Marketing Strategies Of Kingfisher Airlines In India Tourism Essay

Marketing Strategies Of Kingfisher Airlines In India Tourism EssayThis report features the marketplaceing strategies of Kingfisher Airlines in India. The report starts with the compendium of internal and outdoor(a) factors that affect the environment around the air industry and how they take aim an impact on Kingfisher Airlines. As the product under consideration is actu eachy a servicing industry, 7 Ps of the company have been discussed at length. Moving on, the report discusses the segmentation, tar frig arounding and positioning strategies used by the company in detail. On the basis of analysis done, recommendations have been given that might help the company in achieving their objectives and serving their target market to a greater extent(prenominal) efficiently.2. CompanyBackgroundAccording to UB Group.(2010) The united brewery (UB) Group is one of the Indias largest conglomerates, which has annual sales over US$ 400 million with market capitalisation of over US$ 5 billi on. The group has assorted interests in Brewing, real estate, Engineering, Bio technology, selective information technology and Aviation. Dr. Vijay Mallaya is the death chair of the group. Kingfisher air passage is a private air duct owned by Dr. Vijay Mallaya. It started operations in May 9, 2005 with fleet of 4 leased airbase A 320 aircrafts. It provides full facilities to its rider. With its merger with Air Dec back end, the airway nowcaters to all the segments of aviation industry from deplorable to amplitude.3. The Environment3.1Macro EnvironmentPolitical FactorsGovernment of India ended the monopoly of Air India and Indian airlines by announcing of its open skies policy. Now the private operators are allowed to offer air transport operate.Foreign equity up to 25% is allowed.Non Resident Indian(NRI) investments would be allowed up to atomic number 6% for domestic passenger transport. In spite of this no foreign airlines could either directly or indirectly hold equity i n domestic airline company.The Government gave freedom to operate non-profit, traveller charter and cargo flights to any destinations. Indian citizens are also allowed to travel on these flights. Fuel prices and high go off taxes are constantly increasing so the follow will ultimately be placed on the passengers.Safety regulations which also effect aviation industry such as regular flight inspection, recording of flight recorder. Ministry of Civil Aviation, Government of India.(2000)Economic FactorsIndian Aviation industry depends on thedevelopment of its internal market. This can be determined by economic growth of more than 7% Print. (2009, August 6). High fuel costs have definitely worsened the Indian aviation industry. Fuel tax which is charged by most of the states in India is 28%. Indian airlines are growing too fast and too big reservation over capacity a big issue. There are issues which have overwhelmed the various airlines throughout the world such as High fuel cost, declining passenger numbers and cut throat cost wars but all these have limited influence in India. Regardless of low airport infrastructure in India, there are more than 25 international airlines operating from India. Richardson, B. (2010, January 24)Socio-Culture FactorsAround two third of the current population of India consists of young good deal below 35 belonging to returns class. The people belonging to this age group have high disposable income and are potential market targets for consumer and luxury safe(p)s. Naukri Hub 1.(2009) Also in ground like India, family structure is of great importance, there is a hierarchical system in which all the major household decisions are taken by the elders and earning members of the family. Thus while introducing any product, marketers aim for target audience of that product and decision maker of their family simultaneously. Naukri Hub 2.(2009)Technological FactorsAdvances in technology will influence the market in various ways. Thes e days there have been many developments in IT systems and internet which is being used for aircraft maintenance. There have been changes in turns like more customers booking the just the tickets online. Due to the advancement in technology, the Electronic Data Interchange (EDI) has been proposed in cargo terminals, which will link all the stake holders for quick execution and recent information about the cargo. In many national based carrier run the revenue Yield management system would be increasingly used for adaptable tariffs and to make most of the revenue.The introduction of web check-in usefulness has eased the boarding process in flights. Ministry of Civil Aviation, Government of India.(2000)3.2 micro EnvironmentCompanyThe main goal of kingfisher airline is to provide steady, safe, value based and enjoyable travel experience to all of its passengers vaporise Kingfisher 1.(2010). It is the only airline in India which has been awarded with five stars Airline rating by Sk ytrax. Fly Kingfisher 5.(2010) It has a 19% market share in Indian aviation industry.CustomersCustomer trend is a fragmentary issue which is required to be considered in order to be successful in the market. Company survives on the basis of fulfilling the customers take, wants and offer them good benefits to attract more customers. Kingfisher airline be intimates are standard as compared to jet airways or Air India. They launched kingfisher flushed to attract the budget flyers.SupplierAirline needs a consistent supply of fuel, maintenance, food and beverages. Kingfisher airline has a contract with Sky Gourmet for providing catering services, which is a leading airline caterer in India. The render group has acquired 74% interest in Sky Gourmet, which will strengthen the capabilities of the company. Gate group is a leader in providing on board services to the organisations which provides services to people on move. So this will ultimately give the benefit to kingfisher airline. Ne wswire, P.(2010, November 11)CompetitorWith 19% market share Kingfisher airline faces an intense competitor from Jet Airways and Air India which are the two fastest growing airlines in India. Jet Airways and Air India are competing with Kingfisher on premium Executive class of the country with each having market share 26.2% and 17.7% respectively. Director General of Civil Aviation 1,(2010) They provide outstanding services and continuous innovations. Jet airways have acquired Air Sahara, in order to compete strongly in the low cost carrier market. Air Transport World.(2007)Kingfisher airline also competes with other pocket-sized cost carriers (LCC) such as Spice Jet, Go Air, Jet Lite, and Indigo Air on short haul routes. These airlines have made record profit by providing low-priced tickets to passengers and have captured strong market shares in Indian aviation industry.4. Organisational Marketing MixProduct/servicesKingfisher airline provides three exclusive classes of services to its customers-kingfisher First, kingfisher physical body and kingfisher Red. Kingfisher class is highly respected in economy which targets fashionable and ready-to-save center class passengers. Kingfisher Red is low fare service of kingfisher airlines which in the main targets developing middle class people which are primarily price cognizant. Kingfisher jump and kingfisher class both are also available on international journey. Other services included are Tejas.(2009)Travel insurance in relationship with ICICI Lombard General Insurance.Offer In-flight entertainment to its passengers.Cargo servicesLounge and private space peculiar(a) care facility3 course Gourmet cuisineBranding Strategies of kingfisher AirlinesKingfisher airlines have adopted Umbrella branding dodging and have broken bare-ass ground in the idea of bringing luxury, glamour and lifestyle to the skies. Kingfisher airlines sell the idea of lifestyle through its sensational airhostesses and use red colour, whi ch is the colour of liveliness.They have been trained to provide hospitality in such a way thatgives every passenger a feel like Guest. Kingfisher airlines concept of transitory with goodness Times reflects that they are providing a world class services to its Guest.Kingfisher airlines have aggressively advertised itself by becoming channel partner for NDTV Good Times, which is the Indias first lifestyle channel in order to gives its brand a distinct identity. It has also started co branding initiative with American Express corporate card, Airtel, Goa touristry and Malaysian Tourism. It has drafted an agreement with Deepika Padukone ascompanys new brand ambassador. Tejas.(2009)Feedback systemKingfisher airline maintain a proper feedback system and provide the facility of direct email to its chairman if anyone is not satisfied with the services. Company has activated its account on Twitter so that the customer can receive instant updates from Kingfisher airlines this account has be en opened to get feedback from Guests. Campaign India Team.(2009)New Product Development by Kingfisher airlinesKingfisher airlines offer variety of product developments like Kingfisher Red launched Frequent Flyer Programme (Little Wings) for young flyers from ages 3 to 12 this would permit young flyer to receive miles when they flyOn August, 2010-Kingfisher airlines launched daily direct flights on the Delhi-Ludhiana-Delhi Route.On,1 october,2010-Kingfisher airlines inaugurated services from Bangalore to Mysore.On, 10 october,2010-Kingfisher airlines announced its first SMS-based ticketing service Flybuysms across all mobile networks in collaboration with wireless transactions company Pay Mate.On, 17April, 2010-Kingfisher airlines launch services from Mumbai and New Delhi to Bangkok.They are operating with 22 additional Domestic flights in 2010 for winter schedule from major cities. Kingfisher airlines also provides facility of In- Flight -Entertainment. Fly Kingfisher 2.(2010) term sKingfisher airline follows differential pricing strategy which is also called dynamic pricing strategy and competes against major airlines in India such as Air India, Jet airways. Newman2, N. (2010). It is a premium airline and charge premium price for its business and economy class and provides high quality of services due to the change in consumers tendency and emerging of new low cost airlines.Kingfisher Red is a low fare section which adopts low fare pricing with full services. The pricing strategy of aviation industry is dynamic and mainly based on the behaviour of crude oil prices, Dollar rates and competition. Fuel prices today accounts for 45 percent of airlines total operating cost. Dr Vijaymallya stated that kingfisher Red is budget airline not a low cost carrier and fares were above those of LCC but lower than the economy class of competitors. ICMR.(2006)PlaceKingfisher airline connects all grave sectors of business in addition to leisure destinations and provide econom ical airlines tickets to Delhi, Mumbai, Hyderabad, Goa, Chennai, Bangalore and other important cities. It provides services over 80 destinations including Domestic as head as international, more than daily 390 departures with 66 aircraft. Bhasin, H. (2010, June 28) they recently proclaim inaugurate of its domestic operations from Terminal 3 of the Indira Gandhi International Airport, from 14th November 2010, New Delhi. work from new terminal will provide smooth process and flawless services among all international as well as domestic connections. Fly Kingfisher 3.(2010)PromotionsKingfisher airline use heavy promotion campaign and spends lots of money in promotions the team of kingfisher airline demonstrated that airline as The New Flying Experience and use both techniques push and pull promotion strategies as followsPull Promotion strategyKingfisher airlines use advertisement hoardings at airports which represents the fashionable inner of the Funliners, andexpress the youthful, j oy filled and world-class image.They organize various fashion shows, celebrity golf matches, New Year parties in order to build its kingfisher brand.The UB group expose their monthly magazine which is called Pegasus which provides information regarding kingfisher airlines. Bhasin, H. (2010, June 28).Push Promotion strategyKingfisher airline provides special discounts for all individual serving in the India Armed forced the marriage ceremony government, state government, and employees of all public sector units in country.It was the official airline partner of the DLF Indian premier league (IPL) in season 2009.Special discounts in kingfisher hotels mainly for kingfisher airliner traveller.They provides group travel discount for group of 8 or more travelling in kingfisher class or group of 6 or more travelling in kingfisher first class for common purpose. Fly Kingfisher 4.(2010)PeopleKingfisher airline is service industry which has two kinds of clients External clients (passengers) and internal customers (employees). Kingfisher airlines uses the interchange GUEST for its external client, Dr Vijay mallya has clear instruction to his crew that take care of every guest in the same manner as they have guest in his ownhome. Every crew has been provided a thorough training programme so that they can provide the services as per passengers expectations. Bhasin, H. (2010, June 28)ProcessCustomer can book their air ticket either online through kingfisher airlines website or through a Roving agent web check- in.Customer can book ticket at nearest local kingfisher airline officeKingfisher airlines also provides service of home delivery of ticket on demandFly by SMS service called king mobile was launched in 2005, in order to inform its passengers regarding flight updates, schedule and flight statues through instant mobile alert. Bhasin, H. (2010, June 28)Physical EvidenceKingfisher Airlines provides varieties of unmatched services to its passenger such as personal vale t at the airport in order to help in luggage handling and boarding, liquid ecstasy lounges and private space together with refreshments and music at the airport. In flight Entertainment facility, Passengers have choice of three Gourmet cuisines. Passengers can feel more comfortable with sleeper seats with extendable footrests. It also provides free food in kingfisher Red airline. Yatra Online Private Limited.(2010)CUserssahilDesktopsegmentation22.jpgCUserssahilDesktopsegmentation 222.jpg(Refer to appendix 1, Naukri Hub 1.(2009), and Naukri Hub 2.(2009) for segmentation)CustomisedMarketing rivetMarketingDifferentiatedMarketingTarget MarketingStrategyUndifferentiatedMarketing6. Types of Targeting StrategiesTargeting Strategy of Kingfisher AirlineKingfisher airline follows Differentiated Targeting Strategy. It mainly targets three types of customers in India on the basis of this provides three Elite classes such asKingfisher First a business class service which mainly concentrates on business class people who are willing to spend for first class services.Kingfisher Class is highly respected in economy which targets fashionable and ready-to-save middle class passengers.Kingfisher Red is low fare service of kingfisher airlines which mainly targets developing-middle class people which are primarily price cognizant. Newman1, N. (2010)Kingfisher Red (Budget Flyer)Kingfisher Class (Leisure Traveller)Kingfisher First (Business Traveller)Kingfisher AirlineDifferentiated strategy7. set Strategy of KingfisherIn terms of positioning strategy, Kingfisher airline positioned them self premium airline. Dr. Vijay Mallaya has clearly stated that Kingfisher Red will not be positioned as Low cost carrier (LCC), as passengers consider the attributes of a LCC as low quality of services. He believes that people in India pay for quality and services.This budget airline positioning is not a LCC but lower than the economy class of their competitors such as Indian airlines, Jet airways. It also provides the facility of multiple fare option and auction of its tickets on all travel routes. ICMR.(2006), Newman1, N. (2010)Perceptual MapsHigh Services offeredKingfisher Airline Kingfisher RedJet airways Air IndigoAir IndiaPrice of TicketHigh LowSpice jetGo AirLowLow8. RecommendationKingfisher airline should improve its performance on important constraint such as punctuality. As per the research conduct by director general of civil aviation (DGCA) kingfisher has highest flight cancellation rate in 2010. under figures shows the rate Director General of Civil Aviation 2,2010)Icancellation.jpgIreasons of cancellation.jpgAbove diagram explains the reason for cancellations. Based on this, it can be deduced that Kingfisher Airlines withal lacks in providing world class service as promised by them. Director General of Civil Aviation 2,2010)Kingfisher airlines market share is still low as compared to Jet airways, as per the data revealed by DGCA. It may be due to the higher fa re as compared to other low cost carrier such as spice jet, Air indigo, NACIL (I). Director General of Civil Aviation 1,(2010)IUntitled.jpgKingfisher airline should think about applying promotional campaign in tummy media, in order to inform people more about Kingfisher Red and Kingfisher services. Also they should reconsider their budget flyer strategy as Low appeal Carriers like Spicejet and Indigo are far ahead in terms of market share.