INDIAN INSTITUTE OF FINANCIAL

MANAGEMENT, INDORE

Marketing
Plan of
Kingfisher
Airlines
Submitted To:Submitted By:Prof. Prakher Sharma
Ankit Agrawal
Devendra Thakur

Airline Industry in India

One of the fastest Growing Aviation market.

There are approximately 1 billion people & only about 0.05% of
them fly.
More and more middle class families now prefer Air Travel to
Traditional Rail travel.
The Indian Travel market is expected to triple to $51 billion by
2011 from 16.3 billion in 2005-06.
AAI totally manages 127 airports
- includes 13 International airports;
- 7 custom Airports;
- 80 Domestic airports;
- 28 Civil enclaves.
Over 1100 registered aircrafts.
By 2020, Indian airports are estimated to handle 100 million
passengers including 60 million domestic passengers.
The amount of cargo handled will fall in the range of 3.4 million
tones

History of Indian Airlines

1911 First Commercial flight Airmails from Allahabad to

Naini(10 km)
1932 The Aviation Department of Tata Sons ltd. established
1938 Tata Airlines(successor to Aviation division of Tata Son)
1946 Tata Air Lines converted into a public Company and
renamed as Air India Limited
1948 Air India International incorporated
1953 Nationalization of Aircraft Industry
Air India(serving the international sectors)
Indian Airlines(serving domestic sectors)
Deccan Airways, Airways India, Bharat Airways,
Himalayan Aviation, Kalinga Airlines, Indian National
Airways and Air Services of India
1986 Private Sector Players permitted as Air Taxi operators
Players including Jet, Air Sahara, NEPC, East West,
Modiluft, etc started service

1990
1994
2003
2007

Open sky policy

Private Carriers permitted to operate scheduled services
Entry of low-cost carriers
Merger of Indian Airlines into Air India
Acquisition of Air Sahara by Jet Airways
2008 Kingfisher acquired 49% stake in Deccan Aviation

Regulatory Authorities
Ministry of Civil Aviation
Responsible for the formulation of policy, development
and regulation of Civil Aviation. Its functions also extend to
overseeing airport facilities, air traffic services and carriage
of passengers and goods by air.
Other Attached/Autonomous Organizations:
Directorate General of Civil Aviation (DGCA)
Promote safe and efficient Air Transportation through
regulation and
proactive safety oversight system
Bureau of Civil Aviation Security (BCAS)
Regulatory authority for civil aviation security in India
Airport Authority of India (AAI)
Accelerate the integrated development, expansion and

Major Players
Spice Jet

Air India

Indigo

Go Airways

Jagson Airlines

Alliance Air

Jet Airways

KingFisher

United Breweries(UB) Group

The UB Group is known as a large USD 2.2 billion corporate
conglomerate with business interests ranging from spirits,
engineering, fertilizers and civil aviation to pharmaceuticals.
They constitute a large global group based in India and
associate with world leaders in order to adopt technologies and
processes, which will enable a leadership position in a large
spectrum of activities. UB Group is an employer of choice for
aspiring professionals who like challenges no matter what the
field or function.
We endeavour to be the most preferred employer wherever we
operate.
The Business of UB Group are:1. International trading
2. Fertilizers
3. Beverage Alcohol
4. Engineering
5. Aviation

Kingfisher Airlines
Dr Vijay Mallya is the
Chairman and CEO of
Kingfisher Airlines.
Kingfisher Airlines Limited
launched scheduled airline
services on May 9, 2005 with
4 daily flights.
Head Quartered at
Bengaluru.
There are tools for mood
lighting such as web chat,
inseat plugins for music,
liveTV with 16 channels on
each seat.
100 percent E-ticket airline.

Board Members

Dr. Vijay Mallya, Chairman & CEO

Capt. G. R. Gopinath, Vice Chairman
Capt. K.J. Samuel
Mr. A.K. Ravi Nedungadi
Mr. Vijay Amritraj
Mr. Anil Kumar Ganguly
Mr. Piyush G. Mankad
Dr. Naresh Trehan
Diwan Arun Nanda
Mr. Ghyanendra Nath Bajpai
Mr. N. Srivatsa, Company Secretary
Mr. A. Raghunathan Chief Financial Officer

Vision
The Kingfisher Airlines family
will consistently deliver a safe,
value-based and enjoyable travel
experience to all our guests.

OUR VALUES

Safety
This is our overriding value. In our line of business, there is no
compromise.
Service
We are all in the hospitality business; we must always seek to
serve our guests and gain their trust, goodwill and loyalty.
Happiness
We seek to build an organisation with people who choose to be
happy, and will endeavour to influence our guests and coworkers to be happy too.
Teamwork
We will succeed or fail as a team. Each one of us must respect
our colleagues regardless of their rank, and we must work
together to ensure our mutual success.
Accountability
Each one of us will be held accountable for the successful
execution of our duties, commitments and obligations, and we
will strive to lead by example.

STP Analysis

Segmentation:
Geographic Segmentation Secondary Hubs- Mumbai, Delhi & Kolkatta.
Focus Cities- Cochin, Pune, Ahmedabad, Hydrabad,
Indore, Jaipur & many more.
International Destinations- London, Colombo, Dubai,
Singapore, Bangkok, Dhaka, Hog Kong, Kuala Lumpur
& Maldives.
Demographic Segmentation Gender- both Male & Female
Social Classes- Age group from 25 to 45 years.
Income Level- Higher and Higher-Middle Income
group.

Targeting:
Kingfisher First Class- company executives
Kingfisher Class- Middle, Upper-Middle, Lower-Upper

Positioning:
Lifestyle Funliners Experience, Designer Interiors
Benefits last time booking facilities, refund in case of
cancellation, In-flight Entertainments and many more
Quality World class service provider, comfortable seats, etc

PESTEL Analysis
Political Regulators:
Directorate General of Civil Aviation(DGCA)
- controls flying Licenses, pilots, certifying aircrafts and
procedures to govern airports & airspace.
Airport Authority of India(AAI)
- Assigned the responsibility of managing National and
International airports and administration through Air Traffic
Control(ATC).
FDI ceiling in Airlines sector is 49% currently.
FDI limits:
- 100% for Greenfield airports
- 74% for the existing airports
- 100% for NRIs.

Economic Factors
Contribution to the Indian Economy
Rising cost of fuel
Investment in the sector of Aviation.
The growth of middle income group family affects the Aviation
sector
Shortage of Infrastructure capacity
Social Factors
Development of cities leads to better services and airports
Employment opportunities
Safety regulations
Technological Factors
The growth of e-commerce and e-ticketing
Mobile and online check-in
Modernization and privatization of airports.
Upgradation of ATC.

Environmental Factors
The increase in the global warming
The sudden and unexpected behavior of the atmosphere and
the dependency on whether
Shortage of the infrastructural capacity
Tourism saturation
Legal Factors
Airlines acquisitions and the leasing cost
Government policy to not allow the creation of airports closer
than 150km from each other like Bangaluru and Hyderabad old
airports were closed down when the new ones were started.

S.W.O.T. Analysis
Strengths

Weaknesses

First airline with full new fleet of aircraft Service delivery to metros and
other big cities
Quality hospitality provided to customers Yet not in profit
Route Rationalization
High ticket pricing
Already have Training Academy
Facing a tough competition from
competitors.
Quality and continuous Innovation

Opportunities

Threats

Under Penetrated Domestic market

Existing Operators
International market
Infrastructure issue
Untapped Air Cargo market
Fuel Price hike
Expanding Tourism Industry
Low Profit Margin

4 Ps Marketing Mix

Product
Fleet Size
Airbus A319- 3no.
Airbus A320- 25no.
Airbus A321- 8no.
Airbus A330- 5no.
ATR 42- 6no.
ATR 72- 27no.
International Foray
- Started business from 3rd September, 2008

Promotion
AdvertisementsHoardings, Brand Ambassadors.
Magazine and Newspaper adsBusiness Outlook, The Economic Times, etc.
Exposure at non-corporate eventSponsorships at Tournaments, etc.
Participation in International Air-shows
Endorsing Celebrities like Katrina Kaif, Yana Gupta &
Deepika Padukone

Price
Penetrated Pricing Strategy
Economic & club premiere fare
Discounted fare for Senior Citizen & Defense Personnel.
US$ Fare & Visit India fare
Night Saver fares

Service

Competitive Pressure

Low cost Carriers

changing the game

Indigo

Price

Place
Online Booking - flykingfisher.com, Yatra.com,
MakeMyTrip.com, ezeego1.com
Payments- Credit Cards & Debit Cards
Detail & Information- SMS / Call
Outlets in every major city and at every airport across
the country.
Covers even the toughest terrains in the country, and the
services ranges from Ahmadabad to Agartala and to the
major cities such as Delhi, Bangalore, and Chennai etc.

Market Share


PORTERs Five FORCE Model
Threat from new
Entrants (Virgin
Atlantic, Qantas
Airways)

Bargaining
Power of
Suppliers

Threat from
Competition(Jet
Airways, Airway
India, Indigo)

Threat from Other

modes of
transports- Railway,
Roadways,
Waterways

Bargaining
Power of
Customers
Eonomic &
demographic
changes
Increasing
awareness
Exposure to
global brands

Problem Identification

Current Indian scenario: Air travel

For majority of people preference-No frills low cost airlines

Threeunique classes of service :

Kingfisher First (Business class)
Kingfisher Class (Premium economy)
Kingfisher Red (Low fare)

Current segmentation based on social class & income level

Social classes: which use full carrier services and those
which use first class services of the railways
Income level: Low cost carrier for those who travel by first
class railway

Problem with positioning

Brand relates to Lifestyle

Suggestions

Remove the flights from low frequency routes.

Reduce the labor cost.
Simplify the flight operations.
Increase Revenue-per-passenger.
Try to focus on smaller aircrafts(50-70 seaters) and fuel
efficient planes for short distance.
For a long term strategy, Internationally focus should be
done so to cater the International market also.
Different modes of pricing should be taken care of.

Kingfisher - 5 Star Airline

Kingfisher is one of only six airlines in the world to

have a five-star rating from Skytrax, along with
Asiana Airlines, Malaysia Airlines, Qatar Airways,
Singapore Airlines and Cathay Pacific Airways.

Awards

Kingfisher Airlines has received 30 awards for

innovation, customer responsiveness and was
voted the Best New Airline of the Year within
months of its launch.

References
Webliography:i. Kingfisher Airlines official site
ii. Google
iii. Slideshare.net
Bibliography
i. Phillip Kotler

Thank You

The Kingfisher
AIRLINES
The
king of good times