INTRODUCTION

KFA started its operation in India on may,2005 positioned itself as budget carrier airways Costs lower than economy class travel on full service airlines Better value proposition Mallya believed that providing better services in a strategized manner will help in companys growth KFA had a fleet of nine aircraft and operated on 56 routes KFA was voted as the thirds most successful brand launch of 2005 in the business standard annual brand derby

Various others competitors rose up like Spice jet and Go air Acquisition of jet airways with air Sahara became dangerous for KFA and other airways Challenges which affected airlines industry includes: A) high aviation turbine fuel prices B) Congestion problem at high traffic airports KFA plans to launch kingfisher express" to tap into the growing LCC segment

BACKGROUND

Government of India nationalized 9 airline companies with the air corporation act,1953 In 1995,six private airlines accounted for more than 10%of the domestic air traffic In 2003 Air Deccans low fare ensured that air travel was accessible to middle class Indian After Air Deccan lowered its fair other competitors also followed the same strategy. In 1990 UB group launched a non government commercial air service and it was the first one to launch it

FUNLINER EXPERIENCE

New aircraft called the kingfisher funfilers was introduced by kingfisher Aircraft had in flight entertainment system with well interior design It was a single class which combined the experience of business class with economy They were thee first to address passengers as guests Seats were more comfortable with more leg space and adjustable headrest ,inflight entertainment through personalized wide screen and headphones Sophisticated communication and navigation security system were provided Not much of promotion was required as people were well versed with the airlines KFA was the first Indian airline to have a hi tech aeronautical system which connected the ground operation and allowed real time monitoring of each aircraft KFA also used a combination of purchased and leased aircraft in its fleet

KFAS Pricing

Budget Airline and not an LCC Fares above those of LCC-Air Deccan , Go Air , Spice jet but lower than economy class fares of Jet , Sahara , IA Increased flexibility in operations-multiple fare options and auctioning of tickets on all traffic routes

KFAS Promotional Strategy

Showcased the airline as the new flying experience Advertisement hoardings at airports KFAS special offers being publicized at Mumbais INOX multiplexes Promoted airline in various events-fashion shows , celebrity golf matches , New Year parties , musical nights

Contd . .

Offical travel airline for the cast and crew of Mangal Pandey and giving a red carpet welcome to all the guests who attended the premiere of the movie UBs group monthly magazine Pegasus published information about KFA Free air tickets to celebrities who came to Bangalore for Tiranga concert on Aug 15,2005

Contd . .

Attractive offers to promote sales- King Card in association with ICICI bank Conducted events like- Kingfisher flying face of the month contest In flight selling of merchandise at discounted prices Free tickets were given to guests in months of August and September called as Chill Times Offer

Contd . .

Introduced Power Flyer Offer targeting travellers who took same-day return flights Under this scheme , Rs.1000 were given off to the travellers who took same-day return flight with KFA No Compromise Scheme-Single fare for every seat on every flight for limited number of time

Contd . .

Kingfisher Airlines + Hotel Super Saver scheme 60 % travel and hotel costs could be saved through this scheme Special fares for people serving in Indian Army , Central government , other government employees and PSUs employees in service(offer valid for booking and travel upto March 2006)

Reservation and Support Services

Online booking of tickets-(www.flykingfisher.com) at KFA website , at any KFA Office or through an approved travel agent Home delivery of tickets on demand Introduced King Mobile service to keep guests updated about flight schedules and flight status through instant mobile alerts Due to increase in competition from LCC and JetSahara acquisition KFA doubled the commission from 5% to 10%

PEOPLE

Non-poaching alliance Flight attendants called flying models Attire of cabin crew designed by Manoviraj Khosla Mallya Kingfisher Airlines Ltd. Has a first class management team not just at the top most level but also in the second line. This is a part of the UBs Groups commitment to human resources"

KFAs Expansion Plans

June-2005 First Indian Carrier to place an order for A380s November 2005 Dubai Air Show Concentrated on increasing frequency of its flights Bid to buy Sahara in November 2005 Plans to make an IPO & raise around US$200 million- fleet acquisition & route expansion

Set up Kingfisher International Inc. (KII) KFA decided to increase its dollar revenues by targeting the NRI passengers

Will Good Times Last?

Targeting growing middle class Maintaining good passenger load factor kingfisher First an upgraded business class service Challenges faced by Aviation Industry

Questions . .

Question : 1) Critically analyze the key points of Kingfisher Airlines marketing strategy that has contributed to its initial success.

Answer : 1) Kingfisher Airlines strategy was based on strategies of Jet Blue Airways in providing value added services at economical prices Kingfisher Funliners-an eye catchy tagline to represent fun-filled experience Kingfisher Class combines the experience of economy and business class

Contd . .

More comfort in terms of larger seats with plenty of legroom , adjustable headrests , in-flight entertainment through personalized wide screens and headphones Budget Airline and not LCC Promotional Strategies-advertisement hoardings , publicity in multiplexes , issuing free tickets , special offers

Contd . .

Providing reservation and support services like ease of booking tickets online at KFAs website or through travel agent Providing SMS service to inform customers about flight schedules and status Increase in commission of agents to 10 % from 5% These were the key points(marketing strategy) that has lead Kingfisher to its success and therby , giving a stiff competition to its rivals

Question 2

In the context of the changing environment for the air travel sector in India, what strategies must Kingfisher adopt in order to realize its vision of becoming Indias largest private airline by 2015?

Answer

Downsize Negotiate Dissolve Replace Embark