Marketing mix

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7 P's, Marketing Mix, Kingfisher Airlines, Kingfisher.
POLITICAL FACTORS

• Open Sky Policy
• India’s Political environment-Tension with Pakistan, Government’s inability to control issues(Riots etc.)
• September 11-huge drop in air traffic due to safety and security concerns
• Trade relations with other countries have to be good

ECONOMIC FACTORS

• High operations cost due to huge demand which resulted in laying off employees at the time of recession.
• There has been huge contribution to the Indian Economy
• Rising cost of fuel
• There has been huge investment in the aviation sector

SOCIAL FACTORS

• People from varied groups have to be catered
• Destination, kinds of foods served have to be chosen carefully
• Development of cities leads to better services and airports
• Employment opportunities
• Safety regulations
• The status symbol attached to a plane travel

TECHNOLOGICAL FACTORS

• Use of internet-online ticket booking,updated flight information and handling of customers
• Restrucutring the existing airports to world class appeal.
• The growth of e-commerce and e-ticketing
• Satellite base navigation system
• Modernisation and privatization of the airports
• Developing green field airports with private sector. For example-In Bangalore, “Airport Corporation Limited”.


ENVIRONMENT FACTORS

• The increase in global warming
• The sudden and unexpected behavior of the atmosphere and the dependency on weather
• Shortage of the infrastructural capacity
• Tourism Saturation

LEGAL FACTORS

• FDI limits
• Airlines Acquisitions and the leasing cost.














1.1 Market Share


Source: http://dgca.nic.in/reports/mar-ind.htm
(Directorate General of Civil Aviation)






KINGFISHER AIRLINES
KINGFISHER AIRLINES was introduced by Mr.Vijay Malliya on 7th may 2005 , it was a subsidiary of united breweries holding limited. It was introduced in year 2005. That year itself kingfisher created hype in the market .it was a late entrant in aviation sector but it managed to establish a pinnacle position in its near future. Scanning through the performance of kingfisher, it attained a significant position in Indian market. Mr.Vijay Malliya, the strategist, left no stones unturned to make KINGFISHER AIRLINES a huge success.
That year itself KINGFISHER was awarded as “BEST NEW AIRLINE OF THE YEAR 2005” by center for Asia Pacific Aviation. In 2006 it was awarded as “SERVICE EXCELLENCE FOR NEW AIRLINES” by Skytrax. created brand equity for the organization over a period of 5 years i.e. it enhanced perceived benefits to the organization due to the brand name and goodwill it commanded in the market.
.Substitute services existed for airlines industry in the form of various other transport systems like transportation through roadways, railways and sea transport but it did not create any significant threat for aviation sector because of its unique characteristics like speed flexibility and time efficiency.
2.1 Strategic Alliance with Deccan

• The opportunity of having an equal right to fly overseas and
expand its presence in the subcontinent with a combined
fleet of 80 aircraft.
• Kingfisher Airlines - Air Deccan have its commonality of
fleet. With the same family of planes on both sides, there
they enjoyed a significant reduction of cost.
• They mutually took the advantages of their respective
operational Merging with Deccan and becoming single
corporate entity, Kingfisher got efficiencies

• They captured a greater business market in both top and end and cut price market in a fiercely competitive market in aviation industry.
2.2 SWOT Analysis
























MARKETING MIX
P’s


This P explain what range of products or services is been offered by the firm. As

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Marketing mix

  1. 1. MARKETING PROJECT SUBMITTED TO PROF. ADAPA SRINIVASA RAO IBS HYDERABAD Divya Gaury Saluja -27 Indurkar- 17 Anuj Shilpi Gupta-35 Sarkar-72 Jignesh Patel - 70 1
  2. 2. Contents AVIATION INDUSTRY ...........................................................................................3 1.1 Introduction ......................................................................................................3 1.2 Porter‟s Five Forces.......................................................................................4 1.3 Pestel Analysis ..............................................................................................5 1.4 Market Share .................................................................................................7 KINGFISHER AIRLINES.........................................................................................8 2.1 Strategic Alliance with Deccan .....................................................................8 2.2 SWOT Analysis .............................................................................................9 MARKETING MIX .................................................................................................10 RECOMMENDATION FOR FUTURE STRATEGIES.........................................19 2
  3. 3. AVIATION INDUSTRY 1.1 Introduction The Aviation industry in India is one of the fastest growing sectors globally. The sector has undergone rapid transformation since the liberalization drive that began in the earlier half of the decade. The origin of Indian civil aviation industry can be traced back to 1912, when the first air flight between Karachi and Delhi was started by the Indian State Air Services in collaboration with the UK based Imperial Airways. It was an extension of London-Karachi flight of the Imperial Airways. In 1932, JRD Tata founded Tata Airline, the first Indian airline. At the time of independence, nine air transport companies were carrying both air cargo and passengers. In early 1948, Government of India established a joint sector company, Air India International Ltd in collaboration with Air India (earlier Tata Airline) with a capital of Rs 2 crore and a fleet of three Lockheed constellation aircraft. The inaugural flight of Air India International Ltd took off on June 8, 1948 on the Mumbai-London air route. The Government nationalized nine airline companies vide the Air Corporations Act, 1953.. By 1995, several private airlines had ventured into the aviation business and accounted for more than 10 percent of the domestic air traffic. Today, Indian aviation industry is dominated by private airlines and these include low cost carriers, who have made air travel affordable. 3
  4. 4. 1.2 Porter’s Five Forces BUYER POWER – Low SUPPLIER POWER – High Economic and Demographic ATF Fuel Prices. Changes. Food Inflation Might Affect The Higher Disposable Incomes. Industry As Food Provided By Kingfisher Is Packed Through Increasing no. of Working Women. Premium Hotels. Increasing Awareness. Exposure to Global Brands. INDUSTRY RIVALRY (Moderate to High) Competitive Pricing is there Many upcoming players High exit costs involved THREAT OF SUBSTITUTES ENTRY BARRIERS - High Moderate to High Very Huge Capital Investment Indian Railway has improved Till 1991 No Private Player Was service level and quality. Can Allowed Due To License Raj give good competition in future. Subject To Strict Regulations Other Modes of Transportation. Still Govt. Interference In Pricing 4
  5. 5. 1.3 Pestel Analysis POLITICAL FACTORS  Open Sky Policy  India‟s Political environment-Tension with Pakistan, Government‟s inability to control issues(Riots etc.)  September 11-huge drop in air traffic due to safety and security concerns  Trade relations with other countries have to be good ECONOMIC FACTORS  High operations cost due to huge demand which resulted in laying off employees at the time of recession.  There has been huge contribution to the Indian Economy  Rising cost of fuel  There has been huge investment in the aviation sector SOCIAL FACTORS  People from varied groups have to be catered  Destination, kinds of foods served have to be chosen carefully  Development of cities leads to better services and airports  Employment opportunities  Safety regulations  The status symbol attached to a plane travel TECHNOLOGICAL FACTORS  Use of internet-online ticket booking,updated flight information and handling of customers  Restrucutring the existing airports to world class appeal.  The growth of e-commerce and e-ticketing 5
  6. 6.  Satellite base navigation system  Modernisation and privatization of the airports  Developing green field airports with private sector. For example-In Bangalore, “Airport Corporation Limited”. ENVIRONMENT FACTORS  The increase in global warming  The sudden and unexpected behavior of the atmosphere and the dependency on weather  Shortage of the infrastructural capacity  Tourism Saturation LEGAL FACTORS  FDI limits  Airlines Acquisitions and the leasing cost. 6
  7. 7. 1.4 Market Share Source: http://dgca.nic.in/reports/mar-ind.htm (Directorate General of Civil Aviation) 7
  8. 8. KINGFISHER AIRLINES KINGFISHER AIRLINES was introduced by Mr.Vijay Malliya on 7th may 2005 , it was a subsidiary of united breweries holding limited. It was introduced in year 2005. That year itself kingfisher created hype in the market .it was a late entrant in aviation sector but it managed to establish a pinnacle position in its near future. Scanning through the performance of kingfisher, it attained a significant position in Indian market. Mr.Vijay Malliya, the strategist, left no stones unturned to make KINGFISHER AIRLINES a huge success. That year itself KINGFISHER was awarded as “BEST NEW AIRLINE OF THE YEAR 2005” by center for Asia Pacific Aviation. In 2006 it was awarded as “SERVICE EXCELLENCE FOR NEW AIRLINES” by Skytrax. created brand equity for the organization over a period of 5 years i.e. it enhanced perceived benefits to the organization due to the brand name and goodwill it commanded in the market. .Substitute services existed for airlines industry in the form of various other transport systems like transportation through roadways, railways and sea transport but it did not create any significant threat for aviation sector because of its unique characteristics like speed flexibility and time efficiency. 2.1 Strategic Alliance with Deccan  The opportunity of having an equal right to fly overseas and expand its presence in the subcontinent with a combined fleet of 80 aircraft.  Kingfisher Airlines - Air Deccan have its commonality of fleet. With the same family of planes on both sides, there they enjoyed a significant reduction of cost.  They mutually took the advantages of their respective operational Merging with Deccan and becoming single 8
  9. 9. corporate entity, Kingfisher got efficiencies  They captured a greater business market in both top and end and cut price market in a fiercely competitive market in aviation industry. 2.2 SWOT Analysis STRENGTHS WEAKNESSES  KFA has a strong brand  Still not in profit due to value and reputation in Long Gestation Period of the mind of customers. the Industry.  Quality of service  High ticket pricing  Route rationalization  Facing a tough competition from  First airline to have a competitors new fleet of airbuses.  Quality and continuous innovation.  Best R & D OPPORTUNITIES THREATS  The expanding tourism  Threat from competitors industry  Infrastructural issues  The non penetrated domestic market  Hike in fuel prices  Tapping the international  Tourism saturation market  Economic slowdown  Catering the untapped air  Promotion and cargo market sponsorship is declining 9
  10. 10. MARKETING MIX P‟s This P explain what range of products or services is been offered by the firm. As the firm grows ancillary services and products also start growing sometimes related diversification is also observed thus larger organizations go for vertical integration in order to manage the value chain. Kingfisher has created its service differentiation by providing quality service and delivering value to the passengers by creating a lavish and luxurious experience. Also it provided secondary services like King Mobile: 10
  11. 11. Kingfisher Airlines became the first Indian Airline to launch a range of services on the mobile platform. Now one can check for flight updates, buy tickets through SMS or access a world of services through a simple mobile application - anytime anywhere Little Wings: Kingfisher Airlines, provides onboard experience which promises to be full of delightful & unforgettable moments. The airlines call its passengers as ‟guests‟ and as soon as the flight takes off, they‟ll soon be absorbed in the thrill of stretching their own little wings. Kingfisher Holidays: This scheme provides its passengers with King Miles which one can redeem for stay in hotels, car rentals etc. Kingfisher Elite: In today‟s competitive business environment, the pressure on productivity, cost and efficiency are greater than ever before. Kingfisher Elite offers exclusive travel solutions. One can Fly at one‟s own convenience anywhere, anytime and choose who flies along with them in the utmost comfort, safety and privacy. Be it business or leisure, one can select from the range of business jets and provide the most exquisite service complimented with the highest safety standards, allowing one to arrive to their destination relaxed and refreshed. Kingfisher is now to launch 14 more planes for improving the domestic service in the major cities. A firm must set a price for the first time when it develops a new product. The firm searches for a set of prices that maximizes profit on the total mix. Market share to determine prices to customers and channel patterns. Prices across models and geographic regions have to be determined. Quality Prices Variety Serives 11
  12. 12.  The price segments that Kingfisher targets is the higher income group as well as the upper middle class background.  There are a few segments that are majority of the youth and high lifestyle segments.  The pricing is also done keeping in mind those people who are ready to pay for luxury.  Initially Kingfisher airlines did not differentiate between business class and economy class. But eventually they decreased the prices of business class and called those seats as premium seats.  Fares were very average.  They targeted middle class as well as premium class people. A „Low-Cost‟ option has been given by the introduction of Kingfisher Red services to compete with other „No- frills‟ airlines.  The Kingfisher Red serves complementary meals on board, thereby increasing the perception of „More Value for Money‟ for the passengers PRICING STRATEGY Class of Day of travel travel Load factors Date of travel 12
  13. 13.  It is the largest Domestic Airline with a fleet of 60+ aircraft.  Connecting 61 Cities in India including 8 International Destination.  Flight Bookings: o Book in Person o Travel Agents o Online o India‟s first „flybuysms‟ Service  The process of kingfisher airlines services lays emphasis on the involvement of channels, front line staff, travel agency offices, offices of tour operators, or so from where the services flow and reach to the ultimate users.  The process begins at the time of reservation and goes on up to the confirmation of seats.  By giving details of where to book and how to book kingfisher airlines help in providing quality services to its customers..  They also offer concession by not charging any cancellation charges and also giving them options to make a change in the reservation status if they required.  Facilities at the airport, the baggage handling, flight information, also helped in delivering quality service and making travel a pleasure.  Kingfisher Airline is making every effort to constantly redefine service procedures to enhance service satisfaction levels.  In aircraft the meal service, in flight entertainment, reading materials, etc enables the customers to have an enjoyable and convenience. 13
  14. 14. COMFORT PHSYCAL EVIDENCE INTERIOR DESIGINING Billing system 14
  15. 15.  At Kingfisher Airlines, the aircraft by itself, the seating configuration which is meant to be comfortable and spacious and the in flight food food provided, constitute the physical evidence in this service.  The seating is such that it is comfortable and there is enough leg space.  Kingfisher has introduced new sleeper seats which electric controls for reclining lumber support, leg rest extension, expanded seat back and thus providing highly comfortable seating.  Booking offices and ticket counters are extremely spacious and well designed with good looks.  Domestic lounges are enhanced with good interiors and basic amenities which make it an ideal place to conduct business, entertain and relax. 15
  16. 16. At Kingfisher Airlines, people are the most important. People provide most services that is selection, training and motivation of the employees. The airhostess at kingfisher come in contact with the customers in the process of providing the service, while the cock-pit crew are the employees who contribute to the service product but there is no direct contact with the customers. The frontline staff plays an important role in order to make sure that the service has been delivered to the customers in an apt and an efficient manner. Kingfisher Airline‟s cabin and ground crew is the hallmark of their services. The quality of staff service is impeccable and the airline is able to sustain these high quality levels as they experience continued and rapid expansion people that is the staff deliver high standards of service efficiency, and in a sincere and charming manner that makes it stand out from the rest of the airlines. The airline also provides the crew to undergo rigorous training programs. The airlines has also instituted the Kingfisher Training Academy to cater to the growing demand for trained service oriented professionals. As a part of its promotional strategy kingfisher‟s marketing team showcases themselves as the “the new flying experience” in the aviation industry. Advertisement hoardings at airport depicted the stylish interiors of the fun liners‟ which led them to the following advantages:-  It has built up a long term image for the product.  This hoardings put by them to repeat the messages many them. 16
  17. 17.  The artful uses of the color and print led to convey a youthful, fun-filled and world class image. Besides this INOX multiplexes in Mumbai publicized KFA‟S special offer for a month. They promoted greater consumer awareness for prices. This gave Kingfisher a great deal of competitive advantage with respect to other low cost airlines.KFA was the official travel airline for the cast and crew of „Mangal Pandey‟ and gave a warm welcome to all the guests who attended the premiere of the film. In addition to that KFA as a low cost airline also followed some other promotional strategies which are listed below:- 17
  18. 18.  Organized the guest speakers at the seminars and present their ideas on the areas of their expertise.  Sponsored many cultural events and have celebrity endorsements.  Sponsored sports team and charity events.  Designed image logo for the company. The organizing of events have given them a lot of advantages to establish their brand name. To enlist a few:-  It increased awareness of the company and helps to enhance their brand name.  It upraised their corporate image.  These promotional tools helped KFA to express commitment to the community and social issues.  KFA made use of various fashion shows, celebrity golf matches, New Year parties all to build its “Kingfisher” brand.  In October, KFA launched “Chill Times Offer” in the month of Augur.  KFA launched many attractive offers to promote its sales like the “King Card” in association with ICICI Bank, in August 2005. This was meant to create loyal customers for KFA by providing benefits like privileged access to lounges, restaurants, free refreshments at airports, access to 180 golf clubs across India, special invites for lifest. Thus by implementing all this measures kingfisher succeeded to have a loyal customer base. 18
  19. 19. RECOMMENDATION FOR FUTURE STRATEGIES Market  Can tie up with Corporate and Government Companies by Penetration Providing Unique Travel Solutions for Professional and Personal Use. Can implement programs implemented by South West Airlines to penetrate market.  Seek additional distribution channels such as more tie ups and Product collaboration. Development 19
  20. 20.  Collaboration with international carriers, bilateral discussions over seats and code sharing between the carriers. Market  Special offerings for first time fliers. Development  Try to find out new customer group such as old-retired persons.  Can enter into other Transport Services like Bus Services between Major Cities and Other Services. Diversification 20

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