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Kingfisher's marketing plan


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    Marketing Plan of
    Kingfisher Airlines
    Submitted To:- Submitted By:- Prof. Prakher Sharma AnkitAgrawal
  • 2. 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.
  • 3. 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
  • 4. 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
  • 5. 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.
  • 6. Major Players
    Spice Jet Air India
    Indigo Go Airways
    Jagson Airlines Alliance Air
    Jet Airways KingFisher
  • 7. 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 trading
    2. Fertilizers
    3. Beverage Alcohol
    4. Engineering
    5. Aviation
  • 8. 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, inseatplugins for music, liveTV with 16 channels on each seat.
    100 percent E-ticket airline.
  • 9. 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. NareshTrehan
    DiwanArun Nanda
    Mr. GhyanendraNathBajpai
    Mr. N. Srivatsa, Company Secretary
    Mr. A. Raghunathan Chief Financial Officer
  • 10. Vision
    “The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.”
  • 11. Our Values
    SafetyThis is our overriding value. In our line of business, there is no compromise.
    ServiceWe 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.
  • 12. STP Analysis
    • 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.
    • Kingfisher First Class- company executives
    • 13. Kingfisher Class- Middle, Upper-Middle, Lower-Upper segment.
  • Positioning:
    • Lifestyle-
    FunlinersExperience, Designer Interiors
    • Benefits-
    last time booking facilities, refund in case of
    cancellation, In-flight Entertainments and many more
    • Quality-
    World class service provider, comfortable seats, etc
  • 14. PESTEL Analysis
    Political 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.
  • 15. 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.
  • 16. 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.
  • 17. S.W.O.T. Analysis
    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
    Under Penetrated Domestic market Existing Operators
    International market Infrastructure issue
    Untapped Air Cargo market Fuel Price hike
    Expanding Tourism Industry Low Profit Margin
  • 18. 4 P’s… Marketing Mix
  • 19. 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
  • 21.
    • Promotion
    • 22. Advertisements-
    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-shows
    • 23. Endorsing Celebrities like Katrina Kaif, Yana Gupta & DeepikaPadukone
    • Penetrated Pricing Strategy
    • 24. Economic & club premiere fare
    • 25. Discounted fare for Senior Citizen & Defense Personnel.
    • 26. US$ Fare & Visit India fare
    • 27. Night Saver fares
  • Service
    Competitive Pressure
    Low cost Carriers changing the game
  • 28.
  • 29.
    • Place
    • 30. Online Booking-,,,
    • 31. Payments- Credit Cards & Debit Cards
    • 32. Detail & Information- SMS / Call
    • 33. Outlets in every major city and at every airport across the country.
    • 34. 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.
  • Market Share
  • 35.  PORTER’s Five FORCE Model
    Threat from new Entrants (Virgin Atlantic, Qantas Airways)
    Bargaining Power of Customers
    • Eonomic & demographic changes
    • 36. Increasing awareness
    • 37. Exposure to global brands
    Bargaining Power of Suppliers
    Threat from Competition(Jet Airways, Airway India, Indigo)
    Threat from Other modes of transports- Railway, Roadways, Waterways
  • 38. 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)
    • 39. Kingfisher Class (Premium economy)
    • 40. 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
    • 41. 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.
  • 42. 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.
  • 43. 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.
  • 44. References
    i. Kingfisher Airlines official site
    ii. Google
    i. Phillip Kotler
  • 45. Thank You
    The Kingfisher AIRLINES
    The king of good times