CONTENTS
Industry Structure

Company Analysis

Competitor Analysis

Consumer Analysis

Promotional Ventures

SWOT Analysis

BCG Matrix
INTRODUCTION
• In 1903, first flight by    • The creation of new jobs   • Fully private airlines are
  Wright brothers               and lower fares.             subject to a great deal of
• Increased R&D of            • More Americans were          government regulation
  aircraft after World War      flying so airplane load      for
  II: World War II saw a        factors were up.             economic, political, and
  drastic increase in the     • There was increased          safety concerns
  pace of aircraft              competition and a wider    • entry barriers for new
  development and               choice for passengers        airlines are lower in a
  production.                                                deregulated market
• Deregulation in 1978:
                                                           • Greater competition
  Deregulation– Entry and
  exit of routes and the                                   • Pricing freedom
  pricing of fares were                                    • new entrants often take
  deregulated.                                               market share with highly
                                                             reduced rates
                                                           Regulatory
History                       Benefits
                                                           considerations
AVIATION INDUSTRY

   TRENDS               OPPORTUNITIES                     THREATS

 9th Largest Aviation      International air travel
                          to grow by 6.6% a year       44% hike in fuel costs
        Market

                         Projected growth of 12-
 Domestic aviation           14% in 2011-12             Rising in operating
market tripled in the
                                                             expenses
  past five years
                         Airbus and ATR provides
                                advantage
Domestic market share                                  New Aviation policy to
 of 20 % in May, 2011                                   open skies to foreign
                         First carrier to enter Big-          airlines
                                 3 alliances

  11% increase in          Expansion of product        Entry of new airlines
 passenger revenue            internationally
CONSUMER BEHAVIOR
FACTORS INFLUENCING CONSUMER BEHAVIOR


 Personal        Psychological   Cultural      Social
 • Age           • Motivation    • Family      • Culture
 • Occcupation   • Perception      Influence   • Social Class
                                 • Reference
                                   Groups
Dr Vijay Mallya
                         Chairman and CEO of Kingfisher Airlines




Launched under the brand name Kingfisher
Airlines in 2003
 Owned by the Bangalore based United
Breweries Group
Dr Vijay Mallya is also the Airlines Brand
Ambassador
BRAND FLY KINGFISHER
 Currently has a fleet of 66 aircrafts that include airbus
    A319,A 320, A 321,A330 and ATR72-500 and ATR 42-
    500
 Operates more than 375 daily flights to 71
    destinations, with regional and long-haul international
    services.
Serves 63 domestic destinations and 8
international destinations in 8 countries across Asia and
Europe
Short haul routes- airbus A320
Long haul routes- airbus A330-200
Emphasize on using new & technically fit aircraft which
ensures safe journey without delays or cancellation
Promotion Strategies
• Aggressive advertising campaign „Fly the Good Times‟.
• Promoted through many events and advertisements.
• Offered the customers a direct link to the company‟s Chairman
  in case of inconvenience
• Hand-picked crew approved after a rigorous training
  programme.
• Loyalty and frequent flyer programs are also carried out
• Personalised entertainment system web chat, inseat plugins
   for music, liveTV with 16 channels on each seat
• Better quality of service
• 100 percent E ticket airline
Kingfisher has signed up the latest diva of
bollywood Ms Deepika Padukone as the brand
ambassador.
SEGMENTATION
 THE VARIOUS SEGMENT OF AIRLINE USERS:



                           The other target        At last but not the
  Firstly ,The major      group is of young         least ,the elite
users are the students   married professionals    corporate, business
 ,low income group        (age group 20-35)        class people and
   who choose the         with small kids and     VIPs who demand
minimum fare flight       with income levels       privacy and high
   whichever it is.      more than Rs 7 lacs     level of security and
                              per annum                  safety.
TARGETING

Focus strategy

                 • Deviating from the usual
                   flashy ads which hit with
                   young (at heart) male fliers
                   and the 'flying models '
                 • The ad for the young travelers
                   talks about special kids
                   meal, wide seats and games.
                   The ad ends with an appeal to
                   the father that " Your little
                   prince deserves to feel like a
                   King ".
Differentiation Strategy


                           • Kingfisher first as a
• Cater to the different
                             business class -
  economic segments of
                             "butlers“ carry
  the consumer base .
                             passengers’ bags on
• Kingfisher class           and off the plane.
• Kingfisher red           • Kingfisher red and class
• Kingfisher first           as an economic airlines
• Kingfisher Elite           for “the mango people”.
BUSINESS TRAVEL
  KINGFISHER ELITE

• One can now travel in an aircraft
  reserved exclusively for him and
  choose where and when he wish to
  travel
• Tailored service to meet your
  requirements – ultimate flexibility
• Private and discreet service
  including VIP, diplomatic and head-
  of-state flights
• Eurocopter EC155 with a VVIP
  configuration
• Custom-designed luxurious interiors
The “king of good times” theme

                                                                Not a journey
THE Vijay Mallya –
India's . Richard Branson
                                POSITIONING                  Its an “experience”.

                                 Not just a passenger
                                 An “honored guest”
• Facebook as an
  advertising medium
• It helps in positioning
  kingfisher as people’s
  choice .
PEST ANALYSIS
     POLITICAL FACTORS
•   Open sky policy
•   FDI limits: 100% for Greenfield airports
•   74% for the existing airports
•   100% through special permission
•   49% for airlines.
    ECONOMICAL FACTORS
•   Contribution to the Indian economy.
•   Rising cost of fuel.
•   Investment in the sector of aviation.
•   The growth of the middle income group family affects the aviation sector
    SOCIAL FACTORS
•   Development of cities leads to better services and airports.
•   Employment opportunities.
•   Safety regulations.
•   The status symbol attached to a plane travel.
TECHNOLOGICAL FACTORS
•    The growth of e-commerce and e-ticketing.
•    Satellite based navigation system.
•    Modernisation and privatisation of the airports.
•    Developing green field airports with private sector for example in
    Bangalore the airport corporation limited.
      ENVIRONMENTAL FACTORS
•   The increase in the global warming.
•   The sudden and unexpected behavior of the atmosphere and the
    dependency on whether.
•   Shortage of the infrastructural capacity
•   Tourism saturation .
      LEGAL FACTORS
•    FDI limits
•    Bilateral treaties
•    Airlines acquisitions and the leasing cost.
Suggestions
• Reduce the labour cost
• Simplify the flight operations
• Offer more transparent pricing
• Get smart on fuel
• The process of acquiring spice jet if complete
  would make kingfisher the largest player in the
  aviation industry
• Different modes of pricing should be taken care
  of.
SURVEY
BRAND IMAGE

         Airlines




                    Kingfisher
                    Indian Airlines
                    Jet Airwyas
                    Indigo
Conversion Rate



                  Kingfisher
                  Jet Airways
                  Indian Airlines
                  Indigo
Main Driver



              Price

              Service

              Offers

              Brand Image
Consumer Perception
100%
 90%
 80%
 70%
 60%
 50%
 40%
                             Indigo
 30%
 20%                         Indian Airlines
 10%                         Jet Airways
  0%                         Kingfisher
USERS
        • Grooming and




                            NON USERS
          Present Ability               • Trade off
        • Most high-end                   between extra
          domestic                        expense and
          carriers                        high standards
        • Exudes an air
          of luxury
        • Marvelous
          service
spunky, well-
                             done interiors
                              and trained
                             airhostesses.


                                                         beer tagline of
exuberant, yo                                              "The King of
 uthful and                                               Good Times"
 fast-paced                                               the theme of
   image is                                              "Fly the Good
  leveraged                                              Times" is given
                              Present                        to KFA.

                             Strategies




                                                Kingfisher
          in-flight silent
                                              flying face of
             auctions
                                               the month'
celebrities for
                       Increase          endorsements like
                      advertising         Milind Soman /
                       expense           Ranbir Kapoor who
                                           are youth icons




                                                         introduce late night
lowering the prices
                                                           flights between
  of their tickets
                                                                metros

                               Recommendations
COMPETITON
COMPARISON OF KINGFISHER TO OTHER PLAYERS

•Priced lower than Indian
airlines, yet offer a great flying
experience.
•Interiors and food definitely
better compared to other
airlines.
•Captured a 27.6% market share
last year in comparison to Jet-
25.2% and Air India-17.2%.
•Targeted frequent fliers
•Passengers who enjoy the
luxuries of life and have a bent
towards flamboyancy.
PORTER’S MODEL
SWOT ANALYSIS
Strength                                      Weakness
• Strong brand value and reputation in the    • Highly priced for the service offered
  minds of customers                          • Yet to break even
• Unmatched in-flight service                 • High attrition at top brass
• Route rationalization
• First airline to have a full new fleet of
  airbuses
• Exclusive terminal share deal



Opportunities                                 Threats
•   Expanding tourism industry                •   Competitors
•   Under penetrated domestic market          •   Infrastructure issues
•   International market                      •   Fuel prices
•   Untapped air cargo market                 •   Economic slowdown
POSITIONING
                                             • Flying with                   • Young




                                                                 TARGETING
               • Niche
SEGMENTATION




                 Marketing:                    Kingfisher is                   married
                 Talks with                    an experience                   professionals
                 Goa Govt.S                    in itself                       with small
               • Partnering                  • It is not just                  kids
                 with                          selling tickets               • Income more
                 premium                       per say but                     than Rs 7
                 hotels like                   also selling                    lakhs p.a.
                 Park Hotel.                   “Experience”                  • Commute
                                             • Commute                         between Tier
                                               faster with                     1 and Tier 2
                                               entertainment                   cities
                                                                             • Hard core
                                                                               loyals
The “king of good times” theme

                                                               Not a journey
THE Vijay Mallya –
India's Richard Branson.    POSITIONING                     Its an “experience”.

                                Not just a passenger.
                                An “honoured guest”
4PS OF MARKETING
A PREMIER PRODUCT FOR THE INDIAN
                    FLYER
                    Strong Kingfisher Brand
                     • High brand salience & preference in the minds of Indian consumer
Strong Kingfisher
     Brand
                       Diversified Network


       MonopolyHighest exclusive stations amongst private carriers
             • Destination
   Monopoly
  Destinations




                     • Premium business class product, well trained young staff
  High Service
    Quality




                     • Well spread on business and leisure routes
   Diversified
    Network
POWERFUL PROMOTION THE STRENGTH OF
           KINGFISHER
POP AND POD
Car ppt kingfisher (1)

Car ppt kingfisher (1)

  • 2.
    CONTENTS Industry Structure Company Analysis CompetitorAnalysis Consumer Analysis Promotional Ventures SWOT Analysis BCG Matrix
  • 3.
    INTRODUCTION • In 1903,first flight by • The creation of new jobs • Fully private airlines are Wright brothers and lower fares. subject to a great deal of • Increased R&D of • More Americans were government regulation aircraft after World War flying so airplane load for II: World War II saw a factors were up. economic, political, and drastic increase in the • There was increased safety concerns pace of aircraft competition and a wider • entry barriers for new development and choice for passengers airlines are lower in a production. deregulated market • Deregulation in 1978: • Greater competition Deregulation– Entry and exit of routes and the • Pricing freedom pricing of fares were • new entrants often take deregulated. market share with highly reduced rates Regulatory History Benefits considerations
  • 4.
    AVIATION INDUSTRY TRENDS OPPORTUNITIES THREATS 9th Largest Aviation International air travel to grow by 6.6% a year 44% hike in fuel costs Market Projected growth of 12- Domestic aviation 14% in 2011-12 Rising in operating market tripled in the expenses past five years Airbus and ATR provides advantage Domestic market share New Aviation policy to of 20 % in May, 2011 open skies to foreign First carrier to enter Big- airlines 3 alliances 11% increase in Expansion of product Entry of new airlines passenger revenue internationally
  • 5.
  • 6.
    FACTORS INFLUENCING CONSUMERBEHAVIOR Personal Psychological Cultural Social • Age • Motivation • Family • Culture • Occcupation • Perception Influence • Social Class • Reference Groups
  • 7.
    Dr Vijay Mallya Chairman and CEO of Kingfisher Airlines Launched under the brand name Kingfisher Airlines in 2003  Owned by the Bangalore based United Breweries Group Dr Vijay Mallya is also the Airlines Brand Ambassador
  • 8.
    BRAND FLY KINGFISHER Currently has a fleet of 66 aircrafts that include airbus A319,A 320, A 321,A330 and ATR72-500 and ATR 42- 500  Operates more than 375 daily flights to 71 destinations, with regional and long-haul international services. Serves 63 domestic destinations and 8 international destinations in 8 countries across Asia and Europe Short haul routes- airbus A320 Long haul routes- airbus A330-200 Emphasize on using new & technically fit aircraft which ensures safe journey without delays or cancellation
  • 9.
    Promotion Strategies • Aggressiveadvertising campaign „Fly the Good Times‟. • Promoted through many events and advertisements. • Offered the customers a direct link to the company‟s Chairman in case of inconvenience • Hand-picked crew approved after a rigorous training programme. • Loyalty and frequent flyer programs are also carried out • Personalised entertainment system web chat, inseat plugins for music, liveTV with 16 channels on each seat • Better quality of service • 100 percent E ticket airline
  • 10.
    Kingfisher has signedup the latest diva of bollywood Ms Deepika Padukone as the brand ambassador.
  • 11.
    SEGMENTATION THE VARIOUSSEGMENT OF AIRLINE USERS: The other target At last but not the Firstly ,The major group is of young least ,the elite users are the students married professionals corporate, business ,low income group (age group 20-35) class people and who choose the with small kids and VIPs who demand minimum fare flight with income levels privacy and high whichever it is. more than Rs 7 lacs level of security and per annum safety.
  • 12.
    TARGETING Focus strategy • Deviating from the usual flashy ads which hit with young (at heart) male fliers and the 'flying models ' • The ad for the young travelers talks about special kids meal, wide seats and games. The ad ends with an appeal to the father that " Your little prince deserves to feel like a King ".
  • 13.
    Differentiation Strategy • Kingfisher first as a • Cater to the different business class - economic segments of "butlers“ carry the consumer base . passengers’ bags on • Kingfisher class and off the plane. • Kingfisher red • Kingfisher red and class • Kingfisher first as an economic airlines • Kingfisher Elite for “the mango people”.
  • 14.
    BUSINESS TRAVEL KINGFISHER ELITE • One can now travel in an aircraft reserved exclusively for him and choose where and when he wish to travel • Tailored service to meet your requirements – ultimate flexibility • Private and discreet service including VIP, diplomatic and head- of-state flights • Eurocopter EC155 with a VVIP configuration • Custom-designed luxurious interiors
  • 15.
    The “king ofgood times” theme Not a journey THE Vijay Mallya – India's . Richard Branson POSITIONING Its an “experience”. Not just a passenger An “honored guest”
  • 16.
    • Facebook asan advertising medium • It helps in positioning kingfisher as people’s choice .
  • 17.
    PEST ANALYSIS POLITICAL FACTORS • Open sky policy • FDI limits: 100% for Greenfield airports • 74% for the existing airports • 100% through special permission • 49% for airlines. ECONOMICAL FACTORS • Contribution to the Indian economy. • Rising cost of fuel. • Investment in the sector of aviation. • The growth of the middle income group family affects the aviation sector SOCIAL FACTORS • Development of cities leads to better services and airports. • Employment opportunities. • Safety regulations. • The status symbol attached to a plane travel.
  • 18.
    TECHNOLOGICAL FACTORS • The growth of e-commerce and e-ticketing. • Satellite based navigation system. • Modernisation and privatisation of the airports. • Developing green field airports with private sector for example in Bangalore the airport corporation limited. ENVIRONMENTAL FACTORS • The increase in the global warming. • The sudden and unexpected behavior of the atmosphere and the dependency on whether. • Shortage of the infrastructural capacity • Tourism saturation . LEGAL FACTORS • FDI limits • Bilateral treaties • Airlines acquisitions and the leasing cost.
  • 19.
    Suggestions • Reduce thelabour cost • Simplify the flight operations • Offer more transparent pricing • Get smart on fuel • The process of acquiring spice jet if complete would make kingfisher the largest player in the aviation industry • Different modes of pricing should be taken care of.
  • 20.
  • 21.
    BRAND IMAGE Airlines Kingfisher Indian Airlines Jet Airwyas Indigo
  • 22.
    Conversion Rate Kingfisher Jet Airways Indian Airlines Indigo
  • 23.
    Main Driver Price Service Offers Brand Image
  • 24.
    Consumer Perception 100% 90% 80% 70% 60% 50% 40% Indigo 30% 20% Indian Airlines 10% Jet Airways 0% Kingfisher
  • 25.
    USERS • Grooming and NON USERS Present Ability • Trade off • Most high-end between extra domestic expense and carriers high standards • Exudes an air of luxury • Marvelous service
  • 26.
    spunky, well- done interiors and trained airhostesses. beer tagline of exuberant, yo "The King of uthful and Good Times" fast-paced the theme of image is "Fly the Good leveraged Times" is given Present to KFA. Strategies Kingfisher in-flight silent flying face of auctions the month'
  • 27.
    celebrities for Increase endorsements like advertising Milind Soman / expense Ranbir Kapoor who are youth icons introduce late night lowering the prices flights between of their tickets metros Recommendations
  • 28.
  • 29.
    COMPARISON OF KINGFISHERTO OTHER PLAYERS •Priced lower than Indian airlines, yet offer a great flying experience. •Interiors and food definitely better compared to other airlines. •Captured a 27.6% market share last year in comparison to Jet- 25.2% and Air India-17.2%. •Targeted frequent fliers •Passengers who enjoy the luxuries of life and have a bent towards flamboyancy.
  • 30.
  • 31.
    SWOT ANALYSIS Strength Weakness • Strong brand value and reputation in the • Highly priced for the service offered minds of customers • Yet to break even • Unmatched in-flight service • High attrition at top brass • Route rationalization • First airline to have a full new fleet of airbuses • Exclusive terminal share deal Opportunities Threats • Expanding tourism industry • Competitors • Under penetrated domestic market • Infrastructure issues • International market • Fuel prices • Untapped air cargo market • Economic slowdown
  • 32.
    POSITIONING • Flying with • Young TARGETING • Niche SEGMENTATION Marketing: Kingfisher is married Talks with an experience professionals Goa Govt.S in itself with small • Partnering • It is not just kids with selling tickets • Income more premium per say but than Rs 7 hotels like also selling lakhs p.a. Park Hotel. “Experience” • Commute • Commute between Tier faster with 1 and Tier 2 entertainment cities • Hard core loyals
  • 33.
    The “king ofgood times” theme Not a journey THE Vijay Mallya – India's Richard Branson. POSITIONING Its an “experience”. Not just a passenger. An “honoured guest”
  • 34.
  • 35.
    A PREMIER PRODUCTFOR THE INDIAN FLYER Strong Kingfisher Brand • High brand salience & preference in the minds of Indian consumer Strong Kingfisher Brand Diversified Network MonopolyHighest exclusive stations amongst private carriers • Destination Monopoly Destinations • Premium business class product, well trained young staff High Service Quality • Well spread on business and leisure routes Diversified Network
  • 36.
    POWERFUL PROMOTION THESTRENGTH OF KINGFISHER
  • 38.

Editor's Notes

  • #5 Airbus and ATR fleet provides unique advantage to capture growth in metro, Tier-2 cities and international marketFirst carrier to enter Big-3 alliances – One World; In addition, Kingfisher and Jet are the only private carriers currently to have approval for international operations
  • #22 Brand Recall of Kingfisher is high due to customization and the emphasis on quality by the founder Mr. Vijay Mallya.
  • #33 Young married professionals (age group 20-35) with small kids At Kingfisher Airlines we follow the same and we do not believe that we are into the business of transportation, we are in the Aviation Hospitality Space and believe in offering our guests that ultimate experience 30,000 feet in the skies.The fact that our average loads are over 70 percent at any given time, I think we have touched the consumer pulse. Our guests keep coming back for more of the `Good Times’ onboard Kingfisher Airlines.Talks with Goa Tourism to boost domestic traffic during monsoonSegment:Done promos with Malaysia Tourism to organise a golf tournament for CEOs in Delhi6. Running online contests to boost traffic 7. Looking at partnering with premium hotels like Park Hotel 
  • #34 An, attendents etc  aggressive strategy to promote its guest loyalty programme, King Club Kingfisher:"Experience" – Food
  • #36 Strong Kingfisher BrandHigh brand salience & preference in the minds of Indian consumerDiversified NetworkWell spread on business and leisure routesMonopoly Destinations Highest exclusive stations amongst private carriers High Service Quality LevelsPremium business class product, well trained young staffBalanced & Flexible Aircraft Configuration Well positioned to capitalize on the demand uptickSegmented customer base targeted effectively through three sub brands “Kingfisher First”, “Kingfisher Class” and “Kingfisher Red”Flexibility to deploy same aircrafts across Kingfisher Class and Kingfisher Red based on needOutsourced Ground Handling Protection against policy changeMore than 1 million members; superior features like faster tier upgrade, non-air reward shop, family club program encouraging customer stickiness