Marketing Strategies Of Kingfisher Airlines In India Tourism Essay

trade St locategies Of Kingfisher flight paths In India tourism EssayThis report features the marketing strategies of Kingfisher Airlines in India. The report starts with the analysis of ind rise uping and external factors that affect the environment around the aviation industry and how they generate an impact on Kingfisher Airlines. As the product under consideration is truly a wait on industry, 7 Ps of the companionship strike been discussed at length. Moving on, the report discusses the segmentation, targeting and positioning strategies utilisationd by the company in detail. On the basis of analysis done, recommendations pass water been given that might touch the company in achieving their objectives and serving their target market more(prenominal) efficiently.2. CompanyBackground correspond 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 billion. The group has assorted interests in Brewing, real e republic, Engineering, Bio technology, Information technology and airwave. Dr. Vijay M bothaya is the moderate of the group. Kingfisher radiateline is a private air hose owned by Dr. Vijay M solelyaya. It started operations in May 9, 2005 with fleet of 4 leased airbase A 320 aircrafts. It provides sufficient facilities to its passenger. With its merger with Air Dec tolerate, the flight path nowcaters to tout ensemble the segments of aviation industry from broken to superior.3. The Environment3.1Macro EnvironmentPolitical FactorsGovernment of India ended the monopoly of Air India and Indian air passages by announcing of its open skies policy. Now the private operators be tout ensembleowed to offer air transport service.Foreign equity up to 25% is al ruggeded.Non Resident Indian(NRI) investments would be allowed up to 100% for domestic passenger transport. In spite of this no remote airlines could either straig htawayly or indirectly hold equity in domestic airline company.The Government gave freedom to operate non-profit, traveller carry and cargo charges to any destinations. Indian citizens are to a fault allowed to travel on these flights. terminate harms and blue give the axe taxes are constantly increasing so the speak to ordain ultimately be placed on the passengers.Safety regulations which in like look effect aviation industry much(prenominal) 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 give the sack 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 devising over capacity a big issue. There are issues w hich have overwhelmed the various airlines throughout the world such as High fuel cost, declining passenger numbers and cut throat cost wars simply all these have limited influence in India. Regardless of low airport infra social organization in India, there are more than 25 world(prenominal) airlines operating from India. Richardson, B. (2010, January 24)Socio-Culture FactorsAround dickens third of the current population of India consists of childlike large number below 35 be to service class. The people belonging to this age group have high disposable income and are potential drop market targets for consumer and luxury goods. Naukri Hub 1.(2009) Also in country like India, family structure is of great importance, there is a hierarchical governance in which all the major household decisions are taken by the elders and earning members of the family. Thus duration introducing any product, marketers aim for target audience of that product and decision manufacturing business of their family simultaneously. Naukri Hub 2.(2009)Technological FactorsAdvances in technology give influence the market in various ways. These days there have been many developments in IT transcriptions and internet which is being used for aircraft maintenance. There have been changes in trends like more customers boo queen regnant the tatters online. Due to the advancement in technology, the Electronic Data hang on (EDI) has been proposed in cargo terminals, which will link all the stake holders for expeditious transaction and recent information about the cargo. In many home(a) based carrier go the revenue Yield management system would be increasingly used for adaptable tariffs and to make most of the revenue.The substructure of web check-in service has eased the boarding process in flights. Ministry of Civil Aviation, Government of India.(2000)3.2 Micro EnvironmentCompanyThe main final stage of kingfisher airline is to provide steady, safe, value based and enjoyable tra vel see to it to all of its passengers Fly Kingfisher 1.(2010). It is the only airline in India which has been awarded with five stars Airline rating by Skytrax. Fly Kingfisher 5.(2010) It has a 19% market dowery in Indian aviation industry.CustomersCustomer trend is a fragmentary issue which is required to be considered in order to be winning in the market. Company survives on the basis of fulfilling the customers inescapably, wants and offer them good benefits to pull up more customers. Kingfisher airline occurs are standard as compared to jet airways or Air India. They launched kingfisher departure to attract the budget bankers bills.SupplierAirline needs a consistent supply of fuel, maintenance, food and beverages. Kingfisher airline has a scale down with Sky Gourmet for providing catering operate, which is a leading airline caterer in India. The Gate 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 operate to the organisations which provides services to people on move. So this will ultimately give the benefit to kingfisher airline. bare-assedswire, P.(2010, November 11)CompetitorWith 19% market fate Kingfisher airline faces an intense competition from spurt 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 divide 26.2% and 17.7% respectively. director familiar of Civil Aviation 1,(2010) They provide outstanding services and continuous innovations. Jet airways have acquired Air Sahara, in order to fight strongly in the low cost carrier market. Air hex World.(2007)Kingfisher airline in any case competes with early(a) disordered cost carriers (LCC) such as Spice Jet, Go Air, Jet Lite, and Indigo Air on terse haul routes. These airlines have made record profit by providing squalid tickets to p assengers and have captured strong market shares in Indian aviation industry.4. Organisational Marketing Mix increase/servicesKingfisher airline provides three exclusive classes of services to its customers-kingfisher First, kingfisher Class and kingfisher Red. Kingfisher class is highly respected in economy which targets raffish and ready-to-save middle class passengers. Kingfisher Red is low coiffure service of kingfisher airlines which primarily targets developing middle class people which are primarily set cognizant. Kingfisher first and kingfisher class both are to a fault available on international journey. Other services included are Tejas.(2009)Travel insurance policy in relationship with ICICI Lombard General Insurance.Offer In-flight entertainment to its passengers.Cargo servicesLounge and private spaceSpecial care installing3 course Gourmet cuisineBranding Strategies of kingfisher AirlinesKingfisher airlines have adopted umbrella branding schema and have broken new g round in the idea of bringing luxury, glamour and life style to the skies. Kingfisher airlines sell the idea of lifestyle through its sensational airhostesses and use red colour, which is the colour of liveliness.They have been apt to provide hospitality in such a way thatgives both passenger a feel like Guest. Kingfisher airlines concept of Flying with full 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 skinny 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 impart corporate card, Airtel, Goa tourism 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 trip its account on Twitter so that the customer can bring instant updates from Kingfisher airlines this account has been 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 give up 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 innovated services from Bangalore to Mysore.On, 10 october,2010-Kingfisher airlines announced its first SMS-based ticketing service Flybuysms crossways 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 addi tional Domestic flights in 2010 for winter chronicle from major cities. Kingfisher airlines also provides facility of In- Flight -Entertainment. Fly Kingfisher 2.(2010)PriceKingfisher airline follows differential set 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 lineament of services due to the change in consumers tendency and uphill 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 conduct 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 demo ralise than the economy class of competitors. ICMR.(2006)PlaceKingfisher airline connects all all important(predicate) sectors of business in addition to leisure destinations and provide economical airlines tickets to Delhi, Mumbai, Hyderabad, Goa, Chennai, Bangalore and other important cities. It provides services over 80 destinations including Domestic as well 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. Services 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 scarper and spends lots of money in promotions the team of kingfisher airline demonstrated that airline as The New Flying Experience and use both techniques stir up and pul l promotion strategies as followsPull Promotion strategyKingfisher airlines use advertisement hoardings at airports which represents the fashionable interior of the Funliners, andexpress the youthful, joy filled and initiative image.They organize various fashion shows, celebrity golf matches, New form parties in order to build its kingfisher brand.The UB group publish their monthly mag 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 union 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 commonalty purpose. Fly Kingfisher 4.(2010)PeopleKingfisher airline is service industry which has two kinds of clients away clients (passengers) and internal customers (employees). Kingfisher airlines uses the word GUEST for its external client, Dr Vijay mallya has clear instruction to his caboodle 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 component web check- in.Customer can book ticket at close local kingfisher airline officeKingfisher airlines also provides service of home pitching 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 uncommon services to its passenger such as personal valet at the airport in order to help in luggage treatment and boarding, Exclusive 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)CustomisedMarketingFocusedMarketing differentiateMarketing design MarketingStrategyUndifferentiatedMarketing6. Types of Targeting StrategiesTargeting Strategy of Kingfisher AirlineKingfisher airline follows Differentiated Targeting Strat egy. It mainly targets three types of customers in India on the basis of this provides three elite group classes such asKingfisher First a business class service which mainly concentrates on business class people who are spontaneous 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. perspective 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 serv ices. 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. good wordKingfisher airline should improve its performance on important constraint such as punctuality. As per the research conduct by director planetary of civil aviation (DGCA) kingfisher has highest flight cancellation rate in 2010. Below figures shows the rate Director General of Civil Aviation 2,2010)Icancellation.jpgIreasons of cancellation.jpgsupra diagram explains the reason for cancellations. Based on this, it can be deduced that Kingfisher Airlines steady 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 fare 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 mass media, in order to inform people more about Kingfisher Red and Kingfisher services. Also they should reconsider their budget flyer strategy as Low Cost Carriers like Spicejet and Indigo are far ahead in terms of market share.