Case study

Study the case and give your answers of the question with analysis.
Brand Kingfisher: Creating a Lifestyle Brand The United Breweries (UB) group today
(2008) boasts a diverse portfolio of businesses - alcoholic beverages, life-sciences,
engineering, aviation, agriculture, chemicals, information technology and leisure. The
man behind this potent diversity is none other than India's flamboyant tycoon Vijay
Mallya (Mallya). Mallya's association with the rich, trendy and the luxurious seems to
have rubbed off on his brands. All through his glitzy forays into various fields, Mallya
has fastidiously endorsed Brand `Kingfisher'. His entry into aviation with the
glamorous launch of Kingfisher Airlines drew a lot of its brand equity from Mallya
himself. Media reports often analyze how Mallya promotes the `Kingfisher' brand by
associating it with lifestyle events like horseracing, Formula 1 racing and prestigious
launches. Reflecting on how he contributes enormously to it through his own
flamboyant lifestyle, it is pertinent to probe into the prospects of Kingfisher's brand
extension. The Kingfisher brand has come to epitomize a lifestyle that encompasses
some of the finest things in life and is today synonymous with delivering a premium
experience.
- Vijay Mallya Brand Kingfisher
I am the brand ambassador; I am the `King of Good Times',said Mallya, the
brainchild of Kingfisher brand launched in the year 1980. Reports say that Mallya,
while working in Kolkata (Indian city in the eastern state of West Bengal), felt that
none of the existing beer brands Black Label, Kalyani, etc., were stimulating. Mallya,
wanting to create a vibrant brand, went back to Bangalore (Mallya's hometown),
rummaged through archives and stumbled upon an old label with a picture of
Kingfisher on it. That manifested the birth of the iconic brand Kingfisher (Exhibit I). At
an impressionable young age of 28, Mallya had become the chairman of UB,
following the demise of his father, Vittal Mallya in 1983. Young Mallya, who loved
good living and was crazy after fast cars, discos and planes, was criticized by many
as a `playboy'. In Mallya's own words, "My industry peers were in their 50's. I stuck
out like a sore thumb." Many were sceptical about Mallya's stewardship. Mallya,
however, in course of time, proved his cynics wrong. He endured the succession
dilemma and guided his empire to unimagined heights. By 2008, UB was a multinational conglomerate of over 60 companies with an annual turnover of over $1.2 bn.
Flamboyant CEOs have been known to endorse their brands from the front. Sir
Richard Branson and Steve Jobs are two famous names that may be recalled in this
context. Mallya, at the helm of UB, deems it right to lead his brand upfront by
leveraging his multifaceted persona. Mallya astutely judged that his involvement with
the rich and the trendy will eventually rub off on his brands (Exhibit I). His wealth is
stretched across the globe. He has over 25 dwellings around the world including
houses at Sausalito, Napa and Trump Plaza in New York, a castle in Scotland, and
at Monte Carlo, apart from homes in every major city in India. His antique racing cars
number more than 260 and are stored in 10 countries. He has two yachts in
California and a few in India. Among them is the famed `Kalizma' - a 165-foot
Edwardian yacht once owned by Richard Burton and Elizabeth Taylor and now
based in the Mediterranean; and a 187-foot yacht in Australia. He also owns a
Boeing 727 and a Gulf Stream jet. Mallya never loses an opportunity to lend his
wealthy locations to garner publicity for his brands.

Kingfisher is considered by many as a classic case of branding sensation which is

expressed as iconic and is equated to the Virgin brand. If one were to ask a young
Indian as to what `Kingfisher' is; the most likely answer would be Beer or Airline.
Kingfisher from the UB group stable is the largest selling beer brand in India. Though
UB is the market leader in India with a 40% market share, its flagship Kingfisher
brand alone commands 25% market share. The brand's advertisements epitomize
energy, youthfulness, enthusiasm and freedom, but with a touch of professionalism.
Outside India, Kingfisher is well known and is widely available in many European
countries, especially those with a large Indian ethnic population like the UK. The
Kingfisher beer brand has its presence in over 50 countries. Vijay Mallya - The Spirit
behind the Kingfisher Brand Though touted as the most flamboyant face of India Inc.,
there is much more beyond the `liquor baron' tag that Vijay Mallya is anxious to
shake off. It is unquestionable that Mallya was the Indian industrialist almost singly
responsible for positioning Indian liquor on the global map. As an NRI investor,
Mallya created waves in the Indian business community in the 1980s. In 1988, he
bought Berger Paints with 100% funding by HSBC, divested it for significant value in
1996 and founded a software company in the US in 1993, which was subsequently
listed on the NASDAQ in 1996. He also initiated the promotion and globalization of
brands from the UB stable; in particular, Kingfisher and McDowell. The Indian beer
brand, Kingfisher, was the first to foray into the international arena and made inroads
into the British market, so much so, that industry analysts say that "beers from the
Indian subcontinents are now firm favorites with British drinkers."

Mallya cleverly manipulates his sporting interests and hobbies to further his brands'
Popularity. An avid sports enthusiast, Mallya has won several titles, and endorses
and sponsors myriad sporting and cultural events. Renowned for his zest for good
life, Mallya lives up to his `King of Good Times' moniker and is legendary for
splurging his money in the public. He is seen as the epitome of a lavish lifestyle, with
parties on luxury yachts and good living in general. According to Mallya, "No point in
being in denial, I like to enjoy myself. It took time for the media to come to terms with
that. They started off calling me a playboy, and since then have used every adjective
except frivolous. The latest trend is to compare me with Richard Branson, but I am
not apologetic about how I live. I don't live off other people's money." Mallya made
his presence felt in various other arenas too. He revived the Indian Derby scene.
His horses have performed feats in nearly 200 Classics and he is the only Indian
Derby winner for more than four times. Mallya has however stayed absolutely clear
from backing any horse. The event is significantly titled Kingfisher Derby. In 2001, in
an unusual venture, UB Group acquired 51% stake in an ailing film magazine Cine
Blitz, from RIFA Publications. Following this, Mallya made major forays into the
entertainment arena. Mallya also hosted popular events like concerts by Sir Elton
John and the Rolling Stones. Around the same period, he toyed with film production his first film being directed by popular director Pamela Roux. All these forays gave
Mallya a platform to popularize his various brands. While theorists opine that
`marketing' is a serious business, Mallya counters that marketing is a CEO's
business. According to him, when a CEO takes interest in the brand and virtually
promotes the brand on every occasion, there is so much equity generated for the
brand. He always felt that the primary task for any CEO is to be passionate about the
brand. He takes the brand with him everywhere and his passion for the brand is
fittingly referred to as the major factor behind the rise of the Kingfisher brand. The
brand is so positioned that it directly talks to people who are easy going and chilled
out; who are always willing to take a break and party with friends and at the same
time are very professional and successful. Kingfisher's is a unique marketing story
because it prospered in a setting where liquor/beer advertising was prohibited by the
Indian government. Mallya personally built the brand, circumventing the interdict on
promotion. Marketing gurus consider Kingfisher as a brand that enjoyed a distinctive
marketing triumph, as it survived the onslaught of surrogate advertising critics. The
Issue of Surrogate Advertising "Considering the ill effects of cigarette, alcohol and
other intoxicants, the government has banned advertisements of these products in
the media. As a reaction, the liquor and tobacco majors have sought other ways of
advertising their products. They have introduced various other products with the

same brand name and carry out heavy advertising, so that consumers do not forget
their liquor brands," says the Indian Union Health minister, Anbumani Ramadoss.
The Union Health Ministry of India took a stern view of unbridled surrogate
advertising by the alcohol and cigarette industry in India and undertook surveillance
of the same with the help of the Information & Broadcasting (I&B) Ministry. In an
interview in January 2001 to DD National (the Government owned TV channel), the
I&B Minister Sushma Swaraj clarified what kind of surrogate advertising will be
allowed on television channels. She said, "Where a product is being manufactured
and a brand has been built around it by the liquor company, advertising for that
product will not be considered as surrogate advertising and will be permitted. Where
the product is not being manufactured in substantial quantities, it will be seen as
surrogate advertising and will be disallowed." The Minister quoted the example of the
UB group's Kingfisher beer, which also retails Kingfisher mineral water and said,
"Advertising for Kingfisher will be allowed. However, advertising for McDowell's
cricket bats and balls will be perceived as surrogate advertising." According to critics
of surrogate advertising, Vijay Mallya ventured into other businesses under the name
of Kingfisher to covertly promote his beer brand. Some even believe that the very
concept of having an airline was to promote Kingfisher beer. There have been
consistent protestations against surrogate advertising and the government has
imposed curbs on such ads on TV. The move has worried broadcasters and is likely
to spell a loss of INR 250 cr or more in TV ad spends. Many peeved broadcasters
however demand the definition of surrogate advertising. They questioned, "How do
you implement such bans or disprove legitimate brand extension? Does this mean
Kingfisher Airlines doesn't exist and can't advertise? Or that there is no Wills Lifestyle
stores? And will Sony not be allowed to air Indian Premier League (IPL) matches
featuring Royal Challengers (named after Royal Challenge, a liquor brand)?" Amidst
such developments, in 2003-04, Mallya had the brand logo undergo a makeover with
the Kingfisher bird flying (Annexure I). According to Mallya, the new logo reflects the
brand's vision to scale new heights and foray into fresh expanse. Kingfisher's Brand
Extension Mallya's significant extension of the Kingfisher brand was his incursion into
the aviation industry. The year 2005 saw the UB Group entering the airline business
with its Kingfisher Airlines. Although Mallya's original foray into airlines with the
launch of UB Air in 1990 did not take off, Mallya decided to capitalize on the striking
growth opportunities in the Indian airline industry through a second attempt. Noting
the phenomenal rise in per capita income among the burgeoning Indian middle class,
Mallya did some quick thinking. He engaged IMRB to assess a potential slot in the
aviation sector. The result recommended that there was a need for a trendy,
entertaining and a premium product. He decided to make the most of the notable
status of Kingfisher and focus on young business travelers. By leveraging the brand
equity of Kingfisher and the marketing skills of The UB Group, Kingfisher Airlines
Limited (KAL) was launched. We are building a sustainable business model in which
we cut costs where they can sensibly be cut, but we also offer a premium-class
product to the growing wealthy Indian," says Mallya. Mallya gave the KAL launch
wide publicity by scheduling it on his son's birthday on May 9, 2005 and throwing a
lavish party. Mallya opted for the premium route with four flights a day with one brand
new Airbus A-320 aircraft. "The aircraft and service will reflect the Kingfisher lifestyle
imagery and credibility that has been built over the years," Mallya said. His
competitively priced fares and quality service instantly helped attract customers.
According to Mallya, Kingfisher offers full service at true value and delivers an
unparalleled experience to the Indian air traveler. For the first time in India, Kingfisher
Airlines offered world-class in-flight entertainment with audio-visual screens for every
traveler. In addition, gourmet meals and cabin crew of international standards made
up a unique `Kingfisher Class guest experience'. The `guest experience' included
valet service at check-in, live in-flight satellite television, takeaway goody bags and
"the prettiest air hostesses in the sky".

Though Mallya is at the helm of a multibillion-dollar business empire, he sees his

additional role as chairman and chief executive of Kingfisher Airlines as a vital
responsibility. He micro-manages Kingfisher Airlines so persuasively that he not only
monitors aircraft turnaround and load factor data, but also flies Kingfisher regularly to
scrutinize service standards and is involved in practically everything from the choice
of staff uniforms to interviewing would-be employees. Meticulous attention is paid to
flight attendant interviews, with Mallya insisting the need to personally study every
future employee who will have contact with a `guest' to warrant stringent quality
continuance. According to Mallya, "But the airline, this is such a huge investment by
UB and it's so damn visible. If there is one wrong move in Kingfisher Airlines it could
spell disaster. I am aware of that. Once I am established and I have the reputation of
having an absolutely fine airline, then I can put this on autopilot too. Until then, this is
not something I take lightly." In fact, every time a Kingfisher flight takes off, the flight
manager reports directly to Mallya via SMS about the time of flight, number of
passengers, etc. In 1996, Kingfisher took up worldwide sponsorship of the West
Indies cricket team and Mallya was conscious to retain the stardom of Kingfisher
throughout the series. The West Indies team was projected as a fun loving but
thriving team, much akin to Kingfisher's image. The brand also cashed in on the
popularity of Indian cricketers Ajay Jadeja and Sourav Ganguly for brand promotion
during the 1996 World Cup. In contrast to brands like Pepsi, which focus only on
cricket, Kingfisher promotes many sports including football, formula racing and rugby.
Kingfisher has been observed to possess a 360 degree approach to brand
promotions utilizing all possible means to communicate with its target audience
(Annexure II). Mallya sponsors many glittering lifestyle events under the brand name.
Kingfisher beer is a widely known brand across the globe, and industry watchers
credit Mallya with having single handedly changed the image of his beer brand from
a commodity to a lifestyle brand. Kingfisher beer commands a lion's share of the beer
market in India and is sold in over 52 countries. Capitalizing on the popularity of the
brand, UB launched Kingfisher Packaged Mineral Water in 1999. Kingfisher hosts
some of the most colorful events of the fashion industry like the fashion awards,
model hunt and the swimsuit calendar. The Kingfisher calendar, which is very
popular for its exclusivity has attained a cult status within a few years of its launch. In
March 2007, the UB Group also conducted its first King-size Polo event in Mumbai
under the Kingfisher banner. The show flaunted the popular brand by the debut of
`Kingfisher First' Polo Team and a fashion show by popular designer Anna Singh and
many others. In 2007, NDTV, a popular Indian channel, joined hands with the
Kingfisher brand in a first of-its-kind media alliance for the promotion of a lifestyle
channel called `NDTV Good Times'. The channel targets an audience comprising
multi-ethnic, socially buoyant consumers who live in style and enjoy life to the hilt.
The assorted shows offered by this channel, touch upon a wide range of inspirational
lifestyle topics on health, fashion, food, travel, luxury and such others. Speaking on
the occasion of the channel's launch, Dr. Prannoy Roy, Chairman, NDTV Ltd., said,
"NDTV is proud to pioneer yet another step in Indian television history. Our new
offering, NDTV Good Times, will leverage the NDTV Group's proven programming
and broadcasting skills in partnership with the admirable lifestyle appeal of the
Kingfisher brand. The strength of the Kingfisher brand combined with NDTV's depth
will give our new lifestyle channel a distinct edge." To quote Vijay Mallya, "The NDTV
Good Times channel would leverage from the editorial credibility and quality of the
NDTV group and the strong lifestyle appeal of the Kingfisher brand and icon, to offer
Indian viewers a world-class television entertainment experience."
In April 2008, with the launch of the DLF-IPL cricket, Kingfisher Airlines became the
official umpire partner of the IPL for five years at INR 106 cr.Kingfisher sponsored all
third umpire decisions during the 59 matches in the IPL during 2008. "Kingfisher
Airlines has had a long association with a variety of sports at both the domestic and
international levels including tennis, Formula 1, polo and now cricket. Their decision

bears testimony to the fact that the DLF Indian Premier League is here to stay, and is
set to carve out a distinct niche for itself in the international cricket calendar," said
Lalit Modi, Chairman and Commissioner, DLF Indian Premier League. The
agreement authorized Kingfisher branding on the umpires' uniforms and hats during
the league matches and other opportunities around the property. Mallya declared
that his five-year association with the DLF-IPL was further demonstration of his
commitment to building the Kingfisher Airlines brand through sports. Mallya had the
foresight and vision to partner with a global sports event such as Toyota Formula 1
racing. Commenting on this, Mallya said, "Of all the available sponsorship
opportunities and platforms, Formula 1 is the most premium and the most visible
one. This association will naturally enhance the image of Kingfisher Airlines and
catapult it to a league of select and renowned international brands that typically
support Formula 1 initiatives. The shared values of Kingfisher Airlines and Formula 1
racing - a dedication to innovation, delighting viewers and guests, and commitment to
absolute excellence - are highly complementary." At the Grand Prix, the distinct `Fly
Kingfisher' insignia - which is now a recognizable brand in India and outside, will
feature prominently on the TF107 Formula 1 racing cars at events across the globe.
It will also be emblazoned on the drivers' helmets and overalls, and the available
corporate branding platform. John Howett, President, Toyota Motorsport said, "This
partnership is exciting news, not just for Panasonic Toyota Racing, but for Formula 1
in general. We hope this partnership will strengthen Formula 1's position in India and
bring Panasonic Toyota Racing to the people of India. We are grateful for the support
of an ambitious and successful brand like Kingfisher Airlines and we will help them
as they expand into an international operation." Mallya is a classic example of how
Asian CEOs can lead their brands by being the most vocal ambassadors of their
brands to build and sustain brand equity. Mallya has ingeniously cashed in on the
brand equity of his Kingfisher beer by using the same name and logo for his airlines
and other lifestyle products and events (Annexure III). Kingfisher beer in India was
the fourth biggest when he took over the company in 1983. At present, it is the
runaway leader, with not less than 45% market share. He appears in Kingfisher's ads
as the brand ambassador. Noted Indian journalist MJ Akbar, said, "The UB group
must have done a thousand ad campaigns, but there has not been a campaign better
than the life of Vijay Mallya." At the rear of all the glamour of swimsuits and fancy
parties, one cannot make light of the sound strategies that have built Kingfisher into a
super brand. Will the brand while maintaining international quality ensure that it is
within the reach of the Indian consumer? Can the lifestyle image so painstakingly
built survive in the long run?

Q1. A well-known business wants to develop itself online. Explain the growth of
Kingfisher with online marketing. What is your advice about kingfisher?
Q2. A company has found that its revenues are higher than ever, but the company is
still operating at a loss. Why is this explain in terms of Kingfisher?
Q3. Do SWOT/ PEST analysis and give solution to the problem Kingfisher is facing
now days. Explain the problem also.