The times since the globalization has used an tremendous impact in the monetary environment today, the Gross National Product and employments opportunities have observed a domain move from manufacturing activities to service activities. The expansion of the service sector has immensely afflicted the tourism and hospitality section. The industry in various countries is a significant aspect of service powered economy. The expansion of the tourism activities has had great influences in global tourism and hospitality activities in the worried countries and markets. It has come into play with various new realities, difficulties and opportunities. Therefore, the organizations operating on the market would have to approach different markets with appropriate services and strategies
Kingfisher airlines is part of the UB group, several companies comprising of 60 companies in various industries. It started out providing its services in-may 2005 and from that day, it has never turned back. The Kingfisher airlines have grown immensely over practically 6 years of operation. There are many ways to analyze the marketing strategies that might be analyzed.
The following are the major attributes of the Airline:
(a)
Vision: "The Kingfisher Airlines family will constantly deliver a safe, value-based and interesting travel experience to all or any our guests. "
(b)
Safety: That is an overriding value. Within this line of business, there is no compromise.
(c)
Service: In hospitality business client satisfaction is vital and building trust, goodwill and loyalty of customers reaches prime focus.
(d)
Happiness: Kingfisher seeks to build an organisation with people who prefer to get happy, and can endeavour to influence their guests and co-workers to be happy too.
(e)
Teamwork: Kingfisher is convinced that "We will succeed or are unsuccessful as a team. Each one of us must respect our colleagues no matter their ranking, and we should work together to ensure our shared success"
SWOT ANALYSIS
A scrutiny of internal and external environmental factors has become an important marketing tool for the strategic planning process. Environment factors can be categorized as:
Internal factors: The factors that are inside to the company can be grouped under the term of strength(S) and weakness(W)
External factors: The factors that are exterior to the company could be classified under opportunities (O) and risks (T)
In short, this examination could be also known as SWOT ANALYSIS. This is an important research because of the reason that it offers the info in comparing the business functions and resources in relationship with its challengers. The diagram as explained below shows how the analysis matches into its environment:
SWOT Examination OF KINGFISHER
PESTLE ANALYSIS
PESTLE is:
P - Political
E - Economic
S- Sociological
T - Technological
L - Legal
E - Environmental
This analysis influences the "strategic decision making" process in group as the information provided from the approach would assist in guiding the decision making process. The major reason as to why this factor influences the organization framework is because of the reason why that various decisions are based on the micro and macro environmental factors that impact the working of the business. Micro environment implies those environmental factors which have limited effect on the organization and thus can be under the control of the organizations. Macro environment factors include those factors that are outside the restrictions of the organization's very control. An organization cannot affect the micro and macro surroundings but by getting the information, the organization could boost the opportunities and lessen the hazards that affect the business.
PESTLE analysis is continuing to grow to be an important tool for understanding the risks that are from the growth and drop of an company and for reviewing the position business of the company in the current market.
The various key elements that all of the 6 factors could include: -
Taken from: http://www. marketingminefield. co. uk/marketing-plan/pestle-analysis. html
FROM http://esfsourcebook. eu/index. php?id=1005
The various elements that influence Kingfisher Airlines in relation to PESTEL are:
MARKETING MIX
The services marketing, also called the extended marketing mix, is an integral part of the service design of an organisation
Taken from: http://endeavoreg. wordpress. com/2010/08/08/a-business-plan-is-not-a-luxury/
Product - In something industry, product is intangible in character. Travel, travel and leisure and hospitality industry is one of the principal samples for products. These sorts of products are diverse and perishable and therefore cannot be held and treated carefully.
Place - Place is a spot where the service could be provided at the best. That is a prime factor where the marketers determine various ways of implement to get the clients.
Promotion - Promotional activities is very important to the service providers to be able to supply the necessary atmosphere to supply the services along with the necessary training of personnel providing the intangible services. Your competition in the service sector is commonly immense and then the promotion plays a key role in the introduction of the service.
Pricing - Rates in case there is services is rather more difficult than in case there is products.
People - The clients generally tend to guage the company by the non-public service provided by the organisation to the clients. The frame of mind and behavior of the service personal provided.
Process - Process can be an important component of the marketing combine as the demand of the services would need to be fulfilled without losing the grade of services. The marketing of services and the delivery can meet up with the expectations of the customers.
Physical Evidence - In a service industry, the judgement of the service cannot be provided unless used.
PRODUCT
PRICE
Product variety
Product sizes
Product quality
Brand name
Packaging
Presentation
List price
Quantity discounts
Special offers
Geographical pricing
Payment terms
Credit options
PROMOTION
PLACE (Syndication)
Advertising
Public relations
Promotions
Channel section
Market coverage
Dealer support
SERVICE
PEOPLE
Pre deal services
Point of purchase services
After sales support
Staff requirements
Salaries and bonuses
Staff motivation
FROM: http://www. marketingminefield. co. uk/marketing-plan/mix. html
Marketing mixture of Kingfisher airlines:
Factors
Features
Product
Kingfisher provides unparallel services to features. The many differentiated products and services provided are:
Roving agencies: These realtors assist those people who have hand baggage's in order they don't have to hold back in queue
Different check in: There is a online check in option
In trip entertainment: There may be live TV as well as noted events for them to watch
Special care for unaccompanied minors and senior citizens
Place
There is large number of flights connectivity of flights joining to different locations.
Price
Kingfisher has been given the name of "first full frills - true value carrier". The kingfisher desires to provide the customers luxury, comfort and enjoyment.
Promotion
Their objective is create the brand that would go on in the minds of individuals through the use of the 360 level strategy. They have reached out through various communication stations as well as several brands. Kingfisher airlines have tied up with ICICI Bank or investment company for the mastercard which could be used for kingfisher kilometers as well as for various discounts. King club membership credit card enjoy several privileges.
People
The staff members of the airlines are known for the quality for service provided to the clients. The crew goes through energetic training programs. The airlines have create kingfisher flight academy to ensure strenuous training for the service oriented employees.
Process
Kingfisher helps easy scheduling of tickets for their customers through sites, real estate agents, and the customer care service with airports. Personalized valet service is also provided from check till the arrival when they are taken up to the right baggage belt.
Physical Evidence
All the aircrafts have creator interiors and well preserved aircrafts.
PORTER'S FIVE Make MODEL
Michael porter has provided five push models which would help a manger analyze the industry in which firm manages.
Diagram of Porter's 5 Forces
SUPPLIER POWER
Supplier concentration
Importance of volume level to supplier
Differentiation of inputs
Impact of inputs on cost or differentiation
Switching costs of firms in the industry
Presence of alternative inputs
Threat of forwards integration
Cost relative to total buys in industry
BARRIERS
TO ENTRY
Absolute cost advantages
Proprietary learning curve
Access to inputs
Government policy
Economies of scale
Capital requirements
Brand identity
Switching costs
Access to distribution
Expected retaliation
Proprietary products
THREAT OF
SUBSTITUTES
-Switching costs
-Buyer inclination to
substitute
-Price-performance
trade-off of substitutes
BUYER POWER
Bargaining leverage
Buyer volume
Buyer information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Buyer amount vs. industry
Substitutes available
Buyers' incentives
DEGREE OF RIVALRY
-Exit barriers
-Industry concentration
-Fixed costs/Value added
-Industry growth
-Intermittent overcapacity
-Product differences
-Switching costs
-Brand identity
-Diversity of rivals
-Corporate stakes
I. Rivalry
Competition on the list of rival companies is a significant driver to the business growth. Organizations have to watch out of the competitive edge among the list of rival firms. The strength of rivalry depends upon the sectors.
If the rivalry is low, the industry is considered as disciplined which varies according to the degree of competition in the past, role of leading company and the generally recognized code of conduct in the industry. Rivalry intensifies depending after the response of the rivalries. .
The power of rivalry is influenced by the next industry characteristics (http://www. quickmba. com/strategy/porter. shtml):
A larger amount of firms raises rivalry because more organizations must compete for the same customers and resources. The rivalry intensifies if the firms have similar market share, leading to challenging for market leadership.
Slow market progress causes firms to combat for market talk about. In an evergrowing market, firms have the ability to improve revenues simply as a result of widening market.
High fixed costs lead to an overall economy of scale result that raises rivalry. When total costs are largely fixed costs, the organization must produce near capacity to attain the lowest product costs. Because the organization must sell this large quantity of product, high levels of production lead to a attack for market talk about and ends in increased rivalry.
High safe-keeping costs or highly perishable products cause a producer to sell goods at the earliest opportunity. If other manufacturers are attempting to unload at exactly the same time, competition for customers intensifies.
Low switching costs increases rivalry. When a customer can widely switch in one product to another there's a greater battle to take customers.
Low degrees of product differentiation is associated with higher levels of rivalry. Brand identification, on the other hands, will constrain rivalry.
Strategic stakes are high when a firm is shedding market position or has potential for great profits. This intensifies rivalry.
High exit barriers place a high cost on abandoning the product. The organization must contend. High exit barriers cause a company to remain in an industry, even when the enterprise is not profitable.
A variety of competitors with different cultures, histories, and philosophies make an industry unstable. There is greater possibility for mavericks as well as for misjudging rival's moves. Rivalry is volatile and can be extreme.
Industry Shakeout. A growing market and the prospect of high earnings induces new organizations to enter a market and incumbent firms to increase production. A spot is reached where the industry becomes packed with opponents, and demand cannot support the new entrants and the ensuing increased supply. The industry may become congested if its expansion rate slows and the market becomes saturated, creating a situation of unnecessary capacity with too many goods chasing too few buyers. A shakeout ensues, with intense competition, price wars, and company failures.
II. RISK OF Substitutes
In the porter's five drive model, substitute products refer to products. The price elasticity of product depends upon the swap products. The closer the alternative constitutes the capability to raise prices.
III. Buyer Power
The ability of buyers also depends after the customers on the market. When the energy of the customer is strong, the relationship is near what folks define as monophony. Under such market conditions, the buyer sets the purchase price.
Buyers are Powerful if:
Buyers are focused - there are a few customers with significant market share
Buyers buy a significant percentage of end result - syndication of purchases or if the merchandise is standardized
Buyers own a credible backward integration threat - can threaten to buy producing firm or rival
Buyers are Weak if:
Producers threaten ahead integration - designer can take over own circulation/retailing
Significant buyer switching costs - products not standardized and buyer cannot easily turn to some other product
Buyers are fragmented (many, different) - no buyer has any particular influence on product or price
Producers source critical helpings of potential buyers' input - distribution of purchases
IV. Provider Power
A producing industry requires raw materials - labor, components, and other equipment. This requirement causes buyer-supplier relationships between the industry and the firms that provide it the raw materials used to make products. Suppliers, if powerful, can exert an affect on the producing industry, such as retailing raw materials at a price to capture a few of the industry's profits.
Suppliers are Powerful if:
Credible ahead integration danger by suppliers
Suppliers concentrated
Significant cost to change suppliers
Customers Powerful
Suppliers are Weak if:
Many competitive suppliers - product is standardized
Purchase item products
Credible backward integration danger by purchasers
Concentrated purchasers
Customers Weak
V. Obstacles to Entry / Risk of Entry
In theory, any organization should be able to enter and leave a market, and if free admittance and exit is out there, then gains always should be nominal. The truth is, however, industries have got characteristics that protect the high revenue levels of companies in the market and inhibit additional rivals from entering the market. These are obstacles to entry. Barriers to entry are unique industry characteristics define the industry. Barriers reduce the rate of entrance of new firms, thus maintaining an even of income for those already in the industry.
Easy to Go into if there is:
Common technology
Little brand franchise
Access to circulation channels
Low size threshold
Difficult to Type in if there is:
Patented or proprietary know-how
Difficulty in brand switching
Restricted distribution channels
High scale threshold
Easy to Leave if there are:
Salable assets
Low leave costs
Independent businesses
Difficult to Leave if there are:
Specialized assets
High leave costs
Interrelated businesses
Five force model
Features
Bargaining Electric power of Suppliers
Only 2 possible suppliers of planes - Boeing and Airbus
Switching costs in one provider to the other is high because all mechanics and pilots would have to be retrained.
Price of aviation petrol is straight related to the expense of oil
Regional Airports have little bargaining vitality as they are heavily dependant on one
airline
Bargaining Electric power of Customers
Customers are price sensitive
Switching to some other airline is not at all hard and is not related to high costs(Internet-all
airlines are online)
Customers find out about the price tag on providing the service
No loyalty
New Entrants
Some obstacles to entry:
High capital investment,
Restricted slot supply makes it more challenging to find appropriate airports.
Immediate price conflict if encroaching on existing LCC course.
Need for low cost base
Flight Authorisations
Threat of Substitutes
No brand loyalty of customers No 'close customer relationship'
No switching charges for the customer
Other modes of transport,
Competitive Rivalry
-The LCC market is highly competitive
Most cost advantages can be copied immediately
Low degrees of existing rivalry as both major low-cost airlines have averted direct face to face competition by choosing different routes to serve
Not much differentiation between services. Price is the main differentiating factor
Kingfisher Airlines Marketing HR Financial Strategies
Some of the major strategies that Kingfisher Airlines had followed are:
It came up with the Tag type of Fly with the good times and it offers reflected after with the knowledge wanted to its travellers.
The airlines have immense charm with the LCC section.
It decided to re-launch commercial air service of UB airways but was withdrawn due to federal restrictions
The company provides world class interiors along with entertainment within the airline flight to be able to provide appropriate customer support.
The company developed only one class airlines to incorporate the top features of business as well as current economic climate class. This helped to enhance the leg spacing for the clients.
The passengers are believed as the friends for the company who could discover bigger leg room and bigger seats with better comfort.
Kingfisher Airlines is determined to become one of the largest airlines in terms of not only the capacity but also the market share.
KFA's Promotional Strategies
With the tagline of "the new flying experience", kingfisher has used various initiatives for its promotional strategies which include: -
The advert hoardings at airports point out various "funlines" which concentrate on the youthful mother nature of the airlines along with the fun stuffed and top notch image of the airlines.
Kingfisher Airlines sponsors various movies for their promotional activities.
KFA encourages their brand through sponsoring various fashion shows, super star golf complements and New Season functions along with submitting their own every month newspaper called "Pegasus" that involves posting information about the Kingfisher Airlines along with the products and services of other UB group
The Kingfisher airlines launched various offers including the King card in colaboration with ICICI bank that was helped bring forward to create devoted customers for the kingfisher airlines. The many privileges that may be accessed through the greeting card includes lounges, restaurants, free refreshments at international airports, usage of 180 golf clubs across India, special invites for lifestyle shows. They even started out "King saver offer" which mentioned "Fly just like a King, don't play like one".
Kingfisher airlines targeted the business enterprise travelers by offering Ruler saver booklet which comprised six free airfare tickets and was offered as a free gift Travellers could avail off this offer if indeed they showed there Jet Privilege Member (Gold or Platinum) credit card.
Financial strategies:
Kingfisher airlines had caused various financial strategies which acquired eventually helped the business to gain a rise in the market show. The financial strategies that kingfisher experienced decided to generate are:
It purchased completely new A320 aircrafts powered by the cockpit that was a paperless environment.
In June 2005 Kingfisher Airlines prepared to order US$5 bn at the Paris Air Show, for 5 new A350-800 aircraft, and five A330-200 plane.
Kingfisher Airlines was first Indian carrier to place an order for A380s.
It placed an order for 30 A 320 and 20 ATR72-500 airplane at the Dubai Air Show. This ATR72-500 was worthwhile US$750.
To further its enlargement plan Kingfisher Airlines devote its bid to buy Sahara in November 2005. How ever before negotiation emerged to a standstill when Kingfisher Airlines sensed the valuation of Sahara Airlines of around US$750mn to US$1 bn. was too much.
Kingfisher Airlines has programs to make a short Community Offer (IPO) and raise around US$200 mn that would be used because of its fleet acquisition and route development activities.
Human Tool Strategies
Prior to release, Kingfisher Airlines signed a "non-poaching alliance" with Air Deccan under which both the airlines agreed not to work with each other's worker. KFA's trip attendants called "Traveling models" were determined through a countrywide level model competition.
Kingfisher Airlines also stressed the actual fact that its employees had to be in a position enough to meet up with the airlines' high service requirements.
CONCLUSION
To conclude, Kingfisher airline should prioritize on bridging its 'points-of-parity' before enhancing its points of variations. It must improve its performance on key variables like punctuality & air fares and should not introduce items of dissimilarities which increase the air travel of Kingfisher Red. Kingfisher Airlines should consider applying a promotional plan in mass media which educates people about Kingfisher & Kingfisher Red. While Kingfisher can continue with flashy ads featuring models depicting exuberance and lifestyle, Kingfisher Red ads can become more subtle focusing on safety, comfort & experience. The idea is amalgamate the two ends of the spectrum, to keep the consolidated identify of Kingfisher, while clearly spelling out to customers the variations between its premium and budget classes.
