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PRESENTATION
ON
KINGFISHER AIRLINES
PRESENTED TO:- PRESENTED BY:-DR.P.P. SINGH ASHISH GOEL
DIRECTOR,PCTE LOVISH GOEL
ABHISHEK WALIA
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OBJECTIVES
To understand the Global and National
perspective
Environmental study of aviation industry
Consumers preference for various players inthis industry
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INTRODUCTION
Global In 1903, first flight by Wright brothers
Increased R&D ofaircraft afterWorld War II: World War II saw a
drastic increase in the pace ofaircraft development and production. Deregulation in 1978: Deregulation Entry and exit of routes and
the pricing of fares were deregulated.
Benefits:
The creation of new jobs and lower fares.
More Americans were flying so airplane load factors were up. There was increased competition and a wider choice for passengers.
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Airline Industry Overview
Large and growing industry.
Facilitates economic gr owth, world trade,international investment and tourism.
In the past decade, air travel has grown by 7% peryear.
Contribution ofWorld trade to industry
International air travel to grow by an average6.6% a year to the end of the decade and over 5%a year from 2000 to 2010.
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KINGFISHER AIRLINES
Established 2003
UNITED BREWERIES group
Serves 63 domestic destinations and 8international destinations in 8 countries across
Asia and Europe
Short haul routes- airbus A320 Long haul routes- airbus A330-200
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SWOT
STRENGTHS
Strong brand value and reputation in the minds of customers.
Quality of the service.
Route rationalization.
First airline to have a new fleet ofairbuses.
Quality and continuous innovation.
WEAKNESSES
High ticket pricing.
Facing a tough competition from competitors.
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OPPORTUNITIES
The expanding tourism industry. The non penetrated domestic market.
International market.
Untapped air cargo market.
THREATS
Competitors
Infrastructure issues.
Fuel price hike.
Tourism saturation
Economic slowdown.
Promotions and sponsorship declining
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VARIOUS PLAYERS
AIR INDIA
AIR SAHARA
GO AIR AIRLINES INDIAN AIRLINES
INDIGO AIRLINES
JET AIRWAYS SPICE JET AIRLINES
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Comparison of Kingfisher toother
players
Distinctly different strategy
Priced lower than Indian airlines, yet offer a
great flying experience.
Feel-good factor
Interiors and food definitely better compared to
otherairlines. Captured a 27.6% market share last year in
comparison to Jet-25.2% and Air India-17.2%.
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TARGETING
Kingfisher Airlines in the Aviation industry to study itsSegmentation, Targeting and Positioning strategies.
Seeing the above characteristics, we can infer that airlines like
Kingfisher target the Elite Fliers. There are certain specificcharacteristics observed in this segment.
Airlines like Kingfisher targets young married professionals (agegroup 20-35) with small kids and with income levels more than Rs
7 lakhs perannum; who generally commute between Tier 1 andTier 2 cities ; travel for business and leisure ; frequent fliers ;enjoy the luxuries oflife and have a bent towards flamboyancy.
These fliers are generally observed to be hard core loyals
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POSITIONING
Positioning is the aggregate perception the customer has ofa particular company, product or service in relation to theirperceptions of the competitors in the same category.
Positioning in the truest sense indicates what peopleperceive ofa product ora company.
Its the brand image that people have about the company.
Rather than promoting their brand as fast service provideror reliable etc, they have taken a different tangent by sayingthat flying with Kingfisher is an experience in itself.
Taglines like FLY THE GOOD TIMES makes apassenger feel that Kingfisher is not just about flying from aplace to another but its much more. The company is notjust selling tickets per say but also selling Experience.
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Usefulness
Growing tourism
Improving Infrastructure:
Globalization:
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PRESENCE SCENARIO
Revolutionized by privatization along with activeparticipation of the foreign investors, the Indian airlineindustry has experienced phenomenal transformation overthe last couple ofyears.
From being a service catering to the needs of the privilegedgroup only it is now well within the reach of middle classpopulation.
This has been the result of increased competition in theIndian aviation industry due to the presence of a wide
variety of private and public airlines with their low pricetags.
It was further helped by the entry of Air Deccan, the firstbudget airline in India, offering unbelievable tariffs to the
customers.
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Cont.
In the financial year 2006-07 there has been a significant 22.3percent growth in passenger traffic in the domestic airports
while the aircraft movement recorded a growth by 14.2
percent.
In terms of the numberof flights Jet Airways secures the top
position with 8,168 flights operating till June 2007. Indian
Airlines is in second position with 7,562 flights. Sahara (3,225
flights), Air Deccan (2,889 flights), Spice Jet (483 flights) and
Kingfisher Airlines (367 flights) come thereafter in the list of
domestic and national carrieroperators.
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ROLE OFTECHNOLOGY
Intense competition in Indian Aviation Industry has
made the role of technology very important for
domestic airline companies.
Technology can help in making travel comfortable,
allow easyaccess to tickets and reduce time to
check-in.
A considerable amount of money is also saved byautomation.
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Cont.
Vijay Mallya-promoted Kingfisher Airlines is planning to install a
landscape camera at the bottom of the aircraft that will enablepassengers get a view of the take-offand landing of theirairplane whenflying on domestic routes.
They are also going to allow GSM phones to be used on board for thefirst time.
They are already providing live TV as part of our high-end In-Flight
Entertainment (IFE) initiatives. Kingfisher Airlines has announced the launch of two world-class
technological innovations to enhance guest convenience.
The first cutting-edge innovation is the introduction of the RovingAgent at the airport.
Now guests with hand baggage need not have to wait at the check-incounter to collect their boarding pass, instead they can directlyapproach the Kingfisher Airlines Roving Agents deployed outside thesecurity check-in area who will book them on their choice of seats.
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Cont.
Also launched is the facility of Web Check-in.
Now Kingfisher Airlines' guests can sit in the comfort of theirhomes oroffices and print theirboarding passes.
All a guest has to do is log on to the official website ofKingfisher Airlines, www.flykingfisher.com, and click on thelink - web check-in.
Fill-in your reservation details and the screen will display thechoice of seats available onboard that particular flight.
Once booked, the guest can conveniently print out the boardingpass and carry it along with him/heron the day of the flight and
proceed straight to the security check counterat the airport.
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GROWTH RATE (AIRLINE
SECTOR) MARKET SIZE
1. 18%pa.
2. 9th position in the world
ADVERTISING
1. 89% rise in airline sector2. Kingfisherand Indigo airlines-93%
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Contd.
Growth Potential
1. Rise by 25%-30%
2. Target -100million passengers
3. Investing-US$-9billion to modernise airports
Market share
1. Combined share-29% (Kingfisher-Air-Deccan)2. Company share-26%
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COMPETITION
Kingfisher Airlines-Jet Airways
1. Reduction in the Air-fare
2. Use of Air-Deccan to counter Jet.
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CHALLENGES
5-CHALLENGES
Enhancing safety
Urgent infrastructure improvement
Reasonable taxation
Commercial freedom
Simplifying the Business through effective use of
technology.
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Market Targetation
People whoare price-minded
Who do not botherabout the qualityof service
People who desire to travel short distance byair
Economy is the selling point ofairlines
Small mnfctr, executive of small companies, self-employed
professional
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Promote it selfas peoples airline
Provides competitive service at a discount
Has to emphasize on the better quality of service
Have to show courtesy &offer friendly treatment to the
passengers
Emphasize on using new & technically fit aircraft which
ensures safe journey without delays or cancellation
Promotion
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Airlines has to be optimistic
Assume that it is going to expand its business once atbreakeven.
It should keep its future plan for expanding its transportnetwork
Economy can be selling point today but the same cannotcontinue in future
Future Expansion
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Contd
It has to meet competition fm the otherairline
Hence to survive provide comfort, speed, safety& passenger services.
Co-operation of staff plays a leading role.
Best publicity word of mouth.
It must expand the services to the other cities
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AWARDSOFKINGFISHER
AIRLINES
"NDTV Profit Business Leadership Award for
Aviation" .
"Brand Leadership Award" . "India's No. 1 Airline in customer satisfaction"
Economic Times Avaya Award 2006 f or
Excellence in Customer Responsiveness .
Rated amongst Indias 25 Innovative Companies
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