JET AIRWAYS

1. Introduction
This assignment is going to describe the marketing strategies for the hospitality and tourism sector. These strategies will be discussed on the behalf of Jet Airways. First of all there will be a brief history of Jet Airways. Then theory of marketing strategy and PR strategies will be given. After that the marketing strategy of Jet Airways will be discussed as well as the PR strategies. Then the analysis of these strategies will be done using some internal and external forces which affect the organisation. SWOT and PEST will also be used for analysis. With this analysis it will be seen how effective these strategies are. At the end some recommendation for marketing strategies will be given to discuss how Jet Airways can become more popular and attractive airline. Customer loyalty, networking and relationship marketing, brand identity and strategy, strategic customer relation, viral and guerrilla marketing and e-marketing all these are very important aspect of todays marketing. These will be discussed on the behalf of Jet Airways. First of all there will be a brief history of Jet Airways.

2. History
Jet Airways is one of the Indias biggest private airlines. It was incorporate as an Air Taxi operator on April, 1992. It started its commercial airlines business on 5 May 1993. At the beginning it was started with affect of four leased brand 737-300 aircraft and 24 daily flights serving 12 destinations. Jet Airways was set up by Naresh Goyal, who owned Jet air private limited which provided sales and marketing for foreign airlines in India. Jet Airways is one of the strongest competitors for Indian airlines, who had enjoyed monopoly in the domestic marketing since 1953. It acquired its scheduled airline status in January1994, when the air operator act (1953) was repeated. In January 2000, Jet Airways took its decision to buy air Sahara, the only major private airline, making it the biggest takeover in Indian aviation history. Now it becomes the largest aviation industry in India. But the deal feels through in June 2006, however, a modified deal went through in April 2007 and Air Sahara becomes Jet Lite. In August 2008, Jet Lite fully integrates to Jet Airways. Further in October 2008, Jet Airways announced an alliance with Kingfisher airlines that including an agreement on codesharing on domestic and international flights, common ground handling, join fuel management, joins utilization of crew and sharing of similar frequent flier programmes. Jet airways introduced another low cost air line Jet Konnect with spare aircraft that were earlier discontinued due to low passenger load factor in May 2009. Jet airways Konnect uses the same operator code as jet airways. (Anon, online 2011) In this assignment, the marketing aspect of Jet airways will be discussed to know what their marketing strategy is. How they promote their services. Which marketing strategy is adopted by them? What is their PR strategies and how they satisfy their customer? All these aspects of marketing of Jet airways will be discussed. First of all the actual meaning of marketing will be discussed.

Product and services- Jet airways provide different types of services to their customers.
For example they provide same day return for some trips between significance cities like Pairs, Singapore or some domesticities e.g. Delhi-Mumbai, Mumbai-Bangalore. It provide business class service and the club premier cabin with wider seats and greater seat pitch, exclusive ground check-in facilities

3. Marketing and Marketing strategies

Marketing has always been a little misunderstood, not a real job like engineering, finance or law. Traditionally it is not that other departments have had difficulty understanding and explaining- not quite sales but perhaps some advertising and it involving leaflets, photographs, websites and entertaining clients. And when times go tough, it is the first department subject to budget cuts, because it is seen as a cost and not an investment. The key measurement for marketing activity is not about awareness or creating buzz or any of that nonsense. Many companies only see marketing as a new Boucher or advert in the local newspaper. This may drive new clients to your door, but will they stay with you and more importantly, will they recommend you to others? There are still being taught the 4ps as the marketing method developed 50 years ago, well before the internet, mobile phones or e-mail become an everyday reality. It gives a simple view of marketing and views the world only from a marketers perspective. The theory is based on the idea that marketers, or their organization, are in control; that the client is an accidental and inexperienced player in the tactical game of getting them to buy your services or products. The key measurement for marketing activity is more people buoying your services or products than before the marketing campaign started. (Nelson, 2010) According to Koontz and ODonnell, a decision about how to use available resources to secure a major objective in the face of possible obstructions.....such as competitors, public opinion, legal status, taboos and similar forces is called strategy. Marketing strategies must be formulated for each section of marketing. These strategies should be specific, measurable, achievable, realistic and timed. Marketing strategy can be based on product, price, segmented marketing actions, market share, promotion, distribution etc. Now the marketing strategies for Jet Airways will be discussed. (Marketing strategies, 2010)

4. Marketing strategies of Jet Airways

Jet Airways use different types of strategies for the promotion of their services. The common marketing strategies adopted by Jet Airways are as follow: 1. Affiliate marketing programme- Jet airways, the Indias largest domestic airline has recently rolled out affiliate marketing programme in the marketing. This is new digital marketing strategy of Jet airways. Under this programme, Jet airways provide affiliate partners with websites and provide the opportunities to these websites to make partnership with India s biggest airline. It provides opportunities to partner one of Indias leading brands and generate revenues per conversion by promoting the airlines web. Moreover, affiliate partner may integrate Jet airways booking engine on their websites and allow visitors to book tickets online. Online sales are treated via a unique ID provided to each partner. Affiliate partners may also get promotional content and banners on a regular basis to promote airline effectively. (Seth, 2009)

2. Removing a row to gain passenger space- Another marketing strategy

adopted by Jet airways is about to provide more space to passenger. Jet airways have removed a row of seats from some of its planes to increase overall legroom for passenger. Now it is using an innovative concept of 3D billboard to sell their concept of more space the Mumbai billboard have images of two chairs sitting alongside to each other and then one drifting on railways to reveals the concept, we have removed a row to give you more space. The rows of seats have been removed from Jet airways 737-800 series of planes. (Chandran, 2007) Gaurang Shetty, vice president of Jet airways has stated that they want to create an impact and effectively communicate that we have removed a row of seats from our domestic flight. The outdoor innovation has only been done in Mumbai considering the restrictions on the same in other metros. 3. Partnership with UTV- In 2009, Jet airways has partnered with UTV to launch the online contest Canners Calling. In this contest the winner will get a chance to attend the film festival 2009 along with the campaign that jet airways is trying to highlight its product superiority. With these type of campaign Jet airways increase its publicity and also give the information about their services and how their services different from other airlines. 4. Alliance with Kingfisher airline- Jet airways has used one of the integration strategies in the current situation of crises. An alliance with its rival Kingfisher has been formed. This alliance is a code sharing agreement. In this agreement, both companies can jointly reduce costs on routs globally by sharing the resources. Furthermore, Lisa reveals that jointly a global airline alliance is certainly on the cards of Jet airways. With this alliance they can share the petrol station and other places in different countries to save money. (Online, 2011) 5. Ethnic marketing in US- Jet airways is relying heavily on ethnic marketing in the US to get in touch with its main target market of non residence Indian. They are tripping on the distribution networks like grocery stores where they allow access to customer to get tickets. Jet airways have been targeting niche events like Diwali celebrations and India day parade in the US to get targeted exposure with the people who regularly fly to India. Moreover, Lisa realises that these customer shop around a lot to do their homework before they made a purchase and Jet airways offers a product that offers a great value. (Simplifying, online, 2011) 6. Pricing and Fare strategies- Jet airways also use some strategies related with price or ticketing. For example, sometimes they provide some free tickets to for the promotion of their services. They also provide concessional fares for students on domestic level and also on international level. Jet lite surprises offer corporate deals. All these offers help them to promote their services and also they encourage the people to use their services for all their national or international tours. (Chundawat, 2009) 7. Promotional Activities- Jet airways also use some promotional activities to promote their products or services for example they make Sharukh khan, the bollywood star, their brand ambassador. In the times of fuel price rising they are making the most expensive brand ambassador. The Shahrukh Khan TVC, which broke on September 1, is the first of three campaigns Jet has planned (the ones on economy and premier will follow), and is running across most news channels and some specialised travel channels. Jet is trying to highlight its product superiority. Jet had come out with Boeing 777 last year, which has some superior features and this ad is merely an aim to highlight those features besides trying to latch on to the celebrity appeal of Shahrukh Khan.(online, 2011)

8. E-marketing- Jet airways have developed the new strategy of e- marketing. Now the
tickets can be booked online on the airline website. Passengers can book their tickets, pay and print their tickets online form any point globally and travel with paperless tickets across its network. People can check the facilities provided by airline on internet. This is their new strategy of marketing. 3

5. Public Relation Strategies

Marketing strategy that integrate an organizations marketing goals into a cohesive whole ideally drawn from market research, it focuses on the ideal product mix to achieve maximum profit potential. The market strategy is set out in a market plan. PR is one of the most important cornerstones of a lasting business. By helping build and maintain a good reputation, PR increases a companys profitability and ensures its continued existence. (Online, 2011).PR is bigger business function of managing communications between the company and its public which may include its customers, supplier, partner, relevant community and the government. PR can significantly reduce a companys expenditure and can help it further to achieve its goals more effectively than any other campaign. PR can lower advertising and marketing expenditure by creating longer lasting relationship with the public. By building, managing and sustaining a companys positive image, public relation provide loyal customer that can sustain an organization for years. Good public relation also can help organization reach legislation in order to seek favourable regulatory and tax treatment and other such actions constructive to a companys goal. It also can help a company in recruiting and maintaining the best employees. Good public relation makes an organization look like a desirable employer measuring the chances of attracting the best talent. Now the public relation for the marketing of Jet air ways will be discussed to know what their public relation strategy is.

6. Public Relation Strategies of Jet airways

Now the PR strategies of Jet airways will be discussed. First of all it will be discussed what is the meaning of PR strategies. PR is one of the most important aspects of business. It helps in building and maintaining a good reputation; PR increases a companys profitability and ensures its continued existence. Here some are the examples of PR strategies. Product launch campaign, promotions, advertisement, articles, speeches, social awareness, media relation, sponsorship etc these are some common PR strategies used by all the major companies. Now the PR strategies of Jet airways will be discussed.

1. Social awareness-Using social media as a b2c is a new phenomena to business in

India. Jet airways come a long way since its first flight in 1993. This is one of the fastest growing airlines in the world and now its all set to change the way to fly for better. It makes the full utilization of social media strategies for marketing. It regularly updates on face book or twitter about the latest travel deals and offer new flight announcements interesting places to visit queries. They also upload new pictures on image sharing sites such as Flicker and Video on You Tube to show case there in flights features. People can see how they will be treated and what will be offered before travelling to Jet airways. (Anon2, 2011, online).

2. Brand and promotion strategies- the core focus of the brand is to be a world
class airline. Towards this end it tries to offer passengers a world class product. It endeavours to ensure that the customers can depend on the clockwork like regulatory of Jet airways operations and it promise to deliver a highly professional and efficient brand experience pre- flight, in-flight and post flight. The world class airline for business travellers; the identity needed to reflect the professionalism and warmth reflect its band position. This was build into the Jet airways logo design and the choice of colours.

3. Product Launch Campaign- Jet airways first advertising campaign was

released in 1993. An integral part of the launch strategy for Jet to hold out airline would be a joy. This led to the familiar line the joy of flying. New strategy was developed to make the brand more warm and caring the brand property or control theme of this new strategy was the yellow rose and entire communication. Programme was developed around this. The new uniform was also introduced in 1999. The uniform design uses a floating diya (a traditional Indian lamp) in its print. Over last 4 years the uniform has become a very visible and significant feature of the brand.

4. Customer loyalty strategy- it makes good relation with its customers. During the
travelling it provides special attention towards infant and small children. It also provides wheel chair assistant for those who are unable to walk. Expecting mothers till 36 weeks of pregnancy can be permitted to fly on jet airways flight. Pets are allowed only on the Jet airways Boeing 737 aircraft. It also provides medical emergencies to customers. Jet conforms to international safety standards so that passengers favourite airline is also their safe airline. Jet airways designed its aircrafts with passengers comfort in mind. Their premier seats are fitted with armrest tables arranged in a two-by two configurations so that every passenger has window or aisle seat.

5. Customer relationship management- During the last two years the brand of
Jet airways has consolidated. Its market position of leadership placing greater emphasis on customer relationship management. The service tracker, a system for collecting and acting on passenger feed back within seven days help analyze trends and measure quality aspects such as meals, in flight services, on time performance etc.

7. Analysis of Marketing Strategies and PR strategiesAnalysis of marketing can be done using external and internal factors. Government policies and completion are including in external factors. Internal factors means people skills, resources available, customers, production capacity etc. Now the marketing strategies of Jet airways will be done using all these factors. First of all external factors will be discussed which have an impact on Jet airways. Memorable word PEST can be used to study external forces which affect Jet airways.

a. External factors:
Influence of political decision- A member of parliament voted on 13th November
stated that airline must reduce co2 emission by 10% when they join the EUs carbon capand-trade scheme in 2011. Furthermore, it was announced that all airlines flying to and from EU territory should join the scheme in 2011. These airlines must reduce 10% emission. 25% of the pollution permits would be given or auctioned out of airlines. The cost of all co2 permits bought by airlines would be multiplied by two unless the commission develops the legislation to address additional climate impacts caused by nitrogen oxide emission from aircraft. He also said that an efficiency clause states that the aviation sector can only buy permits from other sectors of it just to improve its own fuel efficiency. These entire announcements have a great impact on Jet airways. They need to build new strategy to promote that they have reduced the emission and the journey on their aircrafts is free from pollution. (Article, 2007) 5

Economical issue- Most of the airlines are becoming private because they have to
meet certain criteria for a successful. So all these aviation are entering new strategies for their business. Jet airways also need some strategies to compete with them. Moreover, Jet airways are facing the problem of decline in demand, lower yields, recession and high fuel prices. To come over all these problems it needs new strategy. They should try to find something new to increase the demand of their aircrafts. The loss of income for airlines led to higher operational costs, not only due to the lower demand but also due to higher insurance costs which increased after the WTC bombing. This prompted the airlines to lay off employees. (anon1, 2011)

Social factors- The travel habits of people are changing day by day. To cope with these
habits, Jet airways need new strategy to promote that they are taking care of their customers. They must provide the services according to the taste of people to increase the demand of their aircrafts. Plane hijacking is also a social factor which is a cause of decreasing the demand of aircrafts. Sound pollution also affects the marketing of airlines. So air craft should be free of sound pollution.

Technological factors- The major competitors of Jet airways are using new
technologies for the promotion of their product. They increase the use of internet for example Air Sahara provide the facility of online booking and they also auctioned their remaining tickets before two days of timing. Jet airways have an influence of these technological factors in the marketing of their product or services.

Competition- Jet airways are facing the strong competition from Kingfisher especially in
domestic fights. Some overseas markets like British airways, Air Canada also giving a strong competition to Jet airways. To cope with all these airlines, jet airways need a new strategy to promote its services at international level. All the major competitors of Jet airways are using some innovative strategy to increase its popularity. So Jet airways also need new strategy for this.

Guerrilla marketing- The war of sky is back again and poor Jet Airways is loser
again. Last year Jet started a campaign saying We have changed and Kingfisher hijacked the whole campaign by placing a hoarding just above it claiming We made them change. Jet was forced to withdraw the campaign and started a new one with message take off to New York daily Kingfisher again changed its hoarding which stated, They have flown from here to New York. Jet put up an outdoor campaign for JetLite stating, our smile lights up 502 flights to go over 50 cities every day with pictures of their smiling staff. Deccan put up its hoarding next to this, which said, Wed rather you smile), with pictures of their smiling customers. This strategy also put a great effect on the marketing of Jet airways.

Opportunities- Air cargo market is an opportunity for Jet airways. Jet airways have
been on the forefront in the transportation and handling of general and special cargo safety and comfort. Jet has a scope in international service and tourism. Tourism is expanding industry in these days and airlines have a wider scope in this industry.

Threats- Air lines industry has several threats and Jet airways also could not escape from
these threats. Strong competition from other airlines is a big threat. Fuel prices are raising day by day because of this fare prices also increasing. As fares are increasing then the demand of customers is going to decrease. This is a biggest threat in the marketing of Jet airways.

b. Internal factors:
Now some internal factors will be discussed which have an impact on the marketing strategy of Jet airways.

Strengths- Jet airways are the known as the market driver in the Indian airlines market. It
has now the experience of more than 14years. It is the only private airline with international operation. It also has the largest fleet size. All these strengths are very helpful in the marketing of their products. It has a strong brand values and reputation in the mind of customers about the quality of service. It is the first airline to have new fleeted air buses.

Weakness- in these days, the ticket price is going to be high. It is also losing its domestic
market share. Most of its fleet are going to be old with average age around 4.79 years. Its brand promotion is also weak in the comparison with other airlines. High fares are also a weakness for Jet airways.

Customer service- People are not satisfies with the customer service of Jet airways
especially in domestic aircrafts. A customer said that the staff did not provide the facility of wheelchair to his parents who are too weak to stand. This type of news will have bad effect on the promotion of its products.

Production capacity-The airline expects higher demand driven by increasing

affluence in Asia's third-largest economy, but has no plans of placing big aircraft orders, Naresh Goyal said at a conference organized by the Hotel Investment Forum India. They are expected to increase its domestic revenue by 15% and international revenue by 20% in the next five years. A day after smaller rival Indigo placed a $15.6 billion order to buy 180 planes from Airbus in the largest jet deal in commercial aviation history, Goyal said Jet is following a "relatively modest" aircraft acquisition strategy. This type of strategy is helpful the promotion of their services.

Customers- Jet airways targeted customers are business class and economic class.
These targeted customers also have an impact on the market of airline. It does not have attractive strategy for other people of society as there are different types of people in the society and they should make the strategy for all these people its market segment can be divided in to three segment economic class; business class and premium class. It has an impact on the marketing for the other classes of people. After analysing the marketing and public relation strategies of Jet airways it is realised that Jet airways needs lot of improvements in their marketing strategies. Here some new strategies will be recommended for Jet airway so that it can become one of the strong and most demanding airlines in todays world. These recommendations are listed below:

8. RecommendationSome recommendation for effective market and public relation strategies are listed below. If they use these suggestions then they will make their airline more powerful and demanding.

a. Recommendation for marketing strategyBoost consumer confidence- Consumers are fickle lot and are frequently hesitant
to buy a product they know little about. To boost the confidence of customers about the services they should use that type of campaign that emphasizes the quality and value of product and services.

Leverage emotions- The buying decision is emotional for many customers. Large
Corporation spend millions of their money playing on their customers emotions and this works for them. Jet airways also should create a campaign that makes its customers feel themselves, your organization and their decision to buy your product or services.

Overcome objections- the task of overcoming a buyers objections is usually

assigned to the sales team. However, a well crafted marketing campaign can work towards overcoming the customers buying obstacles before the walk to the door. A marketing strategy that emphasizes warranties, testimonials, endorsement and other positive reinforcement devices attract new customers as well as existing customers. Jet airways should use this type of marketing strategy.

Knowing the competitors strategies- The marketing strategy of competitors

are also very important. They should have information about the marketing strategies adopted by their competitors. They should have good knowledge about what are the strategies adopted by others to promote their services and product.

Customer oriented approach- Customer oriented approach or technique should

be used by Jet airways because customers are one of the main parts of an organization. They should do everything to keep customers in the mind. They should use strategy which is customer oriented so that they can compete with new entrants in the market.

b. Recommendation for Public RelationGood media relation- Jet airways should try to have a good relation with media
because media plays an important role in the promotion of services or product. If they have good relation with media then media will promote their effective strategy about customers relation.

To provide sponsorship- For the effective public relation, Jet airways should
provide sponsorship. It can be either a team or charity organization. Then people will have a chance to know about Jet airways and the services provided by them.

Deliver speeches- the managing director, sales manager or other respectable persons
in company should deliver speeches to public, time to time, about their recent changes and their upcoming strategies.

Publish articles- The organisation should also publish some article about their
changes and about their customer relation strategy in the popular newspaper or magazines. With these articles people will get knowledge about their strategies and about what are they doing to improve their services. It will increase their good relation with customers.

Use technology- In todays predominantly online business world. There is no quicker

medium than online for breaking a big news story. Viral marketing and video campaigns are just two of the ways that businesses are reaching a wider audience. Blogging is another vital cog in the online promotion of a business. Jet airways should use this type of technology or their good public relation strategies.

Know the market-For good public relation it should be known what is happening
around you. It will help to act immediately to keep your clients ahead of the game. Jet also should have the knowledge of every technology which give information about the market in which their product or services is going.

9. ConclusionTo conclude it can be said that Jet airways is one of the biggest airline industry at domestic level as well as international level. Its market share is more than any other airline at domestic level. It is very aware about their marketing campaign and their public relation. They are using all the recent technologies and strategies for the promotion of their products and services such as customer loyalty, social awareness, social media strategy and advertisement with famous people. But all these things are not enough in todays world. As new entrants are coming in the market and existing competitor are also using very effective strategies for the promotion of services or products. After analysing the marketing and public relation strategies of Jet airways it is realised that their marketing strategy is not as effective as their competitors strategy. They need to re-establish their strategy to compete with other airlines. Political, economical and social issues also have an impact on the marketing of products. These are uncontrollable elements. Nobody can control them. So they should make their strategy in such a way that they have a little effect of these uncontrollable elements. As people are very aware about the products or services which they are buying so the organization should need good public relation. Some recommendations are provided for the effective marketing and public relation strategy. With the help of these suggestions they can improve the marketing of their services and also their public relation.

10. References
1. Anon1 (2011) history of jet airways [ online] available from: http://www.makemytrip.com/flights/jet_airways-history.htm[accesed date] 2. Keshav seth (2009)http://www.topnews.in/jet-airways-introduces-affiliate-marketingprogram-2113327 3. Anon2 (2011) marketing strategy of Jet airways [online] available from: http://www.cmlinks.com/pub/dp/dp5586.pdf [accessed date 3 June 2011] 4. Anushree Chandran (2011) removing a chair to gain more space, the wall street journal (2011)http://www.livemint.com/2007/11/25233107/Jet-Airways-strategy-removing.html 5. Mobissiomo blog (2007) kingfisher airline ambushes jet airways with his ad hoarding. 6.ShahrukhKhanJetAirwaysAdcampaign.(2011)http://ideasmarkit.blogspot.com/2008/09/sha shahr-khan-jet-airways-ad-campaign.html 7. Reddi (2009) effective public relation and media strategy 8. Danny Brown (2008) top five public relation strategies, press release of PR 9. Harshita Kakwani (2011) jet airways social media strategy 10. Anon3 (2011) swot analysis [online] available from: http://www.scribd.com/doc/8718529/Jet-Airways [accessed date 15 June 2011] 11. Sue Nelson (2010) more in marketing than you think, Article in business executive 12. Natalie June Reilly (2010) Social Factors Affecting Airlines [online] available from: http://www.ehow.com/list_7379446_social-factors-affecting-airlines.html [accessed date 16 June 2011] 13. Share Khan (2011) technical analysis of jet air ways [online] available from: http://rockingcalls.com/technical-analysis-of-jet-airways-sharekhan [accessed date 19 June 2011]

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