INTRODUCTION• In 1903, first flight by • The creation of new jobs • Fully private airlines are Wright brothers and lower fares. subject to a great deal of• Increased R&D of • More Americans were government regulation aircraft after World War flying so airplane load for II: World War II saw a factors were up. economic, political, and drastic increase in the • There was increased safety concerns pace of aircraft competition and a wider • entry barriers for new development and choice for passengers airlines are lower in a production. deregulated market• Deregulation in 1978: • Greater competition Deregulation– Entry and exit of routes and the • Pricing freedom pricing of fares were • new entrants often take deregulated. market share with highly reduced rates RegulatoryHistory Benefits considerations
AVIATION INDUSTRY TRENDS OPPORTUNITIES THREATS 9th Largest Aviation International air travel to grow by 6.6% a year 44% hike in fuel costs Market Projected growth of 12- Domestic aviation 14% in 2011-12 Rising in operatingmarket tripled in the expenses past five years Airbus and ATR provides advantageDomestic market share New Aviation policy to of 20 % in May, 2011 open skies to foreign First carrier to enter Big- airlines 3 alliances 11% increase in Expansion of product Entry of new airlines passenger revenue internationally
FACTORS INFLUENCING CONSUMER BEHAVIOR Personal Psychological Cultural Social • Age • Motivation • Family • Culture • Occcupation • Perception Influence • Social Class • Reference Groups
Dr Vijay Mallya Chairman and CEO of Kingfisher AirlinesLaunched under the brand name KingfisherAirlines in 2003 Owned by the Bangalore based UnitedBreweries GroupDr Vijay Mallya is also the Airlines BrandAmbassador
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 8international destinations in 8 countries across Asia andEuropeShort haul routes- airbus A320Long haul routes- airbus A330-200Emphasize on using new & technically fit aircraft whichensures 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 ofbollywood Ms Deepika Padukone as the brandambassador.
SEGMENTATION THE VARIOUS SEGMENT OF AIRLINE USERS: The other target At last but not the Firstly ,The major group is of young least ,the eliteusers are the students married professionals corporate, business ,low income group (age group 20-35) class people and who choose the with small kids and VIPs who demandminimum fare flight with income levels privacy and high whichever it is. more than Rs 7 lacs level of security and per annum safety.
TARGETINGFocus 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 • Kingfisher first as a• Cater to the different business class - economic segments of "butlers“ carry the consumer base . passengers’ bags on• Kingfisher class and off the plane.• Kingfisher red • Kingfisher red and class• Kingfisher first as an economic airlines• Kingfisher Elite for “the mango people”.
BUSINESS TRAVEL 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
The “king of good times” theme Not a journeyTHE Vijay Mallya –Indias . Richard Branson POSITIONING Its an “experience”. Not just a passenger An “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.
USERS • Grooming and NON USERS Present Ability • Trade off • Most high-end between extra domestic expense and carriers high standards • Exudes an air of luxury • Marvelous service
spunky, well- done interiors and trained airhostesses. beer tagline ofexuberant, yo "The King of uthful and Good Times" fast-paced the theme of image is "Fly the Good leveraged Times" is given Present to KFA. Strategies Kingfisher in-flight silent flying face of auctions the month
celebrities for Increase endorsements like advertising Milind Soman / expense Ranbir Kapoor who are youth icons introduce late nightlowering the prices flights between of their tickets metros Recommendations
COMPARISON OF KINGFISHER TO OTHER PLAYERS•Priced lower than Indianairlines, yet offer a great flyingexperience.•Interiors and food definitelybetter compared to otherairlines.•Captured a 27.6% market sharelast year in comparison to Jet-25.2% and Air India-17.2%.•Targeted frequent fliers•Passengers who enjoy theluxuries of life and have a benttowards flamboyancy.
SWOT ANALYSISStrength Weakness• Strong brand value and reputation in the • Highly priced for the service offered minds of customers • Yet to break even• Unmatched in-flight service • High attrition at top brass• Route rationalization• First airline to have a full new fleet of airbuses• Exclusive terminal share dealOpportunities Threats• Expanding tourism industry • Competitors• Under penetrated domestic market • Infrastructure issues• International market • Fuel prices• Untapped air cargo market • Economic slowdown
POSITIONING • Flying with • Young TARGETING • NicheSEGMENTATION Marketing: Kingfisher is married Talks with an experience professionals Goa Govt.S in itself with small • Partnering • It is not just kids with selling tickets • Income more premium per say but than Rs 7 hotels like also selling lakhs p.a. Park Hotel. “Experience” • Commute • Commute between Tier faster with 1 and Tier 2 entertainment cities • Hard core loyals
The “king of good times” theme Not a journeyTHE Vijay Mallya –Indias Richard Branson. POSITIONING Its an “experience”. Not just a passenger. An “honoured guest”
A PREMIER PRODUCT FOR THE INDIAN FLYER Strong Kingfisher Brand • High brand salience & preference in the minds of Indian consumerStrong Kingfisher Brand Diversified Network MonopolyHighest exclusive stations amongst private carriers • Destination Monopoly Destinations • Premium business class product, well trained young staff High Service Quality • Well spread on business and leisure routes Diversified Network