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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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