By doing this professional profiling module I was doing a comprehensive analysis on the Jet Airways which is one of the leading airways in Indian subcontinent. For this I am going through the history of this company from the beginning to now and also the different marketing strategies they have adopted to improve their facilities and management with its competitors. To analyse this company deeper I will be doing a SWOT analysis such as their strengths, weakness, oppurtunities and threats compared to other companies. I think this will help me to know more about this company.
To research and analyze how Jet Airways has reached on top position in a highly competitive market like India
To analyze the quality of service standard offered by Jet Airways.
To find out the strategies they adopted to gain their success in the industry
To find how they attracted new customers and how they build up trust between themselves and their valuable customers.
Suggest them how they can keep up their spot and how they can improve the areas where they are week.
To know more about the milestones covered by Jet airways.
Jet airways was established in 1992 as an air taxi operator and later on 1993 they started their commercial operations Jet airways is the second largest air line in India and also one of the dominating market leaders in domestic sector. It has an international hub at Brussels airport at Belgium.Naresh Goyal one of the London based billionaire was founder of Jet airways. Mumbai is the headquarter of Jet airways. Jet airways were the first private airline of India to fly over international destinations. It operates over 400 flights all over the world around 67 destinations. In this 44 destinations are domestic and 23 destinations are international. They got number of awards for their services and goods. They have two low cost flights such as jet lights and jet airways connect.
Their major competitors in this field are kingfisher airlines. Indian airlines, Go air, Spice jet etc…………
Jet air ways has a lot of achievements in this field such as,
Best first class Business class and economy class at the business traveller awards
Best programme of the year by Freddie awards in 2007 and 2008
Best overall in Entertainment at the aviation awards 2010
India’s popular domestic airline at the SATTE 2006 awards
India’s airline at the world travel awards 2006
Best technical Despatch Reliability by Beaver 2002
Service excellence award at Global Managers in Jurassic Park, Sudan
India’s most respected company in the travel and food sector by businessworld 2003
Best long haul carrier ex-Brussels award at the Tim Travel awards 2009
Business travellers best Indian Airline Award in London.
The marketing strategies introduced by Jet airways is one of the important factors that them to achieve good customer satisfaction and earn more profit. Some of the marketing strategies adopted by the Jet airways are
Good planning is one of the important factors for the success of Jet airways in these sectors. By proper planning and trial they were able to make changes in the services and facilities. Their first priority is always given to the customer satisfactions and need. For this they compared the past experience and improve. Because of this fact they can reach at the top position.
The customers are divided into different classes such as Business class, ecomical class, and First class. Their target customers were Business class and economic class. The main reason is that the business travellers contribute about 66% of the revenue with 48% of travellers. Leisure travellers choose the economic class because they prefer low price airlines so they will change to the airline which gives more discounts. Therefore using the customer segmentation they find their target customers.
For attracting customers to their side they introduce some promotional activities such as offering free tickets to customers, low fare charge to students, jetlite surprises, corporate deals etc…………………
4. SWOT Analysis
Naresh Goyal the founder of the company was the strength behind the jet airways. His good knowledge in this sector and intelligence makes jet air ways as the second largest airline in india.Employees are also one of the important strength of jet airways. They have good intelligent and hardworking experienced staffs. They always give first place to the customer satisfaction this makes the company to achieve a lot of awards in this sector.
Strength of the jet airways is the customers. They have good customer reputation in front of the customers. They maintain their customers by giving good quality services and punctuality. This makes the jet airways to attract the customers all over the world in a short period of time. They have good relation with the government and all this make them at a higher position.
Jet airways are the one of the market leader with largest fleet size and have the ability to increase their profit and form a good relation all over the world.
Even though Jet airways have lot of strengths in this sector they have some weakness in some areas. Some of the weaknesses they have in this sector are
They have decreased growth rate and loosing of domestic shares compared to other leading airline companies such as kingfisher, go air etc…….They have old fleet with an average age around 4.79 years. Also they have weak promotion and discounts compared to other airlines. Trade unions in employees is also one of the weakness of the company because of the employees strike will affect the proper functioning of the company and it will affect the reputation of the company.
Main opportunity for Jet airways is the field of untapped air cargo market. And they also have scope for the international tourism and services.
Now a day’s jet airways have to face lot of threats in this sector compared to the past. The main reason for this is because of the increase in the airline companies and therefore a lot of competition between the domestic airlines such as kingfisher, Go air, Spice jet, Indian airlines etc……..In order keep their top position they have to try very hard and well planning in their project. High fuel price hike is also one of the threats facing by the company in past few years because of this they have to increase the ticket price and they loss their customers to the airlines. They not only facing challenges in domestic market, they are also facing challenges in international market because they have international competitors such as British airlines, etc…….
5. PEST Analysis
Some of the major political issues that Jet Airways is facing in the present days include:
Permit for International Operations: Although getting a permit for international operations for airliners seems to be not of a much big concern, still there are a wide range of procedures and standards that are to be met, to be eligible for the same. These standards and licensing services are under the direct control of Civil aviation Authorities of the respective country. The Standards laid down by these Governing bodies also varied from place to place.
International route Regulations.
Open Sky Policy.
Major economical problems which are faced includes:
Rising fuel cost and Currency Inflation.
Need of higher capital Investment.
Increase in Population Growth.
Globalisation in Employment Sector.
The Status symbol attached to Air Travel.
Improved Living Standards in Developing Countries.
Higher preference for E-Commerce and E-Ticketing.
Evolution of better and improved techniques every now and then.
Greater awareness and concern towards environmental conservation.
Dwindling Environmental Balance.
Inflexible and varied aviation rules and regulations in different countries.
High tax charges which vary from country to country.
As the time pass by, Jet Airways is evolving in every possible domain of aircraft industry, provided that the challenges and threat are also growing along with the opportunities available in the market. Because of this there is a need that Jet Airways transform their operational priorities so that they can meet the expectation of the high and as well as the lower end of the demanding population. The division in the market, thus separating the aircraft industry into parts based upon their mode of operation has forced airliners like JET airways to do something renowned and distinct so as to stand out of the crowd.
In comparison to the offer that were given a couple of years ago and now, for the fares and other facilities are of no more match. Ticket fares these days have gone down to ‘0’ as well, just because of the massive competition prevailing in this sector. Another strategy that can be deployed is by achieving service quality, namely the in-flight and also the post-flight services given to the passengers. Providing extra attention to fragile areas or areas where performance qualities aren’t met, should be taken special care.
7. Suggestions and Recommendations
Weighing the strengths and weakness, Jet Airways has overcome their weaknesses and its time that they make their weaknesses their strength and overcome the prevailing and approaching threats in the market that evolve every now and then. The basic things that they should take into consideration:
To meet the growing demands of the high end users, upgrade their technology and accessories to have a better image on the public.
Try to raise the Brand name, by giving quality service to the passengers both in-flight and post-flight as well.
Establish better Tie- Ups with external agencies or carriers to have a better connection worldwide.
Launch attractive and handsome offers to attract higher end customers.
In accordance with the creation of my Project Development, i met with a guy from my native place at the Changi International Airport, who happened to be a fresh graduate with a Diploma in Civil Aviation. It was from him that i could learn a lot about the Civil Aviation rules and regulations, also he did forwarded to me couple of resources which were really helpful and proved to be vital for the proper completion of the Project work. It was really helpful indeed.
Analysing the changing trend and purchasing style of the population, how do you assess the standing to Jet Airways in the current market?
In this pre-occupied living of the people, do you think post flight services will be helpful as a market strategy?
Companies are going about brand activation at multiple consumer touch-points. How are you balancing your offline and online marketing initiatives?
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