Published by MBA Skool Team, Last Updated: March 20, 2017
Marketing Strategy of Indigo Airlines 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 Indigo Airlines marketing mix, help the brand succeed.
Indigo Airlines marketing strategy helps the brand/company to position itself competitively in the market and achieve its business goals & objectives.
Let us start the Indigo Airlines Marketing Strategy & Mix to understand its product, pricing, advertising & distribution strategies:
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.
Indigo Airlines Price/Pricing Strategy:
Below is the pricing strategy in Indigo Airlines marketing strategy:
Indigo Airlines is present in a very competitive airlines segment in India.
Price is what gives Indigo its edge over other competitors, therefore it is an important component of it marketing mix. When consumers compare prices they find that Indigo Airlines provides them with low fares and quality, on time services. Indigo’s cost control department has a huge role to play in this. It makes optimal use of technology to determine the petrol needed to travel from one place to another. Aviation turbine fuel prices constitutes about 40% of the operating cost of an airline. Indigo Airlines saves huge cost on this very expensive resource. It provides optional services of meals which are prepaid. The consumers have to buy their meals in case they want to have anything on board. With these little knacks it controls its cost.
Indigo Airlines gives discount to senior citizens and students. It gives seasonal and time to time discounts on its mobile app and website. There is a fee charged on flight cancellations and rescheduling.
Following is the distribution strategy in the Indigo Airlines marketing mix:
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.
Indigo Airlines seeks to add Doha and Sharjah via different routes to its destinations.
Indigo Airlines Promotion & Advertising Strategy:
The promotional and advertising strategy in the Indigo Airlines marketing strategy is as follows:
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.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing mix of Indigo Airlines.
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.
Indigo’s corporate office is situated n Gurgaon. Indigo Airlines has fulfillment centers where customers can book and pay for their tickets. Indigo also has physical presence through their airport counters where people can book their tickets and enquire about their travelling details. Indigo has international reservations offices in Singapore, UAE, New York, Los Angeles, Chicago, Nepal, Toronto, Kuwait, Oman etc. The aircrafts are well maintained and provides comfortable journey to the passengers.
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.
About Indigo Airlines:
Indigo Airlines is India’s most efficient low cost carrier operating flights to 43 destinations which includes 6 international destinations. Indigo Airlines is one of the business venture of InterGlobe Enterprises. It was started in August 2006 and in a decade it has grown to have a market share of 40.3% (as of December 2016). Indigo Airlines is India’s biggest commercial airlines (by market share). Indian aviation industry is very competitive and is struggling with competition from other modes of transport as well. Yet Indigo Airlines is known for its low cost fares, punctuality and hassle free experience. Over the years it has become India’s most preferred airline due to its low cost fares and high quality. Indigo Airlines has 14 new generation A320neos which forms a part of their 126 fleet. It carries around 4,035,677 passengers in a month.
The operations and management of Indigo Airlines is headed by Mr. Aditya Ghosh who is the president and whole time director of the company.
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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