Kingfisher Airlines - Product & Services understanding.

2. Introduction
• Owned by “Dr. Vijay Mallya” of
United Beverages Group.
• Started its operations on May 9,
2005, a flight from Mumbai to Delhi.
• Kingfisher was the largest carrier in
the shrinking domestic Indian market
• December 2009, Kingfisher Airlines
had the second largest share in
India's domestic air travel market.
• Passenger growth increased 61.1%
year-on-year in Mar-2009

3. Vision
“The Kingfisher Airlines family will consistently deliver a safe,
value-based and enjoyable travel experience to all our guests.”

4. Values
 Safety
 Services
 Happiness
 Teamwork
 Accountability

5. Rise Of The King
• First airline in India to operate
with all new aircrafts.
• First airline in the country to
order the “Airbus A380”.
• Offers several unique services to
its customers.
• First Indian airline to have in-
flight entertainment (IFE) systems
on every seat even on domestic
flights.
• Alliance was formed with Dish TV
to provide live TV in-flight.

7. Achievements
• Kingfisher Red, Kingfisher Airline's
low-cost class on domestic
routes.
• Kingfisher Airlines has received
three global awards at the
Skytrax World Airline Awards
2010
• Brand Leadership Award.
• India's only 5 Star airline, rated by
Skytrax and 6th airline in the
world

8. Extensive Network Providing the
Widest Domestic Reach
• Before Downfall:

9. Service Marketing Mix
• Product:
– King Mobile: First Indian airline to launch Services on Mobile
• Check Flight updates
• Buy tickets through sms or
• Access a world of service through a simple mobile app anytime anywhere
– Little Wings: 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.

10. Service Marketing Mix
– 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.

11. Service Marketing Mix
• Price:
Quality • 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
Prices people who are ready to pay for luxury.
• Initially Kingfisher airlines did not differentiate
Variety Services 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

12. Pricing Strategy
No. of Bookings Load Factors Date of Travel Festive Seasons
Class of Travel Day of Travel
Pricing
Strategy
Business Class/ Weekdays
Economy Class

13. Differentiated Strategy Offers

14. Service Marketing Mix
• Place:
– It was one of the Largest Domestic Airline with a Fleet of 60+ aircraft
– Connecting 61 cities in India including 8 international destination
– Flight Booking
• Book in Person
• Travel Agents
• Online (CHANNEL SHIFT)
• India’s First ‘FLYBUYSMS’ Service

15. Service Marketing Mix
• Process:
– 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.

16. Service Marketing Mix
• PHYSICAL EVIDENCE:

17. Service Marketing Mix
• PHYSICAL EVIDENCE:
Comfort
Physical
Evidence
Interior
Billing System
Designing

18. Service Marketing Mix
• PHYSICAL EVIDENCE:
– At Kingfisher Airlines, the aircraft by itself, the seating configuration which is
meant to be comfortable and spacious and the in flight 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.

19. Service Marketing Mix
• People
– 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.

20. Service Marketing Mix
• Promotion:
– 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.
• The artful uses of the color and print led to
convey a youthful, fun-filled and world class
image..

21. Service Marketing Mix
• Promotion:
– 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:-
• 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.

22. Service Marketing Mix
• Promotion:
– 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.

23. Powerful Marketing Efforts Drive the
Kingfisher Brand Strength

24. Significant Marketing Synergies
from Parent Group Branding
• Leveraging Group Marketing Assets

25. Partnerships & Frequent Flyer
Program

26. SWOT Analysis
 Strong brand value and reputation in
 High maintenance cost at ground and
the minds of the consumer.
Weakness
Strength
airline.
 UB group as the parent company.
 High ticket pricing (KF First & Class).
 Quality service and innovation.
 Tough competition from Indian as well
 More than 80 destinations.
as international players.
 Less than 100 people (employees) per
 Heavy Debt.
aircraft.
 If able to survive for a couple of years,  Rising Fuel Costs.
Opportunities
then can have a big market share.  Rising Labour Costs.
 Other low cost airlines providing
 Expanding tourism business. Threat better services.
 Reputation of providing the best
Quality & Services in Indian skies.  Government initiatives in railways
 Growth in air travel, with businesses with fast running trains like Duronto.
and markets doing better.  Economic slowdown.

27. Porters Five Force Model
Threat from • Virgin Atlantic,
New • Qantas Airways
Entrants
• Economic &
• Jet Airways Demographic
• Indian Airlines Changes
• Go airways • Higher
Disposable
• HPCL/ BPCL – Bargaining Bargaining Income
Fuel
Threat from
Power of Power of • Increasing no of
Competition
• Airport Authority Suppliers Customers working women
• Increasing
awareness
• Exposure to
global brands
Threat from • Other modes of
Substitutions Transportation

28. Fall Of The King
‘King se Kangaal’

29. Start of the crisis
• Ever since the airline commenced
operations in 2005, it has been
reporting losses.
• In 2008, more losses due to
economic downturn.
• After acquiring Air Deccan, Kingfisher
suffered a loss of over 1,000 crore for
three consecutive years.
• By early 2012, the airline
accumulated losses of over Rs 7,000
crore

30. Contd….
• By Feb 2012, Kingfisher has been
declared NPA by following banks
– SBI
– Bank of Baroda
– PNB
– IDBI
– Central bank
– BOI
– Corporation Bank
• Loss> US$1.50 billion

33. The 6 Reasons of downfall:
 No Network Planning- “A me too approach” kingfisher tried to copy the
network of arch rivals “Jet Airways”.
Shifting its international operations base from Bangalore where it was the
sole Indian carrier offering wide body services to Mumbai – the home
base of both Jet Airways and Air India.
 Economic downturn
 Sky rocketing of Aircraft Fuel Price.
 Inability to hike fare due to competition
 He had diversified his business in various field but he has not coined any
CEO.
 He was unable to read the mind of Indian customer(KFA was not for
common man).

34. Total Dues
Delayed salary
Fuel Dues
Staff strength of 6,000
60% of its employees Aircraft lease rental dues
and that by 31st Jan 12 Hindustan Petroleum
Corporation Limited Erosion of net
(HPCL) stopped the fuel Returned the A320 worth
for 2 hours aircraft to GECAS due to
Bharat Petroleum non payment of dues. In Sep 2011, the
Corporation in 2009 had In Jul 2010, DVB Chairman & Managing
filed a case for dues Aviation Finance Asia Director of Kingfisher
over Rs245 crore Ltd (a lessor from Airlines said “The
Singapore), sued Company has incurred
Kingfisher Airlines for substantial losses and
lease rental default its net worth has been
eroded”

35. Identification of Problem
 MANAGING THE TRANSITION: KEEPING ALL STAKEHOLDERS ENGAGED
 Cut-throat fares, high fuel prices, and high taxes..
 Air India was responsible for the cut-throat fares that started the price
competition which forced all the airlines to lower prices.
 The domestic airlines are projected to report a combined loss of $2.5 billion
(1,250 crore) by end of this fiscal (2011-12).
 Strike Problem.
 Cancellation of flights.
 Lack of Management.
 Dissatisfaction of Loyal costumer.
 Increasing Loss Day by Day (Rs. 470 Crore 2011)

36. Suggestions
• Remove the flights form low frequency routes
• Try to bring down the cost per flight if an airport service more number of
flights
• Improve revenue per passenger
• Avoid aggressive expansion of fleets
• Avoid full course meal, give snacks
• Try to focus on smaller aircraft (50-70 seaters) and fuel efficient planes for
short distance
• For a long term strategy, internationally focus should remain on one
region at a time

37. Suggestions
• Meet the expectations of its customers so that they continued to
patronize its products and services and also encourage others to do the
same.
• Keep it worthwhile for the suppliers of the necessary Resources to
continue to do business with the organization.
• Meet the aspiration of its employees so that they were motivated to
contribute to the organization and also help attract and retain the
necessary talent for future growth. And
• Comply with expectation of the society/community both in terms of legal
compliance as well as a good corporate citizen.

38.  Dimple Salian: 36
 Jaswinder Singh: 3
 Kemrad Lakdawala: 17
 Rahul Shinde: 44
 Rajesh Pisat: 31
 Tushar Pingulkar: 30