How Indigo captured the highest market share in India.....

Posted - 09 Apr 2024

"India's largest carrier, IndiGo's, domestic market share has further increased to 60.5 % in 2023 from 56.1 % in 2022."

The Brief Context

IndiGo took flight in 2006, marking the onset of the low-cost airline revolution in India. 

The aviation landscape at the time was divided: premium carriers such as Jet Airways and Kingfisher dominated one end, while no-frills airlines like Air Deccan, Go Air, and SpiceJet occupied the other.

IndiGo Airlines was set up in early 2006 by Rakesh Gangwal and Rahul Bhatia of InterGlobe Enterprises, with InterGlobe as the parent company holding 51.12 percent of the stake while Rakesh Gangwal’s Caelum Investments, a Virginia, and US-based Company hold 48 percent.

Indigo's Success TrailBlazer - Its Own Proposition

At that time, in 2006, when the market was heavily dominated by other players, IndiGo recognized the need to embrace a distinct strategy to capitalize on the significant opportunities arising from the democratization of the aviation industry. 

Initially, first-time flyers viewed air travel through a lens of aspiration. However, as more individuals opted to fly regularly, efficiency emerged as a paramount consideration over luxury. 

IndiGo foresaw that in this transition, possessing a relevant functional attribute would serve as a formidable competitive advantage. 

Beyond the allure of food, hospitality, and service amenities, passengers would prioritize an airline that guarantees punctuality and reliability, ensuring they never miss their next meeting or arrive late to their destination.

Thus, Indigo came up with "ON TIME, EVERY TIME", signifying punctuality and aggressively showing a professional behaviour.

And IndiGo not only stayed true to its principles but also took proactive steps to invest in tools and technologies, guaranteeing the brand's ability to fulfill its commitments.

Indigo's 3 pillars of Service

But how Indigo measures it?🤔

Indigo uses these metrics for measuring & improving On Time Performance -

• As per Indigo, Its maximum Aircrafts are equipped with the CAT-IIIB system, allowing for take-off and landing in low visibility conditions.

• Indigo invested in ACARS technology to automatically record turnaround and take-off times of its aircraft, in order to use data to constantly shave off wasted time.

• Indigo uses a boarding ramp instead of stairs to save time while embarking and disembarking. 

Low Budget Airline - Affordable Fares

To compete with established industry giants, IndiGo recognized the necessity of offering cost leadership. It implemented various operational innovations aimed at reducing costs without compromising safety. 

• From its inception, IndiGo has prioritized maintaining a young fleet, resulting in lower fuel consumption. 

• Strategically, it has emphasized the inclusion of a significant portion of A320 NEOs in its fleet, which the company claims are approximately 15% more fuel-efficient compared to older A320 models. 

• IndiGo is even planning to phase out its A320 inventory by FY 2023, positioning itself well ahead of other global carriers. 

• Moreover, To keep the ticket fare minimum, IndiGo doesn’t include complimentary meals in its ticket price.

Hassle-free and courteous service

Indigo positioned itslef as ‘no-nonsense’ flying experience. Indigo eliminated service layers deemed unnecessary or incidental to the core business of transportation. 

It pioneered several service concepts that have now become standard in the Indian aviation industry. 

Not only did these initiatives create new revenue streams, but some also contributed to operational predictability, thereby supporting the airline's efforts to maintain on-time performance.

INDIGO'S BRANDING STRATEGY - Creating a Brand Personality 

“yet another flight completed on IST – Indigo Standard Time.” 

Brand's personality plays a crucial role in establishing a unique identity and facilitating differentiation and clear association. Brand tonality refers to the manner in which a brand communicates its personality traits to consumers.

The more precisely this personality and tonality are expressed across all touchpoints, the more memorable and recognizable the brand becomes. 

Over time, this distinctiveness becomes ingrained in consumers' minds. Ideally, when consumers encounter content produced by the brand (even without the brand name attached), they should instinctively recognize it and think, "That's characteristic of brand X!"

And Indigo used this strategy very much!! 

But how? 🤔

Let's see! 👀

Curating a Brand Personality 

During end-of-flight announcements, the Indigo cabin crew talks about “yet another flight completed on IST – Indigo Standard Time.” thereby giving On-Time Performance a very signature Indigo touch.

Indigo pioneered a unique in-flight menu that optimized timely service. 

Every time , an Indigo flight, makes an on-time arrival, everyone from the pilot to the cabin crew seems to celebrate it with a sense of pride.

And Indigo, blatantly, emphasize this single-mindedly in each of their TV advertisements.

Humanizing the brand - Adding the human touch

Indigo has always humanized the brand through powerful storytelling. 

It regularly profiles its staff- pilots, cabin crew and even on-ground personnel- in its in-flight magazine, thus adding a human touch in its story.

Indigo’s Unique Social Media Approach

Indigo’s uses a catchy social media approach to achieve a balance between fun and professionalism.

It regularly uses its handles to promote the care and effort it takes to train and groom its cabin crew, and never forgets to call out that 44% of its team comprises of women.

IndiGo's journey of success underscores its robust business model, operational prowess, and unwavering dedication to its customers. Despite encountering obstacles, the airline has risen to prominence as a frontrunner in the Indian aviation sector, persistently innovating and adjusting to evolving market conditions.

BUSINESS LESSONS FROM INDIGO

• 1. Focus on Core Values, IndiGo's commitment to on-time performance, cost leadership, and hassle-free service shows the importance of defining and adhering to core values.

  2. Continuous Innovation, Indigo's Investment in operational technologies, fleet modernization, and service enhancements highlights the importance of continuous innovation to stay ahead of the competition and meet evolving customer needs.

  3. Customer-Centric Approach, IndiGo's success in building a strong brand identity and loyal customer base demonstrates the significance of prioritizing customer satisfaction and delivering value at every touchpoint.

  4. Adaptability to Market Dynamics, IndiGo's ability to navigate challenges, such as industry disruptions and economic downturns, showcases the importance of agility and adaptability in responding to changing market dynamics.

  5. Employee Engagement, IndiGo's emphasis on employee training, empowerment, and recognition underscores the role of engaged and motivated employees in delivering exceptional service and driving organizational success.

  6. Brand Consistency, IndiGo's consistent branding across various touchpoints reinforces the importance of brand identity and communication in building trust and loyalty among customers.