Kingfisher's marketing plan

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Kingfisher's marketing plan

  1. 1. INDIAN INSTITUTE OF FINANCIAL MANAGEMENT, INDORE<br />Marketing Plan of <br />Kingfisher Airlines<br />Submitted To:- Submitted By:- Prof. Prakher Sharma AnkitAgrawal<br />DevendraThakur<br />
  2. 2. Airline Industry in India<br />One of the fastest Growing Aviation market.<br />There are approximately 1 billion people & only about 0.05% of them fly.<br />More and more middle class families now prefer Air Travel to Traditional Rail travel.<br />The Indian Travel market is expected to triple to $51 billion by 2011 from 16.3 billion in 2005-06.<br />AAI totally manages 127 airports<br /> - includes 13 International airports;<br /> - 7 custom Airports;<br /> - 80 Domestic airports;<br /> - 28 Civil enclaves.<br />Over 1100 registered aircrafts.<br />By 2020, Indian airports are estimated to handle 100 million passengers including 60 million domestic passengers.<br />The amount of cargo handled will fall in the range of 3.4 million tones <br /> per annum.<br />
  3. 3. History of Indian Airlines<br />1911 First Commercial flight Airmails from Allahabad to Naini(10 km)<br />1932 The Aviation Department of Tata Sons ltd. established <br />1938 Tata Airlines(successor to Aviation division of Tata Son)<br />1946 Tata Air Lines converted into a public Company and<br /> renamed as Air India Limited<br />1948 Air India International incorporated<br />1953 Nationalization of Aircraft Industry<br /> Air India(serving the international sectors)<br /> Indian Airlines(serving domestic sectors)<br /> Deccan Airways, Airways India, Bharat Airways,<br /> Himalayan Aviation, Kalinga Airlines, Indian National<br /> Airways and Air Services of India<br />1986 Private Sector Players permitted as Air Taxi operators<br /> Players including Jet, Air Sahara, NEPC, East West,<br />Modiluft, etc started service<br />
  4. 4. 1990 Open sky policy<br />1994 Private Carriers permitted to operate scheduled services<br />2003 Entry of low-cost carriers<br />2007 Merger of Indian Airlines into Air India<br /> Acquisition of Air Sahara by Jet Airways<br />2008 Kingfisher acquired 49% stake in Deccan Aviation<br />
  5. 5. Regulatory Authorities<br /><ul><li>Ministry of Civil Aviation</li></ul> 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.<br /><ul><li>Other Attached/Autonomous Organizations:</li></ul> Directorate General of Civil Aviation (DGCA)<br /> Promote safe and efficient Air Transportation through regulation and proactive safety oversight system<br /><ul><li>Bureau of Civil Aviation Security (BCAS)</li></ul> Regulatory authority for civil aviation security in India<br /><ul><li>Airport Authority of India (AAI)</li></ul> Accelerate the integrated development, expansion and modernization of the operational, terminal and cargo facilities at the airports.<br />
  6. 6. Major Players<br />Spice Jet Air India <br />Indigo Go Airways<br />Jagson Airlines Alliance Air<br />Jet Airways KingFisher<br />
  7. 7. United Breweries(UB) Group<br />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.<br />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.<br />We endeavour to be the most preferred employer wherever we operate.<br />The Business of UB Group are:-<br /> 1. International trading<br /> 2. Fertilizers<br /> 3. Beverage Alcohol<br /> 4. Engineering<br /> 5. Aviation<br />
  8. 8. Kingfisher Airlines<br />Dr Vijay Mallya is the Chairman and CEO of Kingfisher Airlines.<br />Kingfisher Airlines Limited launched scheduled airline services on May 9, 2005 with 4 daily flights.<br />Head Quartered at Bengaluru.<br />There are tools for mood lighting such as web chat, inseatplugins for music, liveTV with 16 channels on each seat.<br />100 percent E-ticket airline.<br />
  9. 9. Board Members<br />Dr. Vijay Mallya, Chairman & CEO<br />Capt. G. R. Gopinath, Vice Chairman<br />Capt. K.J. Samuel<br />Mr. A.K. Ravi Nedungadi<br />Mr. Vijay Amritraj<br />Mr. Anil Kumar Ganguly<br />Mr. Piyush G. Mankad<br />Dr. NareshTrehan<br />DiwanArun Nanda<br />Mr. GhyanendraNathBajpai<br />Mr. N. Srivatsa, Company Secretary<br />Mr. A. Raghunathan Chief Financial Officer<br />
  10. 10. Vision<br /> “The Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.”<br />
  11. 11. Our Values<br />SafetyThis is our overriding value. In our line of business, there is no compromise.<br />ServiceWe are all in the hospitality business; we must always seek to serve our guests and gain their trust, goodwill and loyalty.<br />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.<br />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.<br />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.<br />
  12. 12. STP Analysis<br />Segmentation:<br /><ul><li>Geographic Segmentation-</li></ul>Secondary Hubs- Mumbai, Delhi & Kolkatta.<br />Focus Cities- Cochin, Pune, Ahmedabad, Hydrabad, Indore, Jaipur & many more.<br />International Destinations- London, Colombo, Dubai, Singapore, Bangkok, Dhaka, Hog Kong, Kuala Lumpur & Maldives.<br /><ul><li>Demographic Segmentation-</li></ul>Gender- both Male & Female<br />Social Classes- Age group from 25 to 45 years.<br />Income Level- Higher and Higher-Middle Income group.<br />Targeting:<br /><ul><li>Kingfisher First Class- company executives
  13. 13. Kingfisher Class- Middle, Upper-Middle, Lower-Upper segment.</li></li></ul><li>Positioning:<br /><ul><li>Lifestyle- </li></ul>FunlinersExperience, Designer Interiors<br /><ul><li>Benefits- </li></ul>last time booking facilities, refund in case of<br />cancellation, In-flight Entertainments and many more<br /><ul><li>Quality- </li></ul>World class service provider, comfortable seats, etc<br />
  14. 14. PESTEL Analysis<br />Political Regulators:<br />Directorate General of Civil Aviation(DGCA)<br /> - controls flying Licenses, pilots, certifying aircrafts and procedures to govern airports & airspace.<br />Airport Authority of India(AAI)<br /><ul><li>Assigned the responsibility of managing National and International airports and administration through Air Traffic Control(ATC).</li></ul>FDI ceiling in Airlines sector is 49% currently.<br />FDI limits:<br /> - 100% for Greenfield airports<br /> - 74% for the existing airports<br /> - 100% for NRI’s.<br />
  15. 15. Economic Factors<br />Contribution to the Indian Economy<br />Rising cost of fuel<br />Investment in the sector of Aviation.<br />The growth of middle income group family affects the Aviation sector<br />Shortage of Infrastructure capacity<br />Social Factors<br />Development of cities leads to better services and airports<br />Employment opportunities<br />Safety regulations<br />Technological Factors<br />The growth of e-commerce and e-ticketing<br />Mobile and online check-in<br />Modernization and privatization of airports.<br />Upgradation of ATC.<br />
  16. 16. Environmental Factors<br />The increase in the global warming<br />The sudden and unexpected behavior of the atmosphere and the dependency on whether<br />Shortage of the infrastructural capacity<br />Tourism saturation<br />Legal Factors<br />Airlines acquisitions and the leasing cost<br />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.<br />
  17. 17. S.W.O.T. Analysis<br />StrengthsWeaknesses<br /> First airline with full new fleet of aircraft Service delivery to metros and other big cities<br /> Quality hospitality provided to customers Yet not in profit<br /> Route Rationalization High ticket pricing<br /> Already have Training Academy Facing a tough competition from competitors.<br />Quality and continuous Innovation<br />OpportunitiesThreats<br />Under Penetrated Domestic market Existing Operators<br /> International market Infrastructure issue<br /> Untapped Air Cargo market Fuel Price hike<br /> Expanding Tourism Industry Low Profit Margin<br />
  18. 18. 4 P’s… Marketing Mix<br />
  19. 19. <ul><li>Product
  20. 20. Fleet Size</li></ul> Airbus A319- 3no. <br /> Airbus A320- 25no.<br /> Airbus A321- 8no.<br /> Airbus A330- 5no.<br /> ATR 42- 6no.<br /> ATR 72- 27no.<br /><ul><li>International Foray</li></ul> - Started business from 3rd September, 2008<br />
  21. 21. <ul><li>Promotion
  22. 22. Advertisements-</li></ul> Hoardings, Brand Ambassadors.<br /><ul><li>Magazine and Newspaper ads-</li></ul> Business Outlook, The Economic Times, etc.<br /><ul><li>Exposure at non-corporate event-</li></ul> Sponsorships at Tournaments, etc.<br /><ul><li>Participation in International Air-shows
  23. 23. Endorsing Celebrities like Katrina Kaif, Yana Gupta & DeepikaPadukone</li></ul>Price<br /><ul><li>Penetrated Pricing Strategy
  24. 24. Economic & club premiere fare
  25. 25. Discounted fare for Senior Citizen & Defense Personnel.
  26. 26. US$ Fare & Visit India fare
  27. 27. Night Saver fares</li></li></ul><li>Service<br />Competitive Pressure<br />Low cost Carriers changing the game<br />Indigo<br />Price<br />
  28. 28.
  29. 29. <ul><li>Place
  30. 30. Online Booking- flykingfisher.com, Yatra.com, MakeMyTrip.com, ezeego1.com
  31. 31. Payments- Credit Cards & Debit Cards
  32. 32. Detail & Information- SMS / Call
  33. 33. Outlets in every major city and at every airport across the country.
  34. 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.</li></li></ul><li>Market Share<br />
  35. 35.  PORTER’s Five FORCE Model<br />Threat from new Entrants (Virgin Atlantic, Qantas Airways)<br />Bargaining Power of Customers<br /><ul><li>Eonomic & demographic changes
  36. 36. Increasing awareness
  37. 37. Exposure to global brands</li></ul>Bargaining Power of Suppliers<br />Threat from Competition(Jet Airways, Airway India, Indigo)<br />Threat from Other modes of transports- Railway, Roadways, Waterways<br />
  38. 38. Problem Identification<br />Current Indian scenario: Air travel<br /><ul><li>For majority of people preference-No frills – low cost airlines</li></ul>Three unique classes of service :– <br /><ul><li>Kingfisher First (Business class)
  39. 39. Kingfisher Class (Premium economy)
  40. 40. Kingfisher Red (Low fare)</li></ul> Current segmentation based on social class & income level <br /><ul><li>Social classes: which use full carrier services and those which use first class services of the railways
  41. 41. Income level: Low cost carrier for those who travel by first class railway</li></ul>Problem with positioning<br /><ul><li>Brand relates to Lifestyle</li></li></ul><li>Suggestions<br />Remove the flights from low frequency routes.<br />Reduce the labor cost.<br />Simplify the flight operations.<br />Increase Revenue-per-passenger.<br />Try to focus on smaller aircrafts(50-70 seaters) and fuel efficient planes for short distance.<br />For a long term strategy, Internationally focus should be done so to cater the International market also.<br />Different modes of pricing should be taken care of.<br />
  42. 42. Kingfisher - 5 Star Airline<br />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.<br />
  43. 43. Awards<br />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.<br />
  44. 44. References<br />Webliography:-<br />i. Kingfisher Airlines official site<br /> ii. Google<br /> iii. Slideshare.net<br />Bibliography<br />i. Phillip Kotler<br />
  45. 45. Thank You<br />The Kingfisher AIRLINES<br />The king of good times<br />

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