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INDIAN INSTITUTE OF FINANCIAL MANAGEMENT, INDORESubmitted To:-Submitted By:- Prof. Prakher Sharma Ankit AgrawalDevendra Thakur

Marketing Plan of Kingfisher AirlinesAirline Industry in IndiaOne 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 per annum.

History of Indian Airlines1911 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 Limited1948 Air India International incorporated1953 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 India1986 Private Sector Players permitted as Air Taxi operators Players including Jet, Air Sahara, NEPC, East West, Modiluft, etc started service

1990 Open sky policy1994 Private Carriers permitted to operate scheduled services2003 Entry of low-cost carriers2007 Merger of Indian Airlines into Air India Acquisition of Air Sahara by Jet Airways2008 Kingfisher acquired 49% stake in Deccan Aviation

Regulatory AuthoritiesMinistry of Civil AviationResponsible 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 facilities at the airports.

Major PlayersSpice JetAir India

IndigoGo Airways

Jagson AirlinesAlliance Air

Jet AirwaysKingFisher

United Breweries(UB) GroupThe 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 trading2. Fertilizers3. Beverage Alcohol4. Engineering5. Aviation

Kingfisher AirlinesDr 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.

Board MembersDr. Vijay Mallya, Chairman & CEOCapt. G. R. Gopinath, Vice ChairmanCapt. K.J. SamuelMr. A.K. Ravi Nedungadi Mr. Vijay AmritrajMr. Anil Kumar GangulyMr. Piyush G. MankadDr. Naresh TrehanDiwan Arun NandaMr. Ghyanendra Nath BajpaiMr. N. Srivatsa, Company SecretaryMr. A. Raghunathan Chief Financial Officer

VisionThe Kingfisher Airlines family will consistently deliver a safe, value-based and enjoyable travel experience to all our guests.

10Our ValuesSafetyThis is our overriding value. In our line of business, there is no compromise.ServiceWe are all in the hospitality business; we must always seek to serve our guests and gain their trust, goodwill and loyalty.HappinessWe 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.TeamworkWe 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.AccountabilityEach 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 AnalysisSegmentation: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.Demographic Segmentation-Gender- both Male & FemaleSocial Classes- Age group from 25 to 45 years.Income Level- Higher and Higher-Middle Income group.

Targeting:Kingfisher First Class- company executivesKingfisher Class- Middle, Upper-Middle, Lower-Upper segment.

Positioning:Lifestyle- Funliners Experience, Designer InteriorsBenefits- last time booking facilities, refund in case ofcancellation, In-flight Entertainments and many moreQuality- World class service provider, comfortable seats, etc

PESTEL AnalysisPolitical 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 NRIs.

Economic FactorsContribution to the Indian EconomyRising cost of fuelInvestment in the sector of Aviation.The growth of middle income group family affects the Aviation sectorShortage of Infrastructure capacity

Social FactorsDevelopment of cities leads to better services and airportsEmployment opportunitiesSafety regulations

Technological FactorsThe growth of e-commerce and e-ticketingMobile and online check-inModernization and privatization of airports.Upgradation of ATC.

Environmental FactorsThe increase in the global warmingThe sudden and unexpected behavior of the atmosphere and the dependency on whetherShortage of the infrastructural capacityTourism saturation

Legal FactorsAirlines acquisitions and the leasing costGovernment 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. AnalysisStrengthsWeaknesses First airline with full new fleet of aircraft Service delivery to metros and other big cities Quality hospitality provided to customersYet not in profit Route RationalizationHigh ticket pricing Already have Training AcademyFacing a tough competition from competitors. Quality and continuous Innovation

OpportunitiesThreatsUnder Penetrated Domestic marketExisting Operators International marketInfrastructure issue Untapped Air Cargo marketFuel Price hikeExpanding Tourism Industry Low Profit Margin

174 Ps Marketing Mix

ProductFleet SizeAirbus A319- 3no. Airbus A320- 25no.Airbus A321- 8no.Airbus A330- 5no.ATR 42- 6no.ATR 72- 27no.

International Foray- Started business from 3rd September, 2008

PromotionAdvertisements-Hoardings, Brand Ambassadors.Magazine and Newspaper ads-Business Outlook, The Economic Times, etc.Exposure at non-corporate event-Sponsorships at Tournaments, etc.Participation in International Air-showsEndorsing Celebrities like Katrina Kaif, Yana Gupta & Deepika Padukone

PricePenetrated Pricing StrategyEconomic & club premiere fareDiscounted fare for Senior Citizen & Defense Personnel.US$ Fare & Visit India fareNight Saver fares

Competitive PressureService

Price

Low cost Carriers changing the gameIndigo

PlaceOnline Booking - flykingfisher.com, Yatra.com, MakeMyTrip.com, ezeego1.comPayments- Credit Cards & Debit CardsDetail & Information- SMS / CallOutlets in every major city and at every airport across the country.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.

23Market Share

24PORTERs Five FORCE Model

Bargaining Power of SuppliersThreat from new Entrants (Virgin Atlantic, Qantas Airways)

Threat from Competition(Jet Airways, Airway India, Indigo)Threat from Other modes of transports- Railway, Roadways, Waterways

Bargaining Power of CustomersEonomic & demographic changesIncreasing awarenessExposure to global brands

Problem IdentificationCurrent Indian scenario: Air travelFor majority of people preference-No frills low cost airlines

Threeunique classes of service : Kingfisher First (Business class) Kingfisher Class (Premium economy) Kingfisher Red (Low fare)

Current segmentation based on social class & income level Social classes: which use full carrier services and those which use first class services of the railways Income level: Low cost carrier for those who travel by first class railway

Problem with positioningBrand relates to Lifestyle

SuggestionsRemove 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.

ReferencesWebliography:-i. Kingfisher Airlines official siteii. Googleiii. Slideshare.net

Bibliographyi. Phillip Kotler

The Kingfisher AIRLINESThe king of good times

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