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Case Study Of Indigo Airlines

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Options for the challenges faced by IndiGo Airlines 1. Increasing Customer Expectations IndiGo airlines is already providing on time service, quick turnaround times, economy plus service, a clean flight[3]. It raises the expectations of the customer. a) Promotional Fares and Incentives b) Opening of new routes Recommendation: (b) Reason and Marketing Objective: There are 450 unused or abandoned airports and airstrips across the country[1]. Also, The market already has about 150 million travellers passing through its airports, with the capacity to grow further[1]. If IndiGo airlines opens routes to tier II and tier III cities, then it will cater to a larger target market. The airlines could advertise these new routes by putting up billboards in regional languages. This option would increase the costs associated with expansion[2]. This option might also lead to an initial loss[2]. By going with this option the company will increase customer loyalty and customer lifetime value. This can also be looked at as market development. The company will be introducing the existing product, but to a new customer. The point of differentiation for IndiGo would be high reliability for on-time performance[Kotler]. 2. Growing competition and risk With introduction of new entrants like AirAsia, there is a growing competition. a) Increasing the frequency of flights b) Expansion Recommendation: (b) Reason and Marketing Objective: Airlines could identify the geographical market which is new

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