Kingfisher Airlines

INTRODUCTION TO UB GROUP

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K I N G F I S H E R A I R L I N E S

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•United Breweries Ltd (UBL)

•Based in Bangalore

•Major focus on alcoholic beverages

•Found by a Scotsman in 1857

•Pegasus became the group logo in 1940

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HISTORY

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•Started operations on 9 May, 2005

•1st flight : Mumbai – Delhi

•Modeled its strategies on JetBlue Airways

•Aircrafts called “Kingfisher Funliners”

•All aircrafts had IFE

•Only 1 class - Kingfisher Class


VISION AND MISSION

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Vision – “The KFA family will continually deliver a safe, value based and enjoyable travel experience to all our guests.”

Mission – To make Kingfisher Airlines the best in the world


7 P’S OF MARKETING

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Product

Domestic & International Air Transport Service.

74 domestic destinations & 3 international destinations in 3 countries across Asia & Europe.

Place

The metro cities or the tier 1 cities in IndiaPromotion

Events & advertisements

Loyalty & frequent flyer programs are also carried outPrice

Higher income group as well as the middle class background

Sec A, sec B+ socio economic class mainly in the age group of 25-45 yearsPeople

Hospitality industry, Interpersonal skills, aptitudePhysical Evidence

Exclusive lounge space, Hi! Blitz, Gourmet cuisine, world class cabin crew,Process

Booking the ticket-online booking, Tele-booking , Kingfisher outlet

MARKETING ENVIRONMENT OF KINGFISHER AIRLINES

MICRO ENVIRONMENT

COMPANY – major goal of the kingfisher airline family is the consistent delivery of safe and enjoyable travel experience

SUPPLIERS - The airline needs regular supply of fuel, food and beverages, maintenance.

MARKETING INTERMEDIARIES - Website, ticket booking agents are the few intermediaries

CUSTOMER - Company survives on the basis of meeting the needs, wants and providing benefits for their customers. Fares are average as compared to jet airways or air India launch of kingfisher red services to target budget flyers try to increase the perception of ‘More Value for Money’ for the passengers.

COMPETITION - Closest competitor for kingfisher airlines is jet airways, as it is the fastest growing airline in India. And targeting to the premium and executive class of the country and providing high quality of services.

PUBLIC - Company requires great inward investments from the shareholders to grow

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MACRO ENVIRONMENT

DEMOGRAPHICS - Kingfisher Airlines is a five star airline service and thus targets the upper class people. Thus income, social class and occupation are the factors that affect the company’s marketing strategies.

ECONOMIC – factors which had affected KFA’s market are launch of new LCC, like go air & spice jet. Jet airways acquisition with air Sahara which would make Jet Airways India's largest airline with an almost 45% market . There were also other challenges which affected the airline industry as a whole, like high aviation turbine fuel (ATF) prices and congestion problems at high traffic airports like Mumbai and Delhi.

NATURAL-involves the natural resources needed by the company as inputs. Environment concerns have grown steadily in past few years. Since airline needs fuel which is a natural resource, so it could be a serious problem in future economic growth of the company.

TECHNOLOGICAL-advances in technology affects market in many ways. Various developments in IT system are used for the maintenance of aircraft. Due to advanced technologies new designs of aircrafts are being proposed which are more efficient in performance.

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CULTURAL- As a company, its important to understand what is going on in social and cultural environment, as customer’s perceptions and behaviors are constantly changing. sometimes brands are used as a means of self expression, customers buy product and services that connects with them easily.

POLITICAL - The Indian Government, as part of its "open skies” policy, ended the monopoly of IAC and AI in the air transport services by repealing the Air Corporations Act of 1953 and replacing it with the Air Corporations (Transfer of Undertaking and Repeal) Act, 1994. Private operators were allowed to provide air transport services. Foreign direct investment (FDI) of up to 49 percent equity stake and NRI (Non Resident Indian) investment of up to 100 percent equity stake were permitted through the automatic FDI route in the domestic air transport services sector. However, no foreign airline could directly or indirectly hold equity in a domestic airline company

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SEGMENTATION

Attributes Elite fliers Seekers Bag Packers

Income(demographic) >Rs. 7 lacs

p.a.(Rs)

Rs. 3 lacs to Rs. 5 lacs

p.a.

Rs. 2.5 lacs to

Rs. 4 lacs p.a.

Location(geographic) Tier – I, Tier - II Tier - I, Tier - II Tier - I

Age Group (demographic) 20-35 yrs 30-55yrs 18-30 yrs

Purpose of

travel(pschographic)

Business,

Leisure

Business, Leisure Point to Point,

Short distance,

Leisure

Lifestyle (pschographic) Flamboyant Orthodox/conventional Unmanaged

Occupation(demographic) Young

professionals

Business executives IT, ITES,

Students,

unemployed

Loyalty (behavioral) Hard core loyal Loyal/switchers switchers

Usage rate (behavioral) Frequent, First

timers

Frequent First timer

Family life

cycle(demographic)

Young married,

Young married

having kids

Older, married having

older children

Young non-

married, Young

married

Airlines kingfisher Indian Air Deccan

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TARGETING

•SEC A, SEC B in the age in the age group of 25-45 years of age. This segment has traveled extensively and is aware of international travel trends. They are modern, trendy and upwardly mobile looking for a great flying experience.

•They target young married professionals (age group 20-35) with small kids and with income levels more than Rs 7 lakhs per annum; who generally commute between Tier 1 and Tier 2 cities ; travel for business and leisure ; frequent fliers ; enjoy the luxuries of life and have a bent towards flamboyancy. These fliers are generally observed to be hard core loyals.

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POSITIONING

•The airline was called a budget airline and not an LCC. Fares were above those of LCCs but lower than the economy class fares of Jet, Sahara, and IA. KFA also allowed multiple fare options and auctioning of tickets on all traffic routes.•The one word which people associate with Kingfisher airlines is “Experience.”•KFA created a new category Aviation Hospitality, thus making hospitality and service the main focus.•Consumers know that they just have to pay a bit more for high level of comfort during the journey. This shows how efficiently they have positioned themselves in the market as a premium brand that provides high quality service at a bit extra cost.

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BUYING BEHAVIOUR

• Termed as the “first full frills - true value carrier”, Kingfisher was the first carrier to introduce first-class premium cabins onboard its flights

• Today, the air travellers not only want to commute faster but also want to be entertained and Kingfisher is the best in the business to do the same. Seating space is comfortable, TV makes the journey very short and the quality of the food served is also good. The appropriate use of technology by Kingfisher makes the journey enjoyable. The information displayed on screen such as distance remaining, weather etc, create the curiosity about the journey and the graphics and camera view are breathtaking

• People fly by Kingfisher because it suits their convenience. With the help of Roving agents travellers can directly approach the security check-in counters. Also, the facility of web check-in, allows travellers to print their boarding passes via www.flykingfisher.com

• Kingfisher Airlines provides its customers with luxury, comfort, enjoyment and relaxation. Its network includes newer and widespread geographical locations, thus fulfilling the needs of customers to reach the distant locations

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http://www.flykingfisher.com/

BUYING PROCESS

Air India

Kingfisher airlines

Jet airways

Air India

Paramount airlines

Indigo

Spice Jet

Air India

Kingfisher airlines

Jet airways

Air India

Indigo

Air India

Kingfisher airlines

Jet airways

Kingfisher airlines

Air India

Kingfisher airlines

Jet airways

Indigo

Total set Awareness set Consideration set Choice set Decision

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CHANNELS OF BUYING

• On Phone Booking (Call Centers)

• Online Booking (Internet Booking)

• City Offices/ Franchises

• Airport Bookings

• Travel Agents

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CONSUMER TRENDS

• Today’s air traveller is like any other consumer looking for value for money. Disposable incomes are on the rise and the consumer is willing to spend more for quality and brands. Air travel is no more about transporting passengers. It is more about the flying experience

• Looking at all international airlines it can be noticed that no one is selling an air ticket any more, they are selling an experience - that of luxury, comfort, enjoyment, relaxation. At Kingfisher Airlines same is followed and they believe in offering their guests that ultimate experience 30,000 feet in the skies

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PRODUCT MANAGEMENT

CORE BENEFIT - flying in style and comfort

SERVICE DESIGN

Welcome to the kingfisher experience ensures easy accessibility to Guests. Telephone numbers are accessible 24 hoursensure easy availability of tickets.Amendments and Cancellations up to one hour before the scheduled departure.Keep their guests informed in case of known delays, cancellations and diversions.

At the airportValet Service Checking-In , multiple checking counters.Guests are offered refreshments in case the delay is more than one hourRoving agents

On board experiencein flight entertainmentmeal options- 6 different types of menuworld class crew

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SERVICE DESIGN

Reaching your destination Baggage Delivery Delayed / missed Baggage

Special needsSpecial care is taken even while assigning a seat on board the flight. These Guests are assigned seats closer to the exits and lavatories so that they can board, use facilities and disembark in comfort.

Hope you had great experience We listen - Our feedback system We understand and improve We respond - Our follow up Contacting us

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AUGMENTED SERVICES (1/2)

ComfortThe expansive legroom, the fully lie flat bed in Kingfisher First and the widest seat pitch in the skies, allows passengers to stretch their tired muscles to the fullest. Thought delights like touch screen seat controls, sensuous mood lighting, unique starry sky, in-seat chargers, in-seat massagers, an exclusive amenity kit and facilities like jacket ironing are all there to give you a feeling of sheer luxury.

EntertainmentAir Premiere, the premium Kingfisher Airlines entertainment magazine is created to make the most of your moments on board. With a collection of the biggest Bollywood, Hollywood and World Cinema hits, best-loved TV shows, exciting games and videos, business bytes and legendary music concerts, streaming in through Bose noise-cancellation headphones, you will experience entertainment at its best. Alternatively, shop in our “Air Boutique” or stay in touch with the world below with Wi-Fi connectivity, web chat and email.

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AUGMENTED SERVICES (2/2)

Mall Experience OnboardA passenger can place orders onboard for a range of personal products, travel accessories, home care and Kingfisher Airlines-branded merchandise, which are not available at regular retail points

Kingfisher Airlines and dishtvIt revolutionized the way Indians perceive in-flight entertainment and enables LIVE TV onboard every Kingfisher Airlines flight. With the launch of LIVE TV onboard, Kingfisher created history

Kingfisher tied up with perfume brands The idea behind the scheme is to associate with like-minded leading international brands, to provide maximum value to the guests and also create an opportunity to communicate with the relevant target audience through a non-conventional platform

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VALUE PROPOSITION

Value Proposition

• Costs lower than economy class travel on full service airlines and marginally more than the bus services type low cost completion

• Delight and pamper their guests through unparallel services like rover agents, web check-in, comfort and convenience

• Designer aircrafts keeping the customers comfort and convenience in mind, with kind and helpful stewards, stewardess, air hostesses

• Various in-flight entertainment options

• Lowest per seat mile cost in India.

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PRODUCT LINES (1/2)

Kingfisher FirstThe seats have a 48 inch seat pitch and a 125 degree seat recline with laptop and mobile phone chargers on every seat. Passengers can avail of the latest international newspapers and magazines. There is also a steam ironing service on board Kingfisher First cabins. Every seat is equipped with a personalized IFE system with AVOD which offers a wide range of Hollywood and Bollywood movies, English and Hindi TV programmes, TV channels and 10 channels of Kingfisher Radio. Passengers also get BOSE noise cancellation headphones.

Kingfisher ClassThe Kingfisher Class has 32-34 inch seat pitch with footrests, equipped with personal IFE systems with AVOD on-board. passengers can access the latest movies, English and Hindi TV programmes, live TV and Kingfisher Radio. There are 17 colour LCD drop-down screens mounted along with loudspeakers for audio in the cabin overhead, a head-end unit to handle CDs and DVDs, and a crew control panel.

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PRODUCT LINES (2/2)

Kingfisher RedKingfisher Red is Kingfisher Airline's low-cost class on domestic routes. Passengers are given complimentary in-flight meals and bottled water. A special edition of Cine Blitz magazine is the only reading material provided. Kingfisher Airlines is the first airline in India to extend its King Club frequent flyer program to its low-cost carrier as well. Passengers can earn King Miles even when they fly Kingfisher Red, which they can redeem for free tickets to travel on Kingfisher Airlines or partner airlines.

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MILESTONES IN THE INDIAN AVIATION INDUSTRY

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Air india

Oct 1932

Jet airways

May 1993

Jet lite

Dec 1993

Spice jet

May 2005

Kingfisher

May 2005

Go air

June 2005

Paramount

Oct 2005

Indigo airlines

Aug 2006

PRICING STRATEGIES

Mallya made it clear that KFA would not be positioned as a low cost carrier as passengers would attribute the features of low cost carriers like low quality of service, delayed flight timings, etc., to KFA as well.

Hence, the airline was called a budget airline and not an LCC. Fares were above those of LCCs but lower than the economy class fares of Jet, Sahara, and IA. KFA also allowed multiple fare options and auctioning of tickets on all traffic routes.

Kingfisher follows a dynamic fare policy and the fare levels fluctuate depending on the number of bookings made / anticipated on a particular flight.It is their commitment to Guests that at any given point of time the lowest available fare at that time would be made available on all booking mediums.

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MARKETING STRATEGIES

•ENTRY STRATEGY--Aptly leveraged the youthful and vibrant image of its beer brand and offered the `Fly The Good Times’ proposition to travelers.

-Termed as the “first full frills - true value carrier”

-As part of its promotional strategy, the marketing team of KFA showcased the airlines as 'the new flying experience'.

-KFA successfully leveraged 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 market.

-They had used many media vehicles for advertising like outdoors near the airports and at prime location, advertised with INOX theaters, was the official travel airline for the cast and crew of ‘Mangal Pandey’.

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MARKETING STRATEGIES

-the introduction of the Roving Agent at the airport

-Rather than waiting at the check-in counter to collect their boarding pass, travelers can directly approach the security check-in counters.

-launched is the facility of web check-in, allowing travelers to print their boarding passes via www.flykingfisher.com.

-360 degree approach-Given this they use all media of communication be it television, print, radio, outdoor, malls, multiplexes, clubs, pubs, in-flight etc.

-They have tied up with the best of brands across industries. Tata Tetley, Pepsi, Microsoft, Inox, Kenzo , IFB, Taj, Park Hotels and Oxford book stores

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http://www.flykingfisher.com/

PROMOTIONAL STRATEGIES

•Joined hands with Dish TV, to be the first one to offer in-flight entertainment.•Book tickets on GPRS enabled mobile handsets after securing the ‘no pay’ options.•has signed up the latest diva of Bollywood Ms.Deepika Padukone as the Brand Ambassador.•Contests like `Kingfisher flying face of the month' are on cards•The Kingfisher "Funliners" will have in-flight silent auctions for lifestyle products and sales of packaged food and beverages. The Kingfisher airhostesses will be selected through a nationwide contest. BRANDING•Challenger brand that came in and upped the ante on guest service in order to gain rapid consumer acceptance and brand connect. In a short span of four-and-a half years, KFA’s brand strategy has changed to portray the image of a thought leader and innovation driver in the industry•The Kingfisher Airlines brand stands for warmth, innovation, vibrancy and service. Our branding efforts strive to portray these brand values across touch-points,” •Kingfisher is possibly the only airline that has maintained some degree of brand integrity on this count,”

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CRM

•Most rewarding frequent flyer program- KING CLUB

•Membership Tiers within King Club; King Red, King Silver, King Gold and King Platinum. Each tier offers a unique and expanding suite of valuable benefits and exclusive privileges.

•flexible redemption

•Daily Status Review - faster qualification to the next tier

•Earn more and do more with your King Miles

•Five Star Privileges

•Little Wings

•King Mobile

•"Best New Airline of the Year Award 2005" – Kingfisher Airlines,•In 2008 Kingfisher Airlines conferred the prestigious `5 - Star Airline Status` by Skytrax

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PRINT ADS


OUTDOOR ONLINE

MOBILE

PRINT



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Thank you!!

Technology

Kingfisher Airlines