International Trends in Marketing Management - Case Study Example

Kingfisher Airlines Company Analysis Student’s Name Abstract The Indian aviation industry has an annual growth rate of 18 per cent (Shrimali, 2012, p.6). This makes it one of the world’s fastest growing aviation industries. Estimates reveal that in India, both the domestic and international passenger traffic is growing immensely. The impact of the aviation industry to a wide population of the global market has captured interest from all around the world contributing greatly to making the industry become one of the most triumphant industries in the world (Shrimali, 2012, p. 6). The following is a comprehensive report analysis of India’s Kingfisher Airlines. This report analyses Kingfisher Airlines’ service delivery using each of the 7P’s. The report concludes by suggesting recommendations and actions that can be undertaken in order to improve the Airlines’ service delivery. Table of Contents Table of Contents 3 KINGFISHER AIRLINES COMPANY ANALYSIS Introduction Kingfisher Airlines Company Overview Kingfisher Airlines is the largest airline in India. It is based in UB City, Bangalore, with its head office being in Andheri, Mumbai. Its parent company is United Breweries Group and which has a stake of 50 per cent in the other low cost carrier, Kingfisher Red, which was formerly known as Air Deccan. It was established in 2003 but it started its commercial operations in May 9 2005 after the dry lease of four new A320-200 Airbus aircrafts. According to Dr. Mallya, the ambition of Kingfisher Airlines was to make the airline the largest private airline in India in both market share and capacity by the year 2010. Kingfisher Airlines has fully redefined the manner in which Indian air travelers perceive flying. The airline has positioned itself as part of Aviation Hospitality. It has achieved this by mainly focusing on service and quality. Kingfisher Airlines offers services by ferrying both cargo and people to a network of over 77 destinations by operating over 400 flights a day. It also has regional and long haul international services. Kingfisher Airlines is also one of the six airlines in the world that have a five star rating. The 5-Star status identifies an airline with the highest standards across several quality assessment categories as well as the one that very high standards of services in airport and onboard environments. The following are the main bases of Kingfisher Airlines; Bengaluru International Airport In Bangalore Chhatrapati Shivaji International Airport in Mumbai Rajiv Gandhi International Airport in Hyderabad Indra Gandhi International Airport 9in Delhi The first flight ferried passengers from Mumbai to Delhi. Kingfisher airlines began its international operations on September 3 2008 where it connected Bengaluru with London (Ministry of Tourism, 2012, p. 20). In the month of May, 2009, Kingfisher Airlines was given the largest market share among the other Indian airlines after successfully carrying more than one million passengers. Kingfisher Airline serves up to 25 domestic destinations within India as of April 10 2012. However, the airline suspended all its international operations as from April 10 2012. The final international flight was between Delhi and London. All the international routes are now operated using the A320 Airbus family, ATR 42s and the ATR 72 aircraft. In September 2008, Kingfisher Airlines launched its first long haul destination. This was to London, United Kingdom. After deliveries of new aircrafts, the airline plan to initiate other long haul flights to other cities in continents such as Africa, Europe, Asia, Oceania and North America. ANALYSIS The 7P’s of service marketing This section will introduce and explain the 7P’s of service delivery before critically analyzing them in accordance to Kingfisher Airlines. According to Moorthi, (2002), the following are the 7P’s of service marketing (p. 259). 1. Product This refers to the company’s core offering. It is the product or service that fulfills the customer’s needs. Services are heterogeneous, intangible and perishable. Their production and consumption are also inseparable. 2. Price This is the sum of money that the customers are prepared to pay for the product. 3. Process The service delivery process assumes crucial importance as it ensures that the customers are repeatedly delivered with services of the same quality. 4. Place The location of the service product usually assumes crucial importance. This is service delivery is usually concurrent with its production and thus, it cannot be transported nor stored. 5. Physical Evidence This also affects the satisfaction of the customer. It plays a part especially when the services are intangible and the customer depends on other cues in order to correctly judge the offering (Moorthi, 2002, p. 262). 6. Promotion It comes in handy where a service been offered can be replicated or when there are various service providers with offerings that are almost identical. Promotion is crucial in such events as it helps in differentiating a service offering in the customer’s mind. 7. People They are a defining factor in the process of service delivery. In order to ensure success in the process of service delivery, many organizations have made staff customer service training a top priority (Moorthi, 2002, p. 271). ANALYZING KINGFISHER AIRLINES USING THE 7P’S 1. PRODUCT Over the past few years, Kingfisher Airlines has managed to offer unparalleled services to its customers. The novel services it has introduced has greatly attributed to its success over such a short period of time. The Airline offers both international and domestic air transport services. The domestic flights connect up to 74 destinations while there are 3 international destinations in 3 different countries across Europe and Asia. There are also various cabin classes in both the domestic and international flights designed to suit the needs of the customer as discussed below. Cabin classes Domestic flights It is made up of the Kingfisher first, Kingfisher Class and the Kingfisher Red classes. The domestic Kingfisher First is made up of seats with a seat pitch of 48 Inches and a 126 degrees seat recline (Collet, 2011, p.23). In this class, the passengers are also provided with the latest magazines and newspapers as well as mobile phone and laptop chargers on each seat. Every seat Audio and Video on Demand (AVOD) systems that broadcasts 16 live TV channels and 10 Kingfisher Radio channels as well as a wide range of Bollywood and Hollywood movies, English and Hindi TV programs. All passengers are also given noise cancelling headphones. The Domestic Kingfisher Class has a 32 - 34 inch seat pitch. The seats are also equipped with AVOD systems as in the Kingfisher First. Passengers are also provided with ear cup earphones. Passengers in this class are served with food as well as bottled lemonade before the plane takes off (Collet, 2011, p.23). Kingfisher Red is Kingfisher Airline’s low cost class on domestic routes. Passengers are only provided with a magazine as the only reading material. The following are other distinctive features of Kingfisher Airlines Presence of roving agents who assist customers with hand baggage instead of letting them stand in the queue at the check. The airline provides various check-in options allowing the customers to check in even from the company’s website. Providing special care for unaccompanied children, people with reduced mobility and special citizens. In-flight entertainment. Every seat is suited with live TV as well as AVOD systems with recorded entertainment radio channels (Price, 2007, p.1). Presence of a frequent flyer program called the King Club where members earn King Miles each time they fly with Kingfisher Airlines. The members can then redeem the points for a number of schemes. Presence of the Kingfisher Lounges located in certain airports and is offered to Kingfisher First passengers as well as King Club Gold and King Club Silver members. 2. PRICE Kingfisher Airline bases its flight prices according to the following factors; i. Class of travel ii. Load Factors iii. Day of travel iv. Date of travel v. Competitors pricing vi. Profit margins (Pradeep & Aspal, 2011, 63). The airline has been referred to as a ‘true value carrier’. It has a target audience that is very well defined. This is mostly the youth and the high lifestyle people. This is the Sec A and the Sec B+ audience of the Indian economy and is made up of people within the 25 to 45 age bracket with very high disposable income. People in this age group are modern and trendy and looking for a vast flying experience. They are also looking for the best value for their money, an expectation that the airline lives up to successfully. The airline therefore targets this group of people as they are willing to pay for the luxury services offered by Kingfisher Airlines. 3. PROCESS Kingfisher Airline undertakes various measures in order to ensure the customers experience full satisfaction. The following are some of the processes that add up to the satisfaction of the customers (Pradeep & Aspal, 2011, 59). i. The airline has facilitated easy and convenient booking of tickets. Kingfisher Airline has created various avenues from which the customers can book the tickets from. Nowadays, customers can book the tickets by calling the airline’s customer care office (tele-booking), logging on to the airline’s website or from the airport or the various designated travel agents. ii. The customers are provided with a personalized valet service at all the airports around India. The valet service staff is responsible for assisting passengers from the time they arrive at the airport until they check in as well as upon arrival at their destination. The valet staff also directs the passengers towards the right baggage belt and also assists them with the baggage upon arrival at the destination (Pradeep & Aspal, 2011, 61). iii. Kingfish Airlines tries to ensure that passengers take the shortest time possible to retrieve their baggage once they disembark from the aircraft. iv. The airline also offers concession whereby the customers are not charged any cancellation charges and are also given an option of making a change in their reservation status upon request. v. The in flight entertainment, meal service, reading material and the in flight amenities are all aimed at ensuring that the customers have an enjoyable and convenient flight (Price, 2007, 2). In a nutshell, all these measures are undertaken by the airline to form part of the total process designed to ensure and deliver quality service at the airline. The airline is also making every effort possible in order to constantly the service procedures so as to enhance the levels of service satisfaction. 4. PLACE Over the past few years since its establishment, Kingfisher Airlines has recognized itself as a brand with a remarkable standing in the market place. Kingfisher Airlines has a lavish corporate office located in Andheri. The office is well equipped and has well trained employees. The corporate office also has a wide spread of offices across the country. The airline operates to 38 travel destinations across India as well as connectivity to the tier 2 cities of the country (Ministry of Tourism, 2012, p. 20). The 38 destinations are spread over a wide geographical region of the country and they help connect all the metro and the major cities of the country. The wide distribution of channels gives easy access to the customers. Kingfisher Airlines operates about 218 flights daily across the 38 travel destinations. The frequency of the flights between the four metros and the major cities like Bangalore, Hyderabad, Pune and Ahmedabad accounts for the high numbers of daily take offs. The airline also gives the customers a wide variety of ways from which they can book flight tickets. The customers may choose to book at the airport, through the various travel agents, by calling the airlines 24/7 customer care or by logging on to the airline’s website. All this measures and services are aimed at ensuring that the customers have easy access to the airline. 5. PHYSICAL EVIDENCE This refers to the physical environment where the service is delivered as well as where the company and the customers interact. Kingfisher Airlines has undertaken several measures in order to ensure that customers have a comfortable time while at the airport and also in the aircraft during the flight. Inside the aircraft, the seating arrangement is spacious and comfortable with enough leg space. In-flight food that is also provided and it is also an important aspect that makes up part of the physical evidence in the airlines service. There is a wide variety of food that is offered to the customers. They are required to indicate their reference during the reservation time. The highly comfortable seating has been greatly enhanced by the presence of the sleeper seats that come with electric controls for reclining the various sections of the seat in order to make the customers as comfortable as possible (Collet, 2011, p.23). At Kingfisher Airlines, the ticket counters and the booking offices are well designed and extremely spacious. The aircrafts have also been given excellent and modern interiors exteriors plus they are also maintained well. The domestic lounges at the various airports are also enhanced with good interiors as well as basic amenities. This makes them an ideal place to relax, conduct business or entertain. The lounges are well maintained for the purpose of cleanliness and offering the customers with a pleasant experience. 6. PROMOTION Kingfisher Airlines has adopted a couple of measures in order to reach out to their customers (Clarity Marketing Ltd, 2005, p. 3). The main objective of this measures is to create send a message effectively to the customers and also to guarantee that the customers create a place in mind for the brand. A 360 degree promotion strategy has been introduced in order to reach out to the customers through all the media of communication like radio, television, flight magazines, outdoor and multiplexes. This strategy ensures that the airline reaches out and communicates with the customers at numerous touch points. The Kingfisher Airlines’ loyalty and frequent flyer program, The King Club, which allows members to earn King Miles every time they use the airline. The airline has introduced a co-branded credit card in association with ICIC bank that allows members to earn discounts, privileges among a number of other benefits. Members enjoy the discounts and privileges for each membership level reached from the time they reserve their travel till the time when they arrive at their last destination. The customers are rewarded according to the number of times that they fly with the airline. 7. PEOPLE At Kingfisher Airlines, the ‘people’ are the most important ‘P’ among the other 7P’s. It is the people at the airline who provide most of the services. The high quality levels of staff service provided to the customers is one of the winning factors for Kingfisher Airlines. The employees at the airline deliver high quality standards of service in an efficient, sincere and charming way making the airline stand out from the rest. At the airline, the air hostesses interact with the customers directly when providing services to them. There is also the cock pit crew that provides services to the customers without interacting directly. In order to ensure that the airline has the best air hostesses available, Dr. Mallya handpicks the air hostesses personally in order to ensure that they posses pleasing personality traits and polite service handling. The cock pit crew at the airlines is expected to have exemplary analytical and technical skills. Upon employment, the airline usually sends some of its employees on a 21 day training camp in the United States and Frankfurt. The training is meant to ensure that the employees earn all the virtues needed in effective service delivery. In addition to that, the Airline has instituted the Kingfisher Training Academy that caters for the demand of trained professionals. At the academy, the employees are provided with intensive training on various fields of Airline Orientation such as Airline rules and regulations, Cabin Familiarization among others. The rigorous training programs ensure that the crew is highly skilled and ready to deliver services to customers efficiently (Mahajan & Rau, 2009, p. 69). The front line staff at the airline also play a critical part in the process of ensuring that service is conveyed the customers as expected. The front line staff are also expected to posses empathy. This ensures that they are able to listen, adapt and also be flexible in offering services to each individual customer in the way the customers need. Employees at the airline are also provided with offers such as incentives and bonuses upon achievement of sales targets. This motivates the employees to stay on with the airline. Recommendations based on 4 of the 7p’s of services Although Kingfisher Airlines has been developed in a modern way that fully suits the expectation of the customers, there are various measures and necessities that the airline lacks. This section discusses some of the features and measures that should be undertaken in order to improve the services. The recommendations are based on 4 of the 7p’s discussed earlier. These 4P’s are Physical Environment, Place, Price and People. These 4P’s are discussed individually below. 1. Physical Environment As discussed earlier, it is clear to see that Kingfisher Airlines has put in place all the possible measures in order to ensure that its physical environment fully satisfies the expectations of the customer. The airline has equipped its aircraft with state of the art seats, posh interiors and exteriors, modern entertainment facilities among others in an attempt to meet the demands of its customers as well as to stand out from its competition. However, the airline has neglected facilities that are required by the elderly and disabled people. This is because the airline has set its target market as the young people between the ages of 25 to 40 years of age. By doing this, the airline has left out the sick, elderly and other people with reduced mobility in the society. This may make them feel discriminated and hence prevent them from using the airline again. To solve this problem, the airline should set aside certain seats in the aircraft that suit the needs of this group of people. In the airport, the airline should create paths that facilitate movement of people with wheelchairs instead of having them use the stairs which may be inconvenient. The airline should also create enough parking spots for the disabled persons. 2. People Kingfisher Airlines is equipped with employees with very high quality levels of customer service (Mahajan & Rau, 2009, p. 73). These employees are able to offer assistance and service effectively to the airlines’ millions of customers. However, the airline lacks employees specially trained to handle and offer services to elderly persons as well as persons with disabled mobility. The airline should employ special employees to take care of this group of people. These employees should offer the following services; Assist these customers reach the check in point and also help them with registration at the check in. Help them get in and off the plane Help with retrieving and stowing baggage on the plane. Assist them in moving through the airport. Help the passengers move to the toilets inside the plane. 3. Place Kingfisher Airlines has domestic flights that connect up to 74 destinations while there are 3 international destinations in 3 different countries across Europe and Asia (Ministry of Tourism, 2012, p. 24). However, the airline lacks connectivity to cities in other continents such as Africa. This comes as a disadvantage to the airlines’ loyal customers flying to these continents and who do not wish to using any other airline. This way, the airline may end up losing some of these customers to other airlines. The airline can overcome this problem by introducing additional flights to international destinations. This can be through purchase of extra aircrafts or through developing partnerships with other airlines. Such arrangements will extend the flight connections as well as improve the flight schedules. These partnerships will also improve the position of the airline in the global market. 4. Price Kingfisher Airlines has put all measures in place to ensure that the customers have the best value for their money while in the airline. The aircrafts are fitted with modern equipment and facilities. The cost of setting up these facilities is then passed on to the customers through the price of the tickets. Some low class customers find it hard to afford the flight tickets hence they feel discriminated by the airline. The airline can solve this issue by creating flights with reduced flight charges and little entertainment features since most people the low class would not mind if some of this features are not provided. CONCLUSION Established in 2003, Kingfisher Airlines has grown to be one of the most triumphant airlines in the world. It is among the six airlines in the world that have a 5 star ranking. This implies that the airline has very high standards of services in the airport and onboard environments. Despite facing some financial crisis in the past few years, it has still held on to its share of the market and provided its customers with top class services staying ahead of its competitors. Analyzing the airline using the 7P’s shows that it has successfully met almost all the requirements required in efficient marketing and service delivery. However, there are several changes as discussed in this report in order to ensure that the airline satisfies the needs of the customers fully by making improvements in some sections of the 7P’s. References Clarity Marketing Ltd (2005). The Marketing Mix. 7P's of marketing mix, 1(1), 1-5. Collet, N. (2011). Business Traveler (Asia-Pacific Edition). Kingfisher Airlines Economy, 1(1), 23-23. (Collet, 2011, p.23) Mahajan, V. C., & Rau, S. S. (2009). International Journal on Information Sciences and Computing. An empirical study on service quality perceptions of domestic airline consumers in India, 3(2), 69-74. Ministry of Tourism (2012). India Tourism Report. Market Overview – Travel, 1(1), 18-26. Moorthi, Y. L. (2002). An approach to branding services. Journal of Services Marketing, 16(3), 259-274. Pradeep, K., & Aspal, J. (2011). Short Communication. Break Down Of Marketing P’s: “A New Evolution”, 1(1), 59-63. Price, C. E. (2007). In the media. In-flight Entertainment Goes High-Tech, 1(1), 1-3. Shrimali, C. S. (2012). International Journal of Trends in Marketing Management. Marketing of services in the Indian aviation Industry, 1(6), 6-12. Read More