Brand ManagementUB Group’s Extension into Kingfisher Airlines

AnamikaPGP30-183Section A

Initial Years

Founded in 2003 and started operations in May 2005 by India’s biggest liquor baron, Mr. Vijay Mallya

Started as a wholly-owned subsidiary of United Breweries Group

Entered the market when Indian Aviation Industry saw the outbreak of low cost carriers

First and only Indian Airline to order the Airbus A380 and ordered 15 Airbus Aircrafts in a deal valued at $3 billion

Ended operations in 2012, and license revoked in 2013

Brand Building

• Established as a luxury airline – one of the finest in India• Introduced a number of innovations and market-firsts

to redefine the experience of flying

• Elevated consumers to the level of “guests” and endeared itselftowards them

• First Airline to introduce in-flight entertainment system on domestic flights - live TV entertainment, headphones.

Brand Extension

Parent Brand• One of the largest conglomerates in India• Largest Indian manufacturer of beverage alcohol• Annual Sales of $4 billion and market capitalization of $12 billion

The Airline Industry

• Indian scheduled airlines carried 67.73 million passengers in 2014 compared to 61.42 million in 2013• Air traffic grew between 20 to 40 percent since 2003, and projected operating profits for 2016 is $1.29 billion

Market share of Kingfisher in 2012 before it ended operations – 5%

• Kingfisher had flown 11.26 million passengers and captured a 27.6 percent market share in 2008

• In May 2009, Kingfisher had the highest market share in the industry

• But due to the financial issues It faced, the markets share came down to as low as 5 and later 3 percent in 2012

The thought behind becoming the largest airline carrier

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