AVIATION

PRESENTER:IRIN PALLAVI(88)

CONTENTS
INTRODUCTION TO AVIATION WHERE WE ARE NOW? WHERE WE WANT TO BE?

HOW WILL WE GO THERE?

CONCLUSION
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INTRODUCTION TO AVIATION

Aviation industry in India started with its first commercial flight on February 18, 1911. With a growth rate of 18% per annum the Indian Aviation Industry is one of the fastest growing aviation industries in the world. Today private sector account for around 75% share of the domestic aviation market.

India is currently on 9th position in worlds aviation market. Passenger traffic is projected to grow at a rate of over 15 per cent in the next 5 years. The Vision 2020 statement announced by the Ministry of Civil Aviation, envisages creating infrastructure to handle 280 million passengers by 2020. Investment opportunities of US$ 110 billion envisaged up to 2020 with US$ 80 billion in new aircraft and US$ 30 billion in infrastructure Open sky policy

WHERE ARE WE NOW ?

(ANALYSIS)

EXISTING ORGANISATION
ABOUT Industry KINGFISHER Aviation

Parent group
Owner Founded Headquarter

UB group
Mr. Vijay Mallya 9th may,2005 UB city, Bengaluru

Bases

Bangalore's Bengaluru International airport, Mumbai's Chhatrapati Shivaji International Airport, Hyderabad's Rajiv Gandhi

ACHIEVEMENTS
Kingfisher has received global awards at the SKYTRAX worlds airline awards. Indias only 5STAR airline and 6th airline in the world. NDTV profit business leadership award for aviation

Factors affecting marketing strategy of company

Political Factors

Technological factors

Kingfisher

Economical factors

Social factors
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EXTERNAL FACTORS

MACRO
Government stability Taxation policy Foreign trade regulation Trade union power Labour employment rules Infrastructural constraint

POLITICAL FACTORS

ECONOMIC FACTORS

Money supply Investment levels Rising income level

SOCIO-CULTURAL FACTORS

Demographics Lifestyle Attitude Sound pollution

TECHNOLOGICAL FACTORS
Modernization of aircraft E-commerce and E- ticketing Industrial R and D expenditure Speed of technology transfer Product life cycle
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PORTERS FIVE FORCE MODEL

Threats from new entrants (Virgin Atlantic, Quantas Airways) Bargaining power of customers (Economic & demographic changes,

(Bargaining power of suppliers) Fuel supplier

Threats from competition (Jet Airwyays,Indian Airlines)

Increasing awareness, Exposure to global brand)

Threats fron substitution (Other modes of transport )

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MICRO
Rivalry Determinants

Industry growth Product differences Switching costs Brand identity Exit barriers

Potential Entrants

Capital requirements Government policy

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Substitution Threats

Relative price performance Switching costs Buyer propensity to substitute

Determinants of buyer power

Buyer concentration Buyer information Substitute products

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COMPETITION ANALYSIS
Jetlite 7.2%

Go air5.2%

Paramoun t airlines14%

Kingfisher airlines20.8%

Spice jet12.9%

Indigo 15.2%

Jet Airways 19.0%

Air India18.3%

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Kingfisher vs jet airways

It is one of the latest airlines in india Overall growth in year 200809 is 37% Acquired 46% share in air deccan It is the experienced airlines in india Overall growth in year 200809is 16% It acquired air sahara in 2006

It was awarded the best new airline of the year award

Already have training academy Personal in flight entertainment in every seat

Had won double honour travel trade gazette travel award

Planning to start training academy Average entertainment services

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STRENGTHS

SWOT ANALYSIS
WEAKNESS

Large fleets (over 400) and first Huge debts. airline to bring airbus to India. Quality service and adequate High overheads and huge workforce infrastructure. (The only 5star resulting in lower output. rating airline of India by skytrax). Air cargo service to metros and big High ticketing price cities(Deccan 360)

OPPORTUNITIES
The untapped domestic market. Growing international market. The expanding tourism industry. Increasing demand for air cargo service.

THREATS
Fuel price hike. New and strict laws in the aviation sector by government. Debt laden company. Competitors.

WHERE WE WANT TO BE? (OBJECTIVES)

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TOWS MATRIX
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STRENGHTS
Large fleets Quality service and adequate infrastructure. Air cargo service to metro and big cities

WEAKNESSES
High overheads and huge workforce High ticket pricing

OPPORTUNITIES
Untapped domestic market Increasing demand for air cargo

SO STRATEGIES
With the help of existing large fleets it may tap the domestic market Expansion of air cargo

WO STRATEGIES
It may capture the untapped domestic market with its over workforce

THREATS ST STRATEGIES Seat is empty revenue large fleets, adequate infrastructure and is gone forever. innovative package, it
New and strict laws of government may compete well

WT STRATEGIES
Emphasis on services.

STP
SEGMENTATION REGION INCOME LIFESTYLE ATTITUDE TOWARDS PRODUCT BENEFITS LOYALTY STATUS
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TARGETING Higher income group Upper middle class

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POSITIONING Lifestyle Benefit Quality

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ANSOFF MATRIX

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HOW WILL WE GET THERE? (STRATEGIES)

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7 PS ANALYSIS
Product:

Giving the feel of the product inside the service wrapper Consumers are demanding not the product or features of the products but the benefits they will be offered The airline product consist of two types of services: on the ground services in flight services
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Price:

Premium pricing: use a high price where there is a uniqueness about the product or service. Such price are charge for service. Cheap value pricing: this approach is used where external factors such as recession or increased competition force company to provide value products or services to retain sales

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Promotion:

Events & advertisements Multiple touch points & finer promotional Services working for the promotional activities. Frequent flyer programs are carried out.

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PLACE:

Services ranges from Ahmadabad to Agartala & to the major cities such as Delhi, Bangalore, & Chennai etc. The main strategy that kingfisher follows is to target the metro cities or the tier 1 cities in India On line 24 hr reservation system
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Physical evidence:

Exclusive lounge space Gourmet cuisine world class cabin crew 5 trendy video- Fun TV 10 music stations Kingfisher Radio .

PEOPLE:

Reliability Caring attitude goodwill

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Process Resevation Flight information Facilities at the airport Baggage handling Meal service Flight entertainment Deliver quality service

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BRANDING
Movie associations and in-film branding

Events

Cabin crew with Delhi CM at marathon OUTDOOR BRANDING

Events:women conference with Cherie Blair

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MARCOM STRATEGIES Medium Scope

Advertising Awareness , attitude

Direct marketing

Retention

Public relation

Credibility , reputation

CONCLUSION

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CONCLUSION

AIR Travel remains a large n growing industry. It facilitates economic growth, world trade, international investment n tourism n is therefore central to the globalization taking place in many other industries.

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Thank You
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Any Questions??

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