Marketing Case Study For Kingfisher Airlines Tourism Essay

The instance deliberates the selling scheme of Kingfisher Airlines which launched its domestic commercial operations in May 2005. Kingfisher air hoses were put forwarded by United Breweries Group and tagged as a budget bearer that came up with a individual category known as ‘Kingfisher Class ‘ . KFA fruitfully influenced the vibrant image of its Kingfisher Beer trade name and entitled its air hoses as ‘Funliners ‘ and high spots the pleasant experience. In the domestic air market, KFA managed its place and its market portion. It besides had programs to transport out on international paths. The competition started constructing up in the Indian air power market by low air hoses like Air Deccan, GoAir, SpiceJet and Jet Airways. As KFA is a non a net income devising administration and in order to last in the market, it adapted its ‘single category ‘ way and planned to offer a concern category service and low budget service – ‘Kingfisher First ‘ and ‘Kingfisher Red ‘ . The instance reveals Kingfisher Airlines selling capablenesss, selling schemes, its wider environment and its endurance as the stylish and the fittest King.

Cardinal words:

Aviation Industry, Kingfisher Airlines, Marketing, Air Deccan, United Breweries Group, Jet airways, Brand Positioning and Extension,

Aviation Industry:

As outlined by Mc Kinsey Quarterly ( 2005 ) , the universe ‘s 2nd largest commercial aircraft market is the Indian Aircraft market. The beginning of civil air power in India goes back to December 1912 when the first domestic air path was opened between Delhi and Karachi by Indian State Air Services ( in partnership with Imperial Airways of the United Kingdom ) . Initially in 1950 ‘s, major air hoses in state were amalgamated into either Indian Airlines or Air India but in the ulterior half by the good value of the Air Corporations Act 1953, this continued for the long period. In 1991, the Indian Government brought in the Open Skies Policy after which the Indian skies were full of chances for the private air hoses. “ The Indian air hose industry has boomed by 400 per centum in a really short period of about 6.5 old ages ” ( Mr. Praful Patel, Union Civil Aviation Minister ) ( www.ibef.org ) .

Kingfisher – Flying the Good Timess:

Kingfisher Airlines is an air hose based in Bangalore, India. Kingfisher Airlines ( KFA ) , a entirely owned aide of United Breweries Holding Limited of the UB group promoted by Dr. Vijay Mallya, who took up its first aircraft- an A320 from airbus on April 25, 2005 at a particular service in Toulouse, France. ( www.icmrindia.org ) . On May 7th 2005, Kingfisher became the first and merely Indian Airline to originate its operations with all new aircrafts like Airbus A320, A319-100 and ATR-72. The success of KFA is carried by an of import lesson: ‘Do your prep ‘ , Mallya and his working party knew that the upcoming would be tough and unsmooth when the determination to come into the air power industry was taken in 2004. At the launch of the air hose Dr Vijay Mallya said “ We are committed to accomplishing our aspiration of doing Kingfisher Airlines India ‘s largest private air hose both in capacity and market portion by 2010 ” . ( www.theubgroup.com ) . It is a major air hose which operates 400 flights in a twenty-four hours and has a web to 37 finishs with programs for both domestic every bit good as international services with 2 different fleets known has Kingfisher First and Kingfisher Class ( www.theubgroup.com ) . . Though Kingfisher is named as ‘class-in-itself air hose ‘ , it does non know apart between the first and economic system category. Kingfisher will non be divided into any sections but will hold merely one category, and that is Kingfisher Class. ( Mallya, 2005 ) .

KFA came up with a new aircraft called A320 where the cockpit was a paperless environment. It is known as ‘Kingfisher Funliners ‘ , as the staff wished to supply its clients fun filled experience on board. It is an lone Indian private air hose to hold introduced in-cabin amusement system with personal picture screen for each place which includes 16 unrecorded sound and 5 picture channels with individualized headset offering assorted attractive services which is one of the alone merchandises being provided to the Indian consumers. It has got a fashionable ruddy insides, uniformly dressed cabin crews and cabin staff. These fleets are extremely priced compared to that of its chief rival Jet Airways. KFA soon holds the position of India ‘s largest air hose in order to run into client demands by supplying universe category comfortss. KFA is one of the top most air hoses to hold a five star evaluation from Skytrax, the universe ‘s prima independent research and quality rating organic structure for airliners and won several esteemed awards ( www.bookrags.com ) . It carried more than one million riders which are recorded as the highest market portion among air hoses in India in 2009. In civil air power industry, Kingfisher Airlines has carved a place for itself and has proved to be a stiff rival for other domestic air hoses in India.

KFA placed itself as a budget bearer and non as a low cost bearer. The company offers considerate strategies like supplying costs lower than economic system category travel with full service and somewhat more than the ‘bus services ‘ type low cost competition. The Kingfisher trade name image and good will will be reflected by the type of service provided to its clients. Within the six months of its constitution, it managed to cover around six per centum of its market portion, which bit by bit rose to 7.6 per centum in 2006 and it peaked to 19.1 per centum in 2010. In relation to other air hoses, Kingfisher stands at the 2nd place as Jet Airways is positioned of keeping 26.2 per centum market portion, whereas Air India with 17.1 per centum, Indigo with 17.3 per centum and SpiceJet with 13.3 per centum ( www.hindustantimes.com ) . KFA won the ‘Best New Airline of the Year 2005 ‘ award in the Asia Pacific and Middle East part from the Centre for Asia Pacific Aviation and on having this esteemed award Mallya said, “ Kingfisher Airlines has grown at a searing gait and we intend to go on to please and featherbed our invitees and offer them alone degrees of service, comfort, and convenience to guarantee that they keep winging the good times! ” . Kingfisher has ordered 5 Airbus A380 the largest airliner in the universe, 30 more A320, 20 ATR 72-500, a trade deserving $ billion doing one of its biggest strength in the Indian air power industry. With 8 international finishs, Kingfisher Airlines has grown unusually and has set looming criterions in footings of merchandises and services with a dream to persistently present worthy, safe and gratifying experience to all its frequenters.

It was besides voted as the 3rd most successful trade name launch in the Business Standard one-year Brand Derby in the twelvemonth 2005. After being awarded by Skytrax for ‘Service Excellence for a New Airline ‘ in the twelvemonth 2006, the competition in the Indian skies was constructing up. Due to Open Sky Policy, low cost bearers like Spice Jet and GoAir came into the market after the launch of Kingfisher Airlines and they started cutting down on menus. By these air hoses, even the cardinal participants like Jet Airways, Jet Airways ( India ) Ltd. , looked to unify their market places. Jet Airways declared that it would acquire keep off Air Sahara for US $ 500million in January 2006. This skill of Sahara would do Jet Airways largest air hose with an about 45 % market portion and was besides likely to spread out over Sahara ‘s 22 parking bays spread from corner to corner. The merger of these brought down their air menus to vie against Kingfisher, Spice Jet, GoAir and Air Deccan. In order to last in cut-throat competition, KFA acquired Air Deccan for Rs. 550 crore in twelvemonth 2007. The meeting of Kingfisher and Air Deccan proved to be a best tantrum in the market but these participants are a survey in contrast as Kingfisher is for categories and Air Deccan is known for multitudes. Kingfisher is known to shower its clients with its best of services and supply comfort whereas Deccan would even desire its clients to pay even for the H2O. After the fusion with the Kingfisher air hoses, the budget air hose was branded as Kingfisher Red. Just like its precursor Air Deccan, Kingfisher Red besides carried on the pattern of offering inexpensive air tickets to its invitees. Kingfisher Red called has value for money ; covers around 58 domestic finishs where the invitees are served free repasts and imbibing H2O bottles. The duties of kingfisher ruddy are really existent, when a invitee considers its complete service. The Kingfisher Red marketed its low menus with every bit low as Indian railroads with a comfy journey. The trade name of kingfisher besides provided its universe category installations of goods and services to its new air hoses. With India being the universe s one of the most populated country and largest and successful democracy, Kingfisher Red playing an of import function in Indian air power industry in which finishs and agendas non counting much because of its inexpensive pricing scheme, doing the invitees travel to any domestic finishs at any point of clip accommodating the travel demand.

As stated by Kevin Lane Keller ( 2008 ) , because of certain schemes and favorable promotion or word of oral cavity trade name becomes known for supplying extraordinary client services. But in the instance of Kingfisher air hoses, its proprietor Dr. Mallya himself is a trade name image for the company. His showy image and manner itself creates a repute and value makes an impact on the heads of the clients. Kingfisher promoted itself through broad scope of media and doing its presence in upmarket shops like Shopper ‘s Stop and Westside. It besides carved its trade name image globally through mostly esteemed watched athleticss like Formula 1 team- Force One India, Indian Premier League- Royal Challengers Bangalore, Kingfisher Polo squad. KFA offers quality service to its invitees with a personal gentleman to help in luggage handling and embarkation, refreshment sofas, sleeper seats with stretchy footstools and three types of assorted cognoscente nutrients. Kingfisher air hoses besides offer personal curative massage place labeling it has ‘Live Life King Size ‘ . KFA besides offers particular menus for all work forces of armed functionaries, brotherhood and province authorities in the state. Kingfisher Airlines spouses with prima international air hoses, recognition cards, luxury and concern hotels, telecommunication companies, fiscal establishments, lifestyle trade names and insurance companies in the signifier of King nine. Recently awarded the best plan of the twelvemonth by the Middle East and Asia/Oceania part by the Frequent Traveller Awards, King Club- ‘The Everyday Flyer Programme ‘ proposes its members to an uncomparable degree of gaining and to deliver benefits. It is programme which is more piquant and delighting that offers the members to bask a broad scope of elect rights and benefits in 4 grades of rank degrees such has King Platinum, King Gold, King Silver and King Red. The different benefits of King nine member are free allowance to excessive of luggage, responsibility free in-flight shopping, precedence board-in and check-in, surplus to sofas, etc. Kingfisher air hoses pledge for good times and larger than life trade name image have facilitated them to wing higher. The air hose addresses its clients as ‘Guests ‘ alternatively of riders. KFA came up with a absorbing selling line “ Fly the good times ” and it replicated in the experience the air hose offered to its ‘Guests ‘ .

Kingfisher air hoses face a tough competition from Jet Airways ( India ) every bit good as from the international air hoses. It ‘s been long since Jet Airways is in the market ; Jet has first-class act uponing accomplishments and capableness to leverage dealingss within the authorities. Jet has built a professional administration and has a gigantic pool of dependable clients and employees. Kingfisher air hose being a new entrant in the market is yet to construct a strong basis and has non been able to prolong the abrasion of employees. Due to tire, nerve-racking occupation and bad human resource policies many cabin crew and air hostesses have quit in KFA which is the biggest menace for the air hoses. Kingfisher Airlines is still no a net income devising organisation, has been confronting heavy fiscal losingss because of hiking in fuel monetary values, proficient issues and economic lag. Because of rise in fuel monetary values, it has made the KFA to increase the monetary values of domestic tickets somewhat. Among its major aircraft, 12 Airbus 320 were grounded due to engine jobs doing the air hoses suffer a loss. The air hose industry was besides affected by the monetary values of Aviation Turban Fuel ( ATF ) and by the over-crowded airdromes like Mumbai and Delhi. In such a blood thirsty environment, Kingfisher aspired of going largest private bearer of India by 2010. Media draws that Kingfisher formulated a program to establish a low cost bearer called ‘Kingfisher Express ‘ to crush up the LCC understanding. In order to run intoing the environmental force per unit areas, Kingfisher Airlines has ordered 5 new Airbus A380 known as a “ green giant ” , which are fuel efficient and are lower noises. It will besides convey in the rider comfort.

Questions:

Measure the state of affairs analysis of Kingfisher Airlines.

In order to take with the state of affairs analysis of the Kingfisher Airlines the SWOT and PEST analysis is applied. Harmonizing to Piercy and Giles ( 2007 ) , SWOT analysis is the realistic and the most common tool for strategic planning. With the aid of SWOT analysis, company ‘s strategic place, company ‘s strengths and failings, chances and menaces can be evaluated easy and this analysis besides links to market cleavage ( Abel and Hammond, 1979 ) . With the purpose of acquiring familiar to general environment, PEST analysis is the efficient tool. It helps the organisation to happen the tendencies and helps to happen the manner into the cut – pharynx competitory environment ( Henry, 2008 ) . The biggest strength of Kingfisher Airlines is the fact that it provides quality services to its clients and it holds a strong trade name image and repute in heads of clients. In add-on to this, it is the first air hose to hold so many new fleets of airbuses. Besides these, it believes in quality criterions and invention. The company provides alone services to its clients and believes in keeping quality criterions by invention

On the contrary, Kingfisher Airlines is yet non called as a net income devising organisation. It faces a tough competition from the rivals such as Jet Airways, Air India, Indigo and SpiceJet. It besides lacks service bringing to metros and international paths. It besides faces the high abrasion due to nerve-racking occupation and unpleasant human resource policies.

The fact that the Kingfisher Airlines is a largest Indian private bearer enables of spread outing touristry industry widely and can emerged into international market. The biggest menace for the administration is to pull off the market portion and survive in the market from its cardinal rivals. In add-on to this, it besides faces the hiking in the fuel monetary values and sums in increasing the monetary value of domestic tickets marginally.

Analyzing the general environment, political factors states that due to open sky policy non merely Kingfisher, but many other air hoses rushed into the air power industry. Harmonizing to new ( FDI ) class of action, Kingfisher Airlines besides surpassed the FDI ceiling of 49 per centum. Looking at economical factors, KFA has significantly contributed to an Indian economic system. It has to besides cover with the issues of high rise of fuel monetary values. The societal factors discusses about that the air hoses have helped in developing of metropoliss which leads to break services and airdromes and even holds the position symbol to its travel and alone services provided to its riders. Measuring technological facets, air hose industry has boomed up by the growing of air fining and e-commerce. It is besides developing green field airdromes with private sector, for illustration Airport Corporation limited in Bangalore. The orbiter based pilotage system has besides exploded many private bearers and the haste in the industry has increased.

We can reason stating that because of aggressive competition Kingfisher Airlines need to set on more attempts in order to be tagged as ‘Survival of the Fittest ‘ .

2 ) .To what widen the stigmatization of Kingfisher is successful?

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Mentions:

Book Rags [ online ] . Kingfisher Airlines. Available from: hypertext transfer protocol: //www.bookrags.com/wiki/Kingfisher_Airlines [ Accessed 22nd December 2010 ] .

iloveindia.com [ online ] . Airlines in India: Domestic Airlines: Kingfisher Airlines. Available from: hypertext transfer protocol: //www.iloveindia.com/airlines-in-india/domestic/kingfisher-airlines.html [ Accessed 22nd December 2010 ] .

UB Group, 2010. United Breweries Group ( UB Group ) [ on-line ] . Business: Aviation. Available from: hypertext transfer protocol: //www.theubgroup.com/business_aviation.aspx [ Accessed 26th December 2010 ] .

Das, M. , 2010. The Hindu Business Line: Kingfisher Airlines joins ‘one universe ‘ . Available from: hypertext transfer protocol: //www.blonnet.com/2010/06/08/stories/2010060851871800.htm [ Accessed 26th December 2010 ] .

Drypen. , 2010. Drypen: Selling: Kingfisher Airlines Marketing HR Financial Strategies. Available from: hypertext transfer protocol: //drypen.in/marketing/kingfisher-airlines-marketing-hr-financial-strategies.html [ Accessed 27th December 2010 ] .

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