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A service marketing presentation about spicejet airlines and their quality of services offered

TRANSCRIPT

Presented byVishnu Menon

INTRODUCTION• An airline is a company that provides air transport

services for traveling passengers and freight. • Airlines lease or own their aircraft with which to supply

these services and may form partnerships or alliances with other airlines for mutual benefit.

• Generally, airline companies are recognized with an air operating certificate or license issued by a governmental aviation body.

• Airline services can be categorized as being intercontinental, intra-continental, domestic, regional, or international, and may be operated as scheduled services or charters.

COMPANY PROFILE

• Spice jet is a low-cost airline based in New Delhi.

• It began service in 23 May 2005.

• Spice Jet was earlier known as Royal Airway

• Indian low cost airline owned by Kalanithi Maran.

• This airline has more than 2500 employees working with

them currently.

• SpiceJet names all its aircraft after various spices and herbs

like Cinnamon, Thyme, Oregano.

• Spice Jet started off its services with a revolutionary

pricing of Rs. 99 for the first 99 days. This was followed

by air tickets priced at Rs. 500 and Rs. 999 . As a result,

the airline's prices compete with first-class Indian

railway fares

ACHIEVEMENTS

• SpiceJet was voted as the best low-cost airline in South

Asia and Central Asia region.

• By 2008, it was India's second-largest low-cost airline in

terms of market share.

• Voted India’s favorite domestic airline (4 times) at the

outlook traveller awards.

MISSION AND VISION

MISSION :

To become India’s preferred low-cost airline,

delivering the lowest air fares with the highest

consumer value, to price sensitive consumers.

VISION :

To ensure that flying is no longer only for CEOs and

business travellers, but for everyone

SERVICE MARKETING MIX

• PEOPLE

• The airhostesses at spice jet come in contact with the

customers in the process of providing the service, while

the cock-pit crew are employees who contribute to the

service product.

• At spice jet the front line staff play a critical role in

ensuring that the service is delivered to the customers

as promised.

PHYSICAL EVIDENCE

• At spice jet, the aircraft by itself would make up the

physical evidence in this service.

• Spice Jet's aircraft are configured in a single economy

class having 189 seats, which is among the highest in

the industry.

• In-flight entertainment such as spice route magazine is

provided

• Booking offices and ticket counters at spice jet Airlines are extremely spacious and well designed with good looks. The aircrafts are given excellent exteriors and are maintained well

PROCESS  Ticket booking – check in -luggage screening- boarding pass issue- physical checking- boarding- instructions and safety measures.

GAP model

• Provider gap1 (knowledge gap):Nil• Provider gap 2(service design and standard

gap):Nil• Provider gap 3 (service performance

gap) :failure to meet demand during peak times.

• Provider gap 4 (communication gap) :Nil

STP & DIFFERENTIATION

• SegmentationCost conscious passengers

• TargetingFrequent travellers, lower middle class and middle class.

• PositioningLow cost airline.

Differentiation : SpiceJet provides attractive offers to customers when compared with other airlines.

SERVICE QUALITY MODEL

• 96% of the consumers mentioned that the service is

RELIABLE

• 88% of the customers ASSURED about the service

• 80% TANGIBILITY attribute.

• 94% of customers talks about EMPATHY.

• 91% of people gave positive feedback about

RESPONSIVENESS attribute.

SERVQUALSI No Reliability Assurance Tangibility Empathy ResponsivenessQns Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3 Q1 Q2 Q3customer1 3 5 5 5 4 5 4 5 3 5 5 5 5 5 5customer2 5 4 5 4 4 4 5 5 3 5 5 5 5 5 4customer3 5 5 5 5 4 5 5 3 5 5 5 4 5 5 5customer4 5 5 4 4 4 5 5 3 5 5 5 5 5 5 4customer5 5 5 5 4 5 4 5 3 5 5 5 4 5 5 4customer6 5 5 5 5 4 5 5 3 5 5 5 5 5 5 5customer7 5 5 5 4 4 5 5 3 5 5 5 5 5 5 5customer8 5 5 5 4 4 4 5 3 3 5 4 5 5 5 4customer9 5 4 5 4 5 5 4 4 5 5 5 4 5 4 4customer10 5 5 5 5 4 4 4 3 5 5 5 5 5 5 5customer11 5 5 5 5 5 5 4 5 5 4 5 5 5 4 5customer12 5 4 5 3 4 4 3 3 5 4 4 3 5 4 3customer13 5 5 5 4 4 4 3 5 5 5 5 5 5 5 5customer14 5 5 5 5 5 5 4 3 3 5 5 4 5 5 5customer15 5 5 5 4 5 4 4 3 3 5 4 4 5 4 4customer16 5 4 5 4 5 5 5 4 4 5 5 5 5 4 4customer17 5 5 5 4 4 4 4 5 3 5 5 4 3 4 3customer18 5 4 4 4 4 5 4 3 5 5 3 5 5 4 4customer19 5 4 4 4 4 4 4 5 5 3 5 5 5 5 5customer20 5 5 5 4 4 5 4 5 3 4 5 4 5 4 4customer21 5 5 5 4 5 4 4 4 3 5 5 5 5 4 5customer22 5 5 5 4 5 5 3 5 5 4 5 5 5 4 3customer23 4 4 5 4 4 5 3 5 3 4 5 5 5 4 4customer24 4 5 5 4 5 5 3 4 4 5 5 5 5 5 4customer25 5 4 5 4 5 4 5 3 3 4 5 5 5 4 4customer26 4 5 5 4 5 4 3 3 3 4 5 5 5 5 4customer27 5 5 5 5 5 5 3 3 4 5 5 5 5 4 4customer28 5 4 5 4 5 4 4 5 4 4 5 5 4 5 5customer29 5 5 5 5 4 5 5 3 3 4 5 5 4 4 5customer30 5 4 5 5 4 4 4 5 4 4 5 5 4 5 5 points 432 397 360 424 411max point 450 450 450 450 450percentage 96 88.22222222 80 94.22222222 91.33333333

CUSTOMER SATISFACTION SURVEY - NPS

• Sample size : 30

• Promoters : 24

• Neutral : 5

• Detractors: 1

• NPS = Number of Promoters – Number of detractors

Total

= 24-1/30 x 100 = 76.67 %

GROWTH PLAN AND CHALLENGES

• Growth Plan: expansion of international flights.

• Challenges:

• FDI in aviation sector poses a main challenge to SpiceJet

• Etihad has plans of a tie up with jetkonnect.

• SpiceJet lacks business class segment when compared with

its competitors.

• Has an image of being a low cost airline which may backfire

in the long run.

Findings

• High concentration on domestic flights

• low cost airline

• Provides value for money services

• Provides On time services

• No differentiation or separation in social class

suggestions

• SpiceJet should think about providing complimentary

services to its customers who travel long distances.

• Should introduce business class section in flights.

• Should introduce more flights catering to the needs of

high class passengers.

CONCLUSION

 SpiceJet is a low cost airline concentrating heavily on

the domestic flights and providing value for money

services to its middle and lower middle level

customers. It has been successful in delivering on time

services and affordable offers to the lower middle

class and middle class passengers, thus making sure

that they do justice to their company slogan – “flying

for everyone”.

Thank you