And now for a very different re-positioning song – one that has left many customers confused. Yes, we are referring to Naresh Goyal’s third airline brand, Jet Konnect.
The slowdown-induced tightening of purse strings possibly hit the air travel sector the worst. The domestic market shrunk significantly and there was a significant shift of air travellers from full service carriers to low cost airlines. Given the changing market dynamics, and to cash in on consumer preference for low cost airlines – Jet Airways’ Naresh Goyal launched a third brand Jet Konnect, which became the second low cost brand from Jet’s stable (after JetLite). Jet Konnect is flying on specific routes to replace many of the Jet Airways (full-service) flights. Now the obvious question that pops up, why a third brand? Why not simply replace the Jet Airways flights by its low cost carrier JetLite? As K. J. Singh, Co-Founder and CEO, Evolve Brands says, “It makes more sense to fly with a single-brand rather than having two separate brands catering similar facilities. JetLite and Jet Konnect have nothing different apart from the routes.” Well Goyal thought of that option first but had to drop it due to the operational and regulatory hiccups, which would have complicated and in turn delayed the shift in the strategy. Thus, a third brand was a quick and easily deployable solution to battle the tough economic times. A smart business strategy!
So what went wrong? Well, Goyal failed to support its strategy with a right marketing plan! As a result, till date, the differentiation between Jet Konnect and JetLite in consumer mind is fuzzy. So much so that many fliers aren’t even aware that Jet Konnect is a separate airline. Many travellers believe that Jet Konnect is yet another scheme launched by JetLite. Binit Somaia, Regional Director, Centre for Asia Pacific Aviation explains, “The challenges which Jet faces is the potential for consumer confusion between the three brands, as well as the fact that Jet Airways and Jet Konnect fall under the same management.”
Ratan Lal Bhagat
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian :- B-SCHOOL RANKING SCAMSTERS EXPOSED!
For Exclusive Footage by Sunday Indian Click Here
Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM exposes Career 360 and Mahesh Peri scam
IIPM - We will change your outlook : Career 360 and Mahesh Peri scam is exposed
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri
The slowdown-induced tightening of purse strings possibly hit the air travel sector the worst. The domestic market shrunk significantly and there was a significant shift of air travellers from full service carriers to low cost airlines. Given the changing market dynamics, and to cash in on consumer preference for low cost airlines – Jet Airways’ Naresh Goyal launched a third brand Jet Konnect, which became the second low cost brand from Jet’s stable (after JetLite). Jet Konnect is flying on specific routes to replace many of the Jet Airways (full-service) flights. Now the obvious question that pops up, why a third brand? Why not simply replace the Jet Airways flights by its low cost carrier JetLite? As K. J. Singh, Co-Founder and CEO, Evolve Brands says, “It makes more sense to fly with a single-brand rather than having two separate brands catering similar facilities. JetLite and Jet Konnect have nothing different apart from the routes.” Well Goyal thought of that option first but had to drop it due to the operational and regulatory hiccups, which would have complicated and in turn delayed the shift in the strategy. Thus, a third brand was a quick and easily deployable solution to battle the tough economic times. A smart business strategy!
So what went wrong? Well, Goyal failed to support its strategy with a right marketing plan! As a result, till date, the differentiation between Jet Konnect and JetLite in consumer mind is fuzzy. So much so that many fliers aren’t even aware that Jet Konnect is a separate airline. Many travellers believe that Jet Konnect is yet another scheme launched by JetLite. Binit Somaia, Regional Director, Centre for Asia Pacific Aviation explains, “The challenges which Jet faces is the potential for consumer confusion between the three brands, as well as the fact that Jet Airways and Jet Konnect fall under the same management.”
Ratan Lal Bhagat
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2010.
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
The Sunday Indian :- B-SCHOOL RANKING SCAMSTERS EXPOSED!For Exclusive Footage by Sunday Indian Click Here
Outlook Magazine's B School Ranking Scam Exposed
Don't trust the Indian Media!
IIPM exposes Career 360 and Mahesh Peri scam
IIPM - We will change your outlook : Career 360 and Mahesh Peri scam is exposed
IIPM: An intriguing story of growth and envy
Prof Arindam Chaudhuri of IIPM on MF HUSAIN
IIPM ISBE Programmes
Follow Arindam Chaudhuri on Twitter
IIPM B School on Twitter
Exclusive In chat with Society Magazine - Prof. Arindam Chaudhuri
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