide personalised service with enjoyable experience for all kinds of travellers. Vistara also offers nflight dinning which offers wide range of cusines to travellers. The food offered regularly updated and traveller can either enjoy veg or non veg meal. The flight also has free wifi service being given to travellers and unlimited entertainment facilities. Vistara also has its own mobile app from which traveller can check in, choose seat and meal preference , order boarding pass. Travellers can also take assistance from vistara kiosk at airports. All these cover the marketing mix of Vistara airlines.
Vistara is the Indian domestic airline formed by the joint venture between Tata Sons Ltd. and Singapore Airlines with majority stakeholder as Tata Sons of 51% and remaining 49% of Singapore Airlines (SIA). Vistara is based in Delhi Indira Gandhi International Airport and it started its operation in the year 2015. The word ‘Vistara’ has Sanskrit root ‘Vistaar’ meaning limitless expansion which resonates in company’s ambition of providing great experience to its customer.
Vistara is the first full service carrier in airline industry to introduce premium economy seats in domestic market in India. Vistara targets premium market of business class and leisure travellers who wants quality service and experience worth their expenditure.
The tagline of Vistara is ‘Fly the new feeling’ . Vistara has got the highest on-time performance records when compared to other domestic carriers and focuses on exceeding customer’s expectation everytime.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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