AIR INDIA

PRODUCT AND BRAND

GROUP-V
MANAGEMENT
PRESENTED BY:
RAMANDEEP KHATKAR
SAI SRINIVAS
VAMSI PREETAM
 INTRODUCTION
04 Carried out missions:
-Gulf War Evacuation(1990)
-Vande Bharat Mission(2020)
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Current CEO – Ashwani Lohani

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Headquartered in New Delhi

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Air India Limited with Air India being the flag
carrier is owned by the Govt. of India

10/05/2021 2
 TIMELINE
Air India International
1932 Tata Airlines 1946 - 48 Air India 1953 Ltd
Established by JRD Tata Tata Airlines became a Air industry in India was
Public Limited Company nationalized with Air
under the name Air India, of Corporations act.
which 49% was later
acquired by the Govt of India
in 1948.

Air India - Jet age 1960 - 62 Launch of AI Express 2004 Air India - Indian Star Alliance
2007 Membership
2014
Asia’s first airline to induct jets Low cost subsidiary for Airlines Merger
into fleet in 1962. Air India and Indian Air India became
domestic and international
By 1962, AI became the Airlines were merged the 27th member
short-haul routes
world’s first All-Jet Airline. under Air India Limited of Star Alliance

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 AIR INDIA
SUBSIDIARIES

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 INDUSTRY AT
A GLANCE
• India to become the third largest aviation market by 2025, overtaking UK, according to the
International Air Transport Association (IATA)
• According to Morgan Stanley, the Country will witness an investment of USD 25 Billion in the
next decade in the airports sector and traffic growth of 13 %
• The latest data released by aviation regulator Director General of Civil Aviation (DGCA) reveals
that domestic passenger air traffic grew by 3.74 percent to reach 144 Million passengers in the
Year 2019 as against 139 Million passengers in the Year 2018
• During FY 2019-20, the number of passengers carried by Air India Express grew by 11% from
4.36 Million to 4.84 Million, including 4.66 Million passengers who travelled on the international
sectors operated by the Airline. Consequently, the Airline’s market share of the traffic carried from
/ to India increased from 6.5% in FY 2018-19 to 7.1% in FY 2019-20

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 INDUSTRY AT
A GLANCE
• At present, the airlines industry has been divided into 2 major segments: Full-Service Carriers and Low-
Cost Carriers

LOW-COST CARRIERS FULL-SERVICE CARRIERS

PRICE STRUCTURE LOW HIGH
CABIN CLASS MOSTLY ECO ONLY MULTIPLE OPTIONS
LOYALTY PROGRAMS NONE REWARDS SYSTEM
IN-FLIGHT MEALS AND
SNACKS EXCLUDED INCLUDED
CONNECTING FLIGHTS, LOW BAGGAGE
EXTRA SERVICES ALLOWANCE ETC ALL INCLUDED

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BRAND - AIR INDIA

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 SEGMENTATION
Segmentation on the basis of income level is done as:

• Segment 1 - Low Income: They cater to the major chunk of the market and have
accessibility to media in the form of newspapers, radio, television. They can be attracted
through low fares on advance booking etc.
• Segment 2 - Middle Income: This customer segment in the country has been growing for a
while, they have accessibility to media forms of newspapers, radio, TV, online ads, e-mails
and mobile ads. The key to attract them is providing good customer service and in-flight
crew service apart from low fares.
• Segment 3 - High Income: This segment is also growing in the country with access to
media forms similar to that of media accessible to middle income segment. These
customers can be attracted by good customer service, in-flight service and frequent flyer
miles.

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 DEMOGRAPHIC
SEGMENTATION
Based on income, the services can be categorized as:

• Business Class/First Class: Air India's 18 seat

business class and 12 seat first class service is
synonymous to luxury. It provides television,
emails, online ads, etc. In-flight service and
frequent flyer miles are major attractions for the
high-income population.

• Economy Class: There are 238 economy seats in

Air India flights. These offer low fares for
booking in advance and decent in-flight service.
Middle-income population hence prefer to fly in
economy class. The low fares also allow low-
income group to prefer these flights in case of
emergencies.

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 GEOGRAPHIC
SEGMENTATION
International Market

Over 70 international and 100 domestic destinations Domestic Market

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 TARGETING
• The brand uses undifferentiated targeting strategy, due to which it is losing potential
customers

• It basically caters to the corporate, and upper middle-class travelers.

• Competitors follow a multi-segment targeting strategy:

• Segment 1-Low Income: Low Fares, Economy Class Travel, Low Baggage Allowance
• Segment 2-Middle Income: Low/Medium Fares, Economy Class Travel, Window/Aisle
Seating Options, Medium Baggage Allowance
• Segment 3-High Income: High Fares, Business Class Travel, In-flight meals included

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 POSITIONING
“Next time fly with Air India and feel the difference”-Tagline of Air India

• Air India offers premium airline travel service for a long-distance travel to other global destinations within
very short span of time (PoP). They position themselves as the best-in-class airline in international market
that provides best on-flight experience with on-time travel and low cost of the ticket (PoD).

• Domestically, it positions itself as a Full-Service Carrier(FSC) to customers who do not care about the
marginal change in the ticket prices, viz. “slightly above Low-cost carriers(LCC) but not too high that
people get turned off”, according to Rajiv Bansal, CMD, AirIndia.

• A brief video will show you how they position themselves.

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 CURRENT BRANDING
STRATEGIES
• Fly the change (New motto)

• Using secondary brand association-star

alliance member(Alliance members come
together to offer smooth connections across a
vast global network)

• #TrueTravelPartner (Covid times)

• No brand Ambassador, only their 75 years

old mascot-MAHARAJA.

FUN FACT:
Maharaja- the mascot was designed in 1946 and is one of the oldest mascots in the world.
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 FINANCIALS & CURRENT
MARKET SITUATION
• Air India Disinvestment has been a topic of
discussion since more than 2 decades

• Earlier it was decided to not completely let

go of the airlines, but now, the GoI has
decided to go for 100% disinvestment

• The debt of Air India, as of March 31, 2019,

was Rs 58,255 crores

• It holds a market share of 11% in the

domestic market

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 AIR INDIA
MAJOR PROBLEMS
• High per flight expenditure is an impediment for many people who want to travel economically and within their
budget.

• Most airline companies do not own their own aircraft carriers; they get them on lease. Therefore, they have low
working capital. Air India, on the other hand, has fully owned 172 aircrafts.

• AIR INDIA is a full-service carrier, whereas some of its top competitors(e.g., Indigo) are low-cost carriers; i.e.,
they are competing in the wrong segment.

• Poor Top-level Management

• Excessive Staff: 16000 total employee count; 9600 permanent, rest contractual. 36% of the employees are going
to retire by 2025. (Can’t lay off!)

• Undue advantage taken by the government to provide travel to its employees with no/ little reimbursement of
flight fares to Air India.

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 THE
ARCH-RIVAL
• Indigo airline’s low cost and no-frills approach to
domestic flying had been cited as one of the
factors leading to its relative success in India.

• According to the Directorate-General of Civil

Aviation, IndiGo airline carried over 43 million
passengers during the fiscal year 2017.

• It was first among the country’s most punctual

airlines with over 89 percent on-time
arrivals(Air India’s OTA rate was 71.9
• %). As a carrier that also had the least complaints
from the customer,

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 BRAND
EXPLORATORY
We have conducted the qualitative and quantitative research techniques to get a clear picture about the brand
of Air India.

PROCESS FOLLOWED:

1 2 3

User Personas Qualitative Research study Quantitative Research study

Had a personal one on Conducted a research
Categorised one interview with the study using survey to get
different user user personas to get an a definitive assessment
personas that accurate interpretation of brand associations.
satisfy the target
group

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 BRAND
EXPLORATORY
User Personas: On the basis of target consumers we divided consumer into following user
personas.

● Daya is a 23 year old student ● Jethalal is a 45 year old ● Sundar is a 32 year old travel
● She travels to and fro from her Businessman photographer
home to her college every 3 ● He travels frequently via aeroplane ● He travels occasionally for his
months via aeroplane for business purposes work and leisure purposes
● Her annual income is less than 3 ● His annual income is greater than ● His annual income is in between
lakhs 20 lakhs 10 - 20 lakhs
 BRAND
EXPLORATORY
Qualitative Research study: The summary of the reportings are:

● She prefers to travel in LCC which ● He travels mostly in FSC and has ● He does not have preference of
offers the core benefit of travel brand consciousness. FSC or LCC.
● She doesn’t care about the row ● Particular about the seating and ● Particular about the seating in
number or the preference of seat chooses business/ first class over terms of row number. Also prefers
● Travels only in economy class economy window seat over aisle
● Likes to travel in AirIndia, Goair, ● Prefers quality Inflight services ● Travels mostly in economy class
Indigo, Spicejet and entertainment though has travelled in business
● Likes to travel in Airindia, Etihad, class
Lufthansa ● Likes to travel in AirIndia, Vistara,
Spicejet
 BRAND
EXPLORATORY
Qualitative Research study: We have conducted an extensive survey to gauge what people prefer in
an airline and their views about Air India.

7.1%
1.8%

Annual Income of
respondents The airline brands that respondents travelled in
 BRAND
EXPLORATORY
Qualitative Research study: We have asked the respondents what they look for in the airline brands. The
following are the factors provided by airlines which influence their brand:

• Discounts & offers

• Direct flights
• Flight seat upgradation (when available)
• Good cancellation policy and low cancellation fee
• Punctuality
• Good booking website portal / app

There are also other factors which influence the brand of an airlines such as Offering inflight meal, well trained
staff and hospitality, comfort and luxury etc.
 BRAND
EXPLORATORY
Qualitative Research study: The AirIndia brand personality has been captured and compared with respondent’s idea of an
ideal airline brand personality. The below picture shows that Air India lags on Excitement, Competence and Sophistication.

Sincerity Sincerity
Low High Low High

Excitement Excitement
Low High Low High

Competence Competence
Low High Low High

Sophistication Sophistication
Low High Low High

Ruggedness High Ruggedness High

Low Low

Ideal Airline Brand Personality Air India Brand Personality

Qualitative Research study: The
core brand association mental map
of AirIndia is prepared using SEM
modelling.

The following figure shows that

Air India resonates the values
positively, negatively and also
does not resonate.
 BRAND
ASSOCIATIONS
Strong Brand associations: Favorable Brand associations: Unique Brand associations:
● High Quality ● Sense of Nationalism ● Free Appetizers/ Meals
● Dynamic ● Trustworthy ● Sufficient baggage allowance
● Good Service

Weak Brand associations: Negative Brand associations:

● Wide flight Network ● Affordable
(Sufficient flights) ● Status
● Discounts & Offers ● Comfortable
(Royalty/ Frequent flyer ● Trendy/ Catchy
points) advertisements
 FUNCTIONAL
REBRANDING PLAN
Vision:
To be successful, lead the Indian Aviation and be the India’s Ambassador to the world
Mission:
• Provide affordable, safe, reliable, on-time services
• Provide highest quality of service
• Be an epitome of Indian hospitality and status
• Continuously improve the standards of safety, efficiency and comfort
Values:

• A commitment to high quality customer service

• Clear and open communication to ensure the best results
• Efficient service and high quality products
• Innovative thinking
 FUNCTIONAL
REBRANDING PLAN
Changes Proposed across domains:
Management: Financial: Functional:
• Acquiring new talent • Focus on losing debt • Investing in Air India
Express as a Low Cost
• Having Star Alliance on • Saying no to government Carrier
board to leverage its freeloaders
experience& expertise • Re-Launching it as a
• Lease out few in demand Flanker Brand to protect
• Having independent aircrafts to other players, the main player.
board of directors who for additional source of
behave in a way has more income
autonomous/ less
government interference
 FUNCTIONAL
Having a holistic strategy:
REBRANDING PLAN
Rebranding must not be about the new logo or website, but about the entire look and feel of the brand
that Air India reflects to the world.

There needs to be a consistent and cohesive strategy in place which spans all elements (logo,
packaging, signage, flyers, ads, etc.) and channels of your brand (digital, social, brick-and-mortar
presence, etc.)

Analysing the current brand logo and reenvisioning it: According to the survey, the current logo
of Air India is lacking excitement, is stagnant, outdated & old fashioned and needs updation with a
modern touch of dynamism, catchy and must be age appropriate while retaining its original values.
 ANALYSIS OF
THE NEW LOGO
Points of similarity:
As the market for Air India has stayed the same (more or less) refreshing of logo makes sense
rather than the completely changing it. The logo is a red coloured flying swan with the 'Konark
Chakra' in orange. The flying swan has been morphed into a phoenix which is taken from Air
India's characteristic logo, 'The Centaur', whereas the 'Konark Chakra' is reminiscent of
Indian's logo

Points of difference:
- The red color meaning is associated with excitement, passion, energy, and action.
- The mythical significance of the phoenix is connected with the rebirth and eternal life. The
symbol fits perfectly for Air India as we are going for rebranding it.
 FUNCTIONAL
REBRANDING PLAN
Analyse market and competition: Based on the current domestic market, the AirIndia using its
flanker brand needs to target LCC customers who choose economic travel. Along with this the current
customers must be catered by the Parent brand of AirIndia.

Open Communication channels: Having an open communication channels to communicate the

rebranding of Air India and what it represents.

The Above the line marketing through the channels of communciations including but not limited to
television, radion newspapers to target the general and mass audience to create brand awareness.

Through the line marketing through social media to garner the support for rebranding and also to get
the vibe of the audience and also to get an awareness of the target market.
 SOCIAL MEDIA
CAMPAIGNS
• Choosing Brand ambassadors: Cinestars and influencers who resonate the same traits which
Air India wants to put forth i.e. Exciting, Attractiveness etc., like Shah Rukh Khan.
• Develop marketing Persona: Create multiple marketing personas and assign the social media
networks that match. Create content to match the personas. For example, Trendy and hip content
for gen-z audience twitter, snapchat & instagram, whitepapers and analysis based content for
more aged and qualified audience on linkedin more video based content for millenials and gen-x
audience via facebook and youtube.
• Partnering up with sports teams(eg:hockey,) or social causes like Rally for rivers and promoting
each other. Sponsoring events, which take place online and hackathons.
• Measuring the impact of your branding efforts: The impacts can be seen through
engagement, mentions and shares etc., To measure we can also use regular surveys of audience
to understand them.
 SOCIAL MEDIA
Advertising/Marketing Tactics:
CAMPAIGNS
• Moment marketing: To capture the ongoing
events and take advantage of it. For
example, during 2016 US elections, Jet Blue
launched a Reach across the Aisle campaign.
• Creating vlogs/ review videos over various
social media titled Vlogging with Maharaj to
showcase how the Air-India lets you travel
like a maharaj and the hospitality of the
crew.
• Introducing new social media campaigns for
social awareness and donations via #hashtag
campaigns like #whatsyourname campaign,
#AnAirlinethat.. to show that Air-India has a
softer and more socially responsible side to
it.
Thank you