Jet Airways Project
Jet Airways Project
Jet Airways Project
Team Members: -
Fleet Size
Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Senior Management
Capt. Hameed Ali
I. Airline
1. First Class
The highest class offered. Jet Airways provides extremely luxurious on-board experience
for high income groups’ customers. Some of its services include- Own private suite with
dual sliding doors, night sky mood lightings, private wardrobe, personalized five-course
meal.
2. Business Class
This consists of spacious seats revolutionary lie-flat bed feature which are surrounded
with a wall of privacy and personal space. ‘Dine Anytime’ feature is
available. Entertainment is available on fingertips with 0.39 metre (15.4-inch), touch
screen LCD TV. These would be desired services which the Airline meets. However, the
adequate services are reaching on time and good hospitality and food.
3. Economy Class
A ‘hammock’ headrest, unique footnet, latest blockbusters available for entertainment on
0.27 metre (10.6 inch) touch screen TV., carefully designed menus of both Indian and
international cuisines catered by Taj. These are the desired services which the airline
fulfils. Adequate services would be reaching on time.
II. ‘JetXtras’
1. Airport Lounge
Jet Airways provides one of the most lavish lounges to First and Première class
passengers, along with JetPrivilege Platinum and Gold members.
2. Jet Boutique
It is the in-flight Duty free service on a wide range of global luxury brands including the
latest in fragrance and cosmetics, watches, gadgets, trendy jewellery, travel essentials,
liquor and more.
3. JetEscape Holidays
The recent initiative in owning the entire widget of tourism, Jet Airways offers customers
to plan their holidays, from flights, hotels to even tours.
SEGMENTATION & POSITIONING
I. Segmentation
Segmentation in jet airways has been done according to the purchasing power of the
customers. Different segments offer different facilities according to the prices charged.
Segmentation of the market, in Jet Airways, has been done in three ways which are as
follows-
1. First Class- The highest class offered. Jet Airways provides extremely luxurious on-board
experience for high income groups’ customers. Some of its services include- Own private
suite with dual sliding doors, night sky mood lightings, private wardrobe, personalized
five-course meal.
Moreover, these are the desired services. Adequate services in this segment would be
personal space, good food, good hospitality, reaching on time.
2. Premier Class- This consists of spacious seats revolutionary lie-flat bed feature which are
surrounded with a wall of privacy and personal space. ‘Dine Anytime’ feature is
available. Entertainment is available on fingertips with 0.39 metre (15.4-inch), touch
screen LCD TV. These would be desired services which the Airline meets. However, the
adequate services are reaching on time and good hospitality and food.
3. Economy Class- A ‘hammock’ headrest, unique footnet, latest blockbusters available for
entertainment on 0.27 metre (10.6 inch) touch screen TV., carefully designed menus of
both Indian and international cuisines catered by Taj. These are the desired services
which the airline fulfils. Adequate services would be reaching on time.
Target market-Jet Airways has also targeted low cost segment- customers who usually
prefer travelling through train. It introduces limited tickets sale, periodically, where
people can book air with 2-4 months in advance at heavily discounted rates. These
customers are very price sensitive and mostly do not venture for unplanned traveling,
such offers become a key source to attract new customers.
II. Positioning
Jet Airways has fitfully positioned itself as an airline for all and is a true challenger to the market
leader Indigo. It provides services to both high and medium earning customer segments. Its
product line caters to a vast market. Besides price, it has positioned itself well in other parameters
like quality, pleasant atmosphere and comfort. To maintain its position and gain market share it
stress heavily on crew training and behaviour. It maintains punctuality and safety standards.
7 P’s OF MARKETING
1. Product
Jet Airways
1. First Class
2. Premiere class
3. Economy Class
Jet Airways Cargo
General Cargo
Perishables: Fruits & Vegetables, Flowers, Sea Food or Meat
Pharmaceuticals
Courier
Pets
Valuables
Dangerous Goods: Highly specialized service for transportation of Dangerous
Goods as per IATA and ICAO regulations.
• Airmail: A special product for Post Office Mail across Jet Airways Domestic
and International network.
2. Place
• Jet Airways has got customer helpdesks in all operating airports and a dedicated ticket
counter for instant ticket purchase and cancellations.
• Its website is well maintained and it offers tickets at lowest prices inclusive of all
taxes over there. Once the Jet Airways tickets are booked either through its own sites or
other ticketing sites, a mail and confirmation of booking is sent along with the PNR.
• Through #JetInstant (on Twitter) web check in, flight status and other online options
are also available.
Sponsorships:
• Jet Airways are the principal sponsors for Indian Premier League (IPL) team Mumbai
Indians.
4. Price
• Market share of Jet airways was 13.7%, flying 1.63 million passengers during the
month of May, data from Directorate General of Civil Aviation (DGCA) showed. It was a
distant second to its No 1 rival IndiGo.
• The Price level changes as the customer is provided with more comfort and luxuries
such as Business class, economic class, aisle seats, food, etc.
• Jet Airways provides concessional fares and offers for premiere as well as economy
class like One Fare Travel within India.
• Concessions
• Armed forces concession
• Senior citizen
• Student concession
Performance
• Jet Airways reported standalone revenue of Rs6,055.15 crore during the March 2018
quarter, down from the Rs6,271.21 crore it reported during the same period of the
previous year.
• Jet Airways, with 14.7% of the domestic market share, reported a small profit due to
higher fuel price and a slow growth of domestic passengers during the March 2018
quarter.
5. People
As Jet Airways has been providing some best of the industry facilities to its customers, it
must also take care of its Customer contact points in order to promote the efficient reach
of these facilities to customers. The airline has been making best efforts to support and
motivate their employees in this regard as employees are the face of the organization and
the medium through which organization can create a positive perception in customers
which in turn results in business growth. Jet Airways follows an Open-Door Policy towards
its employees and opts for a consultative process to derive reasonable conclusions for any
internal organization conflicts. These kind of processes will promote employee loyalty and
responsibility.
6. Process
Jet airways has been working continuously on its processes since inception. It has a special
program named “Jet Privilege” to provide benefits to special flyers and it has also started
zero-cancellation fee on flight ticket cancellations. The organization has been constantly
working on providing best customer experience by updating its existing processes to
deliver value with the help of customer feedback. They also offer benefits for students
through student-travel programme called “eduJetter”. The airline also has tie-ups with 7
car-rental service providers to provide services to its customers. In many such efficient
ways the airline always tries to hold and maintain good relations with its customers.
7. Physical-Evidence
As we know any airline would first segment their customers into categories like economy, business
etc.. Jet Airways also provides various features according to the categories made, so that the
customer expectations could be delivered. “Best Price Promise” program from Jet Airways also
grabs attention of the people. They create promotion by gaining positive word of mouth from
customers by creating impressions in their minds through ambience, facilities and experience.
Facilities provided by Jet airways are best dining from various cuisines, In-flight Entertainment by
providing access to latest TV Shows and movies and magazines.
PORTER’S FIVE FORCES
3. VR Box ( For Tourism)- The huge part of the Indian Airlines Industries (181.9 Bn USD)
comes from the Tourism. And with the upcoming technologies like Virtual Reality box,
people may prefer to tour places though VR boxes, and which may decrease the demand
of the Airlines industry.
1. Market Penetration
As can be seen from the figure above, market penetration happens when the existing products are
marketed in a way to increase the market share of the firm. This is a minimal risk strategy as all
that a firm has to do is to increase its marketing efforts and improve on its market share. Jet
Airways has tried to do this through its image, value proposition and quality of service. Some
examples are: fast track immigration, secure flight passenger data, electronic system for travel
authorization, special care options for mothers, children and guests with disabilities, pets, social
media marketing campaigns etc. They have provided discounted fares and specific offers as well
but not as much as budget airlines like Indigo and Spice. The “GET MORE” campaign was another
corporate branding exercise undertaken to build the image to highlight the features offered by
them. Unfortunately since India is a price sensitive market these features have not had the desired
effort from a business growth point of view. In other words, the firm has to ensure that it leverages
the current capabilities, resources, and gears towards a growth-oriented strategy.
2. Market Development
When firms seek to expand into new markets with their existing products, market development
happens. This is suitable for firms that have the capabilities and the resources to enter new markets
in pursuit of growth. Jet Airways merged Jet Konnect and Jet Lite and decided to offer connectivity
between Tier – II cities. It decided to expand its presence in the North East and make Guwahati a
hub. Further, the firm’s core competencies must be aligned with the products rather than the
markets and wherein the firm senses an opportunity in the new markets for its existing products.
Market development is more risky than market penetration as the firm is entering uncharted waters
and therefore, it is in the interests of the firms to do their due diligence before entering new
markets. Examples of market development would be the mobile telephony companies like
Vodafone and Nokia entering African markets where these markets are yet to be tapped and where
these firms can leverage their existing expertise to enter these markets.
3. Product Development
When firms seek to launch new products in existing markets, product development happens. This
strategy can be successful when the firms have already established themselves in the existing
markets and all that they need to do is to launch new products, which leverage the brand image
and the brand value and meet the expectations of the customers in the existing markets. Jet
Airways launched the GlobalLinker, an online market place for the small and medium
enterprises (SMEs) a few years back to offer services to this segment and create products for
them by getting insights into them. Another effort was the Etihad strategic partnership in 2013
and the launch of international operations. For instance, whenever consumer giants like Unilever
and Proctor and Gamble (P&G) launch new products in existing markets, they have the
advantage of a strong brand value and top of the mind recall among the customers about them,
which would help them to garner market share. When compared to the previous two strategies,
this strategy is more risky as it is not sure whether the transfer of customers from the existing
products to the new products would happen as seamlessly as the firms strategists believe.
4. Diversification
When firms launch new products in new markets, diversification happens which entails both new
products to be developed and new markets to be tapped. This is the most risky of the four
quadrant strategies in the Ansoff Matrix as essentially the firms are not only testing the waters in
uncharted territory but they are also launching new products that may or may not be well
received by the customers. Jet Airways has not launched services in completely new markets but
the Jet Airways charter services and Jet Airways Cargo services were very different from what
they had been doing till then. Indeed, diversification is a high-risk strategy and is only justified
when there are chances of high returns for the firms.
As of 2017, the market share data looks like this highlighting the fact that Jet has a long way to go to catch up with
Indigo.
Customer Life Cycle
The Customer Life Cycle follows five stages through the life of a customer:
a. Reach
b. Acquisition
c. Conversion
d. Retention
e. Loyalty/Advocacy
By successfully guiding customers through these 5 stages companies will end up with
enthusiastic advocates of their brand.
Let’s take a closer look at each step and what Jet Airways has done along the way.
1. Reach
During this stage you reach out and make contact with a potential client.
This stage involves things like:
a. Advertising
b. Social Media
c. Search Engine Optimization
d. Word of Mouth
Jet Airways has done all this and more over the years – a great website which they keep
changing, special campaigns for both full service and low cost, social media campaigns on
SMS and Facebook, data analytics using SAP Business Objects, IBM Analytics,
GlobalLinker for SME segment, Sharukh Khan as the brand ambassador as well as traditional
means like hoardings and paper advertisements.
2. Acquisition
Here is where the interest of the customer is activated and to get him or her closer to a sale. Jet
Airways has over the years used mechanisms like online booking facilities, price discounts and
slabs, greater connectivity options, special facilities for categories of people like women, kids
and disabled etc. Other acquisition options explored by Jet Airways have been cancellation fee
waivers and special baggage rates and tagging. Also Jet Airways operates a very professional
24/7 helpdesk to be available to prospective customers to answer their queries and clarify their
doubts.
1. A mature frequent flier program with tie ups with international partners
2. Providing different types of cards like platinum, gold and silver’
3. Ambience and environment specials in different classes of the airline
4. Behavior of the flight staff and their talk and dressing
5. Crockery, pillows, blankets etc. provided
6. Quality of cuisine
7. Tele check in, web check in and priority baggage tagging
8. Gifts for kids and
9. Public relation campaigns like blood donation campaigns, Magic Box and many
more
5. Inspire and Advocacy
This this the end goal all companies should have with all their customers.
At this stage you’ve attracted a customer’s attention, made a great impression, closed the
sale and provided excellent service. Now your customer has become a loyal friend and an
ambassador for your business. They’ll tell their friends and send you referrals.
Jet Airways has attractive offers for referrals, customers who provide testimonials and
companies who sign up long term relationships. Jet Airways also has excellent processes
to collect feedback for loyal customers to continuously improve. Loyalty programs are also
specially launched through tie ups for the benefit of these advocates of Jet Airways.
It’s not always easy to reach this stage of customer loyalty but if you do the result can be
incredibly powerful. The customer development life cycle leading to loyalty can be represented
as follows.
OPERATING COSTS
Other Aircraft
Operating Operating
Expenses Lease Expenses
12% 19%
Aircraft Fuel
37%
1. Fuel Costs
Aviation fuel (Brent fuel) always command a premium price from airlines. Currently, the
fuel is charged at Rs.56,264 per km.
2. Staff Costs
The sheer size of the staff, ranging from maintenance to air hostess and hosts takes 25%
of the annual operating costs.
REASONS OF SUCCESS & FAILURES
Success
Since its formation in 1992, over the time, Jet Airways improved its market share significantly. It
went up from 6.6% in 1993-94 to 42% in 2000-01.There are some very tangible aspects to
conclude about jet airways success.
1. Customer service: From the inception, Jet airways was always more focused on
customer service, rather than anything else. Because of its supreme customer care
service, it became the most popular airline in India.
2. Business Strategy at first: Jet airways started its business in India with leased
aircrafts, as it had cost very less rather than investing in the buying of new aircrafts. It is
like investing only 0.4 million $ rather than investing 40-50 million $ at one career
plane.
3. Technology: Jet Airways also started its operations with the new Boeing 737-300s
and not the older Boeing 737-200s. As it was the best technology available at the time
for air buses, these were fuel efficient and cheaper to maintain.
4. Working efficiency:
As Jet airways had only one type of flight i.e. Boeing 737-300s, it was easy to maintain
the fleet. This helped the flight crew training to be simpler.
Because of the above parameters, Jet Airways' aircraft utilization and number of
flights per day was more than that of Indian Airlines. And that was an edge for them to
advertise themselves as very connected.
Last but not the least, another success factor for Jet airways was its lean structure. It
had only 163 employees per aircraft compared to the 397 employees of Indian Airlines. It
the time of its start, Jet Airways was virtually the only major private player in the aviation
industry of India. It did not face any competition from the other private player-Sahara
Airlines.
Failure
1. Zero income from sales
Jet Airwaysattributed the decline in other income to nil sales from the share of profit and
no income from the sale and leaseback of aircraft in the reporting quarter.
2. High Ticket Costs
While the business class passengers contribute to 48% of passengers share, the economy
class is often left unattended due to cheaper alternatives.
3. Rise in Fuel Expenses
Jet Airways net profit affected mainly due to the surge in the aircraft fuel costs. In the last
quarter, aircraft fuel expenses rose about 16.7% in the July-September period to Rs
1,525.66 crore from Rs 1,307.36 crore.
PERFORMANCE AGAINST COMPETITION
1. Price -
Indigo with the largest market share of 40% is dominant over here. This advantageous point has
given them the opportunity to target the Indian economy class customer by fulfilling their adequate
level of satisfaction at 10% cheaper rates as compared to other Indian airlines.
Jet Airways on the other side is trying to serve the desired level of satisfaction of the customers
because of which they are on a little higher side when it comes to comparing prices with other
airlines services. User experience with luxurious privileges like any time dine facility, delectable
cuisine, and onboard entertainment are few of the extra facilities Jet Airways provides at much
cheaper rate in their flights.
Adding on to it, Jet Airways has already started targeting economic market through its new
subsidiary like Jet Lite which has got a tremendous success in a very short duration of time.
Advertising and Marketing are the most important aspects of any business. This is the stage when
a company decides to use the STPP (segmentation, target marketing, position, and planning),
model. Jet Airways with their exclusive marketing strategies (like frequent discount offers, social
media campaigns) is able to lead among all Indian airlines. In the Google AdWords, they are
willing to spend an average CPC of Rs17, which is the highest among their competitors.
Adding on to it, last year with the massive investment of 3 Mn USD in their Advertising campaign
they have been able to grab a huge number of customers.
6. Website Traffic
As per the Alexa Ranking, Jet Airways has been ranked 797 among the Indian websites, and
6497 on the global level, which is a bit on the higher side as compared to the Indigo which has
got the huge traffic in recent time because of their controversial acts. Below-mentioned are the
facts associated with the other Airlines as well.
7. Passenger Load Factor (Pax)
Passenger load factor which is a measure of capacity utilization of any airlines is considered as
a very crucial factor in this industry. It has been figured out that there is no dominance of any
airlines when it comes to filling the seat. All the airlines have the approximately same passenger
load factor of around 90%.
8. On-Time-Performance (OTP)
On-Time Performance is also a very crucial factor to measure the performance of any flight. It
indicates how punctual a flight is. Indigo is on the top with 75.4% of OTP as compared to Jet
Airways which is on the last position with 62.4% OTP among Top 5 brands of Airlines. Below-
mentioned are the Statistics associated with other Airlines.
9. Number of Complaints-
With the increment of competition in the market, it has become really very difficult for the Airlines
to meet the expectations of clients. And providing the service below adequate level simply leads
the client to put a complaint against any Airlines services.
Air India which is a government-owned Airlines services is on the top when it comes to the number
of complaints against any Airlines, where Jet Airway comes in the second position. Below-
mentioned are the Statistics associated with other Airlines.
RECOMMENDATIONS
• Replacing first-class seats with business-class seats, on ‘low demand’ routes.
• More use of the brand ambassador (Shah Rukh Khan) in campaigns, due to currently low
amount brand promotion.