Marketing Mix Kingfisher Airlines

1. Product Kingfisher First (International & domestic routes) Kingfisher Class (International & domestic routes) Kingfisher Red ± formerly known as Air Deccan (Domestic routes) Flying Chef 2. Price Kingfisher Airlines being a premium airline adopts a premium pricing strategy Kingfisher Red its low fare arm adopts a low fare pricing The pricing strategy aviation industry is highly dependent on the behaviour of the crude oil prices, dollar rates and competition. Fuel at present accounts for 45 per cent of an airline¶s total operating cost. 3. Place Kingfisher Airlines operates services to 80 destinations domestic as well as international. International operations started on 3 September 2008, with a flight from Bangalore to London. One of the reasons to acquire Air Deccan was to gain entry on to the international circuit, by gaining advantage on Air Deccan`s eligibility to fly international (as per DGCA rules) It also has plans to add several international destinations such as Bangkok, Hong Kong, Karachi, Kuala Lumpur, Lahore, Malé and Singapore in 2009 4. Promotion Kingfisher Airlines as a brand is promoted in many ways When it was launched Yana Gupta was the brand ambassador Hoardings/ Press Release Kingfisher Airlines sponsors Mumbai ATP Open KF First sponsors Mtv Style Awards 06 Kingfisher kicks off Rs 1 billion campaign (On Launch of its international flight to London) Formula 1 team (Force India) IPL team (Royal Challengers) Red Pouch The colour ³RED´ King Club frequent flier programme Vijay Mallya himself is a brand ambassador for all his brands including Kingfisher Airlines 5. Physical Evidence Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. Kingfisher Airlines was the first airline in India to operate with all new aircraft. On June 15 2005 Kingfisher Airlines became the first Indian airline to order the Airbus A380, to be delivered by 2014 Fleet size of 73 and 137 orders placed The planes have the best in-flight facilities that match world class standards 6. Process KFs Tickets through ATMs The Roving Agent Web Check-In FlyBuy SMS Flight Updates Mobile Ticketing 7. People

OPPORTUNITIES y y y y If able to survive for a couple of years. THREATS y y y y y Falling demand Over capacity in the skies ATF prices Economic slowdown Infrastructure issues . Cabin Crew play an important role because they are the ones who deliver the service and therefore they are termed as The Walking Billboards of an organization. WEAKNESSES y y y Still in RED (still to Break Even) (An outstanding of 950crs only to oil marketing cos till may end ) High ticket pricing (KF First & Class) Tough competition from Indian as well as international players 3. SWOT Analysis of Kingfisher Airlines 1. Dr Mallya tells his crew to treat every guest ³In the same way as if they have visited his home.Being a service industry it has two types of customers: External Customers (Passengers) Internal Customers (Employees) Kingfisher Airlines uses the term ³Guests´ for its external customers.´ In an airline. then can have a big market share Untapped International Markets Untapped cargo market Expanding tourism business 4. STRENGTHS y y y y y y Strong brand value and reputation in the minds of the consumer UB group as the parent company First Indian airline to have a new fleet of planes Quality service and innovation More than 80 destinations Less than 100 people (employees) per aircraft 2.

KFA has set its sight to become India¶s largest airline both is capacity and in market share. Within the first six months of its launch. The company made its mark by providing its guests with more legroom and bigger seats so as to provide better comfort.³Kingfisher Class´. fun-filled. KFA started its operation in May 7. and in-flight entertainment systems. positioning itself as a budget carrier and not as Low Cost Carrier (LCC). It planned to re-launch its commercial air service called UB Airway again which it had to withdraw it due to government restrictions. celebrity golf matches. KFA¶s Promotional Strategies As part of its promotional strategy the marketing team of KFA showcased the airline as ³the new flying experience´. KFA was the official travel airlines for the cast and crew of ³Mangal Pandey´. 2005. KFA managed to corner a 6% market share in the domestic air travel mark. Following strategies were followed to make it one of the leading Airlines in India. Economy Class the idea was to combine Business Class experiences and Economy Class experiences in one. y y y y y It came up with a very appealing promotional line ³Fly the good times´ and it reflected in the experience the company offered to its passengers. KFA made use of various fashion shows. and world class image. The UB groups monthly magazine called ³Pegasus´ published information about KFA along with other information related to UB group.KFA was promoted by UB group and offered a single class. The following initiatives were taken as part of its promotional strategy« y y y y y Advertisements hoardings at airports depicted the stylish interiors of the ³Funliners´. The company came up with only one class airlines rather than other airlines that had Business Class. y y The company started addressing its customers as ³GUEST´ rather than passengers.Kingfisher Airlines Marketing HR Financial Strategies Kingfisher airlines launched its domestic air service operations in May 2005. KFA is also launched Kingfisher express in order to tap into the growing LCC segment. New Year parties all to build its ³Kingfisher´ brand.the movie. which conveyed youthfull. The company gave best services to its customers that were like providing world class interiors. . INOX multiplexes in Mumbai publicized KFA¶s special offers for a month. KFA successfully leverage the youthful and vibrant image of its kingfisher beer brand and called its airlines as µFunliners¶ to emphasize the fun-filled experience. Having a single class freed up more leg space for passengers when compared to normal economy class flights.

(KII). Mallya said if he failed to convince the government to change its rules. access to 180 golf clubs across India. KFA was first Indian carrier to place an order for A380s. In October they launched the ³King Saver Offer´ which said ³Fly like a King. KFA plans to operate international routs by end of 2007. This booklet contained six free flight tickets and was presented as a free gift if the passenger bought two such booklets each worth Rs.Passengers could avail off this offer if they showed there Jet Privilege Member (Gold or Platinum) card. 26. By offering a ³King Saver Booklet´. This ATR72-500 was worth US$750.y y y y KFA launched many attractive offers to promote its sales like the ³King Card´ in association with ICICI Bank. special invites for lifestyle shows . it would start an airline in a foreign country and fly it to India. KFA has plans to make an Initial Public Offer (IPO) and raise around US$200 mn that would be used for its fleet acquisition and route expansion activities. which was dominated by Jet Airways. In June 2005 KFA planned to order US$5 bn at the Paris Air Show. In November 2005 it placed an order for 30 A 320 and 20 ATR72-500 aircraft at the Dubai Air Show. In October. y y y To further its expansion plan KFA put in its bid to buy Sahara in November 2005. But KFA had yet to receive permission from the Indian government. .999. don¶t play like one´. free refreshments at airports. in August 2005. But Mr. was too high. restaurants. According to Indian government domestic air carriers are not allowed to fly international routes without five year of domestic flying experience. This was ment to creat loyal customers for KFA by providing benefits like privileged access to lounges. KFA targeted the frequent fliers business traveler segment.How ever negotiation came to a standstill when KFA felt the valuation of Sahara Airlines of around US$750mn to US$1 bn. KFA launched ³Chill Times Offer´ in the month of August 2005 and September 2005. KFA set up Kingfisher International Inc. Financial strategies: KFA came up with many new financial strategic moves that made it one of the leaders of aviation industry the company had adopted following strategies: y It purchased brand new A320 aircrafts powered by the cockpit that was a paperless environment. a subsidiary in US for its international operations. and five A330-200 aircraft. for 5 new A350-800 aircraft.

KFA also stressed the fact that its employees had to be capable enough to meet the airlines¶ high service standards.Human Resource Strategies Prior to launch. KFA¶s flight attendants called ³Flying models´ were selected through a national level model contest. . to strengthen its management team. This is part of the UB group¶s commitment to human resources´. Mallya said ³Kingfisher Airlines Limited has a first class management team not just at top most level but also in the second line. Mr. Among one of the biggest HR move for KFA was addition of Nigel Harwood as Chief Operating Officer with effect from August 1. KFA signed a ³non-poaching alliance´ with Air Deccan under which both the airlines agreed not to hire each other¶s employee. 2005.

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