CB Kingfisher Airlines

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Kingfisher Airlines

Consumer BehaviorAnalysis

:-Gaurav R Arora

:-Bhakti Roychowdhury:-Arihant Jain

(GPBL III)


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Table of Contents

Preface

3

Company background......................................................................................................4

Market Share..................................................................................................................5

Decision Making Process...............................................................................................6-9

Factors Influencing Purchase behaviour..........................................................................10-12

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Preface:

Understanding the consumer behaviour is important for a brand as it helps to connect withtheir customers. Consumer behaviour entails understanding the entire chain of activities rightfrom how the purchasing process is affected to how a brand motivates its consumers. Thishelps to set the brand personality and therefore how the brand is perceived by the customers.

Aviation remains a large and growing industry. It facilitates economic growth, world trade,international investment and tourism and is therefore central to the globalization taking placein many other industries and we attempt to study the industry in detail in our assignmentthrough Kingfisher Airlines.Kingfisher Airlines is one of the leading private players in the Indian aviation industry.

Incorporated in 1995 as Deccan Aviation, the company is engaged in the business ofproviding passenger services.

By studying Kingfisher as a brand, we are trying to analyze how Kingfisher is perceived bythe consumers. Through its marketing efforts, Kingfisher is trying to favourably affect theconsumers evaluation of the brand. Our study will help to understand the brand personalityof Kingfisher as perceived by the consumers and how the marketing efforts are affecting thebrand. Through our market research effort we have attempted to bring out the various aspectsof the decision making process and assess the marketing implications attached to it.

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Company Background

Kingfisher Airlines is a private airline based in Bangalore, India. The airline isowned by Vijay Mallya of United Beverages Group. Kingfisher Airlines startedits operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. Theairline currently operates on domestic routes. The destinations covered byKingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad,Ahmadabad, Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh,Mangalore and Jaipur.

In a short span of time Kingfisher Airline has carved a niche for itself. The

airline offers several unique services to its customers. These include:personal valet at the airport to assist in baggage handling and boarding,accompanied with refreshments and music at the airport, audio and videoon-demand, with extra-wide personalized screens in the aircraft and three-course gourmet cuisine.

Kingfisher Airlines currently operates with a brand new fleet of 8 Airbus A320aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the firstairline in India to operate with all new aircrafts. Kingfisher Airlines is also thefirst Indian airline to order the Airbus A380. UB holdings Ltd, has acquired26% stake in the budget airline Air Deccan and has option to buy further of

20% stake from the secondary market.A look at the market reveals that the major players in the Indian aviationsector market are Kingfisher Airlines, Jet Airways, Air India, and Deccanamongst others.

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http://en.wikipedia.org/w/index.php?title=UB_holdings_Ltd&action=edithttp://en.wikipedia.org/wiki/Air_Deccanhttp://en.wikipedia.org/w/index.php?title=UB_holdings_Ltd&action=edithttp://en.wikipedia.org/wiki/Air_Deccan


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Market Share (2010)

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Decision Making Process

Customers form one of the most important and crucial aspects that a

company has to manage and focus so as to reach their business objective.

For an effective implementation, it is very important for the company to

understand the consumer buying process.

There are six stages that consumers have to undergo to make a purchase

decision but all consumer decisions do not always include all six stages,

determined by the degree of complexity.

Based on our research on kingfisher airlines. Following are the six steps ofconsumer buying process:-

i) Problem Recognition (awareness of need)

ii) Information search

Iii) Evaluation of alternative

IV) Purchase decision

v) Purchase

vi) Post-Purchase Evaluation

i) Problem Recognition: - (awareness of need):- This step basically refers

to difference between desired state and the actual state of a consumer.

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Problem recognition is generation of a thought process by consumer about

the desired need and a thought to achieve it.

For kingfisher airlines, customers undergo with the thought process for

travel which will stimulate the need to go by a respective means. If the

consumer needs to travel and is restricted to

Time

Energy

Accuracy

Punctuality

Kingfisher will be a perfect match for this profile of consumers.

ii) Information search: - In this step the consumer does an analysis of the

desired need , so as to fulfill it the way he/she would like. The consumers will

search and collect all the possible information that will be needed so as to

satisfy his/her need and also to go one step further to transform his /her

actual state to desired state. Consumer will now think about

Means of travel

Schedule Personal plan

Maps and respected information.

Travel class

Advertisements

iii) Evaluation of alternative:-

This is one of the most important step in which consumer will

search for a various different alternative which satisfies his /herprofile and respective needs. As per our research on kingfisher

airlines ,following will be the alternative that might confuse our

consumer to take decisions:-

Jet airways

Kingfisher airlines

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Country airlines( Singapore airlines, American airlines,etc)

iv) Purchase decision:-In this step the consumer will make a final decision of purchase and

will decide the specific alternative which will satisfy his /her needs and

wants. The consumer decides his/her alternative on the basis on

following parameters:-

Time,

Energy,

Finance,

Mode of payment,

Method of purchase,

Store,

Packaging,

Value added services,

Accuracy,

Etc.

As far as our example goes the consumer will make an attempt to decide the

final airline, lets take Kingfisher. In this the consumer will go with his chosen

option (kingfisher) which satisfies his profile on the basis of the parameters

discussed above.

V) P urchase:-

In this step the consumer finally makes purchase. I.e. he/she goes with

his/her chosen option and make a purchase about product and services they

want.

For kingfisher the consumer will finally make payments and get his/her

tickets done for the desired location. In this step the consumer decides to

choose the kingfisher airlines for his/her journey because of:-

Trust and loyalty

Influence by viral marketing

Etc.

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vi)Post-Purchase Evolution:-

This is the most important step of consumer buying process. This step helps

the most, to retain customers, based on after sales services and the product

or services experience gained by the consumer. If the consumer likes the

services or product, he/ she will again make an attempt to buy the

respective products again. This step is generally based on two parameters :-

Satisfaction

Dissatisfaction

As we continue our example the consumer will travel by his/her

chosen option. While travelling the consumer will notice the

quality of services and comfort level which he will obtain. On the

basis of that the consumer will evaluate and generate idea and

opinion about kingfisher. If the services provided by kingfisherand also after journey response satisfies the consumer, he will

blindly go for kingfisher again.

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Factors That Influence Consumer Purchase Behavior forKingfisher Airlines

P ERSONAL FACTORS

Lifecycle Stage :-

Lifestyle is a mode of living that is identified by

activities How a person spends time and resources

interests What a person considers important in the environment

opinions what a person thinks of self and the world

According to our research there is no age consideration as such. But generally kingfisher isknown for business travelers aged 25+ and a person more concentrated on self status.

Occupation :- Business Man, Service, Student. Economic Situational :- Urban upper middle class.

P H SYCOLOGICAL FACTOR

Motivational :- Brand image, Word of mouth publicity, Attractive Cabin Crew

Perception :-The process by which the individual use information to create a meaningfulpicture by selecting,organinsing and interpreting.People perceive Kingfisher providesefficient and timely service with value for money

SOCIAL FACTORS

Personal Influence :-

Aspects of personalinfluence importantto marketing

Opinion leaders

People who like to take risk in terms of trying new

airways, every time they travel can be a opinionleader for Kingfisher Airways

Word of mouth

Power of word of mouth has been magnified bythe Internet and e-mail through positive feedbackabout Kingfisher Airlines on site such asmouthshut.com

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Reference Groups ;- Reference groups are people to whom an individual looks as a basisfor self-appraisal or as a source of personal standards. Reference groups have animportant influence on the purchase of high end airline like Kingfisher.

Three groups have clearmarketing implications

Membershipgroup

one to which a person actually belongs

Aspirationgroup

one with which a person wishes to beidentified.

Dissociativegroup

one from which a person wants to maintain adistance because of differences in values orbehaviors

Family Influence :-Family members can strongly influence the buyer behavior.Kingfisher is interested in roles and influence of both spouse and children for the use oftheir services.

CULTURAL FACTORS

Culture :- Progressive bent of mind and modern outlook Social Class: - Engineers, Doctors, Businessmans and Business Professional.

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Personifying Kingfisher Airlines

(Users and Non Users)

One of the most important aspects of a person in the services arena is the level of

grooming and present ability This sets the perception and first impression among

customers who will be availing of the services. This is where Kingfisher scores the

maximum points The advertisements emphasizing the fact that Kingfisher is the

most high-end domestic carrier have all been winners. Users of the airline relate to

the fact that the airline is perceived to be a carrier for high-end travelers and for

travelers who have arrived in life. It exudes an air of luxury with the sophisticated

cabins, in-flight entertainment systems and great quality food. This has been

further enhanced by featuring models like Yana Gupta in different advertisements

and through the flamboyant nature of the owner Vijay Mallya himself.

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However one rarely likes a person who is only about grooming and lacks depth and

quality. A true winner in todays world is one who is highly presentable, polished

but also has the depth of knowledge and qualities in his or her chosen area ofexpertise. This is where Kingfisher comes up trumps. Any concern about the airline

being all fizz is quickly dispelled as one enters and gets seated in one of the

comfortable reclining seats. The service is marvelous the entertainment system,

food and service by the cabin crew are of the highest quality. For Users of the flight

it is easily comparable to a Roger Federer Polished, handsome and the best in his

field of work and all this with a steady head on his shoulders with a down to the

earth attitude.

For non-users of this brand the airline is like a person with very high tastes and

hence a high maintenance cost. People relate it to someone who is too good to be

true with the tradeoff being the extra expense that needs to be incurred in orderto ensure that the high standards can be maintained. The extra cost is precisely

what is recovered from the passengers by putting an extra premium on the ticket

fares. Hence, this category of travelers would rather go in for a no frills airlines

akin to a person who is probably not the best or the smartest but has enough to get

the job done and comes at a lower price. After all if a team can win a cricket match

with Suresh Raina then there is no need to hire Sachin Tendulkar

How Kingfisher Airlines exerts a pull on customers

Kingfisher Airlines is not be a run-of-the mill Indian budget airline.

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.

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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.

Analysis of Data (60respondent)

Motivation to travel by Kingfisher

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Meeting Customer Aspirations

According to our research, the Marketing Division of Kingfisher Airlines has adequatelyunderstood the target audience because they excel in providing world class services asmentioned below for the target elite set.

On time flight services Entertainment Comfort & Cozy interiors Myriad exclusive deals Value added services Well trained staff Key player in luxury line airbus Updated Aircrafts (A320,A380,A350) Value based safe and enjoyable travel experience

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Recommendations

The success of Kingfisher Airlines branding strategy has led to a change in

the competition's marketing strategies, as well. Many of Kingfishers

competitors are now consolidating their brand. And, therefore, it puts value-

for-money above all. The following recommendations have been put forth by

us based on our extensive research and feedback provided by the

respondents.

Kingfisher airlines can think about lowering the prices of their tickets

even though their target market is the elite class.

Increase advertising expensewill help brand Kingfisher gain further

market space and strengthen brand recall

Can rope in celebrities for endorsements like Milind Soman / Ranbir

kapoor who are youth icons of today representing the upper cool,

swish set.

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Can improve their child care and entertainment services by providing

games like Play station etc for kids.

Can introduce schemes like free tickets for Frequent Fliers

Kingfisher Airlines can introduce Late bird / Night bird flights between

metros

Kingfisher Airlines should schedule more number of flights to and from

station like Delhi, Mumbai, Chennai, Collate, Bangalore as these

sectors account for high payload

Kingfisher Airlines needs to undertake aggressive Marketingcampaigns.

Kingfisher Airlines should undertake customers satisfaction surveys

regularly

Kingfisher Airlines should make provisions to add up more financial

benefits for its passengers

New approaches should be identified and rewarded so that it serves as example for others

Bibliography

The Brand that Stands Apart

http://www.articlebase.com (Accessed on 27th July 2010)

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http://www.articlebase.com/http://www.articlebase.com/


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Ensuring Travelers enjoy the Good Times, interview with Mr. Girish

Shah(former head marketing Kingfisher Airline ltd)

http://www.articlebase.com (Accessed on 27th

July 2010)

Strategies of Kingfisher Airlines, 12th April 2010

http://www.strategies/kingfisher.htm (Accessed on 27th July 2010)

http://Airline /Consumer purchase decision process.htm

(Accessed on 28th July 2010)

http://market share/Airline.htm

Consumer Behavior, fourth edition, Tata Mc Graw-Hill, David l.Loudon& Albert

J.

Questionnaire

Consumer Behavior Research on Kingfisher Airlines

Profile:

Name: _________________________________________

Age: 15-25 25-30 30 40 40 & above

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Gender: Male Female

Profession: Business Service Student Other

1. Kingfisher primarily is -

FMCG

Beverage manufacturer

Airlines

None of these

No idea

1. Where have you seen Kingfisher Advertisement?

Newspaper ads TV/Radio Ads

Hoardings

Posters & Banners

Internet

Other Pls. specify __________________

1. Kingfisher as a Brand stands for

Modern Youth Brand

VAS (Value Added Service)

Total Service Consistency

Low Tariff

Connectivity

1. Have you travelled by Kingfisher Airlines?

Yes

No

If yes then why?

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Service efficiency

Fare structure

On time efficiency Ease of online booking

All of these

If no, then why?

1. What influences your decision to travel by Kingfisher Airlines?

Image of the brand Fare structure

Word of mouth publicity

Social Status

All of these

1. Whom do you relate Kingfisher Airlines to?

Business travelers

Celebrities Youth

Foreign Travelers

Budget Travelers

7. Rate the importance of following factors on 5 Point Scale whilerating Kingfisher

S.

No.

Items Too

Bad

Bad

(2)

Ok

(3)

Good

(4)

Very

Good

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(1) (5)

1. Appearance, Attitude &

uniform of employees

2. In-flight modern & clean

facilities

3. Quality & variety of in-flight

food

4. Efficiency in the check-in

process

5. On-time performance of

airlines

6. Proper information to

customers in advance in

case of flight delays & re-

scheduling

7. Prompt attention to

customers personal needs

8. Sincerity & friendly attitude

by the employees

9. Safety standards are

maintained & emphasized

10. Safety standards are

maintained during flights by

the crew

11. Employees are courteous &

helpful

12. Proper ground facilities are

maintained

13. Numerous ticketing

mediums are available to

the customers

14. Enough information is

available about Kingfisher

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prior to purchase

15. In-flight facilities e.g.

blankets, pillows etc. are inproper condition

S.

No.

Items Very

Unsure

(1)

Unsu

re

(2)

Neutr

al

(3)

Sur

e

(4)

Very

Sure

(5)

16. It is most likely that I

would choose Kingfisher if

I liked its advertisement.

17. I will definitely choose

Kingfisher over other

brands

8. Would you recommend Kingfisher airlines as a brand to others?

Yes No Not Sure

Please provide the reason for above, in case your answer is No.

______________________________________________________________

9. Any other feedback you would like to share about Kingfisher.

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Thank you for your cooperation!

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Documents

CB Kingfisher Airlines