INDIAN INSTITUTE OF FINANCIAL

MANAGEMENT, INDORE

Marketing
Plan of
Kingfisher
Airlines

Submitted To:- Submitted By:-

Prof. PrakherSharma Ankit Agrawal
Devendra Thakur
 Airline Industry in India
• One of the fastest Growing Aviation market.
• There are approximately 1 billion people & only about 0.05% of
them fly.
• More and more middle class families now prefer Air Travel to
Traditional Rail travel.
• The Indian Travel market is expected to triple to $51 billion by
2011 from 16.3 billion in 2005-06.
• AAI totally manages 127 airports
 - includes 13 International airports;
 - 7 custom Airports;
 - 80 Domestic airports;
 - 28 Civil enclaves.
• Over 1100 registered aircrafts.
• By 2020, Indian airports are estimated to handle 100 million
passengers including 60 million domestic passengers.
• The amount of cargo handled will fall in the range of 3.4 million
tones
 History of Indian Airlines
• 1911 First Commercial flight Airmails from Allahabad to
Naini(10 km)
• 1932 The Aviation Department of Tata Sons ltd. established
• 1938 Tata Airlines(successor to Aviation division of Tata Son)
• 1946 Tata Air Lines converted into a public Company and
 renamed as Air India Limited
• 1948 Air India International incorporated
• 1953 Nationalization of Aircraft Industry
 Air India(serving the international sectors)
 Indian Airlines(serving domestic sectors)
 Deccan Airways, Airways India, Bharat Airways,
 Himalayan Aviation, Kalinga Airlines, Indian National
 Airways and Air Services of India
• 1986 Private Sector Players permitted as Air Taxi operators
 Players including Jet, Air Sahara, NEPC, East West,
 Modiluft, etc started service

• 1990 Open sky policy
• 1994 Private Carriers permitted to operate scheduled services
• 2003 Entry of low-cost carriers
• 2007 Merger of Indian Airlines into Air India
 Acquisition of Air Sahara by Jet Airways
• 2008 Kingfisher acquired 49% stake in Deccan Aviation
•
 Regulatory Authorities
 Ministry of Civil Aviation
 Responsible for the formulation of policy, development
and regulation of Civil Aviation. Its functions also extend
to overseeing airport facilities, air traffic services and
carriage of passengers and goods by air.

 Other Attached/Autonomous Organizations:
 Directorate General of Civil Aviation (DGCA)
 Promote safe and efficient Air Transportation through
regulation and proactive safety oversight system

 Bureau of Civil Aviation Security (BCAS)
 Regulatory authority for civil aviation security in India

 Airport Authority of India (AAI)
 Accelerate the integrated development, expansion and
modernization of the operational, terminal and cargo
 Major Players
•
• Spice Jet Air India
•
•
• Indigo Go Airways
•
•
• Jagson Airlines Alliance Air


•
• Jet Airways KingFisher
 United Breweries(UB) Group
• The UB Group is known as a large USD 2.2 billion corporate
conglomerate with business interests ranging from spirits,
engineering, fertilizers and civil aviation to pharmaceuticals.
• They constitute a large global group based in India and
associate with world leaders in order to adopt technologies
and processes, which will enable a leadership position in a
large spectrum of activities. UB Group is an employer of
choice for aspiring professionals who like challenges no
matter what the field or function.
• We endeavour to be the most preferred employer wherever we
operate.
• The Business of UB Group are:-
 1. International trading
 2. Fertilizers
 3. Beverage Alcohol
 4. Engineering
 5. Aviation

Kingfisher Airlines
• Dr Vijay Mallya is the
Chairman and CEO of
Kingfisher Airlines.
• Kingfisher Airlines Limited
launched scheduled airline
services on May 9, 2005
with 4 daily flights.
• Head Quartered at
Bengaluru.
• There are tools for mood
lighting such as web chat,
inseat plugins for music,
liveTV with 16 channels on
each seat.
• 100 percent E-ticket airline.
  B o a rd M e m b e rs
• Dr. Vijay Mallya, Chairman & CEO
• Capt. G. R. Gopinath, Vice Chairman
• Capt. K.J. Samuel
• Mr. A.K. Ravi Nedungadi
• Mr. Vijay Amritraj
• Mr. Anil Kumar Ganguly
• Mr. Piyush G. Mankad
• Dr. Naresh Trehan
• Diwan Arun Nanda
• Mr. Ghyanendra Nath Bajpai
• Mr. N. Srivatsa, Company Secretary
• Mr. A. Raghunathan Chief Financial Officer
•
 Vision

 “The Kingfisher Airlines family

will consistently deliver a safe,
value-based and enjoyable travel
experience to all our guests.”
 OUR VALUES
• Safety
This is our overriding value. In our line of business, there is
no compromise.
• Service
We are all in the hospitality business; we must always seek
to serve our guests and gain their trust, goodwill and loyalty.
• Happiness
We seek to build an organisation with people who choose to
be happy, and will endeavour to influence our guests and co-
workers to be happy too.
• Teamwork
We will succeed or fail as a team. Each one of us must
respect our colleagues regardless of their rank, and we must
work together to ensure our mutual success.
• Accountability
Each one of us will be held accountable for the successful
execution of our duties, commitments and obligations, and
we will strive to lead by example.
•
 STP Analysis
• Segmentation:
Ø Geographic Segmentation-
• Secondary Hubs- Mumbai, Delhi & Kolkatta.
• Focus Cities- Cochin, Pune, Ahmedabad,
Hydrabad, Indore, Jaipur & many more.
• International Destinations- London, Colombo,
Dubai, Singapore, Bangkok, Dhaka, Hog
Kong, Kuala Lumpur & Maldives.
Ø Demographic Segmentation-
• Gender- both Male & Female
• Social Classes- Age group from 25 to 45 years.
• Income Level- Higher and Higher-Middle
Income group.
•
• Targeting:
Ø Kingfisher First Class- company executives
Ø Kingfisher Class- Middle, Upper-Middle, Lower-
Upper segment.
• Positioning:
Ø Lifestyle-
• Funliners Experience, Designer Interiors
Ø Benefits-
• last time booking facilities, refund in case of
 cancellation, In-flight Entertainments and many
more
Ø Quality-
• World class service provider, comfortable seats,
etc
 PESTEL Analysis
 Political Regulators:
• Directorate General of Civil Aviation(DGCA)
 - controls flying Licenses, pilots, certifying aircrafts and
procedures to govern airports & airspace.
• Airport Authority of India(AAI)
- Assigned the responsibility of managing National and
International airports and administration through Air
Traffic Control(ATC).
• FDI ceiling in Airlines sector is 49% currently.
• FDI limits:
 - 100% for Greenfield airports
 - 74% for the existing airports
 - 100% for NRI’s.
Economic Factors


• Contribution to the Indian Economy

• Rising cost of fuel
• Investment in the sector of Aviation.
• The growth of middle income group family affects the Aviation
sector
• Shortage of Infrastructure capacity


Social Factors
• Development of cities leads to better services and airports
• Employment opportunities
• Safety regulations
•
Technological Factors

• The growth of e-commerce and e-ticketing

• Mobile and online check-in
• Modernization and privatization of airports.
• Upgradation of ATC.
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


• Airlines acquisitions and the leasing cost

• Government policy to not allow the creation of airports closer
than 150km from each other like Bangaluru and Hyderabad
old airports were closed down when the new ones were
started.
 S . W . O . T . A n a ly sis



Strengths Weaknesses

First airline with full new fleet of aircraft Service delivery to metros
and other big cities
 Quality hospitality provided to customers Yet not in profit
 Route Rationalization High ticket pricing
 Already have Training Academy Facing a tough competition from
competitors.

Quality and continuous Innovation



Opportunities Threats

Under Penetrated Domestic market Existing Operators
 International market Infrastructure issue
 Untapped Air Cargo market Fuel Price hike
 Expanding Tourism Industry Low Profit Margin
4 P’s… Marketing Mix
• Product
Ø Fleet Size
 Airbus A319- 3no.
 Airbus A320- 25no.
 Airbus A321- 8no.
 Airbus A330- 5no.
 ATR 42- 6no.
 ATR 72- 27no.


Ø International Foray
 - Started business from 3rd September, 2008
• Promotion
Ø Advertisements-
 Hoardings, Brand Ambassadors.
Ø Magazine and Newspaper ads-
 Business Outlook, The Economic Times, etc.
Ø Exposure at non-corporate event-
 Sponsorships at Tournaments, etc.
Ø Participation in International Air-shows
Ø Endorsing Celebrities like Katrina Kaif, Yana Gupta
& Deepika Padukone


• Price
Ø Penetrated Pricing Strategy
Ø Economic & club premiere fare
Ø Discounted fare for Senior Citizen & Defense
Personnel.
Ø US$ Fare & Visit India fare
Ø Night Saver fares

 C o m p e titiv e P re ssu re
Service

Low cost
Carriers
changing the
game

Indig
o

Price
• Place
Ø Online Booking - flykingfisher.com, Yatra.com,
MakeMyTrip.com, ezeego1.com
Ø Payments- Credit Cards & Debit Cards
Ø Detail & Information- SMS / Call
Ø Outlets in every major city and at every airport
across the country.
Ø Covers even the toughest terrains in the country,
and the services ranges from Ahmadabad to
Agartala and to the major cities such as Delhi,
Bangalore, and Chennai etc.
Market Share
  
PORTER’s Five FORCE Model


Threat from new Entrants (Virgin Atlantic, Qantas Airways)

Bargaining Power of Customer

aining Power
Threat
of Suppliers Eonomic
from Competition(Jet Airways, Airway India & demographic
, Indigo ) chang
Increasing awareness
Exposure to global brands


Threat from Other modes of transports- Railway, Roadways, Waterways


 Problem Identification
• Current Indian scenario: Air travel
Ø For majority of people preference-No frills – low cost
airlines


• Three unique classes of service :–

Ø Kingfisher First (Business class)
Ø Kingfisher Class (Premium economy)
Ø Kingfisher Red (Low fare)


• Current segmentation based on social class & income level

Ø Social classes: which use full carrier services and those
which use first class services of the railways
Ø Income level: Low cost carrier for those who travel by
first class railway


• Problem with positioning

Ø Brand relates to Lifestyle
 Suggestions
• Remove the flights from low frequency routes.
• Reduce the labor cost.
• Simplify the flight operations.
• Increase Revenue-per-passenger.
• Try to focus on smaller aircrafts(50-70 seaters) and fuel
efficient planes for short distance.
• For a long term strategy, Internationally focus should be
done so to cater the International market also.
• Different modes of pricing should be taken care of.
•
•
 Kingfisher - 5 Star Airline

Kingfisher is one of only six airlines in the

world to have a five - star rating from Skytrax ,
along with Asiana Airlines , Malaysia Airlines ,
Qatar Airways , Singapore Airlines and Cathay
Pacific Airways .
 Awards

Kingfisher Airlines has received 30 awards for

innovation , customer responsiveness and was voted
the Best New Airline of the Year within months of
its launch .
 References

• Webliography:-
 i. Kingfisher Airlines official site
 ii. Google
 iii. Slideshare.net


• Bibliography
 i. Phillip Kotler
 Thank You

The Kingfisher
AIRLINES
The king of good times