HOSPITALITY & LEADERSHIP MANAGEMENT IN AIR INDIA

ABOUT AIR INDIA

Air India Airlines was incorporated in 1923 and the founder of this renowned company is JRD Tata. Companys brand name is also reflected by its mascot, affectionately known as Maharaja (Air India Limited, n.d). It is a depiction of Indian culture and traditions. Presently, company flies in

146 destinations and continuously making effort to

increase this number.

EXTERNAL MARKET ANALYSIS OF AIR INDIA

It can be performed by using PEST analysis technique. PEST analysis is

defined as that framework, which is used by the business concern in order to

evaluate their external environment and market .

Political Factors - political factors that affect the business comprise of government regulations and licensing framework, which act as a constraint in the growth of the business. The other factors are Airlines friendly policies and Disinvestment friendly environment also affected the working of Air India.

Economic Factors - Some of the economic factors that have an impact on the functioning of the company are price competition between the airlines offering no frills, global economic downturn, operational system of the other airlines is inefficient and benefits from large infrastructural developments at all the major airports Social Factors - Lifestyle of the people is changing continuously due to

which Air India faces many problem. Air India flies only for the need
and convenience of the people not for luxury. This thought helps them to attract large number of passengers.

Technological Factors - Due to the emergence of electronic-commerce in

the market, company need to re-structure and spend heavy amount to increase their operational efficiency . Air India also developed a frequent

flyers program (FFP) that helped them to achieve loyalty from the
customers.

EXTERNAL FACTORS AFFECTING THE COMPANY

Economic factors.

Demographic factors.
Competition in the market.

External communication i.e. way of interacting with customers and public audience. The social system Development of new technology.

INTERNAL MARKET ANALYSIS OF AIR INDIA

The internal market analysis of Air India will comprise of SWOT analysis. Strengths: Reputable Brand name Modernized Convoy of airplanes Advanced Information Technology Systems Financial Support from Government Weaknesses: Lack of proper strategic direction and vision

High cost framework

Low advertisement expenditure Underutilization of capacity

Opportunities:
Good Prospects for introducing Low cost carriers
Removal of regulations

Rapid growth in Indian Aviation sector

Threats:
Price competition triggered by domestic airlines Competition from leading national and international airline companies

FACTORS CONTRIBUTING TO MARKETING FUNCTION OF AIR INDIA

Top level commitment

New Entrants

Competition
Technology Internal Organization factors

MARKETING TOOLS ADOPTED BY AIR INDIA

Advertising - There are mainly two kinds of advertising used by the

airline company i.e. informational and persuasive. Promotion The Company adopted brand association, offered promotional offers and eliminated surcharge on fuel. They also initiated a campaign known as fly with your very own.

Branding - Air India used corporate branding strategy. Air India launched
a new branding and advertisements campaign mothers love.

MARKETING TECHNIQUES
Customer loyalty programs.
Direct mail marketing.

Personal selling.
Sales promotions.

Public relations.

CONCLUSION
This research report is demonstrating the internal as well as the external market analysis of Air India. There are many factors which are beyond the control of marketers and other managers. These factors have a great influence on the working and performance of the company. Therefore, this report has explored many external factors and internal capabilities that make ups the overall marketing function of the company. In the final part of the research report, a range of marketing tools and

techniques adopted by Air India were also indentified.

REFERENCES
Flouris, T. G. and Oswald, S. L., 2006. Designing and Executing Strategy in Aviation Management. Ashgate Publishing Ltd. Graham, H., 2008. Marketing Strategy and Competitive Positioning. Pearson Education India. Schimmoeller, L. J., 2010. Success Factors of New Product Development Processes. Advances in Production Engineering & Management, 5(1), pp. 25-32. Indian Aviation Industry, Through turbulent times, FDI relaxation alone not a game changer. 2012. [Online] Available at: <http://www.icra.in/Files/ticker/Indian%20Aviation%20Industry%20(NEW) .pdf>. [Accessed on: 3 October 2012].