A Competitive Analysis Of Kingfisher Airlines Tourism Essay
To research and analyze how kingfisher airlines has retained one of the top position in a highly competitive market like India. To find out what makes them special from all other airlines in India. To find out how kingfisher airlines compete with leading airlines like Air Indian and Jet. To find out what customer tactics they used to bring more customers to the organization.
Content summary
To approach by doing SWOT and PEST analysis of the company by looking through the magazines and websites available on company.
In order to analyze the company’s strategy I will be doing 7p analysis.
In order to make my objectives a true I will be carrying out an interview with father’s friend who is working in kingfisher airlines.
I will be doing a case study on how kingfisher airline is different from and India Airlines.
I will be also proposing some new strategies which can help the organization to improve their performance more
Table of contents
Page
Table of Content 3&4
Objective 2
Content summary 2
Introduction 3
About the Company 5
History 5
Achievements 6
Marketing strategy 7
PESTEL Analysis 8
Political 8
Economical 8
Social 8
Technological 8
Environmental 9
Local 9
7 P’s Analysis 9
Product 9
Promotions 10
Price 10
People 10
Place 10
Physical evidence 11
Process 11
SWOT Analysis 11
Strengths 11
Weakness 12
Opportunities 12
Threats 12
Comparison Kingfisher VS Indian Airlines 12&13
Suggestion and recommendation 14
Appendix 14
Questionnaire
References 15
Introduction
Kingfisher Airlines Limited is a major Indian airline. Kingfisher operates more than 400 flights a day and has a network of 72 destinations, with regional and long-haul international services. Kingfisher Airlines, through one of its holding companies United Breweries Group, has a 50 percent stake in low-cost carrier Kingfisher Red, formerly known as Air Deccan.
Kingfisher Airlines is one of 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. In May 2009, Kingfisher Airlines carried more than a million passengers, giving it the highest market share among airlines in India.
Kingfisher has its registered office in the UB Tower in Bangalore and its head office in the Kingfisher House in Mumbai.
History
The airline started operations on 9 May 2005, following the dry lease of four brand new Airbus A320-200 aircraft. Its first flight was from Mumbai to Delhi. At the launch of the airline, Dr. Mallya said that he is “committed to achieving our ambition of making Kingfisher Airlines India’s largest private airline both in capacity and market share by 2010.”
The airline ushered in a new era of luxury in India’s domestic aviation sector with its brand new aircraft with stylish red interiors, and smartly dressed crew and ground staff. Kingfisher was the first Indian airline to have in-flight entertainment (IFE) systems on every seat even on domestic flights. All passengers were given a “welcome kit” consisting goodies such as a pen, facial tissue and headphones to use with the IFE system. Initially, passengers were able to watch only recorded TV programming on the IFE system, but later an alliance was formed with Dish TV to provide live TV in-flight. And in a marked departure from tradition, Kingfisher Airlines decided to have an on-screen safety demonstration using the IFE system.
On 14 July 2008, Kingfisher unveiled its first ever Wide-body aircraft, a Airbus A330-200 at the 46th Farnborough Air show held in July 2008. Kingfisher’s first Airbus A330-200 was widely billed as the best A330-200 ever built by Airbus. On 3 September 2008, Kingfisher started its international operations by connecting Bangalore with London.
Achievements
Kingfisher Airlines has received three global awards at the SKYTRAX World Airline Awards
Named Best Airline In India / Central Asia; Best Cabin Crew – Central Asia
Kingfisher RED named Best Low Cost Airline in India / Central Asia
NDTV Profit Business Leadership Award for Aviation
awarded to Kingfisher Airlines by NDTV twice in two years
India’s only 5 Star airline, rated by Skytrax and 6th airline in the world
to be certified as 5 star airline by Skytrax
Ranked amongst India’s Top Service Brands of 2008
ranking by Pitch magazine
Voted as India’s Favourite Airline
in a survey conducted by an independent research firm with 46% votes compared to others
Rated as Asia Pacific’s Top Airline Brand
in a survey conducted by TNS on Asia Pacific’s Top 1,000 Brands for 2008
Brand Leadership Award
in the service and hospitality segment against several acclaimed hotels, leading banks and other airlines
Economic Times Avaya Award 2006 for Excellence in Customer Responsiveness
award is presented by the highly acclaimed Business Daily, Economic Times
India’s No. 1 Airline in customer satisfaction
Business World
Rated amongst India’s most respected companies
Business World
Rated amongst India’s 25 Innovative Companies
in a survey conducted by Plan man Media in 2006
The Best Airline and India’s Favourite Carrier
in a Survey conducted by The Times of India
Service Excellence 2005-2006 for a New Airline
by Skytrax, a UK based specialist global air transport advisor
Ranked Third in the survey on India’s Most Successful Brand launch of 2005
Under the Brand Derby Survey conducted by India’s leading business daily – Business Standard
Busiest Brands of 2005
ranked amongst the Top Ten busiest brands of 2005 and 2006 across product categories, in the survey conducted by agency faqs and The Brand Reporter
Best New Airline of the Year Award for 2005
Centre for Asia Pacific Aviation (CAPA) Award in the Asia-Pacific and Middle East region
Marketing strategies
Kingfisher Airlines has a clearly defined target audience- SEC A, SEC B+ (socio-economic class) in the age group of 25-45 years of age.
Kingfisher Airlines offers brand new aircraft, designer interiors, gourmet cuisine and in flight-entertainment (there are five channels of FUN TV and 10 channels of Kingfisher Radio, which are personalized).
Communicate with guests at multiple touch points. They use all media of communication television, print, radio, outdoor, malls, multiplexes, clubs, pubs, in-flight etc. The guests are constantly informed of their new offers.
They offer tickets to theatre screenings, fashion shows, sports screenings etc to their frequent travellers (club members).
Their Partners Program has been very successful. They have tied up with the best of brands across industries. Tata Tetley, Pepsi, Microsoft, Inox, Kenzo , IFB, Taj, Park Hotels and Oxford book stores have been some of leading partners.
PESTEL Analysis
Political
Foreign airlines are not allowed to buy a stake in domestic airlines.
International route regulations
Closing down of domestic airports
Open sky policy
Economical
Contribution to the Indian economy
Rising cost of fuel
Investment in the sector of aviation
The growth of the middle income group family affects the aviation sector.
Shortage of the infrastructure capacity
Social
Development of cities leads to better services and airports
Employment opportunities
Safety regulations
The status symbol attached to a plane travel.
Technological
The growth of e-commerce and e-ticketing
Satellite based navigation system
Modernisation and privatisation of the airports
Developing green filed airports with private sector for example in Bangalore the airport corporation limited.
Environmental
The increase in global warming
The sudden and the unexpected behaviour of the atmosphere and the dependency on whether
Shortage of the infrastructural capacity
Tourism saturation
Legal
Bilateral treaties
Airlines acquisitions and the leasing cost
In the United States, low-cost airlines often operated from small airports that charge lower fees and that did not suffer from the congestion at large airports
In India, however, government policy did not allow the creation of airports closer than 150KM from each other, and the old airports at Bangalore and Hyderabad were closed down when the new one started.
7 P’s
Product
Fleet size
Aircrafts
International foray
Promotions
Advertisements
Magazines and newspaper ads
Exposure at non-corporate events
Participation at international airs hows
Endorsing celebrities like Katrina Kaif and Deepika padukone
Price
Dynamic pricing model – multiple fare levels
Uniform rules
No hidden restrictions
Pricing models – eight different levels
Discounts provided from time to time
People
Backbone of the brand
Extensive trainings
Hospitality industry and consider their customer as guest
Interpersonal skills, aptitude, and service knowledge
Place
Online booking (official site)
Online booking – Yatro.com, make my trip.com, ezeego1.com
Credit cards and debit cards payment
SMS/call
Outlets in every major city and at every airport across the country
Physical evidence
Personal valets
Exclusive lounge space
Hi! Blitz
Gourmet cuisine
World class cabin crew
Kingfisher radio
Process
Booking the ticket – online booking or telephone – booking or from any of the kingfisher outlets and private agencies.
SWOT Analysis
Strength
First airline with full new fleet of aircraft
Quality hospitality provided to customers.
Route rationalization.
Already having training academy.
Weaknesses
Service delivery to metros and other big cities
Yet not in a high profit.
High ticket pricing
Opportunities
Under penetrated domestic market
Chances International market
Untapped air cargo market
Expanding tourism industry
Threats
Existing operators
Infrastructure issue
Fuel price hike
Economic slowdown
Kingfisher VS Indian Airlines
Areas
Indian airlines
Kingfisher Airlines
Reservation
Ticket can be booked by ringing or visiting the office.
As soon as waiting list ticket get confirmed they will call the customers on the given contact number
Passengers can make the booking first and purchase the ticket later
Ticket can be cancelled over phone or through fax 24hr before the journey
By the help of user friendly websites
Kingfisher airline office
Authorized agents
Payment can be made by the debit card, credit card, payment at kingfisher airlines office, credit note
Kingfisher airline provides the home delivery of tickets and maintains direct relation with the customers.
Fares
Special fares offered for army forces, war disabled officers, war widows, blind persons, cancer patients, person suffering from 80% and above locomotive disability.
Concessional fare to senior citizens, students etc.
Fare apply only for carriage from airport at the point of origin to the airport at the point of destination
It has 30 to 40 % lower ticket coast compared to other carrier operating in the country
Meals
Indicate the personal meal preference at the time of booking to ensure correct meal on board the flight
Special meals: provided to passengers Indian vegetarian, western vegetarian, Hindu non- vegetarian, children food items etc.
On board
Choose from the readymade food
Business class and economic class
Order what you like – freshly made on board
Equality in class , no differentiation
Low cost
On ground
More waiting time
Satisfactory handling of delays
Less waiting time
Efficient handling of delays
Suggestions and recommendation
Reduce labour cost
Simplify the flight operations
Offer more transparent pricing
Get smart on fuel
The process of acquiring spice jet if complete would make kingfisher the larget player in the aviation industry
Different modes of pricing should be taken care of
Needs to change brand perceptions
Gain optional efficiencies through alliances as with Jet Airways
Fleet size expansion
Partnering with Jet Airways and some depending brands.
Appendix
As part of the report preparation I visited my dad’s friend who is working in kingfisher and I had an interview with him. I went through many magazines who wrote articles about kingfisher’s and Dr. Mallya’s success. I have talked with some of my friends who got chance to fly in kingfisher. They explained to me the facilities they got and their rating to the flight travel.
Questionnaire
As a supplier, what major trends have you witnessed in the manner consumers in India buy travel especially air ticket?
How would you describe your target audience? How do you assess the current positioning of Kingfisher Airlines?
Companies are going about brand activation at multiple consumer touch-points. How are you balancing your offline and online marketing initiatives?
How tough is it in the current environment to build connect with consumers?
How successful has been your Partners Program, a forum where like-minded brands to Kingfisher Airlines can come on the same platform and achieve respective marketing objectives?
