1. Value
proposition for
Kingfisher
Airlines..

2. INTRODUCTION TO THE CASESTUDY
 The Indian aviation industry is one of the fastest
growing industry in the world.
 Private airlines account for 80% of the sector of
domestic aviation market.
 Indian aviation sector is poised to become one of the
top five civil aviation markets in the world over next
five years.
 India ranks ninth in the global civil aviation market.

3. ABOUT THE TREND
 The aviation industry is growing at an annual growth
rate of 18%.
 The average load factor for all domestic airlines stood
75% for the period starting from Jan 2010 to Aug 2010.
 The combined market share of independent LCC’s is
over 35% while full service carriers now deploy almost 70-
80% of their domestic capacity under LCC brands such as
JET KONNECT and KINGFISHER RED.

4. BACKGROUND OF KINGFISHER AIRLINES
 Kingfisher Airlines commenced operations as on 9th
May 2005.
 Kingfisher offers over 350 flights daily, connecting 68
key Indian and International destinations.
 KINGFISHER AL IS ONE OF THE SIX AIRLINES IN THE
WORLD TO HAVE A FIVE STAR RATING FROM SKYTRAX
AND THE ONLY AIRLINE IN INDIA THAT HAS IT.
 Kingfisher Airlines operates three classes of service i.e.
FIRST, CLASS AND RED.
 First and class flights- Kingfisher Airlines offers world
class in flight entertainment, extra wide seats, spacious
leg room and large overhead storage space,international
class cabin crew, well appointed interiors on board and
lemonade and three course gourmet cuisine.

5.  RED- Kingfisher airlines is first airlines to provide in-
flight entertainment in domestic flights. Bottled drinking
water and cineblitz magazine.
Kingfisher RED has redefined low fare flying in India . On
board kingfisher red guests get complimentary hot and
filling food. Guests can earn miles (KING CLUB-
LOYALTY PROGRAMME) as they fly and these miles can
be redeemed for free tickets.
 Kingfisher airlines have an extensive on ground
experience program for communicating five star
experience and they also provide valet service. .

6. THREE CHEERS FOR KINGFISHER
AIRLINES.. HIP HIP HURRAY!!!!!
ST
 21 NOV 2005
Kingfisher Airlines orders 30 new Airbus A320 family jets worth
US$1.9 Billion. ( DURING THE START OF AIRLINES)
 MAY 2009
Kingfisher airlines acquired 1st highest market share within few
years of its commencement.
 19TH DEC 2007
Kingfisher airlines merged with Air Deccan and launched a LOW
COST CARRIER as KINGFISHER RED which provided meals and
bottled drinking water to all its passengers, the only LCC doing
that.
 Kingfisher airlines became the passenger favorite airline as it
became known for its EXPERIENCE FLYING.
Success story of Kingfisher airlines….. Read for
yourself.. …

7. I'd like to be adopted please. (DECEMBER 2008)
I had a choice of airline from London to Bangalore - BA or Kingfisher - flight
times were better on BA, but the thought of a few more inches of legroom with
Kingfisher were just calling me loudly. So Kingfisher it was.
Flight booked. So, I was very happy. Hurray. No more fighting for a seat, an
overpriced drink, and then joining a queue to sit in (admittedly 34 inches) of seat
pitch (comfort) cattle class for 10 hours.
It was an amazing experience. From the greeting as you get on the plane , the
acres and acres of space, three windows in my "suite", that's right I had three
windows! An amazing toiletry pack, with a wooden handbag sized
hairbrush, smellies from Salvatore Ferragamo, a sleep
suit, slippers, papers, magazines, hot towels, man alive where am I going to put
all this stuff? Then Vijay, or do you want me to start calling you Pops
already?, appears on the screen - the 17inch screen and tells me that he's
personally selected all the crew on board, and he's told them to treat me as if I
were a guest in his home. Dr Mallya, after the Kingfisher First experience, I'm not
sure just visiting is going to be enough for me. As my subject says, I think I'd like
to be adopted.

8. With the onboard camera, that appears to be attached to the underside of the
plane, so I could watch the runway from the bottom of the plane as we
taxied, then watch London as we took off, and then southern England we flew
over, then Europe. Clearly I'm easily pleased.
But seriously, what wowed me the most? - there's no one thing, but there were
plenty of them - it started with the offer of champagne.
-Dom Perignon no less, and yes I would like to drink my champagne in the bar -
and yes I sat on the funky cream leather sofa watching Europe scoot past as I
lived the high life and ordered my dinner. After retiring to my suite, dinner was
served. Oh boy a fabulous vegetable thali - served on a beaten silver platter.
(wow, amazing food and superb presentation).
My fully flat bed was obviously prepared for me - and then the stars came out.
Literally, the ceiling goes a midnight blue colour and stars appear, so I'm not
only in heaven, I can see it as well.
Waking to breakfast and coffee served from silver jugs , there was just enough
time to move my chair into every position possible, test out the massage
options on it, it was amazing and then we were in Bangalore. And of course I
love being first off the plane, and seeing my bag the second one out Kingfisher -
you did me proud, it was an amazing experience, I fear you've spoiled me for

9. life.
I'm sorry I ever doubted you - for me it was great, your support staff were
fabulous, explained everything in great detail, your emails were timely,
informative. And of course, the last word must go to Dr Mallya. Sir, you have
done a grand job. And should you ever feel the need to adopt me, then my
mother would understand.
Ms. Sarah Carter.

10. BUT THE BILLIONAIRE
MR MALLYA WASN’T THAT
LUCKY…
A MAN CARRYING
LARGER THAN LIFE IMAGE
TASTED LIFE IN REAL
SENSE..!!!!!!

11. NOTHING IS PERMANENT, IF HANDLED
Sometimes destiny hits you hard
UNREALISTICALLY!!!!
on the head and the going gets
“Will soon
Vijay mallya said, tough.
 Vijay Mallya’s philosophy of larger
stop the operations than life image has left him in
of Kingfisher Red as blunder.
he did not believe in A total debt of around Rs 5500
crore has forced him to send
low cost operations KINGFISHER RED to a death
any longer.” sentence. ?????..

12. TUMBLING MARKET SHARE
2007- Mid 2011 Current
1) KINGFISHER 1) JET AIRWAYS
AIRLINES 2) AIR INDIA
2) JET AIRWAYS 3) INDIGO
3) AIR INDIA 4) SPICE JET
4) INDIGO 5) KINGFISHER
5) SPICE JET AIRLINES
6) GO AIR 6) GO AIR

13. CONTINUOUS LOSSES TOOK A TOLL ON
QUALITY OF THE AIRLINE.
Some of the customer reviews:
1) Hong Kong to Delhi. Check-in staff were rude and ignorant,
we were left at the service desks for almost 30 mins
unattended. The in-flight entertainment did not work for the
middle of the cabin. The toilets were not kept clean. We were
travelling with a 10 month infant and there was no bassinet or
seatbelt provided. Seats were uncomfortable and 5 out of the
6 seats we booked had some type of fault in it (cup holder
broken, remote broken etc).
2) First Class from Delhi to London. At Delhi airport the lounge
was a building site with drilling, hammering and intolerable
noise. Staff were wiping dust from bottles. We asked to use a
different lounge, the staff ran around for about half an hour,
to no avail, whilst we waited at the entrance. Onboard the

14. advertised champagne had not been loaded, "catering issues",
food was canteen style, the cabin was shabby with bare patches
on the upholstery and dirty. The entertainment system on 2 of the
seats did not work so I moved 3 times. Not 1st class in any shape
or form.
All in all we made a bad choice flying this airline.
4) Kingfisher airlines just hype.
5) Flying kingfisher domestically was a single star experience
and not five star as advertised.
6) Not the king of good times.

15. THE PROBLEM TURNS OUT TO BE
WORST. .. …!!!!
HINDUSTAN TIMES,
2012 February 23rd
Kingfisher airlines continues to cancel flights for the fifth
consecutive day. 30 bank accounts freezed by service tax
dept, 40 pilots resign kingfisher airlines.
The staff salary outstanding from past 3 months.
I don't think it's an option to just give up and
exit and close down. I don't think it will happen.
I don't think the government wants it either,"
Mr Mallya said, in his first public reaction to the
latest crisis that has gripped his cash-strapped
airline.

16. ACTUAL SOLUTION
VISION: The KFA family will continually deliver a safe, value
based and enjoyable travel experience to all its guests.
MISSION: To make kingfisher airlines the best in the world.
SWOT ANALYSIS OF KINGFISHER AIRLINES
S- Only LCC providing meals onboard.
W- 1) High debt.
2) Diluting reputation and fear of closure.
O- Middle class segment opting for flights.
T- 1) Hiking fuel price.
2) Competition.
3) Bullet train to be introduced.
4) Taxation policy of government.

17. POSITIONING
1)Five star experience of flying
SEGMENTATION
1) For FIRST AND CLASS- Combination of
demographic and psychographic
2) For RED – Cost conscious passengers
TARGET CLASS
1) For FIRST AND CLASS – Affluent class people
2) For RED- Middle Class people

18. CURRENT VALUE PROPOSITION OF
KINGFISHER AIRLINES
1) Various in-flight entertainment options, KA is the
only airlines providing in-flight entertainment in
domestic flights.
2) Designer aircrafts giving extra legroom
3) Pampering the passengers with quality service and
extra helpful staff and cabin crew.
4) The LCC cost lower than the economy section cost of
other competitor airlines.

19. 5) On ground valet service for baggage handling and
assistance.
6) Various entertainment options on airport itself.
7) Loyal passengers, FLYERS CLUB, whose points can
be redeemed for free air tickets.

20. SUGGESTED VALUE PROPOSITION
FOR KINGFISHER AIRLINES
BACKGROUND:
Currently as Kingfisher airlines is passing through heavy
financial crisis which has resultantly taken a toll on its
quality and which has indirectly resulted in less
passengers opting for it, this is the best time for Jet
airways as it has hit back and acquired the maximum
market share which it had lost to Kingfisher airlines due
to traditional ways of providing service.
TO REGAIN ITS FORMER POSITION KINGFISHER
AIRLINES CAN TAKE FOLLOWING STEPS:

21. 1) Repositioning: The current Kingfisher airlines
positioning strategy is FIVE STAR EXPERIENCE OF
FLYING. This strategy is not working anymore as due
to Kingfisher’s quality decline the customers believe
that the strategy is just a hype. Kingfisher airlines
should reposition while keeping in mind, customer
believe what they experience.
2) Hard core advertising: Kingfisher airlines should
advertise hard through mass media and showcase an
attitude of “ THIS TIME WITH THE ORIGINAL
KINGFISHER QUALITY AND STYLE…” Advertise
in multiplexes, National and international
magazines . The advertisement should be made in
such a way that will touch the emotional chords of

22. the lost passengers. This will definitely help in regaining lost
passengers and market share. ( The same strategy that was
adopted by Cadbury when its pune unit was closed due to
positive report on insect found in chocolate.)
3) Provide snacks instead of meal in domestic airlines.
4) Provide bottled drinking water instead of lemonade
in FIRST and CLASS sections of Kingfisher airlines.
5) Provide compulsory valet service to senior citizens,
passenger with patients or patients(itself) and handicaps
only. Withdraw valet service to young and middle aged
passengers and if any passenger wants it, charge for it.
6) Provide FAMILY OFFERS on fares during the vacation times
that is during Diwali , Christmas and new year. This will attract
more and more passengers with family and will increase the
load factor of the airlines during vacation time.

23. 7) Provide Comic books and General knowledge books to kids.
Provide kingfisher scholarship via lucky draw to kids of the
families travelling through KA
8) Provide recipe and beauty tips books to female passengers in
LCC.
9) Provide a detailed map of the country where the plane is
heading.
10) Celebrate passenger birthday, anniversary on board by
presenting them a surprise gift.
11) Withdraw providing CINEBLITZ magazine in domestic flights
of less than 1 hr, instead provide newspapers.

24. THE VALUE PROPOSITION SUGGESTED FOCUSES ON CUTTING COSTS
ALONG WITH KEEPING THE PREMIUM IMAGE OF THE AIRLINES INTACT.
FOLLOWING THE SUGGESTED VALUE PROPOSITION MAY
HELP THE KFA AIRLINES IN ACQUIRING THEIR FORMER
FIRST POSITION.

25. THANK YOU!!!
Mahwish Khatib