B2B Project
B2B Project
1LJ[ N l[ V lE ll l § l[ 1[' Y
lE
Prhiat e University established in Kart1ataka Stare by Act No.34 of year
2010 Recognized by the U11frersity Grants Commission (UGC), New
Delhi
A Study on
Of
Submitted By
(Group 12)
Submitted To
Prof. Sandeep Shede
A report submitted in the partial fulfilment of the requirements for the degree of
Master of Business Administration.
Page 1
CONTENTS
1. Module I - Executive Summary
2. Objectives of the Project
3. Primary Objective:
4. Scope of Project
5. Research Methodology
6. Methods of Data Collection
7. Tools Used for Data Analysis
8. Limitations of the Study
Page 12
Module I - Executive
Summary
Air India, as one of India's premier airlines, plays a crucial role in connecting
major business hubs across the country. Among its numerous domestic routes,
the Mumbai-Bangalore sector stands out as one of the most vital, linking two
economic powerhouses that are home to a vast array of industries and
multinational companies. This route serves a significant number of business
travellers, making it a cornerstone in the corporate travel ecosystem. Air India
has long recognized the importance of this market, offering a range of services
tailored to the needs of frequent business flyers. From different service classes
that cater to varying comfort and convenience levels to loyalty programs that
reward repeat customers, the airline has established itself as a go-to choice for
companies that require regular air travel between these cities. Additionally, the
airline's corporate packages are designed to provide cost-effective, flexible
solutions for businesses, ensuring seamless travel experiences for their
employees. As the demand for business travel continues to grow, there is a
pressing need to further strengthen Air India's position in this sector. This project
seeks to analyse Air India's current market standing on this crucial route and
develop a targeted B2B marketing strategy that will enhance its share of the
business travel market, focusing on meeting the evolving needs of corporate
clients and maintaining a competitive edge in a highly dynamic industry. This
project will explore ways to leverage these existing strengths while identifying
new opportunities to increase market share, deepen corporate relationships, and
enhance customer satisfaction among business travellers.
Page 13
Primary Objective:
Development of a B2B marketing strategy for Air India that can effectively
target businesses in the Mumbai to Bangalore route, to enhance customer
acquisition and retention in the corporate travel segment.
Secondary Objectives:
1. Analyse customer needs and perceived value in this route.
2. Find the competitive advantage of Air India services from its
competitors.
3. An analysis of pricing and promotion strategy that can most effectively
increase business clientele.
Scope of Project:
The scope of this project will involve Air India services on the Mumbai to
Bangalore route. Strategies of B2B marketing in this route will be focused on it.
The process will be by observing the choices of corporate traveller 's, corporate
packages, loyalty programs, and prices.
Research Methodology:
Methods of Data Collection: Primary Data
Primary data will be collected through interviews and surveys with key
stakeholders, those being
• Business Travelers: Regular passengers on the route from Mumbai to
Bangalore will be surveyed to understand what they want, expect, and
how satisfied they are with Air India services.
• Corporate Travel Managers: There would be travel managers from
corporate companies to understand the needs of corporate travel, reasons
behind the choice of airlines, and comments on Air India's corporate
packages.
• Industry Experts: Meeting experts in aviation industries will give
insights into current and developing trends, issues, and scope for the
corporate travel market.
Page 14
Methods of Data Collection: Secondary Data
Secondary data are collected from a credible source, which consists of the
following data sources:
• Conclusions relating to the performance on the Mumbai-Bangalore
route and the identification of strategic priorities are derived from
analysing the financial and operational reports of Air India.
• Reports and published data from key competitors like Indigo, Vistara,
and SpiceJet are analysed to understand their B2B services and market
positioning.
SWOT Analysis
Air India's internal strengths will be based on a SWOT analysis that reveals its
weaknesses and compares the strengths and weaknesses that it has on the
Mumbai to Bangalore route and the competitive opportunities and threats posed
by the market environment. This will highlight the major areas of opportunity
and strategic growth in the B2B segment.
Page 15
PESTLE Analysis
PESILE or the Political, Economic, Social, Technological, Legal,
Environmental analysis will be done to understand the macro-environmental
influences that might challenge Air India's B2B strategy. It will be related to the
understanding of trends in the market, regulatory changes and changes in
technology in the business travel sector.
Competitor Benchmarking
A comparative analysis will be drawn to benchmark Air India's offerings against
its competitors, including Indigo, Vistara, and SpiceJet. The comparison would
relate to the pricing models of competition, offers and services accorded by
them, their loyalty program, and satisfaction level by their customers to assess
where does Air India stand competitively.
Trend Analysis
Trends of the Industry about corporate travel post the pandemic, digital
transformation, and sustainability will also be made available. In doing so,
future demand patterns can be anticipated, and the development of specific B2B
strategies will be done accordingly.
Page 16
Module II - Products & Services - City/State Perspective
Products/Service Overview
1. Classes: Economy, Business, and First Class.
2. Onboard facilities: Food, Internet, entertainment.
3. B2B products: Travel packages for business groups, loyalty programs
such as Flying Returns.
4. Amenities: Special boarding procedures, airport lounge for business
travellers.
Page 17
Product Support Services Decisions
1. Utility: Availability of more frequent flights, flexibility in bookings, and
cancellation for businesses.
2. Efficiency: High efficiency in the check-in and boarding procedures for
business travellers.
3. Safety: Compliant with all regulatory and safety requirements.
4. Aesthetics: Business and first-class Seating Aesthetics Appealing for the
professional
5. Ergonomics: Extra spacious leg-space in business class with an
ergonomic seat.
Cannibalisation Possibility
• Beneficial: Offering premium business services without major
cannibalization of economy class.
• Detrimental: Cannibalizing other business class products that the
competitor may be offering such as Indigo or Vistara
Pricing Strategy
• Skimming Strategy
Targeting premium corporate clients with overpriced business and first
class seats.
Page 18
• Penetration Strategy
Competitive pricing for packages to be sold to SMEs.
Ma rket Analysis:
Ma rket Segmentation
Market segmentation for Air India's Mumbai to Bangalore route in B2B can be
divided into the following significant categories:
[Link] Corporations: Companies who have frequent business travel
requirements; typically, business or first-class is booked for the executive team.
They require high-quality services, loyalty programs, and booking flexibility.
[Link] and Medium Enterprises (SMEs): The smaller traveling companies that
most of the times book only economy class tickets but may require corporate
discount and loyalty schemes as well as bulk booking.
Page 19
[Link] Organizations: Government agencies traveling highly frequently
on this route, seeking cost-effective as well as reliable air travel options.
[Link]-Based Segmentation: Organizations like tech companies, financial
institutes, and consulting firms travel frequently between Mumbai and
Bangalore.
Policy
Fuel taxes, regulatory compliances, and bilateral treaties control pricing and
service.
Benefits of domestic carriers to regulatory convenience may Favor Air India.
Economic
The post-pandemic economic rebound has lifted corporate travel sentiments as
demand has improved among SMEs and major corporations.
Inflation and volatile fuel prices will impact the cost of operations, thus possibly
changing price plans.
Social
The increased face-to-face interactions due to the post-pandemic in-person
events are increasing business travel demand. This holds especially true for such
major business route corridors as, for example, Mumbai to Bangalore.
There is an assumption on the part of business travellers that onboard services
should be quality, that flights should arrive on time, and that corporate loyalty
rewards should be ready for business travellers.
Technological
Digital book platforms, touchless mobile check-in, and real-time flight status
are fast becoming norm standards among business travellers.
Availability of Wi-Fi on flights has become an important factor for business
travellers to decide.
Page 10
Legal
Safety rules, consumer protection acts, and labour laws would impact the flying
operations
Data protection legislations need to be respected with regards to the treatment of
data from corporate customers and their loyalty schemes.
Environmental
There is growing pressure on airlines to become more sustainable in their
practices such as carbon offset programs and fuel-efficient fleets, which would
be influential for the corporate travel decisions especially companies that share
some sustainability goals.
Page 11
Other important corporate centres in India, including Delhi, Hyderabad, etc.
help in generating business traffic in this route, as businesses tend to have
branch offices in many cities.
Demand Patterns
1. The demand pattern for flights from Mumbai to Bangalore is always
steady as business activity does not stop between the two cities,
especially in the tech and financial sectors.
2. Peak Travel times happen with business conventions, exhibitions, or the
end of each fiscal year where the nature of corporate travel is more
frequent.
Competitor Analysis:
Competitors Profile
Domestic Competition - India
1 . Indigo: India's biggest low-cost carrier with more frequent flights, price
advantages, and a good record on punctuality. I t also addresses the budget
conscious but efficient corporate clients aside from the individual business
traveller.
Page 12
2. Vistara: It is an upmarket full-service airline which targets high business
travellers by providing good on-board services along with lucrative partnerships
with luxury hotels and corporate travel programs.
International Competitors:
Competition in terms of international carriers like Emirates or Qatar Airways ,
that are majorly focused on international routes should only be indirect through
connection-flying from international routes between Indian cities while offering
a package to MNC's.
Page 13
• The promotions are there for the fiscal year starting, yearend celebrations,
and during the major business conferences happening in Mumbai and
Bangalore.
• Peak Sales promotional seasons, As most business travels tend to happen
during Q4 and Q1, the periods of budget usage and planning thus present
themselves as being synchronous with this. Sales Promotion Budget
Indigo - It primarily expends its budget on 36% digital and media spends
through other web-side social media, the online booking portals and corporate
travel partnerships targeting the business travellers.
Vistara - tends to splurge on premium marketing channels like business
magazines, corporate tie-ups and in-flight promotions marketed for high-end
customers.
Page 14
3. Period of Sales Promotion Activity
The other critical factor is when to offer the promotion. Air India may plan in
terms of the major festivals or occasions that might help increase traveling
demands like local festivals in Bangalore or even a conference on business. For
instance, if the promotion happens before Diwali or New Year, it may attract
more customers. A promotion period should be long enough to let the customers
be aware but short enough to create some sort of urgency.
Planning with a defined budget is an essential aspect for promotion. In this case,
Air India will determine the expected return on investment from conducting
different promotional activities. This budget can include digital media, print
media, and outdoor boards. Evaluating the detailed previous promotions helps fix
an appropriate budget so that the amount of funds is utilized wisely to maximize
reach and impact.
5. Ethical Issues
The ethical issues of advertising and sales promotion are transparency, honesty,
and reasonableness. Here, the promotional message of Air India should not
mislead the passenger in flight schedules, pricing, or service quality. In addition,
they should not make aggressive marketing practices that make customers rush to
reach a decision. Ethical practices have long-term customer trust and brand
loyalty.
Key performance indicators are what can quantify the effects of promotions.
Examples of such KPis include booking rates, revenue generated, customer
feedback, and changes in market share. For instance, an increase in bookings or
in the ratings on customer satisfaction can be considered as successful since the
Page 15
promotional campaign led to that. There's constant tracking and analysis of such
parameters that help keep track of how effective the promotional strategies are
used.
Reviews post-campaign is important to know what worked and what did not. Air
India can carry out performance reviews through booking data, customer
feedback, and gross revenue impact. The review process also includes assessing
the viability of the various channels used in the promotion. Air India can perfect
its strategies in the future.
In the end, Air India's advertisement and sales promotions can be rated as
excellent by increased sales volume, enhanced brand presence in more effective
communications with customers. A successful campaign would bring about
short-term sales spikes but also establish long-term relationships for the brand
and market position.
9. Futu re Recommendations
• Data Analytics: Personalized offers and targeted customer groups data.
Page 16
Mod ule IV - Ma nagement of Sales Team and Relationship
Ma nagement
[Link] and Training: Recruit able salespeople who are well cognizant
about the aviation industry. Ensure that there is constant development on the
products and services, also, on how to deal with a customer.
[Link] and Incentives: Develop incentive programs that drive the sales
team, such as giving them bonuses once they meet the targets or have them
recognized.
[Link] back System: Feedback is taken for betterment of service and solution
of every issue.
[Link] Progra mmes: Loyalty programmes like Air India's Flying Returns
are encouraged so that corporate business is derived through repeat business,
thus making their loyalty even stronger.
Page 17
Mumbai to Bangalore Route:
Industry Segmentation:
IT and Technology: Reach the tech companies of Bangalore that will travel
frequently for conference and client meeting.
Finance and Banking: To reach banks, financial institutions and others that
will travel frequently for the customer service and conferences.
Company Size:
Large Corporates: Target organizations that have assigned travel budgets for
customized services and deals with corporates.
Page 18
SME's: Target small and medium sized enterprises, traveling less than others,
but expecting complete transparency in expenses.
Mild Travelers: Organize promotional deals for those firms that do not travel
so frequently. And compel them to use Air India for their traveling purposes.
Identify and get in touch with the right decision-makers travel managers,
procurement officers, and HR departments to communicate directly and offer
the right value to their needs
Page 19
Executing a Segmentation Strategy:
• Message Tailoring: Construct customized marketing campaigns for each
segment, according to appropriate benefits and service.
• Tailored Communication: Personalized emails, proposals, and
presentations to every segment.
• Performance Tracking: Tracked effectiveness of the segmented
strategies and changed according to levels of response and engagement.
Market segmentation can help Air India do more focused and impactful
B2B marketing strategies for the Mumbai to Bangalore route, thereby
bringing a higher rate of sales and customer satisfaction.
PRODUCT INNOVATION:
Corporate Travel Packages tailored made: Offer tailored travel solutions to
corporate clients, which would be flexibility in booking, discount offers on
group fares, and loyalty rewards for regular travellers.
no. Other Focused Services like appointing a dedicated account manager for
corporate customers dealing with bookings and queries.
Class Upgrades:
The business class experience can be designed with premium amenities that
entail engaging options for meals, priority boarding, and access to lounges.
Offer a "business travel package" with services such as airport transfers; this
would make travel easy for corporate travellers.
Technology Integration:
Have a friendly booking portal that is suited for corporate customers: easy to
browse through their travel itineraries, preferences, payment options, etc.
so Of course, there must be a mobile application where business travellers can
easily change their bookings; get special deals and promotions in real-time.
Page 1
20
Promote sustainable aviation fuel and other environmentally conscious
processes to attract the socially responsible companies.
Revenue-Generating Services:
Provide travel-related ancillary services, such as travel insurance, car rental, and
hotel booking, as ancillaries within corporate travel packages.
Develop partnership with local hotels and transportation services in Bangalore.
Page I 21
Training Sales Teams: Educate sales representatives on new products and
services to ensure they discuss all the benefits with clients.
• Pilot Programs: Offer pilot programs for new products with specific
corporate clients to gather experiences and improve products before a
mass roll-out.
PRICING STRATEGY
Volume Discounts:
Pricing system that offers volume discounts across ticket sales volumes for
corporate clients and, more importantly, encourages greater purchases.
Company-specific discount offers for signing a certain number of flights in
a
quarter or even year.
Dynamic Pricing:
Dynamic Pricing Models: Most common and flexible way of implementing
competitive rates during peak and off-peak seasons is through usage of dynamic
pricing models adjusted according to demand, booking time, and availability.
Flexible Pricing:
Develop flexible pricing that can alter according to the needs of corporate
travel, which are constantly changing.
Bundled Offers:
Bundle up flights, hotel accommodations, and transportation and create
bundled offers, which present added value through cost savings, and simplify
travel planning for businesses.
Page 122
Special Packages for Corporate Events or Conferences; Include for instance
special packages for corporate events or conferences which involve both flight
and group travel discounts.
Corporate Contracts:
Long-term corporate contracts with fixed price agreements and stability and
predictability for companies' travel budgets.
Promotional Pricing:
Specific promotional campaigns can be targeted to offer discounts at specific
times for new corporate clients or travel seasons to encourage bookings now.
Introductory offers to first-time corporate clients to try it out and develop the
relationship.
Transparent Pricing:
No hidden fees pricing structure so that the corporate clients know all what they
are charged and do not mistrust Air India.
Transparent Breakdown of expenses related to bookings so that the business can
determine the expense on the travel and hence easier to keep track of their
expenses.
SUPPLY CHAIN
4. Invento ry Ma nagement:
To optimize the seat inventory for B2B clients so that when the big groups or
frequent traveller clients are booking, there are enough seats available for them.
no Utilize data analytics to forecast demand patterns so that capacity can be
tailored to meet proper corporate travel needs.
Page 124
5. Customized Solutions:
Design solutions for sectors like technology or finance, which may have special
necessities at travel time.
Flexibility in the policies on cancellation, changes, and no-show fees with
corporate clients.
6. Sustainability Practices:
Sourcing with the assistance of local catering services that have a lower carbon
footprint when managing one's supply chain.
Promote these efforts to B2B customers, but only find those that would be
interested in their sustainability objectives.
7. Performance Metrics:
Develop KPis that will monitor how good or bad one's supply chain is about
fulfilling B2B clients' needs and wants, such as on-time performance, customer
satisfaction, and service reliability.
Continuously monitor performance data to discover where one can better
oneself in terms of the quality of one's service delivery.
Page I 25
• Continuous Improvement: Conduct continuous assessments and
adjustments of supply chain practices based on client feedback and
industry best practices.
no
Page 1
26