COMPANY PROFILE: Started operations on: 9 May, 2005 ‡1st flight: Mumbai ± Delhi ‡Modelled its strategies on JetBlue Airways ‡Aircrafts called ‘Kingfisher Fun liners´ ‡All aircrafts had IFE ‡Only 1 class - Kingfisher Class
Marketing environment:Micro environment: COMPANY: Major goal of the kingfisher airline family is the consistent delivery of safe and enjoyable travel experience. SUPPLIERS : The airline needs regular supply of fuel, food and beverages, maintenance. MARKETING INTERMEDIARIES : Website, ticket booking agents is the few intermediaries. CUSTOMER : Company survives on the basis of meeting the needs, wants and providing benefits for their customers. Fares are average as compared to competitors. Launch of kingfisher red services to target budget flyers try to increase the perception of ‘More Value for Money’ for the passengers. COMPETITION: Closest competitor for kingfisher airlines is jet airways, as it is the fastest growing airline in India. PUBLIC : Company requires great inward investments from the shareholders to grow
Macro ENVIRONMENT: DEMOGRAPHICS - This is a five star airline service, so targets the upper class people. Thus income, social class and occupation are the factors that affect the company’s marketing strategies. ECONOMICS: factors which had affected KFA’s market are launch of new LCC, like go air & spice jet. Jet airways acquisition with air Sahara which would make Jet Airways Indias largest airline with an almost 45% market. There were also other challenges which affected the airline industry as a whole, like high aviation turbine fuel (ATF) prices and congestion problems at high traffic airports like Mumbai and Delhi. NATURAL: Involves the natural resources needed by the company as inputs. Environment concerns have grown steadily in past few years. Since airline needs fuel which is a natural resource, so it could be a serious problem in future economic growth of the company. TECHNOLOGICAL: Advances in technology affects market in many ways. Various developments in IT system.
MARKETING MIXKingfisher Airlines being a service industry experiences the 7 P’s…
4 p’s of Kingfisher airlines:(note: *in continuation of previous 2 P’s)Products &SERVICES:Kingfisher first:
PRICE: Kingfisher & Air Deccan have strategized a route rationalization process. Kingfisher – Corporate & Premium segment. Deccan – Price conscious mass market. Kingfisher First Advantage Coupons (6, 8, 12 coupons) King Saver Personal Coupons(8 tickets for Rs. 72,200)
PLACE:Kingfisher Airlines is an airline group based in India. Its head office isKingfisher House in Vile Parle (East), Mumbai.Kingfisher-Deccan group is the largest domestic airline with a fleet of 71aircrafts including 41 Airbus & 30 ATR aircrafts…….537 daily flights covering single largest network in India connecting69 cities.Distribution ---- FLIGHT BOOKING:Booking in personal.Travel Agents.Online.India’s first ‘flybuysms’ service.
Promotion mix:This section can be best explained using the IMC (Integrated MarketingCommunication).Advertising:This is any paid form of non-personal presentation &promotion of ideas, goods&services, from an identified sponsor. Outdoor advertising through hoardings…
Advertising through print media (in magazines & newspapers).Advertising through electronic media (televisions).
Sales promotion:These are short-term incentives to enhance the purchase or sale of aproduct or service.
PUBLIC RELATIONS:This is building good relations with the company’s various publics byobtaining favorable publicity, building up good corporate image, handlingor heading unfavorable rumors, stories, &events.
Personal selling:Personal presentation by firm’s sales force for the purpose of making sales& building customer relationship.
Direct marketing:It includes direct connection with carefully targeted individual consumersboth to obtain immediate response & cultivate lasting customerrelationships—the use of direct mail, the telephone, direct responsetelevision ,e-mail, the internet,& other tools to communicate with specificconsumers.
PRODUCT MANAGEMENTCORE BENEFIT - flying in style and comfortSERVICE DESIGNWelcome to the kingfisherExperience ensures easy accessibility to Guests. Telephone numbers areaccessible 24 hours ensure easy availability of tickets.Amendments and cancellations up to one hour before the scheduleddeparture.Keep their guests informed in case of known delays, cancellations anddiversions.At the airportValet Service. Checking-In, multiple checking counters.Guests are offered refreshments in case the delay is more than onehour roving agents.On board experienceIn-flight entertainment meal options- 6 different types of menu worldclass crew.Reaching your destinationBaggage Delivery…Delayed / missed Baggage…
Special needsSpecial care is taken even while assigning a seat on board the flight.These Guests are assigned seats closer to the exits and lavatories sothat they can board, use facilities and disembark in comfort.Hope you had great experienceKingfisher listens -their feedback system. We understand and improve.We respond -their follow up contacting customers.TARGETTINGSEC A, SEC B in the age in the age group of 25-45 years of age. Thissegment has travelled extensively and is aware of international traveltrends.They are modern, trendy and upwardly mobile looking for a great flyingexperience.They target young married professionals (age group 20-35) with smallkids and with income levels more than Rs. 7 lakhs per annum; whogenerally commute between Tier 1 and Tier 2 cities ; travel for businessand leisure ; frequent fliers ; enjoy the luxuries of life and have a benttowards flamboyancy.These fliers are generally observed to be hard core loyal.
PositioningThe airline was called a budget airline and not an LCC. Fares were abovethose of LC C s but lower than the economy class fares of Jet, Sahara,and IA.KFA also allowed multiple fare options and auctioning of tickets on alltraffic routes.The one word which people associate with Kingfisher airlines is‘Experience.’KFA created a new category Aviation Hospitality, thus makinghospitality and service the main focus.Consumers know that they just have to pay a bit more for high level ofcomfort during the journey.This shows how efficiently they have positioned themselves in themarket as a premium brand that provides high quality service at a bitextra cost.
PRODUCT LINESKingfisher FirstThe seats have a 48 inch seat pitch and a 125 degree seat recline withlaptop and mobile phone chargers on every seat. Passengers can availof the latest international newspapers and magazines.There is also steam ironing service on board Kingfisher First cabins.Every seat is equipped with a personalized IFE system with AVOD whichoffers a wide range of Hollywood and Bollywood movies, English andHindi TV programmes, TV channels and 10 channels of Kingfisher Radio.Passengers also get BOSE noise cancellation headphones.Kingfisher ClassThe Kingfisher Class has 32-34 inch seat pitch with footrests, equippedwith personal IFE systems with AVO D on-board. Passengers can accessthe latest movies, English and Hindi TV programmes, live TV andKingfisher Radio.There are 17 colour LC D drop-down screens mounted along withloudspeakers for audio in the cabin overhead, a head-end unit tohandle CDs and DVDs, and a crew control panel.
Kingfisher RedKingfisher Red is Kingfisher Airlines low-cost class on domestic routes.Passengers are given complimentary in-flight meals and bottled water.A special edition of Cine Blitz magazine is the only reading materialprovided.Kingfisher Airlines is the first airline in India to extend its King Clubfrequent flyer program to its low-cost carrier as well. Passengers canearn King Miles even when they fly Kingfisher Red, which they canredeem for free tickets to travel on Kingfisher Airlines or partnerairlines.
PRICING STRATEGY‘Vijay Mallya’ made it clear that KFA would not be positioned as a lowcost carrier as passengers would attribute the features of low costcarriers like low quality of service, delayed flight timings, etc., to KFA aswell.Hence, the airline was called a budget airline and not an LCC . Fareswere above those of LCC s but lower than the economy class fares ofJet, Sahara, and IA. KFA also allowed multiple fare options andauctioning of tickets on all traffic routes.Kingfisher follows a dynamic fare policy and the fare levels fluctuatedepending on the number of bookings made / anticipated on aparticular flight.It is their commitment to Guests that at any given point of time thelowest available fare at that time would be made available on allbooking mediums.
MY SUGGESTIONS:Being in a service industry, the ‘tangibility spectrum’ of ‘KingfisherAirline’ is very elastic.In other words all I want to say is as it is already doing, i.e.; ‘tangiblizingthe intangible’. By this I mean attaching tangibles with its services forvalue addition.The service they are providing is airline travel and the tangible aspectattached to it is the aircrafts. For value addition my suggestions are: There can holiday packages aligned with frequency of travelling, for business people or who frequently travel 3-4 times in a month, from the same airline. They can provide insurance to domestic passengers for a particular to and fro travel.(On each journey).