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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 airlines 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, Mal 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 RED 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

Being a service industry it has two types of customers: External Customers (Passengers) Internal Customers (Employees) Kingfisher Airlines uses the term Guests for its external customers. Dr Mallya tells his crew to treat every guest In the same way as if they have visited his home. In an airline, 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.

SWOT Analysis of Kingfisher Airlines


1. STRENGTHS
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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. WEAKNESSES
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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. OPPORTUNITIES
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If able to survive for a couple of years, then can have a big market share Untapped International Markets Untapped cargo market Expanding tourism business

4. THREATS
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Falling demand Over capacity in the skies ATF prices Economic slowdown Infrastructure issues

Kingfisher Airlines Marketing HR Financial Strategies


Kingfisher airlines launched its domestic air service operations in May 2005.KFA was promoted by UB group and offered a single class- Kingfisher Class. KFA successfully leverage the youthful and vibrant image of its kingfisher beer brand and called its airlines as Funliners to emphasize the fun-filled experience. Within the first six months of its launch, KFA managed to corner a 6% market share in the domestic air travel mark. KFA started its operation in May 7, 2005, positioning itself as a budget carrier and not as Low Cost Carrier (LCC). Following strategies were followed to make it one of the leading Airlines in India.
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It came up with a very appealing promotional line Fly the good times and it reflected in the experience the company offered to its passengers. KFA is also launched Kingfisher express in order to tap into the growing LCC segment. It planned to re-launch its commercial air service called UB Airway again which it had to withdraw it due to government restrictions. The company gave best services to its customers that were like providing world class interiors, and in-flight entertainment systems. The company came up with only one class airlines rather than other airlines that had Business Class; Economy Class the idea was to combine Business Class experiences and Economy Class experiences in one.

Having a single class freed up more leg space for passengers when compared to normal economy class flights.
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The company started addressing its customers as GUEST rather than passengers. The company made its mark by providing its guests with more legroom and bigger seats so as to provide better comfort.

KFA has set its sight to become Indias largest airline both is capacity and in market share. KFAs Promotional Strategies As part of its promotional strategy the marketing team of KFA showcased the airline as the new flying experience. The following initiatives were taken as part of its promotional strategy
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Advertisements hoardings at airports depicted the stylish interiors of the Funliners, which conveyed youthfull, fun-filled, and world class image. INOX multiplexes in Mumbai publicized KFAs special offers for a month. KFA was the official travel airlines for the cast and crew of Mangal Pandey- the movie. KFA made use of various fashion shows, celebrity golf matches, New Year parties all to build its Kingfisher brand. The UB groups monthly magazine called Pegasus published information about KFA along with other information related to UB group.

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KFA launched many attractive offers to promote its sales like the King Card in association with ICICI Bank, in August 2005. This was ment to creat loyal customers for KFA by providing benefits like privileged access to lounges, restaurants, free refreshments at airports, access to 180 golf clubs across India, special invites for lifestyle shows . In October, KFA launched Chill Times Offer in the month of August 2005 and September 2005. In October they launched the King Saver Offer which said Fly like a King, dont play like one. KFA targeted the frequent fliers business traveler segment, which was dominated by Jet Airways. By offering a King Saver Booklet, This booklet contained six free flight tickets and was presented as a free gift if the passenger bought two such booklets each worth Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege Member (Gold or Platinum) card.

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:
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It purchased brand new A320 aircrafts powered by the cockpit that was a paperless environment. In June 2005 KFA planned to order US$5 bn at the Paris Air Show, for 5 new A350-800 aircraft, and five A330-200 aircraft. KFA was first Indian carrier to place an order for A380s. In November 2005 it placed an order for 30 A 320 and 20 ATR72-500 aircraft at the Dubai Air Show. This ATR72-500 was worth US$750.

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To further its expansion plan KFA put in its bid to buy Sahara in November 2005.How ever negotiation came to a standstill when KFA felt the valuation of Sahara Airlines of around US$750mn to US$1 bn. was too high. 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. KFA set up Kingfisher International Inc. (KII), a subsidiary in US for its international operations. KFA plans to operate international routs by end of 2007. But KFA had yet to receive permission from the Indian government. According to Indian government domestic air carriers are not allowed to fly international routes without five year of domestic flying experience. But Mr. Mallya said if he failed to convince the government to change its rules, it would start an airline in a foreign country and fly it to India.

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

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