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Air Deccan
EVERYONE - CAN FLY
Made By: Group 10
SIDDHARTH B60
SWARNIMA B62
PRIYA B67
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The Indian
economy has
grown at an
average rate of
around 8% in
the last
decade: The
rise in business
and leisure
travel (bothdomestic and
international)
Since 2003,
when low fare
travel in India
was usheredin, a number of
low cost
carriers (LCC)
have entered
to serve thisfast growing
market
However, all of
the LCC
carriers and
with rareexceptions
even the full
service carriers
(FSC) charging
higher fareshave been
making losses.
On 19
December
2007, it was
announced
that Air Deccan
would merge
with Kingfisher
Airlines.
An Overview
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LCC
A low-cost carrier
Or low-cost airline
Considered as a no frills, discount or cheapflight
An airline offering low fares with fewer
comforts.
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Strategies planned by Air Deccan
Misson : Provide reliable, low cost and safe travel to the
common menStrategies:
High Aircraft Utilization
Route planningDynamic pricing
Cost reduction
Marketing & promotion
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Major players in the Industry
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Positioning of Different Carriers:
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Empowering every Indian to flyVision:
To demystify air travel by providing
reliable, low cost and safe travel to
the common man by constantlydriving down the fares as an on going
mission.
Mission:
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No Frills
This means that it does not offer any complementary services offered by
other full-service airlines.
Complimentary services include multi-cuisine food, airport lounges,
magazines, entertainment, etc.
Incur not only the basic cost of food but also the cost of oven,
microwave, preheated food cabins and serving trolleys.
Moreover, the aircraft becomes lighter as a result of offloading of
heating appliances which increases the fuel efficiency of the aircraft.
This reduces costs associated with food, appliances, heating and serving
(stewards and stewardess) thus, resulting in major costs savings.
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STP ANALYSIS
SEGMENTATION
-geographic
TARGETING
-smallbusiness man
-middle class
POSITIONING-LCC
-quality
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MARKETING MIX
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Product
No frills air travel.
Price
Air Deccan has low fares 25% of seats at pricing between Rs 700 to Rs
1500
50% of seats were priced half of FSCs
The rest 25% seats priced 70% FSCs.
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Place
It provides its services in 8 cities
Customers can book their ticket by calling the 24
hour call center.
The customers also get their tickets in retail outlets
Promotion
Promoted through print and outdoor media Its advertisement mainly focus on low fares.
Television advertisement
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RE- BRANDING
Purpose: to re-energize the brand
Before
Deccan colors withyellow and blue
Crew uniform-Blueand white
After
Signature color of redwas incorporated intodeccan aircrafts
Changed to red
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SWOT ANALYSISStrengths :
Leader in LCC segment
First to target the middle class : First moveradvantage
Highest load efficiency A Lean-and-Mean approach to staffing
Weaknesses : Focuses mostly on South Indian market
Limited staff
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Opportunities :
Plenty of scope for expansion of operations
Could start Seasonal Employment
Threats :
High attrition rate
The threat of new entrants into Low Price
Segment especially IndiGo, Go Air and SpiceJet
High Risk Perception
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Why Low Cost Airlines are not so
successful in India ???
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Reasons
Failed in effective administration
Poor services
Unable getting subsidiesLess interest of Government
Failed in building trust factor
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INNOVATIVE SUGGESTIONS BY WHICH
THEY CAN KEEP THEIR COST LOW
They should minimize the days of their flight.
Discount offers on occasions & for Newlymarried couples.
Toll-free number on which tickets can be
easily booked.
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CONCLUSION
Air Deccan was successful in starting a low cost
carrier and was able to carry forward the initiative
that it has undertaken. The current scenario is
something different as Air Deccan was overtaken byKingfisher.
On 28 September 2011, Chairman Vijay
Mallya announced that the company would soon
stop operations of Kingfisher Red as it did not believe
in low-cost operations any longer.
http://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Vijay_Mallyahttp://en.wikipedia.org/wiki/Vijay_Mallya8/22/2019 Ppt Mrktng Air Deccan
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