Marketing Mix of Indigo Airlines and 7Ps (Updated 2024)

The Marketing mix of Indigo Airlines analyses the 7Ps of Indigo Airlines, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Indigo Airlines. Set up in 2006, Indigo Airlines is one of the cheapest domestic airlines in India, which InterGlobe Enterprises and Mr. Rakesh Gangwal own. In Indigo Airlines’ marketing mix, price plays a crucial role, which we will discuss further.

Indigo Airlines is considered one of the best airlines that offer professional services at economical and cheap prices. Starting its services with six aircraft on the 4th of August 2006, IndiGo now has 78 of them. It adds a new plane every 45 days and sometimes even faster. Within no time, IndiGo has dethroned Kingfisher and stood as the second largest player in the aviation industry after Jet Airways. In 2013, the Centre for Asia Pacific Aviation announced that IndiGo is the continent’s second and fastest-growing airline service.

It is important to note that the airline operates in all major cities in India. One of its significant competitive advantages is that the air tickets can be booked online, and the customer services are amiable simultaneously.

About Indigo Airlines

• Type: Airline
• Industry: Aviation
• Founded: August 2006
• Founders: Rahul Bhatia, Rakesh Gangwal
• Headquarters: Gurugram, India
• Area served: India, Bangladesh, Sri Lanka, UAE, Thailand, Malaysia, Singapore, Nepal, Bhutan.
• Key people: Pieter Elbers – Chief Executive Officer, and Aditya Ghosh – Chief Operating Officer
• Number of employees: Over 24,000+ Worldwide

Indigo Airlines Product Strategy

The core product of Indigo Airlines is, of course, Air travel. The traveling is mostly for passengers, but Indigo Airlines’ cargo line is also growing fast. Indigo Airlines, the country’s largest low-cost carrier, offers one of the best airline services in the country. Indigo has created profit for the past three years, whereas its competition has been making losses. This has been mainly because the airline increased its capacity and efficiency in its services while containing costs. New flights have been introduced to get more passengers, reduce costs, and increase capacity.

The new Product Mix of Indigo Airlines in 2024 is as follows (Source).

1. Passenger Air Travel: IndiGo’s primary service provides affordable and timely domestic and international air travel. They maintain frequent flights on key routes to enhance customer convenience.
2. Cargo Services: IndiGo offers cargo transportation services, leveraging the cargo space in its passenger flights to transport goods across its flight network.
3. Charter Services: To cater to the bespoke needs of groups and individuals, IndiGo provides charter flight services, offering personalized travel experiences.
4. Add-on Services: These include priority check-in, extra baggage allowance, seat selection, onboard meals, and travel insurance, allowing passengers to customize their travel experience.
5. 6E Rewards Program: IndiGo has a loyalty program known as 6E Rewards, where passengers can earn points on flights and other services, which can be redeemed for various benefits and discounts.
6. IndiGo Promise: A unique service offering that protects passengers against flight delays, cancellations, and lost baggage, enhancing customer confidence and satisfaction.
7. Digital Services: IndiGo provides a robust online platform and mobile app for convenient booking, check-in, flight status updates, and customer support, emphasizing ease and efficiency in travel planning.

Indigo Airlines Pricing Strategy

IndiGo Airlines’ pricing strategy is a masterful blend of market responsiveness, customer-centric segmentation, and value-driven propositions, tailored to maintain its position as a market leader and a leading low-cost carrier:

1. Competitive Base Fares: IndiGo’s core strategy is offering competitively low base fares, attracting a wide range of customers, from budget-conscious travelers to business professionals seeking cost-effective options.
2. Dynamic Pricing Model: Employing a dynamic pricing algorithm, IndiGo adjusts ticket prices based on demand, seasonality, and booking timelines. Early bookings are incentivized with lower prices, while last-minute fares capture the premium willingness-to-pay of urgent travelers.
3. Ancillary Revenue Streams: IndiGo cleverly supplements its income through ancillary services like seat selection, extra baggage, meals, and priority check-in. These optional services allow for personalized travel experiences and higher revenue per passenger.
4. Bundled Packages: Offering bundled packages (like ‘6E Prime’ or ‘Flexi Plus’) that include a combination of add-on services at a discounted rate, IndiGo appeals to customers seeking value-added convenience.
5. Loyalty Programs: The 6E Rewards program encourages repeat business by offering points based on spending, redeemable for discounts on future flights and services. This fosters customer loyalty and long-term engagement.
6. Promotional and Seasonal Discounts: IndiGo frequently runs promotional campaigns and seasonal discounts, targeting specific customer segments and filling capacity during off-peak periods, thus optimizing load factors.

Indigo Airlines Place Strategy

Customers who want to book tickets can do so online or through various government agencies. The airline is trying to reduce the headache one has to go through to get a ticket, so it has made online tickets available. The airline’s destinations can be found throughout the country’s major cities. There are about 29 current Indigo destinations, but expansion is ongoing. While that is the case, the airline has maintained its core strategies. The core strategies include keeping the airline’s most affordable in India and keeping flying a pleasant experience.

Here’s its target place strategy.

1. Extensive Domestic Network: IndiGo strategically covers a wide range of domestic destinations across India, ensuring connectivity even to smaller cities, thus catering to a broad customer base and tapping into various regional markets.
2. International Expansion: IndiGo has been progressively expanding its international footprint, connecting major Indian cities to vital global destinations in Asia, the Middle East, and Europe, catering to business and leisure travelers.
3. Strategic Hub Locations: Key airports in major cities like Delhi, Mumbai, Bangalore, and Kolkata serve as primary hubs, facilitating efficient transit and connectivity for domestic and international flights.
4. Partnerships and Codeshare Agreements: IndiGo has formed strategic partnerships and codeshare agreements with various international airlines to extend its reach beyond its direct routes, offering passengers a more comprehensive network of destinations.
5. Online and Mobile Presence: A robust digital presence with an easy-to-use website and mobile app allows customers from all over the world to conveniently book flights, check schedules, and manage their travel, thereby enhancing the accessibility of their services.

Indigo Airlines Promotion Strategy

No airline has worked harder at capturing market share in the local market better than IndiGo Airlines. The airline relies on its cost and availability to promote its brand globally. These investments in advertisements are low because they affect the cost. However, Indigo did come out with a few TVCs and did good advertising online. The airline has adopted a strategy of connecting flights to other destinations from one destination such that customers will not have to book another airline to arrive at their destination. For instance, it has connected four flights from Ranchi to Delhi, Mumbai, Patna, and Bangalore; plans are underway to add Kolkata and Raipur.

Although not a direct marketing strategy, this strategy has seen it gain a customer base because customers would want to cut costs by using just one aircraft to reach their destination. Other promotion digital marketing methods used by Indigo Aircraft include media vehicles like billboards, print media advertising, and advertising on travel portals.

Some Recent Video ads and Print ads for IndiGo Airlines are:

Indigo Airlines People Strategy

The “People” component encompasses all human actors who play a part in the service delivery process, including employees and customers. This aspect is particularly crucial for Indigo Airlines, a leading budget carrier in India, as it directly impacts customer perceptions, loyalty, and the overall brand image. Here are several points about the “People” aspect of Indigo Airlines:

1. Customer-centric Staff Training: Indigo Airlines invests in extensive training programs for its staff, emphasizing customer service, problem-solving, and effective communication. This ensures that all personnel, from flight attendants to ground staff, are well-equipped to handle customer needs and maintain high service standards.
2. Professional and Friendly Cabin Crew: The airline is known for its professional, courteous, and friendly cabin crew, who play a significant role in enhancing the in-flight experience for passengers. Their approachability and attentiveness contribute to the overall positive perception of the airline.
3. Efficient Ground Staff: Indigo’s ground staff are trained to be efficient and helpful, managing check-ins, baggage handling, and customer queries smoothly. Their effectiveness is crucial in minimizing delays and ensuring a hassle-free process for passengers from check-in to boarding.
4. Pilot Expertise and Training: Indigo Airlines highly emphasizes its pilots’ expertise and continuous training to ensure safety, reliability, and confidence among passengers. The airline’s commitment to safety standards is key to its brand image.
5. Employee Satisfaction and Welfare: Recognizing the link between employee satisfaction and customer service, Indigo Airlines focuses on employee welfare, offering competitive salaries, benefits, and opportunities for career advancement. A motivated workforce contributes positively to the service experience.
6. Uniforms Reflecting Brand Identity: The uniforms of Indigo Airlines’ staff are designed to be both functional and representative of the airline’s brand identity. They contribute to the professional appearance of the staff and are an integral part of the visual brand experience.
7. Responsive Customer Service Team: Indigo’s customer service team, including those handling social media and call centers, is trained to be responsive and empathetic, addressing customer complaints and queries promptly. This responsiveness is key to maintaining customer trust and loyalty.
8. Cultural Diversity and Inclusion: The airline values diversity and inclusion, employing staff from diverse backgrounds. This diversity enriches the service experience and enables the airline to cater effectively to a broad domestic and international customer base.
9. Continuous Feedback and Improvement: Indigo Airlines has mechanisms for collecting and analyzing customer feedback, which is used to train and improve its staff continuously. This feedback loop ensures that the service remains customer-focused and evolves with changing customer expectations.
10. Leadership and Vision: The leadership at Indigo Airlines, from top management to team leaders, sets a clear vision for service excellence, driving a customer-centric culture throughout the organization. The leadership’s commitment to service quality is critical to the airline’s success.

Indigo Airlines Process Strategy

The “Process” component of the service marketing mix for Indigo Airlines focuses on the actual procedures, mechanisms, and flow of activities by which services are consumed. This is crucial for ensuring customer satisfaction, efficiency, and a smooth operation, especially in the airline industry, where timing, safety, and customer experience are paramount. Here’s how Indigo Airlines excels in the “Process” aspect:

1. Online Booking System: Indigo offers a user-friendly online booking system that allows customers to easily search for flights, compare prices, and book tickets. The system is designed for convenience, enabling passengers to manage bookings, select seats, and add extra services without hassle.
2. Check-in Procedures: Indigo Airlines provides multiple check-in options to suit different passenger needs, including web check-in, mobile app check-in, and kiosk check-in at the airport. These processes are streamlined to reduce wait times and improve the passenger experience.
3. Baggage Handling System: The airline has an efficient baggage handling process, minimizing the chances of lost or delayed baggage. This includes clear guidelines for baggage allowances, quick drop-off counters, and prompt delivery at the destination.
4. Boarding Process: Indigo’s boarding process is organized and systematic, with clear announcements and instructions to passengers. The airline uses zone-based boarding to minimize congestion and ensure a smooth boarding experience.
5. In-flight Experience: The process of delivering the in-flight experience is carefully designed, from the aircraft’s cleanliness to the cabin crew’s training in serving passengers. The focus is ensuring comfort, safety, and a pleasant journey for all passengers.
6. Safety Procedures: Indigo places a high priority on safety, with rigorous processes for aircraft maintenance, crew training, and in-flight safety measures. The airline adheres to international safety standards, ensuring peace of mind for passengers.
7. Customer Service and Support: The airline has established a responsive customer service process, including a call center, online support, and social media engagement. This ensures that passenger queries and issues are promptly addressed.
8. Feedback and Resolution Process: Indigo actively solicits feedback from passengers post-flight and has a structured process for addressing complaints and suggestions. This feedback loop helps the airline continuously improve its services.
9. Turnaround Process: The airline’s efficient turnaround process ensures that flights are ready for boarding as quickly as possible, minimizing delays and maintaining punctuality, a key brand promise of Indigo.
10. Technology Integration: Indigo utilizes advanced technology to streamline its processes, from flight operations and crew scheduling to real-time flight tracking and passenger notifications. This integration enhances operational efficiency and customer satisfaction.
11. Crisis Management: Indigo has established processes for handling crises, including adverse weather conditions, technical issues, or other emergencies. These processes ensure that the airline can quickly adapt and communicate effectively with passengers during disruptions.
12. Environmental Initiatives: The airline incorporates eco-friendly processes, such as fuel-efficient flights and waste reduction initiatives onboard, aligning with its commitment to sustainability.

Indigo Airlines Physical Evidence Strategy

The “Physical Evidence” component in Indigo Airlines’ service marketing mix encompasses all the tangible and visible elements that a customer experiences, which help to shape perceptions and provide proof of service quality. In the airline industry, physical evidence is critical in reassuring customers, creating a brand image, and differentiating the airline from its competitors. For Indigo Airlines, the following points highlight key aspects of its physical evidence:

1. Branding and Color Scheme: Indigo’s distinctive deep blue color scheme and clean branding are visible across various physical touchpoints, including aircraft livery, staff uniforms, and promotional materials. This consistent branding helps in creating a robust and recognizable identity.
2. Aircraft Fleet: The modern, well-maintained fleet of aircraft serves as a crucial piece of physical evidence. Indigo’s commitment to a single-type fleet, primarily Airbus A320 family aircraft, streamlines maintenance, training, and operations, ensuring reliability and efficiency.
3. Airport Counters and Lounges: Indigo’s check-in counters and dedicated lounges (where available) are designed to reflect the airline’s branding and ethos. They are neat, professionally managed, and equipped with brand signage, offering a comfortable waiting experience for passengers.
4. In-Flight Cleanliness and Maintenance: The cleanliness and maintenance of the cabin interiors are paramount. Indigo pays special attention to ensuring that aircraft are clean and well-kept, enhancing passenger comfort and reinforcing perceptions of high service standards.
5. Boarding Passes and Baggage Tags: Even these often-overlooked aspects are designed to be visually appealing and functional, carrying the airline’s brand colors and logo and reinforcing the brand identity at every step of the journey.
6. In-Flight Amenities: Seat covers, meal trays, and in-flight magazines are carefully branded and maintained, contributing to the overall flight experience and tangible evidence of the airline’s quality and attention to detail.
7. Digital Presence: Indigo’s website, mobile app, and digital boarding passes are part of the physical evidence in today’s digital age. Their ease of use, design, and functionality reflect the airline’s commitment to customer convenience and service excellence.
8. Uniforms of Staff: The professional attire of the flight crew, ground staff, and customer service representatives, adhering to the airline’s color scheme and branding, project a professional image and assure passengers of their competence and readiness to assist.
9. Signage and Wayfinding: At airports, clear and branded signage helps passengers navigate check-in areas, gates, and lounges, reducing confusion and enhancing the customer experience.
10. Safety and Information Cards: These cards are regulatory requirements and physical evidence elements in each seat pocket. Their design and clarity reflect the airline’s commitment to passenger safety and information dissemination.
11. Customer Testimonials and Reviews: Displayed through various channels, positive testimonials and reviews from satisfied customers are indirect physical evidence, reinforcing the airline’s reputation for quality service.
12. On-Time Performance Records: Publicly available data on flight punctuality and operational efficiency are tangible indicators of the airline’s commitment to reliability, a core aspect of its brand promise.

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