kingfisher's marketing plan
TRANSCRIPT
INDIAN INSTITUTE OF FINANCIAL MANAGEMENT, INDORE
Submitted To:- Submitted By:- Prof. Prakher Sharma Ankit Agrawal
Devendra Thakur
Marketing Plan of
Kingfisher Airlines
Airline Industry in India• One of the fastest Growing Aviation market.• There are approximately 1 billion people & only about 0.05% of them fly.• More and more middle class families now prefer Air Travel to Traditional Rail
travel.• The Indian Travel market is expected to triple to $51 billion by 2011 from 16.3
billion in 2005-06.• AAI totally manages 127 airports
- includes 13 International airports;- 7 custom Airports;- 80 Domestic airports;- 28 Civil enclaves.
• Over 1100 registered aircrafts.• By 2020, Indian airports are estimated to handle 100 million passengers
including 60 million domestic passengers.• The amount of cargo handled will fall in the range of 3.4 million tones
per annum.
History of Indian Airlines• 1911 First Commercial flight Airmails from Allahabad to Naini(10 km)• 1932 The Aviation Department of Tata Sons ltd. established • 1938 Tata Airlines(successor to Aviation division of Tata Son)• 1946 Tata Air Lines converted into a public Company and renamed as Air India Limited• 1948 Air India International incorporated• 1953 Nationalization of Aircraft Industry Air India(serving the international sectors) Indian Airlines(serving domestic sectors) Deccan Airways, Airways India, Bharat Airways, Himalayan Aviation, Kalinga Airlines, Indian National Airways and Air Services of India• 1986 Private Sector Players permitted as Air Taxi operators Players including Jet, Air Sahara, NEPC, East West, Modiluft, etc started service
• 1990 Open sky policy• 1994 Private Carriers permitted to operate scheduled services• 2003 Entry of low-cost carriers• 2007 Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways• 2008 Kingfisher acquired 49% stake in Deccan Aviation
Regulatory Authorities• Ministry of Civil Aviation
Responsible for the formulation of policy, development and regulation of Civil Aviation. Its functions also extend to overseeing airport facilities, air traffic services and carriage of passengers and goods by air.
• Other Attached/Autonomous Organizations: Directorate General of Civil Aviation (DGCA)
Promote safe and efficient Air Transportation through regulation and proactive safety oversight system
• Bureau of Civil Aviation Security (BCAS) Regulatory authority for civil aviation security in India
• Airport Authority of India (AAI) Accelerate the integrated development, expansion and modernization of
the operational, terminal and cargo facilities at the airports.
Major Players
• Spice Jet Air India
• Indigo Go Airways
• Jagson Airlines Alliance Air
• Jet Airways KingFisher
United Breweries(UB) Group• The UB Group is known as a large USD 2.2 billion corporate conglomerate with
business interests ranging from spirits, engineering, fertilizers and civil aviation to pharmaceuticals.
• They constitute a large global group based in India and associate with world leaders in order to adopt technologies and processes, which will enable a leadership position in a large spectrum of activities. UB Group is an employer of choice for aspiring professionals who like challenges no matter what the field or function.
• We endeavour to be the most preferred employer wherever we operate.• The Business of UB Group are:-
1. International trading2. Fertilizers3. Beverage Alcohol4. Engineering5. Aviation
Kingfisher Airlines
• Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlines.
• Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights.
• Head Quartered at Bengaluru.• There are tools for mood lighting
such as web chat, inseat plugins for music, liveTV with 16 channels on each seat.
• 100 percent E-ticket airline.
Board Members• Dr. Vijay Mallya, Chairman & CEO• Capt. G. R. Gopinath, Vice Chairman• Capt. K.J. Samuel• Mr. A.K. Ravi Nedungadi • Mr. Vijay Amritraj• Mr. Anil Kumar Ganguly• Mr. Piyush G. Mankad• Dr. Naresh Trehan• Diwan Arun Nanda• Mr. Ghyanendra Nath Bajpai• Mr. N. Srivatsa, Company Secretary• Mr. A. Raghunathan Chief Financial Officer
Vision
“The Kingfisher Airlines family will consistently deliver a safe, value-based
and enjoyable travel experience to all our guests.”
OUR VALUES• Safety
This is our overriding value. In our line of business, there is no compromise.• Service
We are all in the hospitality business; we must always seek to serve our guests and gain their trust, goodwill and loyalty.
• HappinessWe seek to build an organisation with people who choose to be happy, and will endeavour to influence our guests and co-workers to be happy too.
• TeamworkWe will succeed or fail as a team. Each one of us must respect our colleagues regardless of their rank, and we must work together to ensure our mutual success.
• AccountabilityEach one of us will be held accountable for the successful execution of our duties, commitments and obligations, and we will strive to lead by example.
STP Analysis• Segmentation:
Geographic Segmentation-• Secondary Hubs- Mumbai, Delhi & Kolkatta.• Focus Cities- Cochin, Pune, Ahmedabad, Hydrabad, Indore, Jaipur
& many more.• International Destinations- London, Colombo, Dubai, Singapore,
Bangkok, Dhaka, Hog Kong, Kuala Lumpur & Maldives.Demographic Segmentation-• Gender- both Male & Female• Social Classes- Age group from 25 to 45 years.• Income Level- Higher and Higher-Middle Income group.
• Targeting:Kingfisher First Class- company executivesKingfisher Class- Middle, Upper-Middle, Lower-Upper segment.
• Positioning:Lifestyle- • Funliners Experience, Designer InteriorsBenefits- • last time booking facilities, refund in case of
cancellation, In-flight Entertainments and many moreQuality- • World class service provider, comfortable seats, etc
PESTEL AnalysisPolitical Regulators:• Directorate General of Civil Aviation(DGCA)
- controls flying Licenses, pilots, certifying aircrafts and procedures to govern airports & airspace.
• Airport Authority of India(AAI)- Assigned the responsibility of managing National and International airports
and administration through Air Traffic Control(ATC).• FDI ceiling in Airlines sector is 49% currently.• FDI limits:
- 100% for Greenfield airports- 74% for the existing airports- 100% for NRI’s.
Economic Factors• Contribution to the Indian Economy• Rising cost of fuel• Investment in the sector of Aviation.• The growth of middle income group family affects the Aviation sector• Shortage of Infrastructure capacity
Social Factors• Development of cities leads to better services and airports• Employment opportunities• Safety regulations
Technological Factors• The growth of e-commerce and e-ticketing• Mobile and online check-in• Modernization and privatization of airports.• Upgradation of ATC.
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• Airlines acquisitions and the leasing cost• Government policy to not allow the creation of airports closer than 150km from
each other like Bangaluru and Hyderabad old airports were closed down when the new ones were started.
S.W.O.T. Analysis
Strengths Weaknesses First airline with full new fleet of aircraft Service delivery to metros and other big cities Quality hospitality provided to customers Yet not in profit
Route Rationalization High ticket pricing Already have Training Academy Facing a tough competition from
competitors. Quality and continuous Innovation
Opportunities ThreatsUnder Penetrated Domestic market Existing Operators
International market Infrastructure issue Untapped Air Cargo market Fuel Price hike
Expanding Tourism Industry Low Profit Margin
• ProductFleet Size
Airbus A319- 3no. Airbus A320- 25no.Airbus A321- 8no.Airbus A330- 5no.ATR 42- 6no.ATR 72- 27no.
International Foray- Started business from 3rd September, 2008
• PromotionAdvertisements-
Hoardings, Brand Ambassadors.Magazine and Newspaper ads-
Business Outlook, The Economic Times, etc.Exposure at non-corporate event-
Sponsorships at Tournaments, etc.Participation in International Air-showsEndorsing Celebrities like Katrina Kaif, Yana Gupta & Deepika Padukone
• PricePenetrated Pricing StrategyEconomic & club premiere fareDiscounted fare for Senior Citizen & Defense Personnel.US$ Fare & Visit India fareNight Saver fares
• PlaceOnline Booking - flykingfisher.com, Yatra.com, MakeMyTrip.com,
ezeego1.comPayments- Credit Cards & Debit CardsDetail & Information- SMS / CallOutlets in every major city and at every airport across the country.Covers even the toughest terrains in the country, and the services
ranges from Ahmadabad to Agartala and to the major cities such as Delhi, Bangalore, and Chennai etc.
PORTER’s Five FORCE Model
Bargaining Power of Suppliers
Threat from new Entrants (Virgin Atlantic, Qantas
Airways)
Threat from Competition(Jet
Airways, Airway India, Indigo)
Threat from Other modes of transports- Railway, Roadways,
Waterways
Bargaining Power of Customers•Eonomic & demographic changes•Increasing awareness•Exposure to global brands
Problem Identification• Current Indian scenario: Air travel
For majority of people preference-No frills – low cost airlines
• Three unique classes of service :– Kingfisher First (Business class) Kingfisher Class (Premium economy) Kingfisher Red (Low fare)
• Current segmentation based on social class & income level Social classes: which use full carrier services and those which use first class
services of the railways Income level: Low cost carrier for those who travel by first class railway
• Problem with positioning Brand relates to Lifestyle
Suggestions• Remove the flights from low frequency routes.• Reduce the labor cost.• Simplify the flight operations.• Increase Revenue-per-passenger.• Try to focus on smaller aircrafts(50-70 seaters) and fuel efficient planes
for short distance.• For a long term strategy, Internationally focus should be done so to
cater the International market also.• Different modes of pricing should be taken care of.
Kingfisher - 5 Star Airline
Kingfisher is one of only six airlines in the world to have a five-star rating from Skytrax, along with Asiana Airlines, Malaysia Airlines, Qatar Airways, Singapore Airlines and Cathay Pacific Airways.
Awards
Kingfisher Airlines has received 30 awards for innovation, customer responsiveness and was voted the Best New Airline of the Year within
months of its launch.
References
• Webliography:-i. Kingfisher Airlines official siteii. Googleiii. Slideshare.net
• Bibliographyi. Phillip Kotler