Air India Marketing Strategy – Marketing Strategy of Air India: The government-owned company that operates the fleet of Airbus and Boeing planes was founded in 1932 by J. R. D Tata, which was then renamed Tata Airlines after World War II. It became a limited company.
In-principle approval has been granted by the Indian government to disinvest and privatize the debt-ridden company. The company’s extensive international reach and 6 country freedom rights make it attractive for companies such as Tata Group, Indigo, and others in the industry to purchase the stake or operate the operations.
Air India At A Glance – Marketing Strategy of Air India
Company : Air-India Limited
CEO: Ashwani Lohani
Founder: J. R. D. Tata
Year founded: 1932, Mumbai
Headquarters: New Delhi
Annual Revenue: US$3.5 billion
Profit | Net income: US$−1.1 billion
Number of employees : 9,993
Products & Services: Airline | Air travel | Air India Airport Services
Air India Competitors
Competitors: Kenya Airways | Royal Air Maroc | Austrian Airlines | Air China | Aer Lingus | Fiji Airways | Aerolineas Argentinas | Saudia Airlines
Air India Fun Facts: The first flight of Air India that had touched the skies on October 15, 1932, was the first commercial flight of India. J.R.D Tata had flown it from Karachi to Bombay via Ahmedabad, J.R.D Tata was the first licensed pilot in India.
Marketing Strategy of Air India
Air India’s Marketing Strategy covers various aspects of the business right from segmentation and targeting to the overall mission and vision of the company and the various parameters which the company executes to become the top brand that it has in the market. So what is the Marketing Strategy of Air India? Let us discuss.
Segmentation, Targeting, Positioning – Air India Marketing Strategy
To group the population-based on similar characteristics in the service sector, factors like income, gender, age, and psychographics are important. Air India employs a combination of demographics and psychographics as well as geographical segmentation strategies.
The brand uses an undifferentiating strategy, which is causing it to lose market share within the competitive industry.
It uses mascots to build a unique image of itself in customers’ minds.
Air India Mission Statement
Air India Vision Statement
“To be the Leader in India Aviation and India’s Ambassador to the world”
Air India Tagline
“Next time flies with Air India and feel the difference”
Competitive Advantage – Marketing Strategy of Air India
International Reach and Rich Heritage: Whether it’s the Maharaja mascot or the fact that the public sector enterprise is backed by government funds, many factors have contributed to Air India becoming the largest international Carrier from India.
Wide Reach: Air India has more than 1400 pilots, and 2100+ cabin crews and is reaching more than 30 countries around the world.
BCG Matrix – Air India Marketing Strategy
It is a member of the SBU, which includes subsidiary and joint ventures like Air India Express (AASL), Air India Air Transport Services Limited(AIATSL), Air India Charters Limiteds (AICL), Air India Engineering Services Limited (AIESL), Hotel Corporation of India Limiteds (HCI), and Air India SATS Airport Services Private Limiteds (AI- SATS).
Air India Express and Air India Air Transport Services Limited (AIATSL), are the Stars of the BCG matrix, while all other businesses are question marks except for Air India Airlines which is a dog in the BCG matrix because of rising losses and high debt.
Distribution Strategy – Marketing Strategy of Air India
Air India owns a fleet that includes more than 110 aircrafts such as Boeing747400, 777-220LR, 777-321ER, 777-321ER, and Boeing 737-801.
It serves more than 60 locations worldwide and 90 locations on the four continents.
The company is a member of the world’s top aviation alliance, i.e. Star Alliance offers seamless, global service for foreign travelers in an easy-to-use manner.
Brand equity – Air India Marketing Strategy
The lovable Royal Maharajah is a symbol of the rich Indian culture. Air India’s rich heritage is what has made it a household name. It uses branding strategies to create a buzz in the market and break stereotypes.
Over the years, it has won many awards and praises such as the award for lowest carbon emissions, Best airline in the world by Region 2017, and many others.
Competitive Analysis – Air India Marketing Strategy
Air India holds more than 16% market share thanks to its international operations.
The cost structure is a key factor in the operation and competitive landscape of companies in the industry. It includes fuel, administrative costs, rental of aircraft, ticketing sales & promotion, user fees, Pax services, flight crew salary & expenses.
Air India and its Kochi-based subsidiary Air India Express Limited, (AIEL), compete with companies such as Indigo, Jet Airways Go Air, Air Asia Jet Airways, Jet Airways, Spice Jet, Jet Airways, Jet Airways, Jet Airways, Jet Airways, Jet Airways, etc. In the regional and national market, Etihad, Oman Air (Thailand), Thai Airways, Singapore Airlines, and Emirates are the main competitors.
Market Analysis – Marketing Strategy of Air India
Airline markets are facing their bottlenecks. The company’s operations are affected by factors such as rising fuel prices, Long Haul & Short Haul permits, fifth freedom rights, and government regulations.
According to DGCA (Directorate General of Civil Aviation), Air India Airlines holds a 13.5% market share in India’s aviation market.
Customer Analysis – Air India Marketing Strategy
Air India’s customers are mostly from Asia Pacific, Africa, and the Middle East. They are either followers or connectors (see below).
Customers are classified as Middle-income and Upper middle-income classes. Most customers are between 30-and 50 years old.
Approximately 13834000 passengers have traveled through Air India year-on-year, posting a 7.5% increase (DGCA report), in FY 2016-17, compared to the previous FY. Around 13% of all passengers have also traveled through Air India.
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