This document provides an overview of the aviation industry and Kingfisher Airlines. It includes sections on industry structure, company analysis, competitor analysis, consumer analysis, promotional ventures, SWOT analysis, and the BCG matrix. The introduction outlines the history of aviation from the Wright brothers to deregulation. Kingfisher is positioning itself as a premium brand offering passengers an "experience" over competitors. However, high costs and failing to break even pose weaknesses. Opportunities exist in tourism growth, but threats include rising fuel prices and economic slowdowns.
3. INTRODUCTION
• In 1903, first flight by • The creation of new jobs • Fully private airlines are
Wright brothers and lower fares. subject to a great deal of
• Increased R&D of • More Americans were government regulation
aircraft after World War flying so airplane load for
II: World War II saw a factors were up. economic, political, and
drastic increase in the • There was increased safety concerns
pace of aircraft competition and a wider • entry barriers for new
development and choice for passengers airlines are lower in a
production. deregulated market
• Deregulation in 1978:
• Greater competition
Deregulation– Entry and
exit of routes and the • Pricing freedom
pricing of fares were • new entrants often take
deregulated. market share with highly
reduced rates
Regulatory
History Benefits
considerations
4. AVIATION INDUSTRY
TRENDS OPPORTUNITIES THREATS
9th Largest Aviation International air travel
to grow by 6.6% a year 44% hike in fuel costs
Market
Projected growth of 12-
Domestic aviation 14% in 2011-12 Rising in operating
market tripled in the
expenses
past five years
Airbus and ATR provides
advantage
Domestic market share New Aviation policy to
of 20 % in May, 2011 open skies to foreign
First carrier to enter Big- airlines
3 alliances
11% increase in Expansion of product Entry of new airlines
passenger revenue internationally
6. FACTORS INFLUENCING CONSUMER BEHAVIOR
Personal Psychological Cultural Social
• Age • Motivation • Family • Culture
• Occcupation • Perception Influence • Social Class
• Reference
Groups
7. Dr Vijay Mallya
Chairman and CEO of Kingfisher Airlines
Launched under the brand name Kingfisher
Airlines in 2003
Owned by the Bangalore based United
Breweries Group
Dr Vijay Mallya is also the Airlines Brand
Ambassador
8. BRAND FLY KINGFISHER
Currently has a fleet of 66 aircrafts that include airbus
A319,A 320, A 321,A330 and ATR72-500 and ATR 42-
500
Operates more than 375 daily flights to 71
destinations, with regional and long-haul international
services.
Serves 63 domestic destinations and 8
international destinations in 8 countries across Asia and
Europe
Short haul routes- airbus A320
Long haul routes- airbus A330-200
Emphasize on using new & technically fit aircraft which
ensures safe journey without delays or cancellation
9. Promotion Strategies
• Aggressive advertising campaign „Fly the Good Times‟.
• Promoted through many events and advertisements.
• Offered the customers a direct link to the company‟s Chairman
in case of inconvenience
• Hand-picked crew approved after a rigorous training
programme.
• Loyalty and frequent flyer programs are also carried out
• Personalised entertainment system web chat, inseat plugins
for music, liveTV with 16 channels on each seat
• Better quality of service
• 100 percent E ticket airline
10. Kingfisher has signed up the latest diva of
bollywood Ms Deepika Padukone as the brand
ambassador.
11. SEGMENTATION
THE VARIOUS SEGMENT OF AIRLINE USERS:
The other target At last but not the
Firstly ,The major group is of young least ,the elite
users are the students married professionals corporate, business
,low income group (age group 20-35) class people and
who choose the with small kids and VIPs who demand
minimum fare flight with income levels privacy and high
whichever it is. more than Rs 7 lacs level of security and
per annum safety.
12. TARGETING
Focus strategy
• Deviating from the usual
flashy ads which hit with
young (at heart) male fliers
and the 'flying models '
• The ad for the young travelers
talks about special kids
meal, wide seats and games.
The ad ends with an appeal to
the father that " Your little
prince deserves to feel like a
King ".
13. Differentiation Strategy
• Kingfisher first as a
• Cater to the different
business class -
economic segments of
"butlers“ carry
the consumer base .
passengers’ bags on
• Kingfisher class and off the plane.
• Kingfisher red • Kingfisher red and class
• Kingfisher first as an economic airlines
• Kingfisher Elite for “the mango people”.
14. BUSINESS TRAVEL
KINGFISHER ELITE
• One can now travel in an aircraft
reserved exclusively for him and
choose where and when he wish to
travel
• Tailored service to meet your
requirements – ultimate flexibility
• Private and discreet service
including VIP, diplomatic and head-
of-state flights
• Eurocopter EC155 with a VVIP
configuration
• Custom-designed luxurious interiors
15. The “king of good times” theme
Not a journey
THE Vijay Mallya –
India's . Richard Branson
POSITIONING Its an “experience”.
Not just a passenger
An “honored guest”
16. • Facebook as an
advertising medium
• It helps in positioning
kingfisher as people’s
choice .
17. PEST ANALYSIS
POLITICAL FACTORS
• Open sky policy
• FDI limits: 100% for Greenfield airports
• 74% for the existing airports
• 100% through special permission
• 49% for airlines.
ECONOMICAL FACTORS
• Contribution to the Indian economy.
• Rising cost of fuel.
• Investment in the sector of aviation.
• The growth of the middle income group family affects the aviation sector
SOCIAL FACTORS
• Development of cities leads to better services and airports.
• Employment opportunities.
• Safety regulations.
• The status symbol attached to a plane travel.
18. TECHNOLOGICAL FACTORS
• The growth of e-commerce and e-ticketing.
• Satellite based navigation system.
• Modernisation and privatisation of the airports.
• Developing green field airports with private sector for example in
Bangalore the airport corporation limited.
ENVIRONMENTAL FACTORS
• The increase in the global warming.
• The sudden and unexpected behavior of the atmosphere and the
dependency on whether.
• Shortage of the infrastructural capacity
• Tourism saturation .
LEGAL FACTORS
• FDI limits
• Bilateral treaties
• Airlines acquisitions and the leasing cost.
19. Suggestions
• Reduce the labour cost
• Simplify the flight operations
• Offer more transparent pricing
• Get smart on fuel
• The process of acquiring spice jet if complete
would make kingfisher the largest player in the
aviation industry
• Different modes of pricing should be taken care
of.
25. USERS
• Grooming and
NON USERS
Present Ability • Trade off
• Most high-end between extra
domestic expense and
carriers high standards
• Exudes an air
of luxury
• Marvelous
service
26. spunky, well-
done interiors
and trained
airhostesses.
beer tagline of
exuberant, yo "The King of
uthful and Good Times"
fast-paced the theme of
image is "Fly the Good
leveraged Times" is given
Present to KFA.
Strategies
Kingfisher
in-flight silent
flying face of
auctions
the month'
27. celebrities for
Increase endorsements like
advertising Milind Soman /
expense Ranbir Kapoor who
are youth icons
introduce late night
lowering the prices
flights between
of their tickets
metros
Recommendations
29. COMPARISON OF KINGFISHER TO OTHER PLAYERS
•Priced lower than Indian
airlines, yet offer a great flying
experience.
•Interiors and food definitely
better compared to other
airlines.
•Captured a 27.6% market share
last year in comparison to Jet-
25.2% and Air India-17.2%.
•Targeted frequent fliers
•Passengers who enjoy the
luxuries of life and have a bent
towards flamboyancy.
31. SWOT ANALYSIS
Strength Weakness
• Strong brand value and reputation in the • Highly priced for the service offered
minds of customers • Yet to break even
• Unmatched in-flight service • High attrition at top brass
• Route rationalization
• First airline to have a full new fleet of
airbuses
• Exclusive terminal share deal
Opportunities Threats
• Expanding tourism industry • Competitors
• Under penetrated domestic market • Infrastructure issues
• International market • Fuel prices
• Untapped air cargo market • Economic slowdown
32. POSITIONING
• Flying with • Young
TARGETING
• Niche
SEGMENTATION
Marketing: Kingfisher is married
Talks with an experience professionals
Goa Govt.S in itself with small
• Partnering • It is not just kids
with selling tickets • Income more
premium per say but than Rs 7
hotels like also selling lakhs p.a.
Park Hotel. “Experience” • Commute
• Commute between Tier
faster with 1 and Tier 2
entertainment cities
• Hard core
loyals
33. The “king of good times” theme
Not a journey
THE Vijay Mallya –
India's Richard Branson. POSITIONING Its an “experience”.
Not just a passenger.
An “honoured guest”
35. A PREMIER PRODUCT FOR THE INDIAN
FLYER
Strong Kingfisher Brand
• High brand salience & preference in the minds of Indian consumer
Strong Kingfisher
Brand
Diversified Network
MonopolyHighest exclusive stations amongst private carriers
• Destination
Monopoly
Destinations
• Premium business class product, well trained young staff
High Service
Quality
• Well spread on business and leisure routes
Diversified
Network
Airbus and ATR fleet provides unique advantage to capture growth in metro, Tier-2 cities and international marketFirst carrier to enter Big-3 alliances – One World; In addition, Kingfisher and Jet are the only private carriers currently to have approval for international operations
Brand Recall of Kingfisher is high due to customization and the emphasis on quality by the founder Mr. Vijay Mallya.
Young married professionals (age group 20-35) with small kids At Kingfisher Airlines we follow the same and we do not believe that we are into the business of transportation, we are in the Aviation Hospitality Space and believe in offering our guests that ultimate experience 30,000 feet in the skies.The fact that our average loads are over 70 percent at any given time, I think we have touched the consumer pulse. Our guests keep coming back for more of the `Good Times’ onboard Kingfisher Airlines.Talks with Goa Tourism to boost domestic traffic during monsoonSegment:Done promos with Malaysia Tourism to organise a golf tournament for CEOs in Delhi6. Running online contests to boost traffic 7. Looking at partnering with premium hotels like Park Hotel
An, attendents etc aggressive strategy to promote its guest loyalty programme, King Club Kingfisher:"Experience" – Food
Strong Kingfisher BrandHigh brand salience & preference in the minds of Indian consumerDiversified NetworkWell spread on business and leisure routesMonopoly Destinations Highest exclusive stations amongst private carriers High Service Quality LevelsPremium business class product, well trained young staffBalanced & Flexible Aircraft Configuration Well positioned to capitalize on the demand uptickSegmented customer base targeted effectively through three sub brands “Kingfisher First”, “Kingfisher Class” and “Kingfisher Red”Flexibility to deploy same aircrafts across Kingfisher Class and Kingfisher Red based on needOutsourced Ground Handling Protection against policy changeMore than 1 million members; superior features like faster tier upgrade, non-air reward shop, family club program encouraging customer stickiness
