ion on Kingfisher Airlines

8/2/2019 ion on Kingfisher Airlines

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CONTENTS

INTRODUCTION TO AVIATION

WHERE WE ARE NOW?

WHERE WE WANT TO BE?

HOW WILL WE GO THERE?

CONCLUSION


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INTRODUCTION TO

AVIATION

Aviation industry in India started with its first commercialflight on February 18, 1911. With a growth rate of 18% perannum the Indian Aviation Industry is one of the fastestgrowing aviation industries in the world.

Today private sector account for around 75% share of thedomestic aviation market.

India is currently on 9thposition in worlds aviationmarket. Passenger traffic is projected to grow at arate of over 15 per cent in the next 5years.

The Vision 2020 statement announced bythe Ministry of Civil Aviation, envisagescreating infrastructure to handle 280 millionpassengers by 2020.

Investment opportunities of US$ 110 billionenvisaged up to 2020 with US$ 80 billion in

new aircraft and US$ 30 billion in infrastructure Open sky policy

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WHERE ARE WE NOW ?(ANALYSIS)

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ABOUT KINGFISHER

Industry Aviation

Parent group UB group

Owner Mr. Vijay Mallya

Founded 9th may,2005

Headquarter UB city, Bengaluru

Bases Bangalore's Bengaluru Internationalairport, Mumbai's Chhatrapati Shivaji

International Airport,Hyderabad's Rajiv Gandhi

EXISTING

ORGANISATION


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ACHIEVEMENTSKingfisher has received globalawards at the SKYTRAX worlds airlineawards.

Indias only 5STAR airline and 6

th

airline in the world.NDTV profit business leadership

award for aviation


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Factors affecting marketingstrategy of company

Kingfisher

Political

Factors

Economical

factors

Social

factors

Technological

factors

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EXTERNAL FACTORS

MACRO

POLITICAL FACTORS Government stability Taxation policy Foreign trade regulation Trade union power Labour employment rules Infrastructural constraint

ECONOMIC FACTORS Money supply Investment levels

Rising income level 8


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SOCIO-CULTURAL FACTORS

Demographics

Lifestyle

Attitude

Sound pollution

TECHNOLOGICAL FACTORS

Modernization of aircraft

E-commerce and E- ticketing

Industrial R and D expenditure

Speed of technology transfer

Product life cycle

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PORTERS FIVE FORCE

MODEL

Threats fromcompetition

(JetAirwyays,Indian

Airlines)

Threats fromnew entrants

(Virgin Atlantic,

QuantasAirways)

Bargainingpower of

customers(Economic &demographic

changes,

Increasingawareness,

Exposure toglobal brand)

Threats fronsubstitution

(Other modes oftransport )

(Bargainingpower of

suppliers)

Fuel supplier

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MICRORivalry Determinants

Industry growth Product differences

Switching costs

Brand identity

Exit barriers

Potential Entrants

Capital requirements Government policy

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Substitution Threats

Relative price performance

Switching costs Buyer propensity to substitute

Determinants of buyer power Buyer concentration

Buyer information

Substitute products

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Kingfisher

airlines-20.8%

Go air-

5.2%

Paramoun

tairlines-14%

Spicejet-12.9%

Indigo15.2%

AirIndia-18.3%

Jet

Airways19.0%

COMPETITION ANALYSIS

Jetlite7.2%

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Kingfisher vs jet airways

It is one of the latest airlinesin india

It is the experienced airlinesin india

Overall growth in year 2008-09 is 37%

Overall growth in year 2008-09is 16%

Acquired 46% share in airdeccan

It acquired air sahara in 2006

It was awarded the best newairline of the year award

Had won double honour traveltrade gazette travel award

Already have trainingacademy

Planning to start trainingacademy

Personal in flightentertainment in every seat

Average entertainmentservices

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SWOT ANALYSISSTRENGTHS WEAKNESS

Large fleets (over 400) and firstairline to bring airbus to India.

Huge debts.

Quality service and adequate

infrastructure. (The only 5star

rating airline of India by skytrax).

High overheads and huge workforce

resulting in lower output.

Air cargo service to metros and big

cities(Deccan 360)

High ticketing price

OPPORTUNITIES THREATS

The untapped domestic market. Fuel price hike.

Growing international market. New and strict laws in the aviation sector

by government.

The expanding tourism industry. Debt laden company.

Increasing demand for air cargoservice.

Competitors.


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WHERE WE WANTTO BE?

(OBJECTIVES)

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TOWS MATRIX


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Large fleets

Quality service andadequate

infrastructure.Air cargo service to

metro and bigcities

High overheads andhuge workforce

High ticket pricing

OPPORTUNITIES

Untapped domesticmarket

Increasing demandfor air cargo

SO STRATEGIES

With the help ofexisting large fleetsit may tap thedomestic market

Expansion of aircargo

WO STRATEGIES

It may capture theuntapped domesticmarket with its overworkforce

THREATS

Seat is empty revenueis gone forever.New and strict laws ofgovernment

ST STRATEGIES

large fleets, adequateinfrastructure andinnovative package, itmay compete well

WT STRATEGIES

Emphasis on services.

STRENGHTS WEAKNESSES


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STP

SEGMENTATION

REGION

INCOME LIFESTYLE

ATTITUDE TOWARDS PRODUCT

BENEFITS LOYALTY STATUS

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TARGETING

Higher income group

Upper middle class

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POSITIONING

Lifestyle

Benefit

Quality

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ANSOFF MATRIX

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HOW WILL WE GET

THERE?(STRATEGIES)

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7 PS ANALYSIS

Product: Giving the feel of the product inside the

service wrapper

Consumers are demanding not the product orfeatures of the products but the benefits theywill be offered

The airline product consist of two types of

services:

on the ground services

in flight services24


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Price: Premium pricing: use a high price where there is a uniqueness about the

product or service. Such price are charge for service.

Cheap value pricing: this approach is used where external factors suchas recession or increased competition force company to provide valueproducts or services to retain sales

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Promotion: Events & advertisements Multiple touch points & finer

promotional

Services working for the promotional

activities.

Frequent flyer programs are carriedout.

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PLACE:

Services ranges from Ahmadabad to

Agartala & to the major cities suchas Delhi, Bangalore, & Chennai etc.

The main strategy that kingfisher

follows is to target the metro citiesor the tier 1 cities in India

On line 24 hr reservation system

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Physical evidence: Exclusive lounge space

Gourmet cuisine world class cabin crew

5 trendy video- Fun TV

10 music stations Kingfisher Radio .

PEOPLE: Reliability

Caring attitude

goodwill

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Process

Resevation

Flight information

Facilities at the airport

Baggage handling

Meal service

Flight entertainment

Deliver quality service

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BRANDING

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Movieassociationsand in-filmbranding

Events

Cabin crew with Delhi Events:women conferenceCM at marathon with Cherie Blair

OUTDOORBRANDING


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MARCOM STRATEGIESMedium Scope

Advertising Awareness , attitude

Direct marketing Retention

Public relation Credibility , reputation


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CONCLUSION


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CONCLUSION

AIR Travel remains a large n growingindustry. It facilitates economicgrowth, world trade, international

investment n tourism n is thereforecentral to the globalization takingplace in many other industries.

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Thank You

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Any Questions??

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ion on Kingfisher Airlines

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