marketing project

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marketing project

  1. 1. ContentsAVIATION INDUSTRY ........................................................................................... 31.1 Introduction ...................................................................................................... 31.2 Porter‟s Five Forces ....................................................................................... 41.3 Pestel Analysis .............................................................................................. 51.4 Market Share ................................................................................................. 7KINGFISHER AIRLINES ......................................................................................... 82.1 Strategic Alliance with Deccan ..................................................................... 82.2 SWOT Analysis ............................................................................................. 9MARKETING MIX .................................................................................................10RECOMMENDATION FOR FUTURE STRATEGIES.........................................19
  2. 2. 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. 3. MARKETING PROJECTIBS HYDERABADAnujGuptaJigneshPatel GauryIndurkarDivyaSalujaShilpiSarkar
  4. 4. 1.3 Pestel AnalysisPOLITICAL FACTORS Open Sky Policy India‟s Political environment-Tension with Pakistan, Government‟s inability tocontrol issues(Riots etc.) September 11-huge drop in air traffic due to safety and security concerns Trade relations with other countries have to be goodECONOMIC FACTORS High operations cost due to huge demand which resulted in laying off employees atthe time of recession. There has been huge contribution to the Indian Economy Rising cost of fuel There has been huge investment in the aviation sectorSOCIAL 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
  5. 5. TECHNOLOGICAL FACTORS Use of internet-online ticket booking,updated flight information and handling ofcustomers Restrucutring the existing airports to world class appeal. The growth of e-commerce and e-ticketing6 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 onweather Shortage of the infrastructural capacity Tourism SaturationLEGAL FACTORS FDI limits Airlines Acquisitions and the leasing cost.
  6. 6. 1.4 Market ShareSource: http://dgca.nic.in/reports/mar-ind.htm(Directorate General of Civil Aviation)8KINGFISHER AIRLINESKINGFISHER AIRLINES was introduced by Mr.VijayMalliya on 7th may 2005 , it was asubsidiary of united breweries holding limited. It was introduced in year 2005. That year itselfkingfisher created hype in the market .it was a late entrant in aviation sector but it managed toestablish a pinnacle position in its near future. Scanning through the performance of kingfisher, itattained a significant position in Indian market. Mr.VijayMalliya, the strategist, left no stonesunturned 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 FORNEW AIRLINES” by Skytrax. created brand equity for the organization over a period of 5 yearsi.e. it enhanced perceived benefits to the organization due to the brand name and goodwill itcommanded in the market..Substitute services existed for airlines industry in the form of various other transport systemslike transportation through roadways, railways and sea transport but it did not create anysignificant threat for aviation sector because of its unique characteristics like speed flexibilityand time efficiency.
  7. 7. This P explain what range of products or services is been offered by the firm. As the firm growsancillary services and products also start growing sometimes related diversification is alsoobserved 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 deliveringvalue to the passengers by creating a lavish and luxurious experience.Also it provided secondary services likeKing Mobile:11Kingfisher Airlines became the first Indian Airline to launch a range of services on the mobileplatform. Now one can check for flight updates, buy tickets through SMS or access a world ofservices through a simple mobile application - anytime anywhereLittle 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 takesoff, 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.
  8. 8. Kingfisher Elite:In today‟s competitive business environment, the pressure on productivity, cost and efficiencyare greater than ever before. Kingfisher Elite offers exclusive travel solutions. One can Fly atone‟s own convenience anywhere, anytime and choose who flies along with them in the utmostcomfort, safety and privacy. Be it business or leisure, one can select from the range of businessjets 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 majorcities.
  9. 9. A firm must set a price for the first time when it develops a new product. The firm searches for aset of prices that maximizes profit on the total mix. Market share to determine prices tocustomers and channel patterns. Prices across models and geographic regions have to bedetermined.PricesQualityVariety Serives
  10. 10. 12 The price segments that Kingfisher targets is the higher income group as well as theupper 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 forluxury. Initially Kingfisher airlines did not differentiate between business class and economyclass. But eventually they decreased the prices of business class and called those seatsas premium seats. Fares were very average. They targeted middle class as well as premium class people. A „Low-Cost‟ option hasbeen given by the introduction of Kingfisher Red services to compete with other „Nofrills‟airlines. The Kingfisher Red serves complementary meals on board, thereby increasing theperception of „More Value for Money‟ for the passengersClass oftravelLoadfactors
  11. 11. Services offered 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 Persono Travel Agentso Onlineo India‟s first „flybuysms‟ Service
  12. 12.  The process of kingfisher airlines services lays emphasis on the involvement ofchannels, front line staff, travel agency offices, offices of tour operators, or so fromwhere the services flow and reach to the ultimate users. The process begins at the time of reservation and goes on up to the confirmation ofseats. By giving details of where to book and how to book kingfisher airlines help inproviding quality services to its customers.. They also offer concession by not charging any cancellation charges and also givingthem options to make a change in the reservation status if they required. Facilities at the airport, the baggage handling, flight information, also helped indelivering quality service and making travel a pleasure. Kingfisher Airline is making every effort to constantly redefine service procedures toenhance service satisfaction levels. In aircraft the meal service, in flight entertainment, reading materials, etc enables thecustomers to have an enjoyable and convenience.
  13. 13.  At Kingfisher Airlines, the aircraft by itself, the seating configuration which is meantto be comfortable and spacious and the in flight food food provided, constitute thephysical 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 reclininglumber support, leg rest extension, expanded seat back and thus providing highlycomfortable seating. Booking offices and ticket counters are extremely spacious and well designed withgood looks. Domestic lounges are enhanced with good interiors and basic amenities which makeit an ideal place to conduct business, entertain and relax
  14. 14. At Kingfisher Airlines, people are the most important. People provide most services that isselection, training and motivation of the employees.The airhostess at kingfisher come in contact with the customers in the process of providing theservice, while the cock-pit crew are the employees who contribute to the service product butthere is no direct contact with the customers.The frontline staff plays an important role in order to make sure that the service has beendelivered to the customers in an apt and an efficient manner. Kingfisher Airline‟s cabin andground crew is the hallmark of their services. The quality of staff service is impeccable and theairline is able to sustain these high quality levels as they experience continued and rapidexpansion people that is the staff deliver high standards of service efficiency, and in a sincereand charming manner that makes it stand out from the rest of the airlines. The airline alsoprovides the crew to undergo rigorous training programs.The airlines has also instituted the Kingfisher Training Academy to cater to the growing demandfor trained service oriented professionals.As
  15. 15. 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 ofcompetitive advantage with respect to other low cost airlines.KFA was the official travel airlinefor the cast and crew of „MangalPandey‟ and gave a warm welcome to all the guests whoattended the premiere of the film.In addition to that KFA as a low cost airline also followed some other promotional strategieswhich are listed below:-18 Organized the guest speakers at the seminars and present their ideas on the areas oftheir 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. Toenlist 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 andsocial issues. KFA made use of various fashion shows, celebrity golf matches, New Year parties allto build its “Kingfisher” brand.West Airlines to penetrate market. Seek additional distribution channels such as more tie ups andcollaboration.
  16. 16.  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” inassociation with ICICI Bank, in August 2005. This was meant to create loyalcustomers for KFA by providing benefits like privileged access to lounges,restaurants, free refreshments at airports, access to 180 golf clubs across India, specialinvites for lifest.Thus by implementing all this measures kingfisher succeeded to have a loyal customer base.19RECOMMENDATION FOR FUTURE STRATEGIES Can tie up with Corporate and Government Companies byProviding Unique Travel Solutions for Professional andPersonal Use. Can implement programs implemented by South

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