Spice jet is one of the lowest-cost airlines, established as an air taxi provider by modiluft in 1994, the company was acquired by Ajay Singh and re-created as a spice jet in 2004 because in early time it is known by royal airways . Headquartered of spice jet is situated in gurugram India. The airline flies 630 flights on daily basis to 64 destinations, which include 54 Indian and 15 international destinations from its hub at Hyderabad and Delhi. It is one of the largest cargo in terms of domestic as well international cargo operation. The market share of spice jet is 13.6% as the data of March 2019.
The company’s growth operations are the key differentiating factors and that enables the firm to properly manage the growing passenger widening network and volume.
Because of its excellence operational, the organization has been able to maintain constant way in-time performance, and a passenger load is more than 90% for the past 48 months. The technology and customers competencies are allowing them in industry-leading performances.
So, now we have to understand SpiceJet as a company, let’s understand the marketing mix of SpiceJet.
Marketing Mix of SpiceJet Airlines
A marketing mix consists of different factors that an organization uses to advertise its products to the consumer which ultimately influence customers to purchase those products. SpiceJet uses 4Ps (Products, Price, Promotion, Place) of the marketing mix.
Let’s have a glance at SpiceJet’s marketing mix:
1. Spicejet Product Strategy:
SpiceJet has been ranked fourth In terms of passengers carried, as the largest airline in India. SpiceJet has a total of 114 aircraft in its fleet at the end of the financial year 2020.
Their services are divided into 2 categories:
a. Economy class: The economy class targets travelers who cannot afford more prices and require standard service.
b. Spicebiz: SpiceMax provides premium services to the passengers where they can gain extra benefits like Enhance baggage allowance, added comfort, world-class lounge, priority services, and more.
Web check-in facility by Spicejet helps travelers in avoiding line queues at the airport and it also provides more facilities like veg and nonveg meals, spice lounge facility and so on.
2. Spicejet Pricing Strategy:
SpiceJet faces tough competition from opponent companies, so it has taken a competitive pricing strategy to get a plus point over its competitors. It offers both low-price tickets and decent onboard facilities to its passengers.
SpiceJet brings different schemes and offers to attract more passengers. And it also offers SpiceCash to its daily travelers which work as a bonus point that they can use for getting discounts.
3. Spicejet Promotion Strategy:
SpiceJet has a strong presence in the airline industry due to its promotional activities. It has done a lot of campaigns to promote its business.
The company has done promotion through print ads in newspapers, TV commercials, etc. It also uses social media platforms and uses outdoor channels like hoarding at airports or roadsides.
It also provides discounts on group bookings and special discounts on such tickets at Rs 99 or 999 as a part of its promotional strategy. It promotes it as like SpiceClub on its mobile app or websites.
The firm also promotes its band by sponsoring the cricket team like sunrises Hyderabad in IPL 2014. And awarded as a most reputed domestic private limited in the year of 2016.
4. Spicejet Place Strategy:
SpiceJet operates its hubs at Rajiv Gandhi International Airport (in Hyderabad) and
Indira Gandhi International Airport (in Delhi).
The airline operates 630 daily flights to its 64 destinations, including 54 Indian destinations and 15 international destinations from its hub. travelers can book online tickets from SpiceJet’s website or any other booking website.
Now we are going to see marketing mix of the company, let us look at the SpiceJet SWOT analysis
SWOT Analysis of SpiceJet
A SWOT analysis is a technique that helps to define the Strengths, Weaknesses, Opportunities, and Threats. So let’s discuss the SWOT analysis of Spicejet Airlines:
1. Strengths of SpiceJet:
• The company provides prices that are affordable and are lower than other airlines.
• SpiceJet has an easy interface website that allows bookings through its websites. This helps consumers to do check-in online.
2. Weaknesses of SpiceJet:
• Due to competition, it has a low market share.
• As compared to all airlines, the number of destinations served by SpiceJet is less.
3. Opportunities for SpiceJet:
• Growth in the new market can result in new opportunities.
• Partnership in the international market can grow its brand image.
4. Threats to SpiceJet:
• Current infrastructure facilities can be a threat.
• With new government policies can affect the brand.
Getting about the marketing mix and brief knowledge of the SWOT Analysis of SpiceJet has given us a Different idea of the company. Let’s get straight into the marketing strategy of SpiceJet.
Marketing Strategy of SpiceJet
Every brand has its marketing strategy and style Like that Spicejet is also having its marketing strategy in place. The brand’s marketing theme is to offer low ‘everyday spicy fares’ and provide great services to its passengers at an affordable price.
Its targets the premium class audience who travel by train, business people, and firm employees because its goal is to compete with Indian Railways’ AC passengers.
SpiceJet is attracting customers through its logo with catchy slogans like Red. Hot. Spicy & Flying For Everyone.
SpiceJet uses different modes for advertising, like TV, online, hoardings, print, etc. It advertises schemes, programs, and discounts through social media as well as through outdoor advertisements like banners, newspapers, etc.
Marketing Campaigns of SpiceJet
A marketing campaign is a method handled by a firm to advertise its goods and services. Here, SpiceJet has used some unique, innovative, and cool marketing campaigns on social media. So, take a glance at each marketing campaign in the coming section.
• SpiceMax Campaign – A Marketing Campaign of SpiceJet
it is one of the low-cost airlines to offer hot meals for sale onboard, this is the first airline that offers dedicated extra legroom seats in a configured cabin. There are two meals which are Hot Meals and SpiceMax that promise travelers for tasty food, and extra legroom.
• #Withallourhearts – A Marketing Campaign of SpiceJet
This campaign starts in the month of April to show support for IPL cricket team Sunrisers Hyderabad (SRH), using the hashtag #withallourheart, and ended on 24th may with the winners of the contests revealed on Facebook.
From beginning to end, the campaign was managed all of the airline’s social media accounts –Twitter, Youtube, and Twitter – all of which were advantaged by hashtag #withallourheart.
At the end of the campaign, they mentioned that they do everything #withallourheart, including delivering “hot meals, warm smiles.”
Competitors of SpiceJet
Competition is compulsory in every sector. It helps the firm to improve on their growth and weakness larger as an organization. Here, SpiceJet also has some competitors.
Here are some of the major competitors of SpiceJet:
Indigo is a low-cost airline located in Gurugram, Haryana, India. It has its hub at Indira Gandhi International (IGI) Airport, Delhi. Indigo is known for providing good service to customers with a punctuality which SpiceJet lacks a little.
• Go Air
Go Air is founded by Go. It is an Indian ultra-less-cost airline set up in Mumbai. It was the fifth largest airline in India having with an 8.4% passenger market share in October 2017. Go Air’s lack due to uncomfortable seats and this is one of its drawbacks.
• Jet Airways
Jet Airways is an Indian International airline. It is situated in Mumbai. It was also one of the largest airlines in India, having a 21.2% passenger market share in February 2016. travelers love this airline for its best service with good quality foods and comfortable seats.
Hence, these are the closes competitors of SpiceJet. So let’s end this case study with a summary.
SpiceJet is one of India’s most preferred low-cost airlines. It has its unique marketing strategies.
SpiceJet has achieved great heights. But besides that in some areas, there is a need for improvements like greeting at the airport, airline punctuality, welcoming of passengers, seats and call centers. So, this is all about the marketing strategy of SpiceJet. I hope you liked our analysis of SpiceJet’s marketing strategy, be sure to check out the Different case studies on various other organizations’ strategies on the HiDM website.