Battle for mind space

As full-service carriers invade the no-frills space, SpiceJet is finding new ways to bond with customers.
If you visit a travel portal, and search for the best available air fares between Delhi and Mumbai, you will find that every airline is offering similar fares. That’s the biggest challenge facing budget carriers like SpiceJet since they began flying.
The fare differential they enjoyed with other airlines, which was their key selling point, has disappeared as full-service airlines (FSAs) like Jet Airways and Kingfisher shift more and more flights to their no-frills options like Jet Konnect and Kingfisher Red.
To understand the challenge faced by the low-cost carriers (LCCs), look at the passenger traffic numbers put out by the Directorate General of Civil Aviation (DGCA) for October. While Jet Airways increased its market share to 19.8 per cent on the back of its all-economy configuration Jet Konnect, SpiceJet ’s market share fell to 12.4 per cent from 13.2 per cent in September. Other LCCs showed a similar dip.
It’s a wake-up call for budget carriers like SpiceJet which now have no option but to reinforce their positioning, differentiate or find new ways to bond with customers. That’s what SpiceJet is trying to do through a brand campaign and other initiatives. ‘‘You need to differentiate on service, quality and create top-of-the-mind recall,’’ says SpiceJet CEO Sanjay Agarwal.
Anish Srikrishna, senior VP (marketing), SpiceJet , says the challenge for airlines is to start differentiating on factors other than price. “That’s where branding comes in; we are fighting for her mindspace, intangibles such as the likes and the dislikes of a customer,’’ he says.
Some consumers may like the colour of a plane, others may have heard about the service of another airline, some may have heard of an airline reputed to be serving food while others may associate an airline with hassle-free flight. These are subjective, experiences unique to a customer, or perceptions that may get built over time.
23/11/09 Ranju Sarkar/Business Standard

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Categories: spicejet Nov 2009