Marketing Mix of Air India and 7Ps (Updated 2024)

The Marketing mix of Air India analyses the 7Ps of Air India, which includes the Product, Price, Place, Promotion, People, Physical Evidence, and Process of Air India. Air India is India’s flag carrier airline, headquartered in New Delhi. J.R.D founded it. Tata in 1932 as Tata Airlines, making it one of Asia’s oldest and most prestigious airlines. The airline became a public limited company and was renamed Air India in 1946, following the end of World War II. India’s only national carrier airline operates a fleet serving destinations worldwide, connecting India with continents such as Asia, Europe, North America, and Australia.

Air India is known for its distinctive logo, which features a flying swan with the wheel of the Konark sun temple painted on its tail. It joined the Star Alliance, the world’s largest global airline alliance, in 2014, further extending its reach to numerous destinations worldwide through codeshare agreements with other member airlines. Air India is crucial in connecting India with the rest of the world, promoting trade, tourism, and cultural exchanges.

About Air India

• Type: Public limited company
• Industry: Airline
• Founded: 15 August 1932
• Founder: J. R. D. Tata
• Headquarters: New Delhi, India
• Area served: Worldwide
• Key people: N. Chandrasekaran (Chairman) and Campbell Wilson (CEO)
• Number of employees: 16,000

Air India Product Strategy

At one time, Air India had two products—passenger and cargo transport. However, Air India’s cargo transport was decommissioned in 2012, and the airline only operates through passengers. Air India uses a fleet of Boeing and Airbus planes for passenger transport services only. The flight, along with inflight entertainment and its premium lounges, are some of the leading products of Air India.

The new Product Mix of Air India in 2024 is as follows (Source).

1. Flight Services: Air India offers various flight services, including domestic and international flights. The airline operates a vast network connecting major cities across India and international destinations in North America, Europe, Asia, Australia, and the Middle East.
2. Cabin Classes: The airline provides multiple cabin classes to suit different budgets and preferences Economy Class: Designed for budget travelers, offering basic amenities; Business Class: Catering to business travelers and those looking for premium services with extra comfort and privileges; First Class: The most luxurious offering, with spacious seating, gourmet meals, and exclusive service.
3. Frequent Flyer Program: Air India’s frequent flyer program, “Flying Returns,” rewards loyal customers with miles that can be redeemed for flights, upgrades, and other benefits.
4. In-Flight Services: These include in-flight entertainment options such as movies, music, and games, a range of meal options catering to different dietary preferences, and in-flight shopping.
5. Additional Services: Cargo Services: Air India also offers cargo transport services, handling various goods, including perishables, pharmaceuticals, and valuables; Charter Services: The airline provides charter flight services for passengers seeking customized travel solutions; Ground Services: These encompass a range of services including check-in, baggage handling, and lounge access for premium passengers.
6. Partnerships and Alliances: Air India is a part of the global airline alliance Star Alliance, which allows it to offer its customers a more comprehensive network of destinations, smoother connectivity, and shared benefits across member airlines.
7. Digital Services: Air India provides online booking, mobile check-in, and other digital services for convenience and to enhance customer experience.
8. Customer Support Services: The airline offers customer support through various channels, including a customer service hotline, email support, and social media platforms, to assist with inquiries, bookings, and post-flight services.

Air India Place Strategy

Nowadays, all airline tickets are booked through online portals, so that place in Air India does not matter much. Most online retail sites like yatra.com, makemytrip, and Expedia have Air India Airlines listed on their portal, and this is where people can buy Air India tickets.

1. Extensive Domestic and International Network: Air India strategically operates flights connecting major cities across India and extends its reach to key international destinations in North America, Europe, Asia, Australia, and the Middle East, catering to both business and leisure travelers.
2. Hub-and-Spoke Model: The airline utilizes a hub-and-spoke model centered around major Indian airports, such as Indira Gandhi International Airport in New Delhi and Chhatrapati Shivaji Maharaj International Airport in Mumbai, to efficiently manage passenger flow and facilitate easy connections to various domestic and international flights.
3. Star Alliance Membership: As a member of the Star Alliance, Air India expands its place strategy by offering customers access to a global network of destinations, enabling seamless international travel and providing a broader range of flight schedules.
4. Focus on Strategic International Gateways: Air India focuses on operating flights to and from strategic international gateways, enhancing India’s connectivity with the world and supporting the country’s position as a growing aviation hub.
5. Digital Presence for Global Reach: The airline leverages its digital platforms, including its website and mobile app, to offer easy access to flight bookings, check-ins, and customer service, thus making its services accessible to a global customer base regardless of their geographic location.

Air India Pricing Strategy

Air India has different prices based on the route of direct flights, Air traffic, the distance, and finally, the number of halts on the way. At the same time, within a flight, two kinds of pricing exist – Economy class and Business class. The pricing of Air India is competitive as none of the airline operators can nowadays exist without keeping competition in mind. Also, travel via Air India is not renowned, so the airline cannot demand premium pricing.

Air India’s pricing strategy is crafted with a nuanced understanding of the competitive landscape, market demands, and consumer behavior, ensuring that it remains competitive and appealing to a diverse customer base. This strategy is pivotal in balancing revenue generation and operating costs with customer satisfaction, reflecting the airline’s position in the global aviation market.

1. Dynamic Pricing Model: Air India employs a dynamic pricing model that adjusts fares in real-time based on demand, competition, and booking patterns. This flexibility allows the airline to maximize revenue on popular routes and periods while offering competitive prices to attract price-sensitive customers during off-peak times.
2. Segmented Pricing for Diverse Customer Segments: Recognizing the varied needs and preferences of its passengers, Air India offers differentiated pricing across different cabin classes—Economy, Business, and First Class. This segmentation strategy caters to varying levels of affordability and comfort and targets specific market segments, from budget travelers to luxury seekers.
3. Promotional Offers and Discounts: To stimulate demand and reward loyalty, Air India frequently introduces promotional offers, discounts, and deals, particularly during festive seasons, holidays, and off-peak periods. These initiatives aim to increase occupancy rates, encourage early bookings, and retain customers within the Air India ecosystem.
4. Frequent Flyer Program Benefits: Through its “Flying Returns” program, Air India incentivizes frequent travelers with benefits such as miles accumulation, which can be redeemed for flights, upgrades, and other services. This strategy fosters customer loyalty and encourages repeat business by offering value beyond the ticket price.
5. Competitive and Strategic Pricing in Key Markets: Air India strategically prices its services to be competitive in key markets, especially on routes with stiff competition from other carriers. The airline conducts thorough market analysis to ensure its offerings are attractively priced without compromising on service quality or the overall value proposition.
6. Ancillary Revenue Generation: Beyond ticket sales, Air India focuses on ancillary revenue streams, such as baggage fees, seat selection charges, in-flight meals, and other add-on services. This approach allows for competitive base fares while allowing passengers to customize their travel experience according to their needs and preferences.

Air India’s pricing strategy is a testament to its adaptability and customer-centric approach, aiming to take market share and strike a delicate balance between affordability, value, and profitability in the highly competitive aviation industry.

Air India Promotion Strategy

Point of purchases, i.e., ticketing counters at traveling and other ticket booking agencies, online options (E.g., Membership promotions, couple tickets, Tourist packages for agencies, and various other individual and corporate offers). The fact that Air India is an Indian government-operated airline in itself creates brand equity for the airline. Besides this, regular banners and outdoor promotions are carried out by Air India. Finally, the airline offers various trade discounts and tie-ups to promote its business via the B2B channel.

Some Recent Video ads and Print ads for Air India are:

Air India People Strategy

Air India has a team of skilled & professionally trained pilots, ground staff, flight attendants, freight movers and packers, security personnel, management decision-makers, and most importantly, customers.

The “People” element in the service marketing mix is critically important, especially for a service-oriented business like an airline. In the case and brand image of Air India, “People” encompasses all human actors who directly or indirectly influence the perception of the airline’s services. This includes:

1. Cabin Crew: The cabin crew is the face of the airline during flights. Their professionalism, service quality, behavior, and appearance significantly impact customer experience and perception.
2. Pilots: The skill, professionalism, and demeanor of pilots who play a crucial role in ensuring safety and influencing customer trust and confidence in the airline.
3. Ground Staff: This includes check-in and boarding staff, baggage handlers, and other employees interacting with airport customers. Their efficiency, courtesy, and ability to handle customer issues affect the overall service experience.
4. Customer Service Representatives: Staff handling customer inquiries, complaints, and feedback, whether via phone, email, or in-person. Their responsiveness, problem-solving, and communication skills are key to customer satisfaction and loyalty.
5. Maintenance and Technical Staff: Although they do not interact directly with customers, the quality of their work ensures the safety, reliability, and readiness of aircraft, which is fundamental to the airline’s operations.
6. Management and Leadership Team: The strategic decisions, vision, and leadership of the management team drive the overall performance, service standards, and company culture.
7. Training and Development Staff: The quality of training provided to all staff members, particularly those in customer-facing roles, is crucial in maintaining high service standards.
8. Human Resources: Responsible for recruiting, training, and retaining employees who are capable, motivated, and aligned with Air India’s service standards and values.

In the service marketing mix for Air India, the people component is essential because employees at every level represent the airline and contribute to the overall customer experience. Their skills, attitudes, and behaviors directly affect customer perceptions of the airline industry and the quality of service delivery.

Air India Process Strategy 

To avail of the air service, there is an online or manual booking of tickets followed by confirmation at security desks on arrival at the airport at least two hrs. before the scheduled commencement of the journey. After boarding the aircraft, basic after-sales services are provided to those who avail of the services. Besides arranging for passenger transport services for travel post landing to the convenient destination, making arrangements if flights are delayed or rescheduled, etc., are some of the airline’s value additions to improve customer satisfaction.

In the service marketing mix context, the “Process” element refers to the procedures, mechanisms, and flow of activities a service delivers. This includes the customer’s experience from start to finish. For Air India, the process aspect of promotional strategy would encompass several key areas:

1. Booking and Ticketing: This includes the ease and accessibility of booking flights, whether through Air India’s website, mobile app, travel agencies, or other platforms. It involves a customer’s finding, selecting, and paying for a flight.
2. Check-in Procedures: The efficiency and convenience of Air India’s check-in processes, both online and at the airport. This includes baggage handling, seat selection, and issuance of boarding passes.
3. Boarding Process: The procedure for boarding flights, including any priority boarding for frequent flyers, business class, or passengers with special needs. It involves managing queues and boarding groups and ensuring a smooth and timely boarding experience.
4. In-Flight Services: The processes related to in-flight services such as meal service, entertainment options, assistance from cabin crew, and handling of any in-flight requests or issues.
5. Safety and Security Procedures: Procedures for ensuring passenger safety and security, including pre-flight safety demonstrations, security checks, and emergency protocols.
6. Customer Service and Support: The process of handling customer queries, complaints, and feedback, both online and offline. This includes call centers, help desks at airports and the responsiveness and effectiveness of customer service representatives.
7. Baggage Handling: The efficiency and reliability of baggage handling, including check-in, transfer to the aircraft, and collection upon arrival.
8. Flight Operations: This involves the punctuality and efficiency of flight operations, including timely departures and arrivals, handling of delays or cancellations, and communication with passengers.
9. Loyalty Programs and Frequent Flyer Benefits: The processes involved in managing loyalty programs, including enrollment, earning and redeeming points, and providing benefits to frequent flyers.
10. Post-Flight Services: This includes handling lost baggage, post-flight customer service, and any follow-up required.

In summary, Air India’s service marketing strategy mix process is about managing each step and interaction in the service delivery, aiming to provide a seamless, efficient, and customer-friendly experience from start to finish.

Air India Physical Evidence Strategy

All Air India planes are spacious and excellent in their service. Their premium lounges, too, are very, very comfortable. Hence, many people like to travel from Air India itself.

For leading airlines such as Air India, the physical evidence component of the service marketing mix plays a crucial role in shaping customer perceptions and experiences. Physical evidence for an airline like Air India includes several key elements:

1. Aircraft Appearance and Cleanliness: The exterior and interior conditions of the aircraft, including cleanliness, maintenance, and branding elements, play a significant role in shaping passengers’ impressions.
2. Airport Counters and Lounges: The design, layout, and facilities of Air India’s airport counters and lounges, including signage, seating, and amenities, contribute to the overall customer experience.
3. In-Flight Amenities: This includes the quality and condition of seats, in-flight entertainment systems, reading materials, and other amenities provided to passengers during their flight.
4. Uniforms of Staff: The appearance of the cabin crew and ground staff, including their uniforms and grooming, reflects the airline’s image and standards.
5. Boarding Passes and Other Materials: The design and quality of boarding passes, luggage tags, and other materials that passengers receive.
6. Website and Mobile App: The functionality, design, and user experience of Air India’s online platforms, where customers book flights, check in, and access information.
7. Catering and Meal Presentation: The quality, presentation, and variety of meals and beverages served on board.
8. Cleanliness and Maintenance of Facilities: This includes the cleanliness of the aircraft, lounges, and any area under the airline’s control, reflecting attention to detail and care for passenger comfort.
9. Safety Procedures and Equipment: Visible safety measures and equipment, such as life vests, safety cards, and oxygen masks, contribute to passengers’ sense of security.
10. Branding Elements: The use of colors, logos, and other branding elements across various touchpoints, reinforcing brand identity.

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