1

LOVELY
PROFESSIONAL
UNIVERSITY

ASSIGNMENT
NO-3 MGT-634

TOPIC- Sales promotional activities by Air

India.

Submitted by Guided by
CHANDAN KUMAR SINGH MIS JASPREET KAUR

Section-B

Roll number –RT1902-A-27

Reg No:- 10903162

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CONTENT Page no

Acknowledgement……………………………
03
Objective of the
study………………………...03
Introduction of the Air India………………..04
Introduction of Sales Promotion……………05
Sales Promotion offered by Air India……….06
Reasons for such Sales Promotions offered...11
Alternate promotion offers…………………..11
Impact of Sales Promotional tools used by the
Air India……….………………………..……
12
Suggestion……………………………………
13
Conclusion…………………………………...14
Bibliography…………………………………14
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ACKNOWLEDGEMENT
I provide full justice to this term paper which is prepared by visiting
various web-sites, magazines, articles etc.

I would like to take an opportunity to thank all the people in

collecting the necessary information and making of the report. I am
grateful to all of them for their time and wisdom.

My project becomes a reality only due to cooperation of many people

who had helped me in completing this project. I sincerely extend my
gratitude to Mis. JASPREET KAUR who has given me this
precious opportunity to have an know about the organizational
Sales Promotion Strategy.

Objective of the study.

 Increase focus on strategy and results.

 Improve organizational performance by measuring what

are the Sales Promotion tools.

 Improve communication of the organization’s Vision and

Strategy.
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 Basic concepts of the Sales Promotion and how it can be

used to improve organization performance.

Introduction of the Air India.

Air India
एअर इंडिया

Founded July 1932(at Tata Airlines)

Hubs Indira Gandhi International Airport(Delhi)
Secondary Hubs Chhatrapati Shivaji International Airport (Mumbai)
Focus Cities London Heathrow Airport
Fleet Size 31
Destinations 29
Company slogan “your Palace in the sky”
Parent Company NACIL
Head quarters Air India Building Mumbai
Key People J.R.D Tata (Founder)
Arvind Jadhav, CMD
Website www.airindia.com

Air India is a state-owned flag carrier of the Republic of India. It operates a fleet

of Airbus and Boeing aircraft serving Asia, Europe and North America. It is India's
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oldest and largest airline. Its corporate office is located at the Air India
Building at Nariman Point in South Mumbai. It is the 16th largest airline in Asia.
Air India has two major domestic hubs at Delhi and Mumbai respectively and one
international hub at Frankfurt. London acts as a focus city for the airline.
Star Alliance announced on 13 December 2007 that it had invited Air India to join
as a member. Air India is set to become a full Star Alliance member by summer
2011. Air India is a part of the Indian government owned National Aviation
Company of India Limited (NACIL).

Introduction of Sales Promotion

In generally all the efforts made by a firm to increase its sales are included in sales
promotion. "Sales promotion includes these activities other than personal selling,
advertising and publicity that stimulate consumers purchasing and dealers effectiveness
such as displays, shows and exhibitions demonstration and various non recurring selling
efforts not in the ordinary routine." The ultimate aim of the sales promotion is same as
advertising and personal selling i.e. increasing the sale of goods and services.

Kinds of Sales Promotion

There are two kinds of sales promotion
(a) Consumer Sales Promotion: Activities intended to educate or inform the
consumers and those intended to stimulate the consumers.
(b) Dealer Sales Promotion : Activities to increase the interest and enthusiasm of
dealers and distributors.

Consumer Sales Promotion Dealer Sales Promotion

 Sample Dealer Discount

 Price off Dealer Gift
 Quantity deals Dealer Contest
 Coupons Dealer Training
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 Contest Trade Fair & Exhibitions

 Sweep stakes Point of Sale Display
 In product gift Dealer Meet
 Out product gift Corporate Advance
 Bonded offer
 Cross Promotion

Sales Promotion offered by Air India

Business Class LTC- Executive Scheme
ALTC- Executive
Air India introduces the Leave Travel Concession scheme in Business Class for travel on the
Domestic network on the lines of LTC-80 fares offered in Economy Class.
The details of the Leave Travel Concession Scheme (LTC-EXECUTIVE) offered in Business
Class are as under: -

Application
All types of journeys in Business Class on Domestic Sectors.

Period of Application
Effective 7th June, 2009 till further notice.

Eligibility
All Employees of the State, Central Government, Public Sector Undertakings or Educational
institutions recognized/aided by Centre, State Government and or affiliated to any of the
University / Educational Boards and their family members traveling on leave and availing LTC
facility.

Corporate AAA+ Scheme

In order to attract Corporate AAA+ (Government of India Officials) business to travel on
Air India domestic Network, it has been decided to float promotional scheme by way of
travel Together Offer as under:

Highlights :-
Under the scheme 10%disoucnt will be offered on basic fare of Class "D" and "Y" to corporate
AAA+ Government of India Officials (GOI) on their duty travel.
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In cases where Corporate AAA+ (GOI) Official/s travel on their vacation alone or with family
members or family members individually , would be offered 15% discount on basic fare of fare
basis (classes) "D", "Y", "M", "Q", "G" and "X".
Corporate AAA+(GOI) official shall be eligible for an award ticket, on his duty / vacation travel
including his family travel on a given criteria.

Validity : From 01st October 2010 till 31st March

2011, the travel to be completed on or before
31st March 2011.

Eligibility : Officials working with Government of India

can purchase tickets under the Scheme
including family members like, spouse,
children and dependent parents. 

Air India offers “CORPORATE SUPER SAVER” with 12 coupon

concept in both Executive  (CSS12D) and Economy Class (CSS12G). 

Period of scheme: 27th August, 2010 to 30th September, 2010, Extended up to 
31st December 2010.

Validity Validity FFP

Booklet
Class of Fare Basic YQ WO JN for for Multiple RBD RBD Points
z Price
Travel Basis Rs. Rs. Rs. Rs. SaleUp travel User IC AI* (per
Rs.
to Up to coupon)
12 Executive CSS12D 142800 37200 2748 1236 183984 31st 31st Yes D C 750
Dec.10 Dec.10
12 Economy CSS12Q 70800 37200 2748 1236 111984 31st 31st Yes Q G 500
Dec.10 Dec.10
*Bookings for AI code flights can be done 3 days prior to departure only.
UDF and any other additional charges, if applicable to be collected at the point / time of
departure 
or at the time of endorsing the ticket 

Highlights of Corporate Super Savers (12 Coupons)

‘Corporate Super Saver’, facilitates Corporate Houses and Companies with 12

Coupons on all Domestic 
Network and can be used by Multiple Users or Employees belonging to same
Corporate House or a concerned Company. 
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Each Coupon can be used on any Domestic Sector. One single coupon is valid for
travel between any city pair on Air India domestic network (both AI and IC code
flights), where there is no change of aircraft and flight number involved.

Armed Forces and Associated Personnel Discount.

Under this category the following concessions on Economy Class (Indian

Rupees fare) are,

Armed Forces personnel belonging to Indian Army, Navy, and Air

Force. (50%)
Armed forces personnel, recipients of Bravery award. (75%)
Personnel from General Engineering Reserve Force (50%)
War disabled officers (75%)
War widows (75%)
Para Military Forces (50%)
Police personnel-Recipient of Police Medal for gallantry and Presidents’
Police medal for gallantry

Discounts offered on humanitarian grounds

Blind persons & Cancer patients(50% discount)

Locomotor disability for Persons suffering 80% and above (50% discount)
Passenger on stretcher

Concessional fares are offered to

 Senior citizens(50% discount )
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 Students(50% discount)
 Civilian citizens recipients of Gallantry awards (75% discount)
 Sports persons participating in National Sports Events (25% discount)
Arjuna Awardees (50% discount)

SCHEME - I
LUCKY 07 
( Travel 7 Times and Get 1 Free Ticket ) 
Travel SEVEN (07) Times on Air India Network either Domestic / International in
Economy Class ex-Delhi and Get an Economy Class Return Award ticket to any
destination on Air India Domestic Network ex-Delhi.

Modalities 
Any individual travelling 7 Times on Air India Domestic Network / International
in Economy Class ex-Delhi during the scheme period will be eligible for an
Economy Class Return Award ticket (two coupons) to any destination on Air India
Domestic Network ex-Delhi.
 Scheme Period : Travel between 1st October, 2010 to 14th November,
2010.
 Class of Travel : Any RBD in Economy Class.
 Award ticket can be claimed for self or for any Nominee for travel to any
destination on Air India Domestic Network in Economy Class ex-Delhi.
 The offer to be valid on tickets issued across all channels of distribution.
 The Award ticket to be issued from Air India Reservations Offices only on
presentation of original boarding cards specially designed for the Commonwealth
Games 2010 having the Stadium picture on it.
 On issuance of Award ticket, the original Special boarding cards to be
stamped as “UTILIZED UNDER LUCKY SEVEN SCHEME” and returned to the
passenger after keeping photocopy of the stamped boarding cards for office record.
The boarding cards specially designed for the Commonwealth Games 2010 having
the Stadium picture on it will be eligible for the scheme.
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 Claim period : Upto 31st December, 2010.

 RBD for Award Ticket : RBD-G
 Only Government taxes to be payable on the Award ticket.
 Validity of Award ticket : 03 months from the date of issue.
 Ticketing code for Award ticket : LSAW07.
 The Award Ticket can be revalidated as per rules applicable under fare basis
GEIP.
 The above scheme is not combinable with JUMBLE-12 scheme.

SCHEME - II
JUMBLE  12 
Submit TWELVE (12) original Economy Class Boarding Cards, specially
designed for the Commonwealth Games 2010, of Air India Domestic /
International Network flights ex-Delhi and Get an Economy Class Return
Award ticket to any destination on Air India Domestic Network only ex-
Delhi.   

Modalities 
A) An individual presenting 12 original Economy Class Boarding Cards,
specially designed for the Commonwealth Games 2010, travel of Air India
Domestic / International Network flights ex-Delhi will be eligible for an
Economy Class Return Award ticket (two coupons) to any destination on
Air India Domestic Network only ex-Delhi. 

B)  In case a passenger gets 07 original Executive Class boarding cards,

specially designed for the Commonwealth Games 2010, he will be eligible
for an Economy Class Return Award ticket (two coupons) ex-Delhi PLUS
Two Upgrade Vouchers as an additional incentive.
 All the boarding cards may or may not pertain to the same passenger; however one of the
boarding cards should definitely be in name of the individual claiming the Award Ticket.
 Scheme Period : 1st October, 2010 to 14th November, 2010.
 Class of Travel : Any RBD in Economy Class.
 Award ticket can be claimed for self or for any Nominee.
 The Award ticket can be claimed for travel to any destination on Air India Domestic
Network in Economy Class only ex-Delhi.
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 The offer to be valid on tickets issued across all channels of distribution.

 The Award ticket to be issued from Air India Reservations Offices only on presentation
of original boarding cards specially designed for the Commonwealth Games 2010 having the
Stadium picture on it.
 On issuance of Award ticket, the original Special boarding cards to be stamped as
“UTILIZED UNDER LUCKY SEVEN SCHEME” and returned to the passenger after keeping
photocopy of the stamped boarding cards for office record. The boarding cards specially
designed for the Commonwealth Games 2010 having the Stadium picture on it will be eligible
for the scheme.
 Claim period : Upto 31st December, 2010
 Only Government taxes to be payable on the Award ticket.
 Validity of Award ticket : 03 months from the date of issue.
 Ticketing code for Award ticket : AW12.
 The Award Ticket can be revalidated as per rules applicable under fare basis GEIP.
 The above scheme is not combinable with LUCKY 07 scheme.

Reasons for such Sales Promotions offered.

 Sales Managers are under great pressure to produce result quickly.
 Assessment of Sales Promotion is Relatively Easy.
 Costs for result in this industry are relatively low.
 Sales promotion strategy only for target consumer, Trade and The Sales
Force.
 It has flexibility and can be used at any stage of a new product introduction.
Sales promotion is very effective.

Alternate promotion offers.

In today competitive world due to competition every company wants to achieve
our sales target and they are great under pressure. We know that sales promotion is
easier tool for the company to achieve their target. Air India is one of the largest
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companies in India. But due to private company completions they give to better
offer to his customer.

 Give better service for his customer.

 Make positive attitude towards the traveling experience.
 Gives extra incentive to the customer to make a new tour.
 Gives direct inducement to take immediate action now rather than later.
 Give the extra benefits to his customer during the traveling.
 Reduce the cost of traveling.
 Reduce the cost of maintains.
 Improve the services.

Impact of Sales Promotional tools used by the

Air India.
Passengers flying on domestic flights of Air India during the month of September
are a happy lot. The airline has improved its on time performance at Mumbai
airport to 95% till September 22, 2010 and has sent all its flights on the domestic
network on time for 5 days on 12,19,20,21 and 22 September 2010.
It achieved a hat trick on 19, 20, 21 and 22 September 2010 when it recorded a
100% on time performance for its domestic flights. The international flights
operated from the CSI airport including Air India Express also recorded a 100% on
time performance on 21/22 and 22/23 September.
Team work and better coordination with allied agencies has helped us, to improve
our performance and provide better service to passengers. We shall continue to
work at it, say Air India employees who now move around with a spring in their
step.
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Recently Air India has been ranked as the” Most Trusted Brand “in the Aviation
sector in the country in the Economic Times Brand Equity survey 2010 and has
also won the Readers’ Digest Trusted Brand Gold Award for the fifth consecutive
year.
The airline’s domestic network covers 63 destinations including far flung areas of
the North east, Ladakh, Andaman and Nicobar Islands while its international
network has 52 destinations across the USA, Europe, Canada ,Far East, South East
Asia, and the Gulf. Air India’s present fleet of 135 aircrafts comprises a mix of the
wide body B777s, B747s, A330s and the narrow body Airbus A-321s, A-320s, A-
319s, and the B-737s.

An impressive increase of 24.8 per cent in passenger carriage and 14.4 per cent rise
in load factor reflects a significant improvement in Air India’s operating
performance in the quarter October-December 2009, as compared to the same
period last year.
Air India carried 3.17 million passengers in October-December 2009, as
against 2.54 million in the same quarter last year.  Likewise, load factor rose
from 55.3 per cent in October-December 2008 to 69.7 per cent in October-
December 2009. 
As a consequence of higher passenger carriage and improved load factor, the
operating loss showed a significant 25 per cent reduction from Rs 1152.44 crore in
October-December 2008 to Rs 864.33 crore in October-December 2009.  The net
loss also showed a 9.7 per cent decline – from Rs 1632.23 crore to Rs 1473.85
crore. 
However, in view of low yields on both the domestic and international routes due
to market conditions, the total revenue registered a modest increase of three per
cent from Rs 3738.59 crore to Rs 3852.14 crore.

Suggestion.
To earn more or more profit Air India should only focus to his permanent
costumer who is travel every day. Like the business man and the other class
people. In the middle class people also want to travel in Air Lines but due to
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cost of the traveling is very high so they not travel in the Air lines. So
according to my point of view if the Air India reduces the cost of maintains
then they provide the chief services. It is the big opportunity of the Air India.

 Reduce the cost of traveling.

 Focus on middle class people.
 Focus on lower income people.
 Provide better service in term of lowest cost.
 Provide proper knowledge to customer.

Conclusion.
According to the present situation of market. I found that the immediate
competitors of Air India are the Jet Airways & Kingfisher Airlines.

I feel that there is need for increasing or boosting the promotion of Air India in the
market. Air India wants to show their strong presence in Indian market. Air India
has 1st position in this market. Low profit, better service and low margin rates
make a deadly for the consumers for whom Air lines industry. The overall
performance of the company in India is good. So we say that overall performance
of a service sector is depends on one thing that is better service.

Bibliography.
www.wikkipedia.com
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www.airindia.com

www.scribd.com

Book: Advertising and Promotion

Kurti shah & Alan D’souza