Marketing Strategy Analysis For Kingfisher Airlines Tourism Essay

Kingfisher Airline is a private air hose based in Bangalore, India. Around 66 % of Kingfisher Airlines is owned by Mr. Vijay Mallaya United Beverages Group through his keeping companies. Other investors include fiscal establishments and single investors. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. The air hose presently operates on 42 domestic paths and 6 international paths. Kingfisher is one of merely six air hoses in the universe to hold a five star evaluation from skytrax. It has besides received multiple awards for best air hose, best service, invention etc.


Kingfisher meets the demands of its clients with services such as personal gentleman at the airdrome to help in luggage handling and embarkation, sole sofas with private infinite, accompanied with refreshments and music at the airdrome, sound and picture ondemand, with extra-wide individualized screens in the aircraft, sleeperette seats with extendible footstools, and three-course epicure culinary art.


Apart from the basic map on travel the company besides provides a hassle free safe journey.

When associated with Kingfisher airlines a client feels like aˆ? Transportation aˆ? Oneworld aˆ? Personal Valet at a invitee in person ‘s place while at the same clip kerb aˆ? Safety aˆ? King Club aˆ? In-flight services aˆ? Convenience aˆ? Relationship supplying him with an aura of success. The individualized Manager aˆ? Off flight services attending to detail in quality and services from the clip aˆ? Service upgrades you book a ticket to the clip you leave the airdrome all gives the ‘guest ‘ an experience of success while at the same give him a feeling of being taken attention of and being pampered.

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Memberships with confederates like recognition card companies, hotels and assorted golf classs with the Kingfisher wages card called ‘King nine ‘ merely enhances the feeling and experience.

Functional Symbolic Experiential


Based on the analysis of the client cleavage Administration Business Travelers Leisure travellers Department Kingfisher has into 2 divisions to provide to the differing aˆ? Age 25-45 aˆ? Company representative civil air power demands of a fast turning economic system. aˆ? Age Group 30-60 aˆ? High Disposable income aˆ? Increased income aˆ? Looking for majority Kingfisher foremost and Kingfisher premium caters to aˆ? Time orientated engagements aˆ? Adventurous and funny aˆ? Price aˆ? Price sensitive concern travellers who look at service quality and aˆ? Looking for comfort aˆ? Flexibility aˆ? convenience aˆ? Flexible aˆ? Value added services comfort and Kingfisher red which focuses on leisure aˆ? Open minded travellers who are chiefly cost witting. Through this division, Kingfisher can supply value to the client by cross functionality of the competitory advantage.

On clip public presentation record

High employee satisfaction

Amalgamation with Deccan

Experienced employees

Youngest aircraft fleet

Business Model

Based on the demands of the client, Kingfisher has based its concern on Supplying a high Quality, Safe and friendly winging experience and has build its substructure to foreground it ‘s high quality in these Fieldss

Personal gentleman for luggage handling

Safety record


Chef on board for customized repasts Training academy

Dependability and safety

Kingfisher repute Vijay Mallaya Quality of offering Strong Image Cross selling

King nine rank benefits


The Indian economic system is turning at an norm of 8.35 % which has seen 360 degree quality and Brand 5 star evaluation Word of place with invention a jet of activity in the civil advertisement from skytrax Mouth extendible awards footrest air power industry. The liberalisation of the air power sector and the unfastened skies policy adopted by the authorities has propelled this growing from 1993. At present it is

estimated that Domestic and International air travel will turn at an estimated 20 % to 25 % . In Jan-June 2010, 25.1 million riders flew with Domestic bearers, which is a 22 % growing from the corresponding period last twelvemonth. Most of this growing is attributed to the services industry which is responsible for 35 % of the employment in India. This altering Dynamics has led to an addition in utilizing air power to run into the transit demands of the populace. The addition in disposable incomes has allowed leisure travellers to see alien venues both in India and internationally. The growing of the services sector has led to the addition in concern travel every bit good. It is estimated that concern travellers account for around 48 % of rider traffic and around 66 % of the grosss generated. There are six major bearers in Indian air power jet air passages, kingfisher, Indigo, spicejet, GoAir and the national bearer Air India.


Socio cultural Di Environment Education, position symbol Raise Suppliers Boeing, Airbus, Aviation Fuel Technological Eliminate Enviornment Infrastructure betterment


A high growing in the Indian economic system has resulted in investings in air power. There are presently around 30 new airdromes being built to run into the current and future demands of the turning Indian in-between category. There is besides a redevelopments made to bing airdromes to increase burden managing capablenesss and open up future national and international paths. The airdromes of Delhi and Mumbai are a instance in point. This betterment in substructure and unfastened skies air policy coupled with a growing in income, instruction and consciousness of the Indian Population can heighten the growing of the industry. However this period is besides witnessing high fluctuating air power fuel monetary values which adversely affect the operating costs. The economic recession in 2008 adversely affected the air hose industry. Customer Load Factors and Revenues reduced by 30 % and 45 % severally

Eliminate Competitors Jet Airways, Spicejet

Complementors code portion with jet, oneworld member

Reduce Customers Political Eliminate enviornment Open sky policy Business and leisure travellers Economic Eliminate Enviornment High growing rate


Aviation has ever been a capital intensive low growing industry. Of the six major air hoses merely 50 % of them are runing at a net income. A deficiency of appropriate human capital and a limited sum of providers for aircrafts increases the operating costs of these air hoses. The intense competition to pull new clients has resulted in a monetary value war which has diminished net incomes well. Jet airways, Kingfisher and Indian air hoses ( subordinate of Air India ) are the chief rivals in the industry who are contending for the concern and leisure travellers in the state. To battle increasing costs air hoses have began to organize confederations with each other to maximise output and better client keeping. Kingfisher has late joined the oneworld air hoses. This partnerships allows codification sharing and fillip points sharing among a figure of intl air hoses. In the domestic sector, Kingfisher has inked a codification portion understanding with Jet air passages to better outputs


The factors stated supra have shown us the unpredictable nature of the industry and although there are enormous growing chances in the sector, the high dependance on external and internal factors increase the capriciousness of the same. This would be a reasonably low attractive industry which has a really high gestation period, intense competition and low ROI.

*Quantifiable informations would supply us a more accurate estimation. However Data is unavailable at the minute. Some factors like client burden factor and mean monetary value of a ticket are available for some industries while other factors to see are either in per centum footings or are unavailable



aˆ? Dividend Paid out aˆ? Pride and prestige associated with the trade name


aˆ? Remuneration Package aˆ? Decentralized construction aˆ? Best resource hiring policy aˆ? High Internal Growth aˆ? Kingfisher Academy


aˆ? Delighters aˆ? Feedback Mechanisms aˆ? Brand Loyalty plans aˆ? Personalized Service


aˆ? CSR enterprises aˆ? 5 star from skytrax aˆ? First to order boeing A380


This mission statement is a true contemplation of the nature of being of Kingfisher air hose. It addresses the four stakeholders to which it adds value to. The organisation has done a good occupation in pass oning and distributing the vision of the company to its clients, employees and society. The employees have been given all the tools to experience insecure and independent while they are making their occupation. They have been encouraged to work together to carry through the aim of the company. The society at big is proud and happy to hold an air hose like Kingfisher associated with them. A batch of the enterprises taken by them have been industry number ones. The acknowledgment given to them by the international community is a taking visible radiation to the Indian air power industry. Kingfisher nevertheless has nevertheless had a batch of hard currency flow issues which have impacted the value given to stockholders. The amalgamation with Air Deccan has given the company a larger base but at the cost of net incomes. The high debt has created a batch of jobs on the fiscal viability of the house and the company is looking at ways to cut down the current debt load


At the present Kingfisher has a distinguishable competitory advantage. The value for the client was created by supplying him a alone winging experience where the client felt delighted right from the minute he booked a ticket to wing with Kingfisher. Follow up calls to booked clients, regular free ascents, a alone substructure both in the aircraft and the waiting sofa and above all the unfastened and ask foring communicating gave an increased perceived value to the client. Kingfisher has besides been created Value for itself by looking at the client demands. With the amalgamation of Air Deccan it was able to provide to a larger consumer market and be able to supply some benefits of one section to the other. By mentioning to clients as invitees they give the feeling of unity among everyone in the organisation. All these factors contribute to supplying a alone competitory advantage for itself and the consumer at the present minute. However to prolong this competitory advantage it will be necessary for it to heighten and introduce this nucleus.


Durable Demand

Efficienc Y

Distinct cape



Barrier @ competition

Company VISION

“ The Kingfisher Airlines household will systematically present a safe, value-based, gratifying travel experience to all our invitees. ” In a recent interview Vijay Mallaya proprietor of Kingfisher air hose outlined his Long term Vision for the company. He stated that A?A? Kingfisher aims to be the most profitable international air hose in IndiaA?A? Although this purpose is decidedly bold and ambitious the company has created the substructure, the engineering, trade name image and loyal client to recognize this aspiration while staying true Consumer Survey Feedback forms Online reappraisal After gross revenues calls to the vision and values of the organisation.

Target group


Customer feed back

Geographic group

Kingfisher has created an environment of uninterrupted feedback to understand the altering demands of the client. Through assorted feedback mechanisms like studies, solution mapping feedback signifiers and after gross revenues calls the company captures Media advertisement Consumer Pilot undertaking and the demands of the clients and analysis it with relation to the consciousness Results proving market and the resources available. After a solution is found and positive pilot testing is done there is a bustle of Promotions activity through assorted media channels and their online Alliances beginnings to make consciousness of the merchandise. In 2009 entirely Kingfisher spent near to INR 100 Million on advertisement entirely. Once the consciousness is completed and the merchandise launched at that place

Resource analysis

Launch of merchandise

Feedback analysis and market research

is a feedback on that which is used to further heighten the offering. This dedication to uninterrupted betterment has besides led to opening of new path programs and takes advantage of being the first mover. The trade name name and the services that Kingfisher offers it is able to keep its competitory place on these paths. Kingfisher ‘s mean ticket monetary value is 8000 which is one of the highest in the market and it is set to profit even more as the air power market matures which is estimated to do a 20 % addition in monetary values

Market Hunt:

Interest capturing Closing of sale Service provided



Follow – up

Gross saless

Direct Gross saless

Gross saless force Channels Ads and publicities

Brand image

Company call Centre

Relationship Directors

Online channels

Service resources

Owner and trade name embassadors

External Market Making

Internal Market Making Kingfisher has two chief channels for gross revenues which are its direct gross revenues and the on-line channel. The growing in the societal environment of the state has reduced the dependance on travel agents and now they account for merely 3 % of the entire grosss of the air hose. This transportation has resulted in an increased dependance on on-line engagements. Kingfisher supplements the online booking channel chiefly with their call Centre which assists client questions and besides gross revenues to those clients who are non comfy with the online system. The direct gross revenues channel is farther divided into branch locations and direct gross revenues representatives. The subdivision office captures the single concern travellers and the leisure travellers while the direct gross revenues representatives focal point of block gross revenues in the B to B section. The relationship directors are responsible for understanding the consumer experience and guaranting repetition gross revenues. The Decentralized nature of the organisation enhances coaction and enhances coaction with the aid of advanced technological substructure. The external aid received by the gross revenues and selling force besides assists the squad in making higher grosss. Kingfisher leverages in trade name image through assorted Medias to make consciousness about the merchandise and services and aides the pre gross revenues procedure. This enables the gross revenues squad to concentrate on seeking to carry through the client demands.

Market Farming:

Most of Kingfishers gross stems from the domestic market. It is estimated that ticket monetary values will increase due to the turning Customer nature of the industry. Kingfisher will profit the most from this life-time Value monetary value hiking and will be able to tap the monetary value sensitive consumers. The Kingfisher group is known to be a lifestyle trade name which has Base Extended Leveraged Business Business Business merchandises like whisky, Beer, Water etc and experiential services like a cricket squad and a expression 1 squad. Along with these services the Airlines besides have a low cost subordinate in Revenues from Domestic Complementary International 19 % Loyalty plans associated trade names Kingfisher red. The house captures these synergisms through branding 89 % 9 % bundling and cross merchandising and 9 % of the grosss are attributed Inter organisational Relationship to these activities. Kingfisher has been successful in adding offerings Management value to the client by binding up with other lifestyle merchandises to sell the trade name. An illustration of that would be its tie up with ICICI recognition cards, Inox multiplex and assorted golf classs in India.


Kingfisher was a late entrant in the Airline industry. In order to turn in the market it was really advanced and speedy in responding to the consumer demands. Most of the alterations attributed to it hold been reactive and non proactive. Although the organisation has a

really good resource base they are non able to capture the necessary information due to the decentralized nature of the house. Another issue of the house is the liquidness jobs that it has faced which have had an inauspicious affect on the house ‘s net incomes. Trends show that with the industry maturating many of the participants are switching their focal point from being low cost bearers to being full service 1s who will concentrate on supplying quality services to the client. In the last six months mean ticket monetary values have risen about 20 % from the old twelvemonth. This is an exact tendency reversal from 2008 where the economic downswing had forced the air hoses to follow a monetary value sensitive operation scheme. Although Kingfisher is still in the market leader place there is a good opportunity that if the organisation does non settle its debt fast adequate and does non introduce the rivals will invalidate the alone merchandise offerings of Kingfisher.


CSF ( Relative to competition )



Musts have



Economies of graduated table

Short term Future

aˆ? Strategic tie ups

Long Term Future

aˆ? Economies of graduated table aˆ? Cargo

Cargo Making

On board experience

Strategic Tie ups




aˆ? Liquidity aˆ? Brand leveraging aˆ? On board experiences

Opportunity costs



Let Them Be

At Par Below Par

Nice to hold

Way below Par

Based on our concern demands it is clear that the company needs to be profitable at the earliest. The capital crisis is straight haltering the concern and is restricting the chances the company has to turn into new markets. Based on research analysis and understanding the rivals we can look at the undermentioned Phases of scheme that Kingfisher needs to implement to make success.

Weakness Maping


Kingfisher needs to get down distinguishing itself from the rivals. By being more Proactive in bettering their service offerings and leveraging their trade name Kingfisher can supply an odd service offering. For e.g. utilize the cricket squad and the expression 1team and roll up that experience with Kingfisher Beer and Kingfisher air hoses.


The touristry industry is turning at an estimated rate of 20 % . Apart from binding up with Luxury hotels and resorts, Kingfisher can distinguish itself by roll uping its services related to gamble touristry. This section is a high growing section which targets a similar client base.


Presently Kingfisher is one of the largest in the industry. However with the rapid growing of the industry, Growth will be required to keep the position Quo. The lading Market is one avenue where they can better drastically. Despite holding the basic substructure in topographic point Kingfisher has merely 9 % of the air Cargo Market which contributes to merely 2 % of the grosss of the company against Its chief rivals Jet which has 38 % of the market. This section is still in the nascent phase and the rivals have still non yet tapped the full potency of this section. A determined, concentrated attempt in this country will make huge benefits for the house by bring forthing a new beginning of gross and supplying them with more selectivity in their path programs.


Risk-Return Analysis Turning



Cargo Services Tourism Synergy Economies of Scale

Brand Synergy

Tax returns on investing


Despite being a capital intensive Project, the immense chances of growing make this one of the chief focal point countries Kingfisher will hold to look into one time it additions profitableness. By doing inroads in the touristry subdivision and capitalising on the groups different merchandises will let Kingfisher to prolong its competitory advantage in footings of Quality of offerings and trade name image.



Wasting Hazard of non doing it



Based on Greiners theoretical account of growing Kingfisher is in the 3rd revolution of growing which is that of control. The corporate restructuring that will take topographic point will let the organisation to capture synthesis and do better usage of the information. This will enable to assist better carbon monoxide ordination and communicating between the people in the organisation.

Visual perception Change

Barriers to alter


Loss of civilization

Impact of Barrier New Stakeholders

Change in corporate construction

Fear of Job Loss

Gross redirection


New Skills Development


Likelihood of Barrier


Vijay Mallaya is the laminitis and the face of Kingfisher. He is a magnetic and airy person who Is a premier incentive. His degree 5 leading manner transformed kingfisher Beer, his expression 1 squad and his cricket squad from perennial tail enders to taking entities. Although he does non resist at the thought of doing hard determinations he prefers to portion duty of the organisation with each employee and do them portion of the household. By giving duty and independency to the resources and by affecting them in planning and implementing alteration in the organisation, he has managed to make a learning company. Most of the barriers to alter that will happen can be clarified with the current communicating mechanisms.


BENCHMARKING: we have to place the phases of alteration and the clip period for this alteration. Each one should be a miniBHAG which will drive the company to accomplish mileposts. HAVE THE 300 Attitude: Motivate and prepare the employees. Explain the importance of each employee to accomplish alteration. Ingrain the us against the universe outlook. This will convey the employees together and experience more like a household. This will ensue in an accelerated rate of alteration.

ACKNOWLEDGE THE ALEXANDERS: Indentification and public recognition of the first agents of alteration in the organisation. Reinforcement of successes and Symbolic wages system to promote eveeryone to be involved in the alteration procedure. VIJAY MALLAYA FOR A DAY: For those employees who are non really enthusiastic for the alteration that is implemented, they will be selected to fall in as the advisers to Vijay Mallaya and assist him understand the alterations and assist him in the determination devising procedure. Change THE TRAIN TO A Airplane: This is an enterprise to seek to acquire everyone to travel in the same way to a commom end. This enterprise is particularly for people who are non for the alteration proposed. The chief intent of this exercising would be to understand the cause and cogency for opposition and do the needed determinations to guarantee that the squad is on the same page. The phases in this enterprise are Identify, Notify, Speak, Listen, Review, Report. If even after working with the person on this manner it does n’t work we will hold to see if there is a different undertaking that he could be involved with or does he necessitate to be deplaned all together. THE WATERCOOLER EFFE CT: Communicate the Advancement to let people to track the advancement of the house. It has to be in outstanding topographic points like the tiffin room and the H2O ice chest where contributing treatments take topographic point. The advancement studies should be communicated even in topographic points of corporate treatment like meeting suites so that it can stay on peoples heads. Shout THE PROGRESS: Do n’t direct electronic mails or newssheet shout the advancement. Anounce the advancement. Bring people together to actuate them to go on the advancement. CHRISTMAS EVERY QUAR TER: Observe the little accomplishments in advancement.


Apart from the regular constituents dwelling of the balanced scorecard, Kingfisher will concentrate more on understanding path optimisation and shipment optimisation. Apart from the gross segments Kingfisher will hold to concentrate on understanding the public presentation of their leveraged concern. This will enable to understand what sort of enterprises are working and what is n’t so that they can proactively do alterations and enhance growing

Balanced scorecard


Load factors analysis Customer Acquisition cost Revenue per section Gross per kilometre No. of successful Cargos Customer transition ratio, By section, By part, By Channel


No. of Flights per trueness card Loyalty plan efficiency Perception analysis % of positive reappraisal % of ailments worked on

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