SpiceJet: Smooth takeoff, turbulent landing

The negative route that this campaign has taken is pretty interesting, but the commercials leave you as cold as airline food

Low-cost carrier, SpiceJet, has been running 'negative' advertising to make its presence felt. In the sense that they trash stuff dished out by other airlines to make their own offerings appear to be superior. |

It's not a bad idea, given the number of more high-profile airlines in the Indian skies. But then the renditions of the thought have to be stark and witty for the idea to work. Else, it crash lands.

The earlier ads in the campaign, if you recall, featured the voiceover of actor Boman Irani, as he brought out the travails of folks who made the 'mistake' of choosing other airlines. In one, a honeymooning couple is allotted seats in different rows. In another, a frequently-flying dad brings home lollipops for his very pissed-off son, because he blew up all his monies on flying. In another one, a broke dude takes his children on vacation to the same destination each year, he is always cash-starved as well.

The series continues, but now they are discussing great food on board SpiceJet. And for some reason, Irani bawa has been dumped and a younger bawa Cyrus Broacha brought in. Though in my view Boman has a better voice, especially for such commercials. In the new TVC, a harried housewife is seen being tormented as she has to wake up at an unearthly hour to serve her hubby a warm meal, as the broke bugger always takes the last, cheapest flight back home. And then we are informed SpiceJet now serves you piping hot meals, so no need to disturb the missus. Another commercial is quite off-putting. In this one, a passenger's tummy sends out loud noises, thus upsetting fellow passengers. No, he hasn't wrapped a bomb around his body (though that's what American passengers would presume), he's refused to eat the cold food served on board a rival airline, and his stomach is protesting loudly.

Well, like as I said, while the negative route is pretty interesting, the commercials leave you as cold as airline food. They are too literal, non-humorous (despite Boman and Cyrus doing their bit in the audio) and un-engaging. One needed very surprising solutions to pull off this strategy. And when they have tried to the push the envelope a bit, through the stomach-churning ad, it actually makes the viewer's stomach churn rather than leave a favourable impact. Net-net: SpiceJet has hit a creative air pocket.

Before I go away, two important questions: One, does SpiceJet offer the meals for free, or will I have to pay big bucks to get my hands on them? That is left unanswered. Two, if these low-costers are too broke to serve us a bottle of water on board, how do they find monies for such a massive marketing blitzkrieg on TV?

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COMMENTS

ucd

7 years ago

Spicejet, for one, does not provide landline or mobile numbers at the airport to enquire about delayed flts. The toll-free number, with its myriad prompts of press this and press that, takes the best part of half-an-hour to get any results. All we want to know is what happened to the flight that was scheduled to leave 90 minutes ago and has not arrived destination after a 60-minute flight duration. And we would like a human beding to answer that unusual situation!

yash singh

7 years ago

What rubbish!! they do serve water as much as u want ...who told u this may be u didnt travel by either of them. food prices are reasonable ...they are running an airline for profit..that is hw they get money

V Malik

7 years ago

Ample potable water onboard for providing to passengers is a requirement for aircraft licencing as per DGCA and while you can not fight for free drinking water on board, you can surely buy a bottle, and then write a letter with the receipt, complaining that you were not provided with drinking water.

REPLY

abc

In Reply to V Malik 7 years ago

Who has the time to send a complain ? we all have work to do not sit useless like u .. Anil has a valid point

JLR performance boosts Tata Motors’ Q2 net

The company plans to spend between Rs2,500 crore to Rs3,000 crore towards capital expenditure. It also plans to introduce new product lines and improve volumes

Tata Motors on Tuesday reported a massive 102-fold jump in its consolidated net profit for the second quarter ended 30th September at Rs2,223 crore on the back of robust domestic sales, strong profitability and healthy volume growth in its subsidiary Jaguar Land Rover. The consolidated profit stood at Rs22 crore in the corresponding quarter last year.

"The turnaround in the company's consolidated net profit is mainly due to the domestic business which registered a much better performance and strong profitability with healthy volumes in Jaguar Land Rover," Tata Motors chief financial officer C Ramakrishnan told reporters.

"Both wholesale and retail volumes improved favourably as compared to the corresponding quarter in the prior year, on the back of improved market conditions and continued overwhelming response," a company statement said.

The home-grown auto giant has witnessed a 36% growth in commercial vehicle sales in Q2 FY11 and a significant volume growth in its Nano model, Tata Motors managing director-India operations PM Telang said.

"The consolidated revenues (net of excise) in Q2 FY11 increased to Rs28,782 crore, a growth of 36.5% over the Rs 21,088 crore posted in the corresponding quarter of the previous year, with a strong volume growth globally in all major markets," Mr Ramakrishnan said.

Religare Capital, a brokerage firm, opined that Tata Motors' second quarter net profit beat market estimates due to a commendable performance from Jaguar Land Rover (JLR) business. JLR business reported an EBITDA margin of 16.6% - an improvement of 110 basis points (bps) q-o-q as against an expected decline of more than 100bps.

The highlights of the JLR performance were a q-o-q increase in per unit realisation of 6.6% on the back of a better product and geographic mix, and lower operating expenses resulting from cost reduction exercises/lower variable expenses.

Favourable macroeconomic conditions, good monsoons and good finance availability led to robust domestic demand during the quarter, resulting in volume growth across all segments, Tata Motors said.

In the domestic market, Tata Motors' commercial vehicle sales increased 23.4% year-on-year to 1,10,630 units. The company's market share in commercial vehicles was a robust 61.1%, Mr Ramakrishnan said.

BRICS Securities, another brokerage firm, stated that Tata Motors would be the biggest beneficiary of a turnaround in the commercial vehicle cycle.

The company plans to spend between Rs2,500 crore to Rs3,000 crore towards capital expenditure, Mr Ramakrishnan said, adding that it also plans to introduce new product lines and improve volumes.

The auto major said it plans to assemble the Land Rover SUV in India from early next year, besides it is also setting up assembly units to produce JLR brands in China, JLR's CEO Ralf Speth told the media. It also hopes to add Jaguar cars to the assembly plant at a later date, Mr Speth added. The company is also planning to assemble Land Rover SUVs in China.

(This article is based on secondary research. The report is for information only. None of the stock information, data and company information presented herein constitutes a recommendation or solicitation of any offer to buy or sell any securities. Investors must do their own research and due diligence before acting on any security).
 

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Personal finance Wednesday

Kotak Mahindra Bank hikes term deposit rates by up 25 bps; UTI Mastershare declares 24th consecutive dividend; SBI Life launches SMS-based customer care services; BNP Paribas MF launches BNP Paribas Fixed Term Fund-Series 19 D; IDFC Mutual Fund unveils IDFC Fixed Maturity Plan-Half Yearly Series 12; Kotak Mahindra MF introduces Kotak FMP 15M Series 6; BNP Paribas MF floats BNP Paribas Fixed Term Fund-Series 19 D

Kotak Mahindra Bank hikes term deposit rates by up 25 bps

Kotak Mahindra Bank hiked its base rate by 25 basis points to 7.75% for the second time since July 2010 when the new base rate regime was introduced. Senior citizens will enjoy additional 50 basis points across maturities.

KVS Manian, group head, consumer banking, Kotak Mahindra Bank said, "The increase in lending rates is reflective of the higher cost of borrowing. Recently, we have hiked our deposit rates to the tune of 25 basis points across some maturities.
 
This has resulted in higher cost of funds." Manian said the loan book was unlikely to be impacted by the rate hike. "The home loan segment, which is linked to the base rate could see some impact but there is enough demand in the market."

UTI Mastershare declares 24th consecutive dividend

UTI Mastershare declares tax free dividend of 30% (Rs3 per unit on a face value of Rs10) i.e. dividend of 27.5% for the year and additional dividend of 2.5% for ensuing the silver jubilee year of the scheme. The record date for the dividend is 15 November 2010.

Pursuant to the payment of dividend, the net asset value (NAV) of the dividend option of the scheme would fall to the extent of payout and statutory levy if any. The NAV per unit as on 9 November 2010 was Rs34.93 under the dividend option.

All unitholders registered under the dividend option of UTI Mastershare as on 15 November 2010 will be eligible for this dividend. Also investors who join the dividend option of the scheme on or before the record date will be eligible for the dividend.

UTI Mastershare is the first diversified equity scheme of the country. The scheme is entering its 25th year of existence and is trusted by more than 6,58,000 investors.

UTI Mastershare is a large cap oriented fund that invests, in a well diversified portfolio of fundamentally strong companies and avoids sector and stock concentration.

UTI Mastershare is an equity-oriented scheme, which aims to provide unitholders the benefits of capital appreciation and income distribution through investment in equity/equity-related instruments, fully convertible bonds/debenture of companies.

 SBI Life launches SMS-based customer care services 

SBI Life Insurance launched SMS-based initiative called 'SMS Solve' to effectively address the grievances of customers.

Customers can register their grievances about SBI Life services by sending an SMS Solve to 56161.

The message along with customers' mobile number, date and time of message is automatically registered at the central server of SBI Life's central processing centre, which are then handled by trained customer care executives from the V care cell.        

Customers will also get a follow up call after serving of their problem and sent a message intimating the closure of the request.

BNP Paribas MF launches BNP Paribas Fixed Term Fund-Series 19 D

BNP Paribas Mutual Fund has launched BNP Paribas Fixed Term Fund-Series 19 D, a close-ended income scheme.

The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of fixed-income securities maturing on or before the maturity of the scheme.

During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opens on 10th November and closes on 15th November. The exit load for the scheme is nil. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Fund Index is the benchmark index. The scheme will be managed by Alok Singh.

IDFC Mutual Fund unveils IDFC Fixed Maturity Plan-Half Yearly Series 12

IDFC Mutual Fund unveils IDFC Fixed Maturity Plan-Half Yearly Series 12, a close-ended scheme.The primary objective of the scheme is to generate income by investing in a portfolio of debt and money-market instruments maturing before the maturity of the scheme.During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opens on 10th November and closes on 11th November. The exit load for the scheme is nil.

The minimum investment amount is Rs10,000.CRISIL Composite Bond Fund Index is the benchmark index. Anupam Joshi is the fund manager.

Kotak Mahindra MF introduces Kotak FMP 15M Series 6

Kotak Mahindra Mutual Fund has introduced Kotak FMP 15M Series 6, a close-ended income scheme.

The investment objective of the scheme is to generate returns through investments in debt and money market instruments with a view to significantly reduce the interest rate risk.

During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opens on 10th November and closes on 15th November. The exit load for the scheme is nil. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Index is the benchmark index. Deepak Agarwal and Abhishek Bisen are the fund managers for the scheme.

BNP Paribas MF floats BNP Paribas Fixed Term Fund-Series 19 D

BNP Paribas Mutual Fund has launched BNP Paribas Fixed Term Fund-Series 19 D, a close-ended income scheme.

The investment objective of the scheme would be to achieve growth of capital through investments made in a basket of fixed income securities maturing on or before the maturity of the scheme.

During the new fund offer (NFO), the units will be offered at face value of Rs10 per unit. The NFO opens on 10th November and closes on 15th November. The exit load for the scheme is nil. The minimum investment amount is Rs5,000.
CRISIL Short Term Bond Fund Index is the benchmark index. Alok Singh is the fund manager.
 

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