Kingfisher Airlines .

The king of good times

What is Service Marketing ?

Services are distinguished from products mainly because they are generally produced at the same time as they are consumed and cannot be stored away or taken and enhanced marketing mix need to be deployed .

Its not about simply reaching about to customers with the right service. But, its also about creating that right desire to possess service.

Airlines as a service industry

The Airline industry came into existence during the 17th centuries. Origin of Indian aviation industry can be traced back to the year 1912. Air travel remains a large and growing industry. It facilitates economic growth, world trade, international investment and tourism and is therefore central to the globalization taking place in many other industries

Market Share
The market shares of the Major Airlines (Last quarter 2010) are as given in the pie chart below:

 In a short span of time Kingfisher Airline has carved a niche for itself. The airline offers several unique services to its customers. These include: personal valet at the airport to assist in baggage handling and boarding, accompanied with refreshments and music at the airport, audio and video on-demand, with extra-wide personalized screens in the aircraft and three-course gourmet cuisine.

Main Bases: Bangalore's Bengaluru International Airport Mumbai's Chhatrapati Shivaji International Airport Hyderabad's Rajiv Gandhi International Airport Delhi's Indira Gandhi International Airport. United Breweries Group, has a 50 percent stake in lowcost carrier Kingfisher Red, formerly known as Air Deccan. In 2008, Kingfisher chairman Vijay Mallya and his Jet Airways counterpart Naresh Goyal announced a strategic alliance.

Market Share of KFA

Current Scenario Kingfisher Airlines -> 26.8% Jet Airways -> 17.8 % Indian Airlines + Air India -> 17.2% Indigo -> 13.5 % Spice Jet -> 12.0% Others -> 12.6%

KFA at a Glance
Total connections to 70 cities including 7 international destinations flying over 350 flights a day. Over 45 million guests flown since inception Current Fleet size of 67 aircraft (39 Airbus and 28 ATRs). Market Share of 20.8% Recognized as one of Indias Most Respected Companies in 2006 and 2007 Business World Indias only 5 star airline by independent agency Skytrax

S.W.O.T. ANALYSIS
STRENGTHS
Strong brand value and reputation in the minds of customers. Quality of the service. Route rationalization. First airline to have a new fleet of airbuses. Quality and continuous innovation.

WEAKNESSES
Still a not in profit organization. High ticket pricing. Facing a tough competition from competitors. Service delivery to metros and other big cities

OPPORTUNITIES
The expanding tourism industry. The non penetrated domestic market. International market. Untapped air cargo market.

THREATS
Competitors Infrastructure issues. Fuel price hike. Economic slowdown.

Kingfisher-5 Star Airlines

Kingfisher is one of only six Airlines in the world to have a five star rating from Skytrax, along with Asian 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.

Ultimate Experience
Kingfisher Airlines are into the business of transportation, rather in the Aviation Hospitality Space and believe in offering their guests that ultimate experience 30,000 feet in the skies.

Kingfisher has touched the consumer pulse and their guests keep coming back for more of the `Good Times onboard Kingfisher Airlines.

Market Player

7 Ps OF Kingfisher Airlines

Rainbow of Service Marketing Mix

PRODUC T

PRICE

PLACE

PROMOTION

PEOPL E

PROCES S

PHYSICAL EVIDENC E

PRODUCT
Domestic & International Air Transport Service. 74 domestic destinations & 8 international destinations in 8 countries across Asia & Europe. Began its international operations by connecting Bangalore to London Services Domestic & International: Kingfisher First Kingfisher Red Kingfisher Class

In-Flight entertainment

PLACE
Services ranges from Ahmadabad to Agartala & to the major cities such as Delhi, Bangalore, & Chennai etc. To target the metro cities or the tier 1 cities in India Tickets can be booked through various channels Online Booking - www.flykingfisher.com Online Booking - Yatra.com, MakeMyTrip.com, ezeego1.com Credit Cards & Debit Cards Payment SMS / Call Outlets in every major city and at every airport across the country Head office is Kingfisher House in Vile Parle (East), Mumbai, well equipped with trained employees &n spread of offices across India

PRICE
Higher income group as well as the upper middle class background. The youth & the high lifestyle segments. Sec A, sec B+ socio economic class mainly in the age group of 25-45 years Services offered by kingfisher do emphasis on their policy to target those segments which are willing to pay for luxury.

PROMOTION
Showcase themselves as as new flying experience Many events and advertisements Multiple touch points and finer promotional services Loyalty and frequent flyer programs are also carried out. Sponsored many cultural events, sports events and charity programs

PROMOTION: ADVERTISEMENTS & PUBLICITY

Hoardings Brand Ambassador

NDTV Good Times

Tagline

Media &Press Releases

SALES PROMOTION
Travel Agencies Offers

King Club

PEOPLE
People are the most important p Provide most services that is the selection, training, and motivation of employees There is the ancillary service personnel, the travel agent who plays a very important role in creating the service exchange but is not a part of the service. The front line staff play a critical role and need to possess empathy Are sent on a 21 day training programme One-month bonus or some incentives

PROCESS
Emphasizes on the involvement of channels, front line staff, travel agency offices, offices of the tour Confirmation of seats Details of booking Offers concession and allows a change in the reservation status Passenger convenience. Provides various facilities at the airport Convenient travel

PHYSICAL EVIDENCE
Seating configuration and in-flight food Best commercial aircraft - Boeing & Airbus Offers a wide selection of meals & highly comfortable seating. Provides extremely spacious and well designed booking offices and ticket counters Elegant interiors and well designed seats

CHALLENGES
Excess Capacity Several new aircrafts were bought within a short span of time which resulted in excess capacity of around 15% to 20%. High Debt Burden The top three airlines including Air India, Kingfisher Airlines and Jet Airways are now carrying a cumulative debt burden of approximately $8 billion. Poor Infrastructure Maintenance and Air Traffic Control (ATC) infrastructure are grossly inadequate if the industry expects to grow any further.

CHALLENGES
Employee Shortage There is clearly a shortage of trained and skilled manpower in the aviation sector as a consequence of which there is cut-throat competition for employees. Regional Connectivity What is hampering the growth of regional connectivity is the lack of airports. Rising Fuel Prices The rising fuel prices have led to increase in the air fares. High Input Costs Increasing manpower costs due to shortage of technical personnel.

SUGGESTIONS TO KFA
Try to focus on smaller aircrafts (50-70 seaters) and fuel efficient planes for short distance. For a long term strategy, internationally focus should remain on one region at a time. To open separate counter for single baggage and last minute departure. Easy information should be available to passengers regarding transit baggage. Avoid aggressive expansion of fleets.