Case studyStudy the case and give your answers of the question with analysis.Brand Kingfisher: Creating a Lifestyle Brand The United Breweries (UB) group today (2008) boasts a diverse portfolio of businesses - alcoholic beverages, life-sciences, engineering, aviation, agriculture, chemicals, information technology and leisure. The man behind this potent diversity is none other than India's flamboyant tycoon Vijay Mallya (Mallya). Mallya's association with the rich, trendy and the luxurious seems to have rubbed off on his brands. All through his glitzy forays into various fields, Mallya has fastidiously endorsed Brand `Kingfisher'. His entry into aviation with the glamorous launch of Kingfisher Airlines drew a lot of its brand equity from Mallya himself. Media reports often analyze how Mallya promotes the `Kingfisher' brand by associating it with lifestyle events like horseracing, Formula 1 racing and prestigious launches. Reflecting on how he contributes enormously to it through his own flamboyant lifestyle, it is pertinent to probe into the prospects of Kingfisher's brand extension. The Kingfisher brand has come to epitomize a lifestyle that encompasses some of the finest things in life and is today synonymous with delivering a premium experience. - Vijay Mallya Brand KingfisherI am the brand ambassador; I am the `King of Good Times',said Mallya, the brainchild of Kingfisher brand launched in the year 1980. Reports say that Mallya, while working in Kolkata (Indian city in the eastern state of West Bengal), felt that none of the existing beer brands Black Label, Kalyani, etc., were stimulating. Mallya, wanting to create a vibrant brand, went back to Bangalore (Mallya's hometown), rummaged through archives and stumbled upon an old label with a picture of Kingfisher on it. That manifested the birth of the iconic brand Kingfisher (Exhibit I). At an impressionable young age of 28, Mallya had become the chairman of UB, following the demise of his father, Vittal Mallya in 1983. Young Mallya, who loved good living and was crazy after fast cars, discos and planes, was criticized by many as a `playboy'. In Mallya's own words, "My industry peers were in their 50's. I stuck out like a sore thumb." Many were sceptical about Mallya's stewardship. Mallya, however, in course of time, proved his cynics wrong. He endured the succession dilemma and guided his empire to unimagined heights. By 2008, UB was a multi-national conglomerate of over 60 companies with an annual turnover of over $1.2 bn.Flamboyant CEOs have been known to endorse their brands from the front. Sir Richard Branson and Steve Jobs are two famous names that may be recalled in this context. Mallya, at the helm of UB, deems it right to lead his brand upfront by leveraging his multifaceted persona. Mallya astutely judged that his involvement with the rich and the trendy will eventually rub off on his brands (Exhibit I). His wealth is stretched across the globe. He has over 25 dwellings around the world including houses at Sausalito, Napa and Trump Plaza in New York, a castle in Scotland, and at Monte Carlo, apart from homes in every major city in India. His antique racing cars number more than 260 and are stored in 10 countries. He has two yachts in California and a few in India. Among them is the famed `Kalizma' - a 165-footEdwardian yacht once owned by Richard Burton and Elizabeth Taylor and now based in the Mediterranean; and a 187-foot yacht in Australia. He also owns a Boeing 727 and a Gulf Stream jet. Mallya never loses an opportunity to lend his wealthy locations to garner publicity for his brands.

Kingfisher is considered by many as a classic case of branding sensation which is expressed as iconic and is equated to the Virgin brand. If one were to ask a young Indian as to what `Kingfisher' is; the most likely answer would be Beer or Airline. Kingfisher from the UB group stable is the largest selling beer brand in India. Though UB is the market leader in India with a 40% market share, its flagship Kingfisher brand alone commands 25% market share. The brand's advertisements epitomize energy, youthfulness, enthusiasm and freedom, but with a touch of professionalism. Outside India, Kingfisher is well known and is widely available in many European countries, especially those with a large Indian ethnic population like the UK. The Kingfisher beer brand has its presence in over 50 countries. Vijay Mallya - The Spirit behind the Kingfisher Brand Though touted as the most flamboyant face of India Inc., there is much more beyond the `liquor baron' tag that Vijay Mallya is anxious to shake off. It is unquestionable that Mallya was the Indian industrialist almost singly responsible for positioning Indian liquor on the global map. As an NRI investor, Mallya created waves in the Indian business community in the 1980s. In 1988, he bought Berger Paints with 100% funding by HSBC, divested it for significant value in 1996 and founded a software company in the US in 1993, which was subsequently listed on the NASDAQ in 1996. He also initiated the promotion and globalization of brands from the UB stable; in particular, Kingfisher and McDowell. The Indian beer brand, Kingfisher, was the first to foray into the international arena and made inroads into the British market, so much so, that industry analysts say that "beers from theIndian subcontinents are now firm favorites with British drinkers."

Mallya cleverly manipulates his sporting interests and hobbies to further his brands' Popularity. An avid sports enthusiast, Mallya has won several titles, and endorses and sponsors myriad sporting and cultural events. Renowned for his zest for good life, Mallya lives up to his `King of Good Times' moniker and is legendary for splurging his money in the public. He is seen as the epitome of a lavish lifestyle, with parties on luxury yachts and good living in general. According to Mallya, "No point in being in denial, I like to enjoy myself. It took time for the media to come to terms with that. They started off calling me a playboy, and since then have used every adjective except frivolous. The latest trend is to compare me with Richard Branson, but I am not apologetic about how I live. I don't live off other people's money." Mallya made his presence felt in various other arenas too. He revived the Indian Derby scene.His horses have performed feats in nearly 200 Classics and he is the only Indian Derby winner for more than four times. Mallya has however stayed absolutely clear from backing any horse. The event is significantly titled Kingfisher Derby. In 2001, in an unusual venture, UB Group acquired 51% stake in an ailing film magazine Cine Blitz, from RIFA Publications. Following this, Mallya made major forays into the entertainment arena. Mallya also hosted popular events like concerts by Sir Elton John and the Rolling Stones. Around the same period, he toyed with film production - his first film being directed by popular director Pamela Roux. All these forays gave Mallya a platform to popularize his various brands. While theorists opine that `marketing' is a serious business, Mallya counters that marketing is a CEO's business. According to him, when a CEO takes interest in the brand and virtually promotes the brand on every occasion, there is so much equity generated for the brand. He always felt that the primary task for any CEO is to be passionate about the brand. He takes the brand with him everywhere and his passion for the brand is fittingly referred to as the major factor behind the rise of the Kingfisher brand. The brand is so positioned that it directly talks to people who are easy going and chilled out; who are always willing to take a break and party with friends and at the same time are very professional and successful. Kingfisher's is a unique marketing story because it prospered in a setting where liquor/beer advertising was prohibited by the Indian government. Mallya personally built the brand, circumventing the interdict on promotion. Marketing gurus consider Kingfisher as a brand that enjoyed a distinctive marketing triumph, as it survived the onslaught of surrogate advertising critics. The Issue of Surrogate Advertising "Considering the ill effects of cigarette, alcohol and other intoxicants, the government has banned advertisements of these products in the media. As a reaction, the liquor and tobacco majors have sought other ways of advertising their products. They have introduced various other products with the

same brand name and carry out heavy advertising, so that consumers do not forget their liquor brands," says the Indian Union Health minister, Anbumani Ramadoss. The Union Health Ministry of India took a stern view of unbridled surrogate advertising by the alcohol and cigarette industry in India and undertook surveillance of the same with the help of the Information & Broadcasting (I&B) Ministry. In an interview in January 2001 to DD National (the Government owned TV channel), the I&B Minister Sushma Swaraj clarified what kind of surrogate advertising will be allowed on television channels. She said, "Where a product is being manufactured and a brand has been built around it by the liquor company, advertising for that product will not be considered as surrogate advertising and will be permitted. Where the product is not being manufactured in substantial quantities, it will be seen as surrogate advertising and will be disallowed." The Minister quoted the example of the UB group's Kingfisher beer, which also retails Kingfisher mineral water and said, "Advertising for Kingfisher will be allowed. However, advertising for McDowell's cricket bats and balls will be perceived as surrogate advertising." According to critics of surrogate advertising, Vijay Mallya ventured into other businesses under the name of Kingfisher to covertly promote his beer brand. Some even believe that the very concept of having an airline was to promote Kingfisher beer. There have been consistent protestations against surrogate advertising and the government has imposed curbs on such ads on TV. The move has worried broadcasters and is likely to spell a loss of INR 250 cr or more in TV ad spends. Many peeved broadcasters however demand the definition of surrogate advertising. They questioned, "How do you implement such bans or disprove legitimate brand extension? Does this mean Kingfisher Airlines doesn't exist and can't advertise? Or that there is no Wills Lifestyle stores? And will Sony not be allowed to air Indian Premier League (IPL) matches featuring Royal Challengers (named after Royal Challenge, a liquor brand)?" Amidst such developments, in 2003-04, Mallya had the brand logo undergo a makeover with the Kingfisher bird flying (Annexure I). According to Mallya, the new logo reflects the brand's vision to scale new heights and foray into fresh expanse. Kingfisher's Brand Extension Mallya's significant extension of the Kingfisher brand was his incursion into the aviation industry. The year 2005 saw the UB Group entering the airline business with its Kingfisher Airlines. Although Mallya's original foray into airlines with the launch of UB Air in 1990 did not take off, Mallya decided to capitalize on the striking growth opportunities in the Indian airline industry through a second attempt. Noting the phenomenal rise in per capita income among the burgeoning Indian middle class, Mallya did some quick thinking. He engaged IMRB to assess a potential slot in the aviation sector. The result recommended that there was a need for a trendy, entertaining and a premium product. He decided to make the most of the notable status of Kingfisher and focus on young business travelers. By leveraging the brand equity of Kingfisher and the marketing skills of The UB Group, Kingfisher Airlines Limited (KAL) was launched. “We are building a sustainable business model in which we cut costs where they can sensibly be cut, but we also offer a premium-class product to the growing wealthy Indian," says Mallya. Mallya gave the KAL launch wide publicity by scheduling it on his son's birthday on May 9, 2005 and throwing a lavish party. Mallya opted for the premium route with four flights a day with one brand new Airbus A-320 aircraft. "The aircraft and service will reflect the Kingfisher lifestyle imagery and credibility that has been built over the years," Mallya said. His competitively priced fares and quality service instantly helped attract customers.According to Mallya, Kingfisher offers full service at true value and delivers an unparalleled experience to the Indian air traveler. For the first time in India, Kingfisher Airlines offered world-class in-flight entertainment with audio-visual screens for every traveler. In addition, gourmet meals and cabin crew of international standards made up a unique `Kingfisher Class guest experience'. The `guest experience' included valet service at check-in, live in-flight satellite television, takeaway goody bags and "the prettiest air hostesses in the sky".

Though Mallya is at the helm of a multibillion-dollar business empire, he sees his additional role as chairman and chief executive of Kingfisher Airlines as a vital responsibility. He micro-manages Kingfisher Airlines so persuasively that he not only monitors aircraft turnaround and load factor data, but also flies Kingfisher regularly to scrutinize service standards and is involved in practically everything from the choice of staff uniforms to interviewing would-be employees. Meticulous attention is paid to flight attendant interviews, with Mallya insisting the need to personally study every future employee who will have contact with a `guest' to warrant stringent quality continuance. According to Mallya, "But the airline, this is such a huge investment by UB and it's so damn visible. If there is one wrong move in Kingfisher Airlines it could spell disaster. I am aware of that. Once I am established and I have the reputation of having an absolutely fine airline, then I can put this on autopilot too. Until then, this is not something I take lightly." In fact, every time a Kingfisher flight takes off, the flight manager reports directly to Mallya via SMS about the time of flight, number of passengers, etc. In 1996, Kingfisher took up worldwide sponsorship of the West Indies cricket team and Mallya was conscious to retain the stardom of Kingfisher throughout the series. The West Indies team was projected as a fun loving but thriving team, much akin to Kingfisher's image. The brand also cashed in on the popularity of Indian cricketers Ajay Jadeja and Sourav Ganguly for brand promotion during the 1996 World Cup. In contrast to brands like Pepsi, which focus only on cricket, Kingfisher promotes many sports including football, formula racing and rugby.Kingfisher has been observed to possess a 360 degree approach to brand promotions utilizing all possible means to communicate with its target audience (Annexure II). Mallya sponsors many glittering lifestyle events under the brand name. Kingfisher beer is a widely known brand across the globe, and industry watchers credit Mallya with having single handedly changed the image of his beer brand from a commodity to a lifestyle brand. Kingfisher beer commands a lion's share of the beer market in India and is sold in over 52 countries. Capitalizing on the popularity of the brand, UB launched Kingfisher Packaged Mineral Water in 1999. Kingfisher hosts some of the most colorful events of the fashion industry like the fashion awards, model hunt and the swimsuit calendar. The Kingfisher calendar, which is very popular for its exclusivity has attained a cult status within a few years of its launch. In March 2007, the UB Group also conducted its first King-size Polo event in Mumbai under the Kingfisher banner. The show flaunted the popular brand by the debut of `Kingfisher First' Polo Team and a fashion show by popular designer Anna Singh and many others. In 2007, NDTV, a popular Indian channel, joined hands with the Kingfisher brand in a first of-its-kind media alliance for the promotion of a lifestyle channel called `NDTV Good Times'. The channel targets an audience comprising multi-ethnic, socially buoyant consumers who live in style and enjoy life to the hilt. The assorted shows offered by this channel, touch upon a wide range of inspirational lifestyle topics on health, fashion, food, travel, luxury and such others. Speaking on the occasion of the channel's launch, Dr. Prannoy Roy, Chairman, NDTV Ltd., said, "NDTV is proud to pioneer yet another step in Indian television history. Our new offering, NDTV Good Times, will leverage the NDTV Group's proven programming and broadcasting skills in partnership with the admirable lifestyle appeal of the Kingfisher brand. The strength of the Kingfisher brand combined with NDTV's depth will give our new lifestyle channel a distinct edge." To quote Vijay Mallya, "The NDTV Good Times channel would leverage from the editorial credibility and quality of the NDTV group and the strong lifestyle appeal of the Kingfisher brand and icon, to offer Indian viewers a world-class television entertainment experience."In April 2008, with the launch of the DLF-IPL cricket, Kingfisher Airlines became the official umpire partner of the IPL for five years at INR 106 cr.Kingfisher sponsored all third umpire decisions during the 59 matches in the IPL during 2008. "Kingfisher Airlines has had a long association with a variety of sports at both the domestic and international levels including tennis, Formula 1, polo and now cricket. Their decision

bears testimony to the fact that the DLF Indian Premier League is here to stay, and is set to carve out a distinct niche for itself in the international cricket calendar," said Lalit Modi, Chairman and Commissioner, DLF Indian Premier League. The agreement authorized Kingfisher branding on the umpires' uniforms and hats during the league matches and other opportunities around the property. Mallya declared that his five-year association with the DLF-IPL was further demonstration of his commitment to building the Kingfisher Airlines brand through sports. Mallya had the foresight and vision to partner with a global sports event such as Toyota Formula 1 racing. Commenting on this, Mallya said, "Of all the available sponsorship opportunities and platforms, Formula 1 is the most premium and the most visible one. This association will naturally enhance the image of Kingfisher Airlines and catapult it to a league of select and renowned international brands that typically support Formula 1 initiatives. The shared values of Kingfisher Airlines and Formula 1 racing - a dedication to innovation, delighting viewers and guests, and commitment to absolute excellence - are highly complementary." At the Grand Prix, the distinct `Fly Kingfisher' insignia - which is now a recognizable brand in India and outside, will feature prominently on the TF107 Formula 1 racing cars at events across the globe. It will also be emblazoned on the drivers' helmets and overalls, and the available corporate branding platform. John Howett, President, Toyota Motorsport said, "This partnership is exciting news, not just for Panasonic Toyota Racing, but for Formula 1 in general. We hope this partnership will strengthen Formula 1's position in India and bring Panasonic Toyota Racing to the people of India. We are grateful for the support of an ambitious and successful brand like Kingfisher Airlines and we will help themas they expand into an international operation." Mallya is a classic example of how Asian CEOs can lead their brands by being the most vocal ambassadors of their brands to build and sustain brand equity. Mallya has ingeniously cashed in on the brand equity of his Kingfisher beer by using the same name and logo for his airlines and other lifestyle products and events (Annexure III). Kingfisher beer in India was the fourth biggest when he took over the company in 1983. At present, it is the runaway leader, with not less than 45% market share. He appears in Kingfisher's ads as the brand ambassador. Noted Indian journalist MJ Akbar, said, "The UB group must have done a thousand ad campaigns, but there has not been a campaign better than the life of Vijay Mallya." At the rear of all the glamour of swimsuits and fancy parties, one cannot make light of the sound strategies that have built Kingfisher into a super brand. Will the brand while maintaining international quality ensure that it is within the reach of the Indian consumer? Can the lifestyle image so painstakingly built survive in the long run? 

Q1. A well-known business wants to develop itself online. Explain the growth of Kingfisher with online marketing. What is your advice about kingfisher?Q2. A company has found that its revenues are higher than ever, but the company is still operating at a loss. Why is this explain in terms of Kingfisher?Q3. Do SWOT/ PEST analysis and give solution to the problem Kingfisher is facing now days. Explain the problem also.