1 / 23

Conference Details

Research Papers – 22 Nos ROMI in CRM - 4 Papers ROMI in Distribution and Firm Value - 4 Papers ROMI – Measuring Returns - 4 Papers Return on Marketing Investment : A Case Study of Domestic Airline Industry in India Long Term Impact - 2 Papers Services and ROMI - 2 Papers

cornelius
Télécharger la présentation

Conference Details

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Research Papers – 22 Nos ROMI in CRM - 4 Papers ROMI in Distribution and Firm Value - 4 Papers ROMI – Measuring Returns - 4 Papers Return on Marketing Investment : A Case Study of Domestic Airline Industry in India Long Term Impact - 2 Papers Services and ROMI - 2 Papers ROMI and Brand Management - 6 Papers Presentations – 3 Nos International – 14, Indian - 11 Conference Details

  2. RETURN ON MARKETING INVESTMENT: A CASE STUDY OF DOMESTIC AIRLINE INDUSTRY IN INDIA Dr. S C Bansal Associate Professor, IIM, Lucknow Dr. Mohammed Naved Khan Senior Lecturer, Department of Business AdministrationFaculty of Management Studies & Research, AMU, Aligarh Vippan Raj Dutt Manager (System/Maintenance), IT Department, Indian Airlines, N Delhi

  3. Substantial Growth in Domestic Air Market Entry of Low Cost Carriers in 2003 Pressure on all Airlines to Reduce Fares New Marketing Initiatives Need to Measure and Enhance Return on Marketing Investments Need for the Study

  4. Research Objectives • Identify the customer equity drivers that have the greatest impact • Compare performances of airlines on these drivers • Attempt to project ROI from improvements in those drivers

  5. Indian Airlines & Alliance Air (IA) Jet Airways (Jet) Air Sahara (Sahara) Low Cost Carriers (LCC) Air Deccan Kingfisher SpiceJet Airlines Studied

  6. Scheduled Domestic Carriers Full Service Carriers

  7. Scheduled Domestic Carriers Low Cost Carriers

  8. Conceptual Framework Marketing Investment Driver Improvement(s) Improved Customer Perceptions Increased Customer Attraction Increased Customer Retention Cost of Marketing Investment Increased CLV Increased Customer Equity Return on Marketing Investment

  9. The Switching Matrix Provides the probabilities of brand choice for all future purchases by each customer. Customer Lifetime Value Net present value of a customer’s contribution stream Customer Equity Total of the discounted lifetime values summed over all of the firm’s current and potential customers. Return on Marketing Investment change in customer equity—marketing expenditure marketing expenditure Return on Marketing Investment

  10. Value Equity Quality, Price, Convenience Brand Equity Brand image, Brand awareness, and Brand ethics Relationship Equity Frequent flyer programs and ongoing relationship maintenance activities Drivers of Customer Equity

  11. Structured closed-ended questionnaire was used Analysis Performed Principal Component Analysis with Varimax Rotation Multinomial Logit Regression Analysis carried out on extracted components Airlines Performance Evaluated on Value, Brand Equity and Relationship Equity Drivers Brand Switching Matrix CLV, Customer Equity and ROMI calculated Tools Used SPSS Statistical Package MS-EXCEL Spreadsheet Program Research Methodology

  12. Limited number of domestic flights covered Feedback from passengers at a single airport i.e. IGI Airport, Delhi Marketing expenditure breakup of domestic airlines was not available Impact of market dynamics on customer equity is not covered CLV and ROMI calculations are based on assumptions, which may vary across the airlines Limitations of the Study

  13. Airline Wise Demographic Profile Airlines IA Jet Sahara LCC Total GenderMale 21 48 12 35 116 Female 2 12 8 10 32 Highest Matriculation or Below 1 1 1 2 5 Qualification Graduation 5 9 8 11 33 Post Graduation 4 19 5 12 40 Professional 13 31 6 20 70 Age GroupLess than 21 1 3 3 0 7 21 to 40 12 40 10 32 94 41 to 60 10 13 6 10 39 Above 60 0 4 1 3 8 Annual IncomeLess than 5 Lakhs 13 22 9 14 58 Bracket 5 to 10 Lakhs 7 21 3 16 47 10 to 20 Lakhs 2 11 2 7 22 20 to 50 Lakhs 1 4 3 7 15 Above 50 Lakhs 0 2 3 1 6 NationalityIndian 23 57 16 38 134 Rest of World 0 3 4 7 14 Domestic Flights1 – 5 11 33 16 30 90 in last 1 Year 6 – 10 6 14 1 8 29 10 – 20 3 9 3 4 19 Above 20 3 4 0 3 10 Total 23 60 20 45 148

  14. Principal Component Analysis

  15. Airline’s Performance on Value Equity Drivers

  16. Airline’s Performance on Brand Equity Drivers AMA : Airline Media Advertising; ISA : Information Sent by Airline; GCC : Good Corporate Citizen; ASCE: Active Sponsor of Community Events; HES : High Ethical Standards; IFP : Image Fits Personality

  17. Airline’s Performance on Relationship Equity Drivers FFP : Frequent Flyer Programme PF : Preferential Treatment AP : Airline Procedures IAM : Information About Me MRS : My Recognition as Special SC : Sense of Community HLT : High Level of Trust RE : Relationship Equity

  18. Brand Switching Matrix

  19. Airline’s Customer Equity # Air Transport Statistics for the year 2003-2004; source: www.dgca.nic.in Assumptions : Time Horizon = 3 Years Discount Rate = 10 % Contribution Margin = 15 % Change in Customer Equity = 10 % For ROMI Calc. For CLV Calculation

  20. Decision Support System What-if simulators to explore ROI of marketing expenditures Strategic guidance w.r.t. firm’s competitive position of Customer Equity Drivers Tracking Customer Equity Tracking of Customer Equity and its drivers at least twice per year to : monitor competitive trends identify emerging threats and opportunities gauge progress of marketing initiatives Implementation Issues

  21. THANK YOU! vrdutt@indianairlines.co.in

More Related