1. AIRLINES
INDUSTRY
KINGFISHER AIRLINES

2. GROUP MEMBERS

3. FLOW OF PRESENTATION
 Overview of the Airlines Industry
 PEST Analysis of the Airlines Industry
 Introduction to Kingfisher Airlines
 7 P’s
 Industry Lifecycle
 SWOT Analysis on Kingfisher Airlines
 Porters 5 Force Analysis for Kingfisher Airlines
 Competitor Analysis
 Recommendations using Ansoff Model
 Conclusion
 References

4. AIRLINES INDUSTRY
Aviation Industry in India is one of the fastest
growing industries in the world
Origin of Indian civil aviation industry
India occupies an eminent position in the civil
aviation sector with a large fleet of aircrafts
Estimates show that the domestic and
international passenger traffic in India is growing
tremendously

5. PEST ANALYSIS – AIRLINE
INDUSTRY
 Political Factors
- India’s political
environment – Tension
with Pakistan,
Government’s inability to
control issues (riots etc)
- September 11th- huge drop
in air traffic due to safety
and security concerns
- Trade relations with other
countries have to be good.
 Economic Factors
- Recession- airlines are
considered as a luxury
- High operation costs due
to low demand
- Resulted in laying off
employees

6. PEST ANALYSIS – AIRLINE
INDUSTRY
 Social Factors
- People from varied
income groups have to
be catered
- Destination, kinds of
food served have to be
chosen carefully
Technological Factors
- Use of Internet- online
ticket booking,
updated flight
information &
handling of customer
complaints.
- Restructuring the
existing airports to
world class appeal

7. KINGFISHER
AIRLINES
 Kingfisher Airlines is a wholly owned subsidiary of United
Breweries Holdings Limited
 Kingfisher Airlines Limited is an airline company based in
Bangalore, India
 This airline was introduced in the market to target the domestic
luxury segment
 Kingfisher Airlines was introduced into the Indian airline market by
the Indian Business Tycoon Dr Vijay Mallya
 Kingfisher is one of only six airlines in the world to have a five-star
rating from Skytrax

8. P’S
 PRODUCT
 PRICE
 PLACE
 PROMOTION
 PEOPLE
 PROCESS
 PHYSICAL EVIDENCE

9. PRODUCT

10. In-Flight entertainment

11. PRICE
Based on
 Class of travel
 Load factors
 Date of travel
 Day of travel
 Profit margins
 Competitors pricing

12. PLACE
 “Vijay Mallya” himself is a brand and the brand “Kingfisher” has
also established a remarkable standing in the market place
 Kingfisher has a wide distribution channel that gives easy access
to it’s customers
 Tickets can be booked through various channels
 Consolidation
 Tour Operator/ Travel Agency (Clear trip, make my trip.com
 Affiliated with companies
 Direct through home leased system
 Kingfisher has a plush corporate office
in Andheri, well equipped with trained
employees & has a spread of offices
across India

13. PROMOTION:
ADVERTISEMENTS &
PUBLICITY
Hoardings Brand Ambassador Kingfisher Calender
 Dmm
NDTV Good Times Tagline Media & Press Releases
Releases

14. SALES PROMOTION
PERSONAL SELLING
Travel Agencies Front line staff Kingfisher Red
Offers King Club 5 Star Privileges

15. PEOPLE
 At Kingfisher Airlines, ‘people’ are the most important ‘p’
 People provide most services that is the selection, training, and motivation of
employees
 The airhostesses at Kingfisher come in contact with the customers in the process
of providing the service, while the cock-pit crew are employees who contribute to
the service product but do not come in direct contact with the customers.
 Dr. Mallya handpicks the air hostesses for his Airlines as they is expected to
possess a pleasing personality with polite service handling
 Whereas the cock pit crew at Kingfisher Airlines require to possess high analytical
and technical skills
 Also at Kingfisher, there is the ancillary service personnel, the travel agent who
plays a very important role in creating the service exchange but is not a part of the
service.
 At Kingfisher Airlines, the front line staff play a critical role in ensuring that the
service is delivered to the customers as promised

16.  This ensures some amount of reliability, and this in turn affects the degree of
responsiveness sought from customers.
 The quality of service that the front-lone staff of Kingfisher Airlines provides
is highly dependent on his/her ability to communicate their credibility
 The front line staff need to possess ‘empathy’ which implies that these
personnel listen, adapt and be flexible in delivering what individual
customers need
 Some of the employees at Kingfisher Airlines are sent on a 21 day training
programme to the US and Frankfurt which motivates them to stay on with
Kingfisher.
 They are also provided with offers such as one-month bonus or some
incentives, on the achievement of the sales targets.

17. PROCESS
 The process of Kingfisher airlines’ service lays emphasis on the
involvement of channels, front line staff, travel agency offices, offices of the
tour operators or so form where the services flow & reach to the ultimate
users.
 The process begins at the time of reservation goes on to the
confirmation of seats. For e.g.: Computer reservation system of
Kingfisher Airlines enables any reservation request from anywhere in the
world to be auctioned in minutes. The reservation facility is accessible
through all-major computerized reservation system of the world.
 By giving details of where to book and how to book Kingfisher airlines
help in providing quality services to the customers.
 They also offer concession, by not charging any cancellation charges and also
giving them the option to make a change in the reservation status if they
request.
 All these facilities go a long way in increasing passenger convenience.

18.  Facilities at the airport, the baggage handling, flight information, etc. also
helps in delivering quality service and making travel a pleasure.
 In the aircraft, the meal service, in-flight entertainment, reading material, in-flight
amenities, etc. enable the travelers to have an enjoyable and convenient
travel.
 All these procedures form a part of the total process designed to
deliver quality service at Kingfisher Airlines.
 Kingfisher Airlines is making every effort to constantly redefine service
procedures to enhance service satisfaction levels.

19. FLOWER OF SERVICES- KINGFISHER
AIRLINES
Hospitality
&
Caretaking
Consultation
Information
Safekeeping
Order
Taking
TRANSPORT
Billing &
Payment Exceptions

20. BLUE PRINTING
 Blue printing is a technique which is used to portray an existing
service situation and provides a useful tool to assess and
identify service evidence opportunities.
 The process of service delivery, the role of customers and
employees and the visible elements of the service are
simultaneously displayed by the service map.
 Blue print provides 2 additional features to add to the
management information.
1. provides greater attention to customer interaction;
2. Provides a visual representation of the structure of the
service.

21. BLUE PRINT OF KINGFISHER
AIRLINES

22. PHYSICAL EVIDENCE
 Physical Evidence refers to the environment in which the service is
delivered and where the service industry and customer interact.
 At Kingfisher Airlines, the aircraft by itself, the seating configuration which is
meant to be comfortable and spacious, and the in-flight food provided would
make up the physical evidence in this service.
 Boeing & Airbus are the 2 best commercial aircraft makers and almost all
airline industries make use of one of these airlines. The seating is such
that it is comfortable and there is enough leg space.
 The in-flight food is another, important aspect, a wide selection of meals is
offered to the passengers. Passengers are requested to indicate
their reference at the time of reservation itself. Kingfisher Airlines has
introduced new sleeper seats with electric controls for reclining lumbar
support, leg rest extension, expanded seat back height for a more
insulated environment, thus providing highly comfortable seating.

23.  Booking offices and ticket counters at Kingfisher Airlines are extremely
spacious and well designed with good looks. Further the aircrafts are given
excellent exteriors and are maintained well.
 The aircrafts at Kingfisher Airlines have elegant interiors well designed seats
with more leg room especially in the business class.
 Domestic lounges are enhanced with good interiors
and basic amenities which make it an ideal place to conduct business,
entertain or relax.

24. KINGFISHER- INDUSTRIAL LIFE
CYCLE
 Indian aviation industry growth rate=24%
 Kingfisher airlines growth rate=37%

25. KINGFISHER AIRLINES- SWOT
ANALYSIS
 Strengths
- Operating in a niche market:
domestic luxury segment
- “Kingfisher” itself is a well
established brand
- The customer service provided
is extremely exceptional for a
domestic airline
- Highly trained and attractive
staff.
 Weakness
- Unable to generate expected
returns on the investments
- overspending of funds
- Loads are lesser than that of its
competitor Jet Airways

26. KINGFISHER AIRLINES- SWOT
ANALYSIS
 Opportunities
- Aviation industry is a
growing industry
- Large number of
domestic untapped
routes
- Growth in the
disposable income
 Threats
- Fierce competition
- Major rise in fuel
prices
- Cost cutting is become
a prime need in the
aviation industry

27. PORTER’S 5 FORCE ANALYSIS FOR
KINGFISHER AIRLINES

28. COMPETITOR ANALYSIS
Attributes KINGFISHER JET
AIRWAYS
SPICE JET
Price 25% higher than Jet
Airways and Indian
Lower than
Kingfisher Airlines
Extremely low
Permission to
fly to US
No Yes NA
Permission to
fly to UK
Yes Yes NA
IPO Floated Floated Not Yet
Targeted
Both ends of
Both ends of
Customers
customers
customers
Lower end of
customers
Positioning Premium Domestic
Segment
Premium Domestic
and International
Segment
Lowest fares and no
frills

29. RECOMMENDATIONS BY STUDYING
ANSOFF FOR KINGFISHER
AIRLINES

30. RECOMMENDATIONS BY STUDYING
ANSOFF FOR KINGFISHER
AIRLINES
 Market Penetration
 Try to look for foreign
entrant’s weakness such
as Virgin Atlantic which
lacks in Indian values &
tastes.
 Product Development
 Seek additional
distribution channels
such as more tie ups &
collaboration
 collaboration with
international carriers,
bilateral discussions
over seats and code-sharing
between the
carriers.

31. RECOMMENDATIONS BY STUDYING
ANSOFF FOR KINGFISHER
AIRLINES
 Market
Development
 Special offering for
first time fliers
 Try to find out new
customer group such
as Old-retired
persons.
 Diversification
 May go for other
services like
international flights
(concentric
diversification)
 May get into
organising fashion
shows etc (horizontal
diversification)

32. CONCLUSION
 The ROI is low for kingfisher airlines.
(ROI = Profit / Capital Employed)
 Being a private carrier it has potential to improve on
its margins with effective cost reduction policies.
 The strategy of Vijay Mallya is that he uses
Kingfisher Airlines to popularize his beer “Kingfisher”
thus helping him to leverage his brand name to a win-win
situation in both his businesses .

33. REFERENCES
 Aviation Week & Space Technology
 Low-fare Airlines,. Economist.com.
 Crisis at 50, Business World,
 Businessline,
 The Sky’s The Limit, Indian Express
 Oil Prices drown out Airlines profit,
Star Tribune,
 A Feel for Airline Security. Time
Canada,
 To Cope With Travel Slump, Airlines
Turn to Smaller Jets. (cover story) Wall
Street Journal - Eastern Edition, the
free content encyclopedia
 India Transportation Infrastructure
Blueprint
 Wikipedia, the free content
encyclopedia
 http://www.google.com
 www.quickmba.com/strategy/ansoff/
 www.quickmba.com/entre/definition
 www.thehindubusinessline.com/2007/06/01
/stories/2007060106400100.htm
 www.how-to-make-more-money.com/Vijay-
Mallya_biography.html
 www.gaebler.com/entrepreneur-characteristics.
htm)
 www.prenhall.com/scarbzim/html/smallbus
.
 www.marketingteacher.com/Lessons/lesson_
bowman.htm
 www.ficci.com/media-room/speeches-presentations/
2007/feb/air-con/session3

34. THANK
YOU