Marketing and management strategies of kingfisher airlines

Kingfisher Airlines based in Bangalore India at Bengaluru International Airport, is one of the chief air hoses in its subdivision of the universe and has more than 400 flights per twenty-four hours. Kingfisher Airlines has a five star evaluation from Skytrax, and is one of merely six air hoses in the universe to hold such a evaluation is deemed to be the most admired air hose in the Asia-Pacific part. During February of 2009 there were 904,000 riders who flew on Kingfisher, giving it the highest market portion in India. Kingfisher Airlines has 74 domestic finishs and 8 international finishs across Asia and Europe boulder clay day of the month and bit by bit spread outing.

This first portion of the study represents Kingfisher Airlines assorted text edition analysis, current selling schemes and direction operations. Whereas the 2nd portion of the study sheds light on one of their categories “ Kingfisher First ” , and discusses a comprehensive selling program in order to increase their portion in the international air.

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Table of Contentss

Introduction 2

Mission Statement and Objectives of Kingfisher Airlines 4

Part 1

Current Marketing Schemes of KFA

Marketing Mix of Kingfisher FIRST

Internal and External Analysis of KFA

Part 2

Integrated Selling Plan for “ Kingfisher FIRST ”

Financial Profile of KFA

Decision

Bibliography

Introduction

Kingfisher Airlines is a private air hose based in Bangalore, India. The air hose is owned by Vijay Mallya of United Beverages Group. Kingfisher Airlines started its operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. Emirates followed with 10.3 % air traffic portion, with 3rd highest aircraft motion. Jet, which had the 2nd highest aircraft motion, is 3rd on the rider motion list with 9 % market portion. Kingfisher, which started international operations from the terminal of 2008, figures at figure 46. The air hose presently operates on 8 international finishs and about all the major metropoliss in India. The finishs covered by Kingfisher Airlines internationally are London, Hong Kong, Dubai, Bangkok, Kathmandu, Colombo, Dhaka and Singapore.

In a short span of clip Kingfisher Airline has carved a niche for itself. Kingfisher Airlines has a five star evaluation from Skytrax, and is one of merely six air hoses in the universe to hold such a evaluation is deemed to be the most admired air hose in the Asia-Pacific part. During February of 2009 there were 904,000 riders who flew on Kingfisher, giving it the highest market portion in India. The air hose offers several unique services to its clients. These include ; personal gentleman at the airdrome to help in luggage handling and embarkation, accompanied with refreshments and music at the airdrome, sound and picture on-demand, with extra-wide individualized screens in the aircraft and three- class epicure culinary art.

Kingfisher Airlines presently operates with a trade name new fleet of 8 Airbus A320 aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the first air hose in India to run with all new aircrafts. Kingfisher Airlines is besides the first Indian air hose to order the Airbus A380. UB retentions Ltd, has acquired 26 % interest in the budget air hose Air Deccan and has option to purchase further of 20 % interest from the secondary market.

Brief History on Kingfisher Airlines

Kingfisher Airlines is a subordinate of the UB Group, one of the largest drink companies in the universe. The stigmatization of the air hose is linked to that of Kingfisher Beer, India ‘s largest brewery. The air hose ab initio operated a individual category service but later introduced a extremely acclaimed First Class, leting it to vie with Jet Airways for the high output corporate market.

In merely over two old ages, Kingfisher Airlines has achieved a market portion of 10 % and has one of the most aggressive enlargement programs of all Indian bearers during 2007. In Jun-07, it dramatically increased its influence in the market with the acquisition of a 26 % shareholding in India ‘s largest LCC, Air Deccan, for about USD130 million. The combined Kingfisher/Deccan group has a domestic market portion of merely over 30 % and a merchandise scope crossing from the price-sensitive, first-time circular, to the high output concern traveller, doing it a dynamic air hose industry.

Mission Statement and Objective of the Company

Kingfisher Airlines passion is to present a first experience to its circulars. And since work and play can travel hand-in-hand, they want to do certain that guests acquire some clip to loosen up in the skies after several pressing committednesss and nerve-racking work duties.

Their aim is to be personally involved and guarantee that every Kingfisher aircraft meets the planetary criterions that I have set in footings of safety. They have besides introduced a bran-new fleet which incorporates the latest engineering available and in malice of the personalized amusement system for personal screening and listening pleasance, they manage a alone category monetary value between low cost bearer and modern-day rival ‘s category. Making an environment that feels first category but is in the budget.

Part 1

Current Marketing Schemes of KFA

KFA has ever positioned themselves as a budget bearer and non as Low Cost Carrier ( LCC ) . Till this twelvemonth they have created their acknowledgment through really cost effectual yet posh services both domestically and internationally. They have followed unambiguously fun selling schemes to do it one of the taking air hoses in Asia.

It came up with a really appealing promotional line “ Fly the good times ” and it reflected in the experience the company offered to its riders.

KFA is alsoA launched Kingfisher RED in order to tap into the turning Low Cost Carrier ( LCC ) section.

The company gave best services to its clients that were like supplying universe category insides, and in-flight amusement systems.

The company came up with merely one category air hoses by uniting combine Business Class experiences and Economy Class experiences in one instead than other air hoses that had Business Class ; Economy Class.

Having a individual category freed up more leg infinite for riders when compared to normal economic system category flights.

The company started turn toing its clients as “ GUEST ” instead than riders.

KFA ‘s promotional scheme squad showcased the air hose as “ the new winging experience ” .

Ads billboards at airdromes depicted the fashionable insides of the “ Funliners ” , which conveyed youthful, fun-filled, and universe category image.

KFA made usage of assorted manner shows, famous person golf lucifers, New Year parties all to construct its “ Kingfisher ” trade name.

The UB group ‘s monthly magazine called “ Pegasus ” published information about KFA along with other information related to UB group.

KFA launched many attractive offers to advance its gross revenues like the “ King Card ” in association with ICICI Bank, in August 2005. This was meant to make loyal clients for KFA by supplying benefits like privileged entree to sofas, eating houses, free refreshments at airdromes, entree to 180 golf nines across India, particular invites for life style shows.

KFA targeted the frequent flyers concern traveler section, which was dominated by Jet Airways. By offering a “ King Saver Booklet ” , This brochure contained six free flight tickets and was presented as a free gift if the rider bought two such brochures each worth Rs. 26,999.Passengers could avail off this offer if they showed there Jet Privilege Member ( Gold or Platinum ) card.

Marketing Mix

Merchandise

Kingfisher Airlines offers alone service to its invitees. The success of this air hose in a really short period of clip can be attributed to the novel services introduced by it e.g.

Rolling agents: A wandering agent is a check-in counter on the move. The invitees with manus luggage are non required to stand in the waiting line at the check-in counters. The rolling agents come to the clients and help them.

Different check-in options: The air hose allows it clients to make a web check-in from its website apart from the option of the airdrome check-in.

Particular attention for unaccompanied bush leagues, senior citizens and those with decreased mobility: The air hose takes the duty of escorting the kids safely to their finish. The land crew aids in check-in and embarkation procedure. Guest with disablements can anticipate a individualized and caring intervention. An bodyguard with a wheel chair can be assigned to the Guest. Help in check-in, embarkation and debarkation can besides be availed by invitees.

In-flight amusement: Every place is treated to an single Television with Live Television every bit good every bit good as pre recorded in-flight amusement channels and Radio.

Topographic point

Connectivity: Kingfisher Airlines flies to 38 finishs across India. These 38 locations cover a broad geographics of the state and link all the tube and the major metropoliss.

Booking of tickets: The clients have an option of booking tickets at the airdrome, by naming the client attention, through travel agents and by logging on to their web site.

Monetary value

Kingfisher Airlines has been termed as the “ first full frills-true value bearer. ” The air hose has a really good defined mark audience which is the Sec A and Sec B+ of the Indian economic system and that falls within the age group of 25-45 old ages with high disposable incomes. This subdivision of the population is modern, voguish and upwards nomadic looking for a great winging experience. They have traveled extensively and are cognizant if the international flight tendencies. This section truly does n’t mind blasting out the money every bit long as they get the experience they are looking for.

Promotion

Kingfisher Airlines has adopted a good rounded attack to make out to their clients. Their aim is to make a topographic point in the heads of their clients for their trade name and to guarantee that the message gets across efficaciously. Kingfisher Airlines has a 360 grade publicity scheme in topographic point. They reach out to their clients through all media of communicating such as telecasting, wireless, print, outdoor, promenades and multiplexes, nines and saloons and their in-flight magazine. They guarantee that they communicate with their clients at multiple touch points.

King Club is the air hose ‘s trueness plan. As a member of King Club, clients enjoy a scope of sole privileges and benefits for each rank degree. The more a client flies with Kingfisher Airlines the more he will be rewarded.

Peoples

Kingfisher Airline ‘s cabin and land crew is the trademark of their services. The existent winning factor for Kingfisher Airlines is the quality of staff service being provided to clients. The crew undergoes strict developing plans. Kingfisher Airlines has besides instituted the Kingfisher Training Academy to provide to the turning demand for trained Service oriented professionals. The academy provides intensive developing on Airlines Orientation covering Airline Rules & A ; Regulations, Cabin Familiarization and Announcement Delivery.

Procedure

Following are the procedures that add to the satisfaction experienced by Kingfisher riders:

Kingfisher Airlines facilitates easy engagement of tickets. The riders can book their seats by naming their 24/7 client attention, by logging on to their web site, designated travel agents and at the airdromes.

Personalized gentleman service at all airdromes across the state. The gentleman service staff assists the riders ‘ right from the clip they reach at the airdrome boulder clay they check-in and besides upon reaching at the finish they provide aid with their luggage.

Physical Evidence

Fleet: The air hose has a trade name new fleet of aircraft comprising of 18 ATR 72s, 4 A 319s, 13 A 320s, 8 A 321s, 2 A 330s.

Insides of the aircraft: All the aircrafts of Kingfisher air hoses have designer insides. The minute a rider enters the aircraft, what strikes him is the bold usage of ruddy colour and leather. Including the province of the art GPS proctor attached in front every place along with their amusement appliances.

Cleanliness inside the aircraft: All the aircrafts are good maintained for cleanliness and a pleasant experience.

Internal Analysis of Kingfisher Airlines

SWOT Analysis

Strengths

Operating in a niche market: domestic luxury section

“ Kingfisher ” itself is a good established trade name

The client service provided is personalised and exceeding

Highly trained and attractive staff.

Failing

Unable to bring forth expected returns on the investings

Investings are more than turnovers, high break-even point

Tonss are lesser than that of its biggest rival Jet Airways

Opportunities

Aviation industry is a turning industry

Large figure of international untapped paths

Growth in the disposable income

Menaces

Fierce competition from good established intl. air hoses

Major rise in fuel monetary values

Cost film editing has become a premier demand in the air power industry due to the penchant of low cost bearers

Drawbacks of recession

External Analysis of Kingfisher Airlines

Plague Analysis

Political

India ‘s political environment – Tension with Pakistan, Government ‘s inability to command issues ( riots etc )

September 11th – immense bead in air traffic due to safety and security concerns

Trade dealingss with other states have to be good

Economic

Recession- air hoses are considered as a luxury

High operation costs due to low demand

Resulted in puting off employees

Social

Peoples from varied income groups have to be catered

Finish, sorts of nutrient served have to be chosen carefully

Technological

Use of Internet- online ticket engagement, updated flight information & A ; handling of client ailments.

Restructuring the bing airdromes to universe category entreaty

Integrated Selling Plan for “ Kingfisher FIRST ”

Kingfisher Airlines introduced Kingfisher First in 2006 offering first category service at concern category menus. It had its ain personal gentleman service on the land to help the First category riders from luggage managing to embarkation, sole sofas with private infinite, accompanies with refreshments and music. In Kingfisher First each and every service has been designed to flawlessness. Culinary plants of art with an sole three class menu complete with a kingfisher scintillating welcome drink, signature sweet and newly brewed java on board, first service experience at the custodies of a superbly trained and hand-picked cabin crew/models.

Kingfisher First cabins includes a societal country consisting a fully fledged saloon staffed with a barman, a break-out siting country merely nearby fitted with two sofas and saloon stools, a fully fledged chef on board the aircraft and any-time dining. A turn-down service includes the transition of the place into a fully-flat bed. Even though Kingfisher First is an impressive combination of outstanding selling mix, there is still one major drawback the overall air hose is posed to, which is their recent entry in to the international market. Even though Kingfisher Airlines has been ruling their domestic air for rather a long clip, with their cutting-edge engineerings and services, in the international market they have to come up with much efficient selling and operational schemes against similar rivals in order to increase gross revenues and addition market portion.

Kingfisher Airlines plans to set up itself as a niche participant in the long-haul market of concern travel. Below are some of the selling schemes that could take to successful acknowledgment of the air hose internationally:

1 ) Gross saless and Marketing Strategy

Corporates: Kingfisher First is a concern to concern air hose. It should concentrate its attempts on aiming corporate travel directors straight through a strong gross revenues force, partnerships with recognition card companies, or other entities that have entree to corporate clients. Kingfisher First should offer flexible pricing to accommodate companies ‘ travel demands.

End-users: In order to pull the traveler straight, Kingfisher First ‘ selling scheme should concentrate on the life style and convenience instead than monetary value because in many instances monetary value is non the primary issue for the concern traveler. Kingfisher First should merely utilize electronic tickets which should be distributed through agents, the Internet, and our call centre. Kingfisher First should besides administer through travel agents as they still have a important place in the corporate market.

Other recommended schemes include: –

2 ) Management and Culture

Blending experient air hose professionals with a immature originative direction squad should be a successful combination which should continuously look for invention while keeping a high degree of professionalism. Geting the right combination should be the key in put to deathing this venture successfully. The company should besides concentrate on constructing a strong corporate civilization that should assist to distinguish itself from the competition and prolong a high degree of motive while keeping cost control.

3 ) Strong Gross saless squad

Kingfisher First should market its services to companies straight. Its ability to get corporate clients should be highly of import to the success of the venture. Kingfisher First should offer price reductions for volume travel and should besides spouse with selected hotels in order to offer all-in bundles.

4 ) Low Cost Operation ( Reducing their scope of fleet )

As a new air hose, Kingfisher First should hold a important cost advantage over the bing air hoses that have big operating expense disbursals. By concentrating on a individual type of aircraft, a individual category of travel, and ab initio a individual path, systems should be simple and costs should be kept to a lower limit.

5 ) Low Break-Even Point

By runing a Boeing B757, Kingfisher First should hold lower operating costs and a low break-even point ( 50 passengers/50 per centum burden factor ) significantly cut downing the hazards associated with traditional air hoses. Concentrating on a individual aircraft type enables the company to minimise the costs of preparation and care. With such a low break-even point, Kingfisher First should be able to do it through economic downswings with less hurting than its rivals. It should besides enable Kingfisher First to see medium and low denseness paths on a long-haul footing offering more point to indicate services.

6 ) The Internet

Maximizing the potency of the Internet should be the best tool in maintaining low distribution and administrative costs. Kingfisher First should hold a strong Internet presence and should utilize the Internet for client interaction every bit good as internal maps.

Financial Profile of Kingfisher Airlines

Net income loss history

A

Mar ‘ 10

Mar ‘ 09

Mar ‘ 08

Jun ‘ 07

Jun ‘ 06

Income

Operating income

5,067.92

5,269.17

1,456.28

1,800.21

1,285.42

Expenses

Material consumed

40.89

51.19

43.79

45.94

36.73

Manufacturing expensesA

2,911.81

3,715.47

1,297.51

1,597.06

1,050.93

Forces disbursals

689.38

825.42

244.96

247.72

163.04

Selling disbursals

687.02

683.82

85.00

17.90

13.48

Administrative disbursals

489.10

546.47

110.20

154.00

134.68

Expenses capitalized

Cost of gross revenues

4,818.20

5,822.36

1,781.46

2,062.61

1,398.86

Operating net income

249.72

-553.19

-325.17

-262.40

-113.44

Other repeating income

72.08

594.43

48.64

29.98

8.45

Adjusted PBDIT

321.80

41.24

-276.54

-232.42

-104.98

Fiscal disbursals

2,245.59

2,029.33

434.44

466.05

250.72

DepreciationA

162.80

133.20

18.28

17.67

13.34

Other write offs

54.49

38.39

18.31

26.25

18.94

Adjusted PBT

-2,141.08

-2,159.68

-747.57

-742.39

-387.99

Tax chargesA

-770.69

-546.38

-494.45

3.40

3.75

Adjusted PAT

-1,370.39

-1,613.30

-253.12

-745.79

-391.73

Non repeating points

-405.38

4.47

64.98

312.12

51.19

Other non hard currency accommodations

31.28

-0.97

14.09

Reported net net income

-1,744.49

-1,608.83

-189.10

-419.58

-340.55

Earnigs before appropriation

-4,321.08

-2,576.59

-967.76

-778.65

-359.08

Equity dividend

Preference dividend

Dividend revenue enhancement

Retained net incomes

-4,321.08

-2,576.59

-967.76

-778.65

-359.08

Balance sheet

A

Mar ‘ 10

Mar ‘ 09

Mar ‘ 08

Jun ‘ 07

Jun ‘ 06

Beginnings of financess

Owner ‘s fund

Equity portion capital

265.91

265.91

135.80

135.47

98.18

Share application money

7.48

8.11

10.09

Preference portion capital

97.00

97.00

Militias & A ; surplus

-4,268.84

-2,496.36

52.99

249.23

125.95

Loan financess

Secured loans

4,842.43

2,622.52

592.38

716.71

448.16

Unbarred loans

3,080.17

3,043.04

342.00

200.00

3.50

Entire

4,024.15

3,540.21

1,133.26

1,301.41

675.80

Uses of financess

Fixed assets

Gross block

2,048.14

1,891.80

322.33

340.77

247.33

Less: reappraisal modesty

Less: accumulated depreciation

493.62

316.29

43.55

33.74

16.40

Net block

1,554.51

1,575.52

278.78

307.03

230.93

Capital work-in-progress

980.61

1,630.95

346.25

357.62

286.53

Investings

0.05

0.05

0.41

0.41

Net current assets

Current assets, loans & A ; progresss

5,298.13

4,189.37

1,188.41

1,063.68

558.83

Less: current liabilities & A ; commissariats

3,954.80

3,860.18

696.83

456.09

439.98

Entire net current assets

1,343.34

329.19

491.58

607.59

118.85

Assorted disbursals non written

145.64

4.51

16.64

28.75

39.08

Entire

4,024.15

3,540.21

1,133.26

1,301.41

675.80

Fig 1: KFA ‘s stock public presentation for the twelvemonth 2010 ( May to November ) .

Decision

In decision Kingfisher Airlines is one of the largest and most edged border air hoses non merely within its state but internationally every bit good. It has strong confederation with many other air hoses in air power sector. Kingfisher Airlines offers universe category services to the client at a nominal rate. The national bearer takes huge pride in holding successfully played a polar function in doing assorted aspects of India popular with the people of the universe and moving as the state ‘s cultural embassador. The air hose uses the services of one of the advanced programs been operated in the universe. Last, Kingfisher Airlines is functioning its client in an apprehended manner and traveling to be in the list of best services suppliers in approaching old ages.

Bibliography

Books-

Kotler, P Armstrong, G 2004, Principles of Marketing, 10th edition, Pearson Education, Inc.

Clow, Kenneth E. , Baack, D 2007, Integrated Advertising, Promotion, and Marketing Communications, 3rd edition, Pearson Education Inc.

Spulber, Daniel F 2004, Management Strategy, McGraw-Hill/Irwin, London.

Websites-

www.flykingfisher.com

www.theubgroup.com

www.kingfisherair.in

www.iloveindia.com

hypertext transfer protocol: //money.rediff.com/companies/kingfisher-airlines-ltd/

www.businesswireindia.com

www.thebusinessedition.com

www.findarticles.com

www.mapsofindia.com

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