1. Problem and its brief, The Aviation industry has been in the news for some time now.

Rising fuel costs and a weakening rupee have been major culprits in causing a decline in its profitability. Adding to this is the huge competition that the industry faces. Luxury Airlines are now facing stiff competition from the low-cost airlines as well as they are increasing the standards of their offerings. Prago Airlines flies to 65 domestic and 20 international destinations spanthe length and breadth of India and beyond, including New York (both JFK and Newark), Toronto, Brussels, London (Heathrow), Hong Kong, Singapore, and Dubai among others. Owing to the financial crisis in 2008 its profit declined by 52 per cent and share price declined by 65 per cent. Experts are warning investors from investing in the industry. Faced with one of the harshest times ever, the company needs immediate follow-up with its marketing mix and improvising over its current offerings.

2. Objective, As a consultant I need to focus on the following areas to help the airline: o Decide on a new suitable marketing strategy for the same, including the marketing mix. o Design a new logo for the airline. o Promotion plan for the corporates as they are the main clients. o Selection of colors of the crew members and supporting staff. 3. Diagnosis The airline industry overall is going through a tough time. In the coming time the competition between the existing players would increase as all would be eyeing to attract the customers both new and existing. The current positioning of the company may not be able to attract the required number of customers and hence the profitability could take a toll. And because of this the goodwill of the company could decrease resulting in investors moving away from investing in the company. Our aim is to devise a strategy which would help the company build a better image in the market resulting in improved profitability of the firm.

4. Problem identification methods For the purpose of problem identification we look at the Current Indian scenario of Air travel. We look at the factors that make enable certain airlines to make profit even in the during the crisis period. We take the help of secondary data analysis to find the factors. We also look at preferred mode of travel among the passengers. For this we use primary research. Then we

would take a look at how Prago has been positioned when compared to others and suggest the changes that we think might be useful in turning around the fortunes of the company. Pragocompeting with both the no frills - low cost airlines as well as those with frills. Current segmentation based on social class & income level Social classes: which use full carrier services and those which use first class services of the railways Income level : Low cost carrier for those who travel by first class railway Problem with positioning Brand relates to Lifestyle. 5. Alternatives/solutions suggested as well as limitations. Solution Prago Airline started its operation by positioning itself as a budget carrier and not as Low Cost Carrier (LCC). Following are some strategies which can make it one of the leading Airlines in India.

It should come up with a very appealing promotional line like Fly the good times which reflects in the experience the company offers to its passengers. It can also launch new flight like Prago express in order to tap into the growing LCC segment. It should also plan to re-launch its commercial air service again which it had to withdraw it due to government restrictions. The company gave best services to its customers that were like providing world class interiors, and in-flight entertainment systems. The company came up with only one class airlines rather than other airlines that had Business Class; Economy Class the idea was to combine Business Class experiences and Economy Class experiences in one.

Having a single class freed up more leg space for passengers when compared to normal economy class flights.

The company started addressing its customers as GUEST rather than passengers. The company made its mark by providing its guests with more legroom and bigger seats so as to provide better comfort.

Prago airline should aim to become Indias largest airline both is capacity and in market share.

Promotional Strategies As part of its promotional strategy the marketing team of Prago Airline showcased the airline as the new flying experience. The following initiatives were taken as part of its promotional strategy.

Advertisements hoardings at airports depicted the stylish interiors of the Fun liners, which conveyed youthful, fun-filled, and world class image. INOX multiplexes in Mumbai publicized Pragos special offers for a month. Prago can also become the official travel airlines for the cast and crew of some good movie. Prago can also make use of various fashion shows, celebrity golf matches, New Year parties all to build its brand. It should also launch many attractive offers to promote its sales like the King Card in association with some bank e.g. ICICI Bank. This would help in creating loyal customers for the airline by providing benefits like privileged access to lounges, restaurants, free refreshments at airports, access to 180 golf clubs across India, special invites for lifestyle shows . It can also target the frequent fliers business traveler segment, which is mainly dominated by Jet Airways. For example By offering a King Saver Booklet, This booklet contained six free flight tickets and was presented as a free gift if the passenger bought two such booklets each worth Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege Member (Gold or Platinum) card.

Financial strategies: Prago Airline should also come up with many new financial strategic moves that can make it one of the leaders of aviation industry

It should purchase brand new crafts like A320 aircraft which is powered by the cockpit which is a paperless environment. Prago airline can also buy various aircrafts like A350-800, A330-200, A380etc from air shows like Paris Air Show, Dubai Air Show which would contribute towards enhancing the profit of the company. In order to further expand it can also bid to buy some airline with reputed goodwill which is within the budget of the company and would also help the company in establishing itself. Prago Airline can also issue Initial Public Offer (IPO) and raise around funds that can be used for its fleet acquisition and route expansion activities.

Prago airline can also establish a subsidiary in US for its international operations which would be requiring governments approval. According to Indian government domestic air carriers are not allowed to fly international routes without five year of domestic flying experience. But if the company fails to convince the government to change its rules, it can start an airline in a foreign country and fly it to India.

Human Resource Strategies

Prior to launch, Prago airline signed a non-poaching alliance with Paragon airline under which both the airlines agreed not to hire each others employee. Prago flight attendants called Flying models were selected through a national level model contest. It also stressed the fact that its employees had to be capable enough to meet the airlines high service standards. Among one of the biggest HR move for Prago airline can be to hire some expert as Chief Operating Officer to strengthen its management team. It should have first class management team not just at top most level but also in the second line.

Marketing Strategy We suggest the following Marketing mix for the company.

Product

Fleet Size Aircrafts International Foray Advertisements Magazine and Newspaper ads Exposure at non-corporate event Participation in International Airshows Endorsing celebrities Dynamic pricing model - Multiple fare levels Uniform rules No hidden restrictions. Pricing model - 8 different levels Discounts provided from time to time Backbone of the brand Extensive trainings Hospitality industry and consider their customer as guests

Promotions

Price

People

Interpersonal skills, aptitude, and service knowledge

Place Online Booking - www.prago4u.com Online Booking - Yatra.com, MakeMyTrip.com, ezeego1.com Credit Cards & Debit Cards Payment SMS / Call Outlets in every major city and at every airport across the country Physical Evidence Personal valets Exclusive lounge space Hi! Blitz Gourmet cuisine world class cabin crew 5 trendy video- Fun TV; 10 music stations -Kingfisher Radio Process Booking the ticket - online booking or tele-booking or from any of the Prago outlet

NEW LOGO

PRAGO
Selection of colors of the crew members and supporting staff. Crew members and support staff would now wear Blue as it can represent happiness and optimism Other strategies can include Advertisement reflecting Value for Money Gain operational efficiencies through alliances as with Jet Airways Leverage Upon: New fleet, Unmatched flight service Innovative ideas-LIVE TV with 16 channels A joint promotion, i.e. using MakeMyTrip services and flying Prago Airlines. By partnering with Prago Airlines, further convenience in travel is offered at no extra cost- Added value Fleet size expansion

Limitations Some of the limitations include: 1. Huge funds required to make changes. 2. Immediate effect may not be visible.

3. Employees might be resistant to change.

Services offered to Prago airlines: Consultancy Financial expertise Technical assistance Managerial assistance HR consultancy Professional fees We at GeeGeeConsultany charge fee as per services and expertise provided. We charge fee on case-to-case basis. The management policy is to charge 10% of the fee as and when the consultancy is hired, and the remaining fee is charged in four stages, each after 20% of work is accomplished. Our charges for your company will be a lump-sum of Rs 4.5 lacs, and shall be payable as stated above.

Stages 1 2 3 4 5 Total

Reference Advance Completion of analysis First set of suggestion Correction and approval Final project report

compensation 45000 101250 101250 101250 101250 450000