Indigo Airlines Marketing Management

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The facts and figures of Indigo Airlines are listed below(Indigo Airlines n.d.):-

- Profitable operations for 8 consecutive years.

- Capturing Indian domestic aviation market with 42.1% share as of November 2016.

- Since inception, Over 150 million passengers have flown with Indigo Airlines.

- Fleet size of 125 aircrafts including the brand new generation A320neos.

- Organization consisting of more than 13,000 employees, out of which 42% are women.

- Awarded “Great Place to Work in India” for 8 years running.

SITUATIONAL ANALYSIS

To enter a new market is always an expensive proposition for any airline as the established airlines have already invested to gain a considerable market share and continue to operate smoothly (Shaw 2016 7th Edn: 175). So Indigo Airlines need to invest a large amount of money in order to enter the Malaysian aviation market in order to compete with Malaysia Airlines Berhad , AirAsia, etc. The SWOT Analysis for Indigo Airlines for entering Malaysia is described by the following table:-

Strengths

- One of the largest low-cost carriers in India.

- Possess the largest market share in Indian aviation market.

- Increased brand value due to commencement of international operations

- Known for good advertising and marketing skills.

- Strong backing from promoters.

- Good On-Time performance

Weaknesses

- Limited international routes.

- Not having much international exposure as compared to competitors.

- Stiff completion from competitors.

- Offers pay-per-meal services.

Opportunities

- Malaysia is a one of the top tourist destinations for Indians.

- Abundant population of Indian expatriates in Malaysia.

- Malaysia is transit hub between Oceania & Asia along with Singapore.

- Malaysia is one the fastest growing aviation sectors in the world.

- Malaysia is the fastest growing economy in South-East Asia region.

Threats

- Intense competition from Malaysia Airlines Berhad and AirAsia who are already operating on India-Malaysia sector.

- Fluctuating air turbine fuel prices.

- High operational costs.

- Regulatory conditions are different in Malaysia as compared to India.

- Fluctuating local currency.

- Taxation in Malaysia.

Table 1-SWOT Analysis of Indigo Airlines

PESTEL ANALYSIS OF MALAYSIA

- Political

The Government of Malaysia is in full support of liberalization of of the aviation industry in compliance with the Open Skies agreement of ASEAN countries. In the objective to liberalize the air transport, the government has started to lessen the restrictions it had earlier imposed. With restrictions eased, it gives an opportunity for airlines to see Malaysia as an investment hub. Malaysia is a federal country with its King as head of state and the Prime Minister as the head of the central federal government comprising of 13 state governments (Emerging Markets Direct 2012).

- Economic

With the increase in regional urbanization, there is expected to see development of new urban centers, thereby developing creating new areas for regional travel (Yashoda 2012). Malaysia is known for tourist places such as Langkawi, Kuala Lumpur, Genting, etc. which contribute greatlt to Malaysia’s economic growth and rise in GDP. With the rising tourism industry, it is also beneficial for Malaysia’s aviation industry as due to this it would see a huge influx of domestic and international passengers.

- Social

Malaysia is a multicultural country comprising of ethnic groups such as Chinese, Indians, Malays, etc. With Malaysia is one of the major developing nations in South-East Asia with a vibrant young population and their rising purchasing power, it will maximize the growth of the tourism industry which in turn increase the demand of air travel in Malaysia.

- Technological

The airports in Malaysia possess top-notch facilities with upgraded runways, terminal buildings, navigation systems, security systems and equipments. The Malaysian government is pushing towards making Malaysia a major transit hub. Kuala Lumpur International Airport is one the major airports in the South-East Asia region. Malaysia is well-connected through world-class communication facilities.

- Environmental

The Malaysia government has been actively participating in formulation of policies and drafts for the sustainable development in all industries (Emerging Markets Research 2012). The airports have collaborated with indigenous airlines in order to reduce the levels of carbon dioxide emissions and noise pollution (Yashoda 2012).

- Legal

The Ministry of Transport of Malaysia monitors and controls the civil aviation sector in Malaysia. It formulates the policies of regulation, promotion, monitoring and control of Malaysia’s civil aviation sector with the Department of Civil Aviation working under it(Yashoda 2012).

SEGMENTATION, TARGETING AND POSITIONING OF INDIGO AIRLINES

- Segmentation

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Indigo Airlines should employ the strategy of “Benefit Segmentation”. Benefit Segmentation may be a system that segments clients on the support about fancied or looked reductions. These benefits, when they would introduce likewise qualities of