Tuesday, May 15, 2007

Jetting ahead on quality

Jet airways continues its dominance in the airline sector, reports Businessline. No surprise there right? Why Deccan is not a leader in the airline sector - the reputation Deccan has for quality and comfort is surely lesser than the experience that a Jet or a Kingfisher offers. (Also, it matters, that a lot of air travel is business travel).

In retail too, while Big Bazaar is well known for its cost platform, most of the people I know swear by them for food items only - most others are no longer about cost. Would you buy the cheapest shirt or bedsheet or camera or toy - in all probability not. The performance of Subhiksha has to be watched. Will people continue to patronise low cost stores (and a lower product spread) or do they want more choice and a better shopping experience?

Railways too - in the recent past there is a heavy demand for airconditioned coaches on almost all sectors. Railways have responded by putting in more AC coaches - but in the peak season, it is quite difficult to get a ticket. There is a big big market for premium railway service - I have said this before - high speed intercity services, overnight weekend trains. The premium bus service market is a hit too - perhaps at the cost of railways.

This wont surprise many, but in most markets, like here, low cost does not necessarily mean leadership. Take any sector low cost is only an entry point for new customers, new segments. Once used to a sector customers demand better quality and cost, though important, takes a back seat to real service. Whoever starts off on a low cost platform has to also have a significant high value selling point, otherwise, just low cost will not survive.

2 comments:

Kavi said...

My last post was during a journey. And i am keying this in sitting in a airport lounge !

you are absolutely right. Air Deccans passengers, esp those who are already experienced the low cost fare before, demand parity in service !

I remember, they raised a hue and cry sometime back about a delay in luggage, and the proposition that "I am low cost airline so please bear with me" just doesnt fly !

It can at best be a luring point. Basic services need to be up to the mark !

Also, the low cost platforms help in the entire industry to go. As customers enter "low cost" and migrate to higher-in-the-pecking order organisations !

Neelakantan said...

Perfect. This point can be extended to almost anything.