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ASSIGNMENT OF

PRODUCT AND
BRAND MANAGEMENT

Submitted to
submitted by
Mr.Krishan gopal
dinesh kumar

RT1901B50

MBA(A)
KIGFISHER AIRLINES
INTODUCTION

Kingfisher Airlines is an airline group based in India. Its registered office is


the UB Tower in Bangalore and its head office is Kingfisher House
in, Mumbai. Kingfisher Airlines, through its parent company United Breweries
Group, has a 50% stake in low-cost carrier Kingfisher Red.

Kingfisher Airlines is one of six airlines in the world to have a 5-star rating
from Skytrax, along with Asiana Airlines, Cathay Pacific, Malaysia
Airlines, Qatar Airways and Singapore Airlines. Kingfisher operates more than
375 daily flights to 71 destinations, with regional and long-haul international
services. In May 2009, Kingfisher Airlines carried more than a million
passengers, giving it the highest market share among airlines in India.

Kingfisher Airlines was established in 2003. It is owned by


the Bangalore based United Breweries Group. The airline started commercial
operations in 9 May 2005 with a fleet of four new Airbus A320-
200s operating a flight from Mumbai to Delhi. It started its international
operations on 3 September 2008 by connecting Bangalore with London. It
rose to fame in June 2005 when it became the first and only Indian airline
share and number of passengers carried. Kingfisher airlines is own by Vijay
Maliya.
It is a brand name, which is India's only Five Star Airline. This airline
operator is one of the biggest airlines catering to all major parts of India. It
was not long when United Beverages group, the largest beverage company
of the world, decided to launch its own airlines company named after its
Brewery Brand ‘Kingfisher'. Today, Kingfisher Airlines connects 61 cities in
India, 8 international destinations and has over 390 daily departures with a
fleet of 66 aircraft. The high quality services and special amenities make it a
big name in the aviation industry.

Kingfisher Airlines is one of six airlines in the world to have a five-star rating
from Skytrax (A United Kingdom-based consultancy that conducts research
for commercial airlines). Embark upon any of the flights of Kingfisher Airlines
to feel like an honored guest. Here you are more than just a passenger.
Kingfisher believes that ‘a flight is not a journey between two airports but an
experience of a lifetime'. Esteemed guests of this honored flight operator can
experience it in three unique classes of service-like the Kingfisher First
(Business class), Kingfisher Class (Premium economy) and Kingfisher Red
(Low fare). Kingfisher First and Kingfisher Class are available on the
international routes also.
With Kingfisher, guests can anticipate to indulge in first-of-its-kind luxury
straight from the airport to on-board comforts, gourmet cuisine and in-flight
entertainment. The specially trained international cabin crew and a collection
of on-board comforts add to the already good set of services.

When the flight of Kingfisher takes off into the international skies, you get
the chance to view world-class experience. Every Kingfisher aircraft meets
the global standards that I have set in terms of safety and performance. Our
brand-new fleet incorporates the latest technology and each aircraft is fitted
with a personalized in-flight entertainment system and top quality
programming content from around the world for your viewing and listening
pleasure, and to create an environment that you will truly cherish.
The airline recently launched its flights from New Delhi to Kathmandu; New
Delhi to Dubai and Mumbai to Dubai. With the launch of these new flights,
the total number of international destinations that Kingfisher Airlines flies to
from New Delhi goes up to five. The other three international destinations
that Kingfisher Airlines flies to out of New Delhi are London, Bangkok and
Hong Kong.

The company efficiently functions under Dr. Vijay Mallya. The positive growth
and good performance of Kingfisher Airlines attributes to 10% percent stake
in share market that it has acquired since inception. The aircrafts of
Kingfisher airline include the first Indian order for Airbus A380s. Most of the
flights offered by Kingfisher Airlines have multi Channel video services, the
movies are shown to the flyers on-demand. Now, Kingfisher stands as a chief
player in the luxury airline segment. It offers world-class modern services on
board which has set standards throughout India

Competition level

Product form-kingfisher face competition with many airlines


companies .product form includes competition with those competitors who
operates in same product or service which a company operating .air India ,jet
airways, air Deccan, spice jet,shara airline. Air India is market leader
.kingfisher has to consider strategies of these competitors .because they all
operating in same field . the prices decided by these effect each other. These
competitors includes in product form competition level.

Product category – product category is broad term than product


form it consider all product or service which has effect on kingfisher airlines
like railway road transportation and water transportation and roadways
transport .the price decided by railway is effect kingfisher price policy also
.so product category also include railways as competitor.

Generic-it is much broader than product form and category . it refer


where consumer prefer to spend their income .kingfisher has to announce
many promotion scheme to attract the customer so that they prefer it
service .consumer can use number of way to commute .can also save their
money .kingfisher lures consumer by offering new discount schemes
Budget –it refer with income budget of consumer .kingfisher fix price
keeping in mind income level of people .it has difference policy for difference
income level group .like better service and food facilities for rich class
consumer and it also has low price seats for middle income group for
example it announced 99 rs ticket policy before three month to attract
middle income group person .

The strategy which kingfisher should


follow
 Co-branding/Strategic partnerships with like-minded brands is an
aggressive strategy of Kingfisher to promote its guest loyalty
programmed.

 The company should spend huge money on various media and below-
the line marketing activities every year.

 The company has also launched Kingfisher First, which is a print


campaign to promote its first class service.

 The company should also plan a series of online promos to boost traffic
in certain sectors such as Mumbai-Kolkata. They are running online
contests to boost traffic on these sectors and are also looking at
partnering with premium hotels.

 KINGFISHER Airlines should announced special fares for all personnel


serving in the Indian Armed Forces, the Union Government, State
governments, and employees of all public sector units in the country.
 The immediate families of these personnel - parents, spouses and
dependent children should also eligible for these reduced and special

 Airlines compete primarily on three fortes - low fares, customer


service and value-added services. While no-frillers fight the price war,
service is the main thing provided by their larger peers.the much
emphasis should be on these three points.

 The critical factor will be the ability to keep costs low & the offer of
an on time service at an affordable price, despite the infrastructure
constraints, for survival. Providing quick facilities to passengers will
also help kingfisher to attract them.

 The next issue to tackle is to properly position itself in the aviation.


market..kingfisher should try to capture the market by providing best
service.

 The Indian customers are not that much mature as compared to their
American contemporaries. They will not pay more for just mere
entertainment or watching TV in a flight of one / one & half hour
journey. so kingfisher has to understand Indian customer preference.

 A certain amount of churn & turmoil for players who don't have the
deep pockets (as happened in USA many smaller airlines with out deep
pockets fell by the wayside unable to sustain the predatory pricing
techniques adopted by their strong opponents).

 The outdated Aviation rules in India which compels the low cost
carriers to add more to their operating cost, which could have been
easily do away with.

 Taxes like passenger service fee looks ridiculous for a ticket worth Rs.
99.

Kingfisher should consider such point while making


strategy

Brand image -The Airlines industry is cyclical in nature due to uncertainties


which are beyond its control. Due to this the brandshave to be built in such a
manner that they survive the lean periods on their strength of being able to
differentiate themselves with others. This must be done by being clear as to
what one’s brand represents and sticking to its core values and not by raging
a price war all the time.
Through the study we have found out that the Low cost Airlines have
positioned themselves in competition to railways by making travel
affordable. They are compared to railways and road transports on the pricing
front. But the reality is that it's not possible for them to compete with
railways on price front. Rather they should try to highlight features such as
lesser travel time and better in-flight facilities.

discount-Price discounts need to be carefully done to attract customers and


simultaneously ensure that it does not affect the brand image or result in
considerable reduction in revenue.

Advertisement-In-flight advertising is an effective promotion medium as


the audience is hundred percent captive. They can help airlines promote the
brand image, promote new schemes, improve the brand recall and generate
extra revenue if done without the passengers perceiving it as a forceful.

Cost of travel- Pricing is the most sensitive issue in airline industry and is
done depending on the demand of the market. Switching is more frequent in
case of low fare airlines whereas business segments are more brands loyal.

Service quality -From the market research we could infer that while
deciding among low cost airlines fare acts as the deciding factor while in
case of choosing among full service providers the determine factors are
flight schedule, reliability, quality and connections with not much emphasis
on fare.

SOME FUTURE STRATEGIES FOR KINGFISHER


TO
AIRLINES
Market Penetration Strategy
• Encouraging existing Customer to buy more Showing benefits for
using more
• Try to look for foreign entrant's weakness (Virgin Atlantic is lacking
in Indian values & tastes).

Product Development
• Seek additional distribution channels .More tie ups & collaboration:
Try seeking collaboration with international carriers, Bilateral
discussions over seats and code-sharing between the carriers).
• New product development.

Market Development Strategy


• Try to find out new customer group (Old-retired persons).
• Special offering for first time fliers.

Diversification
• May go for other services like international flights etc.
• May go for arrangement fashion shows (horizontal diversification).
• May go for other things, which can lure the customer.

Factor influencing Service sector

Product
It includes the core product along with the additional benefits, ‘Supplements’ (value
added services) that bundle up together with the product

Sales activity
By sales activity we mean the message that the company sends out through its
advertising and promotion campaigns. Sales activity also includes the way in which
the company monitors its sales intermediaries and the attitude that it projects
towards its customers.

After Sales Service


After sales service forms a very important part in customer satisfaction towards
the company. The company has to be very efficient in complaint handling, should
seek a time-to-time feedback on its services from its customers and act
promptly if there are any flaws. The company should also inform the customer
about new offers and schemes as and when they come into existence.

Culture
Culture forms a significant part of customer satisfaction. If the
customer can relate to a particular culture projected by the company, then his level
of satisfaction would be far higher than if the company projects a hostile
environmentto the customer’s perception. Basically company culture comprises of
all intrinsic values and beliefs as well as tangible and intangible symbols that it uses
to instill these values into employee behavior at all times.

Some Strategies Adopted by


Kingfisher Airlines
• Kingfisher Airlines will be emphasizing on spunky, well-done
interiors and trained airhostesses.

• Borrowing from the Kingfisher beer tagline of "The King of Good


Times" the theme of "Fly the Good Times" is given to KFA.

• Kingfisher is planning to capture the Indian budget airline market with


the twin engines of 'special flying experience' and 'value for money'.
(Contests like `Kingfisher flying face of the month' are on cards).

• The Kingfisher airhostesses will be selected through a nationwide


contest.

• The Kingfisher "Fun liners" will have in-flight silent auctions for
Lifestyle products and sales of packaged food and beverages.
• The Kingfisher brand of exuberant, youthful and fast-paced image is
leveraged(the brand recall).

• Brand endorsement. Kingfisher Airline has roped in model Katrina


Kaif to endorse the airline.

• AIR Deccan has signed a non-poaching agreement with Kingfisher


Airlines to ensure that the two airlines do not poach each other's
pilots.

Reference
• www.google.com
• www.scribd.com
• www.wikipidia.com
• Product management book(Tata mc hill)
• Kingfisher airline website

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