A Competitive Analysis Of Kingfisher Airlines Tourism Essay

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 companys strategy I will be doing 7p analysis. In order to make my objectives a true I will be carrying out an interview with fathers 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 34 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 Ps 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 1213 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 Indias largest private airline both in capacity and market share by 2010. The airline ushered in a new era of luxury in Indias 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. Kingfishers 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 Indias only 5 Star airline, rated by Skytrax  and  6th airline in the world   to be certified as  5 star airline by Skytrax Ranked amongst Indias Top Service Brands of 2008 ranking by Pitch  magazine Voted as  Indias Favourite Airline in a survey conducted by an independent research firm with 46% votes compared to others Rated as Asia Pacifics Top Airline Brand in a survey conducted by TNS on Asia Pacifics 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 Indias No. 1 Airline in customer satisfaction Business World Rated amongst Indias most respected companies Business World Rated amongst Indias 25 Innovative Companies in a  survey conducted by Plan man Media in 2006 The Best Airline and Indias 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 Indias Most Successful Brand launch of 2005 Under the Brand Derby Survey conducted by Indias 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 Ps 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 dads friend who is working in kingfisher and I had an interview with him. I went through many magazines who wrote articles about kingfishers and Dr. Mallyas 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?