CONTENTSIndustry Structure

Company Analysis

Competitor Analysis

Consumer Analysis

Promotional Ventures

SWOT Analysis

BCG Matrix

INTRODUCTION• In 1903, first flight by Wright

brothers• Increased R&D of aircraft after

World War II: World War II saw a drastic increase in the pace of aircraft development and production.

• Deregulation in 1978: Deregulation– Entry and exit of routes and the pricing of fares were deregulated.History

• 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

Benefits• Fully private airlines are subject to a

great deal of government regulation for economic, political, and safety concerns

• entry barriers for new airlines are lower in a deregulated market

• Greater competition• Pricing freedom• new entrants often take market

share with highly reduced ratesRegulatory considerations

TRENDS

9th Largest Aviation Market

Domestic aviation market tripled in the

past five years

Domestic market share of 20 % in May, 2011

11% increase in passenger revenue

OPPORTUNITIES

International air travel to grow by 6.6% a year

Projected growth of 12-14% in 2011-12

Airbus and ATR provides advantage

First carrier to enter Big-3 alliances

Expansion of product internationally

THREATS

44% hike in fuel costs

Rising in operating expenses

New Aviation policy to open skies to foreign

airlines

Entry of new airlines

AVIATION INDUSTRY

CONSUMER BEHAVIOR

Consumer Motivation

Consumer Connect

Brand Perception

Personal• Age • Occcupation

Psychological• Motivation• Perception

Cultural• Family

Influence• Reference

Groups

Social• Culture• Social Class

FACTORS INFLUENCING CONSUMER BEHAVIOR

Dr Vijay Mallya Chairman and CEO of Kingfisher Airlines

Launched under the brand name Kingfisher Airlines in 2003 Owned by the Bangalore based United Breweries GroupDr Vijay Mallya is also the Airlines Brand Ambassador

BRAND FLY KINGFISHER Currently has a fleet of 66 aircrafts that include airbus

A319,A 320, A 321,A330 and ATR72-500 and ATR 42-500 Operates more than 375 daily flights to 71 destinations,

with regional and long-haul international services.Serves 63 domestic destinations and 8 international destinations in 8 countries across Asia and EuropeShort haul routes- airbus A320Long haul routes- airbus A330-200Emphasize on using new & technically fit aircraft which ensures safe journey without delays or cancellation

Promotion Strategies• Aggressive advertising campaign ‘Fly the Good Times’.• Promoted through many events and advertisements.• Offered the customers a direct link to the company’s

Chairman in case of inconvenience• Hand-picked crew approved after a rigorous training

programme.• Loyalty and frequent flyer programs are also carried out• Personalised entertainment system web chat, inseat plugins

for music, liveTV with 16 channels on each seat • Better quality of service• 100 percent E ticket airline

Kingfisher has signed up the latest diva of bollywood Ms Deepika Padukone as the brand ambassador.

SEGMENTATIONTHE VARIOUS SEGMENT OF AIRLINE USERS:

Firstly ,The major users are the students ,low income group who

choose the minimum fare flight whichever it is.

The other target group is of young married

professionals (age group 20-35) with small kids and with income levels more than Rs 7 lacs per

annum

At last but not the least ,the elite corporate, business class people and

VIPs who demand privacy and high level of

security and safety.

TARGETING

Focus strategy

• Deviating from the usual flashy ads which hit with young (at heart) male fliers and the 'flying models '

• The ad for the young travelers talks about special kids meal, wide seats and games. The ad ends with an appeal to the father that " Your little prince deserves to feel like a King ".

Differentiation Strategy

• Cater to the different economic segments of the consumer base .

• Kingfisher class • Kingfisher red • Kingfisher first • Kingfisher Elite

• Kingfisher first as a business class - "butlers“ carry passengers’ bags on and off the plane.

• Kingfisher red and class as an economic airlines for “the mango people”.

KINGFISHER ELITE

• One can now travel in an aircraft reserved exclusively for him and choose where and when he wish to travel

• Tailored service to meet your requirements – ultimate flexibility

• Private and discreet service including VIP, diplomatic and head-of-state flights

• Eurocopter EC155 with a VVIP configuration

• Custom-designed luxurious interiors

BUSINESS TRAVEL

POSITIONING Not a journeyIts an “experience”.

THE Vijay Mallya –India's . Richard Branson

The “king of good times” theme

Not just a passengerAn “honored guest”

• Facebook as an advertising medium

• It helps in positioning kingfisher as people’s choice .

PEST ANALYSIS POLITICAL FACTORS • Open sky policy • FDI limits: 100% for Greenfield airports • 74% for the existing airports • 100% through special permission • 49% for airlines. ECONOMICAL FACTORS • Contribution to the Indian economy. • Rising cost of fuel. • Investment in the sector of aviation. • The growth of the middle income group family affects the aviation sector SOCIAL FACTORS • Development of cities leads to better services and airports. • Employment opportunities. • Safety regulations. • The status symbol attached to a plane travel.

TECHNOLOGICAL FACTORS • The growth of e-commerce and e-ticketing. • Satellite based navigation system. • Modernisation and privatisation of the airports. • Developing green field airports with private sector for example in

Bangalore the airport corporation limited. ENVIRONMENTAL FACTORS • The increase in the global warming. • The sudden and unexpected behavior of the atmosphere and the

dependency on whether. • Shortage of the infrastructural capacity • Tourism saturation . LEGAL FACTORS • FDI limits • Bilateral treaties • Airlines acquisitions and the leasing cost.

Suggestions

• Reduce the labour cost • Simplify the flight operations • Offer more transparent pricing • Get smart on fuel • The process of acquiring spice jet if complete

would make kingfisher the largest player in the aviation industry

• Different modes of pricing should be taken care of.

SURVEY

BRAND IMAGE

Airlines

KingfisherIndian AirlinesJet AirwyasIndigo

Conversion Rate

KingfisherJet AirwaysIndian AirlinesIndigo

Main Driver

Price

Service

Offers

Brand Image

Consumer Perception

Price

Servi

ce

Promotional

Offers

Brand Im

age

Conection to

Consumers

0%10%20%30%40%50%60%70%80%90%

100%

IndigoIndian AirlinesJet AirwaysKingfisher

USER

S

•Grooming and Present Ability•Most high-end domestic carriers•Exudes an air of luxury•Marvelous service

NON

USER

S

•Trade off between extra expense and high standards

PresentStrategies

spunky, well-done interiors

and trained airhostesses.

beer tagline of "The King of Good Times" the theme of "Fly the Good

Times" is given to KFA.

Kingfisher flying face of the month'

in-flight silent auctions

exuberant, youthful and

fast-paced image is

leveraged

Recommendations

lowering the prices of their

tickets

Increase advertising expense

celebrities for endorsements

like Milind Soman / Ranbir Kapoor who are

youth iconsintroduce late night flights

between metros

COMPETITON

COMPARISON OF KINGFISHER TO OTHER PLAYERS

•Priced lower than Indian airlines, yet offer a great flying experience.•Interiors and food definitely better compared to other airlines.•Captured a 27.6% market share last year in comparison to Jet-25.2% and Air India-17.2%.•Targeted frequent fliers •Passengers who enjoy the luxuries of life and have a bent towards flamboyancy.

PORTER’S MODEL

SWOT ANALYSISStrength•Strong brand value and reputation in the minds of customers•Unmatched in-flight service•Route rationalization•First airline to have a full new fleet of airbuses•Exclusive terminal share deal

Weakness•Highly priced for the service offered•Yet to break even•High attrition at top brass

Opportunities•Expanding tourism industry•Under penetrated domestic market•International market•Untapped air cargo market

Threats•Competitors•Infrastructure issues•Fuel prices•Economic slowdown

TARGE

TING

•Young married professionals with small kids•Income more than Rs 7 lakhs p.a.•Commute between Tier 1 and Tier 2 cities•Hard core loyals

POSITIO

NING

•Flying with Kingfisher is an experience in itself•It is not just selling tickets per say but also selling “Experience”•Commute faster with entertainment

SEG

ME

NTATION

•Niche Marketing: Talks with Goa Govt.S•Partnering with premium hotels like Park Hotel.

POSITIONING Not a journeyIts an “experience”.

THE Vijay Mallya –India's Richard Branson.

The “king of good times” theme

Not just a passenger.An “honoured guest”

4PS OF MARKETING

A PREMIER PRODUCT FOR THE INDIAN FLYER

Strong Kingfisher Brand

Diversified Network

Monopoly Destination

Strong Kingfisher Brand •High brand salience & preference in the minds of Indian consumer

Monopoly Destinations •Highest exclusive stations amongst private carriers

High Service Quality •Premium business class product, well trained young staff

Diversified Network •Well spread on business and leisure routes

POWERFUL PROMOTION THE STRENGTH OF KINGFISHER

POP AND POD