Tag: history

  • Nutella: 60 Years of Smile | History of Nutella

    Chocolates are something that we all love. After chocolates, there is another thing that makes us drool. This is our very own Nutella.

    Nutella gives a tough competition to people’s love towards chocolates. Whether you want a spread for your bread or something sweet to eat, Nutella is probably the first name to pop up in the head.

    Nutella is a part of chocolate lovers’ favourite company Ferrero. The spread is a specialized mix of hazelnut and chocolate. This simple yet unique combination makes the spread the ultimate love of everyone.

    Nutella has been with us for many decades now. Indeed, it is a tried, tested, and lovable brand.

    Origin og Nutella – Back to World War II
    The Birth of Nutella
    The Global Expansion of Nutella
    The Supply Expansion Problem and Solution of Nutella
    The Popularity of Nutella
    Keeping up With Marketing Trends
    Nutella Timeline

    Origin of Nutella – Back to World War II

    The history of Nutella is quite older than we could think of. Its history can be traced back to the time of World War II. During that time, markets faced a shortage of cocoa.

    In Italy, in the year 1946, there was a chef named Pietro Ferrero. He noticed this shortage and decided to do something about it. So, he created a paste mixed with loads of hazelnuts and some chocolate. He then made blocks of this paste and started selling.

    These blocks were first cut into slices and then used between slices of bread. The mothers would make sandwiches with these chocolate slices. The children began to love the chocolate flavour. This made these blocks quite popular among the locals.

    Pietro then had an idea to make these blocks creamier in texture. A creamier texture would help it to spread easily on the bread. He spent days making certain changes to make it creamier like a spread. The resulting product made was then called ‘Supercrema Gianduja’.

    The Birth of Nutella

    Michele Ferrero - Founder of Nutella
    Michele Ferrero – Founder of Nutella

    In the year 1964, Pietro’s son, Michele tried to modify his father’s recipe. He wanted to make certain improvements to ensure the finest quality of the spread.

    This was the first time that a jar mixed with rich cocoa and hazelnuts got made. Pietro’s son gave a lot of thought and decided to name it ‘Nutella’.

    The names came into existence by combining two words. The first ‘nut’ from ‘hazelnut’ and ‘Ella’, a suffix of positivity. The letter ‘N’ in the logo is in black and the rest of the letters are in the colour red. Ferrero had to keep the letter N in black due to trademark issues. There was another brand that used the name Nutella. So, to keep it different, he changed the colour of the letter ‘N’.

    This was the year (1964) when our beloved Nutella came into existence. Since then, this sweet and savoury jar of spread has become a go-to choice for breakfast.

    The Global Expansion of Nutella

    Global Expansion of Nutella
    Global Expansion of Nutella

    In the following years, Nutella began its journey on becoming a global brand. In 1965, one year later of its launch, it took over the German market. Then it started its expansion over other markets.

    In 1967, Nutella made its Italian television debut. It appeared on a television program, Carosello. This first advertising campaign by Nutella took over the hearts of Italy.

    After Italy, Nutella became super popular in France and Germany. The children from various countries began to cherish this delicious spread. This encouraged Nutella to expand itself in more countries.

    The brand has used strategic planning for its expansion. It conducts deep research before entering any new market. It considers various factors. These include checking competitors, market space, availability of raw materials, etc.

    Nutella was quite sceptical about entering the markets of Britain. The people’s interest there was too invested in another spread named Marmite. But as it’s said, interests can change. Nutella was never a quitter. It created special campaigns, which were specific to the country. At last, it came in Britain’s markets and hereafter outdo Marmite.

    The Supply Expansion Problem and Solution of Nutella

    As the brand began to become global, the supply of jars increased. Nutella has various plants around the world for its production. There are plants in Canada, Australia, Italy, France, Germany, Russia, and more. The first Nutella plant was established in 1978, in Lithgow, near Sydney. But with increased production, there arose a problem. It was the shortage of supply.

    Ferrero uses hazelnuts in large amounts. It was quite predictable that they would not be able to buy anymore as there would not be enough of it. So, the company came up with a patient yet a fruitful idea. It was to plant their trees.

    In the 1990’s the process of planting trees began. 6.6 million trees have been planted and more plantations are in their plan. These plantations helped the company get rid of its major future problem. This also created trust among the customers as it ensured the greatest purity.

    The Popularity of Nutella

    Nutella’s amazing taste and great advertising over time made it popular. It became so popular that there is now a World Nutella Day. It came into existence on 5th February 2007. It’s celebrated every year since then.

    The greatest strategy that contributed towards the company’s success is keeping up with the time. Since the earlier times, Nutella has always come up with relatable and trendy advertisements.

    Nutella company has always shown happy families enjoying their jar together. This helped it become a family-friendly product. Such ads made people consider Nutella as a jar full of joy.

    The company likes to keep up with the new generation’s customers. It was one of the first corporate to plunge into the sea of social media. People liked to share their experiences with Nutella. They were sharing recipes, tweeting, and making videos around it.

    In 2014, there were 17 million tweets that contained the term Nutella. People even made YouTube channels about Nutella.

    Nutella’s jump into social media proved to be successful for the company. They now create online campaigns to attract more consumers.

    In 2014, Nutella company celebrated its 50th anniversary with a global campaign. It was ’50 Years Full of Stories’. In this campaign, Nutella asked its huge fan base to share their experiences or stories with Nutella. By sharing images, texts, or videos, the fans would get a chance to win prizes.

    This campaign was a shift from the company’s earlier advertisements. Earlier the company focused on educational and regional specific ads for promotions. However, with the changing times, Nutella’s strategies have also changed and are keeping up with the trends.

    In 2024 Nutella launched its new campaign, Always Better Together. The “Always Better Together” Nutella campaign highlights the idea that Nutella enhances every moment, making them even better. The campaign emphasizes that Nutella can make mornings brighter, bring loved ones together, and inspire families to create joyful memories.

    Nutella Timeline

    • 1946: Pietro Ferrero creates “Giandujot”, a sweet hazelnut and cocoa paste shaped like a loaf, named after a local carnival character.
    • 1951: The recipe evolves into a creamy spread called “SuperCrema.”
    • 1964: Michele Ferrero, Pietro’s son, refines the recipe and launches it as “Nutella.”
    • 1965: Nutella gains popularity across Europe, starting in Germany.
    • 1966: Nutella was launched in France.
    • 1978: Nutella expands globally with the first production plant outside Europe, in Australia.
    • 1996: 30 years of optimism in France
    • 2005: On May 29, in Gelsenkirchen, Germany, 27,854 people set a Guinness World Record for the “Largest Continental Breakfast Ever” featuring Nutella.
    • 2007: World Nutella Day is established by fans to celebrate the spread.
    • 2011: Nutella’s global Facebook page gained 10 million fans within just one year.
    • 2012: Nutella & GO! with Breadsticks launched in the USA
    • 2014: Nutella marks its 50th anniversary, with events and campaigns worldwide.
    • 2015: Nutella reached 30 million fans on Facebook
    • 2017: On May 31, Nutella opened its first restaurant in Chicago, offering fans a unique experience with a wide menu of delicious Nutella recipes.
    • 2020: The Nutella Muffin were first launched in Italy, it’s now available in Europe and the Gulf.
    • 2023: Since its launch, the Nutella croissant has delighted European consumers with its flaky pastry and delicious Nutella filling.
    • 2024: 60 years of smile!

    Conclusion

    Nutella, the delicious mix of chocolate and hazelnuts is now a global product. It is not only the good taste but also the company’s great strategies over the years that have made this brand so huge.

    Nutella is no more just a jar; it is like an emotion now. It is like a cure for loneliness and sorrows for children and teens. Thus, Nutella has created a huge place in people’s hearts. Now, it is like an absolute leader in the market making every other competitor look inferior to it.

    According to the Guinness book of world records, Nutella has also won the title of ‘Largest Continental Breakfast’, where 27,854 people were gathered to celebrate the 40th anniversary of Nutella.

    FAQs

    Why is Nutella banned?

    Nutella has been pulled off from Italian supermarkets over the claims that its ingredients may cause cancer.

    Who is the biggest consumer of Nutella?

    France is the biggest consumer of Nutella, the factory in Nutella makes 100,000 tons of chocolate spread.

    Why is the N in Nutella black?

    The letter ‘N’ is in black because there was already a company named Nutella, so Ferrero had to keep the letter N in black due to trademark issues.

    What is Nutella logo meaning?

    The Nutella logo, with “Nut” in black for trust and “ella” in red for joy, symbolizes reliability, energy, and universal appeal in a simple, modern design.

    What is Nutella origin?

    Nutella originated in Piedmont, Italy, in 1964. It was created by Michele Ferrero, who refined an earlier hazelnut paste called SuperCrema. The spread was initially made to be more affordable, using local hazelnuts, which were abundant in the Piedmont region, combined with cocoa. Nutella quickly gained popularity and became a global favorite.

    When and where was Nutella invented?

    Nutella was invented in a town named Alba in Italy in 1964.

    Where does Nutella come from?

    Nutella is made by first roasting hazelnuts and grinding them into a smooth paste. This paste is then mixed with sugar, cocoa, milk powder, and palm oil to create a creamy texture. The ingredients are blended together until smooth and consistent. Finally, the spread is packaged and sealed for distribution, ensuring the perfect balance of flavor and creaminess that Nutella fans love.

  • Jet Airways Case Study: Soaring High, Crashing Down, Reviving Hope, and the Final Descent

    The Jet Airways case study is now so popular that it is mentioned in almost every Business School’s curriculum due to the airline’s unimaginable debacle. Founder Naresh Goyal has been investigated by the Enforcement Directorate (ED) and a large number of ex-employees have remained jobless after the airline shut down its operations in April 2019. April 2020 reports revealed that around 4000 employees were still on the rolls of Jet Airways, and these employees were facing tough times in the absence of any regular source of income.

    Jet Airways’ shutdown is often considered one of the biggest organizational failures to have occurred in India. A lesson for many, this post covers the journey of Jet Airways and digs deep into the reasons for its failure. If you ever wondered, “Is Jet Airways coming back?”—the answer was yes, until the Supreme Court’s recent order in November 2024 for its liquidation.

    After its collapse, Jet Airways declared bankruptcy, and on 17 April 2019, it decided to shut down operations temporarily. Some of its assets have gone to other airlines while a few aircraft remain parked till the bankruptcy proceedings are completed.

    In this Jet Airways case study, we will delve into the Jet Airways insolvency case, which will cover the Jet Airways introduction, the history of Jet Airways, the downfall of Jet Airways, and the hopes for resuming its operations and the final descent. So, let’s get started!

    Indian Aviation Industry
    Jet Airways History
    The Consequences of the Downfall of Jet Airways
    Similar Cases In Aviation Industry
    The Common Link In All Of These Cases
    Reasons Behind Jet Airways Bankruptcy
    Buying Proposals
    Jet Airways 2.0 Vision
    Jet Airways Revival and Descent

    Indian Aviation Industry

     Jet Airways Failure Case Study - Jet Airways' Planes
    Jet Airways’ Planes

    Aviation is an under-saturated sector in India. As more and more Indians choose flight as the best means of travel, the availability of aircraft is yet to catch up with this growing trend. For the numbers, India has 771 commercial aircraft for a population of over 1.4 billion.

    To add to the aviation industry’s woes, the majority of Indian airports are not up to the mark in terms of infrastructure. For instance, most of the airports in India have only a single operational runway, whereas countries like the US have no less than 5 runways.


    Why Did Thomas Cook Collapse | A Case Study
    Thoman Cook Group was a British travel company which operated as both, an
    airline company and a tour and travel firm. The Group was founded after the
    merger of Thomas Cook AG and My Travel group in 2007. However, the brand “Thomas
    Cook” is 178 years old and was trusted by travelers globally. Recentl…


    Jet Airways History

    Naresh Goyal started Jet Airways with 4 leased Boeing 737 aircraft in 1993. The airline was the paragon of success for domestic carriers in India. There were rumblings of trouble brewing within Jet Airways in August of 2018 when the company deferred the second quarter results of that year.

    The government watchdogs got a sniff of discrepancies in the airline’s financials. In the same month, the DGCA (Directorate General of Civil Aviation) conducted a financial audit of Jet Airways. It was based on the reasoning that the deferment of employees’ salaries ought to affect their morale and attitude.

    The same month, Jet Airways posted a loss of INR 1323 crores.

    In September of 2018, the Income Tax department surveyed the Delhi and Mumbai offices of Jet Airways. The company was then accused of financial misappropriation. Naresh Goyal, who was then the Founder-Chairman of Jet Airways, also came under the radar of the government and its law enforcement agencies. He and his wife, Anita Goyal stepped down from Jet Airways’ operations on March 25th, 2019, after the financial crisis that the airline company was in, came in front of everyone.

    Jet Airways founder Naresh Goyal and his wife Anita, were stopped from leaving India by immigration authorities at Mumbai airport. They were offloaded from a Dubai-bound Emirates flight, which was called back after it had reached the taxiway at Mumbai airport on May 25, 2019, since then, he was stopped from flying out of India.

    There were charges of money laundering and foreign exchange violation against Naresh, and this led the Enforcement Directorate to question him in September 2019. He was detained and questioned again by the ED in 2020.

    In 2023, Goyal was accused by Canara Bank of defrauding them of INR 538.62 crore. He was arrested by the Enforcement Directorate (ED) in September 2023 for using company funds for personal expenses. His wife, Anita, was also arrested in November 2023 but got bail due to health reasons. Unfortunately, Anita passed away on May 16, 2024.
    On November 11, 2024, the Mumbai High Court granted Goyal permanent medical bail for his cancer treatment. He had been on temporary bail before, which was extended several times. The ED opposed it, saying he could get treatment in jail, but the court allowed him to seek care outside.

    The Consequences of the Downfall of Jet Airways

    Jet Airways shut down its operations temporarily on 17 April 2019. The last flight was from Amritsar to Mumbai. The shutting down of the company affected 20,000 employees and more than 60,000 people indirectly. At the time of its closure, Jet Airways was reported to be in debt by over a billion dollars. NAG (National Aviator’s Guild) appealed to the PMO (Prime Minister’s Office) and then-Civil Aviation Minister Suresh Prabhu to help the company and its employees.

    Case Study on Jet Airways
    Jet Airways Employees Pleading with the Government to Save the Company

    The government on the other hand reportedly asked the banks to save the company without pushing it to bankruptcy. With unemployment being a major electoral issue for the government, an addition of 20000 to the list of jobless Indians will only give more substance to the opposition. The Government was therefore pulling out all the stops to prevent Jet Airway’s insolvency.

    Jet Airways Case Study - Jet Airways Employees Lit Candles
    Jet Airways Employees Lit Candles, Pleaded the Govt. to Save the Company and Their Jobs 

    Consequences have been of such an unprecedented level that an employee of Jet Airways committed suicide in Mumbai. Shailesh Singh was a cancer patient and was on a break from his job as a senior technician at Jet Airways. He jumped from his building due to depression on 27 April 2019.


    Learn How to Avoid Bankruptcy | How to Manage your Budget
    Millions of people these days are trying to establish their own startup despite
    having a simultaneous regular job only to make sure that their total gross
    income is enhanced. The startup business of any magnitude is a great independent
    source of increasing your income, and if you are able to establi…


    Similar Cases

    It is not the first time that an airline company has fallen from grace. Many companies before Jet Airways have seen a similar fate. Some of them are:

    • Kingfisher Airlines
    • Air Deccan
    • Air India Cargo
    • Indian Airlines
    • Sahara Airlines

    The Common Link In All Of These Cases

    The common link in all of the above examples is that they all were, at some point, involved in a merger.

    Jet Airways Case Study - Deccan Airlines Plane
    Deccan Airlines Plane
    • Kingfisher Airlines bought Air Deccan. Kingfisher was a full-service airline, whereas Air Deccan was a low-cost airline. When Kingfisher bought Air Deccan, it incorporated some changes in Air Deccan’s fleet and we all know what happened after that. Both the companies faced a downfall.
    • Before Air India and Indian Airlines merged, both of them were doing reasonably well. However, after the merger, Air India has struggled financially, with mounting debt and operational issues. As of 2021, Air India’s debt stood at over ₹61,000 crores, and despite the government’s efforts to revive the airline, it has yet to return to profitability.
    • Jet Airways merged with Sahara Airlines and Jet rebranded Sahara as “Jet Lite”. Over time, Sahara Airlines faded into oblivion, and Jet Airways, despite its initial success, later faced a similar downfall, eventually shutting down its operations in 2019.

    Therefore, it won’t be wrong to say that mergers and acquisitions in the case of airlines are a risky bet. A successful airline establishes a unique identity of its own, and meddling with its brand and presence usually ends on a negative note.


    Tata Nano Case Study | Tata Nano Failure Case Study
    Tata Nano Case Study- Tata Nano Failure case study on what went wrong with Tata Nano to attract customers despite being termed as the ‘people’s car’.


    Reasons Behind Jet Airways Bankruptcy

    There are many reasons behind the failure of Jet Airways:

    Merger

    The merger between Sahara Airlines and Jet Airways was a mistake on Jet Airways’ part. Sahara was acquired by Jet Airways for $500 million which was way above what the airline was worth.

    Jet Airways Case Study - JetLite Plane
    JetLite Plane

    Rebranding Sahara Airlines

    Jet Airways renamed Sahara Airways as JetLite. Sahara at the time was a powerhouse with its name on every Indian’s tongue. The rebranding cost Jet Airways a major chunk of its customers; flyers who were attracted to the Sahara brand image couldn’t resonate with JetLite.

    Mismanagement

    Every company and organization rests on the abilities of its management board; there are no second opinions to this school of thought. Naresh Goyal, the founder of Jet Airways, decided to become a one-man army for Jet Airways and did not hire a sound management committee to assist him in running the airline. Insiders often talk about his poor financial acumen. He relied on a single management team to handle all the operations related to Jet. Understanding that specialized teams are needed to run different departments is no rocket science. And when you acquire one more airline, you can’t rely on your existing management board that’s already burdened to take up additional responsibilities!

    Jet Airways Case Study with Solution
    Jet Airways’ Founder and Former Chairman, Naresh Goyal

    Full-Service Airline

    Full-service airlines offer passengers the choices of economy, business class, premium economy, and first class on their flights. The company was operating as a full-service airline. Operating as a full-service airline in India is not an easy task. One needs formidable financial support and customer relationships. Catering to the wealthy, the middle class and the lower sections of Indian society requires strategy and operational excellence beyond imagination. That is why most of the companies focus on the middle-class segment and keep the prices as low as possible. Jet Airways was biting off more than it could chew.

    Drowning in Debt

    Jet Airways was never good with money. It kept on incurring debt and spending more than its revenue. The employees were paid lavishly when compared to the industry standards. For the sake of providing comfort and luxury, the Naresh Goyal-backed airline compromised with finances.


    Why Did Kodak Fail? | Kodak Bankruptcy Case Study | Reason Behind Kodak’s Failure
    Kodak, as we know it today, was founded in the year 1888 by George Eastman as ‘The Eastman Kodak Company’. Kodak was the most famous name in the world of
    photography and videography in the 20th century. Kodak brought about a
    revolution in the photography and videography industries and at the time w…


    Buying Proposals

    Jason Unsworth, a British Entrepreneur, and CEO of Atmosphere Intercontinental Airline, expressed his interest in buying a controlling stake in Jet Airways.

    However, Jason was told by Jet Airways to sit down with SBI Caps Limited, which was leading the resolution plan for the carrier.

    Jason claims to have written to Jet Airways’ lenders but never received any reply in return. He later wrote to Jet Airways’ CEO, Vinay Dube, about the proposal to purchase a stake in the airline. Jason said he was provided with contacts of SBI to get in touch with. He was also in talks with other Indian entrepreneurs and investors for financing his bid for a controlling stake in Jet Airways.

    The winner of the Jet Airways bid was the Kalrock and Jalan consortium, which had proposed a total cash infusion of INR 1375 crore, which included INR 475 crore that will go to meet the stakeholders’ payments and of the other financial creditors.

    Jet Airways 2.0 Vision

    On 18 October 2020, the lenders of Jet Airways approved the resolution plan submitted by UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan to revive and operate Jet Airways.

    “The Consortium’s vision was to regain lost ground and set new benchmarks for the airline industry with the tag of being the best corporate full-service airline operating on domestic and international routes. The Jet 2.0 hubs will remain in Delhi, Mumbai, and Bengaluru like before. The revival plan proposed to support Tier 2 and Tier 3 cities by creating sub-hubs in such cities,” the official statement noted.

    The new management’s vision for Jet 2.0 was inclined towards increasing cargo services to include dedicated freighter service, an underserved market for Indian carriers. “Given India’s position as a leading center for global vaccine manufacture, cargo services have never been more required,” the statement added.


    Who is Murari Lal Jalan? Unknown Facts about The Mysterious Owner of Jet Airways
    After a mysterious buyer revived jet airways, one question was raised in everyone’s mind who is Murari Lal Jalan?. Here are unknown facts about Murari Lal Jalan.


    Jet Airways Revival and Descent

    Jet Airways Revival Efforts

    In 2020, UK-based Kalrock Capital and UAE-based entrepreneur Murari Lal Jalan submitted a resolution plan to revive Jet Airways. The Committee of Creditors approved the plan in October 2020, and the National Company Law Tribunal (NCLT) approved it in June 2021. The Jalan-Kalrock Consortium aimed to revive the airline, which had been grounded since April 2019 after financial troubles.

    Acquisition and Ownership Transfer

    In 2021, the Jalan-Kalrock Consortium officially won the bid to take over Jet Airways. However, several steps were required to complete the transfer. The consortium was given 90 days to complete the ownership transfer, which included securing certain properties, issuing Jet Airways shares to the consortium, and repaying creditors.

    Approval and Operations Preparation

    The Union Home Ministry granted security clearance to Jet Airways in 2022. A test flight on May 5, 2022, was conducted to prove operational readiness, followed by other proving flights required by the Directorate General of Civil Aviation (DGCA) for the air operator certificate. The airline planned to relaunch with hubs in Delhi, Mumbai, and Bengaluru, focusing on both passenger and cargo services.

    Historical Significance and Revival Vision

    Jet Airways, once India’s largest private airline, had operated successfully for over two decades before grounding operations in 2019, affecting around 20,000 employees. The consortium aimed to leverage the brand’s strong customer connections. Plans included supporting Tier 2 and Tier 3 cities by creating sub-hubs and introducing dedicated freighter services to address India’s increasing cargo needs.

    The revival faced delays due to the COVID-19 pandemic, financial challenges, and leadership changes. Despite these setbacks, the consortium remained hopeful, with Jet Airways’ shares surging by 5% in September 2021. However, Punjab National Bank, one of the creditors, later filed an appeal against the resolution plan with the National Company Law Appellate Tribunal (NCLAT), citing irregularities.

    Hopes for a Comeback in 2024

    In September 2023, the Jalan-Kalrock Consortium injected an additional $12 million, furthering its commitment to reviving Jet Airways by 2024. However, on November 7, 2024, India’s Supreme Court ordered the liquidation of Jet Airways, officially ending the airline’s revival efforts more than five years after it had gone bankrupt.

    Legacy and Closure

    The Supreme Court’s decision effectively closed the chapter on Jet Airways’ comeback efforts. Despite its strong brand value and previous successes, the airline was ultimately unable to overcome the financial and operational challenges that led to its liquidation.


    6 Reasons Why Nokia Failed?
    Nokia once enjoyed unrivaled dominance but failed badly after 2013. Why did Nokia Fail? Let’s get insights into the reasons for Nokia’s failure.


    Conclusion

    As reported in March 2020, the bidders who issued an Express of Interest (EoI) to buy Jet Airways did not submit any resolution plan adhering to the requirements. As confirmed, the grounded airline did not find any buyer till 9 March 2020.

    By March 2020, around 20,000 claims were made on Jet Airways which amounted to around INR 37,000 crores. Of these claims, workmen and employees sought over INR 14,000 crores, while creditors were claiming more than INR 11,000 crores from the airline.

    While looking at this scenario, it seemed like the Jet Airways saga would come to an end soon. The Indian Government’s role was pivotal in deciding the course this crisis ultimately takes. However, with the advancement in 2023, powered by the Kalrock-Jalan consortium, things seemed to be looking up at last for Jet Airways.

    As of September 2023, Jet Airways was getting ready to fly again in 2024. The airline’s parent company, the Jalan-Kalrock consortium, had invested another $12 million, fulfilling their promise to bring the airline back to life.

    This consortium, which took over Jet Airways in 2020, had a plan. They wanted to restart the airline and fully control its operations.

    But then, India’s Supreme Court decided that Jet Airways should be liquidated. This decision ended any chance of the airline coming back, more than five years after it went bankrupt. In the end, Jet Airways’ hope for a comeback was officially over.

    FAQs

    What is Jet Airways?

    Jet Airways is an Indian International airline service provider that was founded on April 1, 1992, and headquartered in Delhi NCR. It commenced its operations on May 5, 1993.

    Who founded Jet Airways?

    The NRI Indian businessman, Naresh Goyal founded Jet Airways, who was also the Chairman of the airline company.

    Why Jet Airways failed?

    There are numerous reasons that propelled the downfall of Jet Airways but the most prominent reason for the Jet Airways shutdown is the lack of funds and mounting debt.

    What is the Jet Airways insolvency case?

    Jet Airways, which started off as an air taxi operator in 1993, was under insolvency for nearly 2 years after which it ceased its operations in April 2019, when it revealed the huge debt that it was in. The insolvency resolution plan was eventually brought up by UK-based Kalrock Capital and the UAE-based entrepreneur Murari Lal Jalan, which looked promising enough, and it is the same consortium that is finally proving promising enough for Jet Airways today.

    Is Jet Airways coming back?

    Yes, the news was true, for Jet Airways was coming back indeed for operations until the Supreme Court ordered the liquidation of Jet Airways on November 7, 2024, officially ending any hopes of reviving the airline over five years after it went bankrupt.

  • Indian Civil Aviation Industry – Who Leads the Market?

    The aviation industry in India is the fastest-growing sector in the world as per the International Air Transport Association (IATA). The manufacturing hub of Indian aviation is located in Bangalore and the UDAN scheme of the government drives the growing civil aviation and aviation infrastructure in the country.

    Indian civil aviation industry is broadly classified into scheduled air transport which includes domestic and international airlines, non-scheduled air transport which includes charter operators and air taxi operators and air cargo transport which includes air transportation of cargo and mail. As was the case with all commercial activity, the Indian civil aviation industry was severely affected due to the covid-19 pandemic. However, not only has the industry recovered but witnessed a robust growth of 104.24% in one year. This is evident from the figures of the air traffic movement which stood at 613,566 in the first quarter of FY 2022-2023 as opposed to 300,405 in the first quarter of FY 2021-2022.

    Currently ranked at number 7 in the global civil aviation market, Indian civil aviation is expected to become the third largest within the next ten years. It is already the third-largest domestic aviation market in the world and is expected to become the third-largest air passenger market by 2024, overtaking the United Kingdom.

    History
    Growth of Civil Aviation Industry & Its Challenges
    Current Leaders In The Civil Aviation Market
    Conclusion

    History

    The civil aviation industry of India can be traced back to 17th February 1911 when the first commercial flight took to the skies from Allahabad to Naini – a short distance of only 6 miles covered in approximately 15 minutes. This was the world’s first official airmail service as the Humber biplane carried 6500 pieces of mail piloted by Henri Pequet. The first commercial airline was Handley Page Indo-Burmese Transport flown on 15th October 1932 by J.R.D. Tata from Karachi to Juhu Airport. This airline later became Air India.

    By 1953, there were eight domestic airlines that were operating independently within the country. They were Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways, Air India, and Air Services of India. In March of that year, the Indian Parliament passed the Air Corporations Act resulting in the nationalization of the merger of all eight airlines into two government-owned entities – Indian Airlines focusing on domestic routes, and Air India International focusing on international services.

    History of Aviation in India

    In 1972, The International Airports Authority of India (IAAI) was established followed by the National Airports Authority in 1986 and The Bureau of Civil Aviation in 1987. The Indian government de-regularized the civil aviation sector in 1991 leading to the introduction of the first national-level private airline – East-West Airlines, followed by Jet Airways which began operations in April 1992. By 1994 the Air Corporation Act was repealed allowing private airlines to operate scheduled services. This led several players like Air Sahara, Modiluft, Damania Airways, and NEPC Airlines to commence operations within the Indian skies.

    India Aviation Industry – Market size, Major players, Future Developments
    The Indian aviation industry is one of the fastest-growing industries in India. Here’s a deep insight into the Indian Aviation Industry and its Development

    Growth of Civil Aviation Industry & Its Challenges

    Between 2004 and 2005 many low-cost airline carriers entered the Indian market. Prominent operators among them were Air Deccan, Indigo, Air Sahara, Kingfisher Airlines, SpiceJet, GoAir, and Paramount Airways. However, soon the industry was riddled with problems as it struggled with rising fuel and operations costs and economic slowdown. There was a flurry of mergers, acquisitions, and discontinuation of services within the market players. Paramount Airways closed operations in 2010 while Air Sahara was bought by Jet Airways and Air Deccan was acquired by Kingfisher Airlines in 2007. Kingfisher Airlines closed operations in 2012. A joint venture between Air Asia and Tata Sons led to the launch of AirAsia India in 2014 – another low-cost carrier. Another carrier, Vistara was also launched due to a joint venture between Tata Sons and Singapore Airlines. By 2013 and 2014 only two low-cost carriers, GoAir and Indigo were generating profits through their operations.

    Current Leaders In The Civil Aviation Market

    With the number of airline operators within the Indian civil aviation sector, Indigo and Jet Airways was operating neck to neck in the year 2018. However, the latter was riddled with financial difficulties that led to operations being suspended by April 2019. This left the field open for Indigo with little or no competition from other players. By the year 2022, Indigo was dominating the Indian airline space with a market share of almost 55%.

    IndiGo Airlines Case Study : History, Present & Future
    IndiGo the largest domestic airline of India and second-largest preferred airline in Asia. Lets know the history, present and future of Indigo.

    What has resulted in Indigo’s market domination is its no-frills approach and low-cost domestic flying. During the fiscal year 2022, Indigo carried more than 46.6 million passengers according to the Directorate-General of Civil Aviation. The airline has registered the least number of customer complaints and has ranked at number 4 among the country’s most punctual airlines registering almost 84% of on-time arrivals. Indigo rates high on domestic popularity which is indicative of soaring growth in the future.

    Conclusion

    The Indian Civil Aviation Industry has received strong backing from the government and is increasingly emerging as a fast-growing sector. The sector has established itself as a credible alternative to road or rail journeys. The growth trajectory of the industry currently indicates that by the year 2034, it may well become one of the largest aviation markets in the world.

    FAQs

    Who are the major players in the Indian Civil Aviation Industry?

    The major players in the Indian Civil Aviation Industry include:

    1. IndiGo
    2. SpiceJet
    3. Air India
    4. Vistara
    5. GoAir
    6. AirAsia India
    7. Air India Express

    What is the contribution of the Indian Civil Aviation Industry to the country’s GDP?

    According to a report by the Ministry of Civil Aviation, the Indian Civil Aviation Industry contributed about 0.5% to the country’s GDP in the financial year 2019-20. The industry provides direct and indirect employment to millions of people and has a significant impact on the economy.

    What are the key challenges faced by the Indian Civil Aviation Industry?

    The Indian Civil Aviation Industry faces several challenges, some of the key ones are:

    1. High operating costs: The industry is faced with high operating costs, which include fuel prices, airport charges, and taxes.
    2. Infrastructure constraints
    3. Competition: The industry is highly competitive, with several players vying for market share. This has resulted in price wars and cost-cutting measures that impact the quality of services offered.
  • Analyzing Red Bull’s Popular Marketing Campaigns

    Red Bull is an Austrian beverage giant known for its unique marketing strategies and campaigns. The company is a marketing powerhouse that is equally popular for its daring and widespread campaigns as for its main products. Red Bull is a company that started the energy drink market continues to dominate the market with more than 40% market share. For Red Bull the marketing efforts always focuses on the audience first, and then comes their selling their products.

    Red Bull now leads with 24.9% share of the US energy drink market in 2019, selling more than 7.5 billion cans globally. They are able to achieve these numbers because they produce content which can be considered on par with the major publishers and also pulling off mind-blowing events making them one of the most talked about brands in the world. Red Bull is active on various social media platforms and different channels and use out of the box approaches and tactics in order to create content that is would give people the experience they would be interested in.

    Instead of following a traditional approach to mass market, Red Bull has generated awareness and created a brand identity by using extreme sport event series or campaigns such as Red Bull Cliff Diving World Series, Red Bull Air Race, Red Bull Crashed Ice and stunts like stratos space diving project and stand out on its own. The company marketing also includes multiple sports team ownership from Formula One teams like Scudera Alphatauri, Red Bull Racing; Fooball clubs like FC Red Bull Salzburg, New York Red Bulls, etc. It also has many celebrity endorsements through its record label Red Bull Records.

    A Brief History of Red Bull
    The Target Audience of Red Bull
    The Marketing Strategy of Red Bull
    Red Bull’s Content Marketing Strategy
    The Analysis of Red Bull’s Marketing Campaigns
    The Impact of Red Bull’s Marketing Campaigns

    How marketing made Red Bull so big

    A Brief History of Red Bull

    The Red Bull logo and slogan
    The Red Bull’s logo and slogan

    Red Bull is an Austrian energy drink company created in 1987, when the Austrian entrepreneur Dietrich Mateschitsz was inspired by an already existing local energy drink which was sold in Thailand. The local energy drink was meant to help keep drinkers awake and alert. He took this idea, modified its ingredients to match the westerner’s taste buds, partnered with Chaleo Yoovidhya and together founded the Red Bull company in 1987 in Chakkapong, Thailand.

    The product was later taken to Austria where it had its first ground breaking success in no time and soon went international after it blew up in Hungary. When the company originally started it only had only a single flavor and regular or Sugar free formulas, a line of different fruit flavors were added by 2013. The company’s slogan is “Red Bull gives you wings.” Red Bull is currently in more than 170 countries energizing the population and raising the competition along the way. According to Forbes it is also the 61stmost valuable brand in the world.

    When Red Bull first came out, it was the first and only as back then energy drinks dint exist. And since traditional means of advertising was expensive, Red Bull had to come up with a different marketing strategy. They simply targeted their target audience which is 18 to 35 years old in different college parties, bars, coffee shops and even libraries. At these events and places the people were given free samples, which lead to the people talking and spreading the word about the product for free. Red Bull started sponsoring music festivals and sport event, campaigns and also created good quality content which got the company its fame.

    The Target Audience of Red Bull

    In order to understand the company’s market strategy and campaigns one must understand the company’s target audience, the important role it plays and how it reaches that target audience. According to Numerator, the target audience of Red Bull is predominantly between the ages of 18 to 34 year old, both male and female, who have an average to high income, likes sports, extreme sports and athletic events. Their customers can be defined as young, independent professional with big dreams and aspirations.

    Relevant information is also collected through customer surveys, field trials and focus groups, with the company ensuring that its buyer profile is consistently updated. This ensures that their strategies continue to be both relevant and effective at all times. Red Bull focuses on three significant tactics to attract its target audience:

    • Publishing quality content that is created by the marketing team in different media outlets that is consumed by their target audience.
    • Red Bull produces large scale publicity stunts that grabs attention of its audience and spreads the message of the products or company.
    • One of the most important tactic used by Red Bull is to sponsor and create events in various countries so it attracts its young audience.

    The Marketing Strategy of Red Bull

    Red Bull marketing strategy
    Red Bull marketing strategy

    Red Bull has control of over 70% of the $1.6 billion market, and owes its success to the company’s intensive unconventional marketing strategies. The company bases its marketing approach on promoting a high energy philosophy for the lives of its customers, by its advertisements and campaigns it promotes a way of life more than selling its product. Red Bull also has a young target audience which consists of the millennials, gen y and gen z, know what their target audience wants and utilize it in their marketing strategy.

    Red Bull sponsors a lot of events in various countries such as Red Bull music academy in the USA, parachutes in South Africa, Go-karting events in Kuwait, and many more from different countries in an effort to attract more target audiences as they usually attend events like these. It also works with influencers in the field and shares captivating content that inspires the young audience to be more active and adventurous. By doing all of this, Red Bull captivates authentic and loyal consumers as they are usually into athletics and sport events.

    Because of this effort everybody knows its slogan “Red Bull gives you wings”, as it is used across online and offline campaigns, televisions advertisements, newspapers and billboard ads. Some of their well-known strategies used for marketing are: using pickup trucks as mobile displays which were painted blue and silver with a giant can of the giant mounted on top of the vehicle. The products were designed to be eye-catching and were aimed at promoting the red bull brand as youthful and slightly off the wall.


    Bisleri Marketing Strategy | Success Story | Net Worth
    Bisleri is the most popular mineral water brand in the world. Read about Bisleri journey, origin and expansion, marketing Strategy & net worth.


    📃
    ST Mentors Presents: List of Top Courses that will get you a High Paying Job or will help in Upskilling and Boosting Your Income 💵💵 |👇 Check the List 👇|

    List of Courses Curated By Top Marketing Professionals in the Industry

    These are the courses curated by Top Marketing Professionals in the Industry who have spent 100+ Hours reviewing the Courses available in the market. These courses will help you to get a job or upgrade your skills.

    Click Here to Check the list

    Red Bull’s Content Marketing Strategy

    The Red Bull is known for its content marketing as it is exceptionally planned. They started it with covering topics that interest their target audience which is sponsoring and advertising extreme sports, concerts and music festivals. The second is to sell their brands but not force the audience to buy their energy drink.

    Their content is designed to make sure the reader enjoys the content not sells Red Bull. By doing this their audience will associate their product with the content that they love to consume. The third part of content marketing is to publish videos, blog post, pages and other types of content at different social media networking sites and channels that their target audience consumes content from.

    The Analysis of Red Bull’s Marketing Campaigns

    Earlier Campaigns

    Red Bull first gained a lot of attention because of its Red Bull gives you wings campaign” which initially began in the 90’s. Because of this campaign the company sold 300 million cans between the years 1996 to 2006. After this the company began to sponsor sports events of mountain biking, wind surfing, snowboarding, skateboarding, kayaking, rowing, Formula 1 racing to even parkour, surfing, skating and break dancing the options were limitless and the company made use of it in campaigning its product.

    Red Bull also uses music concert, programs and videogames, commercial with famed celebrities, such as Eminem and sponsoring events like Red Bull “EmSee Battle Rap championships”. The company has also made history by just being the backing power to football and Formula 1 racing teams and events. For example, Sebastian Vettel’s four Formula 1 championships will be combined with Red Bull Racing.

    Stratos Space Diving Project

    Red Bull Stratos space diving project

    In the year of 2012, Red Bull hit the global headlines when it decided to try and break the record which at that time stood for 62 years. The company sponsored an event where an Austrian skydiver Felix Baumgartner to free fall jump from the Earth stratosphere in a helium balloon. This project was known as the stratos project, because Baumgartner had to fly approximately 39 kilometers (24 miles) into the stratosphere over New Mexico in a helium balloon before free falling in a pressure suit and then parachuting to Earth.

    After it became successful Baumgartner broke three records including being the first person to break the speed of sound during a captivating freefall that lasted for four minutes and 19 seconds. This event was live streamed through YouTube with the help of GoPro cameras and became the most viewed live stream and a mainstream media platform at that time. This event embodied the company’s slogan, the brand vision and supplied Red Bull with unique photography that would be used in its marketing campaign for years.

    Red Bull Campaigns in India

    Red Bull launched a limited festival edition in 2019 which elevated the company’s marketing strategy. The festival edition can came with a new flavor of the orange, while the company also created a contest #SpotTheCans. Where the customers had to go to their website and spot four hidden Red Bull Festival Edition cans in an impressive piece of artwork. After finding them, one could redeem the vouchers and gift cards at the Reliance Fresh and Reliance Smart stores. The energy drink giant will hosted an engaging on ground, in store and on campus activations with the help of campus interns/ambassadors to increase the marketing of the company.

    Want to Work in Top Gobal & Indian Startups or Looking For Remote/Web3 Jobs – Join angel.co

    Angel.co is the best Job Searching Platform to find a Job in Your Preferred domain like tech, marketing, HR etc.

    Click Here to Join angel.co


    Decoding the Secret Behind Coca-Cola’s Marketing Strategy
    The success behind one of the most successful beverage brands, Coca Cola is its marketing strategy. Take a deep dive to understand it in detail.


    The Impact of Red Bull’s Marketing Campaigns

    The stratos project generated a huge number of media attention and a media coverage worth an estimation of tens of million, which would not be possible to reach just using the traditional marketing strategy. After this project the company increased 7% of its sales in just six months generating $1.6 billion and selling 5.2 billion cans in the following year.

    This project was successful because the company put science, engineering and a huge budget which was 1/10th of its annual global marketing budget which was $330 million to fund the project. This led the company to win a Sports Emmy in the category of an outstanding new approach to sports event coverage. The point of this project was to inspire the youth to use their wings and try doing what they taught was impossible and push the human boundaries.

    The total broadcast was over 3 hours long and the Red Bull’s logo was in every shot. The Stratos campaign is an extreme but excellent example of creative marketing, and the company’s commitment to the values and aesthetic that the brand created when they first got their start that makes their marketing work. Everything they create relates back to the idea of giving people and ideas wings to fly.

    FAQs

    What marketing strategy did Red Bull use?

    The marketing strategy used by Red Bull are:

    • Content Marketing
    • Sponsorships of Sports Events to drive brand awareness
    • Humoristic Advertising Approach

    Red Bull’s sponsorships and participation in extreme sporting events have played a key role in making it so popular.

    Who Are Red Bull’s target customers?

    Red Bull’s main target customers are young urban males.

    When was Red Bull founded?

    Dietrich Mateschitz founded Red Bull in 1987.

    Which is the most successful marketing campaign of Red Bull?

    The Red Bull Stratos campaign may be the most successful marketing campaign of all time.