M*****

Ndangariro portia marindire

Marketing 303

Executive Summary

Past
Kulula was born in July 2001 by established operator Comair, who took the
opportunity to service this lucrative and untapped market.
Kulua.com is the pioneer in the South African ‘no-frills’ low cost airline
domestic market.
Kulula.com was established with intention of being the different and affordable
for South Africans

Today (present)
Kulula.com flies to 13 destinations 7 within South Africa and 6 regionally in
southern Africa and more than just flying and more products to come, creating
lifelong relationships with our clientele through tailor-made offerings.
Reducing our carbon footprint by being responsible corporate citizens.

Tomorrow (future)
Our future is conquering the continental air space, reaching all the 53
countries of Africa .increasing our destinations were currently operate at home
in south africa and southern africa.
We aim improve our safety standards, give passengers honest quality
products and adhere to IATA and ACSA standards, to give fliers an even
better experience in accessing our booking services on line with improving
technology.
We keep increasing our partnerships with suppliers of related services
Contents
EXECUTIVE SUMMARY ..................... ERROR! BOOKMARK NOT DEFINED.
1. SITUATIONAL ANALYSIS....................................................................... 1
1.1 POLITICAL SITUATION
1.2 LEGAL SITUATION ....................................................................................... 1
1.2 ECONOMIC SITUATION ............................................................................. 2
1.3 TECHNOLOGICAL SITUATION .................................................................... 3
1.4 TRENDS ................................................................................................ 3
1.5 SOCIAL / CULTURAL SITUATION ................................................................ 3
1.6 ECOLOGICAL SITUATION .......................................................................... 4
1.7 INDUSTRY / MARKET ANALYSIS ................................................................. 4
1.8 THE MARKETING MIX ............................................................................... 6

2. SWOT ANALYSIS .................................................................................. 13

3. STRATEGIC CHALLENGES (CRITICAL SUCCESS FACTORS) ......... 16
4. ASSUMPTIONS ..................................................................................... 17
5. MARKETING OBJECTIVES .................................................................. 17
6. TARGET MARKET, POSITIONING PLATFORM AND UNIQUE
SELLING PROPOSITION ...................................................................... 17
6.1 TARGET MARKET STRATEGY ................................................................................ 9
6.2 POSITIONING PLATFORM .................................................................................... 20
6.3 UNIQUE SELLING PROPOSITION (USP) .............................................................. 20
6.4 GROWTH STRATEGIES ........................................................................................ 20
7. STRATEGIES ......................................................................................... 21
7.1 PRODUCT STRATEGY (INCLUDING BRANDING) ............................................... 20
7.2 PRICING STRATEGY ............................................................................................. 20
7.3 PLACE / DISTRIBUTION STRATEGY .................................................................... 20
7.4 PROMOTIONAL STRATEGY .................................................................................. 20
8. ACTION PLAN ....................................................................................... 23
9. BUDGETS, CONTROLS AND REVIEWS .............................................. 25
9.1 EXPECTED REVENUE & MARKET SHARE .......................................................... 25
9.2 HIGH LEVEL BUDGET ............................................................................................ 25
9.2 MARKETING EFFECTIVE RATING REVIEW .......................................................... 26
9.3 QUARTERLY SALES AUDIT ................................................................................... 26
9.4 BRAND IMAGE AUDIT ............................................................................................. 26
9.5 COMPETITOR INTELLIGENCE TRACKING ........................................................... 26
REFERENCES .............................................................................................. 27
1. SITUATIONAL ANALYSIS

Organisation and product offering

Kulula.com is a ‘no frills domestic airline company which offers differentiated

and innovative products to the flying South Africans.
We seek to give affordable services the local and international traveller and
making sure we are at the click of their fingers

Our values

• Your safety and security on board & off board are of utmost importance.
We will not compromise, feel at home.

• Digital innovation is in our DNA, our interactions with you should be

easy and up to date. Our services are close to you: in your phone, i-
Pad, laptop and even your supermarket.

• We believe in long candlelit baths, sharing showers, massage, filling the

world with perfume and in the right to make mistakes, lose everything
and start again.
• We stick to ‘no-frills’, you only pay for seat. We strive to make our
product more leaner
• We want you to have fun with us ,loosen up, chuckle, lighten up your
destination
B) MACRO ENVIRONMENT

1.1 Political
• There rising calls for the current president of the republic to step down,
this has been characterised by public protests around the country, which
do turn violent in some instances this may scare international tourists
who want to visit south Africa.

• The recent cabinet reshuffles has seen South Africa receiving the
backlash of economic downgrading to junk status by economic rating
agencies Standards & Poor and Moody’s, this may lead to lack of
confidence in the economy
• Calls for affirmative action from opposition parties like the EFF, within
parliament does little to reassure investors like Comair/ kulula.com on
their local businesses as there is foreign investment

1.2 Economic Situation

• If the Rand remains Volatile of imported spare parts and accessories for
the airline industry may become more expensive as the Rand continues
to devalue against the United States Dollar this may lead to rising ticket
prices in the projected period
• As at December 2016 inflation was around 6.1% year on year and the
consumer price index (CPI) rose by 8.1 % this may convert to reduced
spending growth by domestic customers who fly with us .eroded
consumer spending on luxury goods such as flying can be expected as
they focus on fulfilling basic needs,but our plan is to focus on other
lucrative growth markets like the ‘Black Diamonds’
• The black middle class (Black Diamonds’) is expanding and increasing
the demand for air travel, however this market is more thrift with their
money looking to save their last cent and they want value for their
money. Kulula.com will definitely make inroads to further tap into this
growth market.
• Balance of payments at national level remain positive according to the
South African Reserve Bank
[http://wwwrs.resbank.co.za/webindicators/econfindataforsa.aspx]

1.3 Trends
• rise in the disposable income of the middle class has given rise to the
domestic airline ticket sales
• new competition ;Skywise set to enter market
• regional airlines Fastjet might consider entering south African
domestic airline industry
• consumers are searching for value of their money, hence proliferation
of Low Cost Carriers
• changing lifestyles; fast life ,less time so the need to utilize air
transport for speed and short trip time
• new entrants might increase benefits for consumers but they will
reduce profitable further in the industry though seat uptake may
increase due reduced fares
• price wars between LCCs .ticket prices may continue to decrease as
flight companies fight for market share

1.4 Social situation

• The rising role of women ,there are more women taking up full
time careers ,becoming entrepreneurs and business women .As
such the family has more spending power through increased
disposable income, thereby increase demand for luxury services
such as holidays and flying as a mode of travel.
• The rise of the black middle class or Black Diamonds or Laptop
fliers has seen increased utilisation of air travel the segment want
to travel light has increased affordability of flying and Kulula.com
is able to meet rising need by providing ‘no-frills’ flying.
• Crime which prevalent in South Africa dampens prospects for
international tourism which provides tourists who use Kulula.com
for domestic flying.

1.5 Technological Situation

• The rise of social media portals such as Facebook, Twitter,
Instagram have given Kulua.com the opportunity to interact
 directly with its current customers and prospective clients and get
immediate feedback.
The disadvantage is that social quite democratic and cannot be
easily censored as the feedback is instant and is there for all to
see, cases of bad publicity need to be responded quickly, to
protect the image of the brand.
• Kulula.com will continue to utilise the online booking services
for ;distribution Kulula.com booking links are provided on the
social pages of travel agents
• Establish partnerships with retailers like supermarkets and
department stores to offer booking on their point of sale (POS).
• Access to technology improvements in the aerospace industry
will be used to reduce costs improve efficiency and profitability.
Such as needs modern re-tooling and diagnostics in aircraft
maintenance
Purchase aircraft of fleet which is more efficient and cost effective
With less nitro-oxide emissions.

1.5 Legal situation

• Advertising Standard Authority keeps a tight leash on the morality,

honesty and genuineness of advertising, unsubstantiated claims may
lead to penalties and litigation.
• The application and interpretation of the Consumer Protection Act (CPA)
CPA) sections protecting consumers’ right to safety, responsible
marketing clear communication from suppliers of service, our legal
department is always on point to advise us to stay within check of these
matters
• The prospect of government further Affirmative Action may make our
foreign investors unsure of the protection of their capital in Kulula.com.
we envisage that the government may not be making any adjustments
in near future.
• Strikes and or job action in the airline industry
: [http://www.timeslive.co.za/local/2017/04/26/Four-flights-
cancelled%E2%80%9A-more-delayed-as-cabin-strike-hits-SAA]
This may affect operation of kulula.com as south Africa has a worker
friendly Labour Act which gives workers freedom to job action with no
penalties in most instances.

1.7 Ecological
• Kulula.com plans to implement policies to reduce their carbon footprint
by sourcing environmentally friendly inputs and service methods
we are already doing this by responsible disposing of the waste that we
produce in our operations

(A) INDUSTRY / MARKET ANALYSIS

1.6 COMPETITOR ANALYSIS FOR KULULA.COM

IDENTIFY COMPETITORS
Organization offering same or similar services now
• Flysafair
• Mango airlines
• Fastjet
Organizations offering alternative services now
• British airways (full flight carrier)
• South African airways
• South African express airways
• SA air link
• Trains and luxury buss services

Organizations that can offer same or similar services

• Emirates airlines
• Fly Africa.com
• Fast jet
• High speed trains
 Organizations that could remove need for the service
• High speed trains –Gau train spreading nationwide in the case
• Luxury bus services – Greyhound ,Intercape ,City To City, Translux
• Full flight carriers- British airways, south African airways , SA
express , SA Airlink
The competition is moderate for the transport industry rivalry
IDENTIFICATION OF STRATEGIC GROUPS
Organization with similar strategies - aggressive low price
strategy
• Kulula.com
• Mango airways

Organizations with similar characteristics – private owned

airlines
• British airways
• SA Airlink
• Flysafair

Organizations with similar kills

• Mango airways,flysafair has an extensive on the marketing campaigns
as well as fly Africa

ANALYSIS OF KULULA.COM AIRLINES

Objectives of kulula.com
• Safety and professional
• Totally honest
• Inspiration for employees develop skills ,give them opportunities
• Easiest and Affordable flying for south African public
• To make flying fun and safe as possible
Strategies
• Funky Marketing Communications strategy
 • Loyalty scheme with Avios, fliers earn points when they use services
from Kulula.com and even retail shopping to earn discounts on their
ticket bookings

• Building effective,stable partnerships for example with car Rental

Company Europcar hire and Tempest car hire.
• Low pricing strategy
• Safe and easier booking ,introduced price freeze whereby a customer
can hold their booking for 24 hours without payment
• Insurance partnership with vitality for car hire, car rewards loyalty
scheme

Response to competition
• Target profitability than reaction to pricing trends-target 80-85%
passenger loading for sustainability
• Avoid over booking but rather increase flights
• brand awareness rather following low cost leader

Resources
• kulula.com is an operating trade name for Comair -a franchisee of
British Airways , so they can tap into the technical and financial
resources of British Airways
• kulula.com had a turnover of about R5.8 billion and profits of
R301million rands in the 2015 financial year
• They have a medium aircraft number of 10 planes as of 2013
comprising of 9 Boeing 737-800 and 1 Boeing 737-200
[https://en.wikipedia.org/wiki/Kulula.com]
 Analysis of profile Mango Airlines
Objectives of mango
• mango started operations in 2006 ,its objective was to expand in
the South African airline industry (www.simplifying.com/2011/now
mango has succeeded in custom engagement with Nico
Bezuidenhout)
• Operational efficiency – on time arrivals
• Guest service – provision of Wi-Fi on board at 3000 feet
• Innovation
Strategies
• Mango manages it operations thru following schedules - low cost
aggressive low cost pricing
• A marketing campaign that cuts across social media, print and
point of sale advertising
Response to competition
• Mango’s response is that they haven’t decided to become low cost
leaders , but have responded by offering added experience on
board e.g. Wi-Fi and changing of flights at no cost.
Resources
• Mango is wholly owned by south African Airways a public entity
owned by the government of south Africa
• It had a turnovers of about 1,9 billion rands in 2014 and net loss of
16,1 million rands for the same year
• Their load factor averages 82,4%
• They have a low aircraft number of 8 planes
• Mango CEO Nico Bezuidenhout has more than 10 years’
experience in the airline industry, he has worked for organizations
such as ; Ticket Web as CEO , Head direct sales South Africa
airways and recently as acting CEO of SAA

ANALYSIS OF FLYSAFAIR
Objectives of Flysair
 • to offer a differentiated product through
-short flights at a low costs compare to rivals
• Target first time fliers who were unable to fly in the past due to
expensive tickets
• To offer affordable and accessible airline travel in South Africa
• To be the best on time domestic airline
• To maintain Flysair’s excellent and efficient reputation

Strategies
• unbundling of services so consumer can bear the cost of the seat only
• focusing on market development as a growth strategy, flysafair has
managed to increase total weekly flight to 64 as of June 2015
Response to competition
• offering lowest price tickets compared to all its competitors
• low cost leadership

Resources
• the parent company of flysafair,Safair has been in operation for more than
50 years
Thereby giving skills and technical backup to Flysafair
• Aircraft compliment of 7 planes as of October 2015( 4 X Boeing 737–
400, 3x Boeing 737–800 )

Customer analysis
Who are our current and potential customers
Working class adults between 20 and 49 of age
Middle income class white
Emerging black diamonds/ black business man
Light travel local and international tourist

What do our customers do with our product

Heavy user are the working class and thrift business persons
Holiday makers
General purpose travellers
Where do they purchase out product
Travel agents

Alliance with retailers like supermarkets and department stores for

ticket sales and bookings

Direct Online bookings or airlines websites

The rise of smartphones and increased connectivity has made it easier

for people to shop on line

hence airline companies have to advantage of that segment of

consumers

comparative online travel/booking agencies such as TravelStart

,CheapoAir ,and Trip Advisor give consumers a wide variety of choice
such as price ,dates ,class seat

booking links are provided on the social pages of airlines like

availability etcetera; from different airlines Facebook

When do they purchase the product

Business persons travelling for meetings and expos
High uptake during promotions
Use of comparisons from travel agents
Peak periods during public holidays records high sales

Why do customers select Kulula.com’s products

History of ‘on-time’ arrivals
No frills ticket cost makes kulula.com attractive to customer
Quality service from staff and quality services
Why do potential customers not purchase Kulula.com’s products
Over booking leads to dissatisfaction
Luxury travellers are repelled by lack of business and first classts on
flights
(B) INTERNAL ANALYSIS

1.7 marketing mix

product

Physical
promotion
evidence

price Processes
Where ever you
go we’ll take you
there

Physical
people place
Evidence

Figure 2

• Products
Flights to various destinations in south Africa and in southern Africa
region
Cabin service
Catering service on board
Car hire in partnership with Europcar hire and Tempest car hire
Holiday packages
Ramp services
Insurance service packages with discovery vitality

• Price
Low cost pricing for all our flights
Discounts from Avios and Discovery Vitality
Commissions from British airways bookings for international
flights,hotel bookings
 Fees for extras such luggage ,leg room and special requests

• Place / Distribution
Internal online booking on company website/ portal 24 hours around
the clock
Travel Agents and tour operators
Booking offices at all commercial airports
Retail and department store point of sale (POS)
• Promotion
✓ Use of Billboards for advertising
✓ CSI and sponsorship investments pport charities such the children
hospital trust,the Red cross,smile foundation,casualday for persons
with handicap
✓ Online advertising on Kulula.com’s website.
✓ Quirky and fun advertising on traditional media such television
✓ Operating an active YouTube channel and uploading advert videos
and news
✓ Frontline staff
✓ Word of mouth through our loyalty programmes with Avios,Discovery
Vitality

• Processes
Catering services are provided by dedicated staff
Kulula relies on online bookings processing of bookings
• People
Kulula.com has staff who are
Reliable
Caring
Ability to solve problems
Very competent.

• Physical Evidence
 The green colour is evident of our passion for life and growth and daring
to be different

2. SWOT ANALYSIS KULULA.COM

Potential threats
Entry of foreign competitors
Fastjet might and emirates consider entering the South African low cost
carrier domestic market. These foreign competitors have abundant financial
resources that are fastjet parent company is listed in the UK stock exchange.
the economy has moved towards recession
emirates has financial muscle and has the ability to take a big bite of the
market share if decides to service domestic routes.
Kulula has enjoyed 1st mover advantage but its market share may decrease
on the se threats
Increased regulation
The consumer protection act (CPA) was amended to include '
reasonableness for over booking or over selling .the act doesn’t allow the
airline to accept payment for services with you have no intention of supplying
them, or maybe supplying a different one, so it does affect the LCCS when
they are liable for refunds on fully booked flights and any other incorrect
costs.
Economic conditions
Global recession,
The falling Rand exchange rate
Junk status ratings
Technology
Kulula.com needs modern re-tooling and diagnostics in aircraft maintenance
Kulula.com needs up to date aircraft that is more efficient and cost effective

POTENTIAL OPPORTUNITIES
Kulula.com make a bid to acquiredof Mango airlines, meaning another
increase in market share, from 22 % to plus or minus 42% of the
market https://centreforaviation.com/insights/analysis/competition-
 intensifies-in-[south-africa-as-flysafair-breaks-comair-south-african-
airways-duopoly203660 as the government wants offload mango and
merge with the SAA and SA express.
The deregulation of the airline industry were economist are imploring
government to cut bailout to parastatal SAA and its subsidiaries, this
may bring freedom to invest in the full cost carrier industry in future

Mishap of rival firm

kulula may offer to offer to buy skywise, not equity if their bid is successful
this will give Kulula.com an opportunity to spread and grow its business

Alliances sought by other firms

If Kulula.com decides to take government ’s suggested offer to sell equity of
Mango

Technology
Better ,bigger aircraft for example Airbus A320neo family which offer
better aerodynamics, weight savings, a new aircraft cabin with bigger
hand luggage spaces, and an improved air conditioning.
less fuel consumption per aircraft resulting in lower operating costs,
and increased reduction of nitrogen oxide emissions
Opening of the skies- global expansion offering low cost international
flights
Strategic alliances both locally and internationally (One World)

WEAKNESESES
Narrow fleet
small fleet of air craft ACSA reports are that f Kulula.com has 9 air
crafts,( wikipedia.org/wiki/ Kulula.com) .
 Poor service in terms of time consciousness from Kulula.com can send
more customers to a better service offered by competing LCCs
Narrow product line
Kulula.com services mainly luxury and urban metropolitan routes
which give opportunity to their competitors
Narrow profit margins
Leads to poor product proposition that contradicts its self hence it has
to compete for high market share
High prices of fuel make it impossible for break-even financially.
Due to the weakening of the rand Kulula.com and the other LCCs
might increase flight prices.
Marketing problems
Quirk tone and light-hearted advertisements may confuse the
market ,to take it for lack of professionalism
strengths
Abundant financial resources – from the holding company Comair.
It is a market leader through low cost leadership; it currently has the
lowest priced tickets.
Kulula.com on the best Africanlow cost airline , (best airport lounge in
2016 at the Business Travellers Awards
Sacsi award for top south African low cost airline in 2015 for the
second consecutive year
the best time of loading and offloading baggage at ASCA main ports.
this shows the airlines time factor is efficient allowing for good
positioning. they were meeting the time turnaround of 15 minutes
better that the set 25 minutes.
Early flights for those who want to be on time for meetings.
superior management skills CEO Erik Venter has +12 years’
experience in the aviation industry and finance experience as a
qualified chartered accountant. He joined Kulula as a financial
manager and rose to become the current CEO
 good distribution channels are available through online booking,
through your mobile phon and leading travel agents. direct tickets can
be bought from all commercial airports

3. key issues identified (critical success factors)

Route network
the golden triangle remains viable this the Johannesburg- Cape Town-
Durban routes ,where there is local and tourist growth in seat uptake
Strong distribution network
Airlines now offer direct booking facilities at airports and airlines
charge extra fees of between R100 to R150
Alliances with online booking agents like TravelStart, Flightstart ,and
etcetera increase ease of access to consumers
Alliance with retail and department stores for POS (point of sale)
bookings
Reliability
Airlines compete to be on time and the Airport Company of South
Africa(ACSA) manages airlines to perform well in this area, it gives
awards to the best performers .Kulula has won various awards
consecutively from the Airports Company South Africa (ACSA
Niche product
LCCs continue to be lucrative currently only two airlines operating as
low cost carriers they better seat uptake ,but stringent government
requirements and high capital requirements for startup make entrance
into industry difficult

Cost efficiency
Airlines have to be cost efficient thru charging for value addition

Marketing excellence
Use of online marketing through social media like Facebook, twitter
and company websites
4. ASSUMPTIONS

• Kulula will increas market share as we spread our wings across Africa
between 2017 and 2020.
• Up take of seats will increase coupled with purchases of new fleet
• demand of no-frills air travel will increase between 2017 and 2020.
• bookings and purchase of Kulula.com products will increase between
2017 and 2020.
• The economic environment for the next 3 years will remain favourable
for the airline industry especially LCCs ,due to increased disposable
income envisaged.

5. MARKETING OBJECTIVES

• To increase the distribution channels 10% per annum from 2017 to

2020.
• To reduce our carbon foot print by a further 5% by 2020
• To cater for new segment such as students by introducing college
booking rates during beginning of intakes by universities and colleges
by December 2018
• To cut or reduce non performing destinations by 2020

6. TARGET MARKET, POSITIONING PLATFORM AND UNIQUE

SELLING PROPOSITION

6.1 Target Market Strategy

Segmentation

• Demographic Segmentation
✓ market to be split into female and male gender segments
✓ Customers groups to be according to occupations and level of
education levels for example students ,business people, executives
students, etecetera.
 ✓ Customers to be grouped according to age groups 0 years to 12; 13
to 18; 19 to 25; 26 to 35; 36 to 47 ;48 and above
✓ Customers be segmented according to income: low income earners
18 to 25 years; middle income earners 25 to 35 years and high
income earners 36 years to 47 and above pensioners .

• Geographic Segmentation
• Customer to be segmented according to the areas they live in the
provinces of South Africa.
• Customer to be segmented according to the areas they live in the
countries of Africa.
• Segmentation to be further done by segmenting by characteristics
such as educational attainment, ethnicity or race, predominant age,
occupational achievements.

• Psychographic Segmentation
Psychographic segmentation will be done to enable segmentation
customers by interests, motivations, lifestyles and opinions as
follows:
-value seekers who want save at all costs
-Holiday makers travelling to tourist destinations like
Capetown,Durban,victoria falls ,zanzibar
-lower to middle class
Lifestyles -frequent fliers,family versus business
•
• Behavioural Segmentation
✓ Benefit sought – this group is seeking benefits such as efficiency on
departure times,on time arrivals, quality flying,safety
✓ Usage rate –Kulula.com will categorise its customer into:
➢ Heavy fliers who fly at least twice a week on round trios
➢ Medium fliers who fly 2 to 3 times a month
➢ Light fliers –those who fly on holidays or seasonally
6.2 Targeting
Leisure- price sensitivity charge for seat only, punctuality and reliability
Business-efficiency and more options bigger leg room,seat allocations

6.3 Positioning platform

Positioning of a product is the favourable place that the product
or offering occupies mind of customers in comparison to
competitors’ products. Kulula.com customers will seek superior
service, efficiency, easy booking and complementary services
such as catering and luggage services.

6.4 Unique Selling Proposition (USP)

• Competitive Strategy
Kulula.com will adopt differentiation strategy will be adopted so as to meet the
needs of its different customers by offering custom made made
products..Kulula should maintain the no-frills/low cost strategy and maintain
their market leadership status.

• differential advantage of kulula

✓ customised products from local business alliances familiar with the public
✓ bargaining power over suppliers services like car hire as there many car
hire and insurance companies .
✓ ability to use of innovative below and above the line advertising..
 Growth Strategies
The Ansoff Matrix

Existing Products New

Market Penetration Product Development

awareness on customers on the
Existing service benefits of using Value addition to existing products
Kulula.com high usage social for example hotel bookings can
media platforms to promote come with free breakfast
services ,create Establish business class flying for
Customer value improvement – executives
increase customer satisfaction by Reduce carbon emissions by using
reducing costs further . increase environmentally friendly jet fuels
purchase or usage and
introducing loyalty programmes for
Markets

repeated use through frequent

flying

Market Development Diversification

Diversification into normal cost
Target new customers in new airline
regional geographical areas of South Diversification into unrelated
Africa so as to reach more segments business like financial services
new distribution channels for example Upstream integration suppliers) for
New –department stores, retail stores and example acquiring Avis car rental
increase the use of travel agents Downstream integration (with
intermediaries) travel agents

Table 2
STRATEGIES
7.1 Product Strategy (including branding)
Product Life Cycle Diagram
A product strategy is the foundation of a product life-cycle and the execution
plan for further development. product strategy allows the business to focus on
specific target audiences and draw focus on the services offered and
consumer
attributes.

Major considerations for products include destination, peak or off peak

bookings
• Continue to source suppliers of high quality furnishings like seats and
linen
• The pricing , will differ for different segments. For business class –
premium price, flier class will remain at current low cost pricing.
• It is essential to ensure variety to customers.
• Kulula.com will continue to innovatively improve its services and quality
so as to reach its goals by 2020. We continue utilise the Kulula brand
power of– the flying public purchase on the strength of brand at times with
no regard for price or performance.
7.2 Pricing Strategy
• Differentiation by brand – the name kulula means easy
• Increased brand visibility by matching its brand name and the domain
name
• Kulula is associated with affordable no frills pricing
• Discounts will be offered to agents and distributors .
• Online branding for social media which matches the brand name
• lowering of ticket prices constantly
-Change in price model for businesss class

7.3 Place / Distribution Strategy

car hire ,hotel and tour packages agreements with suppliers such as
mariott hotels.
Selective distribution to enable coverage in all provinces of South
Africa and rest of Africa
Agents and distributors will be based in all provinces and countries
Aggressive recruitment of retailers as booking points will to ensure that
service reachable customers at the nearest vicinity.
Kulula.com’s distribution strategy will be reviewed annually until 2020.
7.4
Promotional Strategy
Advertising
Advertising will continue to quirky,comical and using above the line
advertising channels like television and print media.
Business class website launched
Public Relations
Creation of Interaction channels customers such as customer care hotlines
and queries desks at airports with booking offices.
Internet
Active online presence through social media pages will be increased for
awareness of the brand and information dissemination to customers..
Sales promotion
Sales promotions will be carried out for the new business class offer in
alliance with our partners Avios and Discovery Vitality as way of increasing
sales.
Process
95 % on time arrival rate,improved punctuality,reduce luggage loss
People
 online queries desk,social media complaints responded to as soon as
possible

-Introduce business class social media pages

Physical evidence

-to service 80% of all African countries (were there is less threats of
war or safety guaranteed)
-Opening more airports in tourist destinations around Africa

7. ACTION PLAN

By
Strategy Who? Does What?
When?
• People and talent ✓ Recruiting On going
People management ✓ Training and talent exercise
strategy department development
• Marketing ✓ compensating
department employees
• Finance ✓ Performance review
management and feedback
✓ Continuity/succession
planning
Physical • Marketing and sales ✓ Effectiveness of On-going
Evidence department visible cues corporate
Strategy • Operations –flying ✓ Building effective branding
services distributors
 • Marketing ✓ Efficiency of services
Process of department ✓ Consistency of On going
services • Customer Care and service
public relations ✓ On time service
• Buying /purchasing delivery
department
• Safety standards
department
• Marketing ✓ Advertising On-going
Promotion • Public Relations ✓ Sponsorships
Strategy department ✓ Public relations
• Finance department ✓ Sales promotions
✓ Setting promotional
budgets and control
• Marketing ✓ Identify alliances On-going
Distribution • Operations-flying ✓ distribution channels
Strategy service to be identified
• Logistics ✓ Establish logistical
management and technical
• Finance managers requirements

• Workshop artisans
• Marketing and sales ✓ Pricing of the On-going
Product department services in line with
Strategy • Flying services product strategy
manager ✓ New product
• Safety and development
standards opportunities
department ✓ Ensure safety and
standars
• Marketing Research ✓ Sizing segment to be On-going
Target team determined
market ✓ Predict consumer
strategy expectations
 ✓ Scan the external
environment

• Marketing ✓ Set services pricing On-going

Pricing • Finance managers ✓ Pricing strategy will
Strategy be aligned in relation
to internal and
external
environments

Table 3
8. BUDGETS, CONTROLS AND REVIEWS
9.1 Expected revenue / market share

Expected Revenue
5 rand billions Market Share
2020
Expected 2019
Revenue
0 rand billions 2018
2017 2018 2019 2020 2017

High level promotional budget

Figure 5

Budgets % Allocation
Operational Expenses
Rental 10%
Salaries and Wages 20%
Administrative Ovrheads 8%
Figure 4
Maintainance and retooling 15%
Promotional Expenses
Sales Promotion 25%
Advertising 12
Public relations 5%
 Sponsorship 5%
Table 4

9.3 Marketing effective rating review

Marketing effectiveness rating reviews to be done after all promotional
activities.
9.4 Quarterly sales audits
Sales audits will be conducted on a quarterly basis.
9.5 Brand image audit
Brand image audit plan is indicated in the figure , below:

Figure 6

9.6 Competitor intelligence tracking

Will be conducted on a continuous basis:
REFERENCES
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