Assignment 3

SALES AND PROMOTION MANAGEMENT

KINHGFISHER AIRLINES

Submitted By: Submitted To:

SONU KUMAR Sir Abhishek dutta
Reg No:- 10905481 (FACULTY OF LIM)

Roll no:-RT1903A22
Kingfisher Airlines is a private airline based in Bangalore, India. Currently, it holds the status of
India's largest domestic airline, providing world-class facilities to its customers. Owned by Vijay
Mallya of United Beverages Group, Kingfisher Airlines started its operations on May 9, 2005,
with a fleet of 4 brand new Airbus - A320, a flight from Mumbai to Delhi to start with. The
airline currently operates on domestic as well as international routes, covering a number of major
cities, both in and outside India. In a short span of time, Kingfisher Airlines has carved a niche
for itself in the civil aviation industry.

History:

Kingfisher Airlines proved to be a stiff competition for other domestic airlines of India, with its
brand new aircraft, stylish red interiors, stylishly dressed cabin crew and ground staff. The airline
introduced in-flight entertainment (IFE) systems, for the first time to Indian consumers. The IFE
systems were provided on every seat, even on the domestic flights. The airline offers attractive
services to its on board passengers. Years following its inception proved to be beneficial for the
airline, in terms of its booming business, with a good track record of customer satisfaction.
However, it faced a worsening economic scenario in 2008.

Recession:

In 2008, due to the prevalent economic downturn, the civil aviation industry faced the worst
period in its history. It was the time, when air passenger traffic started dripping, and the aircraft
fuel prices went sky rocketing. As a result, Kingfisher Chairman Vijay Mallya and his Jet
Airways counterpart Naresh Goyal announced an alliance, after a meeting. According to the
alliance, both the airline companies decided to implement code-sharing on both domestic and
international flights. It was a step to reduce the expenses. Subsequently, frequent flier programs
were announced by both the airlines, namely King Club and Jet Privelege.

Unique Services:

Kingfisher Airlines offers several unique services to its customers. These include personal valet
at the airport to assist in baggage handling and boarding, exclusive lounges with private space,
accompanied with refreshments and music at the airport, audio and video on-demand, with extra-
wide personalized screens in the aircraft, sleeperette seats with extendable footrests, and three-
course gourmet cuisine.

Fleet:

Kingfisher Airlines was the first airline in India to operate with all new aircrafts. It was also the
first airline in the country to order the Airbus A380. Kingfisher Airlines currently operates ATR
42, ATR 72 and Airbus A320 aircraft for domestic and Airbus A330s for international services.
In the present time, the airline operates with a fleet of 74 aircrafts, which include 25 Airbus
A320-200 aircraft, 6 ATR 42-500, 27 ATR 72-500, 3 Airbus A319-100, 8 Airbus A321-200 and
5 Airbus A330-200. Delivery of A380s is due in 2010 and A350s in 2012.

Destinations:

Kingfisher Airlines plies regular flights from the major cities of India, including Delhi, Mumbai,
Bangalore and Kolkata. The airline also covers regional destinations from the four zones of India,
including Chennai, Hyderabad, Pune, Port Blair, Rajahmundry, Tirupati, Vijayawada,
Visakhapatnam, Agartala, Dibrugarh, Guwahati, Jorhat, North Lakhimpur, Silchar, Patna,
Chandigarh, Raipur, Goa, Ahmadabad, Bhavnagar, Bhuj, Kandla, Dharamsala, Kullu, Simla,
Jammu, Leh, Srinagar, Jamshedpur, Ranchi, Hubli, Mangalore, Calicut, Cochin, Trivandrum,
Agatti, Indore, Jabalpur, Aurangabad, Kolhapur, Latur, Nagpur.

Nanded, Nasik, Solapur, Imphal, Aizawl, Dimapur, Bhubaneswar, Amritsar, Jaipur, Jodhpur,
Udaipur, Coimbatore, Madhurai, Trichi, Tuticorin, Dehradun, Lucknow, Varanasi and Siliguri
are the other regional destinations covered by Kingfisher Airlines. The airline also plies flights to
Dhaka and Colombo. The airline is soon going to ply flights from Kolkata to Bangkok. It will
also provide its passengers to take a flight from Mumbai to international destinations including
Singapore, Hong Kong, Bangkok, Colombo and Dubai. It is also going to start flights from Delhi
to London, Dubai and Bangkok. The airline is planning to increase its international presence, by
plying flights to Kuala Lumpur, Malé, Lahore and Karachi.

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SALES PROMOTION:
Kingfisher Airlines is follow domestic low cost carriers (LCC), it is mainly advertise the low
base ticket prices and promote advance bookings to avoid poor occupancy. Also to improve the
brand recall, promotional incentives are given out.

"Sales promotion includes these activities other than personal selling, advertising and publicity
that stimulate consumers purchasing and dealers’ effectiveness such as displays, shows and
exhibitions demonstration and various non recurring selling efforts not in the ordinary routine."

There are two kinds of sales promotion:

(a) Consumer Sales Promotion: Activities intended to educate or inform the

consumers and those intended to stimulate the consumers.

(b) Dealer Sales Promotion: Activities to increase the interest and enthusiasm of dealers
and distributors.

Consumer Sales Promotion Dealer Sales Promotion

 Sample Dealer Discount

 Price off Dealer Gift

 Quantity deals Dealer Contest

 Coupons Dealer Training

 Contest Trade Fair & Exhibitions

 Sweep stakes Point of Sale Display

 In product gift Dealer Meet

 Out product gift Corporate Advance

  Bonded offer

 Cross Promotion

Price Discount Sales Promotion:

The fares which Kingfisher Airlines offers right now are not merely promotional. We intend to
keep fares as low as possible and continue to target railway passengers as well as those who
typically travel by Volvo buses, he said. The civil aviation industry is growing at a rate of 26 per
cent and that low cost carriers still have enough space to grow, he said. “The market is still
untapped and is still expanding. There are enough middle class railway passengers in India.

Scheme free Travel

Under the Free Fares scheme, the airline has offered passengers 10,000 free tickets on these
sectors on a first-come-first-serve basis. Tickets bookings will commence on December 7 and
will last till stocks are available. Passengers availing of the scheme would get a zero fare and will
only have to pay taxes amounting to Rs 221.

      The airline has announced a daily service on the Mumbai-Jaipur-Mumbai route. Its existing
Mumbai-Coimbatore daily service will be extended to cover Chennai, Hyderabad, and
Bangalore. The Free Fares scheme was earlier offered to mark the launch of its initial four
destinations - Mumbai, Ahmadabad, Coimbatore, and Goa.      

 2 Days tour package of Maisoor in Banglore with my trip 3999

Online Solution Sales Promotion: 

At present, Kingfisher Airlines tickets can be bought through travel agents, customer care
centres, mobile phones, the Internet, Tata Indicom centres and other channel partners. The airline
has signed agreements with the LPG stations of Bharat Petroleum and Hindustan Petroleum to
sell tickets.
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Kingfisher Airlines ways using mainly price discount offer because

A low-cost carrier or low-cost airline is an airline that generally has lower fares. To make up for
revenue lost in decreased ticket prices, the airline may charge for extras like food, priority
boarding, seat allocating, and baggage etc.

The term originated within the airline industry referring to airlines with a lower operating cost
structure than their competitors. While the term is often applied to any carrier with low ticket
prices and limited services, regardless of their operating models, low-cost carriers should not be
confused with regional airlines that operate short flights without service, or with full-service
airlines offering some reduced fares.
Passengers flying on domestic flights of Kingfisher Airlines during the month of September are a happy
lot.

 Scheme on off season

 Discount offer
 Free trip

I suggest some sales promotion technique for KINGHFISHER AIRLINES

Sales promotion is any scheme or proposal undertaken by a firm to promote sales of its
products/services. There are various kinds of sales promoting techniques

Customer Relationship Management (CRM) 

CRM is a method used to learn about customer behavior and their needs. Kingfisher Airlines is
focusing on building strong customer relationship. Almost every company is using customer
information in managing relationship with them. Loyalty program is one such initiative. The
airline industry puts loyalty programs in use brilliantly. Even before the CRM theory was
evolved the Kingfisher Airlines industry introduced loyalty cards.

 Collect individual customer information

 Find out what each customer is worth

 Treat different customers differently

Mobiles and internet 

Sales promotion can be done through mobiles and web sites. For instance Kingfisher Airlines
ticket has unique codes on them. Customers have to SMS this code to know if they have won a
free gift or tour.

Free gifts:

Free gifts are given on the sale of a ticket. The customer buys the ticket lured by the offer.

 Price Discounts:

The price that is quoted to customers is known as the list price. This price is often discounted for
the benefit of the distribution channel members or customers in general.
Cumulative quantity Discount:

Instead of purchasing in large no. of ticket should give one ticket free.

Seasonal Discount:

Discount is offered during a period when the sales drop, for instance off-season discount in air-
fares. Long distance and wireless service providers may offer discounted rates for usage after
midnight. So that maintains sales throughout year.

Joint promotions:

Kingfisher Airlines often gives away toys and other merchandise relating to a with purchase of
tickets a promotional.

Tour:

Tour of is offered for free especially historical palace/ tourist palace.

I suggest these offers, because…..

Discount, Gift, Free tour, Seasonal offer, Promotion code etc

 Discount offer will increase sales as well as market share of Kingfisher Airlines.
Sometime Airline should provide travel only on Taxes charge.
 These discounts increase the loyalty of the customer.
 Free tour offer on historical for permanent customer it will also increase loyalty of the
customer.
 Joint promotion will also uplift the brand as well as increase satisfaction level of the
customer.
 In the middle class people also want to travel in Air Lines but due to cost of the traveling
is very high so they not travel in the Air lines. So according to my point of view if the
Kingfisher Airlines reduces the cost of maintains then they provide the chief services

 Focus on middle class people.

 Provide proper knowledge to customer.
 Focus on lower income people.
 Provide better service in term of lowest cost.

The overall performance of the company in India is good. So we say that overall performance of
a service sector is depends on one thing that is better service. I feel that there is need for
increasing or boosting the promotion of Kingfisher Airlines in the market. Kingfisher Airlines
wants to show their strong presence in Indian market.

BIBILIOGRAPHY:
wwwkinghfisherairlines.com

www.wikkipedia.com

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