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Kingfisher Airlines
Consumer BehaviorAnalysis
:-Gaurav R Arora
:-Bhakti Roychowdhury:-Arihant Jain
(GPBL III)
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Table of Contents
Preface
3
Company background......................................................................................................4
Market Share..................................................................................................................5
Decision Making Process...............................................................................................6-9
Factors Influencing Purchase behaviour..........................................................................10-12
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Preface:
Understanding the consumer behaviour is important for a brand as it helps to connect withtheir customers. Consumer behaviour entails understanding the entire chain of activities rightfrom how the purchasing process is affected to how a brand motivates its consumers. Thishelps to set the brand personality and therefore how the brand is perceived by the customers.
Aviation remains a large and growing industry. It facilitates economic growth, world trade,international investment and tourism and is therefore central to the globalization taking placein many other industries and we attempt to study the industry in detail in our assignmentthrough Kingfisher Airlines.Kingfisher Airlines is one of the leading private players in the Indian aviation industry.
Incorporated in 1995 as Deccan Aviation, the company is engaged in the business ofproviding passenger services.
By studying Kingfisher as a brand, we are trying to analyze how Kingfisher is perceived bythe consumers. Through its marketing efforts, Kingfisher is trying to favourably affect theconsumers evaluation of the brand. Our study will help to understand the brand personalityof Kingfisher as perceived by the consumers and how the marketing efforts are affecting thebrand. Through our market research effort we have attempted to bring out the various aspectsof the decision making process and assess the marketing implications attached to it.
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Company Background
Kingfisher Airlines is a private airline based in Bangalore, India. The airline isowned by Vijay Mallya of United Beverages Group. Kingfisher Airlines startedits operations on May 9, 2005 with a fleet of 4 Airbus A320 aircrafts. Theairline currently operates on domestic routes. The destinations covered byKingfisher Airlines are Bangalore, Mumbai, Delhi, Goa, Chennai, Hyderabad,Ahmadabad, Cochin, Guwahati, Kolkata, Pune, Agartala, Dibrugarh,Mangalore and Jaipur.
In a short span of time Kingfisher Airline has carved a niche for itself. The
airline offers several unique services to its customers. These include:personal valet at the airport to assist in baggage handling and boarding,accompanied with refreshments and music at the airport, audio and videoon-demand, with extra-wide personalized screens in the aircraft and three-course gourmet cuisine.
Kingfisher Airlines currently operates with a brand new fleet of 8 Airbus A320aircraft, 3 Airbus A319-100 aircraft and 4 ATR-72 aircraft. It was the firstairline in India to operate with all new aircrafts. Kingfisher Airlines is also thefirst Indian airline to order the Airbus A380. UB holdings Ltd, has acquired26% stake in the budget airline Air Deccan and has option to buy further of
20% stake from the secondary market.A look at the market reveals that the major players in the Indian aviationsector market are Kingfisher Airlines, Jet Airways, Air India, and Deccanamongst others.
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http://en.wikipedia.org/w/index.php?title=UB_holdings_Ltd&action=edithttp://en.wikipedia.org/wiki/Air_Deccanhttp://en.wikipedia.org/w/index.php?title=UB_holdings_Ltd&action=edithttp://en.wikipedia.org/wiki/Air_Deccan -
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Market Share (2010)
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Decision Making Process
Customers form one of the most important and crucial aspects that a
company has to manage and focus so as to reach their business objective.
For an effective implementation, it is very important for the company to
understand the consumer buying process.
There are six stages that consumers have to undergo to make a purchase
decision but all consumer decisions do not always include all six stages,
determined by the degree of complexity.
Based on our research on kingfisher airlines. Following are the six steps ofconsumer buying process:-
i) Problem Recognition (awareness of need)
ii) Information search
Iii) Evaluation of alternative
IV) Purchase decision
v) Purchase
vi) Post-Purchase Evaluation
i) Problem Recognition: - (awareness of need):- This step basically refers
to difference between desired state and the actual state of a consumer.
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Problem recognition is generation of a thought process by consumer about
the desired need and a thought to achieve it.
For kingfisher airlines, customers undergo with the thought process for
travel which will stimulate the need to go by a respective means. If the
consumer needs to travel and is restricted to
Time
Energy
Accuracy
Punctuality
Kingfisher will be a perfect match for this profile of consumers.
ii) Information search: - In this step the consumer does an analysis of the
desired need , so as to fulfill it the way he/she would like. The consumers will
search and collect all the possible information that will be needed so as to
satisfy his/her need and also to go one step further to transform his /her
actual state to desired state. Consumer will now think about
Means of travel
Schedule Personal plan
Maps and respected information.
Travel class
Advertisements
iii) Evaluation of alternative:-
This is one of the most important step in which consumer will
search for a various different alternative which satisfies his /herprofile and respective needs. As per our research on kingfisher
airlines ,following will be the alternative that might confuse our
consumer to take decisions:-
Jet airways
Kingfisher airlines
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Country airlines( Singapore airlines, American airlines,etc)
iv) Purchase decision:-In this step the consumer will make a final decision of purchase and
will decide the specific alternative which will satisfy his /her needs and
wants. The consumer decides his/her alternative on the basis on
following parameters:-
Time,
Energy,
Finance,
Mode of payment,
Method of purchase,
Store,
Packaging,
Value added services,
Accuracy,
Etc.
As far as our example goes the consumer will make an attempt to decide the
final airline, lets take Kingfisher. In this the consumer will go with his chosen
option (kingfisher) which satisfies his profile on the basis of the parameters
discussed above.
V) P urchase:-
In this step the consumer finally makes purchase. I.e. he/she goes with
his/her chosen option and make a purchase about product and services they
want.
For kingfisher the consumer will finally make payments and get his/her
tickets done for the desired location. In this step the consumer decides to
choose the kingfisher airlines for his/her journey because of:-
Trust and loyalty
Influence by viral marketing
Etc.
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vi)Post-Purchase Evolution:-
This is the most important step of consumer buying process. This step helps
the most, to retain customers, based on after sales services and the product
or services experience gained by the consumer. If the consumer likes the
services or product, he/ she will again make an attempt to buy the
respective products again. This step is generally based on two parameters :-
Satisfaction
Dissatisfaction
As we continue our example the consumer will travel by his/her
chosen option. While travelling the consumer will notice the
quality of services and comfort level which he will obtain. On the
basis of that the consumer will evaluate and generate idea and
opinion about kingfisher. If the services provided by kingfisherand also after journey response satisfies the consumer, he will
blindly go for kingfisher again.
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Factors That Influence Consumer Purchase Behavior forKingfisher Airlines
P ERSONAL FACTORS
Lifecycle Stage :-
Lifestyle is a mode of living that is identified by
activities How a person spends time and resources
interests What a person considers important in the environment
opinions what a person thinks of self and the world
According to our research there is no age consideration as such. But generally kingfisher isknown for business travelers aged 25+ and a person more concentrated on self status.
Occupation :- Business Man, Service, Student. Economic Situational :- Urban upper middle class.
P H SYCOLOGICAL FACTOR
Motivational :- Brand image, Word of mouth publicity, Attractive Cabin Crew
Perception :-The process by which the individual use information to create a meaningfulpicture by selecting,organinsing and interpreting.People perceive Kingfisher providesefficient and timely service with value for money
SOCIAL FACTORS
Personal Influence :-
Aspects of personalinfluence importantto marketing
Opinion leaders
People who like to take risk in terms of trying new
airways, every time they travel can be a opinionleader for Kingfisher Airways
Word of mouth
Power of word of mouth has been magnified bythe Internet and e-mail through positive feedbackabout Kingfisher Airlines on site such asmouthshut.com
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Reference Groups ;- Reference groups are people to whom an individual looks as a basisfor self-appraisal or as a source of personal standards. Reference groups have animportant influence on the purchase of high end airline like Kingfisher.
Three groups have clearmarketing implications
Membershipgroup
one to which a person actually belongs
Aspirationgroup
one with which a person wishes to beidentified.
Dissociativegroup
one from which a person wants to maintain adistance because of differences in values orbehaviors
Family Influence :-Family members can strongly influence the buyer behavior.Kingfisher is interested in roles and influence of both spouse and children for the use oftheir services.
CULTURAL FACTORS
Culture :- Progressive bent of mind and modern outlook Social Class: - Engineers, Doctors, Businessmans and Business Professional.
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Personifying Kingfisher Airlines
(Users and Non Users)
One of the most important aspects of a person in the services arena is the level of
grooming and present ability This sets the perception and first impression among
customers who will be availing of the services. This is where Kingfisher scores the
maximum points The advertisements emphasizing the fact that Kingfisher is the
most high-end domestic carrier have all been winners. Users of the airline relate to
the fact that the airline is perceived to be a carrier for high-end travelers and for
travelers who have arrived in life. It exudes an air of luxury with the sophisticated
cabins, in-flight entertainment systems and great quality food. This has been
further enhanced by featuring models like Yana Gupta in different advertisements
and through the flamboyant nature of the owner Vijay Mallya himself.
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However one rarely likes a person who is only about grooming and lacks depth and
quality. A true winner in todays world is one who is highly presentable, polished
but also has the depth of knowledge and qualities in his or her chosen area ofexpertise. This is where Kingfisher comes up trumps. Any concern about the airline
being all fizz is quickly dispelled as one enters and gets seated in one of the
comfortable reclining seats. The service is marvelous the entertainment system,
food and service by the cabin crew are of the highest quality. For Users of the flight
it is easily comparable to a Roger Federer Polished, handsome and the best in his
field of work and all this with a steady head on his shoulders with a down to the
earth attitude.
For non-users of this brand the airline is like a person with very high tastes and
hence a high maintenance cost. People relate it to someone who is too good to be
true with the tradeoff being the extra expense that needs to be incurred in orderto ensure that the high standards can be maintained. The extra cost is precisely
what is recovered from the passengers by putting an extra premium on the ticket
fares. Hence, this category of travelers would rather go in for a no frills airlines
akin to a person who is probably not the best or the smartest but has enough to get
the job done and comes at a lower price. After all if a team can win a cricket match
with Suresh Raina then there is no need to hire Sachin Tendulkar
How Kingfisher Airlines exerts a pull on customers
Kingfisher Airlines is not be a run-of-the mill Indian budget airline.
Kingfisher Airlines will be emphasizing on spunky, well-done interiors and trained
airhostesses.
Borrowing from the Kingfisher beer tagline of "The King of Good Times" the theme
of "Fly the Good Times" is given to KFA.
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Kingfisher is planning to capture the Indian budget airline market with the twin
engines of 'special flying experience' and 'value for money'. (Contests like
`Kingfisher flying face of the month' are on cards).
The Kingfisher airhostesses will be selected through a nationwide contest.
The Kingfisher "Fun liners" will have in-flight silent auctions for lifestyle products
and sales of packaged food and beverages.
The Kingfisher brand of exuberant, youthful and fast-paced image is leveraged (the
brand recall).
Brand endorsement. Kingfisher Airline has roped in model Katrina Kaif to endorse
the airline.
Analysis of Data (60respondent)
Motivation to travel by Kingfisher
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Meeting Customer Aspirations
According to our research, the Marketing Division of Kingfisher Airlines has adequatelyunderstood the target audience because they excel in providing world class services asmentioned below for the target elite set.
On time flight services Entertainment Comfort & Cozy interiors Myriad exclusive deals Value added services Well trained staff Key player in luxury line airbus Updated Aircrafts (A320,A380,A350) Value based safe and enjoyable travel experience
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Recommendations
The success of Kingfisher Airlines branding strategy has led to a change in
the competition's marketing strategies, as well. Many of Kingfishers
competitors are now consolidating their brand. And, therefore, it puts value-
for-money above all. The following recommendations have been put forth by
us based on our extensive research and feedback provided by the
respondents.
Kingfisher airlines can think about lowering the prices of their tickets
even though their target market is the elite class.
Increase advertising expensewill help brand Kingfisher gain further
market space and strengthen brand recall
Can rope in celebrities for endorsements like Milind Soman / Ranbir
kapoor who are youth icons of today representing the upper cool,
swish set.
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Can improve their child care and entertainment services by providing
games like Play station etc for kids.
Can introduce schemes like free tickets for Frequent Fliers
Kingfisher Airlines can introduce Late bird / Night bird flights between
metros
Kingfisher Airlines should schedule more number of flights to and from
station like Delhi, Mumbai, Chennai, Collate, Bangalore as these
sectors account for high payload
Kingfisher Airlines needs to undertake aggressive Marketingcampaigns.
Kingfisher Airlines should undertake customers satisfaction surveys
regularly
Kingfisher Airlines should make provisions to add up more financial
benefits for its passengers
New approaches should be identified and rewarded so that it serves as example for others
Bibliography
The Brand that Stands Apart
http://www.articlebase.com (Accessed on 27th July 2010)
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Ensuring Travelers enjoy the Good Times, interview with Mr. Girish
Shah(former head marketing Kingfisher Airline ltd)
http://www.articlebase.com (Accessed on 27th
July 2010)
Strategies of Kingfisher Airlines, 12th April 2010
http://www.strategies/kingfisher.htm (Accessed on 27th July 2010)
http://Airline /Consumer purchase decision process.htm
(Accessed on 28th July 2010)
http://market share/Airline.htm
Consumer Behavior, fourth edition, Tata Mc Graw-Hill, David l.Loudon& Albert
J.
Questionnaire
Consumer Behavior Research on Kingfisher Airlines
Profile:
Name: _________________________________________
Age: 15-25 25-30 30 40 40 & above
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Gender: Male Female
Profession: Business Service Student Other
1. Kingfisher primarily is -
FMCG
Beverage manufacturer
Airlines
None of these
No idea
1. Where have you seen Kingfisher Advertisement?
Newspaper ads TV/Radio Ads
Hoardings
Posters & Banners
Internet
Other Pls. specify __________________
1. Kingfisher as a Brand stands for
Modern Youth Brand
VAS (Value Added Service)
Total Service Consistency
Low Tariff
Connectivity
1. Have you travelled by Kingfisher Airlines?
Yes
No
If yes then why?
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Service efficiency
Fare structure
On time efficiency Ease of online booking
All of these
If no, then why?
1. What influences your decision to travel by Kingfisher Airlines?
Image of the brand Fare structure
Word of mouth publicity
Social Status
All of these
1. Whom do you relate Kingfisher Airlines to?
Business travelers
Celebrities Youth
Foreign Travelers
Budget Travelers
7. Rate the importance of following factors on 5 Point Scale whilerating Kingfisher
S.
No.
Items Too
Bad
Bad
(2)
Ok
(3)
Good
(4)
Very
Good
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(1) (5)
1. Appearance, Attitude &
uniform of employees
2. In-flight modern & clean
facilities
3. Quality & variety of in-flight
food
4. Efficiency in the check-in
process
5. On-time performance of
airlines
6. Proper information to
customers in advance in
case of flight delays & re-
scheduling
7. Prompt attention to
customers personal needs
8. Sincerity & friendly attitude
by the employees
9. Safety standards are
maintained & emphasized
10. Safety standards are
maintained during flights by
the crew
11. Employees are courteous &
helpful
12. Proper ground facilities are
maintained
13. Numerous ticketing
mediums are available to
the customers
14. Enough information is
available about Kingfisher
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prior to purchase
15. In-flight facilities e.g.
blankets, pillows etc. are inproper condition
S.
No.
Items Very
Unsure
(1)
Unsu
re
(2)
Neutr
al
(3)
Sur
e
(4)
Very
Sure
(5)
16. It is most likely that I
would choose Kingfisher if
I liked its advertisement.
17. I will definitely choose
Kingfisher over other
brands
8. Would you recommend Kingfisher airlines as a brand to others?
Yes No Not Sure
Please provide the reason for above, in case your answer is No.
______________________________________________________________
9. Any other feedback you would like to share about Kingfisher.
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Thank you for your cooperation!
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