8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 1/13
PRESENTED BY
Anshul
Ashu Akkshita
Kriti
Nikhil
Pankaj
Shashikant
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 2/13
BEFORESEGMENTATION
FOR 80% OCCUPANCY
(NO. OF SEATS)
TOTAL
COST/FLIGHT($)
TICKET
PRICE/PASSAN
GER($) REVENUE/FLIGHT($) PROFIT ($)
240 54800 250 60000 5200
rofitibility(sales) Profitibility(Cost)
Per passenger
cost
Per Passenger
Profit BEP(Units)
8.67% 9.49% 228.33 21.67 218
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 3/13
AFTER SEGMENTATION(ALL FIGURES IN $)
1ST CLASS BUSINESS
CLASS
ECONOM
Y
TOTAL
PASSANGER 24 72 144 240
COST 21566.67 22046.67 19546.66 63160
PRIC
E/TIC
KET1000 500 250 -
REVENUE 24000 36000 36000 96000
PROFIT 2433.33 13953.33 16453.33 32840
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 5/13
List all the benefits to all stakeholders of
the airlines? (a)Employees
(b)Customers
(c)Govt. orgs.(d)Investors
(e)Suppliers
Due to the segmentation airline co. hasmade huge profits than withoutsegmentation. Due to increase in profitsbenefits to the stakeholders are as follows:
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 6/13
(a) EmployeesHigh salary,Increased wage,
(b) Increased incentives(b) Customer Fulfillment of their needs.
Improved services leads to higher satisfaction(c) Govt. Orgs Higher taxes collection
(d) Suppliers Increase in profit as demand fromairline co. will increase
(e) Investors Higher dividend, Higher shareprice,Safety of Investment
made by Creditors
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 7/13
Who all could be the beneficiary?
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 8/13
Do you think any segment is subsidising for any other segment? If so who to whom? If not why not?What do you understand by
absolute satisfaction and relativesatisfaction? Do you think any class may fill dissatisfied although absolutely
satisfied.when would that happen?Howwould management prevent it?
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 10/13
YES, ECONOMY CLASS SUBSIDIZES FIRSTCLASS
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 11/13
1ST
CLASS
BUSINESS
CLASS
ECONOMY TOTAL
PROFITABILITY(SALES) 10.14 38.76 45.70 34.21
PROFITABILITY(COST) 11.08 63.29 84.18 52
PER PASSENGER COST 898.61 306.20 132.27 263.17
PER PASSENGER PROFIT
101.39 193.80 117.73 136.83
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 12/13
W hen any customer compares its benefits to its cost andhe is satisfied i.e. his benefits are more than costs , than heis said to be absolutely satisfied.
But when he compares its cost and benefits to othercustomer and he is satisfied then he is said to be relatively satisfied.
� Yes he can be absolutely satisfied but relatively satisfied.
W hen a customer finds his benefits are more than its cost,he is absolutely satisfied, but when he compares with it with any other class may it be of same company or
competitors company and he feels he has got less benefitin comparison to him/ her.
8/6/2019 Airlines kant RATIO
http://slidepdf.com/reader/full/airlines-kant-ratio 13/13
W hen can segmentation go wrong? How to avoid segmentation going wrong?
W hat precautions to take?
Segmentation can go wrong when there is something wrong with market research:(1)Secondary data source is not reliable.
(2)Method of data collection is faulty .(3)Problem definition is wrong.
(4)Fault in sample unit, sample size and selection of sample(5)Mistakes in collection of information.
(6)Mistakes in analyzing information.