CASE STUDY ANALYSIS- AIR DECCAN-by SDB

CASE STUDY ANALYSISair deccan-the first low cost carrier of india—year 2006 : 

CASE STUDY ANALYSISair deccan-the first low cost carrier of india—year 2006 SUBMITTED BY: SHUBHADIP BISWAS

OPPORTUNITY ANALYSISMARKET ATTRACTIVENESS MACRO and MICRO LEVEL : 

OPPORTUNITY ANALYSISMARKET ATTRACTIVENESS MACRO and MICRO LEVEL MACRO LEVEL Repealing restrictive air corporation act & liberalization of air customer Escalating disposable income of bargaining middle class Indian customer-values his money Growing GDP of India Change in technology-underground fiber optic and networking via hubs MICRO LEVEL Need of affordable air fare for Indian traveler-which Air Deccan is offering Getting 5% of 15 million long distance traveler would be great achieve-targeting AC1,AC2 tier travelers People of smaller town have the capacity but not have choice

OPPORTUNITY ANALYSISINDUSTRY DOMAINSMACRO LEVEL and MICRO LEVEL : 

OPPORTUNITY ANALYSISINDUSTRY DOMAINSMACRO LEVEL and MICRO LEVEL MACRO LEVEL New entrants- Spicejet, Kingfisher, Indigo Substitutes-traveling in AC1,AC2 tier Rivalry-presence of big players- AirIndia, Jet, Sahara—better brand image and luxurious travel and new players—lowest airfare with highest consumer value Bargaining power of buyer-lower air price Bargaining power of suppliers- low; manufacture of aircrafts- Avions de transport MICRO LEVEL Cost leadership Wide network coverage-38 destinations Fast movers advantage and implementation of “Dyna fare” Tie up with HCL-convenient network through E-ticketing Ticket distribution structure-HP outlets, Reliance web world Image-”people’s airlines” Team of experts from the world’s best low cost carriers.

OPPORTUNITY ANALYSISTEAM DOMAINS : 

OPPORTUNITY ANALYSISTEAM DOMAINS

Slide 5: 

SEGMENTATION Demographic—common people of India— who does fly? Who can fly? Geographic- market of India specially smaller towns TARGETING Rising middle class—targeting LCC market POSITIONING Cost leadership strategy-niche marketing strategy & growth marketing strategy As a “people’s airlines” How is air deccan able to create value for its customers? By cost leadership-offering lowest air fare— “Dyna fare” Prospector-expanding in new market Image as “people’s airlines”—movie "old man in de sky” Brand ambassador-Mr. citizen Unreserved seating . encouraging customer to board easily and quickly Wide network coverage—connectivity Convenience-convenient network of ticket distribution Air Deccan Gold Card- travel agent card What are possible challenges that Air Deccan fears? Threat of new entrants—kingfisher, Spicejet, Indigo Lack of government support Weak economical condition of company-Looming price war waged by big operators Total market share in air service sector was only-17% Lack of brand awareness Need of investment-future scenario after IPO STP ANALYSIS