Friday, October 14, 2016

SpiceMax - Different from Competition

Aviation sector over the years have witnessed several innovations by the incumbents. Being one among the competitive as well as complex sectors, Indian aviation sector produced success stories as well as sudden demise. Flying by air which was once a wild dream for a middle class of India, is now a widely used one. The domestic travelers have increased multi-fold in the last decade or so. Thanks to Air Deccan who democraticed air travel in India. Thus a new type of players started operating known as Low Cost Carriers(LCC) or No - Frills Carriers.

Spicejet is an inevitable player in the LCC category. Ever since its inception Spicejet relied on innovation. They chose low cost destinations, triggered flash sales etc. to penetrate into the multi billion market. From being a late entrant they graduated themselves to market challengers and in a way troubled their peers. 

As part of their continuous innovation, Spicejet very recently launched Spice Max to enhance on board experience. By launching such an offer Spicejet  makes a shift from a purely non - frill carrier to a partial service carrier(read LCC with some optional additions). A careful understanding of consumer behaviour is done prior to the launch. Usual division of consumer like business class and economy class is not possible in a LCC. But there are consumers who want quality service but are price - sensitive. SpiceMax focus on a hot meal on board, spacious legroom and a reprieve from long queues.
This gives a pleasure to the consumer while it generates revenue for the provider. Since price wars are really suicidal, service differentiation is the best available option.

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