Air India Marketing Strategy & Marketing Mix (4Ps)
Published by MBA Skool Team, Last Updated: February 20, 2017
Marketing Strategy of Air India 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 Air India marketing mix, help the brand succeed.
Air India marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Air India Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
Air India Product Strategy:
The product strategy and mix in Air India marketing strategy can be explained as follows:
Air India is one of the leading airlines in India providing international and domestic travel. Air India provides only passenger transport services; thus, it is committed to provide the best possible services to its customers. A look at the marketing mix product strategy is by understanding its services to customers. Air India passenger fleet primarily consists of aeroplanes from Boeing and Airbus. It also leases a few of its fleet so as to reduce cost and maintain quality service level. It has a vast network of routes across the world connecting India. This vast network enables Air India to cater services across the most important cities and business centres worldwide. It provides high level of safety for its passengers and maintains quality safety standards so as to ensure repeat service purchase for its passengers. Providing premium club memberships to its passengers and fly returns programme for frequent passengers enables Air India to have a high brand recall among other competitors in the airline industry.
Air India Price/Pricing Strategy:
Below is the pricing strategy in Air India marketing strategy:
Air India is a leading airline player in India with a pricing strategy based on competition and sectors it covers.
Keeping in mind of being a highly-coveted airline in India, Air India prices airline tickets such that it is easily accessible to middle class families. Air India uses two-part pricing technique so that they are able to gain profits by tapping the buying capabilities of different segments of people with different earning levels. Quality of service is something that they do not compromise with, so the basic technique adapted while setting the price is depended on the length of the journey and the amount of time the travel will take. Premium pricing is primarily done to target Business class passengers as they have a high tendency to pay and avail premium services. This gives an overview on the marketing mix pricing strategy of Air India.
Following is the distribution strategy in the Air India marketing mix:
Air India has its presence in all cities in India. Being the primary choice of airline travel, Air India service base has been increasing year on year. Air India has flights connecting India with major cities and business headquarters across the world. Tickets for Air India can be availed from their websites and other ticket booking agencies.
They have also tied up with various agencies to sell their tickets, thus increasing their service base and capabilities.
Air India Promotion & Advertising Strategy:
The promotional and advertising strategy in the Air India marketing strategy is as follows:
By promoting their tagline “Air India…. Truly Indian”, Air India has leveraged huge gains by being able to promote their brand. By being integrated with Government of India, it sets up a standard as being a fully government controlled transport system. Air India has tied up with various travel agencies like yatra.com, goibibo.com, etc. This has helped them to be easily presentable to their customers, and in such ways the customers are easily able to avail tickets. Its promotion activities continue in the Indian Railways website, wherein customers are easily able to avail Air India tickets via the IRCTC portal, thus it makes easy for the customers to plan journey accordingly and easily. Joint promotion with Amadeus, is a short term promotional strategy which Air India implements.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Air India.
Service quality being the primary concern for Air India has helped them maintain good relations with their customers. And this has been possible because of having highly skilled professionals working for Air India. From pilots to cabin crew and catering to supply chain activities, Air India’s skilled work base has helped them to achieve top position in airline industry.
Air India has its physical evidence through its aeroplanes, airport kiosks, website etc. It also has premium lounges in airports across major cities in India like Mumbai, Kolkata, Delhi and Hyderabad. With a fleet of quality airlines and providing high level of amenities, Air India provides its customers the best of travel experience. Thus, customers are able to make multiple purchases.
Air India has several processes in place for ease of business. From purchase of tickets to delivery of luggage Air India has integrated all the step by step processes so that customers can have a smooth transition in every step. Premium lounges at major airports makes waiting for aircraft easy for passengers. Online portals of booking tickets make these processes easy for both passengers and Air India. In case of any unfortunate incident such as flight reschedule or cancellation, Air India makes sure that the passengers don’t face inconvenience; and have a easy alternative to it. Hence, this summarizes the Air India marketing mix.
About Air India
Air India is a passenger airlines service provider in India. It is owned by the Government of India. It is a member of Star Alliance, which is one of the largest airlines alliances in the world. Founded in the year 1932, originally owned by TATA sons, it became a public limited company from the year 1946 post-independence. Air India since then has strived to be the best in the airline industry in India. With “The Maharaja” as mascot and a slogan of “Air India….
Truly Indian”, it essentially positions itself to be a class apart and provide its customers a feeling of being in India by its services. Headed by Ashwani Lohani, with a revenue of ₹190900 Million, Air India is the third largest airline services in India having a market share of 16% approximately.
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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